Hedgeye has proposed a new Bitcoin ETF called “Hedged Bitcoin” that aims to lower risk and smooth out price swings. It would do this by combining direct Bitcoin holdings with a strategy using options. ETF analyst James Seyffart noted the filing on X (formerly Twitter), describing it as a fresh approach to offering Bitcoin investment with built-in protection.
Just in: A new Bitcoin ETF called ‘Hedged Bitcoin’ has been filed, according to Eric Seyffart. The filing indicates the fund will invest in existing Bitcoin ETFs and use options to lower risk and volatility.
The proposed fund is named the Hedgeye Hedged Bitcoin ETF and would trade under the ticker HBIT on NYSE Arca, Inc., according to the prospectus excerpt shared by Seyffart. The document remains preliminary, stating that the information “is not complete and may be changed,” and that the securities may not be sold until the registration statement filed with the Securities and Exchange Commission becomes effective.
Bitcoin Exposure With A Risk Overlay
The core structure is straightforward: the fund seeks Bitcoin exposure through ETPs and ETFs, while using options to dampen volatility and limit downside. The prospectus says the fund aims “to reduce volatility and manage downside risk through an options strategy that involves the purchase and/or sale of put and call options” based on Hedgeye Risk Management, LLC’s proprietary signals.
These “Risk Range” signals help determine when to buy or sell investments. Unlike a typical “buy and hold” strategy, the ETF wouldn’t just purchase and keep Bitcoin-related products. Instead, it would actively adjust its investments based on things like market trends, how volatile Bitcoin is, its price, how easily it can be bought and sold, and other factors assessed by the fund manager.
According to the filing, the Fund will use options contracts tied to Bitcoin-related investments – specifically shares of exchange-traded products (ETPs) and exchange-traded funds (ETFs), or options on indexes that track Bitcoin’s price. This strategy aims to lessen price swings and limit potential losses, all while still allowing investors to benefit from Bitcoin’s performance through investments in these ETPs and ETFs.
HBIT fits into a new wave of crypto products designed to adjust *how* Bitcoin returns behave, rather than simply trying to get the biggest possible gains. For investors, the benefit isn’t just getting access to Bitcoin – which is already possible with existing ETFs – but a systematic approach that aims to lessen losses when the price drops.
Downside Protection, But With A Trade-Off
The filing is explicit that the hedge comes with a cost. The fund’s option positions are “designed to provide downside protection,” but may also mean “frequently foregoing some upside potential.” That is the central trade-off in the strategy: investors may get a smoother ride in adverse markets, but they may also give up part of Bitcoin’s upside during strong advances.
“The premiums received from writing options are intended to provide income to offset the cost of buying options,” the filing says. The fund may buy and write both standardized exchange-traded options and Flexible Exchange Options, or FLEX Options, which are exchange-listed contracts with customizable terms such as strike price and expiration date.
The prospectus also notes that both standardized exchange-traded options and FLEX Options are guaranteed for settlement by the Options Clearing Corporation. FLEX Options differ from typical listed contracts because investors can customize certain key terms that are normally standardized.
At press time, BTC traded at $62,719.
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2026-06-11 19:56