The global investment management firm plans to launch two similar funds in February.

Jan 22, 2025, 6:21 p.m. UTC

A new exchange-traded fund (ETF) by global investment management firm Calamos that promises to protect investors from the volatility in bitcoin’s price hit the market on Wednesday.

CBOJ, the first of three ETFs, provides investors with 100% downside protection while offering 10% to 11.5% upside potential over a one-year period, according to a press release. A representative of Calamos told CoinDesk that as of 12:11 p.m. ET, the ETF traded roughly 635,714 shares.

The other two funds, CBXJ and CBTJ, set to launch on Feb. 4, will provide 90% and 80% protection, respectively, with capped upside of 28% to 30% and 50% to 55%.

Downside protection is achieved through investments in U.S. Treasuries and options on Bitcoin index derivatives. The upside cap is set annually, and the period is reset every year with new terms.

In simple terms, if an investor bought $100 worth of shares in the ETF, Calamos would put a percentage of that in Treasury bonds that would grow back to $100