Calamos Launches Innovative Bitcoin Investment Strategy
Global investment firm Calamos has introduced a new way to invest in Bitcoin, aiming to reduce its risks. On June 7, calamos unveiled its âprotected Bitcoinâ strategy. this approach is designed to limit both the potential gains and losses from Bitcoin.
While Bitcoin has reached a $2 trillion valuation, many institutional investors still see it as too volatile. Consequently, they usually allocate only 1â2% of their portfolios to BTC. Calamos has developed a strategy that combines Bitcoin futures with U.S. Treasuries.
calamos buys zero-coupon U.S. Treasury bonds that mature at the end of the year. These Treasuries act as a protective floor, limiting losses to 0%, 10%, or 20%, depending on the risk tier. The firm also buys call options on the Bitcoin Index to capture potential gains.To fund these, it sells out-of-the-money call options, capping the upside between 25% and 60%. Each risk-return tier is benchmarked to familiar asset classes. The 100% protected Bitcoin tier mirrors the risk profile of Treasuries, offering capital preservation with virtually no downside risk. The second tier is comparable to gold or choice assets,while the third tier aligns with equities.
Calamos believes this structured approach coudl enhance Bitcoinâs appeal relative to traditional assets. However, timing is critical. Traders must hold positions to maturity to benefit from the downside protection; early exits could result in loss of principal. While rare, another risk includes potential sovereign debt default, which the firm notes is highly unlikely.