The $41 billion investment firm is set to focus exclusively on a Bitcoin ETF as a more reliable option.
The investment firm and exchange-traded fund (ETF) provider launched three secure Bitcoin ETFs earlier this year, but it will not create similar products for Ethereum.
Helen Brown | Edited by Nikhilesh De , 25 Mar 2025 18:43 UTC
What you need to know:
- Calamos has raised over $100 million for its three Bitcoin ETFs, but has no immediate plans to develop Ethereum-based products.
- The company points to the lack of liquidity for Ethereum and the ability to effectively hedge as the main obstacles to ETH supply.
- Calamos continues to focus on risk management and is excluding meme coin-related products, urging investors to exercise greater caution.
Earlier this year, Calamos entered the cryptocurrency market with the launch of three funds designed to protect investors from Bitcoin (BTC) price fluctuations.
However, the global investment manager, which manages $41.3 billion in assets, has no plans to launch products other than Bitcoin, not even Ethereum (ETH), ETF chief Matt Kaufman told CoinDesk.
Since its launch, Calamos' BTC-secured funds have raised over $100 million from investors, mostly financial advisors.
For most companies looking to enter the cryptocurrency space, launching a Bitcoin product is just the beginning of a broader offering that includes Ethereum products. For example, BlackRock filed to launch its Bitcoin spot ETF (IBIT) in June 2023, and followed that up with Ethereum (ETH) five months later.
“Ethereum doesn’t really meet our criteria for adequately hedging that risk,” he said. “It’s an illiquid asset and there are no options on the Ethereum ETP, so if the conditions are right we’ll look at that, but it’s not on our radar right now.”
The Calamos Bitcoin Structured Alt Protection ETF (CBOJ), Calamos Bitcoin 90 Series Structured Alt Protection ETF (CBXJ), and Calamos Bitcoin 80 Series Structured Alt Protection ETF (CBTJ) provide investors with 80-100% downside protection with 10-55% upside potential.
This is achieved through a combination of Treasury bonds and options on the CBOE Bitcoin US ETF index. Although Cboe Exchange has applied to list options linked to the Ether ETF, the Securities and Exchange Commission (SEC) delayed the deadline to approve or reject the product in January. However, the SEC will have to adhere to the final deadline in May.
Another asset class Calamos is unlikely to ever get involved in is meme coins, Kaufman said. “We’re risk managers, so we build things that we know will work,” he added. “I don’t have an opinion on meme coins from that perspective, but I would never do that.”
Kaufman believes the recent surge in meme coin ETF filings highlights the need for investors to do their due diligence. “We live in America, and you have to know what you own. Freedom comes with choice, and with choice comes responsibility,” he concluded.
