Technology
Global luxury stabilizes amid compounding disruptions as brands race to amplify meaning and rebuild relevance
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Global luxury spending reached €1,443 billion in 2025. Luxury experiences continue to outpace tangible goods, but personal luxury goods spending is stabilizing in 2026, with the market (at €358 billion last year, down 2% at current rates but up 1% at constant exchange rates vs. 2024) expected to grow by 2% to 4% for the full year, to €365 to €373 billion under our base case scenario
Growth in personal luxury goods is diverging sharply by region: the Americas are surging, led by US-native brands and strong traction among younger consumers, while Europe and the Middle East remain a drag on overall performance
Polarization of performance persists, but performance gaps between brands are lower than last year. Roughly 60% of luxury players are performing above their last year comparable results – signs that the market is progressively finding its footing after a turbulent period
The consumer is changing as fast as the market: half of luxury shoppers now consult the secondhand market before buying new, and half already use AI in their purchase journey – with nearly all planning to continue doing so
Sports sponsorship has quietly become a cornerstone of luxury brand-building, with over 80% of luxury market value now represented by brands that actively sponsored sports in the past 12 months.
MILAN, June 25, 2026 /PRNewswire/ — The global luxury sector enters the second half of 2026 confronting a compounding polycrisis of economic volatility, geopolitical turbulence, and deep cultural shifts, even as underlying fundamentals point to a gradual stabilization, Bain & Company, in partnership with Altagamma, the Italian luxury goods manufacturers’ industry association, reports today.
Worldwide luxury spending reached €1,443 billion in 2025 and is on a trajectory of gradual stabilization in 2026, according to the spring update of the Bain-Altagamma Luxury Goods Worldwide Market Study. The study maps a market shaped by four interconnected forces: amplifying experiences over ownership, rebalancing growth engines across geographies, evolving consumer meanings of luxury, and rapidly shuffling go-to-customer funnels disrupted by artificial intelligence.
Global luxury spending in 2026 is expected to reach €1,440 to €1,470B in Bain’s base scenario for the market, a growth rate of between zero and 2% at constant rates.
“The luxury market is stabilizing, but this is not a return to the old rhythm, it is the emergence of a new one,” said Claudia D’Arpizio, Bain & Company senior partner and global leader of the firm’s Fashion & Luxury practice, lead author of the study. “Consumers are not stepping back from luxury. They are stepping forward into a new relationship with it – one defined by meaning, not just by product. The brands that will win are those that can continuously reinvent their relevance and resonate with both consumers and AI-led ecosystems”.
Macro turbulence sets the backdrop
The first half of 2026 has been shaped by a series of macro-economic shocks. The outbreak of Middle East conflict pushed oil prices up. US inflation climbed to its highest since April 2023 – while consumer confidence hit an all-time low. The ECB raised interest rates in June for the first time since 2023, and global GDP growth this year is now forecast to come weaker than in 2025. Luxury share prices fell ~8% in January, and international tourism in Europe down 20% year-on-year in February before partially rebounding.
Experiences lead, tangible goods recalibrate
Consumer sentiment towards experiences is outgrowing tangible goods by 1.5x so far in 2026, reflecting a structural and cultural shift from ownership to lived moments. Within the experiences space, most categories are holding up well. Luxury hospitality, private jets, yachts, and cruises are all resilient, driven by premiumization, strong backlogs, and new customer acquisition. Fine dining and gourmet food benefit from a “less but better” mindset. Fine arts are returning to growth as investors rebalance. The weaker spots are experience-adjacent goods. Luxury cars remain a drag amid the EV transition. Fine wines and spirits face softer consumption as drinkers trade down in frequency or switch to alcohol-free. Design and furniture are slowing as post-pandemic backlogs clear and real estate stays constrained.
