Calamos Investments files for a “laddered” Bitcoin exchange-traded fund (ETF) in the US, aiming to attract cautious crypto investors. This ETF would invest in options contracts referencing the performance of five existing Bitcoin ETFs, aiming to provide downside protection against volatility. Calamos launched three “protected” Bitcoin ETFs in January.

The new Calamos ETF will target downside protection for losses exceeding 20%, using options, cash, and US Treasurys in its portfolio management strategy. The fund’s floor feature aims to limit losses to 20% in case of a decline over the target outcome period. Calamos’s SEC filing provides detailed information on the ETF’s structure and risk management.

Calamos previously launched three “protected” Bitcoin ETFs in January, offering varying degrees of upside potential and downside protection. The overall Bitcoin ETF market has seen significant growth, with cumulative net inflows of $53.1 billion and total assets reaching $150 billion. The five ETFs Calamos aims to track have a combined $124.3 billion in assets, making up 83.1% of all Bitcoin ETF assets.

Bitcoin ETFs typically provide exposure to Bitcoin by backing the funds with actual Bitcoin holdings. For example, BlackRock owns 716.5 BTC valued at around $85.4 billion, stored by custodians like Anchorage. Wall Street’s Bitcoin spot ETFs, approved in January 2024, have been successful, with $53.1 billion in net inflows and $150 billion in total assets, accounting for 6.5% of the Bitcoin market cap.

Read more at Cointelegraph: New Calamos Bitcoin ETF to Use Options Strategy Tied to Five Major BTC Funds