Chris Curl,
Editor
Jan. 16, 2025
The upcoming Trump administration, expected to be much more crypto-friendly, has sparked optimism around regulatory approvals for various ETF products. Beyond Bitcoin, the industry anticipates an influx of innovative ETF filings, such as Bitwise’s 10 Crypto Index ETF (BITW), which tracks a portfolio of leading cryptocurrencies including Ethereum, XRP, and Solana.
BlackRock's Bitcoin ETF, IBIT, has achieved a remarkable milestone by securing the third spot in the 2024 global ETF rankings with $37 billion in capital inflows. Who could have predicted such a success story?
This accomplishment highlights a growing investor interest in digital assets and positions BlackRock alongside market leaders such as Vanguard's S&P 500 ETF (VOO) and iShares Core S&P 500 ETF (IVV), which took the first and second spots respectively.
Despite being launched in January 2024, IBIT's rapid success illustrates the increasing popularity of cryptocurrency ETFs in the financial market. Overall, the ETF market experienced a record-breaking year, with $1.14 trillion in total inflows, a 25% increase from previous years, signaling strong confidence in both traditional and digital asset investment vehicles.
100% Downside Protection Bitcoin ETF Lands On SEC’s Desk
Amidst all this growth Calamos Investments has introduced a groundbreaking ETF concept that could redefine Bitcoin’s risk management framework. This new Bitcoin ETF, known as the Calamos Bitcoin Structured Alt Protection ETF (CBOJ), aims to provide investors with 100% downside protection. Filed with the US Securities and Exchange Commission (SEC), the product stands out as the first of its kind in the cryptocurrency investment landscape.
The CBOJ offering seeks to hedge Bitcoin's inherent volatility by protecting investors from negative price movement during its specified outcome period. Scheduled to launch on January 22, 2025, the ETF simultaneously tracks Bitcoin’s upside gains within a predetermined cap, ensuring a risk-balanced opportunity for market participants. This outcome period begins after the market closes on the launch date and extends through January 31, 2026.
To achieve its unique structure, the fund utilizes a combination of U.S. Treasuries and options tied to the CBOE Bitcoin US ETF Index. The ETF will reset annually, granting investors a newly calculated upside cap while refreshing its downside protection for the next 12 months. Importantly, shareholders can retain their CBOJ positions indefinitely, making it a flexible option for long-term investors.
CBOJ is managed by Eli Pars, leveraging earlier success with the Calamos Structured Protection ETF series, which debuted in 2024. Investors will incur a management fee of 0.69%, aligning it competitively within the crypto ETF market. Details surrounding the initial upside cap and operational strategies will be disclosed closer to its formal launch.
Calamos’ bold move with CBOJ illustrates the growing investor demand for safety amid crypto volatility. By offering downside protection alongside participation in Bitcoin, products like CBOJ are paving the way for a seamless fusion of digital assets and traditional finance.
As the regulatory and market landscapes shift under the incoming administration, these developments mark the dawn of a more versatile and investor-friendly crypto ecosystem.
Click here to profit from crypto in the months ahead.
Keep coming back,
Chris Curl
Editor, Daily Profit Cycle