In a notable shift amidst recent challenges in the cryptocurrency market, Calamos Investments reports a rise in interest for its protected Bitcoin ETFs. This comes as over $1 billion was withdrawn from spot Bitcoin ETFs last week, highlighting a broader trend of investors seeking safer cryptocurrency investments.
Calamos has noted an influx of between $10 million and $15 million into its protected Bitcoin offerings, according to ETF head Matt Kaufman. He attributes this to financial advisors and investors looking for Bitcoin exposure while minimizing volatility. The firm's products include various options that provide complete downside protection or limit risk to 10% or 20%.
To create these ETFs, Calamos employs a strategy involving Treasury securities and options tied to Bitcoin indexes. About 90% of the assets are invested in Treasuries to ensure downside protection, with the remainder allocated to Bitcoin-linked call spreads. This structured approach caters to wealth managers who are now focusing on enhancing risk-adjusted returns in crypto investments.
