#United States #Chicago #Calamos Investments #Structured Protection #Bitcoin ETFs

Calamos Investments Launches Groundbreaking Bitcoin ETFs with Downside Protection

Calamos Investments, a leader in alternative investments, is preparing to expand its innovative Bitcoin ETF suite with the launch of three new funds on April 7, 2025. This latest series of Principal Protected Bitcoin ETFs promises to provide investors with upside growth potential while ensuring varying levels of downside protection, addressing recent market volatility.

John Koudounis, the President and CEO of Calamos Investments, highlighted the necessity of risk management in the current financial landscape, where Bitcoin has experienced significant fluctuations. He remarked, "Our inaugural Protected Bitcoin ETFs rolled out earlier this year have successfully shielded investors from substantial losses. Now is an opportune moment to launch the next series, reinforcing the resilience of our protective strategies."

Overview of New ETFs

The upcoming April series will consist of three ETFs, each tailored to meet different investment needs and risk appetites. The breakdown of the products includes:

1. Calamos Bitcoin Structured Alt Protection ETF (CBOA)
- Downside Protection: 100%
- Estimated Cap Range: 10% - 11%

2. Calamos Bitcoin 90 Series Structured Alt Protection ETF (CBXA)
- Downside Protection: 90%
- Estimated Cap Range: 27% - 30%

3. Calamos Bitcoin 80 Series Structured Alt Protection ETF (CBTA)
- Downside Protection: 80%
- Estimated Cap Range: 47% - 52%

These ETFs will operate over a one-year outcome period, providing investors with tailored options that align with their financial goals. The strategy allows participation in Bitcoin's potential upside while mitigating the risk of downside exposure.

Performance and Market Context

Since the inception of their first list of protected Bitcoin ETFs, market conditions surrounding Bitcoin have been challenging, with prices subjected to downward pressures. Despite this, the Calamos suite has showcased its intended resilience. For instance, in the initial months following the launch of the January ETFs, Bitcoin's performance dropped significantly, yet the ETFs demonstrated minimal negative returns:

• - Calamos Bitcoin Structured Alt Protection ETF (CBOJ): -0.98% return during a Bitcoin downturn of -25.80%
• - Calamos Bitcoin 90 Series (CBXJ): -3.70% against a -22.36% Bitcoin performance
• - Calamos Bitcoin 80 Series (CBTJ): -6.64% amidst the same Bitcoin decline

This performance profile emphasizes Calamos’ commitment to risk-adjusted returns for its investors.

Trading and Accessibility

The new series will kick off with a Net Asset Value (NAV) of $25, which will enable investors to secure their desired protection level right at the start without exposure to volatility that could later affect their investments. Investors will have guaranteed protection (100%, 90%, or 80%) as they head into each trading day.

Matt Kaufman, Head of ETFs at Calamos, emphasized the importance of risk management strategies in times of market uncertainty. He stated, "This new suite offers a blend of growth potential with fortified downside protection, enabling investors to customize their risk exposure according to their investment strategies."

Background on Calamos Investments

Established as a prominent player in the world of alternative investments, Calamos Investments has built its reputation on tailoring innovative strategies to serve its clients' evolving needs. With approximately $41 billion in assets under management, including $18 billion in liquid alternatives, the firm consistently attracts a diverse client base that includes financial advisors and institutional investors across the globe. Headquartered in the Chicago metropolitan area, Calamos continues to expand its reach and influence in the investment landscape.

As Calamos prepares to roll out its next chapter in the realm of bitcoin ETFs, it sets a new precedent for how investors engage with the cryptocurrency market, balancing risk and potential reward in the face of volatility.