New Crypto ETFs Expected in 2025

The surge in bitcoin ETFs throughout 2024 is set to evolve further in 2025 with the launch of innovative funds combining cryptocurrency exposure and options strategies. Asset manager Calamos recently announced its structured protection ETF, which aims to provide investors with bitcoin’s potential upside while offering 100% downside protection.

These products mirror the defined outcome strategies popular in equity ETFs, which gained traction after the 2022 market downturn when both stocks and bonds suffered losses. Investors looking for portfolio diversification have increasingly turned to buffer funds and similar approaches, and now these methods are being adapted for the crypto market.  

Bitcoin ETFs debuted in January 2024 with a record-breaking reception, collectively attracting tens of billions in inflows and pushing bitcoin prices to an all-time high above $100,000. The iShares Bitcoin Trust ETF (IBIT) alone has accumulated over $50 billion in assets, reflecting the strong demand. 

What Does This Mean for Me?

Despite these successes, analysts remain hesitant about bitcoin’s notorious volatility. Structured protection ETFs are designed to address these concerns, offering risk-managed access to the crypto space.  

Other issuers, including Innovator and First Trust, are following Calamos’ lead, proposing ETFs that integrate bitcoin exposure with income-generating strategies like covered call funds. With the Securities and Exchange Commission expected to adopt a more crypto-friendly stance in 2025, additional filings are likely, signaling a continued evolution of crypto investment options tailored to risk-conscious investors.