Cboe Vest Bitcoin Strategy Managed Volatility 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.

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.

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.

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.