IDX RISK-MANAGED BITCOIN STRATEGY FUND (BTIDX)

Bringing Risk-Managed Digital Assets to Financial Advisors Family Offices Institutions

About IDX What’s Unique to This Fund How the Fund Works Docs, Fact Sheet & FAQs Fund Facts & Stats Latest Insights In the Press

A Digital Assets Pedigree

In the developing world of blockchain technology, we believe that a quantitative, data driven approach is the most prudent way to navigate the evolving landscape.

We approach the digital assets markets through this lens and build robust solutions for the asset class by optimizing for Risk Mitigation, NOT Return Enhancement.

At IDX we are focused on developing Risk-Managed Digital Assets Solutions that make it simple for fiduciaries and investors to participate in the asset class.

IDX OVER THE YEARS

A brief history of our digital asset experience

2011
First Purchased Bitcoin
After two years of due diligence, IDX’s CIO purchased Bitcoin for the first time
2013
Launched Bitcoin Nodes
In the summer of 2013 our research team launched two Bitcoin nodes to begin analyzing large datasets in the BTC economy (i.e. on-chain analytics)
2019
Began Managing Outside Capital
As career-long Quants we sought to apply our rules-based insights to Bitcoin via the IDX Tactical Bitcoin SMAs and began managing institutional and advisory capital
2020
Launched Digital Asset Indices with S&P Dow Jones
IDX was the first in the world to launch Digital Assets Indices calculated by S&P Dow Jones
2021
Launched the IDX Risk-Managed Bitcoin Strategy Fund (BTIDX)
As the regulatory landscape matured, IDX launched a risk-focused mutual fund based on its first-of-a-kind index, which seeks to provide risk-managed exposure to Bitcoin via CME Bitcoin Futures.

What IDX Believes In

Volatility Can Be Favorable, But Not Without Downside Protection

Since Bitcoin’s inception, the growth of the asset class has only been rivaled by that of the internet and the “Dot Com” era. So, why have fiduciaries and professional investors approached the asset class with trepidation? Following our conversations with hundreds of financial advisors, family offices, and institutions, we’ve identified a pattern; downside volatility and principal protection are rarely a focus within the community of early adopters and practitioners.

Simple Access to Digital Assets for Fiduciaries and Wealth Managers

We began managing outside capital in the form of Separately Managed Accounts in 2019 with a dedicated focus on Risk-Mitigation, NOT Return Enhancement. Over time, the regulatory landscape has matured and the instruments available for gaining exposure to the asset class have evolved for the better. From our initial SMAs for fiduciaries, we created Risk-Managed Digital Asset Private Placements for accredited investors and institutions for Bitcoin, Ethereum, and DeFi. Now, we are proud to bring our Risk-Focused US Mutual Fund to market, the IDX Risk-Managed Bitcoin Strategy Fund (BTIDX).

Constant Education and Research for a Rapidly Evolving Space

Similar to the ‘Internet Boom’ in the late 90s and early 2000s, digital assets have been subject to Moore’s Law, with new developments and improvements in technology (protocols) happening on a daily basis. Our research and investment teams are deeply involved in blockchain technology, evaluating our internally managed data (nodes), auditing the source code (smart contracts) of protocols, and participating in the ‘prudent’ development of the ecosystem. The fiduciaries who partner with IDX are able to benefit from these insights, and intelligently participate in the growth of the industry.

Why Does it Make Sense to Own (BTIDX)?

The IDX Risk-Managed Bitcoin Strategy Fund (BTIDX) seeks to Harvest the Volatility of the asset class via a rules-based, risk-managed approach to owning CME Bitcoin Futures and publicly traded Bitcoin Industry companies.
The IDX Risk-Managed Bitcoin Strategy Fund (BTIDX) seeks to mitigate the risk-of-loss (downside capture) relative to a long-only (passive) exposure to the asset class.
The IDX Risk-Managed Bitcoin Strategy Fund (BTIDX) is a US Mutual Fund regulated by the US Securities and Exchange Commission, and unlike owning Bitcoin (BTC) directly, the IDX Risk-Managed Bitcoin Strategy Fund (BTIDX) can be owned in US brokerage accounts and US retirement accounts held at US custodians.

GROWTH & VOLATILITY

Since its inception in 2009 in response to the Great Financial Crisis, Bitcoin (and blockchain technology, in general) has emerged as a disruptive asset class with early applications across multiple industries (including payments, finance & entertainment). As such, the interest in bitcoin within institutional investors’ portfolios has increased accordingly.

DRAWDOWNS

In traditional asset classes a “Bear” market is classically defined as a 20% or greater decline from recent highs amid widespread pessimism and negative sentiment. Many investors are surprised to learn that Bitcoin has commonly exceeded bear market territory, as classically defined, several times per annum since its inception in 2009. In addition to the relative frequency of bear market drawdowns, as compared against traditional asset classes (i.e gold, real estate, stocks and bonds, the severity of drawdown has exceeded 50% and even 80% thresholds several times during its existence.

