CRYP - AdvisorShares Managed Bitcoin Strategy ETF

Risk Managed Bitcoin Exposure

Simple, risk-managed exposure to bitcoin with the ability to tactically dial up and down exposure from 100% to 0%

Symbol Exchange Inception Date CUSIP
CRYP NYSE Arca 4/27/2022 00768Y339
<strong>What does CRYP invest in?</strong>
The AdvisorShares Managed Bitcoin Strategy ETF (NYSE Arca: CRYP) is an actively managed ETF offering exposure to bitcoin cryptocurrency. CRYP seeks long-term capital appreciation through systematic risk-managed exposure to bitcoin via bitcoin futures ETFs, bitcoin futures contracts, short duration fixed income securities, and cash or cash equivalents. Based on expectations for the value of bitcoin, CRYP can tactically reduce or increase the portfolio’s bitcoin exposure from anywhere from zero to fully invested. CRYP does not invest directly in bitcoin.
<strong>Why Invest in CRYP?</strong>
  • Risk Managed Bitcoin Exposure – CRYP’s tactically offers exposure to bitcoin (via bitcoin futures ETFs and contracts) when the manager’s research and models suggest a future rise in bitcoin’s price. Conversely, bitcoin exposure is reduced (move to short duration fixed income and cash) when a future fall in price is suggested.
  • Non-Correlating Investment – Adding non-correlating investments, such as cryptocurrency exposure or alternatives (i.e., commodities, physical assets, long/short strategies) to your overall investment portfolio may provide diversification and risk management benefits when compared to a traditional long only equity and bond portfolio. 
  • Regulated Access to a Decentralized Asset – CRYP is an SEC-registered ETF, listed on a national exchange, investing in regulated securities trading on U.S. exchanges whose prices are affected by a decentralized, non-regulated cryptocurrency (bitcoin).
<strong>Where Can CRYP Fit in a Traditional Portfolio?</strong>
CRYP is designed to fit in the alternative/non-correlating portion of an overall investment strategy. Additionally, while CRYP is tactically managed for risk, bitcoin futures can be considered highly speculative and is only suitable for investors with a high-risk tolerance.
<strong>Key Attributes</strong>
  • It’s Different – CRYP is a publicly traded bitcoin futures ETF designed to be actively and tactically managed for risk.
  • Experienced Team – CRYP leverages the research and risk management models of Mark Yusko and Morgan Creek’s Digital Assets team.
  • Ease of Access – Offers bitcoin exposure through the liquidity of an ETF that can be held in your brokerage account with your other investments. 
  • Simplifies the Complexities of Bitcoin – CRYP removes the technical and operational details around outright individual bitcoin ownership – i.e., hacking, theft, human error.
<strong>About the Portfolio Manager</strong>
Mark Yusko, Portfolio Manager

Mr. Yusko is the Founder, CEO and Chief Investment Officer of Morgan Creek Capital Management, LLC as well as the Managing Partner of Morgan Creek Digital. Prior to founding Morgan Creek in 2004, Mr. Yusko was CIO and Founder of UNC Management Company, the endowment investment office for the University of North Carolina at Chapel Hill. Before that, he was Senior Investment Director for the University of Notre Dame Investment Office. Mr. Yusko has been at the forefront of institutional investing throughout his career. An early investor in alternative asset classes at Notre Dame, he brought the Endowment Model of investing to UNC, which contributed to significant performance gains for the Endowment. Mr. Yusko is again at the forefront of investing through Morgan Creek Digital, formed in 2018 as an early-stage investor in blockchain technology, digital currency and digital assets. Mr. Yusko received a BA with Honors from the University of Notre Dame and an MBA in Accounting and Finance from the University of Chicago. 

 

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CRYP Overview from Mark Yusko

Get an introduction to the CRYP ETF directly from the portfolio manager, Mark Yusko.

 

CRYP Overview from Mark Yusko

Get an introduction to the CRYP ETF directly from the portfolio manager, Mark Yusko.

Fund

Price History

Fund Data

5/20/2022
NAV $19.19
Change $-0.24
Shares Outstanding 50,000
Assets Under Management $959,324.07

Market Data

5/20/2022
Closing Price $19.23
Close Change $-0.26
Volume 203

Regulatory Data

5/19/2022
Premium Discount $0.070
30-Day Median bid-ask Spread 0.25
NAV Historical Data  

Shares are bought and sold at market price (closing price) not NAV and are not individually redeemed from the Fund. Market price returns are based on the midpoint of the bid/ask spread at 4:00 pm Eastern Time (when NAV is normally determined), and do not represent the return you would receive if you traded at other times. 

