Bitcoin Dip Debate Creates Buy Sign for Defensive Exposure

Back when the price of Bitcoin started plummeting last year, crypto bulls began to wonder when to buy into a dip.

There’s a decent chance that we have already approached the price floor for the crypto winter. After all, consider the market impacts caused by geopolitical escalation from the Iran war. Risk assets like emerging markets have sold off. Gold — often lauded as Bitcoin’s top competitor — is not doing well either.

How is Bitcoin doing while all this geopolitical uncertainty is going on? Well, the price hasn’t necessarily skyrocketed, but the cryptocurrency isn’t falling too much either. As the chart below shows, the price of Bitcoin has stayed relatively between the mid-$60,000 and low-$70,000 mark. This remains true even after the 2026 Iran war began at the end of February.

Is now the time to buy into the Bitcoin dip? It’s hard to say—uncertainty remains rampant, and the price of the cryptocurrency could move up or down in the coming weeks. However, this period of relative price consistency may indicate a potential buy opportunity for ambitious advisors and investors.

Ride the Bitcoin Dip with CBXL

That being said, if one is choosing to buy into the dip, it could be prudent to do so through a strategy that offers downside protection. For a suitable example, look no further than the Calamos Laddered 90 Series Structured Alt Protection ETF (CBXL).

A laddered fund from Calamos Investments, CBXL invests in four different Calamos Protected Bitcoin ETFs. Each of these underlying ETFs offers distinct exposure to Bitcoin’s price performance through options, up to a predetermined cap.

However, the crucial benefit from these funds comes from their downside security. Across each fund’s one-year outcome period, the maximum potential loss is limited to 10%, excluding fees and expenses.

Considering how Bitcoin has performed recently, buying the dip with a more defensive position could pay off in the long run. CBXL allows one to engage with potential price rallies across four distinct outcome periods, while still providing a sturdy bulwark of downside security.

Regardless of whether now is the perfect time to buy the dip or not, CBXL’s strategy is intuitively prepared for any market moment. Whether it’s minimizing the impact of a drawdown or participating in a Bitcoin rally, CBXL can help investors tackle both scenarios within its singular wrapper.

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Before investing carefully consider the fund’s investment objectives, risks, charges and expenses. Please see the prospectus and summary prospectus containing this and other information which can be obtained by calling 1-866-363-9219 Read it carefully before investing.  

An investment in the Fund(s) is subject to risks, and you could lose money on your investment in the Fund(s). 

 

There can be no assurance that the Fund(s) will achieve its investment objective. Your investment in the Fund(s) is not a deposit in a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other government agency. The risks associated with an investment in the Fund(s) can increase during times of significant market volatility. The Fund(s) also has specific principal risks, which are described below. More detailed information regarding these risks can be found in the Fund’s prospectus.  

 

Investing involves risks. Loss of principal is possible. The Fund(s) face numerous market trading risks, including authorized participation concentration risk, cap change risk, capital protection risk, capped upside risk, cash holdings risk, clearing member default risk, correlation risk, derivatives risk, equity securities risk, investment timing risk, large capitalization investing risk, liquidity risk, market maker risk, market risk, non-diversification risk, options risk, premium discount risk, secondary market trading risk, sector risk, tax risk, trading issues risk, underlying ETF risk and valuation risk. For a detailed list of fund risks see the prospectus.  

 

FUND-OF-FUNDS RISK. Shareholders of the Fund will experience investment returns that are different than the investment returns provided by an Underlying ETF. The Fund does not itself pursue a defined outcome strategy, nor does the Fund itself provide downside protection against SPY losses. Because the Fund will typically not purchase an Underlying ETF on the first day of a Target Outcome Period, it is not likely that the stated outcome of the Underlying ETF will be realized by the Fund. The Fund will be continuously exposed to the investment profiles of each of the Underlying ETFs during their respective Target Outcome Periods. The Fund, with its aggregate exposure to each of the Underlying ETFs, may have investment returns that are inferior to that of any single Underlying ETF or group of Underlying ETFs over any given time period. In between the semi-annual rebalance period of the Index, because the Fund is not equally weighted on a continuous basis, the Fund may be exposed to one or more Underlying ETFs disproportionately when compared to other Underlying ETFs. In such circumstances, the Fund will be subject to the over-weighted performance of such Underlying ETF. As a shareholder in other ETFs, the Fund bears its proportionate share of each ETF’s expenses, subjecting Fund shareholders to duplicative expenses.  

 

There are no assurances the Underlying ETFs will be successful in providing the sought-after protection. The outcomes that the Underlying ETFs seek to provide may only be realized if you are holding shares on the first day of the outcome period and continue to hold them on the last day of the outcome period, approximately one year. There is no guarantee that the outcomes for an outcome period will be realized or that the Underlying ETFs will achieve its investment objective. If the outcome period has begun and the underlying ETF has increased in value, any appreciation of the Fund(s) by virtue of increases in the underlying ETF since the commencement of the outcome period will not be protected by the sought-after protection, and an investor could experience losses until the underlying ETF returns to the original price at the commencement of the outcome period. The Underlying ETFs are subject to an upside return cap (the “Cap”) that represents the maximum percentage return an investor can achieve from an investment in the fund(s) for the outcome period, before fees and expenses. If the outcome period has begun and the Underlying ETFs have increased in value to a level near to their individual Cap, an investor purchasing at that price has little or no ability to achieve gains but remains vulnerable to downside risks. Additionally, the Cap may rise or fall from one outcome period to the next. Unlike the Underlying ETFs, the Fund itself does not pursue a target outcome strategy. The protection is only provided by the Underlying ETFs and the Fund itself does not provide any stated downside protection against losses. The Fund will likely not receive the full benefit of the Underlying ETF downside protections and could have limited upside potential. The Fund’s returns are limited by the caps of the Underlying ETFs.  

 

Cap Rate – Maximum percentage return an investor can achieve from an investment in the Fund if held over the Outcome Period.  

Protection Level –Amount of protection the Fund is designed to achieve over the Days Remaining.  

Outcome Period – The defined length of time over which the outcomes are sought.  

The Cboe Mini Bitcoin US ETF Index (MBTX) is based on 1/10th the value of the Cboe Bitcoin US ETF Index, a modified market capitalization-weighted index that is designed to track the performance of a basket of spot Bitcoin ETFs listed on US exchanges.

 

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