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Matthias Knab, Opalesque: Hedgeye Asset Management (HAM), a subsidiary of Hedgeye Risk Management, has launched the Hedgeye Hedged Bitcoin ETF (NYSE: HBIT), an actively managed fund aimed at investors who want bitcoin exposure without the full amplitude of the asset's price swings.
The fund seeks long-term capital appreciation by investing primarily in U.S.-listed spot bitcoin exchange-traded products, including the iShares Bitcoin Trust ETF (IBIT). HBIT does not hold bitcoin directly.
Around that exposure sits an actively managed options overlay. HBIT purchases and writes puts and calls at strike prices determined primarily by Hedgeye's proprietary Risk Range Signals, with premiums received from written options helping to offset the cost of the protection purchased. Rather than running a static hedge, the fund can reset its positioning as often as daily based on changes in the Risk Ranges, bitcoin price trends, market and implied volatility, liquidity conditions and other factors.
Not a defined-outcome product
HAM is drawing a deliberate line between HBIT and the buffered and defined-outcome structures that have proliferated in the ETF market. The fund does not target a defined outcome, does not maintain a stated upside cap and is not tied to a fixed twelve-month investment period - the hedging approach is intended to adapt as conditions change rather than lock investors into a predetermined payoff profile.
The timing is pointed. As o...................... To view our full article Click here
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