Personal luxury goods: gradual recovery with scenario uncertainty
The personal luxury goods market dipped slightly to €358 billion in 2025 (from €364 billion in 2024, down 2% at current rates, though up 1% at constant exchange rates) but is expected to bounce back in 2026, growing 2% to 4% to reach €365 to €373 billion. Bain assigns this most realistic case a 70% probability, underpinned by assumptions of continued Middle East stabilization, resilient local spending, and a gradual recovery in Chinese demand. A more optimistic 4% to 6% growth outcome (~20% probability) would require geopolitical tensions to ease further, a boost from renewed momentum of the US market, and China accelerating its recovery. The downside scenario of flat to 2% growth (~10% probability) would reflect renewed Middle East escalation, softer tourism, or weakness in the Americas.
After a soft Q1 2026 (between -5% and -3% at current exchange rates vs the prior year), conditions are expected to slightly improve in Q2 as macro and geopolitical headwinds begin to lift. Around 60% of luxury players are already outperforming their Q1 2025 results, and the wide performance gap that defined 2025 is beginning to close, as last year’s winners cool and former laggards recover.
Three speeds across geographies
The regional picture is one of sharp divergence, with the Americas surging while Europe and the Middle East drag on overall growth.
In the US, luxury spending is on the rise across apparel, hard luxury, and to a lesser extent beauty. American-native luxury brands grew by roughly 10% to 15% year-on-year in Q1 compared to the same period last year, without accounting for dollar swings. Younger shoppers are leading the charge – consumers under 35 are spending at a clip about four percentage points faster than their older counterparts. Perhaps more striking, upper middle-class households are now growing their luxury spending at roughly twice the rate of wealthier cohorts, suggesting that the market is succeeding in broadening its base.
China activity is coming back, but carefully. Online luxury sales jumped 25% to 35% in Q1 vs a year earlier. Notably, shoppers are gravitating toward ready-to-wear at twice the rate of leather goods, with consumers stepping back from status purchases in favor of choices leaning more into belonging and self-expression. Japan, meanwhile, is contending with a slowdown in tourist traffic, particularly from China.
Europe is the market’s weak link for now. International tourist spending dropped around 20% in February, with Middle Eastern visitors especially affected by regional conflict. The Gulf luxury consumer base shrank by between 15% and 25% in early 2026. That said, the picture has started to show some sign of improvement in Q2: tax refund data from May shows accelerating spending by American, Chinese, and Middle Eastern visitors compared to April – a tentative signal that both Europe and the Gulf may be turning a corner as the second quarter unfolds.
Category performance shaped by evolving consumer priorities. Channels and funnels in flux
Across categories, Bain’s analysis shows that jewelry is leading, with apparel, eyewear, and fragrances also holding up well. Cosmetics are lagging, and leather goods and footwear are still under pressure, yet on improving trajectory. In watches, connoisseurship is overtaking hype, with collectors increasingly rewarding craftsmanship and rarity – a dynamic that is also fueling momentum in the resale market. Beyond watches, resale market continues to thrive Vintage bag online searches have more than doubled year-over-year, and roughly half of all luxury shoppers now check the secondhand market before buying anything new. The channel landscape is stalling in aggregate, but a number of internal shifts are underway. Mono-brand retail remains experience-led but faces volume pressure. Travel retail is recovering unevenly, with activity in the Gulf states particularly volatile. Multi-brand retailers are caught between brand pullback and continued consumer interest. Direct online is stabilizing as brands tighten control over direct-to-consumer distribution.
AI is profoundly reshaping the luxury consumer journey
Consumers increasingly discover, compare, and validate their purchases of luxury brands through AI and the technology rapidly redefines luxury relevance, Bain reports. Its analysis finds that approximately half of luxury consumers already use AI in their buyer journey while nearly all plan to continue this pattern. About one in four luxury consumers use it for brand and product discovery, while two out of three of them leverage it for product comparison. Bain cautions that brands that are not building AI-native relevance risk being left behind as consumers increasingly discover products and services, and validate purchase decisions, through AI-mediated channels.
