USCF Oil Plus Bitcoin Strategy Fund (WTIB)

Overview

WTIB aims for total return by providing diversified exposure to the performance of the crude oil markets as well as Bitcoin (BTC). As an actively managed exchange-traded fund (ETF), it strategically invests in crude oil and BTC futures contracts along with Bitcoin exchange-traded products (ETPs). The Oil strategy focuses on investing in near-month futures across various types of crude oil, including West Texas Intermediate (WTI), Brent, and other petroleum-based fuels. Complementing this, the Bitcoin strategy allocates funds to cash-settled BTC futures and U.S.-listed Bitcoin ETPs. This dual strategy allows the fund to capitalize on both markets effectively. Additionally, up to 25% of the assets may be allocated to BTC through a Cayman Islands subsidiary, employing leverage to achieve approximately equal notional exposure (around 100%) to both oil and BTC. The fund might also maintain collateral in forms such as cash, cash equivalents, U.S. government securities, and money market funds.

Products and Services

• Crude Oil Futures Contracts

  The fund invests in near-month futures contracts for WTI, Brent, and other crude oil varieties. By focusing on these contracts, WTIB tactically positions itself to benefit from short-term movements in oil prices, providing a direct link to the performance of crude oil markets.

• Bitcoin Futures Contracts

  WTIB incorporates cash-settled BTC futures contracts into its investment strategy. This allows the fund to gain exposure to Bitcoin's price movements without owning the actual cryptocurrency, facilitating efficient trading and risk management.

• Bitcoin Exchange-Traded Products (ETPs)

  The fund also invests in U.S.-listed Bitcoin ETPs, which are securities that track the price of Bitcoin. ETPs provide a simple and regulated way for investors to gain exposure to Bitcoin’s performance, contributing to the fund's overall BTC strategy.

• Micro Futures

  WTIB may invest in micro futures contracts, which are smaller in size compared to standard futures contracts. This approach allows for more flexible positions and can substantially lower the capital required for trading, enhancing accessibility for a broader range of investors.

• Cayman Islands Subsidiary Investment

  Up to 25% of the fund’s assets may be allocated to BTC through a subsidiary based in the Cayman Islands. This structure may offer certain regulatory advantages and can potentially optimize tax efficiency for investments.

• Leverage Strategy

  The fund employs leverage to maintain roughly equal notional exposure to both oil and BTC. By using leverage, WTIB aims to amplify returns on both fronts, striving to balance its exposure and respond dynamically to market fluctuations.

• Collateral Management

  To support its investments, WTIB holds collateral in various forms, such as cash and cash equivalents, U.S. government securities, and money market funds. This collateral serves to mitigate risk and ensure that the fund meets its obligations while optimizing its overall investment portfolio.