Hedgeye Launches HBIT ETF With Options-Based Bitcoin Risk Strategy

Hedgeye Asset Management has launched the Hedgeye Hedged Bitcoin ETF (HBIT) on the New York Stock Exchange. The actively managed fund combines exposure to US-listed spot Bitcoin products with a changing options overlay.

HBIT does not hold Bitcoin directly, but instead primarily invests in exchange-traded products that track Bitcoin, such as BlackRock's iShares Bitcoin Trust. It then buys and writes put and call options using strike prices informed by Hedgeye's proprietary Risk Range signals.

The fund can change its positioning as frequently as once per day, considering price trends, market and implied volatility, liquidity, and the firm's calculated trading ranges. Unlike a defined-outcome ETF, HBIT has no fixed twelve-month term or stated permanent cap on upside.

Options may reduce losses but introduce new risks, including limited participation during a Bitcoin rally and potential expiration without value of purchased protection. The fund also warns that its hedging techniques may not offset losses and that some options may lack a liquid secondary market.