Alternative Investments/Digital: Simplify Launches A New ETF For [80:20] Exposure To Stocks: Bitcoin

Simplify Asset Management is an innovative issuer of ETFs.

Simplify announced last week the launch of the Simplify U.S. Equity PLUS GBTC ETF (NASDAQ: SPBC), an ETF that will invest at least 80% of its net assets in U.S. equity securities and expects to invest up to 15% of net assets in bitcoin via the Grayscale Bitcoin Trust (GBTC). (BusinessWire)

Simplify US Equity PLUS GBTC ETF

The new ETF seeks to provide an efficient way for asset allocators to add Bitcoin exposure to portfolios.

It provides operational simplicity for investors by actively managing the rebalancing of the bitcoin allocation as well as the premium/discount dynamics of GBTC.  The ETF wrapper provides attractive efficiencies including transparency, liquidity, tax efficiency, and no K-1’s.

The ETF charges a gross expense ratio of 0.50%.

Compelling non-correlation to equity and fixed income

“Cryptocurrency markets now exceed $2 trillion in value and account for more than 1% 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,” said 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,” Kim added.


As of June 1, GBTC traded at a discount to NAV of 14.61%. This can be advantageous if purchases are made on the secondary market.

“That means we’re acquiring bitcoin via GBTC at a discount,” Simplify’s Kim told Financial Advisor. “If GBTC trades at a premium in the future, we can manage the entry and rebalancing both from tax and strategic targeting perspectives and also from the standpoint of the premium/discount.”

Related Story:  Grayscale Trains Its Sights On Morphing GBTC Into An ETF

Free Industry News

Subscribe to our free newsletter for updates and news about alternatives investments.

  • This field is for validation purposes and should be left unchanged.


Latest Alternative Investment News
Alternative Investments/ESG: Six New Responsible Funds Flag Off Morgan Stanley’s ETF Platform

Morgan Stanley Investment Management (MSIM) has launched its ETF platform with six Calvert ETFs listed on NYSE Arca. The ETFs feature Calvert’s responsible investing approach and offer access to four…
Artificial Intelligence: MusicLM, A New Generative AI Tool From Google, Creates Music From Text
February 2, 2023     Artificial Intelligence, News

Google (NASDAQ: GOOGL) recently published a research paper on its new AI tool, MusicLM, designed to create music. The tool is based on machine learning and is trained on vast…
Artificial Intelligence: Snap Mulling AR Glasses Powered By Generative AI
February 2, 2023     Artificial Intelligence, News

Snap (NYSE: SNAP), the parent company of Snapchat, has hinted at future AR glasses powered by generative AI technology. CEO Evan Spiegel stated that AI will be critical to the…
Digital Assets: Binance And Mastercard Launch Prepaid Crypto Card In Brazil
February 1, 2023     Digital Assets, News

Binance and Mastercard (NYSE: MA) have jointly launched the Binance Card in Brazil, allowing Binance users in the country to make purchases and pay bills with cryptocurrencies like bitcoin and…