“Investors have been eager for access to Bitcoin, and until recently were challenged to access Bitcoin-related returns in a brokerage account. However, the cryptocurrency's volatility has been concerning to some. We set out to solve those issues, in a novel way.“

Karan Sood
CEO & Managing Director, Head of Product Development
Karan Sood
Why invest in this fund
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Why invest in this fund

Access Bitcoin Futures, with the convenience of a mutual fund...

Originally proposed in a 2008 white paper, Bitcoin was envisioned as “a purely peer-to-peer version of electronic cash” and has since grown into a global financial and technological phenomenon. Today Bitcoin is the most established cryptoasset in the world, with a 10+ year track record and the largest base of users in the cryptomarket.

In 2021, investors gained access to Bitcoin-related returns via a limited number of Bitcoin Strategy mutual funds and ETFs. The shares of these funds can be purchased and sold conveniently in most brokerage accounts, without the need to manage separate cryptocurrency exchange accounts or wallets.

Access Bitcoin Futures, with the convenience of a mutual fund
...while seeking to manage the downside and extreme volatility of Bitcoin

While Bitcoin prices have soared in the past, the ride has been turbulent. The price of the cryptocurrency swings significantly up and down, meaning that it is highly volatile. Relative to more traditional assets like stocks, bonds, and government currencies, Bitcoin has been significantly more volatile, sometimes as high as 5 times more volatile relative to the U.S. stock market. Its volatility has exposed investors to sizeable losses in the past.

The Fund offers an innovative approach that seeks to soften the swings of Bitcoin. By actively adjusting allocations to Bitcoin Futures and cash, the Fund aims to provide exposure to Bitcoin with less volatility. This has the potential to minimize the impact of drawdowns and poor market timing, while improving risk-adjusted returns.

How it works
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How it works

The Fund provides access to Cboe Vest’s “Managed Volatility Strategy.” The strategy utilizes Bitcoin Futures that seek to deliver returns linked to the price of Bitcoin while managing its volatility to reduce the impact of severe sustained declines.

The strategy seeks to target levels of volatility set by the Fund’s manager by dynamically changing the Fund's allocation to Bitcoin Futures and cash investments. Generally:

  • When volatility experienced by Bitcoin is high, the Fund decreases its exposure to Bitcoin Futures.
  • When volatility experienced by Bitcoin is low, the Fund increases its exposure to Bitcoin Futures.
Balancing Asset Allocation to Achieve Target Volatility

The Fund’s manager believes that the Managed Volatility Strategy may lead to total returns for investors while dampening large swings in the volatility of the Fund’s entire portfolio over time. However, historically realized volatility may not be indicative of future volatility. Due to this limitation, changes in market conditions, or other factors, the actual realized volatility of the Fund for any particular period may be materially higher or lower than the volatility targeted by the Fund’s manager. The return of the Fund for any given period could be directionally different than the returns of Bitcoin or Bitcoin Futures depending on allocation decisions made by the Fund’s manager in its attempt to implement the Managed Volatility Strategy.

Where it fits in the portfolio
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Where it fits in the portfolio

The Fund may deliver value in two places in a portfolio:

  • Scarce Metal Assets/Currency Allocation
  • Bitcoin Futures may be considered an alternative to assets such as gold or currencies as a store of value. Portfolio strategies that incorporate such assets or currencies to diversify holdings or hedge against inflation may consider allocating to the Fund.

  • Alternatives
  • Bitcoin Futures may deliver returns that may be different and unique from other traditional assets such as stocks or bonds. The Fund may have a place in the alternatives allocation within a portfolio.

Diagram: Where It Fits in the Portfolio
With great risk often comes great rewards. Or does it?

See the impact of a 5% allocation to Bitcoin on a 60/40 portfolio, starting in 2017.

Performance
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Performance

Fund facts & stats
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Fund facts & stats

Fund Snapshot

  • Ticker  BTCVX
  • CUSIP  98148L308
  • Inception Date  8/13/2021

Expenses

  • Gross Expense Ratio 1.70%
  • Net Expense Ratio* * 0.99%

* * Cboe Vest Financial LLC (the "Adviser") has contractually agreed to reduce expenses until February 28, 2023.

Estimated Distributions

Additional resources & FAQs
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