Exploring Safer Ways to Invest in Bitcoin
September 17, 2025
A common dilemma faced by traditional advisors and investors when considering bitcoin exposure is the allocation within their portfolio. Typically, this allocation is kept relatively low, with only about 1%-2% of assets being exposed to the cryptocurrency through a spot bitcoin ETF. The rationale behind this cautious approach is understandable – while bitcoin offers diversification benefits and both short-term and long-term return potential, overextending exposure in a portfolio can expose investors to tail risk and volatility, both prevalent factors in the cryptocurrency market.
The challenge arises when advisors and investors desire to increase their exposure to bitcoin significantly. This can be a precarious situation, given the risks associated with the cryptocurrency market. However, there are ways to tackle this dilemma effectively, and one such method can be found in the adaptability of the ETF wrapper.
The Calamos Bitcoin 90 Series Structured Alt Protection ETF – July (CBXY) offers a unique solution for investors looking to amplify their crypto exposure while managing risk effectively. Using a disciplined options strategy, CBXY provides upside exposure to bitcoin’s price performance up to a predetermined cap. What truly sets CBXY apart is its focus on downside protection, limiting maximum loss to no more than 10% over a one-year period. This emphasis on managing losses can help mitigate bitcoin tail risk and price volatility, offering a secure way to navigate the turbulent cryptocurrency market.
By blending bitcoin upside potential with risk mitigation, CBXY enables investors to expand their 1%-2% allocation into the 3%-10% range effectively. This strategy allows investors to capitalize on bitcoin price rallies while safeguarding against severe downturns. Calamos Investments, known for its alternative investment strategies, continues to introduce innovative funds like CBXY that cater to investors’ evolving needs.
Before committing to any investment, it’s essential to carefully consider the fund’s objectives, risks, charges, and expenses. The prospectus contains crucial information that can help investors make informed decisions. CBXY seeks to mirror the positive price return of the CME CF Bitcoin Reference Rate – New York Variant and protect against losses over a one-year period. However, the target outcome is not guaranteed, and there are inherent risks associated with investing in the fund.
Investing always carries risks, and it’s possible to lose money on any investment. Market volatility can increase the risks associated with any investment, and the specific risks associated with the Calamos Bitcoin ETF, like underlying ETP risk, cap change risk, and liquidity risk, should be carefully considered. Even though the fund aims to offer capital protection and capped upside, there is no guarantee of success, and investors should be prepared for potential losses.
In conclusion, the Calamos Bitcoin 90 Series Structured Alt Protection ETF represents a lower-risk means for investors to increase their bitcoin exposure while safeguarding their portfolios against potential losses. With its unique blend of risk management and upside potential, CBXY offers a compelling solution for investors seeking to navigate the volatile cryptocurrency market efficiently.
