In a strategic move to meet growing investor demand for structured exposure to digital assets, Calamos Investments has unveiled key details for its upcoming suite of Bitcoin Protection ETFs. Set to launch on July 8, 2025, these innovative exchange-traded funds combine defined downside protection with capped upside potential, offering a balanced approach for investors seeking exposure to Bitcoin’s volatility while mitigating significant losses.
The three new ETFs—Calamos Bitcoin Structured Alt Protection ETF® – July (CBOY), Calamos Bitcoin 90 Series Structured Alt Protection ETF® – July (CBXY), and Calamos Bitcoin 80 Series Structured Alt Protection ETF® – July (CBTY)—are designed to provide performance linked to the CBOE Bitcoin US ETF Index over a one-year outcome period, before fees and expenses.
Each fund offers varying levels of capital protection and corresponding upside cap ranges, allowing investors to align their risk tolerance with appropriate investment options.
Understanding the Calamos Bitcoin Protection ETFs
CBOY: 100% Downside Protection with Conservative Upside
- Downside Protection Level: 100%
- Estimated Upside Cap Range: 9.0% – 11.0%
- Outcome Period: July 8, 2025 – July 7, 2026
- Annual Expense Ratio: 0.69%
The CBOY ETF is ideal for risk-averse investors who want full protection against Bitcoin’s price declines over the next year. In exchange for this security, the fund caps potential returns at approximately 11%, making it a conservative play within the digital asset space.
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CBXY: 90% Downside Protection with Moderate Upside
- Downside Protection Level: 90%
- Estimated Upside Cap Range: 24.0% – 28.0%
- Outcome Period: July 8, 2025 – July 7, 2026
- Annual Expense Ratio: 0.69%
The CBXY ETF strikes a middle ground—absorbing up to 10% of losses while offering significantly higher return potential than CBOY. This makes it suitable for investors expecting moderate Bitcoin appreciation but still wanting a strong safety net.
CBTY: 80% Downside Protection with Aggressive Upside
- Downside Protection Level: 80%
- Estimated Upside Cap Range: 43.0% – 48.0%
- Outcome Period: July 8, 2025 – July 7, 2026
- Annual Expense Ratio: 0.69%
The CBTY ETF targets more aggressive investors willing to accept up to 20% drawdown risk in exchange for the highest upside potential among the trio. With a cap range nearing 48%, this fund offers meaningful exposure to Bitcoin’s bull-case scenarios.
All three funds are managed by Co-CIO Eli Pars and Calamos’ Alternatives Team, leveraging structured derivatives such as FLEX Options issued through the Options Clearing Corporation (OCC) to deliver their targeted outcomes.
How These ETFs Work: Outcome-Based Investing
Each Bitcoin Protection ETF operates on a one-year outcome period, starting from the fund’s inception date. During this time:
- Investors are shielded from negative returns up to the defined protection level.
- Gains are capped at a predetermined rate—the "Cap"—which is fixed at the beginning of each cycle.
- Performance is based on the CBOE Bitcoin US ETF Index, not direct Bitcoin ownership.
Because these funds use structured derivatives, they do not track Bitcoin’s price in real time. Instead, their value evolves based on option strategies designed to achieve the desired payoff profile at maturity.
After each outcome period ends, a new cycle begins—offering investors an annual reset opportunity to reposition with updated caps and protections.
Tax Efficiency and Long-Term Holding Benefits
One often-overlooked advantage of holding these ETFs beyond one year is tax efficiency. If shares are held for more than 12 months:
- Any gains grow tax-deferred.
- Upon sale, profits qualify for long-term capital gains rates, which are typically lower than short-term rates.
This structure may appeal to investors looking to optimize after-tax returns in a volatile asset class like cryptocurrency.
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Frequently Asked Questions (FAQ)
Q: What does "downside protection" mean in these ETFs?
A: Downside protection refers to the percentage of losses an investor is shielded from over a one-year period. For example, CBOY offers 100% protection—meaning no loss of principal due to market decline—while CBTY protects 80%, allowing up to 20% drawdown.
Q: Can I lose money investing in these funds?
A: Yes. While downside protection limits losses up to a certain level, it only applies if you hold shares for the full outcome period. Early exits or purchases after the period begins may result in losses. Additionally, fees and expenses are not covered by protection.
Q: How is the upside cap determined?
A: The cap is pre-determined based on market conditions during the 15 trading days before launch. It represents the maximum return possible before fees. Caps may vary from year to year depending on volatility and options pricing.
Q: Do these ETFs own actual Bitcoin?
A: No. These funds gain exposure via a basket of FLEX Options tied to the CBOE Bitcoin US ETF Index, not through direct cryptocurrency holdings.
Q: Are these funds suitable for short-term traders?
A: No. These ETFs are designed for investors who commit capital for the full outcome period (approximately one year). Short-term trading may lead to unpredictable results due to path dependency and option decay.
Q: What happens after the one-year period ends?
A: A new outcome period begins automatically, resetting the protection level and establishing a new upside cap based on prevailing market conditions.
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Risks to Consider
As with any investment, these ETFs carry risks:
- Capped upside risk: Returns are limited even if Bitcoin surges beyond the cap.
- Derivatives risk: Use of FLEX Options introduces complexity and potential liquidity challenges.
- Market timing risk: Buying after the outcome period starts may mean missing part of the protection or upside.
- Non-diversification risk: Each fund focuses solely on Bitcoin-linked performance.
- Valuation risk: The funds’ market price may differ from NAV due to bid/ask spreads.
Investors should review the full prospectus for detailed disclosures and consult a financial advisor before investing.
A Growing Suite of Structured Protection Solutions
Calamos’ launch expands its industry-leading suite of Structured Protection ETFs®, now covering both traditional equity benchmarks like the S&P 500® and digital assets like Bitcoin. This breadth provides financial advisors with monthly entry points into capital-protected strategies across asset classes.
With over $40 billion in assets under management—including more than $18 billion in liquid alternatives as of May 31, 2025—Calamos continues to innovate at the intersection of risk management and growth investing.
Headquartered in metro Chicago, with offices in New York, San Francisco, and Miami, the firm serves global clients including pension funds, foundations, wealth platforms, and individual investors.
Final Thoughts
The introduction of Calamos’ Bitcoin Protection ETFs marks a pivotal development in mainstream crypto investing. By blending defined risk parameters with transparent payoff structures, these funds offer a disciplined alternative to direct cryptocurrency ownership—particularly appealing in uncertain or volatile markets.
Whether you're seeking full capital preservation or higher-growth potential with partial downside buffering, this lineup delivers tailored solutions backed by institutional-grade structuring.
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