Active ETF sponsor AdvisorShares announced that the AdvisorShares Drone Technology ETF (NYSE Arca: UAV) and the AdvisorShares Managed Bitcoin Strategy ETF (NYSE Arca: CRYP) begin trading today.
UAV provides dedicated investment exposure to the emerging commercial drone economy and its transformative technology, which includes unmanned aerial vehicles (commonly referred to as drones) and autonomous vehicles.
“We believe UAV provides an efficient and transparent way, via a single ETF trade, to gain dedicated exposure to this emerging growth opportunity,” said AdvisorShares CEO Noah Hamman in a news release. "We feel UAV adds another compelling consideration to our thematic lineup for advisors and all investors.”
UAV seeks long-term capital appreciation by investing in the U.S.-listed equities of domestic and global companies believed to have dominant market positions with unique opportunities for growth and expansion in the drone and AV ecosystems. This includes companies of any market cap across a variety of industries that are, directly or indirectly, developing, researching, using, or providing support services or supplies related to drones or AVs. Some areas of drone usage and AV development include goods delivery, emergency services, self-driving vehicles, electric vertical takeoff and landing (eVTOL) aircraft, as well as military, agriculture, construction, energy, mining, and real estate applications.
“As technological innovation evolves, we believe that drone technology will accelerate further and establish itself as an investment growth opportunity with durable and sustainable characteristics,” added Dan Ahrens, managing director at AdvisorShares and portfolio manager of UAV. “Additionally, we feel its potential impact on select industries like transportation can help reduce greenhouse gas emissions by providing mobility services once implemented only by commercial or industrial vehicles.”
CRYP, meanwhile, seeks long-term capital appreciation through actively managed exposure to bitcoin futures. CRYP achieves this exposure by investing in U.S. bitcoin-related ETFs and may invest in U.S. exchange-traded bitcoin futures contracts.
CRYP seeks to actively manage risk with its investment exposure based on expectations for the value of bitcoin. CRYP can tactically reduce or increase the portfolio’s bitcoin exposure from anywhere from zero to fully invested. For example, CRYP can be fully invested when the manager’s indicators suggest a future rise in bitcoin’s price. Conversely, its bitcoin futures exposure can be reduced and moved to short-duration fixed income instruments when the manager’s indicators suggest a future decline in price.
CRYP is subadvised by Morgan Creek Capital Management. Mark W. Yusko, CEO and CIO of Morgan Creek, will serve as the fund’s portfolio manager.
“We believe steadfastly that blockchain technology and digital assets present a generational opportunity for investors,” said Yusko in a separate release. “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.”
“We’re thrilled to partner with Mark Yusko and the Morgan Creek team and leverage their experience when introducing CRYP to the ETF marketplace,” added Hamman. “Mark has been at the forefront of innovation, and particularly in the digital asset space. We believe CRYP provides a risk-managed offering that differentiates it from other offerings in the ETF space.”
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