Key Points

• Calamos has garnered over $100 million for three Bitcoin-protected ETFs while having no current plans to venture into Ethereum (ETH).
• The company cites a lack of liquid options and adequate hedging tools for Ethereum as significant obstacles.
• Calamos emphasizes a focus on risk-managed products, dismissing any potential for meme coin inclusion.

Earlier this year, Calamos made its entrance into the cryptocurrency sector by launching three funds aimed at shielding investors from fluctuations in Bitcoin’s price.

However, the investment management firm, managing approximately $41.3 billion in assets, is hesitant to create products beyond Bitcoin, as stated by its Head of ETFs, Matt Kaufman. The firm is not currently considering Ethereum due to its liquidity and hedging issues.

Kaufman expressed, “Ethereum doesn’t really meet our criteria for being able to effectively hedge that exposure. It’s not a liquid asset; there are no options on Ethereum ETPs, so if those check boxes start to get built, we’ll explore it but right now it’s not on our radar.”

The Calamos Bitcoin Structured Alt Protection ETF, Calamos Bitcoin 90 Series Structured Alt Protection ETF, and Calamos Bitcoin 80 Series Structured Alt Protection ETF offer varying degrees of downside protection while achieving their goals through a blend of Treasuries and options on the CBOE Bitcoin US ETF Index.

Kaufman also conveyed his doubts regarding meme coins, saying, “We’re a risk manager, so we build things we know will work.” He added that the recent uptick in meme coin ETF applications signals a need for investor diligence. “In America, you have to know what you own. Freedom gives you choice, and with choice comes responsibility.”