A major exchange-traded fund provider is trying to take the volatility out of bitcoin investing.
Calamos Investments launched the Calamos Bitcoin Structured Alt Protection ETF (CBOJ) on Wednesday. The firm brands it as “the world’s first downside protected bitcoin ETF.” It is built with risk-adverse investors in mind.
“You can get in all day long. Get that 100% protection. And then at the end of the day, we’re going to strike the cap,” the firm’s ETF head Matt Kaufman told CNBC’s “ETF Edge” this week.” Bitcoin is a volatile asset … we don’t want the price of bitcoin to move on you overnight.”
The firm launched the new bitcoin ETF on Wednesday. It coincides with a winning month for bitcoin. The cryptocurrency is up 10% as of late Thursday afternoon.
According to a Calamos press release, the fund provides access to bitcoin in a risk-controlled environment.
“Many investors have been hesitant to invest in bitcoin due to its epic volatility,” Kaufman said in the release. “Calamos seeks to meet advisor, institutional and investor demands for solutions that capture bitcoin’s growth potential while mitigating the historically high volatility and drawdowns of this fast-growing and high performing asset.”
Calamos has more crypto funds on deck. It is set to launch Calamos Bitcoin 90 Series Structured Alt Protection ETF (CBXJ) and Calamos Bitcoin 80 Series Structured Alt Protection ETF (CBTJ) on Feb. 4, according to the Calamos website.
‘You’re not going to see meme coin ETFs from Calamos’
Despite the firm’s appetite to offer cryptocurrency funds, Kaufman told “ETF Edge” there is one group Calamos will not consider.
“You’re not going to see meme coin ETFs from Calamos. But the ability to access bitcoin in a way that meets your risk tolerance, that’s what we’re about,” Kaufman said.