Calamos Investments, an investment firm with over $40 billion in assets under management, has filed for a Bitcoin ETF in the U.S., aimed at cautious crypto investors seeking safer exposure to digital assets.
Filing for New ETF
Calamos Investments has filed for an exchange-traded fund (ETF) based on Bitcoin, targeting investors looking for a safer investment in digital assets. This new product adds to a growing list of attempts by asset managers to package Bitcoin exposure with built-in protection against volatility.
Loss Protection Strategy
The new ETF aims to invest in options contracts linked to the performance of five existing Bitcoin ETFs. According to Calamos, the fund will target protecting against losses greater than 20%. "If, for example, the floor is 20% and the price of Bitcoin declines by 8% over a target outcome period, an investor would not receive protection since the decline was not more than 20%," the document states.
Overview of Other Bitcoin ETFs
Bitcoin ETFs generally offer exposure to the largest cryptocurrency by backing the funds with actual Bitcoin. As of January 2024, Bitcoin ETF launches have gained a cumulative net inflow of $53.1 billion. Total net assets in these funds have reached $150 billion.
Calamos's filing for a new Bitcoin ETF may complement the existing market for such funds, providing investors with additional risk mitigation measures related to the high volatility of Bitcoin.
