Ah, my dear friends, gather ’round and listen to the tale of Calamos Investments, a firm with over $40 billion in assets under management, who have filed for a “laddered” Bitcoin (BTC) exchange-traded fund (ETF) in the United States! ππ
This product, you see, is designed to cater to the cautious crypto investors seeking exposure to digital asset markets. π΅οΈββοΈπΌ
But why, you may ask, would anyone want to invest in such a volatile market as Bitcoin? Well, my friends, it seems that the cryptocurrency has been three to nearly four times more volatile than major equity indexes, according to a Fidelity analysis. π²π
Fear not, for Calamos has launched three “protected” Bitcoin ETFs in January, and now they bring forth their latest creation! ππΌ
The new ETF would invest in options contracts that reference against the performance of five Bitcoin ETFs: BlackRock’s iShares Bitcoin Trust; Grayscale’s Bitcoin Mini Trust; the Bitwise Bitcoin ETF; the Fidelity Wise Origin Bitcoin Fund; and the ARK 21Shares Bitcoin ETF. ππ
Now, you may be wondering, “What on earth are options contracts?” Fear not, dear reader, for I shall explain! Options, in general, are investment instruments that give the holder the right but not the obligation to buy or sell an underlying asset before or on a certain date. They are commonly used to mitigate risk and protect against potential losses. π€πΈ
Calamos SEC filing language, detailed
Calamos says its ETF will target downside protection for losses greater than 20%. Aside from options, the fund can invest in cash and US Treasurys, depending on the portfolio management approach used. πΈπ
“If, for example, the Floor is 20% and the price of Spot bitcoin declines by 8% over a Target Outcome Period, an investor in the Underlying Fund would not receive any protection from the Floor because the decline was not greater than 20%,” reads the document. “If, by contrast, the decline of the price of Spot bitcoin over the Outcome Period was 32%, the Floor feature is designed to limit that investor’s loss to only 20%.” ππΈ
In January, Calamos launched three “protected” Bitcoin ETFs that have varying degrees of upside potential and downside protection. ππ
CryptoMoon reached out for comment from Calamos, but had not received a reply at time of publication. π΅οΈββοΈπ
Other Bitcoin ETFs’ structure and impact
Bitcoin ETFs generally offer exposure to the world’s largest cryptocurrency by backing the funds with actual Bitcoin. For instance, BlackRock owns 716.5 BTC worth approximately $85.4 billion, according to Arkham Intelligence. Often, that Bitcoin is stored by custodians, such as when BlackRock contracted with Anchorage for that reason. ππΈ
Approved in January 2024, Bitcoin spot ETFs have had a successful Wall Street debut. According to sosovalue.com, the instruments have had a cumulative net inflow of $53.1 billion as of Tuesday. The total net assets held in these funds have reached $150 billion, accounting for 6.5% of the Bitcoin market cap. ππΈ
The five ETFs that Calamos’s laddered Bitcoin ETF seeks to track have a combined $124.3 billion in assets, or 83.1% of the overall assets in the Bitcoin ETFs. ππΈ
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2025-07-16 23:30