Calamos Doubles Down on Bitcoin ETFs, Avoids Ethereum Over Liquidity Concerns

Global asset manager Calamos, which oversees $41.3 billion in investments, is staying focused on Bitcoin ETFs and has no immediate plans to launch Ethereum-based products.

Earlier this year, the firm introduced three structured Bitcoin ETFs aimed at providing downside protection for investors wary of crypto volatility. Since their debut, these funds have attracted over $100 million, mainly from financial advisors.

Despite growing interest in Ethereum ETFs across the industry, Calamos remains unconvinced. “Ethereum doesn’t currently meet our criteria for proper hedging,” said Matt Kaufman, head of ETFs at Calamos, in an interview with CoinDesk. “It lacks sufficient liquidity, and there are no options on Ethereum ETPs. If those conditions change, we’d reconsider, but for now, it’s not a priority.”

Other investment giants, such as BlackRock, have pursued both Bitcoin and Ethereum ETFs. BlackRock filed for a spot Bitcoin ETF in June 2023 and applied for an Ethereum ETF five months later.

A Cautious Approach to Crypto Exposure

The firm’s three Bitcoin ETFs—the Calamos Bitcoin Structured Alt Protection ETF (CBOJ), the Calamos Bitcoin 90 Series Structured Alt Protection ETF (CBXJ), and the Calamos Bitcoin 80 Series Structured Alt Protection ETF (CBTJ)—offer between 80% and 100% downside protection, with potential upside caps between 10% and 55%.

These funds use a mix of U.S. Treasuries and options tied to the CBOE Bitcoin US ETF Index to manage risk. While the Cboe Exchange has filed for Ethereum ETF options, the SEC has yet to approve them, with a final decision expected by May.

No Interest in Meme Coins

Calamos also made it clear that meme coins are not part of its strategy.

“We focus on risk management and build products we believe will work,” Kaufman stated. “Meme coins aren’t something we would ever consider.”

Addressing the surge in meme coin ETF applications, Kaufman stressed the importance of investor responsibility. “In America, you have to know what you own. With freedom comes choice, and with choice comes responsibility,” he said.