Amid over $1 billion exiting spot Bitcoin ETFs last week, Calamos reports that investors are shifting towards Bitcoin products offering built-in downside protection.
By AI Boost|Edited by Jennifer SanasieUpdated May 28, 2026, 10:07 p.m. Published May 28, 2026, 10:03 p.m. 2 min readMake preferred onLatest developments: Calamos indicates that its protected Bitcoin ETFs are drawing in investments, contrary to the trend of redemptions seen in spot Bitcoin ETFs.
- Matt Kaufman, who leads ETFs at Calamos, mentioned that the firm has experienced inflows between $10 million and $15 million in recent weeks.
- Kaufman noted that advisors are increasingly seeking Bitcoin exposure that minimizes volatility and risk.
- The company provides three varieties of protected Bitcoin ETFs, featuring options with complete downside coverage as well as those with 10% or 20% risk thresholds.
- “You can gain from Bitcoin's upside while avoiding downside risk,” Kaufman stated.
- Kaufman appeared on CoinDesk's Public Keys with Jennifer Sanasie.
How it works: The firm utilizes Treasuries and options linked to Bitcoin indexes to structure these products.
- Kaufman explained that approximately 90% of the assets are allocated to Treasuries for downside protection.
- The remaining funds are invested in Bitcoin-linked call spreads through FLEX options.
- Calamos developed its own Bitcoin-linked index and created FLEX options associated with it following the introduction of spot Bitcoin ETF options.
- These offerings are available in both quarterly and laddered formats tailored for model portfolios.
What advisors are asking: Wealth managers are becoming more adept at assessing crypto exposure.
- Kaufman remarked that advisors used to debate whether Bitcoin should be included in portfolios.
- Now, they are focused on enhancing risk-adjusted returns and portfolio construction with crypto assets.
- Calamos markets its products as alternatives to conventional portfolio distributions, including broad equities, bonds, and cash.
- Kaufman mentioned that some investors are transitioning from cash-equivalent products to fully protected Bitcoin ETFs that leverage Bitcoin performance without downside risk.
Reading between the lines: The cryptocurrency ETF landscape is shifting beyond basic spot exposure.
- Kaufman indicated that the sector is increasingly categorizing crypto ETF strategies into three main areas: protection, income, and growth.
- Calamos has previously launched auto-callable income ETFs and is considering further crypto-related strategies.
- Other ETF providers are concentrating on generating yields from Bitcoin's volatility through options-based approaches.
- “You no longer have to solely rely on the spot vehicle and endure the fluctuations,” Kaufman remarked.
What comes next: Calamos anticipates that Bitcoin's volatility will continue to be a prominent characteristic of the asset.
- Kaufman expressed his belief that Bitcoin will reach its previous peaks again, despite the current market volatility.
- He argued that the inherent volatility of Bitcoin presents opportunities for structured products and options-based strategies.
- “I believe we are heading higher,” Kaufman concluded.
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