As investors and advisors consider adding bitcoin exposure to their portfolios, it’s important to understand its use cases.
Recently, members of the Calamos Investments team joined a CoinDesk event to discuss the merits of responsible bitcoin strategies. During the webcast, they covered several topics, including risk management and a variety of portfolio applications.
Risk Management Under Consideration
Generally speaking, the elephant in the room for cryptocurrency is volatility concerns. Early in the webcast, the Calamos participants explained how this factor affects investor opinion on bitcoin adoption.
“I would say the number one concern that we’ve gotten from clients is around the volatility,” noted Jon Adams, SVP CIO at Calamos Wealth Management. “With respect to bitcoin, there’s definitely interest from clients, but a little bit of reticence around the volatility perspective.”
Adams then noted how Calamos Investments offers a selection of ETFs that provide bitcoin exposure and a level of downside security. Risk-averse investors may want to consider the Calamos Bitcoin Structured Alt Protection ETF – January (CBOJ).
CBOJ offers investors a strategy that provides capped upside exposure to bitcoin’s performance and complete downside protection over a one-year outcome period, save for fees and expenses. This bulwark of downside security makes CBOJ a potentially attractive choice for volatility-conscious investors.
How and Why Bitcoin Works for Portfolios
Along with risk management, the Calamos Structured Protected Bitcoin ETFs offer a number of other portfolio applications. Christopher Russell, SVP Head of Strategic Planning and Analysis at Calamos Investments, pointed out how bitcoin exposure can improve a portfolio’s returns and Sharpe ratio. Additionally, Russell explained how bitcoin can pair well with other assets used for diversification.
“If you think about gold as the traditional commodity that an investor would use to create some diversification in their portfolio, bitcoin pairs very well with gold because they are not correlated to one another,” noted Russell.
The applications don’t stop there, either. Matt Kaufman, SVP Head of ETFs at Calamos Investments, added that CBOJ can operate as an alternative to a money market fund or a certificate of deposit.
With a wide variety of market applications and portfolio benefits, the Calamos bitcoin ETFs are seeing strong interest from investors. Since CBOJ’s launch on January 22, the fund has already amassed $43 million in net flows as of February 27, 2025.
For more news, information, and analysis, visit the Crypto Channel.
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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.
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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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