LBTC Transparency
Reporting of reserves, past performance, greeks exposure, deployment, tenor, and respective target and breach bands.
LBTC Underlying Verification
LBTC Performance
Active Allocation in Detail
An actively managed covered-call overlay that earns income by harvesting the implied-volatility premium in Bitcoin options markets. The Lombard mandate is a conservative iteration of Bitwise's flagship strategy, with the same investment process and risk architecture.
Bitwise writes fully covered calls on Bitcoin. The book draws on outright calls, vertical, diagonal, and calendar spreads, and multi-leg structures including ladders, trees, butterflies, and condors. Strike, sizing, and tenor follow a quantitatively enhanced discretionary process built on Bayesian frameworks and Greek-based guardrails, monitored daily. In low-volatility regimes where premiums do not pay for the risk, the manager reduces exposure or limits new entries.
Returns are measured in BTC terms, and are broadly beta-neutral to price. The strategy tracks the shape and level of Bitcoin's volatility distributions through three structural drivers: variance risk premium (implied versus realized volatility), skew, and kurtosis.
Builds tailored, risk-adjusted SMA solutions through derivatives and structured strategies.
Trades options and manages risk across crypto strategies.
These figures are targets and objectives that Bitwise Investment Manager, LLC (“Bitwise”) seeks to achieve for the Active Allocation only — the specific portion of bitcoin that Lombard (LF (BVI) Ltd.) has placed in a managed account for which Bitwise serves as trading advisor. All figures are calculated by reference to capital within that managed account, not by reference to Lombard’s total bitcoin or other assets, which include amounts Bitwise does not manage. Returns on any larger pool of assets that includes the Active Allocation would be lower than the target shown. These targets are objectives only; there is no assurance they will be achieved, and they are not based on an assumption that past performance will recur. Past performance is not necessarily indicative of future results. “Net” refers to performance after deduction of the management and performance fees payable by Lombard under its managed account with Bitwise. “None” under Leverage means the strategy does not borrow funds or use margin financing and every option position is fully covered by bitcoin held in the account; options nonetheless have leverage-like characteristics, and changes in the value of options positions can be large relative to the premium received. Trading commodity interests, including options on bitcoin, involves substantial risk of loss.
These figures describe how Bitwise typically expects to position the Active Allocation — the portion of bitcoin Lombard has placed under Bitwise’s management — under normal market conditions. All exposure and deployment figures are expressed relative to capital within the Active Allocation; “allocable capital” means capital within the Active Allocation available for deployment in the strategy. Actual positioning will vary with market conditions and may fall outside the ranges shown. Because the strategy sells options, it carries short-option exposure: rising implied volatility or sharp price increases can produce mark-to-market losses on open positions, increase the cost of closing or rolling positions, and cause the strategy to forgo gains above call strike prices. Execution spread figures reflect Bitwise’s historical execution experience in comparable transactions and are not a guarantee of future execution quality. Trading commodity interests, including options on bitcoin, involves substantial risk of loss.
Strategy Track Record
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- Neither the Historical nor Current figures contained negative quarters.
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- Current data is from January 2026 – June 2026; no full year data is available.
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- Past performance is not necessarily indicative of future results, and there is no guarantee that the strategy will achieve its objectives or avoid substantial losses, including loss of principal. An investment in this strategy involves a high degree of risk. See “Bitwise Disclosures” below for additional information regarding risks.
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- Performance for the period January 2022 – December 2025 reflects the track record of a predecessor strategy managed by Gordon Grant prior to joining Bitwise Asset Management. This performance was not achieved while managing assets at Bitwise. The strategy’s investment mandate, process, and risk parameters are substantially similar to those employed at Bitwise. Performance from January 2026 onward reflects accounts managed by Bitwise Investment Manager, LLC.
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- Performance shown is from a single representative account and is not a composite of all accounts managed under this strategy. Other accounts managed under the same strategy may have experienced different results due to differences in account size, timing, deployment levels, and other factors. The representative account was selected because it is believed to be representative of the performance of all reasonably comparable accounts for the periods shown; however, there can be no assurance that any other account has achieved or will achieve similar results.
