Calamos Announces Upside Cap Rates with Defined Downside Protection for Bitcoin Protection ETFs
News Summary
Calamos Investments has launched three new Bitcoin Structured Alt Protection ETFs: the Calamos Bitcoin Structured Alt Protection ETF® – October (CBOO), Calamos Bitcoin 90 Series Structured Alt Protection ETF® – October (CBXO), and Calamos Bitcoin 80 Series Structured Alt Protection ETF® – October (CBTO). These ETFs aim to provide Bitcoin exposure with defined downside protection over a one-year outcome period. The CBOO offers 100% downside protection with an initial cap rate of 8.47%; the CBXO provides 90% downside protection with an initial cap rate of 23.43%; and the CBTO offers 80% downside protection with an initial cap rate of 41.62%. These funds do not invest directly in Bitcoin, but rather in options referencing the price performance of underlying ETPs or Bitcoin indexes. They have an annual expense ratio of 0.69%. The ETFs reset annually, offering a new upside cap and refreshed protection, and can provide tax-deferred gains if held long-term.
Background
Calamos Investments is a leading alternatives manager with over $45 billion in assets under management, including more than $20 billion in liquid alternatives assets. The firm offers diversified investment strategies, encompassing alternatives, multi-asset, convertible, fixed income, private credit, equity, and sustainable equity. Structured Protection ETFs are part of Calamos' product suite, designed to offer investors capital-protected growth strategies with monthly entry points to leading US equity benchmarks and Bitcoin exposure. These products represent a way for traditional finance to bridge into the digital asset space, catering to investors who seek participation in Bitcoin's potential upside while maintaining defined risk parameters.
In-Depth AI Insights
What are the strategic implications of these Bitcoin protection ETFs for Calamos and the broader crypto market? - Calamos' move is designed to appeal to traditional finance investors who are wary of Bitcoin's direct volatility. By offering defined downside protection, it lowers the barrier to entry, potentially attracting more institutional and conservative retail capital into the asset class. - This signifies a further