A Tactical Edge for Bitcoin: Amplify Premieres BNAV
On July 29, Amplify ETFs launched the Amplify Fairlead Tactical Bitcoin ETF (BNAV) on Cboe, targeting long-term capital appreciation through actively managed exposure to Bitcoin. The fund is designed to maintain Bitcoin exposure representing 70% to 150% of its net assets. Its allocations are adjusted based on a systematic evaluation of technical market indicators. The fund’s sub-advisor, Fairlead Asset Management, oversees the technical indicators and models.
Key Takeaway
- In contrast to traditional spot Bitcoin ETFs with direct exposure, BNAV uses a proprietary, rules-based model. This approach dynamically adjusts Bitcoin exposure between 70% and 150% based on technical indicators.
- BNAV classifies market conditions into higher-conviction (“risk-on”) and lower-conviction (“risk-off”) environments. This allows the fund’s sub-advisor to scale exposure up or down rather than holding a static position.
- The launch of BNAV expands Amplify’s Bitcoin-focused product lineup, joining the Amplify Bitcoin 2% Monthly Option Income ETF (BITY) and the Amplify Bitcoin Max Income Covered Call ETF (BAGY), which use active options strategies to capture income.
The 70-150 Strategy
In contrast to traditional spot Bitcoin ETFs that directly provide broad exposure to bitcoin regardless of market performance, BNAV employs a proprietary, technically driven framework that adjusts allocations based on prevailing market conditions.
The proprietary model uses historical data such as price, momentum, and volatility trends to identify changes in market direction and to manage downside risk. Trend conditions are evaluated across multiple time horizons, including short-term, intermediate-term, and long-term measures. Through a systematic and rules-based approach the model classifies market conditions into higher-conviction (“risk-on”) and lower-conviction (“risk-off”) to decide the funds Bitcoin exposure.
The fund starts at a baseline exposure of 70% under normal market conditions. When technical indicators point to lower-conviction market conditions, the fund will reduce exposure toward the baseline. In higher-conviction market conditions, the fund’s sub-advisor will generally increase BNAV’s exposure above 100%. Under highly favorable technical conditions, exposure can potentially reach up to 150%
Despite providing Bitcoin exposure, BNAV does not physically hold Bitcoin directly. Instead the fund allocates at least 80% of net assets to Bitcoin-linked financial instruments like ETP options and futures contracts. This approach allows BNAV to achieve its target exposure. Remaining assets are allocated to U.S. Treasuries and cash or cash-like investments.
Expanding Bitcoin ETF Ecosystem
The debut of BNAV expands Amplify’s Bitcoin ETF offerings to three, building upon the 2025 launches of the Amplify Bitcoin 2% Monthly Option Income ETF (BITY) and the Amplify Bitcoin Max Income Covered Call ETF (BAGY). These funds use Bitcoin ETPs and active weekly options strategies to harvest yields from Bitcoin price volatility.
Weekly options for these funds are used to collect premiums 4x more often than monthly options, unlocking the potential for compounded income and enhanced returns. BITY targets growth and high income, aiming to capture Bitcoin price upside and targets 24% annual option premium income. On the other hand, BAGY focuses on maximizing income, seeking a 30%-60% annualized option premium and Bitcoin price appreciation potential up to 5% each week.
The technical model behind BNAV builds on the core methodology of the Fairlead Tactical Sector ETF (TACK). Similar to BNAV, TACK also uses muti-timeframe technical analysis, with an emphasis on indicators to identify long-term trends and significant trend reversals. The fund primarily invests in the 11 State Street Sector SPDR ETFs, with the ability to invest in the SPDR Gold Minishares Trust (GLDM), the State Street SPDR Portfolio Long Term Treasury ETF (SPTL), and the State Street SPDR Portfolio Short Term Treasury ETF (SPTS), in the event that technical models warrant a defensive rotation out of equities.
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