Amplify ETFs has launched the Amplify Fairlead Tactical Bitcoin ETF (BATS:BNAV), introducing an actively managed approach to bitcoin investing that adjusts exposure based on technical market signals rather than maintaining a fixed allocation. Sub-advised by Fairlead Asset Management, BNAV seeks long-term capital appreciation by dynamically shifting its bitcoin exposure between 70% and 150% of net assets, marking a departure from the passive “buy-and-hold” model used by most spot bitcoin ETFs.

The launch expands Amplify’s bitcoin ETF lineup to three funds and reflects the next phase of the bitcoin ETF market, where issuers are increasingly introducing differentiated strategies beyond direct spot exposure. Rather than holding bitcoin outright, BNAV gains exposure primarily through bitcoin ETP options and other derivatives, using a rules-based technical framework that evaluates price, momentum and volatility across multiple time horizons to increase exposure in favorable conditions and reduce risk during weaker trends.

Key features of BNAV:

  • Portfolio manager: Katie Stockton, CMT
  • Expense ratio: 0.74%
  • Investment objective: Long-term capital appreciation through active bitcoin exposure.
  • Dynamic allocation: Adjusts bitcoin exposure between 70% and 150% of net assets.
  • Investment approach: Uses a proprietary, rules-based technical model instead of passive buy-and-hold exposure.
  • Risk management: Classifies markets into “risk-on” and “risk-off” environments based on technical indicators.
  • Baseline allocation: Starts with 70% bitcoin exposure under normal market conditions.
  • Maximum exposure: Can increase exposure above 100%, up to 150%, during highly favorable technical conditions.
  • Market signals: Evaluates price, momentum and volatility across short-, intermediate- and long-term timeframes.
  • Portfolio construction: Invests at least 80% of net assets in bitcoin-linked instruments, including bitcoin ETP options and futures, with the remainder allocated to U.S. Treasuries and cash or cash equivalents.
  • Does not hold bitcoin directly: Uses derivatives and bitcoin-linked financial instruments to obtain exposure.
  • Positioning: Designed to pursue better risk-adjusted returns than a traditional buy-and-hold bitcoin strategy over a full market cycle

BNAV’s technical model builds on the methodology used by the Fairlead Tactical Sector ETF (NYSE:TACK), which employs multi-timeframe technical analysis and can rotate into defensive assets when market conditions deteriorate.

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