Sports are emerging as a powerful new arena for luxury brand-building
Over 80% of luxury market value is now represented by brands that have sponsored a sport experience in the past 12 months; yet, the focus is still mostly on building cultural credibility and saliency at scale, rather than on driving growth in sales.
Amplifying experiences: new formats redefine the luxury frontier
Experiential luxury is shifting toward emotion- and purpose-led moments. Immersive bookings across dining, leisure, and entertainment are up 30% compared with last year, driven by bespoke, slow-travel formats rooted in local culture. Travel beyond traditional hotspots has grown by 20% vs last year, reflecting an “Elsewhereism” trend, while multi-generational travel is rising: ~50% of Gen-Z say their brand preferences have been shaped by their parents.
“The appetite for luxury remains strong. The tolerance for disappointing experiences or products does not,” said Federica Levato, Bain & Company senior partner, leader of the firm’s EMEA Fashion & Luxury practice and co-author of the study. “Over 70% of customers who have left luxury intend to return – but not necessarily to the same brands. The question is whether brands are building the meaning and AI-native relevance to be surfaced and chosen when that moment arrives.”
Winning through meaning amplification
Bain’s analysis concludes that the meaning of luxury to consumers is evolving from being about social validation towards an individual focus on “self-actualization” – a shift from a desire to be admired towards a goal of personal fulfilment. This new era for the sector means that luxury will no longer define what its consumers own but rather how they live, the report suggests. It sees luxury evolving from elitism through aspiration and self-expression to an era characterized by “living well”. Against this unfolding backdrop, Bain identifies three imperatives for brands: delivering wonder through immersive experiences in longevity escapes and untamed sanctuaries; building cultural relevance for diverse communities; offering clients a platform to co-author through AI-enabled creativity and personalization.
Media contacts
Orsola Randi (Milan) — Email: orsola.randi@bain.com
Dan Pinkney (Boston) — Email: dan.pinkney@bain.com
Gary Duncan (London) — Email: gary.duncan@bain.com
About Bain & Company
Bain & Company works with leaders worldwide to solve their toughest challenges and deliver enduring results. Since 1973, we’ve partnered with clients, including private equity and portfolio companies, to build the capabilities they need to stay ahead of change and help them redefine their industries. We measure our success by our clients’ success, and we proudly hold the highest levels of client advocacy in our field.
Bain is consistently recognized globally as one of the best places to work. We operate as one global team, uniting strategists, industry and functional experts, technologists, and advisors with a vibrant ecosystem of technology partners.
Notes to Editors
Bain & Company was founded in 1973 and today has 19,000 employees across 67 cities in 40 countries. We have worked with more than two-thirds of the Global 500 and more than 9,000 companies worldwide. Bain has pledged to deliver $2 billion in pro bono consulting to nonprofit, public-sector and charitable organizations by 2035. The firm is consistently recognized as a Leader in major analyst rankings across multiple areas, including digital business, innovation, strategy, experience design, customer experience, and carbon-zero transformation.
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SOURCE Bain & Company
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DeFi Technologies Inc. Announces Extension of Proxy Voting Deadline for Upcoming Annual General and Special Meeting
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June 25, 2026By
Shareholders now have until June 28, 2026 at 5:00 PM ET to submit votes
TORONTO, June 25, 2026 /PRNewswire/ – DeFi Technologies Inc. (the “Company” or “DeFi Technologies”) (NASDAQ: DEFT) (CBOE CA: DEFI) (GR: R9B), a financial technology company bridging the gap between traditional capital markets and decentralized finance, announced today that it has extended the deadline for the submission of proxies related to its upcoming annual general and special meeting of shareholders (the “Meeting”) to June 28, 2026 at 5:00 PM ET. The Meeting will be held virtually on June 29, 2026 at 10:00 AM ET at https://meetings.lumiconnect.com/400-468-404-350.
