Close Menu
Fund Focus News
    Facebook X (Twitter) Instagram
    Trending
    • Mexican government unveils $540M industrial hub to lure investments
    • ‘People Might Be Underestimating Demand For Spot XRP ETFs,’ ETF Expert Says As CME XRP Futures Set Open Interest Record
    • SoftBank, Rakuten tap Japan’s booming retail demand for bonds
    • Financial advice about living trusts, capital gains and COBRA
    • What is Expense Ratio in Mutual Funds? – Money Insights News
    • Billionaires Buy 2 Magnificent Index Funds That a Wall Street Analyst Says Could Soar 132%
    • not the FTSE 100 or S&P 500)
    • Five tell-tale signs that investing money is not for you
    Facebook X (Twitter) Instagram
    Fund Focus News
    • Home
    • Bonds
    • ETFs
    • Funds
    • Investments
    • Mutual Funds
    • Property Investments
    • SIP
    Fund Focus News
    Home»ETFs»‘Protected’ Bitcoin ETFs Hitting the Market—Here’s What That Means
    ETFs

    ‘Protected’ Bitcoin ETFs Hitting the Market—Here’s What That Means

    January 21, 2025


    Bitcoin’s price has been a roller coaster ride for investors for 15 years, but a new batch of Bitcoin ETFs will seek to replace the asset’s stomach-churning free falls with relatively modest declines—or none at all.

    Calamos’ first “Protected Bitcoin ETF” will hit the market Wednesday, offering investors 100% downside protection against Bitcoin’s price with limited upside potential.

    From retail investors to financial advisors, Bitcoin’s risk profile has deterred a notable number of market participants who may be wary of Bitcoin’s steep drawdowns despite its growing adoption, Calamos Head of ETFs Matt Kaufman told Decrypt.

    “Calamos has built Bitcoin exposure with a safety net, and you can choose how low that safety net goes,” he said. “Bitcoin is a historically extremely volatile asset, and so a lot of people have been on the sidelines watching this experiment turn into an institutional reality.”

    Calamos’ ETFs will be listed on the Cboe, with its 100% Protected Bitcoin ETF set to debut at a price of $25 Wednesday. The product’s so-called cap range, expected to be anywhere between 10% to 11.5%, will be struck at the end of the day. From that point on, the ETF will aim to offer 100% downside protection against Bitcoin’s price, with a cap range struck again next year.

    Spot Bitcoin ETFs debuted in the U.S. last year, notching $36.2 billion worth of net inflows as investors and traders flocked to products from Wall Street giants like Fidelity and BlackRock. Since then, Bitcoin’s price has climbed 133% from $46,000 to nearly $107,000, yet some analysts say that registered investment advisors and wirehouses are still warming up to such products.

    Among institutional investors, 48% of those surveyed in 2023 said that digital assets’ price volatility was a considerable obstacle from an investment standpoint—citing that factor more than anything else, according to a Fidelity Digital Assets report. Meanwhile, 22% of respondents pointed to self-custody concerns, which spot ETFs largely availed.

    In two weeks, Calamos—which was founded in 1977—will launch additional ETFs with 80% and 90% downside protection against Bitcoin. Those products will have an estimated cap range of 28% to 31% and 50% to 55%, respectively.

    The products’ risk management framework will be achieved through a combination of U.S. Treasuries and flex options on the CBOE Bitcoin US ETF Index, according to Calamos’ website. Flex options are essentially customizable exchange-listed options, which can have a one-year outcome period, as opposed to expiring on the final Friday of each month, Kaufman said.

    Calamos, which has $40 billion in assets under management, launched similar products covering the S&P 500 and Nasdaq-100 last year.

    Though the products could find use among a professional investment crowd, Kaufman posited that the products could also cater to investors beyond the typical age of your typical crypto bro.

    “The adoption for Bitcoin has been on the individual or retail level, and it’s largely been people younger than myself,” the 45-year-old Kaufman said. “We haven’t seen too much of the adoption curve from those older investors, largely because of the risk tolerance that they just can’t take.”

    Edited by Andrew Hayward

    Daily Debrief Newsletter

    Start every day with the top news stories right now, plus original features, a podcast, videos and more.



    Source link

    Share. Facebook Twitter Pinterest LinkedIn Tumblr Telegram Email

    Related Posts

    ‘People Might Be Underestimating Demand For Spot XRP ETFs,’ ETF Expert Says As CME XRP Futures Set Open Interest Record

    August 31, 2025

    not the FTSE 100 or S&P 500)

    August 30, 2025

    Ethereum ETFs Close Out August With $164 Million In Outflows

    August 30, 2025
    Leave A Reply Cancel Reply

    Top Posts

    A beginner’s guide to buying an investment property

    February 17, 2025

    The Shifting Landscape of Art Investment and the Rise of Accessibility: The London Art Exchange

    September 11, 2023

    The Unyielding Resilience of the Art Market: A Historical and Contemporary Perspective

    November 19, 2023

    The Evolution of Art and Art Investments: A Historical Perspective on Fruitful Returns and Wealth Management

    August 21, 2023
    Don't Miss
    Investments

    Mexican government unveils $540M industrial hub to lure investments

    August 31, 2025

    Borderlands Mexico is a weekly rundown of developments in the world of United States-Mexico cross-border…

    ‘People Might Be Underestimating Demand For Spot XRP ETFs,’ ETF Expert Says As CME XRP Futures Set Open Interest Record

    August 31, 2025

    SoftBank, Rakuten tap Japan’s booming retail demand for bonds

    August 31, 2025

    Financial advice about living trusts, capital gains and COBRA

    August 31, 2025
    Stay In Touch
    • Facebook
    • Twitter
    • Pinterest
    • Instagram
    • YouTube
    • Vimeo
    EDITOR'S PICK

    Pourquoi les kangourous sautent-ils ? De scientifiques ont peut-être trouvé une piste

    March 20, 2025

    Bitmine Buys $300M ETH in 3 Days, ETFs Continue to Shine

    August 4, 2025

    Falling rates and growing confidence in US economy drive a bond revival

    October 12, 2024
    Our Picks

    Mexican government unveils $540M industrial hub to lure investments

    August 31, 2025

    ‘People Might Be Underestimating Demand For Spot XRP ETFs,’ ETF Expert Says As CME XRP Futures Set Open Interest Record

    August 31, 2025

    SoftBank, Rakuten tap Japan’s booming retail demand for bonds

    August 31, 2025
    Most Popular

    🔥Juve target Chukwuemeka, Inter raise funds, Elmas bid in play 🤑

    August 20, 2025

    ₹10,000 monthly SIP in this debt mutual fund has grown to over ₹70 lakh in 23 years

    June 13, 2025

    ₹1 lakh investment in these 2 ELSS mutual funds at launch would have grown to over ₹5 lakh. Check details

    April 25, 2025
    © 2025 Fund Focus News
    • Get In Touch
    • Privacy Policy
    • Terms and Conditions

    Type above and press Enter to search. Press Esc to cancel.