cnbc.com
Calamos Launches Bitcoin ETF with 100% Downside Protection
Calamos Investments will launch a structured protection Bitcoin ETF (CBOJ) on January 22, 2025, offering 100% downside protection over a 12-month period, combining options exposure with Treasury holdings to mitigate bitcoin's volatility and attract risk-averse investors.
- What is the key innovation of Calamos's new Bitcoin ETF, and how does it address current market challenges?
- Calamos Investments will launch a structured protection ETF (CBOJ) in January 2025, offering 100% downside protection for bitcoin investments over a 12-month period. This fund combines options exposure on the Cboe Bitcoin U.S. ETF Index with Treasury holdings, aiming to attract investors wary of bitcoin's volatility.
- How does the success of 2024's spot Bitcoin ETFs relate to the development of structured products like the CBOJ?
- The CBOJ ETF represents a significant development in crypto investing, mirroring successful equity ETF strategies. Its launch follows the highly successful debut of spot bitcoin ETFs in early 2024, which attracted tens of billions of dollars in investment. This new approach seeks to address financial advisors' concerns about bitcoin's volatility.
- What are the potential risks and limitations of the CBOJ ETF, considering the volatility of Bitcoin and the relatively nascent options market?
- Calamos's strategy anticipates further growth in crypto-related ETFs, particularly given the incoming administration's expected pro-crypto stance. The firm plans additional funds with 90% and 80% downside protection, adapting to bitcoin's unique volatility profile. The success of CBOJ will likely influence future product development in this sector.
Cognitive Concepts
Framing Bias
The framing is largely positive, emphasizing the innovative aspect of combining bitcoin with structured protection. The headline and introduction highlight the success of bitcoin ETFs and the potential for this new product to attract financial advisors. While mentioning some challenges, the overall tone leans towards promoting the fund's potential rather than providing a balanced assessment of its risks and limitations.
Language Bias
The language used is generally neutral, although phrases like "a hit with investors" and "booming" could be considered slightly positive. The description of bitcoin's volatility as a "smile" is a subjective interpretation that might be considered loaded, but this seems to be to make a technical point rather than a subjective one. Overall, the language is relatively unbiased.
Bias by Omission
The article focuses heavily on the Calamos ETF and its launch, giving less attention to other firms' similar initiatives. While it mentions Innovator and First Trust, and alludes to Grayscale and Roundhill, a more comprehensive overview of the broader market trends and competing products would provide a more complete picture. The article's omission of potential downsides or risks beyond those explicitly mentioned in relation to early selling of the Calamos fund could also be considered a bias by omission.
False Dichotomy
The article presents a somewhat simplistic view of investor choices, implying that the Calamos fund offers a solution to the problem of bitcoin's volatility. It doesn't fully explore the various risk profiles and investment goals that could lead investors to choose different approaches. While acknowledging that investors might use the fund alongside pure-play ETFs, it doesn't explore the full spectrum of alternatives.
Sustainable Development Goals
By making crypto investments more accessible to a wider range of investors through structured products like the Calamos ETF, the potential for increased financial inclusion and wealth distribution is created. This aligns with the SDG target of reducing inequalities in income and wealth.