Bitcoin Surges Past $100K as Calamos Launches Groundbreaking Downside Protection ETF

Bitcoin Surges Above $100K

Bitcoin rallied above $100,000 on Monday following the announcement from Calamos, an asset management firm, regarding the launch of a 100% downside protection Bitcoin ETF. This innovative financial product is designed to help investors effectively manage their risk.

The First of Its Kind: CBOJ ETF

Calamos announced that the CBOJ ETF will debut on January 22. According to John Koudounis, President and CEO of Calamos, "I am excited to announce the launch of the world's first 100% downside protected Bitcoin ETF - CBOJ."

This ETF aims to provide full protection against negative Bitcoin returns during market downturns, but it will also impose a cap on potential gains. This cap resets every 12 months, allowing investors to hold the ETF shares indefinitely.

Bitcoin's Technical Breakthrough

After the announcement, Bitcoin experienced a 4% increase, surpassing the $100K mark for the first time since December 19. This surge invalidated a Head-and-Shoulders pattern that had been forming since late December.

In addition, data from CryptoQuant revealed that the Bitcoin Coinbase Premium Index turned positive for the first time in 2025, signaling increased buying pressure from U.S. investors and a bullish sentiment for Bitcoin.

Matt Hougan, Chief Investment Officer at Bitwise, predicts that the highest demand for Bitcoin in 2025 will come from companies, ETFs, and governments.

Understanding Crypto ETFs

An Exchange-Traded Fund (ETF) is an investment vehicle that tracks the price of an underlying asset, such as Bitcoin. The primary advantage of crypto ETFs is that they allow investors to gain exposure to cryptocurrencies without direct ownership, thus reducing risks associated with holding the actual asset. However, investors should be aware of the limitations, including potential fees and the fact that they do not have direct ownership of the underlying assets.