Crypto With Controlled Risk: How Fortuna's New Bitcoin Fund Seeks To Manage Volatility, Enhance Returns

In an attempt to address the complexity of investing in the unpredictable world of cryptocurrency, Fortuna Funds recently came up with the Fortuna Hedged Bitcoin Fund HBTC. Launched on March 20, this actively managed fund seeks to deliver long-term capital appreciation along with risk mitigation.

Managing Volatility Through Options Overlays

One of HBTC’s most attractive features is its method for managing risk. The fund utilizes options overlays, such as covered calls on Bitcoin futures or funds that mirror Bitcoin. According to etftrends.com, these options have two main functions: they hedge the fund against potential losses and increase its overall return potential.

Furthermore, HBTC has the option of investing assets in short-term cash securities like U.S. Treasuries and repurchase agreements. Yet at least 80% of the net assets of the fund go into Bitcoin or investments related to Bitcoin, directly or indirectly.

Also Read: Eli Lilly, Palo Alto Networks Traders Take Note: Direxion’s New Leveraged ETFs Are Here

A Strategic Solution For Crypto Investors

With a net expense ratio of 1.75%, HBTC gives investors exposure to Bitcoin without owning the cryptocurrency outright. This approach simplifies crypto investing and can drive more investors into this domain.

Rather than holding Bitcoin, HBTC gets exposure in the form of Bitcoin futures contracts. The technique allows the fund to bypass complexities related to regulation and storage of cryptocurrencies.

With recent price volatility in Bitcoin, investors might appreciate a risk-aware strategy to crypto exposure. HBTC’s options strategy enables portfolios to have exposure to the crypto market with the risk adjusted. The fund’s active management also adds to its flexibility, with investment decisions adjusted according to market conditions.

While the price of Bitcoin keeps on changing, HBTC’s adaptable architecture makes it a worthy investment option in the ever-changing cryptocurrency scenario.

Read Next: