AdvisorShares Managed Bitcoin Strategy ETF (CRYP)

Overview

The fund described is an actively managed exchange-traded fund (ETF) with a focus on the cryptocurrency market, particularly Bitcoin. Instead of direct investment in Bitcoin, the fund employs a strategy that involves investment in various financial instruments related to Bitcoin and other secure assets. The primary goal of the fund is to provide investors an exposure to Bitcoin's price movements through U.S. exchange-traded Bitcoin futures contracts and U.S. ETFs that invest in these Bitcoin futures. Additionally, the fund aims to maintain liquidity and manage risk by investing in U.S. government securities, money market funds, short duration fixed income ETFs, and cash or cash equivalents. This diversified approach allows the fund to avoid direct investment in Bitcoin while still offering investors the opportunity to gain from its market movements. It is classified as non-diversified, meaning it may concentrate its investments more than a diversified fund would.

Products and Services

• U.S. ETFs Investing in Bitcoin Futures

  This component of the fund's portfolio includes investments in U.S. ETFs that are focused on Bitcoin futures contracts traded on U.S. exchanges. These ETFs offer the fund exposure to the price movements of Bitcoin through the futures market, mitigating the risk and complexities associated with direct investment in cryptocurrencies.

• U.S. Exchange-Traded Bitcoin Futures Contracts

  Direct investment in U.S. exchange-traded Bitcoin futures contracts allows the fund to speculate on the future price of Bitcoin. This approach provides the benefits of leverage and liquidity, as futures contracts can be bought and sold in the financial markets without the need to hold the actual cryptocurrency.

• U.S. Government Securities, Money Market Funds, and Short Duration Fixed Income ETFs

  To manage risk and ensure liquidity, the fund invests a portion of its capital in secure assets, including U.S. government securities, money market funds, and short-duration fixed income ETFs. These investments offer stability and safety, serving as a hedge against the volatility inherent in the cryptocurrency market.

• Cash and Cash Equivalents

  The inclusion of cash and cash equivalents in the fund’s portfolio provides further liquidity, allowing for the efficient management of investments and the ability to respond quickly to market movements. This strategy ensures that the fund can cover its obligations and take advantage of new investment opportunities as they arise.