Calamos Investments plans to hedge Bitcoin volatility by launching a new ETF

According to Bloomberg, a document submitted to the U.S. Securities and Exchange Commission on Wednesday shows that Calamos Investments is considering launching a so-called "structured protection" ETF, which will track partial returns of Bitcoin while hedging up to 100% of downside risk through the options market.

The Chicago-based company has submitted three strategies this week, offering full protection for over six months and 90% and 80% protection for more than one year respectively. Earlier this year, Calamos also filed an application for an ETF that would provide 100% hedging protection for over a year. These ETFs currently do not charge fees or list trading codes.

Calamos holds over $400 million in assets across its eleven structured protective exchange-traded funds (ETFs). The firm manages approximately $40 billion in assets, focusing on option-based strategies across various fund products including ETFs, separately managed portfolios and mutual funds.