Fund holdings are subject to change at any time and should not be considered a recommendation to buy or sell any security

 

Definitions

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Risk Range™ Signals: Based on Hedgeye's proprietary model, which utilizes price, volume and volatility across multiple durations to suggest market entry and exit points for an investable asset.

 

Important Information

 

Before investing in the Fund, the investment objective, risks, charges and expenses must be considered carefully. The statutory prospectus contains this and other important information about the Fund. Copies may be obtained by visiting www.hedgeyeam.com/HBIT or calling +1 (888) 711-8292. Read it carefully before investing.

 

Investing involves risks including the risk of principal loss. The Adviser is newly formed and has limited experience managing an ETF. Accordingly, investors in the Fund bear the risk that the Adviser's inexperience may limit its effectiveness.

 

The Fund is a recently organized management investment company with no operating history. As a result, prospective investors do not have a track record or history on which to base their investment decisions.

 

Market data and statistics referenced herein are as of the dates indicated, are obtained from sources believed to be reliable, and are provided for informational purposes only. Such information does not constitute a forecast, projection or recommendation, does not reflect the performance of the Fund, and should not be relied upon as an indication of future market conditions or Fund results. Past market conditions are not indicative of future results.

 

Investing in the Fund is not equivalent to investing in bitcoin. The Fund does not invest directly in bitcoin or any other digital asset, and the Fund's performance will differ from that of bitcoin. The Fund's options contracts will limit the Fund's participation in any gains in the price of the Reference Asset and may not offset all losses related to any decreases in value experienced by the Reference Asset. There is no assurance that the Fund's hedging techniques will be effective, and such techniques involve costs that may reduce gains or result in losses.

 

Bitcoin and Digital Asset Risk. The trading prices of many digital assets, including bitcoin, have experienced extreme volatility in recent periods and may continue to do so. Extreme volatility in the future, including further declines in the trading price of bitcoin, could have a material adverse effect on the value of the Shares, and the Shares could lose all or substantially all of their value. Digital assets represent a new and rapidly evolving industry, and the value of the Shares depends on the acceptance of bitcoin. Bitcoin and the bitcoin market are subject to extensive and evolving regulation, and changes in laws, regulations, regulatory interpretations, enforcement priorities or judicial decisions may adversely affect the value of bitcoin and, consequently, the value of the Fund's Shares.

 

Options Risk. The use of options involves investment strategies and risks different from those associated with ordinary portfolio securities transactions and depends on the ability of the Fund's portfolio managers to forecast market movements correctly. The prices of options are volatile. There is no assurance that the Fund will be able to effect closing transactions at any particular time or at an acceptable price, and there may at times not be a liquid secondary market for certain options.

 

Cyber Security Risk.  The Fund is susceptible to operational risks through breaches in cyber security. A breach in cyber security refers to both intentional and unintentional events that may cause the Fund  to lose proprietary information, suffer data corruption or lose operational capacity.

 

Digital Assets/Cryptocurrency Risk. The performance of the Reference Asset, and consequently the Fund’s performance, is subject to the risks of the digital-assets/cryptocurrency industry. The trading prices of many digital assets, including the Reference Asset, have experienced extreme volatility in recent periods and may continue to do so. Extreme volatility in the future, including further declines in the trading prices of    the Reference Asset, could have a material adverse effect on the value of the Fund’s shares and the Shares could lose all or substantially all of their value.

 

FLEX Options Risk. FLEX Options held by the Fund will be exercisable at the strike price only on their expiration date. FLEX Options are listed on an exchange; however, it is not guaranteed that a liquid secondary trading market will exist. In the event that trading in the FLEX Options is limited or absent, the value of the FLEX Options may decrease.

 

Key Man Risk. Hedgeye Risk Management's ability to publish Risk Range™ Signals daily, which are a critical input to the Fund, is heavily dependent on the manual activities of a single individual. In that individual's absence, the Risk Range™ Signals will be published by another individual using a formula that incorporates the same factors but is not identical. If that individual were to leave Hedgeye Risk Management or become unable to calculate the Risk Range™ Signals, the Signals may not function as designed and may adversely impact the Fund.

 

Risk Range™ Signal Publication Risk. The Risk Range™ Signals are made available daily by Hedgeye Risk Management to other subscribers, including both retail and institutional investors. The Adviser receives the Risk Range™ Signals at the same time as all other subscribers. As a result, subscribers may be able to act on the daily Risk Range™ Signals ahead of the Fund.

 

Non-Diversification and Concentration Risk. The Fund is non-diversified, which means that it may invest a greater percentage of its assets in a particular issuer than a diversified fund. Non-diversification increases the risk that the value of the Fund could go down because of the poor performance of a single investment or limited number of investments. The Fund will be concentrated in the industry or group of industries assigned to bitcoin and the Reference ETPs.

 

Transaction Cost and Cash Redemption Risk. Because the Fund turns over its option positions weekly or more frequently, it will incur high transaction costs, which may affect the Fund's performance and may result in higher taxes when Shares are held in a taxable account. The Fund may be required to sell or unwind portfolio investments to obtain the cash needed to distribute redemption proceeds, which may cause it to incur brokerage costs and to recognize capital gains it might not have recognized had it made a redemption in-kind.

 

ETFs are subject to additional risks that do not apply to conventional mutual funds, including the risks that the market price of an ETF's shares may trade at a premium or discount to its net asset value, an active secondary trading market may not develop or be maintained, or trading may be halted by the exchange on which they trade, which may impact an ETF's ability to sell its shares. Shares of any ETF are bought and sold at market price (not NAV) and are not individually redeemed from the ETF. Brokerage commissions will reduce returns.

 

For additional information about these and other fund risks, please refer to the "Principal Investment Risks" section of the prospectus.

 

Neither the Fund nor the Adviser is affiliated with the iShares® Bitcoin Trust ETF or any other Reference ETP. Hedgeye Asset Management, LLC is a separate legal entity from Hedgeye Risk Management, LLC. All HAM asset management services are made independently by portfolio managers at HAM and, as such, funds may vary from HRM research.

 

The Distributor is Foreside Fund Services, LLC.