Markets, Bitcoin The funding agency and supplier of exchange-traded funds (ETFs) launched three protected bitcoin ETFs earlier this yr, nevertheless it gained’t do the identical for Ethereum.
Earlier this yr, Calamos made its crypto debut with the launch of not one however three funds designed to guard traders from the volatility in bitcoin’s (BTC) worth.
But the worldwide funding administration agency, which handles $41.3 billion in belongings, is way from launching another merchandise past bitcoin, — even Ethereum (ETH), mentioned its head of ETFs Matt Kaufman in an interview with CoinDesk.
Since their inception, Calamos’ protected BTC funds have attracted over $100 million from traders, which primarily embrace monetary advisors.
For most corporations trying to make an entrance into the crypto market, launching a bitcoin product is simply step one in an extended journey that shortly extends to ethereum-based merchandise. BlackRock, for instance, utilized to launch its spot bitcoin ETF (IBIT) in June 2023 and 5 months later, did the identical for Ethereum (ETH).
“Ethereum doesn’t really meet our criteria for being able to effectively hedge that exposure,” he mentioned. “It’s not a liquid asset, there’s no options on Ethereum ETPs so if those check boxes start to get built, we’ll explore it but right now it’s not on our radar.”
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) supply traders 80-100% draw back safety with an upside cap fee of 10-55%.
This is achieved by utilizing a mix of Treasuries and choices on the CBOE Bitcoin US ETF Index. While Cboe Exchange has filed to checklist choices tied to Ether ETFs, the Securities and Exchange Commission (SEC) in January delayed its deadline to approve or deny the product. The Commission should follow the ultimate deadline in May, nonetheless.
Another asset class that Calamos gained’t possible ever contact is meme cash, Kaufman mentioned. “We’re a risk manager, so we build things we know will work,” he mentioned. “From that perspective, I don’t have any opinion on meme coins but it’s not something I would ever do.”
Kaufman believes that the current surge in purposes for meme coin ETFs highlights the truth that traders should do their due diligence. “We live in America, you have to know what you own. Freedom gives you choice and with choice comes responsibility,” he mentioned.
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