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Calamos Bitcoin Structured Alt Protection ETF – January
Interesting. I’ll stick with DraftKings. You can achieve something similar wagering on the favorite and then hedging with a smaller bet on the underdog (which pays out more).
Calamos has been on a tear the past couple years launching new funds - probably doubling the number over that period. I’ve long held slugs of two of their more established OEFs. But am in the process of exiting one completely based on the kind of craziness I see here - and wondering how the firm will adapt to managing significantly more products over a relatively short time?
In the case of these products … “no loss” doesn’t exactly translate into 0 loss for your portfolio over a 1-year period. (1) You are forfeiting the income the money would have earned in a CD, money market fund or T-Bill. More importantly, (2) you may be forfeiting an opportunity to invest that sum in a more productive asset if bargains become available. The combination of volatile Bitcoin here plus the apparent complex hedges used and “limited loss” / “no-loss” features bring to mind a casino or carnival contest …. But what’s new?
If past is prologue the funds will be immensely popular and draw in large sums.
I wasn’t trying to persuade anyone not to invest in these funds. It’s the overall trend across fund managers and the financial services industry that concerns me.
Comments
Interesting, if they can pull it off. The .69 ER isn't too bad, either.
More of their bitcoin-protected funds @
https://www.calamos.com/capabilities/protected-bitcoin-etfs/
https://www.sec.gov/Archives/edgar/data/1579881/000110465925005317/a24-28920_11497k.htm
In the case of these products … “no loss” doesn’t exactly translate into 0 loss for your portfolio over a 1-year period. (1) You are forfeiting the income the money would have earned in a CD, money market fund or T-Bill. More importantly, (2) you may be forfeiting an opportunity to invest that sum in a more productive asset if bargains become available. The combination of volatile Bitcoin here plus the apparent complex hedges used and “limited loss” / “no-loss” features bring to mind a casino or carnival contest …. But what’s new?
If past is prologue the funds will be immensely popular and draw in large sums.
You make great points. I bought a small position as a safer bet versus Bitcoin.
I think they 80 and 90% hedges will be popular for fund managers.
I wasn’t trying to persuade anyone not to invest in these funds. It’s the overall trend across fund managers and the financial services industry that concerns me.