How it works

The Fund’s manager, IDX, believes that the IDX Risk-Managed Bitcoin Strategy may provide investors with total returns over time, while reducing the volatility and the large drawdowns associated with passively owning CME Bitcoin Futures. Historical volatility is not necessarily indicative of future volatility, and therefore changes in market conditions, and other factors, might result in the actual realized volatility and drawdowns of the IDX Risk-Managed Bitcoin Strategy Fund (the “Fund”) for any particular period to be materially higher. The return of the Fund for any given period might be materially different than the returns of Bitcoin or CME Bitcoin Futures depending on the allocation decisions made by the Fund’s manager in its efforts to implement the Risk-Managed Strategy.

In periods of waning Bitcoin momentum, our signals seek to avoid periods of "uncompensated risk" and reduces exposure
In periods of positive, increasing Bitcoin momentum, our signals seek to participate in periods of "compensated risk", and increases exposure

Additional Resources & FAQs

Regulatory Docs

Prospectus

Statement of Additional Information

Fact Sheet & Commentary

February Factsheet

FAQs

How does a Bitcoin futures contract work?

Bitcoin futures contracts are “cash-settled” which means no actual bitcoin is delivered at the expiration of the futures contract. Rather, the cash difference is settled between parties. In order to maintain exposure over time, futures contracts must be “rolled” from one month to another. When outer month contracts are trading at a premium, the “term structure” is in “contango” and there’s a cost of rolling contracts.

How do Bitcoin Futures Mutual Funds differ from ETFs?

Bitcoin Futures-based mutual funds have liquidity once per day as opposed to throughout the day, as is the case with ETFs. To learn more about structural differences between the vehicles, click here to see an overview from our CIO.

Does the fund distribute a K-1?

No the Fund does not produce a K-1. Shareholders will receive a 1099 on an annual basis.

Does the fund invest in digital assets directly?

The fund does not own digital assets or cryptocurrencies such as Bitcoin (BTC) directly, the fund gains exposure via the CME Bitcoin Futures market and publicly traded Bitcoin Industry Companies. The fund also holds U.S. Treasuries and other cash substitute instruments.

Fund Facts & Stats

Fund Snapshot

Ticker	BTIDX
CUSIP	55379J8734
Inception Date	11/16/2021

Expenses

Management Fee	1.99%
Gross Expense Ratio	2.64%
Minimum Investment	$10,000

Get In Touch

Call IDX at 800-403-4349, send a message using the form below, or email us at info@idx-us.com for a quick response.

For media inquiries, please email idx@dlpr.com.

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Latest Insights

Distributed by Foreside Fund Services LLC, which is not affiliated with IDX Funds or IDX Advisors, LLC.

For more information including standard performance of the Funds, please visit the Fund page to download the fact sheet.

There are risks involved with investing including the possible loss of principal. Diversification does not guarantee investment returns or eliminate the risk of loss. Past performance does not guarantee future results.

Investors should carefully consider the investment objectives, risks, charges and expenses of the fund before investing. To obtain a prospectus containing this and other important information, please visit the Fund page to download a prospectus online or Click Here. Read the fund’s prospectus carefully before you invest.

The Fund actively invests in bitcoin futures contracts and other instruments that provide exposure to bitcoin futures. The Fund does not invest directly in or hold bitcoin. The price of bitcoin futures contracts should be expected to differ from the current cash price of bitcoin, which is sometimes referred to as the “spot” price of bitcoin. Consequently, the performance of the Fund should be expected to perform differently from the spot price of bitcoin. These differences could be significant. – Bitcoin and bitcoin futures contracts have historically been more volatile than traditional asset classes. The market for bitcoin futures may be less developed, and potentially less liquid and more volatile, than more established futures markets. While the bitcoin futures market has grown substantially since bitcoin futures commenced trading, there can be no assurance that this growth will continue. Given the complexity of the strategies of the Fund, the Adviser relies heavily on quantitative models and information and data both proprietary as well as supplied by third parties (“Models and Data”). Models and Data are used to rank investments and provide risk management insights. The use of predictive models has inherent risks. Investing in derivatives, including bitcoin futures contracts, may be considered aggressive and may expose the Fund to significant risks. The Fund may incur high portfolio turnover to manage the Fund’s investment exposure. The fund is non-diversified and can invest a high percentage of assets in a small number of issuers which may increase volatility and risk versus a diversified portfolio.

Volatility is a measure of the variation of the level/ price of an asset over time as generally expressed as the annualized standard deviation of daily returns.

Drawdown refers to the percentage decline in asset value from its all time high.

