HBTC Turns One: A New, Risk-Managed Approach to Bitcoin Exposure

One year after launch, the Fortuna Hedged Bitcoin ETF reflects a different philosophy for accessing digital assets built on strategy, not just conviction.

When Fortuna Funds launched the Fortuna Hedged Bitcoin ETF (ticker HBTC) on March 19, 2025, it entered a crowded field of Bitcoin-related investment products with a clear point of differentiation: an actively managed, options-based strategy seeking to provide Bitcoin-linked exposure with reduced volatility and provide an investment solution that would entice the institutional investors and conservative advisors away from the sidelines.

One year later, HBTC has established itself as the first publicly traded hedged Bitcoin ETF of its kind and remains a purpose-built vehicle for investors who want access to Bitcoin's return potential without experiencing its price swings fully.

"You don't need to be a crypto believer to benefit from Bitcoin's volatility. You just need a strategy." - Joe Sando, Fortuna Funds Founder

Bitcoin Exposure Without the Evangelism

The defining tension in cryptocurrency investing has always been this: Bitcoin's return profile is compelling, but its volatility can make it difficult to incorporate into professionally managed portfolios without significant discomfort - for both financial advisors and their clients.

HBTC was built to resolve that tension. Rather than requiring investors to take a long-term ideological position on digital assets, the fund applies institutional options trading techniques to Bitcoin-related securities, seeking to participate in upside price movements while building in a layer of downside protection.

In practical terms, this means advisors can make a pragmatic, portfolio-construction argument for a small Bitcoin allocation without betting on the technology's future, debating regulatory outcomes, or managing the custody and security concerns that come with direct crypto ownership.

How the Strategy Works

HBTC uses an actively managed options strategy applied to Bitcoin-related securities. The core components include:

• Long exposure to Bitcoin-related securities, providing participation in Bitcoin price movements
• Protective put options designed to provide downside hedging against sharp market declines
• Call spreads used to help offset the cost of the hedging structure
• Monthly repositioning of options exposures to keep the hedge aligned with current market conditions

This type of structure is often described as an "uncapped collar strategy," a portfolio construction approach that seeks to protect against large drawdowns, manage volatility, and smooth the return profile over time. Critically, investors gain exposure to digital assets with the broadly-familiar ETF structure, accessible through traditional brokerage and retirement accounts, without crypto wallets or private key management.

The strategy is actively managed by Mark Adams, co-founder of Fortuna Funds and a career options trader with more than two decades of professional derivatives trading experience. That experience, generated in multiple institutional environments, including the Federal Reserve, is central to how the fund approaches risk management.

HBTC applies the discipline of professional derivatives trading to one of the most volatile asset classes in the world.

Real-World Tests

The hedged structure has been put to the test early, with Bitcoin and Bitcoin-related ETFs selling off sharply over several periods within the fourth quarter of 2025 and the first part of 2026. In periods where Bitcoin has declined, HBTC's embedded protective puts have demonstrated their purpose, cushioning the fund’s drawdown relative to unhedged alternatives.

As cryptocurrencies, specifically Bitcoin, rebounded, HBTC recovered alongside them. For investors watching the strategy in real time, early tests of HBTC’s resilience have provided real-time illustrations of the hedging mechanisms in practice: not a perfect shield, but a meaningful buffer during a period of elevated volatility.

More on HBTC’s performance can be found at www.fortunafunds.com and on the latest ETF factsheet. Past performance is not a guarantee of future returns.

First-Year Snapshot

The ETF launched March 19, 2025, and its first year has been primarily about establishing the strategy’s credibility and building awareness. Key metrics as of early 2026:

• Exchange: Cboe
• Expense Ratio: 1.75%
• 52-Week High / Low: $32.07 / $20.63
• Structure: Actively managed ETF with options repositioning at least monthly
• Investment Objective: Long-term capital appreciation, exposure with the potential for volatility management and downside protection

The focus for year two is expanding investor awareness and demonstrating the strategy's consistency across different Bitcoin market environments.

Where HBTC Fits in a Portfolio

Financial advisors exploring Bitcoin exposure for their clients typically face a range of imperfect options: direct crypto ownership, spot Bitcoin ETFs that deliver the full volatility of the underlying asset, or sitting out entirely. HBTC looks to offer a fourth path.

Common use cases discussed by financial advisors may include:

• Satellite allocation: A small, risk-managed position within a diversified portfolio, sized to contribute to return potential without dominating risk
• Volatility-aware crypto exposure: For clients who have expressed interest in Bitcoin but are deterred by the drawdown history
• Tactical allocation: For advisors who manage dynamic, macro-aware portfolios and want to add a digital-asset component with defined risk management

Notably, HBTC's options-based approach may appeal to advisors who already use derivatives or structured products in other parts of their practice. The strategy reflects a commonly-recognized framework, simply applied to a new underlying asset class.

What Year Two Looks Like

Bitcoin's volatility is unlikely to diminish. The question for advisors is whether to engage with that volatility directly and on its terms, or to seek out exposure to the asset class through a structure designed to manage it. HBTC was built for the latter.

The goal was never to eliminate Bitcoin's volatility. It was to make that volatility manageable enough to belong in a professional portfolio.