The Fund is an actively managed exchange-traded fund. Under normal conditions, the Fund seeks to dynamically allocate its assets between exposures to bitcoin futures contracts and cash equivalents, depending on the prevailing trend of the bitcoin market as assessed by the Fund’s sub-adviser, 21Shares US LLC (“21Shares”) and sub-subadviser, ARK Investment Management LLC (“ARK”).

The Fund uses a proprietary trend indicator (the “Model”) to formulate its allocation strategy and determine whether the bitcoin market trend is bullish or bearish. Depending on the Model’s trend assessment, the Fund’s investment team will adjust the Fund’s exposure to bitcoin futures. While the Fund’s investment team utilizes the Model, the investment team retains full discretion in deciding how to allocate the Fund’s investments.

Under normal conditions, the Fund expects to invest at least 25% of its net assets in an affiliated underlying fund, the ARK 21Shares Active Bitcoin Futures Strategy ETF (the “Underlying ETF”), which is managed by the same investment team as the Fund. The Fund may also invest in Bitcoin Futures (defined below) through a subsidiary, as well as other investment companies that are regulated under the Investment Company Act of 1940, as amended (the “Investment Company Act”), operating companies with securities regulated under the Securities Exchange Act of 1934 and that are publicly traded, which 21Shares believes can provide bitcoin exposure. In addition, under normal conditions, the Fund will allocate its remaining net assets to cash and cash equivalents, primarily U.S. government securities, as described below.

Through a subsidiary, each of the Fund and Underlying ETF may invest in standardized, exchange-traded bitcoin futures contracts that are cash settled in U.S. dollars and are traded on, or subject to the rules of, commodity exchanges registered with the Commodity Futures Trading Commission (“CFTC”), such as the Chicago Mercantile Exchange (the “CME”) (“Bitcoin Futures”). Neither the Fund nor Underlying ETF invest directly in bitcoin or other digital assets, or maintain direct exposure to “spot” bitcoin. The Fund may, however, have indirect exposure to bitcoin by virtue of its investments in bitcoin futures contracts or investment companies that hold such contracts.

The Fund’s allocation strategy aims to optimize performance relative to the price of bitcoin. When the Model assesses bullish market conditions, the Fund will increase its allocation to the Underlying ETF and/or Bitcoin Futures up to approximately 100% of its net assets, while in a bearish conditions, the Fund increases its investments in cash and cash equivalents. The Fund may invest up to 75% of its net assets in cash and cash equivalents during bearish conditions as assessed by the Model. The Fund seeks to provide investment returns that exceed the price returns of bitcoin by employing an active approach to follow the trend indicated by the Model.

Under normal conditions, the Fund may invest in short-term U.S. Treasury instruments. There is no restriction on the duration or composition of the Fund’s Treasury holdings, which are designed to generate yield while also providing liquidity. The Fund may invest in U.S. government securities of any duration. The Fund may also invest in other investment companies for cash management purposes. Under normal conditions, the Fund seeks to maintain a minimum investment in the Underlying ETF and Bitcoin Futures of 25% of its net assets to ensure the Fund’s primary exposure to the bitcoin market.

The Model is independent of the Fund and is based on a set of rules determined by 21Shares and ARK to assist in making investment decisions for the Fund. The Model applies a combination of proprietary and publicly available metrics to generate trading signals, which are then evaluated by the investment team. Examples of inputs to the trend indicator could include, for example, metrics such as historical price data and on-chain data. Many bitcoin transactions happen “on-chain,” with the transaction broadcast to the bitcoin network and recorded in the blockchain. “On-chain” data includes the information of all transactions carried out on a blockchain network and offers greater security and transparency because the data is verified and recorded on a public ledger system that cannot be changed. On-chain data includes transaction data (e.g., sending and receiving address, transferred amount, remaining value for a certain address), block data (e.g., timestamps, miner fees, rewards) and smart contract code (i.e., codified business logic on a blockchain network). The transparent and secure information of on-chain data allows users to access accurate and reliable market information, track real-time market activity, forecast market situations and make reasonable investment decisions.