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- Net returns are presented on a pro-forma basis, calculated by deducting management fees and performance compensation at the rates applicable under the managed account agreement between LF (BVI) Ltd. and Bitwise Investment Manager, LLC from the representative account’s gross returns. Pro-forma net returns do not reflect trading costs, custodial fees, or other operational expenses, which would further reduce returns. The fee rates used represent the most conservative (i.e., highest) tier under the applicable fee schedule. Pro-forma net returns are not the actual returns of any account and are provided for illustrative purposes only. Actual net returns of the Account will differ from those shown.
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- Returns are calculated based on the change in BTC in the account, not the dollar value of BTC holdings. A positive return in BTC terms may coincide with a negative return in USD terms.
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- For the period beginning January 2026, monthly returns are calculated by dividing net performance by beginning-of-period net asset value. For the period January 2022 – December 2025, monthly returns are calculated by dividing historical gross performance by beginning-of-period gross asset value, and then applying the relevant fee rate. The fee rate used represents the most conservative (i.e., highest) tier under the applicable fee schedule. Annual returns and YTD returns reflect the compounding of monthly returns. Returns do not reflect the reinvestment of income, as premium income remains within the account’s BTC balance.
Cryptographically signed,
day after day.
Bitwise provides the data for the Active Allocation's risk metrics as cryptographically signed, timestamped daily records.
The Daily Signed Record; What the Signature Does and Does Not Establish. Once per day, Bitwise applies a digital signature to a single consolidated data file using a private key held in hardware-protected key infrastructure. The figures, tables, and charts on this page are drawn from that file but are displayed by Lombard without a signature. Verification is performed against the consolidated signed file using Bitwise’s published public key, and if a displayed figure differs from the signed file, the signed file is the authoritative record.
The signature establishes origin and integrity only: it permits anyone to confirm that a daily file was produced by Bitwise and has not been altered since signing. It is not an audit, an attestation under any accounting or assurance standard, a certification of accuracy, or a guarantee of any result. The signature is applied automatically and establishes nothing about whether the figures are correct; a calculation error or erroneous third-party input would produce a validly signed file containing an incorrect figure. The date and time in each file are Bitwise’s own statements, not confirmed by any independent timestamping authority, and while each daily file is individually tamper-evident, the signature does not establish that the daily series is complete. The signed file contains the day’s net asset value, profit and loss, yield figure, and risk and transparency metrics for the strategy. It does not address LBTC reserve backing, which is covered separately through Lombard’s Proof of Reserve process.
Bitwise Disclosures
Informational Purposes Only; Not Investment Advice. The information on this page is provided by Lombard Finance for informational and educational purposes only. Nothing on this page constitutes financial, legal, tax, or investment advice, a recommendation or endorsement of any investment strategy, or an offer to sell or solicitation of an offer to buy any security, commodity interest, digital asset, or other financial instrument. You should independently evaluate the matters presented here and consult your own advisors before making any decisions.
About the Strategy Manager (Commodity Trading Advisor). Bitwise Investment Manager, LLC (“Bitwise”) is a commodity trading advisor registered with the U.S. Commodity Futures Trading Commission and a member of the National Futures Association (NFA ID: 0552698). Registration as a CTA does not imply any particular level of skill or training. Bitwise manages a segregated account on behalf of LF (BVI) Ltd. pursuant to a managed account agreement (the “Account”). Bitwise’s authority is limited to executing options trades within agreed risk parameters; it cannot withdraw, transfer, or pledge the underlying bitcoin. Bitwise has no relationship with, and owes no duties to, holders of LBTC. Any obligations to LBTC holders are solely those of LF Operations Inc. as set forth in Lombard’s Terms of Service, LBTC Product Terms and Risk Disclosures.
