The Fortuna Hedged Bitcoin Fund involves investments in Bitcoin-related securities combined with an option strategy overlay aiming to reduce downside exposure while retaining most of the upside potential. https://fortunafunds.com/invest/ i have no financial interest in above company / fund; possibly invest.
I don’t know why you would give away upside or own essentially a 60/40 bitcoin portfolio via a collar that they’re going to charge you to put on. JPMorgan does this on their hedged equity offering, go take a look and plot it against a moderate account etf such as Blackrock. It’s pointless to pay for them to do this, not to mention the roll is the biggest open secret and @demoncore can weigh in on how bad they get front run rolling their hedge Two thoughts. One, you can simply add the amount of bitcoin to a portfolio of traditional securities commensurate with the vol you want in portfolio, ie maybe 5-10% IBIT. Or, if you want income you would be better off with MSTR income ideas right now (although I think that thesis is starting to die off, and I’m diversifying portfolios away from MSTR post $600) - Chanos is starting to, and is going to, beat him.
Long IBIT and short the risk reversal is a synthetic bull vertical. I’ll look at the skew when I get to my desk. Fund cos don’t want to force a roll (assignment) so they are generally going to be debit reversal so a wide synthetic vertical = more risk. Debit reversal meaning paying for the prot, debit on the reversal. vol of vol is a consideration as BTC dot shots upside but that hasn’t been a thing as BTC has been a victim of its success. All the offerings have killed vol as there are so many listed offerings to lay off risk. Why buy any SP that is holding IBIT just to structure a call spread you can trade in your IRA? I’ll come back to it with a reco in IBIT but vols are 50-line now. Regardless, you can replicate what they are doing in minutes in your PA.
I wasn't looking as I was on my iPad. I know that IBIT is in the 50s. Flashback to a time of BTC at 100-line. Mature product so vols suck generally, and it becomes a cap-floor play for protection rather than a vol-trade. I'll look in a bit.