Cryptocurrency has gained significant attention as a potential investment avenue, but many investors remain hesitant. For those who are “crypto curious” but cautious about diving into the market, Fortuna Funds offers a unique solution: a hedged Bitcoin ETF. This innovative fund provides a secure and strategic way to access Bitcoin’s growth potential while managing risk, making it easier for everyday investors to explore the benefits of digital assets without undue exposure to market volatility.
Benefits of the Hedged Approach
Hedged Bitcoin ETFs are game-changers for investors wondering how to add crypto to a portfolio. For investors looking to invest in Bitcoin without directly holding the asset, these ETFs provide an accessible and potentially secure pathway, embodying the best practices of cryptocurrency risk management.
Unlike direct Bitcoin investments, which expose investors to the full brunt of market fluctuations, hedged ETFs are designed to:
- Minimize Volatility: By offsetting price swings, these funds make investing in crypto with guardrails possible.
- Balance Risk and Reward: Hedged ETFs allow investors to capture most of Bitcoin’s growth potential while reducing their exposure to extreme market downturns.
Exploring the Evolution of Cryptocurrency
Cryptocurrencies have evolved significantly from the early days of self-storage wallets to more structured investment solutions like ETFs.
Initially, people would buy Bitcoin and store it in their own wallet, which had its own risks. While those early adopters appreciated the security it offered—such as protection from government interference—there were significant downsides. The security was not foolproof; Bitcoin could be compromised, lost, or forgotten. There are countless stories of individuals losing Bitcoin after misplacing their computer, hard drive, or private keys.
The market evolved from this model to the ETF space, but we’re looking ahead to the next evolution. Bitcoin maturing is not just about direct ownership, but also about being able to hedge it.
The best way to hedge Bitcoin involves using options. With over 20 years of trading experience, the Fortuna Funds team leverages a strategy that takes a position in bitcoin-related securities for long exposure while simultaneously limiting the downside risk. By selling call spreads to offset the cost of protective strategies like puts, we aim to capture most of the upside potential of Bitcoin while minimizing the risk.
A Solution for Crypto Curious Investors
If you’re curious about Bitcoin but wary of the risks, Fortuna Funds presents a better way to explore this evolving asset class.
Fortuna Hedged Bitcoin Fund (HBTC) provides a unique alternative. It seeks to achieve long-term capital appreciation. The Fund is an actively managed exchange-traded fund (“ETF”) that seeks to achieve its investment objective primarily through its investments in bitcoin-related securities. While the fund doesn’t directly invest in bitcoin, it allows investors to gain exposure to Bitcoin with significantly reduced downside risks. This is particularly appealing for those who are concerned about their coins being compromised or the volatility of the market.
“We are the first of its kind Bitcoin ETF in the market offering this type of investment opportunity. While hedge funds might provide similar strategies, we aim to democratize access to these innovative hedging strategies through a liquid ETF format. This makes investing in cryptocurrency simpler and more accessible than ever before.” Mark Adams, Fortuna Funds Co-Founder.
HBTC makes it easier than ever for investors to explore how to add Bitcoin to a portfolio while aligning with their risk tolerance and financial goals.
Investing in cryptocurrency doesn’t have to be daunting. With the right tools and strategies—like the HBTC Fund—investors can access Bitcoin’s benefits in a way that prioritizes potential stability and long-term growth. By offering investing in crypto with guardrails, investors can confidently embrace the future of crypto investing.