Performance Information. Historical performance data shown on this page reflects the returns of the strategy prior to the LBTC mandate (and, before 2026, at a predecessor manager) and does not represent the actual returns of the Account. Where gross returns are presented, they are shown before the deduction of management fees, performance fees, and other expenses, all of which will reduce actual returns. Net returns reflect the deduction of applicable fees and expenses. Actual net returns experienced by the Account may differ materially from the strategy returns shown due to, among other factors, differences in account size, timing, deployment levels, and fee arrangements. PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. There is no guarantee that the strategy will achieve its objectives or avoid substantial losses, including loss of principal. The value of digital assets can go down as well as up. Performance may vary substantially over time, including from month to month. No representation is made that any account will achieve results similar to those shown.
Targets, Projections, and Forward-Looking Statements. Certain statements on this page, including target APY, target return ranges, risk metric ranges, deployment targets, and descriptions of expected strategy behavior across market scenarios, are forward-looking statements reflecting current expectations and assumptions. These statements are identified by terms such as “target,” “expected,” “designed to,” and similar expressions. Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially, including market volatility, liquidity conditions, counterparty performance, regulatory developments, and other factors described below. No representation or warranty is made that any target, projection, or estimate will be achieved. Targets and projections should not be relied upon as predictions of future performance or guarantees of future results.
Risk Factors. The strategy involves writing covered call options on bitcoin, which limits upside participation in exchange for premium income. In a sharply rising bitcoin market, short call positions may result in mark-to-market losses if implied volatility underprices the move, and the strategy may underperform relative to holding bitcoin outright. Other risks include, but are not limited to: (i) the general volatility and unpredictability of digital asset markets; (ii) counterparty credit risk in over-the-counter derivatives transactions; (iii) custody and operational risk associated with holding and trading digital assets; (iv) liquidity risk, including the possibility of wide bid-ask spreads and inability to close or roll positions; (v) regulatory risk, as the legal framework for digital assets and derivatives continues to evolve; and (vi) technology, cybersecurity, and smart contract risks inherent in blockchain-based systems. Digital asset investments are speculative and involve a high degree of risk. You could lose all or a substantial portion of your investment. For a full description of risks applicable to LBTC, please review Lombard’s Risk Disclosures.
Third-Party Information. Certain information on this page, including strategy performance data, risk metrics, portfolio parameters, and investment team information, has been provided by or derived from third-party sources. Lombard Finance believes these sources to be reliable but has not independently verified the accuracy or completeness of such information and makes no representation or warranty with respect thereto. References to the experience, qualifications, or track records of individual investment professionals are provided for informational purposes only and are not indicative of future performance. References to specific counterparties, custodians, or service providers are for identification purposes only and do not constitute endorsements.
Visual Aids. The graphs, charts, and other visual aids on this page are provided for informational purposes only. They cannot, in and of themselves, be used to make investment decisions. No representation is made that these visual aids will assist any person in making investment decisions or that they capture all factors and variables required in making such decisions.
Geographic Restrictions. LBTC is not available to, and may not be accessed or used by, persons located in, incorporated in, or resident in the United States, the United Kingdom, or other restricted or sanctioned jurisdictions as described in Lombard’s Terms of Service. It is your responsibility to ensure that your use of any Lombard product complies with all applicable laws in your jurisdiction.
No Fiduciary Relationship. Nothing on this page creates a fiduciary, advisory, or agency relationship between Lombard Finance, Bitwise, or any of their affiliates and any visitor to this page or holder of LBTC. Lombard Finance is not registered with, authorized by, or regulated by any financial regulatory authority in connection with the LBTC protocol.
Additional Terms. Your use of this page and any Lombard product is governed by Lombard’s Terms of Service, LBTC Product Terms, Risk Disclosures, and Privacy Policy. Information on this page is current as of the date shown and is subject to change without notice. Lombard Finance is under no obligation to update any information contained herein.
Lombard Disclosures
Informational Purposes Only; No Advice; No Offer. The following disclosures are made by LF Operations Inc. (the “Issuer”) and relate to LBTC and the information Lombard presents on this page; they are not made by, and do not speak for, Bitwise. Nothing on this page is financial, legal, tax, or investment advice, a recommendation, or an offer or solicitation to buy or sell any security, commodity interest, or digital asset. Consult your own advisors before making any decisions.
