Simplify launches an innovative ETF combining income generation and Bitcoin
NEW YORK–(BUSINESS WIRE)–Simplify Asset Management (“Simplify”)an innovative provider of exchange-traded funds (“ETFs”), today announces the launch of its brand new fund, the Simplify Bitcoin Strategy PLUS Income ETF (NASDAQ: MAXI).
MAXI is the first ETF designed to offer investors not only exposure to bitcoin, but also the ability to generate income by selling short-term buy or sell spreads on the world’s most liquid equity indices. The Fund aims for 100% bitcoin exposure by investing in the first month CME futures contract, while on the income side, a sophisticated option writing algorithm dynamically selects the option type, underlying and exercise prices with the aim of generating attractive risk-adjusted returns. A second level of risk control then seeks to mitigate the tail risks associated with writing options.
“We are very excited to launch MAXI, providing investors with a capital-efficient way for the first time to simultaneously gain exposure to bitcoin while potentially adding significant income to a portfolio,” said Paul Kim, CEO and co-founder of Simplify.
“Whatever directional call an investor may want to make on bitcoin, MAXI can play a key role, as the income component of the Fund can help add to upside returns while also acting as a hedge on the downside. decline due to the ‘padding’ this income can deliver in potential drawdowns for bitcoin,” Paul added.
MAXI is listed on Nasdaq and has a gross spend rate of 0.97%. The fund is the second bitcoin-related offering in the fast-growing Simplify ETF lineup, joining the Simplify US Equity PLUS GBTC ETF (SPBC)which seeks 100% investment in US stocks with a concurrent 10% exposure to bitcoin through the Grayscale Bitcoin Trust (GBTC).
Other recent additions to the Simplify family of funds include the ETF Simplify macro strategy (FIG), actively managed by well-known portfolio manager Michael Green; the ETFs Simplify Managed Futures Strategy (CTA); and the Simplify Interest Rate Hedge ETF (PFIX)one of the best performing ETFs across all categories at the end of Q3 2022.
ABOUT SIMPLIFY ASSET MANAGEMENT INC.
Simplify Asset Management Inc. is a registered investment adviser founded in 2020 to help advisers address the most pressing portfolio challenges through an innovative set of options-based strategies. By taking into account real investor needs and market behavior, as well as the non-linear power of options, our strategies deliver the tailored portfolio results that clients seek. For more information, visit www.simplify.us.
Option: An option is a contract that gives the buyer the right to buy (in the case of a call option) or sell (in the case of a put option) an underlying asset at a price predetermined (“strike”) by a specific date (“expiration”). An “outright” is another name for a single option leg. A “spread” is when options are bought at one strike price and an equal number of options are sold at a different strike price, all at the same expiration.
Sampling : How far an investment or trading account has fallen from the peak before returning to the peak.
Investors should carefully consider the investment objectives, risks, charges and expenses of Exchange Traded Funds (ETFs) before investing. To obtain an ETF’s prospectus containing this and other important information, please call (855) 772-8488 or visit SimplifyETFs.com. Please read the prospectus carefully before investing.
An investment in the fund involves risks, including possible loss of capital.
The fund is actively managed and is subject to the risk that the strategy may not produce the expected results. The fund is new and has a limited operating history to assess.
The earnings and prospects of small and medium-sized businesses are more volatile than those of large companies and may experience higher failure rates than large companies. Small and medium-sized companies normally have a lower trading volume than large companies, which may tend to cause their market price to fall disproportionately more than large companies in response to selling pressures and may have markets, limited product lines or financial resources and lack live management.
The Fund invests in ETFs (exchange traded funds) and is therefore subject to the same risks as the underlying securities in which the ETF invests and entails higher expenses than if it were invested directly in the underlying ETF. underlying.
Bitcoin Risk: The value of the Fund’s investment in bitcoin futures is subject to fluctuations in the value of bitcoins. The value of bitcoins is determined by the supply and demand for bitcoins in the global bitcoin trading market, which consists of transactions on electronic bitcoin exchanges (“bitcoin exchanges”). Prices on Bitcoin exchanges and other venues can be volatile and can negatively affect the value of Bitcoin futures contracts. Currently, there is relatively low usage of bitcoins in the retail and commercial market compared to relatively high usage of bitcoins by speculators, thus contributing to price volatility which could negatively affect the Fund’s investment in securities. bitcoin futures. Bitcoin transactions are irrevocable, and stolen or mistransferred bitcoins may be unrecoverable. Accordingly, any improperly executed bitcoin transaction could adversely affect the value of the Fund’s investment in bitcoin futures.
Cryptocurrency risk: Cryptocurrencies operate without a central authority or bank and are not backed by any government. Cryptocurrencies can experience very high volatility, and related investment vehicles that invest in cryptocurrencies can be affected by this volatility. Cryptocurrency is not legal tender. Federal, state, or foreign governments may restrict the use and exchange of cryptocurrency, and regulations in the United States are still in development. Cryptocurrency exchanges have stopped working and have permanently closed due to fraud, technical issues, hackers or malware. Cryptocurrency exchanges are new, largely unregulated, and can be more prone to fraud.
Tax risk related to crypto-currencies: Because the Subsidiary is a controlled foreign corporation, any income received by the Fund from its investments in the Subsidiary will flow through to the Fund as ordinary income, which may be taxed at less favorable rates than capital gains.
Futures contract risk: Futures contracts involve the following risks (a) imperfect correlation between the change in the market value of the instruments held by the Fund and the price of the futures or futures contract; (b) the possible absence of a liquid secondary market; (c) leverage, which means that a small percentage of assets in futures contracts may have a disproportionate impact on the Fund and the Fund may lose more than the principal amount invested; (d) the losses are potentially unlimited; (e) the possibility that the counterparty will default on its obligations.
Risk related to wholly-owned subsidiaries: The cost of investing in the Fund will be higher because you indirectly bear the costs of the Subsidiary. The Subsidiary is not registered under the Investment Company Act of 1940 (“1940 Act”), as amended, and, except as set out in this Prospectus, is not subject to all investor protections of the 1940 Act, such as limits on leverage when considered in isolation from the Fund.
Although the option overlay is intended to enhance the performance of the Fund, there can be no assurance that it will do so. The use of an option overlay strategy involves the risk that as the buyer of a put or call option, the Fund may lose the entire premium invested in the option if the Fund does not exercise the option. In addition, securities and options traded in over-the-counter markets may trade less frequently and in limited volumes and therefore present more volatility and liquidity risk.
Simplify ETFs are distributed by Foreside Financial Services, LLC.
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