OKLAHOMA
CITY, April 23, 2024 /PRNewswire/ -- After
careful consideration, Exchange Traded Concepts, LLC, the Fund's
investment adviser has recommended, and the Board of Trustees of
Exchange Traded Concepts Trust has approved, the termination and
liquidation of the Fund pursuant to the terms of a Plan
of Liquidation. Accordingly, the Fund is expected to cease
operations and liquidate on or about May 24,
2024 (the "Liquidation Date").
The Fund will be closed to orders for new creation units on
May 21, 2024, and the last day of
trading of the Fund's shares on the NYSE Arca, Inc. will be on or
about May 22, 2024. From May 21, 2024 through the last day of trading,
shareholders may only be able to sell their shares to certain
broker-dealers, and there is no assurance that there will be a
market for Fund shares during that time period. Customary brokerage
charges may apply to such transactions. From the last day of
trading through the Liquidation Date, shareholders will not be able
to purchase or sell shares in the secondary market.
In anticipation of the liquidation, the Fund will be managed in
a manner intended to facilitate its orderly liquidation, such as by
raising cash or making investments in other highly liquid assets.
As a result, in preparation for the liquidation, all or a portion
of the Fund may not be invested in a manner consistent with its
stated investment strategy, which may prevent the Fund from
achieving its investment objective.
On or about the Liquidation Date, the Fund will liquidate its
assets and distribute cash pro rata to all remaining shareholders.
These distributions are taxable events. In addition, these payments
to shareholders will include accrued capital gains and dividends,
if any. As calculated on the Liquidation Date, the Fund's net asset
value will reflect the costs of liquidating the Fund. Once the
distributions are complete, the Fund will terminate.
Carefully consider the Fund's investment objectives, risk
factors, charges and expenses before investing. This and additional
information can be found in the Fund's prospectus, which may be
obtained by visiting cli-etfs.com. Investors should read it
carefully before investing.
Investing involves risk, including possible loss of principal.
International investments may also involve risk from unfavorable
fluctuations in currency values, differences in generally accepted
accounting principles, and from economic or political instability.
Emerging markets involve heightened risks related to the same
factors as well as increased volatility and lower trading volume.
Narrowly focused investments and investments in smaller companies
typically exhibit higher volatility. There is no guarantee the fund
will achieve its stated objective.
There is no assurance that stocks selected according to the
natural language processing algorithm will outperform stocks of
other companies. There is no guarantee that the Methodology will
generate or produce the intended results.
The technology relating to digital assets is new and developing.
Currently, there are few public companies for which digital asset
technology represents an attributable and significant revenue
stream. Digital asset technology may never develop optimized
transactional processes that lead to increased realized economic
returns to any company in which the Fund invests. In addition, an
investment in companies actively engaged in digital asset
technology may be subject to the risks: that digital asset
technology is new and many of its uses may be untested; that the
cryptographic keys necessary to transact on a digital asset ledger
may be subject to theft, loss, or destruction; that competing
platforms and technologies may be developed such that consumers or
investors use an alternative to digital assets; that companies that
use digital asset technology may be subject to cybersecurity risk;
that companies may not be able to develop digital asset technology
applications or may not be able to capitalize on those
technologies; that digital asset companies may be subject to the
risks posed by conflicting intellectual property claims; that there
may be a lack of liquid markets and possible manipulation of
digital assets; that there may be risks posed by the lack of
regulation in this space; and that digital asset systems built
using third party products may be subject to technical defects or
vulnerabilities beyond a company's control.
Companies' involvement in green energy transport and technology
is a relatively new development and there can be no assurance that
such companies' goods and services will be widely adopted by the
general public. Such companies may be sensitive to risks associated
with emerging technology companies, which include, but are not
limited to, small or limited markets for securities of such
companies, changes in business cycles, world economic growth,
technological progress, rapid obsolescence, and government
regulation. Rapid change to technologies that affect a company's
products could have a material adverse effect on such company's
operating results. These companies may rely on a combination of
patents, copyrights, trademarks and trade secret laws to establish
and protect their proprietary rights in their products and
technologies. There can be no assurance that the steps taken by
these companies to protect their proprietary rights will be
adequate to prevent the misappropriation of their technology or
that competitors will not independently develop technologies that
are substantially equivalent or superior to such companies'
technology.
Shares are bought and sold at market price not net asset value
(NAV) and are not individually redeemed from the Fund. The
market price returns are based on the official closing price of an
ETF share or, if the official closing price isn't available, the
midpoint between the national best bid and national best offer
("NBBO") as of the time the ETF calculates current NAV per share,
and do not represent the returns you would receive if you traded
shares at other times. Beginning 12/15/2020, market price returns
are calculated using closing price or the NBBO midpoint at
4:00 PM ET. Prior to that date, the
midpoint of the bid/ask spread at 4:00 PM
ET was used. Brokerage commissions will reduce returns.
Exchange Traded Concepts, LLC serves as the investment adviser.
The Funds are distributed by SEI Investments Distribution Co. (1
Freedom Valley Drive, Oaks, PA,
19456), which is not affiliated with Exchange Traded Concepts, LLC
or any of its affiliates.
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SOURCE Exchange Traded Concepts, LLC