Hedgeye Enters ETF Market With Volatility-Managed Bitcoin Fund

The fund, trading under the ticker HBIT on the NYSE, does not hold bitcoin directly. Instead, it invests in U.S.-listed spot bitcoin exchange-traded products, such as the iShares Bitcoin Trust ETF. To manage the inherent volatility of the asset class, the firm utilizes its Risk Range Signals, a methodology that dictates the buying and writing of put and call options. This positioning can be adjusted as frequently as daily based on market conditions, including price trends and implied volatility.

Keith McCullough, founder and CEO of Hedgeye, described the current market climate as a risk management challenge rather than a fundamental flaw in the asset itself. The fund’s strategy eschews fixed-outcome periods and upside caps, opting instead for a flexible approach to hedging. John S. McNamara III, who serves as the fund's portfolio manager, noted that the strategy allows investors to capture long-term return potential without absorbing the full amplitude of price swings. The signals governing these adjustments are published daily, providing transparency into the process behind the fund's active management.