Calamos Takes a Cautious Approach to Crypto
Earlier this year, Calamos Investments made its foray into the cryptocurrency market by launching three unique funds aimed at shielding investors from the notorious volatility of Bitcoin (BTC) prices. With over $41.3 billion in assets under management, the firm is exercising caution when it comes to expanding its crypto offerings.
Focus on Bitcoin: No Plans for Ethereum or Other Cryptocurrencies
In a recent interview with CoinDesk, Matt Kaufman, the head of ETFs at Calamos, emphasized that the firm does not intend to introduce any products beyond Bitcoin at this time, including Ethereum (ETH). This stance sets Calamos apart from many other financial firms that often quickly branch out into Ethereum-based products following their Bitcoin launches.
Successful Launch of Bitcoin Protected Funds
Since their debut, Calamos’ protected Bitcoin funds have attracted significant interest, with over $100 million raised from investors, primarily financial advisors. The firm’s approach combines a focus on risk management with innovative financial products designed to meet the needs of cautious investors.
Understanding the Structure of Calamos’ Bitcoin ETFs
The Calamos Bitcoin Structured Alt Protection ETF (CBOJ), along with its 90 Series (CBXJ) and 80 Series (CBTJ) counterparts, provide investors with a safety net—offering 80-100% downside protection while capping upside potential at 10-55%. This balance is achieved through a strategic investment in U.S. Treasuries and options tied to the CBOE Bitcoin US ETF Index.
Challenges with Ethereum and Options Trading
Kaufman explained that Ethereum does not currently align with Calamos’ criteria for hedging exposure due to its lack of liquidity and the absence of options on Ethereum ETPs. He stated, “If those check boxes start to get built, we’ll explore it, but right now it’s not on our radar.” The firm is closely monitoring developments in the market, including the potential for options tied to Ether ETFs, though the Securities and Exchange Commission (SEC) has delayed the approval of such products until May.
Avoiding Meme Coins: A Commitment to Risk Management
In addition to steering clear of Ethereum, Kaufman indicated that Calamos is unlikely to venture into the realm of meme coins. “We’re a risk manager, so we build things we know will work,” he explained. His position reflects a commitment to maintaining a disciplined investment strategy.
The Importance of Due Diligence in Investment Choices
Kaufman also highlighted the recent surge in applications for meme coin ETFs, underscoring the necessity for investors to conduct thorough research before making investment decisions. “We live in America; you have to know what you own,” he stated. This sentiment emphasizes the responsibility that comes with the freedom to choose investments in the ever-evolving cryptocurrency landscape.
