Hedgeye has quietly filed for a new “Hedged Bitcoin” ETF that combines spot Bitcoin exposure with an options overlay intended to trim volatility and cushion downside moves.
Bloomberg ETF analyst James Seyffart flagged the filing on X, noting the product would “hold spot Bitcoin ETFs and use options strategies to reduce vol and downside risk.” The fund — called the Hedgeye Hedged Bitcoin ETF — would trade under the ticker HBIT on NYSE Arca, Inc., according to a prospectus excerpt shared by Seyffart. The document is preliminary, warning the information “is not complete and may be changed,” and that shares cannot be sold until the SEC declares the registration effective.
Structure and strategy
- The fund aims to gain Bitcoin exposure primarily by investing in exchange-traded products (ETPs/ETFs) that track spot BTC, rather than directly holding coins.
- Overlaying that exposure, Hedgeye plans to buy and/or sell put and call options to “reduce volatility and manage downside risk” using signals from Hedgeye Risk Management, LLC.
- Those proprietary “Risk Range” signals are described as guides for market entry and exit, with the ETF adjusting option positions based on market conditions, implied volatility, Bitcoin price trends, liquidity, and other adviser-determined factors.
Product mechanics and trade-offs
- The filing says the fund “will utilize options on shares of Reference ETPs and/or on indexes or ETPs and ETFs that provide exposure to Bitcoin price movements.”
- The strategy is explicitly designed to lower volatility and limit drawdowns while preserving exposure to Bitcoin’s performance — a different objective than pure upside-seeking BTC products.
- Hedgeye warns the protection comes at a cost: downside hedges may require “frequently foregoing some upside potential.” Writing options to collect premiums is intended to help pay for purchased protection, but that can cap returns during strong rallies.
Options types
- The fund may use both standardized exchange-traded options and FLEX Options — FLEX contracts are exchange-listed but allow customization of strike and expiration terms.
- Both contract types are guaranteed for settlement by the Options Clearing Corporation, the prospectus notes.
Why it matters
HBIT joins a growing roster of crypto products designed to reshape Bitcoin’s return profile for institutional and risk-sensitive allocators who want BTC exposure with a rules-based cushion against steep drawdowns. For those investors, the pitch is less about accessing spot BTC (already available via spot ETFs) and more about smoothing the ride.
At press time, Bitcoin traded around $62,719.
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