AdvisorShares unveils risk-managed bitcoin futures ETF

May 6th, 2022 | By | Category: Alternatives / Multi-Asset

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AdvisorShares has launched a new ETF providing risk-managed exposure to bitcoin futures.

Mark Yusko, CEO and CIO of Morgan Creek

Mark Yusko, CEO and CIO of Morgan Creek Capital Management.

The AdvisorShares Managed Bitcoin Strategy ETF (CRYP US) has been listed on NYSE Arca with an expense ratio of 1.61%.

The actively managed fund is sub-advised by global investment advisor Morgan Creek Capital Management with CEO and CIO Mark Yusko serving as the portfolio manager.

Yusko harnesses proprietary trend-following analysis in a bid to truncate some of the volatility associated with the crypto asset class.

The strategy may be fully exposed to bitcoin when the cryptocurrency is expected to appreciate. Conversely, the ETF may take a defensive position by shifting up to 100% of its assets into short-duration fixed income instruments when Morgan Creek predicts a future decline in the bitcoin price.

Exposure to bitcoin is obtained through passive ETFs tracking front-month bitcoin futures or through investing directly in bitcoin futures. When investing in bitcoin futures, Morgan Creek may invest in longer-dated maturities to take advantage of the shape of the futures curve.

Commenting on the launch, Mark Yusko said: “We believe steadfastly that blockchain technology and digital assets present a generational opportunity for investors. We feel that digital asset seasonality is a good thing for investors, and while volatility can surface, CRYP provides a risk-managed offering that seeks both to capture upside return and provide a smoother investment ride. We’re excited about this ETF and how investors can use it as a diversification tool for their digital asset exposure.”

Noah Hamman, CEO of AdvisorShares, added: “We’re thrilled to partner with Mark Yusko and the Morgan Creek team and leverage their experience when introducing CRYP to the ETF marketplace. Mark has been at the forefront of innovation, particularly in the digital assets space. We believe CRYP provides a risk-managed offering that differentiates it from other ETF offerings.”

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