September 16, 2026
Share:
Bitcoin’s Volatility Problem: A Better Way to Manage the Risk
Keith McCullough has spent years warning investors about complacency around Bitcoin risk.
As Wall Street banks and asset managers increasingly pushed Bitcoin as another allocation in the traditional portfolio, Hedgeye focused on what that conversation was missing: risk management.
Bitcoin has suffered four drawdowns of more than 50% since 2011. Even a relatively small allocation can consume an outsized share of a portfolio’s risk budget.
Getting exposure to Bitcoin is easy. Managing the volatility and downside risk is the hard part.
Keith sits down with Hedgeye Asset Management CIO John S. McNamara III, Portfolio Manager of the Hedgeye Hedged Bitcoin ETF (NYSE: HBIT), to discuss Bitcoin’s volatility and a different approach to managing risk while maintaining exposure to the asset.
00:00 – Why Hedgeye Launched a Hedged Bitcoin ETF
02:16 – Bitcoin’s Volatility Problem & the Case for Risk Management
05:23 – Bitcoin’s 50%+ Drawdowns: Why “Buy and Hold” Gets Difficult
08:22 – How Hedgeye’s Bitcoin Risk Range Works
11:41 – HBIT’s Strategy: A Process, Not a Bitcoin Forecast
12:23 – How HBIT Adjusts Exposure at the Top & Bottom of the Risk Range
15:25 – Removing Emotion From Bitcoin Investing
17:53 – What Happens When Bitcoin Enters a Bearish Trend?
20:04 – Dynamic Hedging vs. Static Hedging
23:05 – Price, Volume & Volatility: What Drives the Risk Range
Disclosure:
Hedgeye Asset Management, LLC ("HAM") is a registered investment adviser and controlled subsidiary of Hedgeye Risk Management, LLC ("HRM"). HAM is compensated, in part, on the asset size of the funds it manages and therefore benefits directly from investments in those funds. HAM is a subsidiary of HRM. HRM holds an ownership interest in HAM and provides research and other services to HAM under a revenue share agreement. As such, HRM benefits indirectly from investments in the funds managed by HAM. For full disclosures, review HAM's Form ADV at https://adviserinfo.sec.gov/