ARK 21Shares Active Bitcoin Ethereum Strategy ETF

ARK 21Shares Active Bitcoin Ethereum Strategy ETF (ARKY) is an actively managed exchange-traded fund (ETF) invested in both bitcoin and ether futures contracts. ARKY leverages dynamic allocation, informed by historical pricing relationships and fundamental analysis, to outperform holding bitcoin over a market cycle.

Investment Objective ：The Fund’s objective is capital appreciation.

Fund Strategy：An actively managed exchange-traded fund (ETF) invested in both bitcoin and ether futures contracts. ARKY leverages dynamic allocation, informed by historical pricing relationships and fundamental analysis, to outperform holding bitcoin over a market cycle.

Disclosure：Neither the Fund nor Underlying ETFs invest directly in ether, bitcoin, or other digital assets, or maintain direct exposure to “spot” ether or bitcoin. Investors seeking direct exposure to the price of ether or bitcoin should consider an investment other than the Fund.

Benefits ：

Buy the Market: As the two largest cryptoassets by marketcap, BTC and ETH combine to comprise over 70%* of the digital assets market. ARKY’s dynamic allocation between both assets uses fundamental and quantitative tools to achieve exposure to the overall asset class.

Active Management: ARKY’s allocations are driven by traditional quantitative models and historical correlations to outperform the digital asset market. The portfolio managers apply discretionary, fundamental analysis to adjust weightings based on their qualitative assessments of the market for each asset and expected price movements. In a volatile market, we believe the ability to identify emerging risks and opportunities and adjust the portfolio's exposure accordingly is critical.

Exposure without Complexity: Access the leading digital assets without mastering arcane details of how to safely trade or store them.

Bitcoin Futures and/or Ether Futures expose the Fund to the following risks:

Bitcoin, Bitcoin Futures, Ether, and Ether Futures are relatively new assets and Bitcoin, the Bitcoin network, Ether, and the Ethereum network are subject to rapid changes, uncertainty and regulation that may adversely affect the value of the Bitcoin Futures and/or Ether Futures or the nature of an investment in the Fund, and may adversely affect the ability of the Fund to buy and sell Bitcoin Futures and/or Ether Futures or achieve its investment objective.

Historically, Bitcoin, Bitcoin Futures, Ether, and Ether Futures have been subject to significant price volatility. The price of Bitcoin Futures and Ether Futures may differ significantly from the spot price of Bitcoin and/or Ether and changes in the price of Bitcoin Futures and/or Ether Futures may happen rapidly and without notice.

The market for Bitcoin Futures and/or Ether Futures is less developed than older, more established futures markets (such as corn or wheat futures) and may be more volatile and less liquid than other futures markets. Although this market has grown since Bitcoin Futures and Ether Futures were initially developed, there is no guarantee that the market will continue to develop in ways that support the continued growth and operation of the Fund.

The value of Bitcoin and Ether depends on the development and acceptance of the Bitcoin and/or Ether network, respectively. The slowing or stopping of the development or acceptance of the Bitcoin and/or Ether network may adversely affect an investment in the Fund.

New competing digital assets may pose a challenge to Bitcoin and/or Ether’s current market position, resulting in a reduction in demand for Bitcoin and/or Ether, which could have a negative impact on the price of Bitcoin, Bitcoin Futures, Ether, and Ether Futures, and thus a negative impact on the performance of the Fund.

Blockchain, Digital Asset, Technology and FinTech Companies Risk. Companies that are developing financial technologies that seek to disrupt or displace established financial institutions generally face competition from much larger and more established firms. Such companies may not be able to capitalize on their disruptive technologies if they face political and/or legal attacks from competitors, industry groups or local and national governments.

Liquidity Risk. Liquidity risk is the risk that the Fund might not be able to sell an investment without significantly changing the value of the investment on the Fund’s books. Liquidity risk can be elevated by market disruptions or volatility, and during these periods, it may be difficult or impossible for the Fund to buy or sell an investment, including in Bitcoin Futures and/or Ether Futures, at a desired price.

Derivatives Risk. The Fund’s use of derivatives (in the form of Bitcoin Futures and/or Ether Futures) presents risks different than investing directly in traditional securities. Using derivatives can lead to losses because of adverse movements in the price or value of the underlying reference asset, which may be magnified by features of the derivatives.

Credit Risk. Bonds are subject to credit risk, which is the possibility that the issuer or guarantor of a security will be unable and/or unwilling to make timely interest payments and/or repay the principal on its debt or to otherwise honor its obligations and/or default completely. Debt securities, including bonds, are also subject to interest rate risk. Interest Rate Risk. Debt securities, including bonds, are also subject to interest rate risk. Interest rate risk refers to fluctuations in the value of a bond resulting from changes in the general level of interest rates. When the general level of interest rates goes up, the prices of most debt securities go down. When the general level of interest rates goes down, the prices of most debt securities go up. Rising interest rates increases the potential for periods of volatility and increased redemptions.

New Fund Risk. The Fund is a newly organized, non-diversified management investment company with no operating history. There can be no assurance that the Fund will grow to or maintain an economically viable size, or that an active trading market for the Fund’s shares will develop or be maintained.

Distributed by Quasar Distributors, LLC.

21Shares US LLC is the investment adviser to the ARK 21Shares ETFs.
21Shares is not affiliated with Quasar Distributors, LLC.
21Shares is not affiliated with ARK Investment Management LLC.

21Shares is not affiliated with Empowered Funds, LLC dba ETF Architect.

As sub-adviser to the Funds, ARK Invest provides assistance in the marketing of the Shares.