In a groundbreaking move for digital asset investors, Calamos is set to launch the world’s first suite of downside protected Bitcoin ETFs—offering structured risk management solutions tailored to varying investor risk appetites. The new offerings, CBXJ (90% protection) and CBTJ (80% protection), complement the previously announced CBOJ (100% protection), forming a comprehensive suite designed to provide downside protection while capturing upside potential in Bitcoin’s volatile market.
This innovative ETF series marks a pivotal shift in how investors can access Bitcoin through regulated, tax-efficient, and transparent investment vehicles—without direct exposure to cryptocurrency custody risks.
Introducing the Protected Bitcoin ETF Suite
Calamos’ Protected Bitcoin ETF Suite introduces a novel approach to Bitcoin investing by combining options strategies with U.S. Treasuries to deliver defined risk outcomes over a one-year period. Each fund in the suite offers a different balance between downside protection and upside cap potential:
- CBOJ: 100% downside protection with an estimated upside cap range of 10%–11.5%
- CBXJ: 90% downside protection with an estimated upside cap range of 28%–31%
- CBTJ: 80% downside protection with an estimated upside cap range of 50%–55%
👉 Discover how structured ETFs can help you manage risk while participating in Bitcoin’s growth.
These funds are built on Calamos’ proven Structured Protection ETF framework, which has already gained traction with strategies linked to the S&P 500®, Nasdaq-100®, and Russell 2000® indices. By extending this model to Bitcoin, Calamos is addressing the growing demand for regulated, risk-managed exposure to digital assets.
How the Protection Mechanism Works
The ETFs do not invest directly in Bitcoin. Instead, they use a combination of U.S. Treasury securities and exchange-traded options on the CBOE Bitcoin US ETF Index to simulate Bitcoin’s price performance up to a predetermined cap. This structure ensures that:
- Investors are shielded from a significant portion (80%, 90%, or 100%) of Bitcoin’s negative returns if held for the full outcome period.
- Gains are capped at a pre-determined rate, offering a clear risk-reward profile.
- There is no counterparty credit risk, as all derivatives are centrally cleared.
Each fund resets annually, allowing investors to reinvest with updated caps and protection levels based on prevailing market conditions.
Launch Timeline and Key Details
The rollout of the Protected Bitcoin ETF Suite is strategically phased to ensure market readiness and investor clarity:
- CBOJ launches on January 22, 2025, with a net asset value (NAV) of $25 per share.
- CBXJ and CBTJ follow on February 4, 2025.
- All funds will be listed on Cboe Global Markets, with new series introduced quarterly.
Each fund has an annual expense ratio of 0.69%, managed by Co-CIO Eli Pars and Calamos’ Alternatives Team. The outcome period for all three funds runs through January 30, 2026, providing a consistent benchmarking window.
This systematic launch enables investors to enter at the beginning of the outcome period—critical for achieving the stated protection levels. Purchasing shares after the start date may expose investors to reduced protection or increased risk of loss.
Addressing Bitcoin Volatility with Risk Management
Bitcoin’s meteoric price swings have long been both its allure and its biggest deterrent for mainstream investors. While its long-term growth potential is widely recognized, short-term volatility poses significant challenges.
“Bitcoin’s acceptance as an investible asset is growing, yet concerns about its volatility remain,” said Matt Kaufman, Head of ETFs at Calamos. “Our suite offers a menu of straightforward solutions designed to provide true risk management for this unique asset.”
By offering multiple protection tiers, Calamos empowers investors to align their exposure with their individual risk tolerance:
- Conservative investors may prefer CBOJ for near-complete downside shielding.
- Moderate-risk investors might choose CBXJ for balanced protection and higher return potential.
- Aggressive investors could opt for CBTJ, accepting more downside risk for a chance at significantly higher capped returns.
👉 Explore how you can balance risk and reward in volatile markets with structured financial products.
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Frequently Asked Questions (FAQ)
Q: What does "downside protection" mean in these ETFs?
A: Downside protection refers to the percentage of loss the fund aims to shield investors from over a one-year outcome period. For example, CBOJ targets 100% protection—meaning if Bitcoin drops 30%, the fund should not lose value (before fees). CBXJ offers 90% protection, so it would only reflect 10% of that loss.
Q: Can I lose money investing in these ETFs?
A: Yes. While the funds aim to deliver their stated protection levels, there is no guarantee. Protection only applies if you hold shares for the entire outcome period. Buying after launch or selling early may result in losses, including total loss of principal.
Q: How is the upside cap determined?
A: The cap is set at the beginning of each outcome period based on market conditions, including options pricing and volatility. The final rate is announced after market close on the launch day. Estimated ranges are provided in advance but are subject to change.
Q: Do these ETFs hold actual Bitcoin?
A: No. The funds do not hold Bitcoin directly. They gain exposure through options on the CBOE Bitcoin US ETF Index, which tracks underlying Bitcoin ETFs. This allows for regulatory compliance and eliminates custody risks.
Q: Are these funds suitable for long-term holding?
A: These ETFs are designed for outcome periods of approximately one year. After each period ends, a new series begins with updated caps and protections. Investors can hold shares indefinitely, but performance resets annually.
Q: Is there counterparty risk?
A: No. All derivatives used are exchange-traded and centrally cleared, eliminating counterparty credit risk—a key advantage over private trusts or unregulated products.
A New Era in Digital Asset Investing
Calamos’ Protected Bitcoin ETF Suite represents a major leap forward in bringing institutional-grade risk management tools to retail and institutional investors alike. By combining the growth appeal of Bitcoin with structured downside buffers, these ETFs bridge the gap between innovation and prudence.
As digital assets continue to evolve within mainstream finance, products like these will play a crucial role in democratizing access—offering clarity, transparency, and control in an otherwise unpredictable market.
👉 Learn more about next-generation investment strategies that combine innovation with risk discipline.
With quarterly series rollouts planned throughout 2025 and beyond, Calamos is positioning itself at the forefront of structured crypto investing—delivering solutions that meet the needs of today’s sophisticated yet cautious investors.