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Calamos Set To Launch Its July Series Of Risk-Mitigated Bitcoin ETFs

July 08, 2025

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With Bitcoin (CCC: BTC-USD) breaking above the psychologically important $100,000 barrier in May, public interest in cryptocurrencies has again spiked higher. At the same time, investors were reminded of the huge volatility risks facing digital assets, with BTC falling below the $80,000 level in April. To address the concerns of market participants who are otherwise interested in Bitcoin, financial services provider Calamos Investments has introduced a portfolio of downside-protected exchange-traded funds.

Aiming to offer controlled participation in cryptocurrencies, the Calamos Structured Alt Protection Bitcoin ETFs combine synthetic Bitcoin exposure with downside protection and capped upside potential. These funds are unique in that they provide investors defined outcomes over a one-year period. Calamos achieves a duality between risk and reward through a complex integration of options overlay (via call spreads) and U.S. Treasuries.

On July 8, 2025, Calamos will launch the July series of its downside-protected Bitcoin ETFs. Three products will be available, distinguished by their reward potential relative to risk. Keep in mind that these funds are meant to be held from the beginning of the outcome period to the end to receive the listed protection ratio.

Designed for conservative investors, the CBOY ETF provides 100% downside protection, so long as investors hold the fund for the full outcome period. However, the tradeoff is that any potential gains from Bitcoin’s price appreciation are realized only up to a defined cap. Effectively, the CBOY could be an intriguing asset for the investor unwilling to risk market drawdowns.

Appropriate for market participants who are willing to accept some volatility risk in exchange for a greater reward profile, the CBXY ETF offers 90% downside protection. Again, assuming that investors hold for the full outcome period, they are responsible for the first 10% of any loss. Beyond that, the red ink is absorbed by the ETF structure.

The most aggressive of the volatility-mitigating funds, the CBTY ETF offers 80% downside protection. This means that investors accept up to 20% loss exposure, with the rest absorbed by the fund’s architecture. While CBTY stakeholders will likely experience the wildness of Bitcoin’s price discovery process, the ETF’s return potential is also the most generous among the three.

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