Calamos, a global investment management firm, launched a new Bitcoin-focused ETF that provides investors with 100% downside protection against Bitcoin's price volatility while offering a 10% to 11.5% upside potential over a year. The ETF utilizes investments in Bitcoin-linked options and Treasury bonds to ensure that investors who purchase $100 of ETF shares will have their investment secured back to $100 in a year, regardless of Bitcoin's price fluctuations. Two additional funds, CBXJ and CBTJ, will be released on February 4, providing 90% and 80% downside protection with capped upside potentials of 28-30% and 50-55%, respectively. The ETFs have a management fee of 0.69%, which is higher than the average fee for U.S.-based ETFs. While this premium is a consideration, it may be justified for those looking for stability in the volatile cryptocurrency market. Analysts note that the structure of this ETF differs significantly from MicroStrategy's convertible bonds, which do not cap upside potential, thus appealing to traditional investors cautious of cryptocurrency risks.

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