Hedgeye Launches Actively Managed Bitcoin ETF with Volatility Management
Hedgeye Asset Management has launched the Hedgeye Hedged Bitcoin ETF (HBIT), an actively managed exchange-traded fund designed to provide investors with exposure to bitcoin while managing volatility.
The Fund invests primarily in U.S.-listed spot bitcoin exchange-traded products, such as the iShares Bitcoin Trust ETF (IBIT). It uses a dynamic options strategy driven by Hedgeye's proprietary Risk Range Signals to adjust its positioning daily based on market conditions.
HBIT seeks long-term capital appreciation but focuses on reducing volatility and managing downside risk. According to Hedgeye Founder & CEO Keith McCullough, nearly half of all bitcoin in existence is currently worth less than what someone paid for it, which he attributes not to a bitcoin problem but rather a risk management issue.
John S. McNamara III, Chief Investment Officer of Hedgeye Asset Management and portfolio manager of HBIT, stated that investors have largely been asked to accept bitcoin's volatility as the price of admission, but HBIT is designed for those who want exposure without the full amplitude.