Latest developments: Calamos says its protected Bitcoin ETFs are attracting inflows even as spot Bitcoin ETFs see redemptions.
- Matt Kaufman, head of ETFs at Calamos, said the firm saw roughly $10 million to $15 million in inflows over the past several weeks.
- Kaufman said advisors are increasingly looking for 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.
- Kaufman joined CoinDesk’s Jennifer Sanasie on Public Keys.
How it works: Calamos structures the products using Treasuries and options tied to Bitcoin-linked indexes.
- Kaufman said the firm allocates roughly 90% of assets into Treasuries to build downside protection.
- The remaining budget is used to buy Bitcoin-linked call spreads through FLEX options.
- Calamos created its own Bitcoin-linked index and listed FLEX options tied to that index after the launch of spot Bitcoin ETF options.
- The products are offered in quarterly structures as well as laddered versions designed for model portfolios.
What advisors are asking: Wealth managers are becoming more sophisticated in how they evaluate crypto exposure.