The deadline is being extended to allow holders (“Shareholders”) of DeFi Technologies common shares (the “Shares”) more time to vote and to ensure a quorum is present at the Meeting. Shareholders should refer to the Company’s Management Information Circular dated May 20, 2026 for detailed instructions on how to vote as registered or beneficial holder of Shares.
About DeFi Technologies
DeFi Technologies Inc. (Nasdaq: DEFT) (CBOE CA: DEFI) (GR: R9B) (Brazil B3: DEFT31) is a financial technology company building for the convergence of traditional capital markets and decentralized finance (“DeFi“). As a publicly listed and vertically integrated digital asset platform, DeFi Technologies provides familiar, simple, secure, and regulated access to the digital asset economy through investment products, trading and liquidity infrastructure, research, and strategic capital deployment. Its business includes Valour, a leading issuer of regulated digital asset ETPs; Stillman Digital, an institutional-grade digital asset trading and liquidity platform; and DeFi Alpha, the Company’s internal business line focused on opportunistic trading, arbitrage, and other capital markets strategies. With deep expertise across capital markets and emerging technologies, DeFi Technologies is building the gateway between traditional finance and the future of digital assets.
Follow DeFi Technologies on LinkedIn and X/Twitter, and for more details, visit https://defi.tech/.
DeFi Technologies Subsidiaries
About Valour
Valour Inc. and Valour Digital Securities Limited (together, “Valour”) issues exchange traded products (“ETPs”) that enable retail and institutional investors to access digital assets in a simple and secure way via their traditional bank account. Valour is part of the asset management business line of DeFi Technologies. For more information about Valour, to subscribe, or to receive updates, visit valour.com.
About Stillman Digital
Stillman Digital is a leading digital asset liquidity provider that offers limitless liquidity solutions for businesses, focusing on industry-leading trade execution, settlement, and technology. For more information, please visit https://www.stillmandigital.com.
Cautionary note regarding forward-looking information:
This press release contains “forward-looking information” within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to; investor interest and confidence in digital assets; the regulatory environment with respect to the growth and adoption of decentralized finance; the pursuit by the Company and its subsidiaries of business opportunities; and the merits or potential returns of any such opportunities. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company, as the case may be, to be materially different from those expressed or implied by such forward-looking information. Such risks, uncertainties and other factors include, but is not limited to growth and development of DeFi and digital asset sector; rules and regulations with respect to DeFi and digital asset; fluctuation in digital asset price levels; general business, economic, competitive, political and social uncertainties. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.
THE CBOE CANADA EXCHANGE DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE
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SOURCE DeFi Technologies Inc.
Technology
Patronus AI Raises $50 Million Series B and Unveils First Digital World Models for AI Agent Training and Simulation
Published
15 minutes agoon
June 25, 2026By
New funding will accelerate development of Digital World Models and large-scale simulation environments for long-horizon AI agents
SAN FRANCISCO, June 25, 2026 /PRNewswire/ — Patronus AI today announced a $50 million Series B led by Greenfield Partners and unveiled its Digital World Models, a new class of large-scale simulation environments designed to help AI systems train, evaluate, and improve across complex digital workflows. The round included participation from existing investors Notable Capital, Lightspeed Venture Partners, Datadog, Samsung, Factorial Capital, Gokul Rajaram, and leading AI and software executives.
Since launching less than three years ago, Patronus AI has become a leader in AI evaluation, simulation infrastructure, and reliability testing for frontier AI systems. Today, Patronus AI works with the majority of the world’s leading frontier AI labs and hyperscalers. The company’s revenue has grown more than 15x over the past year, reflecting growing demand for infrastructure that helps organizations train, evaluate, and deploy increasingly autonomous AI systems. The new funding brings Patronus AI’s total capital raised to $70 million.
Patronus AI was founded by AI researchers and engineers with backgrounds at organizations including Meta AI, Amazon AGI, and Google. The team’s experience spans LLM evaluation, AI alignment, fairness, and embodied agents, providing the technical foundation for the company’s work in simulation and evaluation infrastructure.