FUND

Characteristics

As of 4/26/2022

CRYP Bitcoin Exposure

Source: Morningstar

Fund

Holdings

As of

Excel    CSV

Date Account Symbol Stock Ticker Security Number Security Description Shares/Par (Full) Price (Base) Traded Market Value (Base) Portfolio Weight % Asset Group
05/20/2022 CRYP BITO 74347G440 PROSHARES BITCOIN STRATEGY E 25,150.00 18.19 457,478.50 47.74% MF
BTF 91917A108 VALKYRIE BITCOIN STRATEGY 4,500.00 11.31 50,895.00 5.31% MF
X9USDBLYT BLACKROCK TREASURY TRUST INSTL 62 301,082.99 1 301,082.99 31.42% MM
CASH 148,803.88 100 148,803.88 15.53% CA
Holdings and allocations are subject to risks and to change. A holding identified with an “MM” at the end of its name indicates it is a Money Market fund.

FUND

Fees & Expenses
Management Fee 0.90%
Other Expenses 0.06%
Acquired Fund Fees and Expenses12 0.65%
Total Annual Operating Expenses 1.61%

1 Based on estimated amounts for the current fiscal year.
2 Total Annual Operating Expenses in this fee table may not correlate to the expense ratios in the Fund’s
financial highlights (and the Fund’s financial statements) when available because the financial
highlights include only the Fund’s direct operating expenses and do not include Acquired Fund Fees and
Expenses, which represent the Fund’s pro rata share of the fees and expenses of the exchange-traded
funds (each, an “ETF”) and/or money market funds in which it invests.

  • Before investing you should carefully consider the Fund’s investment objectives, risks, charges and expenses. This and other information is in the prospectus, a copy of which may be obtained by visiting the Fund’s website at www.AdvisorShares.com. Please read the prospectus carefully before you invest. Foreside Fund Services, LLC, Distributor. 
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  • There is no guarantee that the Fund will achieve its investment objective. An investment in the Fund is subject to risk, including the possible loss of principal amount invested.     
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  • Diversification does not guarantee a portfolio will be protected against loss.
  • There is no guarantee the fund will achieve its investment objective. This ETF may not be suitable for all investors. Bitcoin is a relatively new asset with a limited history. It is subject to unique and substantial risks, and historically has been a highly speculative asset and has experienced significant price volatility. While the Fund will not invest directly in bitcoin, the value of the Fund’s investments in Bitcoin Futures and Bitcoin ETFs is subject to fluctuations in the value of the bitcoin, which may be highly volatile.  Investors may lose entire principal.

    When models and data prove to be incorrect or incomplete, any decisions made in reliance thereon expose the Fund to potential risks. In addition, the use of predictive models has inherent risk. Because predictive models are usually constructed based on historical data supplied by third parties, the success of relying on such models may depend heavily on the accuracy and reliability of the supplied historical data.

    Through its investments in Bitcoin ETFs, the Fund is subject to the risks associated with their investments and structure as ETFs. The price and performance of bitcoin futures should be expected to differ from the current “spot” price of bitcoin. These differences could be significant. Bitcoin futures are subject to margin requirements, collateral requirements and other limits that may prevent the ETF from achieving its objective. Margin requirements for futures and costs associated with rolling (buying and selling) futures may have a negative impact on the fund’s performance and its ability to achieve its investment objective.

    Bitcoin is largely unregulated and bitcoin investments may be more susceptible to fraud and manipulation than more regulated investments. 

    As futures contracts approach expiration, they may be replaced by similar contracts that have a later expiration. This process is referred to as “rolling.” If the price of a long-term futures contract is greater than the short-term futures contract price, the market is considered to be in “contango.” If the price of a long-term futures contract is less than the short-term futures contract price, the market is considered to be in “backwardation.” 

    Shares are bought and sold at market price (closing price) not NAV and are not individually redeemed from the Fund. Market price returns are based on the midpoint of the bid/ask spread at 4:00 pm Eastern Time (when NAV is normally determined), and do not represent the return you would receive if you traded at other times.

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  • Definitions   
  • A future contract is an agreement traded on an organized exchange to buy or sell assets, especially commodities or shares, at a fixed price but to be delivered and paid for later.
  • Correlation, in the finance and investment industries, is a statistic that measures the degree to which two securities move in relation to each other. Not-correlating assets tend to move in opposite directions 
  • Liquidity refers to the ease with which an asset, or security, can be converted into ready cash without affecting its market price.