Calamos bets protected Bitcoin ETFs can outlast crypto market swings

CoinDesk News Share Share this article Copy link X icon X (Twitter) LinkedIn Facebook Email Calamos bets protected Bitcoin ETFs can outlast crypto market swings As more than $1 billion exited spot Bitcoin ETFs last week, Calamos says investors are rotating into Bitcoin products with built-in downside protection. By AI Boost | Edited by Jennifer Sanasie May 28, 2026, 10:03 p.m. 2 min read Make preferred on Latest developments: Calamos says its protected Bitcoin ETFs are attracting inflows even as spot Bitcoin ETFs see redemptions. Matt Kaufman, head of ETFs at Calamos, said the firm saw roughly $10 million to $15 million in inflows over the past several weeks. Kaufman said advisors are increasingly looking for Bitcoin exposure that reduces volatility and downside risk. The firm offers three versions of its protected Bitcoin ETFs, including products with full downside protection and others with 10% or 20% downside risk. “You can get upside of Bitcoin with no downside risk,” Kaufman said. Kaufman joined CoinDesk's Jennifer Sanasie on Public Keys. How it works: Calamos structures the products using Treasuries and options tied to Bitcoin-linked indexes. Kaufman said the firm allocates roughly 90% of assets into Treasuries to build downside protection. The remaining budget is used to buy Bitcoin-linked call spreads through FLEX options. Calamos created its own Bitcoin-linked index and listed FLEX options tied to that index after the launch of spot Bitcoin ETF options. The products are offered in quarterly structures as well as laddered versions designed for model portfolios. What advisors are asking: Wealth managers are becoming more sophisticated in how they evaluate crypto exposure. Kaufman said advisors previously focused on whether Bitcoin belonged in portfolios at all. Now, advisors are asking how to improve risk-adjusted returns and portfolio construction using crypto exposure. Calamos positions its products as alternatives to traditional portfolio allocations, including broad equities, bonds and cash. Kaufman said some investors are moving from cash-like products into fully protected Bitcoin ETFs tied to Bitcoin performance but without downside exposure. Reading between the lines: The crypto ETF market is evolving beyond simple spot exposure. Kaufman said the industry is increasingly dividing crypto ETF strategies into three categories: protection, income and growth. Calamos previously launched auto-callable income ETFs and is exploring additional crypto-related strategies. Other ETF issuers have focused on generating yield from Bitcoin volatility through options-based products. “You don’t just have to sit in the spot vehicle anymore and ride out those waves,” Kaufman said. What comes next: Calamos expects Bitcoin volatility to remain a defining feature of the asset. Kaufman said he expects Bitcoin to revisit previous highs despite recent market turbulence. He argued Bitcoin’s volatility profile creates opportunities for structured products and options-based strategies. “I think we’re going higher,” Kaufman said. AI Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards . For more information, see CoinDesk's full AI Policy . More For You Bitwise bets Hyperliquid could power future finance as HYPE ETFs gain traction By AI Boost | Edited by Jennifer Sanasie 3 hours ago Bitwise says investor demand for Hyperliquid exposure is surging as new HYPE ETFs launch. Read full story Latest Crypto News Crypto trading firm FalconX confidentially files with SEC for IPO, hires bankers 2 hours ago Why the Ethereum Foundation is suddenly again at the center of crypto’s culture war 2 hours ago Tether's U.S.-focused stablecoin grows over 500% in a month, but still lags main rivals 3 hours ago Bitwise bets Hyperliquid could power future finance as HYPE ETFs gain traction 3 hours ago Hyperliquid's pre-IPO SpaceX contracts suffers 45% flash crash, liquidating $1.5 million 4 hours ago UniCredit warns Europe may struggle to contain crypto-bank crisis under MiCA rules 5 hours ago Top Stories Bitcoin pinned below $73,000 despite potential U.S.-Iran deal news 6 hours ago What's next as hot money cycle has gone from crypto to gold to AI to memory 8 hours ago Asset manager Grayscale delays IPO plans as crypto listing boom loses steam 8 hours ago Toddlers learn by falling: Why DeFi's $20 billion TVL drop is just a market stress-test 5 hours ago 'Debasement trade’ falls out of favor as inflation fears cool, JPMorgan says 8 hours ago Bitcoin drops below $73,000 as U.S. strikes on Iran spark $1 billion liquidations 17 hours ago