Contact

+1 800-403-4349

Phoenix Office – 2201 East Camelback Road
Phoenix AZ 85016

ir@idx-us.com

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Disclaimers

Disclosures

Distributed by Foreside Funds Services LLC which is not affiliated with IDX Funds or IDX Advisors LLC. There are risks involved with investing including the possible loss of principal. Diversification does not guarantee investment returns or eliminate the risk of loss. Past performance does not guarantee future results. Investors should carefully consider the investment objectives, risks, charges and expenses of the fund before investing. To obtain a prospectus containing this and other important information, please visit the fund page to download a prospectus online or here. Read the fund’s prospectus carefully before you invest.

The BTIDX Fund actively invests in bitcoin futures contracts and other instruments that provide exposure to bitcoin futures. The Fund is a new mutual fund and has a limited history of operations for investors to evaluate. Additional risks associated with the Fund include, but are not limited to: Futures Risk: The Fund’s use of futures involves risks different from, or possibly greater than, the risks associated with investing directly in securities and other traditional investments. Investments in futures involve leverage, which means a small percentage of assets invested in futures can have a disproportionately large impact on the Fund. Concentration Risk: The Fund is concentrated in the Bitcoin industry. The Fund’s concentrated investment exposure involves risks different from, or possibly greater than, the risks associated with investing in a fund with exposure to a broader range of industries. The concentration risk of the Fund includes, but is not limited to, the potential for greater volatility and the potential for greater loss of investment capital than a diversified fund. The Fund may be susceptible to financial, economic, political or market events, as well as government regulation, impacting the Bitcoin industry. Fluctuations in the price of Cryptocurrencies, specifically Bitcoin and Bitcoin industry companies, often dramatically affects the profitability of the Bitcoin Industry and therefore potentially the Fund. Cryptocurrency Risk: Cryptocurrency (notably, Bitcoin), often referred to as “virtual currency” or “digital currency,” operates as a decentralized, peer-to-peer financial exchange and value storage that is used like money. The Fund may have concentrated exposure to Bitcoin, a cryptocurrency, indirectly through an investment in CME Bitcoin Futures and vehicles that the fund’s manager, in its sole and absolute discretion, determines to be Bitcoin Industry companies or investments. Cryptocurrencies operate without central authority or banks and are not backed by any government.

The COIDX Fund is a new mutual fund and has a limited history of operations for investors to evaluate. Additional risks associated with the Fund include, but are not limited to: Investment Concentration Risk: The Fund is concentrated in Commodity Futures and Commodity Industry companies. The Fund’s concentrated investment exposure involves risks different from, or possibly greater than, the risks associated with investing in a fund with exposure to a broader range of industries. The concentration risk of the Fund includes, but is not limited to, the potential for greater volatility and the potential for greater loss of investment capital than a diversified fund. The Fund may be susceptible to financial, economic, political or market events, as well as government regulation, impacting the Commodity industry. Fluctuations in the price of Commodities often dramatically affects the profitability of the Commodities Industry and therefore potentially the Fund. Futures Risk: The Fund’s use of futures involves risks different from, or possibly greater than, the risks associated with investing directly in securities and other traditional investments. Investments in futures involve leverage, which means a small percentage of assets invested in futures can have a disproportionately large impact on the Fund.

Other risks associated with investing in the funds include: Geographic Concentration Risk: The Funds may be particularly susceptible to economic, political, regulatory or other events or conditions affecting countries within the specific geographic regions in which the Fund invests. Liquidity Risk: Liquidity risk exists when particular investments of the Fund would be difficult to purchase or sell, possibly preventing the Fund from selling such illiquid securities at an advantageous time or price, or possibly requiring the Fund to dispose of other investments at unfavorable times or prices in order to satisfy its obligations. Leverage Risk: The value of your investment may be more volatile if the Fund borrows or uses instruments, such as derivatives, that have a leveraging effect on the Fund’s portfolio. Equity Market Risk: Equity markets can be volatile, and the prices of common stocks can fluctuate significantly. Derivatives Risk: The use of derivative instruments involves risks different from, or possibly greater than, the risks associated with investing directly in securities and other traditional investments. Foreign Investment Risk: Foreign investing involves risks not typically associated with U.S. investments, including adverse fluctuations in foreign currency values, adverse political, social and economic developments, less liquidity, greater volatility, less developed or less efficient trading markets, political instability and differing auditing and legal standards. Portfolio Turnover Risk: The frequency of the Funds transactions will vary from year to year. Higher costs associated with increased portfolio turnover may offset gains in a Funds performance. ETF Risk: ETFs are subject to investment advisory fees and other expenses, which will be indirectly paid by the Fund. As a result, your cost of investing in the Fund will be higher than the cost of investing directly in ETFs and may be higher than other mutual funds that invest directly in stocks and bonds. ETFs are listed on national stock exchanges and are traded like stocks listed on an exchange. Model and Data Risk: Given the complexity of the investments and strategies of the Fund, the adviser relies heavily on quantitative models and information and data both proprietary as well as supplied by third parties (“Models and Data”). Models and Data are used to rank securities and derivatives, provide risk management insights, and to assist in managing the Fund’s investments.