Even though bitcoin is garnering more market interest than ever before, investors are still on the fence regarding cryptocurrency. It turns out there are several reasons for this. Last month, a survey from Bitwise and VettaFi explored how financial advisors view cryptocurrency and related assets, specifically examining why some advisors are hesitant to add more crypto exposure or invest in the asset class. According to the survey, regulatory concerns ranked as the biggest reason advisors steered clear of crypto, with 50% citing them as a problem.
Another 47% of advisors believe that cryptocurrency is too volatile. The third most prevalent reason was uncertainty over how to value crypto assets, which 31% of advisors cited as a concern.
Regardless of the validity of these concerns, risk-wary investors could be missing out on the upside potential that bitcoin exposure can offer. One option that deserves consideration is bitcoin ETFs. Along with the benefits of diversification, bitcoin ETFs can help advisors and their clients capitalize on cryptocurrency’s potentially strong returns.
For those still hesitant about potential bitcoin risk, the Calamos suite of Structured Protection Bitcoin ETFs may be able to help. These funds can offer distinct bitcoin exposure while protecting the initial investment from potential downside volatility.
Mitigate Bitcoin Downside & Lock in Upside With CBXJ
For example, Calamos Bitcoin 90 Series Structured Alt Protection ETF- January (CBXJ) deserves a closer look. The fund uses an option strategy to access the returns of the CME CF Bitcoin Reference Rate – New York Variant (BRRNY), which is the benchmark for many spot bitcoin ETFs currently on the market. As of February 4, 2025, the fund offers returns up to the cap rate of 29.15% for the one-year outcome period.
Where CBXJ can truly shine is through its added benefit of risk management. Save for fees and expenses, the fund protects 90% of the investment principal (less fees and expenses) from any losses incurred by the fund across its outcome period.
As such, CBXJ can be apt investment choice for advisors and clients who see bitcoin’s advantages but remain wary of the risk. The fund lets its investors participate in bitcoin rallies while providing a solid bulwark against threats the asset class may face.
Calamos Investments also offers other Structured Protection Bitcoin ETFs that provide participation in bitcoin’s price performance with varying upside caps and corresponding downside mitigation. Through the Calamos suite, investors can choose the ETF that best matches their desired risk/return profile. To learn more about these funds, visit www.calamos.com/protection.
For more news, information, and analysis, visit the Crypto Channel.
Disclosure Information
Calamos Investments LLC, referred to herein as Calamos, is a financial services company offering such services through its subsidiaries: Calamos Advisors LLC, Calamos Wealth Management LLC, Calamos Investments LLP, and Calamos Financial Services LLC.
Before investing, carefully consider a Fund’s investment objectives, risks, charges and expenses. Please see the prospectus and summary prospectus containing this and other information which can be obtained by calling 1-866-363-9219. Read it carefully before investing.
Each fund’s prospectus and statement of additional information is not an offer to sell such fund’s securities and is not soliciting an offer to buy such fund’s securities in any state where the offer or sale is not permitted.
The Funds seek to provide investment results that, before taking fees and expenses into account, track the positive price return of the CME CF Bitcoin Reference Rate – New York Variant (“BRRNY”) (“Spot bitcoin”) up to a predetermined upside cap (the “Cap”) while seeking to protect against 100%, 90% or 80%, respectively, of losses (before total fund operating fees and expenses) of Spot bitcoin over a period of approximately one (1) year (the “Outcome Period”). The Funds will not invest directly in bitcoin. Instead, the Funds seek to provide investment results that, before taking total fund operating fees and expenses into account, track the positive price return of Spot bitcoin by investing in options that reference the price performance of one or more underlying exchange-traded products (“Underlying ETPs”) which, in turn, own bitcoin and/or one or more indexes that are designed to track the price of bitcoin (“Bitcoin Index”).
The Target Outcome may not be achieved, and investors may lose some or all of their money. The Funds are designed to achieve the Target Outcome only if an investor buys on the first day of the Outcome Period and holds a Fund until the end of the Outcome Period. While the Funds seek to provide 100%, 90% or 80% protection against losses experienced by the price of Spot bitcoin for shareholders who hold Fund Shares for an entire Outcome Period, there is no guarantee a Fund will successfully do so. If a Fund’s NAV has increased significantly, a shareholder that purchases Fund Shares after the first day of an Outcome Period could lose their entire investment. An investment in the Funds is only appropriate for shareholders willing to bear those losses. There is no guarantee the Capital Protection and Cap will be successful, and a shareholder investing at the beginning of an Outcome Period could also lose their entire investment.
An investment in the Funds is subject to risks, and you could lose money on your investment in a Fund. There can be no assurance that a Fund will achieve its investment objective. Your investment in a Fund is not a deposit in a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other government agency. The risks associated with an investment in a Fund can increase during times of significant market volatility. The Funds also have specific principal risks, which are described below. More detailed information regarding these risks can be found in the Funds’ prospectus.
Digital Assets Risk: The Bitcoin network was first launched in 2009 and bitcoins were the first cryptographic digital assets created to gain global adoption and critical mass. Although the Bitcoin network is the most established digital asset network, the Bitcoin network and other cryptographic and algorithmic protocols governing the issuance of digital assets represent a new and rapidly evolving industry that is subject to a variety of factors that are difficult to evaluate. Moreover, because digital assets, including bitcoin, have been in existence for a short period of time and are continuing to develop, there may be additional risks in the future that are impossible to predict as of the date of this prospectus. Digital assets represent a new and rapidly evolving industry, and the value of the Underlying ETPs’ shares depends on the acceptance of bitcoin. The realization of one or more of the following risks could materially adversely affect the value of the Underlying ETPs’ shares.
Investing involves risks. Loss of principal is possible. The Funds face numerous market trading risks, including authorized participation concentration risk, underlying ETP risk, cap change risk, capital protection risk, capped upside risk, cash holdings risk, concentration risk, clearing member default risk, correlation risk, costs of buying and selling fund shares, counterparty risk, derivatives risk, equity securities risk, FLEX options risk, interest rate risk, investment in a subsidiary, investment timing risk, liquidity risk, management risk, market maker risk, market risk, new fund risk, non-diversification risk, options risk, OTC options risk, position limits risk, premium-discount risk, secondary market trading risk, sector risk, tax risk, trading issues risk, U.S. Government security risk, U.S. Treasury risk, and valuation risk. For a detailed list of Fund risks see the prospectus.
100%, 90% or 80% capital protection is over a one-year period before fees and expenses. All caps are predetermined.
Cap Rate – Maximum percentage return an investor can achieve from an investment in a Fund if held over the Outcome Period.
Protection Level – Amount of protection a Fund is designed to achieve over the Days Remaining.
Outcome Period – Number of days in the Outcome Period
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