07 Jan 2025

• Asset management firm Calamos announced the upcoming launch of a 100% downside protection Bitcoin ETF. 
• The ETF will provide full protection on BTC downsides but offers a limit on its upside if held through.
• Bitcoin is back above $100K after invalidating an Head-and-Shoulders pattern.
• Bitcoin surged past $100,000 on Monday following the announcement from asset manager Calamos regarding the introduction of a Bitcoin exchange-traded fund (ETF) that offers 100% downside protection, aimed at assisting investors in managing their risk.
  
  Bitcoin surpasses $100K as Calamos announces innovative downside protection BTC ETF  
  In a recent press release, asset manager Calamos revealed plans to launch a groundbreaking 100% downside protection Bitcoin ETF (CBOJ) on January 22.
  
  "I am thrilled to announce the introduction of the world's first 100% downside protected Bitcoin ETF—CBOJ," stated John Koudounis, President and CEO of Calamos.
  
  The CBOJ ETF is designed to enable investors to hedge against volatility risks by ensuring complete protection against negative returns on Bitcoin during market declines. However, it will feature an upside cap, which limits the potential profits investors can achieve from their Bitcoin exposure, with this cap resetting every 12 months.

• "CBOJ will use a combination of Treasuries and options on the CBOE Bitcoin US ETF Index [to] provide a regulated way to access Bitcoin within a risk-controlled framework," wrote Calamos.

  Furthermore, CBOJ shares can be held indefinitely, signifying that investors can retain ownership of their shares for as long as they want.

  Calamos plans to state the ETF's first cap rate on January 22 after the market closes. The cap rate will run until January 31, 2026.

  Bitcoin invalidates H&S pattern with recent gains

  Following the announcement, Bitcoin witnessed a 4% gain, sending its price over $100K for the first time since December 19. The rise has seen BTC invalidate a Head-and-Shoulders (H&S) pattern that had been forming since December 26.

  CryptoQuant data has indicated that the Bitcoin Coinbase Premium Index has registered a positive value for the first time in 2025. This development suggests a rise in buying activity among investors in the United States, reflecting a bullish outlook for the cryptocurrency.
  
  Furthermore, Matt Hougan, Chief Investment Officer at Bitwise, anticipates that the primary demand for Bitcoin in 2025 will originate from corporations, exchange-traded funds (ETFs), and governmental entities.