Investment firm Calamos has unveiled a new investment strategy aimed at limiting Bitcoin’s downside potential.

Bitcoin (BTC) is becoming increasingly attractive to institutions, but many still view it as too risky. In response, on June 7, global investment firm Calamos introduced its “protected Bitcoin” strategy, designed to limit both the downside and the upside of Bitcoin exposure.

The firm noted that although Bitcoin has reached a $2 trillion valuation, institutional investors remain concerned about its volatility. As a result, most allocate just 1–2% of their portfolios to BTC to avoid outsized risk exposure.

Calamos has structured its strategy to offer some upside participation while managing risk by combining Bitcoin futures with U.S. Treasuries. Specifically, the firm purchases zero-coupon U.S. Treasury bonds maturing at the end of the year.