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What are your thoughts on a Bitcoin-Linked ETFs that offers capital protection?www.wsj.com/finance/investing/new-etfs-bet-investors-are-way-too-carefuleven-when-buying-bitcoin-66c25763?
19 sats \ 5 comments \ @Ezz 28 Jan bitcoin_beginners
Calamos Investments has recently introduced the Calamos Bitcoin Structured Alt Protection ETF – January (CBOJ), a novel exchange-traded fund designed to provide investors with exposure to Bitcoin's potential gains while offering full downside protection over a one-year period. This ETF aims to match the positive price return of the CME CF Bitcoin Reference Rate - New York Variant ("BRRNY") up to a predetermined cap, ensuring that investors do not incur losses on their initial investment during the specified timeframe.
Key Features of CBOJ:
  • Upside Potential: Investors can benefit from Bitcoin's price appreciation up to a capped limit.
  • Downside Protection: The fund offers 100% protection against losses over the one-year outcome period, safeguarding the initial investment.
  • Defined Outcome Period: The ETF operates on a one-year cycle, providing clarity on investment horizons.
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100 sats \ 0 replies \ @siggy47 28 Jan
💩
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9 sats \ 0 replies \ @freetx 28 Jan
Just for clarity. Almost no one would use this as their sole product. They are used as a tool in portfolio construction.
For instance, you may have a balanced fund that is 90% BTC / 10% CBOJ (protected ETF).
Each quarter you may re-balance between BTC -> CBOJ to maintain 90/10 allocation. Normally these constructions use USD, however in this case you would get the benefit of 100% downside protection (like cash), while still getting upside.
tldr. This becomes like a cash account that can earn up to 11.5% interest depending on bitcoins performance.
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9 sats \ 1 reply \ @ama 28 Jan
Due to how hugely asymmetric saving in Bitcoin is, I'd say that product is a extremely expensive insurance designed to drain "investors" pockets.
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0 sats \ 0 replies \ @DarthCoin 28 Jan
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0 sats \ 0 replies \ @DarthCoin 28 Jan
this post is pure fiat maximalism... in other words:
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