Hedgeye Asset Management launches hedged Bitcoin ETF

Hedgeye Asset Management has launched the Hedgeye Hedged Bitcoin ETF (HBIT) on the New York Stock Exchange. The actively managed fund is designed to provide Bitcoin exposure while attempting to reduce volatility and manage downside risk through a dynamic options overlay.

HBIT does not hold Bitcoin directly. Instead, it primarily invests in U.S.-listed spot Bitcoin exchange-traded products, such as BlackRock’s iShares Bitcoin Trust. The fund utilizes an options strategy, buying and writing put and call options based on Hedgeye’s proprietary Risk Range signals. This positioning can be adjusted as frequently as once per day to account for market trends, volatility, and liquidity.

Unlike defined-outcome ETFs, HBIT does not have a fixed twelve-month term or a permanent cap on upside potential. However, the fund notes that writing calls may limit participation during rallies, and the hedging techniques may not always offset losses. As a newly organized fund, HBIT lacks a live performance record.