Bitwise: Introducing a New Type of Bitcoin-Linked ETF

You are receiving this email as a registered member of Morningstar.com and have asked to receive features, products and services from third party companies. This is a paid advertisement from the sponsor. A new type of bitcoin-linked ETF, designed for long-term investors. --------------------------------------------------------------- Bitwise Bitcoin Strategy Optimum Roll ETF [Bitwise: Read Now] The new Bitwise Bitcoin Strategy Optimum Roll ETF (ticker: BITC) is designed specifically for advisors and buy-and-hold investors. It’s a way to potentially upgrade clients’ bitcoin exposure for the long term. BITC was developed by Bitwise Asset Management, a leading U.S.-based crypto asset manager serving a growing list of over 1,000 RIAs, advisor teams, and family offices.The new Bitwise Bitcoin Strategy Optimum Roll ETF (ticker: BITC) is designed specifically for advisors and buy-and-hold investors. It’s a way to potentially upgrade clients’ bitcoin exposure for the long term. BITC was developed by Bitwise Asset Management, a leading U.S.-based crypto asset manager serving a growing list of over 1,000 RIAs, advisor teams, and family offices. What Makes BITC Unique BITC utilizes a distinct “optimum roll” investment strategy based on decades of research to minimize inefficiencies often seen in bitcoin-linked ETFs. --------------------------------------------------------------- - Many bitcoin-linked ETFs invest primarily in front-month strategies. While desirable for short-term traders, front-month strategies can generate high roll costs when markets are in contango.1 - BITC takes a different approach. The strategy considers all available contracts across the futures curve and intelligently selects those with the lowest level of contango (or highest level of backwardation) to maximize long-term returns. The fund does not invest directly in Bitcoin. - Decades of research on commodities pricing finds that optimum roll strategies have typically outperformed front-month strategies over longer investing periods.2 --------------------------------------------------------------- With BITC, advisors now have a way to access bitcoin exposure for the long term through a regulated ETF, with 1099s and no K-1. The fund is supported by Bitwise’s nationwide team of relationship managers, who are dedicated to helping advisors successfully navigate the space. Learn more at [BITCETF.com]( or reach out to your local Bitwise investment consultant. (1) Contango refers to a scenario in which the futures price of a commodity is higher than the spot price. (2) Gomes, M. [“Harvesting Commodity Curve Premiums Through Roll-Yield Differentials”]( Journal of Alternative Investments, 2015, 18 (2), pp.51-60; Erb, C., and C. Harvey [“The Strategic and Tactical Value of Commodity Futures,”]( Financial Analysts Journal, 62 (2), (2006), pp. 69-97. [Bitwise: Read Now] A dedicated team of crypto experts that speak your language. Connect with a local Bitwise professional today. [Talk with us]( Bitwise Asset Management, 400 Montgomery Street, Suite 600, San Francisco, CA 94104 United States  RISK DISCLOSURE AND IMPORTANT INFORMATION Carefully consider the investment objectives, risk factors, charges, and expenses of the Bitwise Bitcoin Strategy Optimum Roll ETF (BITC) before investing. This and additional information can be found in the Fund’s full or summary prospectus, which may be obtained by visiting [www.BITCETF.com](. Investors should read it carefully before investing. Investing involves risk, including the possible loss of principal. There is no guarantee or assurance that the Fund’s methodology will result in the Fund achieving positive investment returns or outperforming other investment products. The Fund invests in Bitcoin Futures Contracts. The Fund does not invest directly in or hold bitcoin. As a result, the price of Bitcoin Futures Contracts should be expected to differ from the current cash price of bitcoin, which is sometimes referred to as the “spot” price of bitcoin. Consequently, the performance of the Fund should be expected to perform differently from the spot price of bitcoin.These differences could be significant. Shares of ETFs are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. Brokerage commissions will reduce returns. Risk of Loss. The market for bitcoin futures contracts is still developing and may be subject to periods of illiquidity. During such times it may be difficult or impossible to buy or sell a position at the desired price. Investors in the fund should be willing to accept a high degree of volatility in the price of the Fund’s shares and the possibility of significant losses. An investment in the fund involves a substantial degree of risk. Blockchain Technology Risk. Certain of the Fund’s investments may be subject to the risks associated with investing in blockchain technology. The risks associated with blockchain technology may not fully emerge until the technology is widely used. Blockchain systems could be vulnerable to fraud, particularly if a significant minority of participants colluded to defraud the rest. Because blockchain technology systems may operate across many national boundaries and regulatory jurisdictions, it is possible that blockchain technology may be subject to widespread and inconsistent regulation. Borrowing Risk. The Fund may borrow for investment purposes using reverse repurchase agreements. The cost of borrowing may reduce the Fund’s return. Borrowing may cause a Fund to liquidate positions under adverse market conditions to satisfy its repayment obligations. Frequent Trading Risk. The Fund regularly purchases and subsequently sells (i.e., “rolls”) individual futures contracts throughout the year so as to maintain a fully invested position. As the contracts near their expiration dates, the Fund rolls them over into new contracts. This frequent trading of contracts may increase the amount of commissions or mark-ups to broker-dealers that the Fund pays when it buys and sells contracts, which may detract from the Fund’s performance. Leverage Risk. The Fund seeks to achieve and maintain the exposure to the spot price of bitcoin by using leverage inherent in futures contracts. Therefore, the Fund is subject to leverage risk. Non-Diversification Risk. As a nondiversified fund, the Fund may hold a smaller number of portfolio securities than many other funds. To the extent the Fund invests in a relatively small number of issuers, a decline in the market value of a particular security held by the Fund may affect its value more than if it invested in a larger number of issuers. Recency Risk. The Fund is recently organized, giving prospective investors a limited track record on which to base their investment decision. Bitwise Investment Manager, LLC serves as the investment advisor of the fund. The Fund is distributed by Foreside Fund Services, which is not affiliated with Bitwise Investment Manager LLC, Bitwise, or any of its affiliates.  [Advertisement] [View online]( | [Unsubscribe]( from future Advertising Products and Features email | [Update]( your email preferences If you have questions about Morningstar.com or your membership, please send a note to joe@morningstar.com. [Click here]( to learn about Morningstar's privacy policy. © 2023 Morningstar, Inc. All Rights Reserved. 22 W. Washington St. Chicago, IL 60602