How to Diversify a Portfolio With Downside Protected Bitcoin ETFs |

With many analysts projecting high expectations for bitcoin through 2025, investors should consider adding cryptocurrency to their portfolio.

Luckily, bitcoin ETFs make it easier than ever for everyday investors to access the popular cryptocurrency. What’s more, these products can offer crypto exposure that capitalizes on the added liquidity, tax efficiency, and transparency of the ETF wrapper.

Calamos Investments now offers the world’s first suite of downside protection bitcoin ETFs. These funds provide participation in bitcoin’s price performance with varying upside caps and corresponding downside buffers. Through the Calamos suite, investors can choose the ETF that best matches their desired risk/return profile.

Bitcoin Exposure With Less Risk

The Calamos Bitcoin Structured Alt Protection ETF – January (CBOJ) offers the most risk-averse strategy in the suite. This fund protects 100% of the principal against any downside incurred over the one-year outcome period, save for fees and expenses.

CBOJ has comprehensive downside protection. So the fund could be a good choice for investors who remain wary of bitcoin’s bouts of volatility. However, the fund’s risk management comes at the expense of an upside cap on potential returns. The initial upside cap rate for CBOJ is 11.65% as of January 22, 2025.

More Risk, More Reward

For investors willing to take on a little more bitcoin risk, the Calamos Bitcoin 80 Series Structured Alt Protection ETF – January (CBTJ) may provide an interesting option. Unlike CBOJ, CBTJ’s downside protection preserves 80% of the principal (less fees and expenses) from potential losses.

However, this more limited risk management comes with the possibility of far higher returns. As of February 4, 2025, CBTJ offers upside exposure up to an estimated cap range of 50-55%. The fund’s significantly higher upside cap makes it a great choice for investors who remain more bullish on bitcoin.

Blending Risk & Reward

Meanwhile, the Calamos Bitcoin 90 Series Structured Alt Protection ETF – January (CBXJ) offers a middle ground between the other two funds. In particular, CBXJ’s downside protection preserves 90% of the principal (less fees and expenses) from losses incurred by the fund across its outcome period.

As one may expect, CBXJ’s upside cap sits in the middle between CBOJ and CBTJ. As of February 4, 2025, the fund offers returns up an estimated cap range of 28-31%. This fund can work well for investors trying to strike a balance between risk management and bitcoin upside.

With extensive experience in managing alternative investment strategies, Calamos Investments launches new risk-mitigated ETF products on a regular basis. For more information on current and upcoming Calamos funds, visit www.calamos.com/protection.

For more news, information, and strategy, 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”).

Additional Information

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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