New ETFs that combine bitcoin exposure and options are coming in 2025

Bitcoin ETFs were a hit with investors in 2024, and now asset management firms are starting to build out ways to combine crypto and derivatives in exchange-traded packages.

New products are set to roll out this month. Asset manager Calamos announced Monday that it will launch a structured protection ETF that aims to give investors a way to capture some of bitcoin’s upside with 100% downside protection.

The fund will combine options exposure on the Cboe Bitcoin U.S. ETF Index with Treasury holdings and is designed to be held for 12 months. The exact upside cap will be determined Jan. 22, based on options pricing. It will be traded under the ticker CBOJ.

The fund is essentially bringing a popular equity ETF strategy to crypto investing. Defined outcome products, including buffer funds, have boomed in recent years as investors look for new ways to diversify their portfolios. Their gain in popularity was seemingly helped by the 2022 market sell-off, when stocks and bonds both declined.