Calamos bets protected Bitcoin ETFs can outlast crypto market swings
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 CoinDesks 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.Kaufman said advisors previously focused on whether Bitcoin belonged in portfolios at all.Now, advisors