Calamos Sticks to Bitcoin ETFs, Avoids Ethereum Due to Hedging Concerns
Investment firm Calamos, which manages $41.3 billion in assets, is staying firmly in the Bitcoin ETF space, opting not to expand into Ethereum-based products—at least for now.
The company made its crypto debut earlier this year with the launch of three “protected” Bitcoin ETFs, designed to help investors navigate BTC’s price volatility. Since their launch, these funds have attracted over $100 million, primarily from financial advisors.
Despite the success, Calamos has no immediate plans to introduce Ethereum-focused products, said Matt Kaufman, the firm’s head of ETFs, in an interview with CoinDesk.
“Ethereum doesn’t really meet our criteria for effectively hedging exposure,” Kaufman explained. “It lacks liquidity, and there are no options on Ethereum ETPs. If those factors change, we might explore it, but right now, it’s not on our radar.”
By contrast, other major firms have quickly moved from Bitcoin to Ethereum products. BlackRock, for example, filed for its spot Bitcoin ETF (IBIT) in June 2023 and applied for an Ethereum ETF just five months later.
A Focus on Structured Bitcoin ETFs
Calamos’ three Bitcoin ETFs—the Bitcoin Structured Alt Protection ETF (CBOJ), the Bitcoin 90 Series Structured Alt Protection ETF (CBXJ), and the Bitcoin 80 Series Structured Alt Protection ETF (CBTJ)—offer investors downside protection of 80-100%, with upside caps ranging from 10% to 55%.
These funds achieve their structured protection by utilizing a mix of U.S. Treasuries and options on the CBOE Bitcoin US ETF Index. While the Cboe Exchange has filed to list options tied to Ethereum ETFs, the SEC has yet to approve them, with a final decision expected in May.
No Plans for Meme Coins
One asset class Calamos won’t be touching? Meme coins.
“We’re risk managers—we build things that we know will work,” Kaufman said. “I have no opinion on meme coins, but it’s not something I would ever consider launching.”
Kaufman also commented on the rise of meme coin ETF applications, emphasizing that investors need to take responsibility for their choices. “We live in America—you have to know what you own. Freedom gives you choice, but with choice comes responsibility,” he said.