From Static Benchmarks to Simulated Digital Worlds
The first phase of generative AI was built on static internet text and benchmark leaderboards. But as agents move into longer, more complex workflows, the limitations of that approach are becoming increasingly clear.
An agent managing a customer escalation, navigating enterprise software, conducting research across thousands of documents, or debugging production infrastructure cannot be trained through benchmark memorization alone. These systems need dynamic environments that resemble the digital world they will actually operate inside.
Patronus AI is building what it describes as Digital World Models — language diffusion world models that are designed to scale the creation of simulation data to train and evaluate AI agent actions across complex digital workflows.
The company builds simulation infrastructure that allows AI systems to train on realistic software, research, communication, and enterprise workflows. Instead of optimizing for narrow benchmark performance, the goal is to produce agents that can operate reliably across ambiguous, long-horizon tasks.
“Benchmarks were never the destination,” said Anand Kannappan, CEO and co-founder of Patronus AI. “Static evaluations tell you whether a model can answer a narrow question in a controlled setting. They do not tell you whether an agent can navigate ambiguity, recover from failure, or operate reliably across long, unpredictable workflows. That requires environments where systems can practice, adapt, and accumulate experience over time.”
Introducing World’s First Digital World Models
Patronus AI believes simulations will become one of the defining infrastructure layers of the AI era.
The company’s research focuses on generating ecologically valid environments where agents can encounter edge cases, recover from failures, and improve through repeated interaction. This includes simulation tooling, evaluation systems, and diffusion-based Digital World Models that can generate increasingly sophisticated training environments over time.
The approach is designed to address one of the largest unsolved problems in AI: scalable oversight.
As AI systems become more capable, manual review becomes increasingly insufficient. Patronus AI’s long-term vision is to build systems capable of supervising, evaluating, and governing increasingly autonomous agents at scale.
“Manual review does not scale once AI systems begin operating across millions of workflows and decisions,” said Kannappan. “That is why simulations matter. They create environments where AI systems can be tested, improved, and supervised before failures happen in production.”
New Funding Fuels Research and Expansion
With the new funding, Patronus AI plans to expand its research organization, grow its engineering team, and invest in the compute and infrastructure required to train and run Digital World Models at scale.
“Patronus AI is tackling one of the most important infrastructure problems in artificial intelligence,” said Itay Inbar, Partner at Greenfield Partners. “The future of AI will depend on systems that can learn and operate reliably in complex environments, and simulations are becoming essential to making that possible.”
About Patronus AI
Patronus AI is a simulation and evaluation infrastructure company building Digital World Models to accelerate the next generation of AI agents. Founded by former Meta AI researchers Anand Kannappan and Rebecca Qian, the company develops large-scale simulation environments, evaluation systems, and reliability infrastructure that help AI research and engineering teams to build and deploy trustworthy AI systems.
For more information, visit https://www.patronus.ai
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SOURCE Patronus AI
Technology
Bitwise Announces Monthly Distributions for IMST, ICOI, IMRA, IGME, ICRC, and IETH
Published
15 minutes agoon
June 25, 2026By
SAN FRANCISCO, June 25, 2026 /PRNewswire/ — Bitwise Asset Management, a leading crypto asset manager, today announced the monthly distributions for its suite of Option Income Strategy ETFs: IMST, ICOI, IMRA, IGME, ICRC, and IETH.