It is possible, however, for bitcoin transactions to occur “off-chain” as well. Data for off-chain transactions is generally not publicly available. In contrast, on-chain digital asset transactions are publicly recorded on the blockchain. Off-chain transactions are subject to risks because any such transfer of bitcoin ownership is neither protected by the protocol behind the bitcoin network nor recorded in and validated through the blockchain mechanism.

The Model produces one or more trading signal outputs, which are then evaluated by the investment team, which exercises judgment in determining whether and how to change the Fund’s investment allocations based on the Model’s output. The Model’s trading signals can change frequently, in both direction and size. The Fund’s investment team exercises discretion in deciding how to apply the trading signals generated by the Model. The Fund’s investment team seeks to allocate the Fund’s assets in a manner that it believes will generate returns that track (before fees and expenses) the returns of the Model.

What is Bitcoin? Bitcoin is a digital asset also referred to as a crypto asset. Bitcoin, as a digital asset, is a unit of account on the “bitcoin network,” an open source, decentralized peer-to-peer computer network, which is also known as the “Bitcoin Blockchain.” Bitcoin may be held as an investment, may be used to purchase goods and services, or may be exchanged for fiat currency (like U.S. dollars). No single entity owns or operates the bitcoin network and the value of bitcoin is not backed by any government, corporation or other central body. Instead, the value of bitcoin is determined by supply and demand in markets created to facilitate trading and transactions in bitcoin. Because the source code for the bitcoin network is open-source, anyone can contribute to its development. Ownership and transaction records for bitcoin are protected by information technology known as cryptography, which is designed to protect the digital assets and only permits transactions to take place if certain conditions are satisfied. Public-key cryptography, or asymmetric cryptography, is an encryption scheme that uses two mathematically related, but not identical, keys - a public key and a private key. Unlike symmetric key algorithms that rely on one key to both encrypt and decrypt, each key performs a unique function. The public key is used to encrypt, and the private key is used to decrypt.

Transactions in bitcoin that occur on the network are also encrypted, which is designed to prevent anyone from creating counterfeit assets or from spending more money than is in their account. The ultimate supply of bitcoin is finite and currently limited to 21 million “coins.” The amount of bitcoin currently available continues to increase as new bitcoin supplies will be mined until the 21 million current protocol cap is reached. The bitcoin network is operated by a decentralized group of participants who run computer software that validates and records transactions in bitcoin (“miners”), developers who propose changes and improvements to this software, and users who use the software. Periodically, the software used by the bitcoin network is modified, which can result in different versions of bitcoin (“forks”). Although the Fund and Underlying ETF do not invest directly in bitcoin, the value of Bitcoin Futures can be affected by forks.

What are Bitcoin Futures? Bitcoin Futures are futures contracts traded on a commodity exchange registered with the CFTC. Currently, the only Bitcoin Futures contracts in which the Fund will invest are traded on the CME. The Fund and Underlying ETF may invest in standard Bitcoin Futures and in micro Bitcoin Futures (collectively referred to herein as Bitcoin Futures). These futures contracts are agreements between two parties that are executed on a commodity futures exchange, and that are cleared and margined through a clearing house. Bitcoin Futures are cash-settled, which means that one party agrees to buy a fixed quantity of bitcoin from another party at a future point in time at a price agreed at the initiation of the contract, but instead of taking physical delivery of bitcoin at the later date, settlement occurs using cash. The contractual obligations of a buyer or seller of Bitcoin Futures are generally satisfied by cash settlement at the end of the contract period or by making an offsetting sale or purchase of an identical futures contract before the designated date of delivery.

