Investment management firm Calamos was gearing up to launch the world’s first 100% downside-protected Bitcoin BTC/USD exchange-traded fund, according to a Monday press release.
What Happened: The ETF will employ a mix of Treasury securities and options on the CBOE Bitcoin U.S. ETF Index, an investment avenue that tracks the price returns from U.S.-listed spot Bitcoin ETFs, Calamos said.
The ETF will reset annually, providing investors with a new upside cap to protect against negative Bitcoin returns for the next 12 months. This effectively means that investors will have to give up some potential gains in return for protection during market downturns.
The ETF is expected to be listed on CBOE on Jan. 22 under the ticker CBOJ. CBOJ units can be held indefinitely.
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