Fund
Ticker
Distribution
Per Share
Distribution
Rate
30-Day SEC
Yield
Return of
Capital
Ex-Date /
Record Date
Payment
Date
1-Month
Return
1-Year
Return
Since
Inception
Return*
Bitwise
COIN
Option
Income
Strategy
ETF
$0.16768
20.00 %
0.00 %
100.00 %
6/26/2026
6/30/2026
-11.80 %
-51.38 %
-29.37 %
Bitwise
MARA
Option
Income
Strategy
ETF
$0.11956
8.44 %
0.00 %
100.00 %
6/26/2026
6/30/2026
-3.92 %
-34.66 %
-19.84 %
Bitwise
MSTR
Option
Income
Strategy
ETF
$0.06972
11.45 %
0.00 %
100.00 %
6/26/2026
6/30/2026
-32.43 %
-69.28 %
-56.55 %
Bitwise
GME
Option
Income
Strategy
ETF
$0.38657
20.48 %
0.00 %
100.00 %
6/26/2026
6/30/2026
0.22 %
3.31 %
-14.45 %
Bitwise
CRCL
Option
Income
Strategy
ETF
$0.36850
22.36 %
0.00 %
100.00 %
6/26/2026
6/30/2026
-24.97 %
—
-44.13 %
Bitwise
Ethereum
Option
Income
Strategy
ETF
$0.09702
7.44 %
0.00 %
100.00 %
6/26/2026
6/30/2026
-23.75 %
—
-58.34 %
* Returns for periods of greater than one year are annualized.
The Distribution Rate shown is as of 4 p.m. ET on June 25, 2026. The Distribution Rate is the annual rate an investor would receive if the most recently declared distribution, which includes option income, remained the same going forward. The Distribution Rate is calculated by multiplying an ETF’s Distribution per Share by twelve (12), and dividing the resulting amount by the ETF’s most recent NAV. The Distribution Rate represents a single distribution from the ETF and does not represent its total return. The distribution may include a combination of ordinary dividends, capital gain, and return of investor capital, which may decrease a fund’s NAV and trading price over time. As a result, an investor may suffer significant losses to their investment. The Return of Capital percentage is the estimated portion of the distribution that represents an investor’s original investment. Future distributions may differ significantly and are not guaranteed. The 30-day SEC yield reflects the dividends and interest earned during the previous month, after deducting the fund’s expenses. This is also referred to as the “standardized yield” and provides an annualized estimate of what an investor would earn in yield over a 12-month period, assuming the fund continues to earn at the same rate.
Performance data quoted represents past performance and is no guarantee of future results. Short-term performance, in particular, is not a good indication of the fund’s future performance, and an investment should not be made based solely on returns. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. Current performance may be lower or higher than the original cost. For the most recent month-end performance, please call 1-415-707-3663.
The net expense ratio for each Option Income Fund is 0.98%, with the exception of IETH, which has a net expense ratio of 0.97%. (The gross expense ratio for ICOI and IMST is 0.99%, with a fee waiver in place through April 2, 2027.)
Risks and Important Information
Carefully consider the investment objectives, risk factors, charges, and expenses of the Bitwise COIN Option Income Strategy ETF (ICOI), Bitwise CRCL Option Income Strategy ETF (ICRC), Bitwise Ethereum Option Income Strategy ETF (IETH), Bitwise GME Option Income Strategy ETF (IGME), Bitwise MARA Option Income Strategy ETF (IMRA), and Bitwise MSTR Option Income Strategy ETF (IMST) (each a “Fund” and together the “Funds”) before investing. This and additional information can be found in each Fund’s full or summary prospectus, which may be obtained by visiting: for ICOI, icoietf.com; for ICRC, icrcetf.com; for IETH, iethetf.com; for IGME, igmeetf.com; for IMRA, imraetf.com; for IMST, imstetf.com. Investors should read it carefully before investing.
An investment in a Fund is not an investment in the underlying security. The Funds do not directly invest directly in shares of COIN, CRCL, GME, MARA, MSTR, or Ether ETPs. Fund shareholders are not entitled to any dividends from the underlying security.
A Fund’s strategy is subject to all potential losses if shares of the underlying security decrease in value, which may not be offset by income received by the Fund.
Covered Call Strategy Risk. A covered call strategy involves writing (selling) covered call options in return for the receipt of premiums. The seller of the option gives up the opportunity to benefit from price increases in the underlying instrument above the exercise price of the options but continues to bear the risk of underlying instrument price declines. The premiums received from the options may not be sufficient to offset any losses sustained from underlying instrument price declines over time.
