Calamos Investments offers a Bitcoin exchange-traded fund with 100% downside protection.

It is scheduled to debut on the Chicago Board Options Exchange on January 22 European Training FoundationCalled CBOJ, it aims to address Bitcoin's volatility while providing growth potential. According to To the company version.

Bitcoin (Bitcoin) Risk-averse investors are often deterred by large price fluctuations. The Bank of Japan ETF seeks to change that by ensuring that investors do not lose their money, even if the value of Bitcoin declines.

The fund achieves this protection by combining US Treasuries with options linked to the CBOE Bitcoin US ETF. This structure provides a regulated and transparent way to gain exposure to Bitcoin while minimizing risk.

The Bank of Japan relies on Calamos' Structural Protection ETF serieswhich launched in 2024 and provided similar protection to stock indices such as the S&P 500 and Nasdaq-100.

Annual protection reset

Unlike traditional ETFs, the Bank of Japan resets its downside protection annually. Each year, investors receive a new maximum potential gain while remaining fully protected against losses over the next 12 months.

“Many investors have been hesitant to invest in bitcoin due to its epic volatility,” said Matt Kaufman, head of ETFs at Calamos. “Calamos seeks to meet demands from advisors, institutions, and investors for solutions that capture Bitcoin's growth potential while mitigating historically high volatility and withdrawals from (the asset).”

December 2024 report He claimed Many major exchanges, such as Calamos, will turn to new derivatives-based Bitcoin ETFs to help cautious investors weather the cryptocurrency's notorious price swings.

ETFs are investment funds that trade like stocks on stock exchanges, allowing investors to pool their money into a fund containing different assets.

Essentially, the Bank of Japan provides a way for investors to gain exposure to Bitcoin without directly owning it, while mitigating risks through its protective structure.