Each of the Fund and Underlying ETF expect to gain exposure by investing in a wholly owned subsidiary of the Fund and Underlying ETF, respectively, organized under the laws of the Cayman Islands and for which Empowered Funds, LLC dba EA Advisers (the “Adviser”) serves as investment adviser, 21Shares US LLC (“21Shares”) serves as sub-adviser and ARK Investment Management LLC (“ARK”) serves as sub-subadviser. Investing more than 25% of the Fund’s or Underlying ETF’s assets in the subsidiary could have adverse tax consequences for the Fund or Underlying ETF, respectively. See the section entitled “Taxation” in the Statement of Additional Information for more information. There can be no assurance that the Fund or Underlying ETF will be able to achieve or maintain its target bitcoin exposure. References to investments by the Fund or Underlying ETF, respectively should be read to mean investments by either the applicable subsidiary or the Fund or Underlying ETF.

Under normal conditions, each of the Fund and Underlying ETF invest more than 25% of its total assets in investments that provide exposure to bitcoin and/or Bitcoin Futures.

Neither the Fund nor Underlying ETF invest directly in bitcoin or other digital assets, or maintain direct exposure to “spot” bitcoin. Investors seeking direct exposure to the price of bitcoin should consider an investment other than the Fund. The Fund will, however, have indirect exposure to bitcoin by virtue of its investments in bitcoin futures contracts or investment companies that hold such contracts.

The Fund may seek to invest in Bitcoin Futures contracts with the most attractive combination of cost, liquidity, and other relevant factors, in order to optimize roll yield. Additionally, the Fund may seek to invest in “front month” bitcoin futures contracts. “Front month” contracts are the monthly contracts with the nearest expiration date. Typically, the Fund will roll to the next “nearby” bitcoin futures contracts. The “nearby” contracts are those contracts with the next closest expiration date. Rather than roll the futures contracts on a predefined schedule, the Fund will roll to another futures contract at the time that the Fund believes will generate the greatest roll yield. However, there can be no guarantee that such a strategy will produce the desired results.

More Information Regarding the Investment Strategy of the Underlying ETF:

The Bitcoin Futures in which the Underlying ETF invests generally have monthly or quarterly contract periods. Under normal conditions, the Underlying ETF will hold its Bitcoin Futures contracts during periods when the value of bitcoin may be rising, falling or flat. In order to maintain its positions in Bitcoin Futures, the Underlying ETF will sell Bitcoin Futures contracts as they near expiration, the end of the contract period, and buy new Bitcoin Futures contracts with a later expiration date. This is called “rolling.” Rolling Bitcoin Futures contracts means that the Fund will incur expenses associated with selling and buying positions.

In addition, the Underlying ETF’s investments in Bitcoin Futures will be subject to “contango” and “backwardation.” Contango occurs when a futures contract with a longer term to expiration is priced higher than a contract with a shorter term to expiration. This means that it costs more to replace a futures contract as the remaining term of the contract gets shorter. When rolling Bitcoin Futures contracts in contango, the Underlying ETF is selling a contract at a lower price and buying a new, longer contract at a relatively higher price. Backwardation occurs when a futures contract with a longer term is less expensive than a futures contract with a shorter term. When rolling Bitcoin Futures contracts in backwardation, the Underlying ETF is selling a shorter-term contract at a higher price and buying a longer term contract at a lower price. Whenever the Underlying ETF is buying or selling a Bitcoin Futures contract, the Underlying ETF will incur transaction expenses.

The Underlying ETF’s Remaining Investments. The Underlying ETF will generally invest its remaining assets in any one or more of the following types of short-term cash instruments to provide liquidity, serve as margin, or collateralize the Underlying ETF’s investments in Bitcoin Futures:

The Underlying ETF may also engage in reverse repurchase agreements or similar transactions for leveraging purposes.

The Underlying ETF is classified as a non-diversified fund, which means that the Underlying ETF may invest a greater percentage of its assets in investments backed by a particular issuer, or in the case of Bitcoin Futures contracts, in contracts with a single counterparty or a few counterparties.