A major provider of exchange-traded funds is trying to take the volatility out of bitcoin investments.
Calamos Investments launched the Calamos Bitcoin Structured Alt Protection ETF (CBOJ) on Wednesday. The company bills it as the world's first downside-protected bitcoin ETF. It is built with risk-averse investors in mind.
“You can come in all day long. Get that 100% protection. And at the end of the day, we're going to hit the limit,” ETF head Matt Kaufman told CNBC's “ETF Edge” this week. Bitcoin is a volatile asset… we don’t want the price of Bitcoin to move overnight.”
The company launched the new bitcoin ETF on Wednesday. It coincides with a winning month for bitcoin. The cryptocurrency is up 10% as of late Thursday afternoon.
According to a press release from Calamos, the fund provides access to bitcoin in a risk-controlled environment.
“Many investors have been reluctant to invest in bitcoin due to its epic volatility,” Kaufman said in the release. “Calamos aims to meet the demand from advisors, institutions and investors for solutions that leverage bitcoin's growth potential while mitigating the historically high volatility and declines of this fast-growing and high-performing asset.”
Calamos has more crypto funds on deck. According to the Calamos website, it will launch Calamos Bitcoin 90 Series Structured Alt Protection ETF (CBXJ) and Calamos Bitcoin 80 Series Structured Alt Protection ETF (CBTJ) on February 4.
'You Won't See Calamos Meme Coin ETFs'
Despite the company's willingness to offer cryptocurrency funds, Kaufman told “ETF Edge” there is one group that Calamos won't consider.
“You won't see meme coin ETFs from Calamos. But the ability to access bitcoin in a way that meets your risk tolerance is what we're about,” Kaufman said.