Asset management firm Calamos Investments has announced the upcoming launch of the world's first 100% downside-protected Bitcoin exchange-traded fund (ETF), named CBOJ. Scheduled to debut on the Chicago Board Options Exchange (CBOE) on January 22, 2025, this innovative ETF aims to provide investors with a unique opportunity to gain exposure to Bitcoin while minimizing risk.

The CBOJ ETF will utilize a combination of U.S. Treasury bonds and options tied to the CBOE Bitcoin U.S. ETF Index, allowing for regulated access to Bitcoin within a risk-controlled framework. With a low expense ratio of 0.69%, the ETF offers complete downside protection if held through its designated outcome period, which runs from January 22, 2025, to January 31, 2026. However, this protection comes with a cap on potential upside gains, which will be determined and announced on the launch date.

John Koudounis, President and CEO of Calamos, expressed excitement about this groundbreaking product, emphasizing its alignment with the firm's history of risk management innovations. The introduction of CBOJ is expected to attract investors who have been hesitant to enter the volatile Bitcoin market due to concerns about significant price fluctuations.