Calamos Investments is set to revolutionize digital asset investing with the launch of the world’s first suite of downside protected Bitcoin ETFs. Building on the success of CBOJ, the industry’s first 100% downside protected Bitcoin ETF, Calamos is expanding its offering with two new funds: CBXJ, offering 90% downside protection, and CBTJ, providing 80% downside protection—both over a one-year outcome period. These innovative ETFs combine structured risk management with exposure to Bitcoin’s upside potential, marking a significant milestone in mainstream crypto investing.
A New Era in Risk-Managed Crypto Exposure
Bitcoin has emerged as a transformative asset class, but its volatility continues to deter conservative investors. Recognizing this challenge, Calamos is introducing a tiered protection model that allows investors to choose their preferred balance between risk and reward.
- CBOJ: 100% downside protection with an estimated upside cap of 10%–11.5%
- CBXJ: 90% downside protection with an estimated upside cap of 28%–31%
- CBTJ: 80% downside protection with an estimated upside cap of 50%–55%
All three ETFs are designed to track the positive price return of spot Bitcoin (via the CBOE Bitcoin US ETF Index) up to a predetermined cap, while shielding investors from significant losses—making them ideal for those seeking regulated, tax-efficient, and transparent access to Bitcoin without full exposure to its price swings.
👉 Discover how structured crypto ETFs can align with your investment goals.
How the Protected Bitcoin ETF Suite Works
Each fund uses a combination of U.S. Treasuries and exchange-traded options to create a defined-risk structure. Rather than holding Bitcoin directly, the ETFs gain exposure through derivatives linked to underlying Bitcoin exchange-traded products (ETPs) and indexes that reflect Bitcoin’s price performance.
Key features include:
- Annual reset mechanism: Each fund resets every 12 months, offering a new cap rate and refreshed downside protection.
- No counterparty credit risk: The use of exchange-traded options eliminates reliance on third-party promises.
- Transparency and liquidity: Listed on Cboe, these ETFs offer intraday trading and full regulatory oversight.
- Hold indefinitely: Investors are not forced to exit at the end of the outcome period, though optimal results require holding through maturity.
The initial net asset value (NAV) for CBOJ will be set at $25 on its launch date, January 22, 2025. This ensures investors who buy on day one receive the full stated protection level—avoiding overnight volatility that could otherwise dilute their downside shield. CBXJ and CBTJ will follow the same model when they list on February 4, 2025.
Targeting Diverse Investor Risk Profiles
One of the most compelling aspects of this suite is its flexibility. By offering multiple protection tiers, Calamos enables investors to align their exposure with personal risk tolerance and market outlook.
“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.”
Investors bullish on Bitcoin but wary of drawdowns can opt for CBOJ’s full capital protection. Those willing to accept moderate risk for higher return potential may prefer CBXJ or CBTJ. This modular approach mirrors Calamos’ proven Structured Protection ETF series launched in 2024, which brought 100% downside protection to S&P 500®, Nasdaq-100®, and Russell 2000® strategies.
Core Benefits of the Downside Protected Model
1. Predictable Risk Parameters
Unlike traditional crypto investments where losses can be unlimited, these ETFs define both maximum loss and maximum gain upfront. This clarity supports better portfolio planning and emotional discipline.
2. Regulated & Tax-Efficient Structure
As ETFs, these products benefit from daily transparency, SEC oversight, and favorable tax treatment compared to direct crypto holdings or private funds.
3. No Need for Crypto Wallets or Exchanges
Investors gain exposure through familiar brokerage accounts—no need to navigate exchanges, private keys, or self-custody risks.
4. Professional Portfolio Management
Led by Co-CIO Eli Pars and the Alternatives Team, each fund is actively managed using options strategies refined over decades in structured products.
👉 Learn how professional-grade risk management can enhance your digital asset strategy.
Frequently Asked Questions (FAQ)
Q: What does “downside protection” mean in practice?
A: If you hold the ETF for the full one-year outcome period, you’re protected from 80%, 90%, or 100% of Bitcoin’s losses (before fees). For example, if Bitcoin drops 40%, a holder of CBTJ (80% protection) would lose only 8% (20% of the decline).
Q: Can I lose more than the protected amount?
A: Yes—if you buy after the start of the outcome period. Protection applies only if you invest on day one and hold until maturity. Purchasing later increases risk, especially if the fund has already gained value.
Q: What happens if Bitcoin’s price exceeds the cap?
A: The fund will not capture returns beyond the cap. For instance, if CBXJ has a 31% cap and Bitcoin rises 60%, your return is still capped at approximately 31%.
Q: Are these funds suitable for long-term holding?
A: They reset annually. While you can hold indefinitely, performance beyond the outcome period is not guaranteed and may deviate from the target profile.
Q: How are cap rates determined?
A: The final cap is set at the end of the first trading day based on market conditions. The ranges quoted (e.g., 50%–55%) are estimates derived from pre-launch data.
Q: Is there any credit risk?
A: No. Because the funds use exchange-traded options and U.S. Treasuries, there is no counterparty credit risk.
Designed for the Modern Investor
With over $40 billion in assets under management and a legacy of innovation in alternatives and structured products, Calamos brings institutional-grade discipline to digital assets. The Protected Bitcoin ETF Suite reflects a growing demand for hybrid solutions—products that offer crypto exposure without compromising on risk control.
These ETFs are particularly appealing to:
- Conservative investors seeking crypto exposure
- Financial advisors building diversified client portfolios
- Institutions needing regulated access points
- Long-term holders looking to reduce volatility drag
As digital assets continue to mature, products like CBOJ, CBXJ, and CBTJ represent a critical bridge between traditional finance and the future of money.
👉 See how next-generation financial instruments are reshaping investment strategies.
Final Thoughts
Calamos’ launch of the world’s first multi-tiered downside protected Bitcoin ETF suite marks a pivotal moment in financial innovation. By combining options-based hedging with transparent ETF mechanics, it delivers a practical solution for investors who want upside participation without full downside exposure.
While no investment is without risk—and past performance does not guarantee future results—these funds offer a disciplined framework for navigating Bitcoin’s volatility. As more investors seek regulated, risk-aware pathways into crypto, Calamos is positioning itself at the forefront of this evolution.
Before investing, carefully consider a fund’s investment objectives, risks, charges, and expenses. Read the prospectus and summary prospectus available on Calamos’ website or by calling 1-866-363-9219. An investment in these funds is not insured by the FDIC and may lose value.
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