About LBTC. LBTC is issued by the Issuer; references to “Lombard” refer to the Issuer and its affiliates. Assets backing LBTC may be held by the Issuer or through designated affiliates or third-party qualified custodians, as described in the LBTC Product Terms. LBTC is not a security, bank deposit, or e-money, is not legal tender, and is not insured or guaranteed by any government or deposit-insurance scheme. Its market price is set by third-party markets, may deviate from the value of the assets backing LBTC, and is not pegged or supported by the Issuer. Holding LBTC alone conveys no claim against the Issuer; rights in respect of LBTC, including redemption rights of eligible direct users, are solely as set out in the LBTC Product Terms and Terms of Service.
Yield. The target APY shown is a target only, not a promise or entitlement, and may not be achieved in any period. LBTC yield reflects the net performance of the deployment of assets backing LBTC, after applicable fees and costs; it is variable, is not guaranteed, may be zero, and the amount of BTC for which LBTC may be redeemed may decrease as well as increase. Losses in the yield strategies reduce redemption value, and LBTC holders bear that economic risk. Yield figures shown are historical and are not a reliable indicator of future yield. Any buffer or reserve is discretionary, is not a guarantee, and may be reduced or discontinued at any time. The Issuer may charge fees and costs as described in the LBTC Product Terms.
Risk Factors. The yield strategies involve trading bitcoin options, which limits upside participation and can produce losses, particularly in sharply rising markets. LBTC also involves, among other risks: smart contract, bridge, and blockchain network risks; secondary-market risk, including LBTC trading below the value of the assets backing it; suspension or delay of redemptions; custodian and counterparty risk; and evolving regulatory treatment. You could lose the full value of your LBTC. See Lombard’s Risk Disclosures and the LBTC Product Terms for a full description.
Targets and Forward-Looking Statements. Statements regarding targets — including target APY, deployment schedules, and allocation ranges — and expected strategy behavior are forward-looking, reflect current assumptions, and are subject to risks that may cause actual results to differ materially. No assurance is given that any target will be achieved.
Third-Party and Strategy Information. Strategy performance data, risk metrics, daily records, portfolio parameters, and investment team information are provided by the strategy manager or other third parties. Lombard believes these sources to be reliable but has not independently verified this information and makes no representation or warranty as to its accuracy or completeness. Charts and other visual aids are illustrative only and cannot, by themselves, be used to make investment decisions.
Proof of Reserve; Page Information. Proof of Reserve verifies on-chain reserve information at a point in time under its published methodology; it is not an audit, an attestation under any assurance standard, or a certification of the sufficiency of the assets backing LBTC. Information on this page speaks only as of its stated time, is not audited unless expressly stated, is subject to no duty to update, and is provided without representation or warranty; it may not be relied upon as a guarantee of the sufficiency of the assets backing LBTC.
Redemptions. Redemption timing figures shown are operational targets, not guarantees. Redemption availability, eligibility, minimums, processing periods, and the circumstances in which redemptions may be suspended or delayed are governed solely by the LBTC Product Terms and Terms of Service.
Geographic Restrictions. LBTC is not available to persons located in, incorporated in, or resident in the United States, the United Kingdom, or other restricted or sanctioned jurisdictions described in the Terms of Service. You are responsible for ensuring your use of any Lombard product complies with the laws of your jurisdiction.
No Fiduciary Relationship. Nothing on this page creates a fiduciary, advisory, or agency relationship between the Issuer or its affiliates and any visitor to this page or holder of LBTC.
No Reliance; Errors. The information on this page does not form part of the LBTC Product Terms or any agreement and gives rise to no representation, warranty, or liability of the Issuer or its affiliates. Errors may occur in the production or display of information; to the maximum extent permitted by law, the Issuer and its affiliates disclaim liability for any loss arising from reliance on it. In the event of any discrepancy, the LBTC Product Terms, the Terms of Service, and the official records of the applicable custodians and service providers govern.
Additional Terms. Use of this page and any Lombard product is governed by the Terms of Service, the LBTC Product Terms, Risk Disclosures, and Privacy Policy. Information is current as of the date shown and subject to change without notice; the Issuer has no obligation to update it.