Hedgeye Launches HBIT ETF With Options-Based Bitcoin Risk Strategy

Hedgeye Asset Management has launched the Hedgeye Hedged Bitcoin ETF under the ticker HBIT on the New York Stock Exchange. According to the August 27 launch announcement, the actively managed fund combines exposure to US-listed spot Bitcoin products with a changing options overlay.

HBIT does not hold Bitcoin directly

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

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

Options may reduce losses but introduce new risks

Premium earned from writing options can offset part of the cost of downside protection. However, written calls can limit participation during a Bitcoin rally, while purchased protection may expire without value. The fund also warns that its hedging techniques may not offset losses and that some options may lack a liquid secondary market.