- Calamos will launch a 100% downside-protected Bitcoin ETF named CBOJ in January.
- The ETF blends U.S. Treasury bonds and Bitcoin-linked options to reduce investment risk.
- CBOJ features annual resets of protection and caps on upside potential as part of its risk-management design.
Calamos Investments is preparing to introduce an innovative exchange-traded fund (ETF) for Bitcoin that promises full protection against losses.
The new ETF, called CBOJ, is scheduled to debut on January 22 on the Cboe Options Exchange (CBOE). It is structured to address Bitcoin’s volatility while still offering upside participation, according to the company’s announcement.
Calamos structured-protection ETF series
CBOJ builds on the success of Calamos’ structured-protection ETF series launched in 2024. Those earlier funds provided similar downside protection mechanisms for equity indexes such as the S&P 500 and the Nasdaq-100.
By adapting this framework for Bitcoin, Calamos aims to meet demand from advisors, institutions and individual investors who want exposure to Bitcoin’s growth potential without shouldering its historically high swings. Bitcoin’s price history has often discouraged risk-averse investors due to its pronounced volatility.
The CBOJ ETF is designed to confront that challenge by ensuring investors do not lose principal even if Bitcoin’s market value declines.
The fund achieves downside protection through a combination of U.S. Treasury securities and options tied to the Cboe Bitcoin US ETF index. This mix creates a regulated, transparent pathway to Bitcoin exposure while reducing the risks typically associated with direct cryptocurrency ownership.
Annual protection reset for CBOJ
A distinctive element of the CBOJ structure is its annual protection reset. Each year the fund establishes a new protection period and a new capped level for potential gains, while maintaining full downside protection for the following 12 months. This approach provides ongoing risk mitigation and aligns with the dynamic nature of the Bitcoin market.
“Many investors have hesitated to allocate to Bitcoin because of its extreme volatility,” said Matt Kaufman, head of ETFs at Calamos.
“Calamos aims to serve advisors, institutions and investors looking for solutions that capture Bitcoin’s upside while mitigating the asset’s historically large drawdowns and volatility.”
ETFs are investment vehicles traded on exchanges like individual stocks, allowing investors to pool capital into a fund that holds a portfolio of assets. Through CBOJ, investors gain indirect exposure to Bitcoin without needing to buy or custody the cryptocurrency themselves.
This protective structure could make the ETF especially appealing to cautious investors who want to participate in the crypto market while avoiding direct exposure to wild price swings. As derivative-based Bitcoin ETFs gain traction, industry observers expect more firms may adopt similar approaches to serve risk-sensitive client segments.
Calamos’ CBOJ represents a novel attempt to balance downside protection with participation in a high-growth yet volatile asset class, offering a potential bridge for investors who have previously avoided Bitcoin due to its risk profile.