Nicholas Wealth Launches New Fund for Bitcoin Downside Protection

Nicholas Wealth has introduced the Nicholas Bitcoin Tail ETF (BHDG), a new actively managed fund aimed at protecting investors from significant declines in Bitcoin.

The fund, which is part of XFUNDS by Nicholas Wealth's expanding ETF lineup, uses exchange-listed put options on U.S.-listed Bitcoin ETFs/ETPs or a Bitcoin index to provide downside protection.

By selling call options or implementing call spreads, the fund helps offset the cost of this protection. Notably, BHDG does not invest directly in Bitcoin, allowing investors to manage their exposure to the cryptocurrency without direct ownership.