With an end to tariff negotiations seemingly nowhere in sight, many are wondering what tariffs could do to bitcoin investments.
Even though crypto trading is banned in China, many China companies are still tied to the bitcoin ecosystem. This includes companies that produce machines used to mine bitcoin. As such, severe tariffs between the U.S. and China could have a noticeable effect on the bitcoin supply chain.
However, it seems like some of the China companies are looking to stay ahead of the game. Earlier in June, Reuters reported that Bitmain, Canada, and MicroBT are in varying steps of setting up manufacturing efforts in the U.S. The Reuters report notes that these moves were at least partially done to negate some of the impact of U.S.-China trade tensions.
As Reuters points out, Bitmain, Canada, and MicroBT are some of the most utilized manufactures for bitcoin mining rigs. By amplifying their presence in the United States, in our opinion these companies could be less exposed to potential tariffs between the two rivaling countries. Looking more broadly, these developments could indicate how the bitcoin supply chain could be more tariff-resilient than investors may expect.
Offsetting Bitcoin Risks With Calamos Protected Bitcoin ETFs
For investors counting on bitcoin’s tariff resiliency, it may be best to do so in a risk-managed manner. One option for helping to manage risk is through investing in Calamos Protected Bitcoin ETFs. These funds offer bitcoin exposure paired with up to 100% downside protection over the one-year outcome period.
Launched on July 8, CBOY (100% downside protection), CBXY (90%), and CBTY (80%) could prove to be valuable tools for managing bitcoin through tariff volatility. After paying fees and expenses, investors in the ETFs can enjoy up to 100% protection of principal across the ETFs’ one-year outcome periods. However, this downside security does mean that the fund has a cap on potential returns. Initial caps for the ETFs were 11%, 24%, and 43%, respectively.
These defensive strategies may give advisors and investors more comfort as they navigate bitcoin exposure in their portfolio while staying true to their risk profiles. Combined with more mining rigs being manufactured in the United States, these bitcoin ETFs could prove themselves to be an attractive strategy for navigating tariff tensions.
The October series of the Calamos Protected Bitcoin ETFs are scheduled to launch on October 1, 2025. For more information on new and upcoming funds, investors can visit www.calamos.com/bitcoin.
For more news, information, and strategy, visit the Crypto Content Hub.
Before investing, carefully consider the 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.
An investment in the Fund is subject to risks, and you could lose money on your investment in the Fund. There can be no assurance that the Fund will achieve its investment objective. Your investment in the 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 the Fund can increase during times of significant market volatility. The Fund also has specific principal risks, which are described below. More detailed information regarding these risks can be found in the Fund’s prospectus.
Investing involves risks. Loss of principal is possible. The Fund(s) 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.
The Target Outcome may not be achieved, and investors may lose some or all of their money. The Fund is designed to achieve the Target Outcome only if an investor buys on the first day of the Outcome Period and holds the Fund until the end of the Outcome Period. While the Fund seeks to provide 100% 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 it will successfully do so. If the 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 Fund 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.
The Fund seeks 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% of losses (before fees and expenses) of (i) Spot bitcoin or (ii) one or more of the Underlying ETPs and/or Bitcoin Indexes, in each case, over a period of approximately one (1) year (the “Outcome Period”). The Fund will not invest directly in bitcoin. Instead, the Fund seeks to provide investment results that, before taking fees and expenses into account, track the positive price return of Spot bitcoin by investing in options that reference the price performance of either (i) one or more underlying exchange-traded products (“Underlying ETPs”) which, in turn, own bitcoin or (ii) one or more indexes that are designed to track the price of bitcoin (“Bitcoin Index”).
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.
The fund’s expense ratio as of the prospectus dated 4/7/2025 is 0.69%.
Cap Rate – Maximum percentage return an investor can achieve from an investment in the Fund if held over the Outcome Period.
Protection Level – Amount of protection the Fund is designed to achieve over the Days Remaining.
Outcome Period – The defined length of time over which the outcomes are sought.
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