Amplify Launches Active Bitcoin ETF with Dynamic Exposure

Amplify ETFs has launched the Amplify Fairlead Tactical Bitcoin ETF (BNAV) on Cboe, aiming to provide long-term capital appreciation through actively managed exposure to Bitcoin. Unlike traditional spot Bitcoin ETFs, BNAV employs a proprietary, rules-based model that dynamically adjusts Bitcoin exposure between 70% and 150% based on technical indicators.

The fund's sub-advisor, Fairlead Asset Management, oversees the technical indicators and models. This approach allows the fund to scale exposure up or down rather than holding a static position. BNAV classifies market conditions into higher-conviction ('risk-on') and lower-conviction ('risk-off') environments.

The fund's 70-150 strategy uses historical data such as price, momentum, and volatility trends to identify changes in market direction and manage downside risk. The model evaluates trend conditions across multiple time horizons, including short-term, intermediate-term, and long-term measures. In higher-conviction market conditions, the fund's exposure can reach up to 150%.

BNAV does not physically hold Bitcoin directly but allocates at least 80% of net assets to Bitcoin-linked financial instruments like ETP options and futures contracts. The remaining assets are allocated to U.S. Treasuries and cash or cash-like investments.