It’s no understatement to say that bitcoin closed out February on a somewhat sour note. In the last week of the month, the price of bitcoin plummeted about 16%. Notably, this marked the largest one-week drop since November 2022. Although bitcoin’s price received a bit of a bump with President Trump’s announcement of plans for a crypto strategic reserve, it proved short-lived and retreated again at the time of writing.
Several factors may be contributing to bitcoin’s performance, such as the US-imposed tariffs and concerns of an ensuing trade war adding to worries of economic uncertainty.
Although history has shown that bitcoin is capable of making a comeback, this recent extreme volatility serves as an example of why investors may wish to find a bitcoin strategy with strong downside volatility management.
Situations like these are exactly when a Calamos Protected Bitcoin ETF may be beneficial. These funds are constructed to generate upside exposure to bitcoin with varying levels of downside security.
100% Downside Protection May Be More Valuable Than Ever
The Calamos Bitcoin Structured Alt Protection ETF – January (CBOJ), for instance, uses an options strategy on the Cboe Mini Bitcoin U.S. ETF Index to gain access to bitcoin price performance up to a cap of around 12% as of February 28, 2025.
A crucial benefit of CBOJ’s strategy comes through its downside protection overlay. After fees and expenses, the fund offers 100% protection of principal against losses accrued over a one-year outcome period (save for fees and expenses).
Naturally, a fund like CBOJ would put bitcoin investors in a better position during bouts of volatility. The chart below from Calamos illustrates how the ETF is performing significantly better than pure bitcoin returns amid this crypto turmoil.
Bitcoin’s rough patch will likely not last. However, CBOJ’s rigorous and disciplined risk-averse management can help investors participate in bitcoin rallies while shielding them from potential tribulations.
Calamos Investments currently offers several bitcoin ETFs, each offering different upside caps and downside bulwarks. To learn more about these funds, visit www.calamos.com/bitcoin.
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.
Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any securities. Past performance is not an indication of future performance. All investments involve risk and, unless otherwise stated, are not guaranteed.
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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