The covered call strategy utilized by the Funds is “synthetic” because the Funds’ exposure to the price return of the underlying security is derived through options exposure, rather than direct holdings of the shares of the underlying security. Because such exposure is synthetic, it is possible that the Fund’s participation in the price return of the underlying security may not be as precise as if the Fund were directly holding shares of the underlying security.
Issuer-Specific Risks. Issuer-specific attributes may cause an investment held by the Fund to be more volatile than the market generally. The value of an individual security or particular type of security may be more volatile than the market as a whole and may perform differently from the value of the market as a whole.
Equity Securities Risk. Equity securities are subject to changes in value, and their values may be more volatile than those of other asset classes.
Digital Assets Risk. Circle, Coinbase, GameStop Corp, MARA Holdings, and Strategy (each a “Company” and together the “Companies”) may have substantial holdings of bitcoin and other digital assets. Accordingly, it is subject to the risks associated with such holdings. Bitcoin is a relatively new innovation and the market for bitcoin is subject to rapid price swings, changes and uncertainty. Bitcoin is subject to the risk of fraud, theft, manipulation or security failures, operational or other problems that impact the digital asset trading venues on which bitcoin trades. The realization of any of these risks could result in a decline in the acceptance of bitcoin and consequently a reduction in the value of bitcoin and shares of the Companies.
Custody Risk. Security breaches, computer malware and computer hacking attacks have been a prevalent concern in relation to digital assets. The bitcoin held by the Companies will likely be an appealing target to hackers or malware distributors seeking to destroy, damage or steal bitcoins. To the extent that any Company is unable to identify and mitigate or stop new security threats or otherwise adapt to technological changes in the digital asset industry, that Company’s bitcoins may be subject to theft, loss, destruction or other attack.
Digital Asset Regulatory Risk. There is a lack of consensus regarding the regulation of digital assets, including bitcoin, and their markets. Ongoing and future regulatory actions with respect to digital assets generally or bitcoin in particular may alter, perhaps to a materially adverse extent, the nature of an investment in the shares of the underlying security or the ability of the Companies to continue to operate.
Concentration Risk. The Fund is susceptible to an increased risk of loss, including losses due to adverse events that affect the Fund’s investments more than the market as a whole, to the extent that the Fund’s investments are concentrated in investments that provide exposure to the underlying securities and the industry to which they are assigned.
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. Derivative prices are highly volatile and may fluctuate substantially during a short period of time. Trading derivative instruments involves risks different from, or possibly greater than, the risks associated with investing directly in securities. The use of leverage may cause the Fund to liquidate portfolio positions when it would not be advantageous to do so in order to satisfy its obligations or to meet regulatory or contractual requirements for derivatives. The use of derivatives can magnify potential for gain or loss and, therefore, amplify the effects of market volatility on share price.
New Fund Risk. The Fund is a recently organized investment company with a limited operating history. As a result, prospective investors have a limited track record or history on which to base their investment decision.
Options Risk. The use of options involves investment strategies and risks different from those associated with ordinary portfolio securities transactions and depends on the ability of the Fund’s portfolio managers to forecast market movements correctly. The prices of options are volatile and are influenced by, among other things, actual and anticipated changes in the value of the underlying instrument, or in interest or currency exchange rates, including the anticipated volatility, which in turn are affected by fiscal and monetary policies and by national and international political and economic events.
Nondiversification Risk. The Funds are nondiversified and may hold a smaller number of portfolio securities than many other products. To the extent any Fund invests in a relatively small number of issuers, a decline in the market value of a particular security held by the Fund may affect its value more than if it invested in a larger number of issuers.
Bitwise Funds Trust ETFs are distributed by Foreside Fund Services, LLC, which is not affiliated with Bitwise or any of its affiliates.
Media Contact
Tova Kaufmann
pr@bitwiseinvestments.com
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SOURCE Bitwise Asset Management
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