According to Odaily, Calamos, an asset management company, has submitted an application for a Bitcoin 'Buffer' Exchange Traded Fund (ETF). The ETF aims to provide 100% downside protection for Bitcoin, while also utilizing FLEX options to capture some of the upside. At this point, it is not clear whether the application is for a spot or futures type.
Eric Balchunas, a Bloomberg ETF analyst, made the announcement on platform X. The specifics of the application, including whether it is for a spot or futures type, remain unclear. The proposed ETF is designed to offer investors a way to gain exposure to Bitcoin with a level of protection against downside risk. The use of FLEX options suggests that the ETF will also seek to benefit from potential increases in the value of Bitcoin.
This move by Calamos represents a growing trend among asset management companies to explore the potential of cryptocurrencies as an investment option. The introduction of a 'Buffer' ETF could provide a safer way for investors to enter the volatile cryptocurrency market. However, the specifics of the ETF, including the exact mechanisms it will use to provide downside protection and capture upside potential, are yet to be revealed.