Calamos’ Crypto Debut

Earlier this year, Calamos made its crypto debut with the launch of three funds designed to protect investors from the volatility in bitcoin’s (BTC) price.

The global investment management firm, managing $41.3 billion in assets, is not planning any additional products beyond bitcoin, including Ethereum (ETH), according to Matt Kaufman, head of ETFs, in an interview with CoinDesk.

Since their inception, Calamos’ protected BTC funds have attracted over $100 million from investors, primarily financial advisors.

For many firms entering the crypto market, launching a bitcoin product is just the first step before expanding to ethereum-based products. For instance, BlackRock applied for a spot bitcoin ETF (IBIT) in June 2023 and later applied for Ethereum.

Kaufman expressed doubt about Ethereum, stating, “Ethereum doesn’t really meet our criteria for effective hedging. It’s not a liquid asset, and there are no options on Ethereum ETPs. If those criteria are met, we’ll explore it, but it’s not on our radar now.”

The Calamos Bitcoin Structured Alt Protection ETF (CBOJ), Calamos Bitcoin 90 Series Structured Alt Protection ETF (CBXJ), and Calamos Bitcoin 80 Series Structured Alt Protection ETF (CBTJ) offer investors 80-100% downside protection with an upside cap rate of 10-55%. This is achieved through a combination of Treasuries and options on the CBOE Bitcoin US ETF Index.

While the Cboe Exchange has filed to list options tied to Ether ETFs, the SEC delayed its deadline to approve the product until May.

Kaufman noted that meme coins are also off the table for Calamos. “We’re a risk manager, so we build things we know will work. Meme coins are not something I would ever do,” he said.

He believes the surge in applications for meme coin ETFs suggests that investors must conduct their due diligence. “We live in America; you have to know what you own. Freedom gives you choice, and with choice comes responsibility,” he stated.