Considering Secure Bitcoin ETFs to Activate Cash
The recent interest rate cut by the Federal Reserve has left investors and advisors contemplating where to allocate their cash. As interest rates decrease, the returns on money market funds are diminishing, leading many to explore alternative investment opportunities. Traditional asset classes like equities and fixed income may not seem as reliable in the current macroeconomic environment, prompting investors to seek out options that offer diversification and potential returns unaffected by market cycles.
One often overlooked choice is investing some cash in bitcoin. Bitcoin has historically shown a low correlation with both equities and fixed-income markets, making it an appealing option for diversifying a portfolio. While bitcoin investments can be riskier compared to traditional money market funds, Calamos Investments offers a solution. With their expertise in risk-managed alternative solutions, Calamos has recently introduced a range of bitcoin strategies that provide a more stable risk profile than direct exposure to bitcoin.
Among these strategies is the Calamos Bitcoin Structured Alt Protection ETF – July (CBOY), which guarantees complete capital protection over a one-year period, minus fees and expenses. Given bitcoin’s volatile price movements, the assurance of protection against downside risk is an attractive feature for investors. Despite the downside protection, CBOY still offers significant upside potential, with an upside cap of approximately 8% as of September 4, 2025. This cap allows investors in CBOY to benefit from bitcoin’s positive price momentum while shielding them from potential losses.
CBOY presents itself as a viable alternative for individuals looking to shift their cash from money market funds. The fund’s emphasis on protecting capital ensures that investors are shielded from adverse shifts in bitcoin’s price trajectory. The options overlay used by CBOY also provides access to long-term returns during periods of upward momentum in bitcoin’s price. By transitioning sidelined cash into a fund like CBOY, investors position themselves for potential long-term success.
It is essential to carefully consider a fund’s investment objectives, risks, charges, and expenses before investing. The prospectus and summary prospectus contain crucial information that should be reviewed diligently before making investment decisions. The Funds aim to track the positive price return of the CME CF Bitcoin Reference Rate – New York Variant (“BRRNY”) without investing directly in bitcoin. Instead, they utilize options tied to underlying exchange-traded products (“Underlying ETPs”) to achieve their investment objectives over a one-year period.
Investing in the Funds carries risks, and there is a possibility of losing money. The Funds do not guarantee achieving their investment objectives, and investors should be prepared for potential losses. As with any investment, there are market trading risks involved, and investors should be aware of the specific risks associated with each Fund. An investment in the Funds is subject to market volatility, and there is no assurance of success in achieving the Target Outcome. Risks include authorized participation concentration risk, capital protection risk, and capped upside risk, among others. Investors should be aware of these risks and fully understand the implications of investing in the Funds.
In conclusion, diversifying cash holdings through a protected bitcoin ETF like CBOY offers investors the opportunity to balance risk and return amidst uncertain market conditions. By exploring alternative investment options that provide both capital protection and growth potential, investors can navigate the current economic landscape with confidence and strategic foresight.
