The IBIT enters short positions of the Amplify Transformational Data ETF (BLOK), a leading actively managed ETF that provides exposure to companies in the crypto and blockchain ecosystem.
“We remain very optimistic about the growth of crypto and the digital asset ecosystem over the next few years. However, given the recent onset of the crypto winter – the flood of layoffs and lost revenue – we believe that short positions such as Coinbase, Galaxy and Robinhood, as well as those involved in the metaverse, such as Meta and Roblox, will provide downside protection in the current environment,” said Sylvia Jablonski, CEO and CIO of Defiance ETFs.
About Defiance ETFs
The dynamic sequel to Defiance Thematic ETFs allows private and institutional investors to express a targeted view of dynamic sectors at the forefront of breakthrough innovations.
The Fund’s investment objectives, risks, charges and expenses should be considered carefully before investing. The prospectus contains this and other important information about the investment company. Please read it carefully before investing. A hard copy of the prospectus may be requested by calling 833.333.938 or visiting www.defianceetfs.com/ibit
For more information and to obtain a prospectus for the Amplify ETF, BLOK, please visit https://amplifyetfs.com/blok. BLOK is distributed by Foreside Fund Services, LLC
Investing involves risk. An investor could lose the entire principal value of their investment in a single day. As an ETF, the fund may trade at a premium or discount to the net asset value. ETF Shares are bought and sold at market price (not net asset value) and are not individually redeemed by the Fund. Brokerage commissions will reduce returns.
The Fund is not diversified and may invest a greater portion of its assets in the securities of a single issuer or a smaller number of issuers, which makes it more subject to associated risk. The Fund is a newly incorporated investment company with no operating history or track record for investors to assess. There can be no assurance that the Fund will achieve its investment objective.
The Fund’s investments in derivatives, including swap agreements, may present additional and greater risks than those associated with a direct investment in securities. Derivative contracts generally have leverage inherent in their terms. Therefore, a relatively small price movement can result in an immediate and substantial loss for the Fund. The use of leveraged derivative instruments may amplify the Fund’s potential for gain or loss and therefore amplify the effects of market volatility on the Fund’s share price.
The Fund is designed as a short-term trading vehicle and is intended for use by investors who intend to actively monitor and manage their portfolios. The Fund is designed for use by sophisticated investors only, such as traders and active investors employing dynamic strategies. Investors should (a) understand the consequences of seeking daily inverse investment results; and (b) understand the risk of short circuiting. Investors who do not understand the Fund or who do not intend to actively manage their funds and monitor their investments should not purchase the Fund. This Fund is not suitable for all investors.
The Fund bypasses the Amplify ETF which invests in companies actively engaged in blockchain and crypto technology. Businesses that rely heavily on technology are particularly vulnerable to rapid changes in technology product cycles, rapid product obsolescence, government regulation, competition, and cybersecurity incidents. Neither the Amplify ETF nor the IBIT invest directly in bitcoin or cryptocurrency.
Blockchain is a system of recording information in a way that makes it difficult to modify the system. A blockchain is a digital ledger of transactions that records the provenance of a digital asset.
Cryptocurrency is a form of currency that uses digital files as currency. They refer to database entries that can only be changed if specific conditions are met. Cryptocurrencies are generally secure because they use technology (cryptograph) designed to prevent anyone from creating fake money or spending more money than is in their account. Cryptocurrencies are not currently issued by the government, so they are not backed by any government.
Crypto miners securely process, validate and transfer cryptocurrencies. Miners are paid to use their mining hardware to validate transactions on proof-of-work networks. The crypto mining industry is a necessary and essential part of the cryptocurrency ecosystem. Anyone who chooses to participate in crypto mining, whether an individual or a business, will use various computers and machines to solve a variety of mathematical problems. By solving these problems, the network is secure and transactions are recorded and stored on the “blockchain”, which is essentially a database maintained on many computers.
THE FUND, ETF SERIES SOLUTIONS, DEFIANCE ETFS, LLC AND VIDENT INVESTMENT ADVISORY, LLC ARE NOT AFFILIATED WITH AMPLIFY ETF, AMPLIFY ETF TRUST, AMPLIFY INVESTMENTS LLC OR TOROSO INVESTMENTS, LLC.
Defiance ETFs are distributed by Foreside Fund Services, LLC