Simplify Asset Management launches Simplify US Equity Plus GBTC ETF

Simplify Asset Management (Simplify), a provider of Exchange Traded Funds (ETFs), has launched the Simplify US Equity PLUS GBTC ETF (SPBC).

SPBC will invest at least 80 per cent of its net assets in US equity securities, and expects to invest up to 15 per cent of net assets in bitcoin via the Grayscale Bitcoin Trust (GBTC). The portfolio is periodically rebalanced, and the fund’s Adviser actively manages the premium/discount dynamics of GBTC via either direct trading in the market or via private placement. The fund retains the tax efficiency that is a hallmark of the ETF space and does not provide investors with a K-1 come tax time.

“Cryptocurrency markets now exceed USD2 trillion in value and account for more than 1 per cent of the overall global market portfolio. In addition, recent research has shown how uncorrelated crypto assets are to equity and fixed income markets, making them a possibly compelling part of a well-diversified portfolio,” says Paul Kim, CEO with Simplify. “But allocating to crypto assets is difficult since over-the-counter offerings can present a host of challenges for investors and advisors, managing direct crypto exposure can be incredibly time consuming and onerous, and there remains no ETF on the market providing direct exposure to crypto itself. We’re very pleased to be launching SPBC, as a means of solving these challenges, providing a liquid, scalable way to add bitcoin exposure to a portfolio.”

SPBC joins a fast-growing Simplify ETF lineup, which earlier this month also saw the launch of the Simplify Interest Rate Hedge ETF (PFIX) and the Simplify Volatility Premium ETF (SVOL), two first-of-their-kind ETFs.

“Helping advisors and investors build better portfolios is at the heart of our work at Simplify, and with PFIX, SVOL, and now SPBC, we’re very excited about the approaches we’re bringing to market as a means of helping solve some of the toughest investment challenges,” adds Kim.

“Nasdaq supports innovation throughout the financial universe, and our exchange is home to the most innovative companies and the most innovative ETFs,” says Giang Bui, Head of US Exchange Trade Products for Nasdaq. “Our work with Simplify helps investors navigate the strong demand for cryptocurrency exposure and the regulatory requirements needed to protect investors.”