Calamos proposes Bitcoin ETF in a "ladder" model to protect investors

Calamos Investments – an asset management firm with over 40 billion USD – has just submitted an application to the Securities and Exchange Commission (SEC) to establish a "ladder" Bitcoin ETF aimed at cautious investors looking to access the digital asset market while still maintaining layers of risk protection.

This is the latest effort in a wave of asset managers looking to offer products that are exposed to Bitcoin but have volatility control mechanisms in place. According to Fidelity's analysis, Bitcoin is 3 to 4 times more volatile than major stock indices. Earlier in January, Calamos launched three "protected" Bitcoin ETFs with different levels of risk limits.

Calamos' new ETF will invest in options contracts related to the performance of the top five Bitcoin ETFs, including:

• BlackRock's iShares Bitcoin Trust
• Grayscale Bitcoin Mini Trust
• Bitwise Bitcoin ETF
• Fidelity Wise Origin Bitcoin Fund
• ARK 21Shares Bitcoin ETF

(options) options contracts are financial instruments that allow investors the right – but not required – to buy or sell the underlying asset before or at maturity. They are often used to hedge risks and minimize losses.

Risk Protection Mechanism in Funds

According to the filing submitted to the SEC, Calamos stated that this ETF will trigger a protective mechanism when losses exceed 20%. In addition to options, the fund may also allocate into cash and U.S. Treasury bonds, depending on the portfolio management strategy.

For example, if the "floor level" is set at 20% and the spot price of Bitcoin decreases by 8% during the investment period, the investor will not receive protection as the decrease is not sufficient. Conversely, if the price of Bitcoin decreases by 32%, the "floor" mechanism is designed to limit losses to only 20%.

Calamos' three previous "protection" ETFs – launched in January 2025 – also operate under a similar mechanism with different expected returns and risk limits.

Overview of the Bitcoin ETF Market

Current Bitcoin ETFs primarily provide exposure to the world's largest digital currency by holding actual Bitcoin. For example, BlackRock currently owns 716,500 BTC valued at approximately 85.4 billion USD. This volume is typically stored through custodial units, such as the contract between BlackRock and Anchorage.

Since being approved by the SEC in January 2024, spot Bitcoin ETF funds have successfully launched on Wall Street. As of last Tuesday, the total net inflow into these funds reached 53.1 billion USD, according to sosovalue.com. The total net assets held by the funds amounted to 150 billion USD, equivalent to 6.5% of the total Bitcoin market capitalization.

The five ETFs that Calamos is planning to monitor currently account for a total of $124.3 billion in assets, or 83.1% of the entire Bitcoin ETF market.

Thạch Sanh