The investment landscape is evolving rapidly, and Calamos Investments is at the forefront with a groundbreaking innovation in digital asset exposure. The firm has announced the expansion of its Protected Bitcoin ETF Suite, introducing two new exchange-traded funds—CBXJ (90% downside protection) and CBTJ (80% downside protection)—set to launch on February 4, 2025. This follows the debut of CBOJ, the world’s first 100% downside protected Bitcoin ETF, launching January 22, 2025.
This suite represents a major leap forward for risk-managed crypto investing, offering investors structured exposure to Bitcoin’s upside while limiting potential losses—all within the transparency, liquidity, and tax efficiency of the ETF framework.
A New Era of Risk-Managed Bitcoin Investing
Bitcoin has cemented its place as a legitimate asset class, but its volatility remains a barrier for many conservative or risk-averse investors. Calamos addresses this challenge head-on with a tiered protection model that gives investors control over their risk-reward profile.
“This enhancement builds upon the announcement of CBOJ, the world's first 100% Protected Bitcoin ETF, and continues our tradition of bringing innovative options-based and risk-managed investment solutions to the marketplace,” said John Koudounis, President and CEO of Calamos.
The three-tiered structure allows investors to choose their preferred balance between downside protection and upside potential:
- CBOJ: 100% downside protection with an estimated cap range of 10%–11.5%
- CBXJ: 90% downside protection with an estimated cap range of 28%–31%
- CBTJ: 80% downside protection with an estimated cap range of 50%–55%
These caps are not guarantees but estimates based on current market conditions during a sampling period from January 2 to January 17, 2025. The final cap rates will be locked in at the end of trading on each fund’s launch date.
👉 Discover how structured ETFs can help you invest in Bitcoin with controlled risk today.
How the Protected Bitcoin ETFs Work
Each fund in the suite is designed to track the positive price return of Spot Bitcoin—as measured by the CME CF Bitcoin Reference Rate—up to a predetermined cap over a one-year outcome period. Importantly:
- The funds do not invest directly in Bitcoin.
- Instead, they use a combination of U.S. Treasuries and options on the CBOE Bitcoin US ETF Index to simulate Bitcoin returns.
- This approach provides regulated, tax-efficient access without counterparty credit risk.
- The strategy resets annually, giving investors a fresh opportunity each year to lock in new protection levels and cap rates.
Investors must hold shares from the first day of the outcome period through maturity to achieve the target outcome. Purchasing after launch increases risk—especially if the fund’s NAV has already risen significantly—potentially exposing latecomers to full principal loss even within a protected structure.
Designed for Investor Flexibility and Clarity
All three ETFs—CBOJ, CBXJ, and CBTJ—will be listed on Cboe Global Markets, with new series introduced quarterly. This systematic rollout ensures continuous access to fresh outcome periods and updated market pricing.
Each fund features:
- A uniform 0.69% annual expense ratio
- Management by Co-CIO Eli Pars and the Calamos Alternatives Team
- A shared reference asset: the CBOE Bitcoin US ETF Index
- Outcome periods ending January 30, 2026 (launched Jan/Feb 2025)
This modular design mirrors Calamos’ successful Structured Protection ETF series launched in 2024, which offered downside protection on major equity indices like the S&P 500®, Nasdaq-100®, and Russell 2000®. Now, that proven methodology is being applied to digital assets.
“Bitcoin’s acceptance as an investible asset is growing, yet concerns about its volatility remain,” said Matt Kaufman, Head of ETFs at Calamos. “Our suite offers a menu of straightforward solutions designed to provide true risk management for this unique asset.”
👉 Learn how to balance crypto upside with downside safeguards using modern financial tools.
Core Investment Benefits
✅ Risk-Controlled Exposure
Investors gain access to Bitcoin’s growth potential without full exposure to its drawdowns. With protection levels ranging from 80% to 100%, these ETFs cater to varying risk tolerances.
✅ Transparent Structure
As SEC-registered ETFs, they offer daily transparency, regulatory oversight, and no counterparty risk—unlike many private or unregulated crypto products.
✅ Tax Efficiency
Held in taxable accounts, ETFs generate more favorable tax treatment than direct crypto holdings or private trusts.
✅ Liquidity & Accessibility
Traded on major exchanges like any stock, these funds allow easy entry and exit during market hours.
Frequently Asked Questions (FAQ)
Q: What does "downside protection" mean in practice?
A: If Bitcoin drops 50% during the outcome period, a 100% protected fund (CBOJ) would limit your loss to near zero (before fees). A 90% protected fund (CBXJ) would limit it to ~5%, and an 80% protected fund (CBTJ) to ~10%.
Q: Can I lose money even with downside protection?
A: Yes. Protection only applies if you hold from day one through maturity. Buying after launch—especially after a rally—can result in significant or total loss if Bitcoin declines.
Q: How is the cap rate determined?
A: The final cap is set at the close of trading on the fund’s first day. Investors who buy early lock in both protection and the capped upside.
Q: Do these funds pay dividends?
A: No. Returns are generated solely through capital appreciation up to the cap.
Q: Are these funds suitable for retirement accounts?
A: Yes, they can be held in IRAs or other tax-advantaged accounts, making them ideal for long-term investors seeking crypto exposure with discipline.
Q: Why use options instead of holding Bitcoin directly?
A: Options allow precise risk structuring—capping both losses and gains—while maintaining regulatory compliance and avoiding custody risks associated with direct ownership.
Built on Proven Expertise
Calamos brings over $40 billion in assets under management and deep experience in alternatives and structured strategies. With more than $18 billion in liquid alternatives as of December 31, 2024, the firm has established credibility in complex, rules-based investing.
Its Structured Protection ETF series has already demonstrated strong adoption among financial advisors and institutional clients—indicating solid demand for similar offerings in the digital asset space.
👉 See how professional-grade risk management can transform your approach to volatile markets.
Final Thoughts
The launch of CBXJ and CBTJ marks a pivotal moment in mainstream crypto adoption. By combining institutional-grade risk controls with accessible ETF mechanics, Calamos empowers investors to engage with Bitcoin on their own terms.
Whether you're a conservative investor seeking minimal volatility or a moderate-risk participant looking for amplified upside with partial protection, this tiered suite offers a tailored solution.
As digital assets continue maturing, products like these will bridge the gap between innovation and prudence—making Bitcoin investing safer, smarter, and more inclusive than ever before.
Core Keywords: Bitcoin ETF, downside protection, risk-managed investing, structured ETF, CBOJ, CBXJ, CBTJ, upside cap