The investment management company Reeds was preparing to launch the first ETF on the Bitcoin (CRYPTO: BTC), which will benefit from a 100% downside protection mechanism, according to a press release published on Monday.
What happened : The ETF will use a mix of Treasury securities and options on the CBOE Bitcoin U.S. ETF Indexan investment avenue that tracks the price returns of U.S.-listed spot Bitcoin ETFs, Calamos said.
The ETF will reset annually and provide investors with a new cap to protect against negative returns from Bitcoin for the next 12 months. This effectively means that investors will have to give up some potential gains in exchange for protection during periods of market declines.
The ETF is expected to list on the CBOE on January 22 under the ticker CBOJ. CBOJ units can be held indefinitely.
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These ETFs will be very popular on the equity side. CBOJ will be an extension of the ETF series Structured Protection ETF of Calamos, including the Calamos S&P 500 Structured Alt Protection ETF—January (NYSE: CPSY) and the Calamos Russell 2000 Structured Alt Protection ETF—January (NYSE:CPRY), both of which offer 100% downside protection.
Why it matters : The launch of the CBOJ comes at a time when institutional investment in cryptocurrencies has reached record levels.
Global digital asset investment products saw a record flow of $44.2 billion in 2024, nearly four times higher than the previous record of $10.5 billion set in 2021. The introduction of The US spot ETF has been a significant factor in this surge.
Additionally, the success of Bitcoin ETFs is evident through the performance of the iShares Bitcoin Trust ETF.BlackRock IBIT (NASDAQ: IBIT), which became the most successful ETF launch in history. The fund accumulated more than $50 billion in assets under management in its first year.
Price movement : At the time of writing, Bitcoin was trading at $101,696.58, up 2.03% over the past 24 hours, according to data from Benzinga Pro.
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