Bitcoin isn’t as volatile as it used to be, but the largest cryptocurrency still isn’t an asset that’s welcoming to risk-averse, skittish investors. Even the most devout HODLers have occasionally been unnerved by Bitcoin’s swings.
Fortunately, there are ways to access the king of digital currencies in protected thanks to exchange traded funds (ETFs). When it comes to protected Bitcoin ETFs, Calamos Investments is a leader with one of the most expansive lineups of such funds.
The issuer expanded that roster last October with the addition of a trio of ETFs: The Calamos Laddered Bitcoin Structured Alt Protection ETF™ (CBOL), the Calamos Laddered Bitcoin 90 Series Structured Alt Protection ETF™ (CBXL) and the Calamos Laddered Bitcoin 80 Series Structured Alt Protection ETF™ (CBTL).
The numbers in the ETFs’ names refer to the percentage of downside protection offered by the products. For example, CBOL features 100% downside protection by way of basket exposure to other Calamos structured Bitcoin ETFs.
“The Calamos Laddered Bitcoin Structured Alt Protection ETF® (Ticker: CBOL) is designed to match the positive price return of the CME CF Bitcoin Reference Rate - New York Variant ("BRRNY") ("Spot bitcoin") up to a defined cap, with specific levels of downside protection, over a one-year period (before fees and expenses),” according to the issuer.
More Protection Offers Advantages
Bitcoin is like any other asset in that the shallower the drawdowns investors are subjected to, the shorter the odds are of long-term success. That’s an important as is understanding how the Calamos Bitcoin Structured Protection ETFs work because those are the funds held by CBOL, CBTL and CBTL.
“Each Calamos Bitcoin Structured Protection ETF consists of three layers. The first two layers are options positions that work together as a call spread, while the third layer is made up of Treasury bonds providing downside protection,” notes the issuer. The options layers have different strike prices (the price at which the option purchaser may buy or sell the security), the same expiration date (approximately one year), and the same style (European style options). These option contracts are set at a predetermined strike price at launch and then again at the beginning of each new outcome period.
Put simply, the Calamos Bitcoin Structured ETFs are options-based layered funds with the layers consisting of upside participation, capital preservation and a cap on that upside as is often the case with options-based ETFs.
Calamos Laddered ETFs: Something for Everyone
The three new laddered Bitcoin ETFs are potentially attractive to advisors because the products make Bitcoin accessible in fund form with the benefit of the aforementioned protection. Plus, those ETFs offering varying degrees of upside participation and protection, broadening the audience of end users.
For example, the protection offered by CBOL is deep enough that the new ETF could be appealing to the risk-averse investors, even retirees. CBXL, the 90 Series ETF, is the not too hot, not too cold option.
“Its laddered selection of Calamos ETFs seeks to provide a middle ground of downside protection. Each underlying fund limits total loss, before fees and expenses, to no more than -10% during its outcome period. Meanwhile, the underlying funds’ upside caps sit between CBOL and CBTL’s percentages, offering a good runway for capturing bitcoin opportunity. Currently, CBTL delivers an attractive weighted average starting cap rate of 26.61%,” says Calamos.
For clients that want more upside participation with some protection, CBTL is the ETF to call. In fact, its upside caps are high enough it can act as an equity replacement tool.
“The higher upside caps of CBTL’s underlying ETFs significantly influence how it might be utilized in portfolio applications,” adds the issuer. “All the underlying ETFs in this fund’s portfolio launched with initial caps well above 40%, with two above 50%. Currently, CBTL delivers an attractive weighted average starting cap rate of 46.34% (as of Dec. 22, 20250. This allows the fund to operate as an equity alternative, pursuing equity-like returns based on the price of bitcoin while still limiting some of the impact from a significant drawdown.”