Hedgeye Launches Options-Based HBIT ETF to Reduce Bitcoin Volatility

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

The fund primarily invests in exchange-traded products that track Bitcoin, such as BlackRock's iShares Bitcoin Trust, and buys and writes put and call options using strike prices informed by Hedgeye's proprietary Risk Range signals.

HBIT 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. The fund warns that its hedging techniques may not offset losses and that some options may lack a liquid secondary market.