In today’s volatile financial landscape, investors and advisors alike are searching for innovative ways to gain exposure to high-potential assets—like Bitcoin—while managing downside risk. Calamos Investments, a firm with deep roots in alternatives and options-based strategies, has stepped into this space with a suite of protected Bitcoin ETFs designed to offer controlled access to cryptocurrency gains without the full force of its notorious volatility.
Founded in the 1970s by John Calamos, the firm pioneered the use of options as a risk management tool for traditional equity portfolios. That same philosophy now extends into the digital asset realm. With over $16 billion in alternatives under management—most of which are tied to options-driven strategies—Calamos is leveraging decades of expertise to bring structured protection to Bitcoin investing.
👉 Discover how structured ETFs can balance risk and reward in today’s crypto market.
The Rise of Options-Based ETFs
Options-based ETFs have seen a surge in popularity among financial advisors, especially amid uncertain macroeconomic conditions and heightened market volatility. These products allow investors to benefit from market upside while implementing built-in downside protection—a compelling value proposition in an era where portfolio resilience is paramount.
At a recent etf.com webinar on advisor adoption trends, Matt Kaufman, Senior Vice President and Head of ETFs at Calamos Investments, highlighted growing client demand for Bitcoin exposure. "We’re seeing nearly 100% of advisors being asked about Bitcoin," Kaufman noted. "I think we’re in the very early innings of providing exposure to Bitcoin in a portfolio."
This demand isn't just theoretical—it's driving real product innovation. Calamos responded by launching a series of protected Bitcoin ETFs that blend crypto upside participation with defined risk parameters, making them suitable for conservative investors and tactical allocators alike.
Understanding Calamos Protected Bitcoin ETFs
For investors hesitant about direct Bitcoin ownership due to extreme price swings, Calamos offers three distinct ETFs—each providing varying levels of downside protection over a one-year outcome period. These funds use options-based structures to cap losses while still allowing participation in Bitcoin’s appreciation, up to a certain limit.
CBTA: 80% Downside Protection Bitcoin ETF
The Calamos Bitcoin 80 Series Structured Alt Protection ETF – April (CBTA) is designed for investors seeking meaningful exposure to Bitcoin’s upside with a manageable risk ceiling.
Key features:
- Tracks Bitcoin’s positive price movements up to a predefined cap.
- Limits losses to 20% over the one-year outcome period (before fees and expenses).
- Ideal for those who want growth potential but wish to avoid catastrophic drawdowns.
Even if Bitcoin experiences a steep decline—say, 50% or more—the investor’s loss within CBTA is contractually capped at 20%. This makes it a strategic choice for moderate-risk portfolios looking to dabble in digital assets.
CBXA: 90% Downside Protection Bitcoin ETF
The Calamos Bitcoin 90 Series Structured Alt Protection ETF – April (CBXA) takes protection a step further. It allows investors to participate in Bitcoin’s gains while shielding them from the vast majority of potential losses.
Key features:
- Offers 90% protection against price declines between 10% and 100%.
- Maximum loss limited to 10% over the outcome period (before fees).
- Balances growth participation with strong capital preservation.
CBXA suits risk-averse investors who still want to stay engaged with the crypto market. It’s particularly useful for clients who fear missing out on rallies but dread the emotional toll of steep corrections.
CBOA: 100% Downside Protection Bitcoin ETF
The Calamos Bitcoin Structured Alt Protection ETF – April (CBOA) represents the most conservative option in the lineup. It provides full downside protection over the one-year period, ensuring that investors won’t lose principal due to Bitcoin price drops.
Key features:
- Matches Bitcoin’s positive returns up to a defined cap.
- Protects against 100% of losses during the outcome period (before fees).
- Best for capital preservation-focused strategies with selective upside capture.
While investors give up unlimited gains, they gain peace of mind knowing their investment is fully shielded from market crashes. This structure appeals to retirees, conservative allocators, or anyone using crypto exposure as a tactical satellite holding.
👉 Explore how outcome-oriented ETFs can enhance portfolio stability.
How These ETFs Work: A Closer Look
These protected Bitcoin ETFs operate using structured notes and derivative overlays—primarily options contracts—that create defined payoff profiles. Each fund resets annually (or per series), offering predictable risk-return parameters for the duration of the outcome period.
It's important to note that returns vary depending on when an investor enters the cycle:
- Investors who buy at the start of the outcome period are positioned to capture the full range of potential returns.
- Those entering mid-cycle may experience different upside potential and time decay effects, as the embedded options approach expiration.
As Kaufman explained: “About half the money comes in on day one, and they hold for the outcome period. Other folks will buy in the middle; they’ll see opportunities for upside capture, and as they’ve captured [gains], then they’ll move into some other [series].”
This flexibility allows advisors to rotate between series based on market outlook and client goals—a dynamic strategy not typically available in traditional ETFs.
Core Keywords and Strategic Relevance
The key concepts driving interest in these products include:
protected Bitcoin ETFs, options-based ETFs, downside protection, structured ETFs, Bitcoin risk management, outcome-based investing, crypto volatility solutions, and advisor adoption.
These keywords reflect both investor sentiment and industry trends. As digital assets become more mainstream, demand grows for regulated, transparent, and risk-aware investment vehicles. Calamos’ approach directly addresses this need by combining institutional-grade derivatives with crypto exposure.
Frequently Asked Questions
Q: How do protected Bitcoin ETFs differ from traditional Bitcoin ETFs?
A: Traditional spot or futures-based Bitcoin ETFs offer direct exposure to price movements—both up and down. Protected ETFs, however, cap losses while limiting gains, providing a more balanced risk profile through options-based structuring.
Q: Can I lose money in a 100% protected ETF like CBOA?
A: While CBOA protects against 100% of Bitcoin-related losses during the outcome period, investors may still incur losses due to fees or if shares are bought above net asset value. Additionally, gains are capped, so opportunity cost exists if Bitcoin surges past the limit.
Q: Are these ETFs suitable for long-term holding?
A: These are outcome-period-driven funds best held through their full cycle (typically one year). They are not designed as perpetual holdings but rather as tactical allocations aligned with market views and risk tolerance.
Q: Do these funds hold actual Bitcoin?
A: No. These ETFs do not hold physical or digital Bitcoin. Instead, they use derivatives such as swaps and options linked to Bitcoin’s price performance.
Q: How often do the outcome periods reset?
A: Each series has a defined outcome period—usually one year—after which a new series may launch. Investors should monitor roll schedules to maintain continuous exposure.
👉 Learn how next-generation ETF structures are reshaping crypto investing.
Final Thoughts
Calamos’ protected Bitcoin ETFs represent a significant evolution in how investors can engage with digital assets. By offering tiered levels of downside protection—80%, 90%, or 100%—these funds empower advisors to customize exposure based on client risk profiles.
While they sacrifice unlimited upside, the trade-off is reduced volatility and increased confidence during turbulent markets. In an environment where fear of loss often outweighs excitement over gain, these structured solutions provide a rational middle ground.
For financial professionals guiding clients through the complexities of crypto investing, understanding the mechanics, timing, and strategic uses of these ETFs is essential. Whether used as core satellite holdings or short-term tactical plays, Calamos’ innovative offerings demonstrate how traditional risk management principles can be successfully applied to modern asset classes.