Matt Kaufman, head of ETFs at Calamos, says the firm's protected Bitcoin ETFs are attracting inflows-roughly $10 to $15 million in recent weeks-even as more than $1 billion exits spot Bitcoin ETFs. Kaufman notes advisors are increasingly seeking Bitcoin exposure that reduces volatility and downside risk.
The firm offers three versions of its protected Bitcoin ETFs, including products with full downside protection and others with 10% or 20% downside risk. "You can get upside of Bitcoin with no downside risk," Kaufman said.
Calamos structures the products using Treasuries and options tied to Bitcoin-linked indexes. About 90% of assets go into Treasuries to build downside protection, with the remainder used to buy Bitcoin-linked call spreads through FLEX options. Calamos created its own Bitcoin-linked index after the launch of spot Bitcoin ETF options.
Kaufman says the crypto ETF market is evolving beyond simple spot exposure, with strategies dividing into protection, income, and growth. He expects Bitcoin volatility to remain a defining feature but believes Bitcoin will revisit previous highs: "I think we're going higher."