Calamos Bitcoin 90 Series Structured Alt Protection ETF – October (CBXO)

Overview

The Calamos Bitcoin 90 Series Structured Alt Protection ETF – October is an innovative exchange-traded fund that seeks to provide investors with strategically targeted exposure to fluctuations in Bitcoin prices, all while incorporating a robust downside protection mechanism. The ETF is tailored to align with the positive price movements of Bitcoin, utilizing the CME CF Bitcoin Reference Rate (New York Variant) as its benchmark. This positioning enables investors to capture potential gains associated with Bitcoin's performance over a defined outcome period of one year. Importantly, the ETF is structured to safeguard capital, capping potential losses to a maximum of 10%, thereby ensuring that investors retain at least 90% of their initial capital investment even amidst significant downturns in Bitcoin value during the period of focus.

Acting as a balanced approach to risk and reward, this ETF caters to market participants interested in Bitcoin exposure while simultaneously seeking risk mitigation strategies. With an initial cap rate established at 23.43% for the October series, it allows for moderate appreciation in alignment with Bitcoin’s fluctuations while effectively capping gains beyond a certain threshold. This strategic architecture lessens the likelihood of adverse outcomes while appealing to those investors who may be wary of Bitcoin's inherent volatility or who desire a means to diversify their portfolios with an asset that has historically exhibited low correlation with traditional equity and fixed income markets, as well as a variety of risk-divergent instruments. The distinctive defined outcome approach characterizes a notable offering in the expanding realm of outcome-based and risk-managed financial products available to investors today.

Products and Services

• Exchange-Traded Fund (ETF): The primary product offered is an ETF that grants targeted exposure to Bitcoin price movements. It operates under a structure designed to mirror the positive returns of Bitcoin, allowing investors to capitalize on its appreciation while employing a built-in protection feature.
• Downside Protection Mechanism: A key service is the robust downside protection that limits the maximum potential loss to 10%. This feature ensures that investors will retain at least 90% of their capital even during sharp declines, providing peace of mind in a volatile market.
• Defined Outcome Approach: The ETF operates on a one-year outcome period, providing investors with clear expectations regarding potential returns and risks, allowing for more strategic investment planning aligned with individual risk preferences.
• Exposure to Bitcoin Price Movements: Investors receive exposure to Bitcoin price movements through the CME CF Bitcoin Reference Rate (New York Variant), facilitating participation in Bitcoin's growth trajectory without direct ownership of the cryptocurrency.
• Targeted Capital Appreciation: The ETF features an initial cap rate of 23.43% for the October series, enabling moderate capital appreciation reflective of Bitcoin's performance while capping gains above a predetermined level, thus aligning with investor goals for balanced risk-reward scenarios.
• Diversification Opportunities: This product offers a valuable addition to diversified portfolios, especially for those seeking assets that historically show low correlation with traditional equities and fixed income, potentially enhancing overall portfolio resilience.