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Proper Mechanical Commissioning Cuts Whole-Building Energy Use by a Median of 13%, JDI Industrial Services Analysis Finds

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Lawrence Berkeley National Laboratory studied 643 U.S. commercial buildings and found that structured commissioning during new construction pays for itself in under five years. Lawrence Berkeley National Laboratory (LBNL), U.S. Department of Energy — 2009

WESTMINSTER, S.C., June 25, 2026 /PRNewswire/ — JDI Industrial Services has released an analysis of federal and industry research examining one of the most persistent challenges in industrial and commercial construction: integrating new mechanical systems with existing facility infrastructure during turn-key projects.

Drawing on studies from the U.S. Department of Energy, Lawrence Berkeley National Laboratory (LBNL), Pacific Northwest National Laboratory (PNNL), and construction-industry research organizations, the analysis finds that coordination failures and poor system integration create billions of dollars in avoidable costs each year. At the same time, structured commissioning and controls optimization consistently deliver measurable returns through reduced energy consumption, lower rework costs, and improved operational performance.

The findings reveal a striking imbalance between the cost of integration failures and the cost of preventing them. According to the 2018 FMI Corporation and Autodesk Construction Disconnected Report, poor project data and communication account for 52% of all construction rework, resulting in approximately $31.3 billion in rework costs across the U.S. construction industry. The same report estimates that construction professionals spend roughly 35% of their working time, more than 14 hours per week, on non-productive activities such as searching for information, resolving conflicts, and correcting avoidable errors.

For facility owners undertaking turn-key mechanical projects, the implications extend far beyond construction schedules. Mechanical systems operate at the intersection of process requirements, building infrastructure, controls networks, utility services, and safety systems. When integration planning is incomplete, the resulting failures often emerge after equipment installation, when correction costs are highest and operational disruptions become unavoidable.

Mechanical Integration Failures Create Costs Before Systems Go Online

Mechanical integration problems rarely begin with equipment installation. Most originate during project planning, when incomplete documentation, poor coordination among trades, or insufficient understanding of existing facility conditions introduce risks that remain hidden until commissioning or startup.

According to the FMI Corporation and Autodesk Construction Disconnected Report (2018), construction workers spend approximately 35% of their time on non-productive activities, representing an estimated $177.5 billion in annual labor costs across the U.S. construction industry. Much of that lost time stems from locating project information, resolving conflicts between disciplines, and addressing work that must be corrected because of coordination failures.

For mechanical contractors, integration challenges often involve mismatches between new equipment and existing infrastructure. Electrical loads may differ from documented conditions. Building automation systems may require communication protocols that were not identified during design. Existing utility systems may have less available capacity than anticipated. Structural, process, and mechanical requirements may compete for the same physical space.

The analysis finds that these issues frequently appear during late-stage construction because integration planning is treated as a documentation exercise rather than a system-performance exercise. By the time problems become visible in the field, schedule pressure often encourages temporary workarounds rather than permanent solutions.

Industry research suggests that this approach creates a compounding cost effect. Every unresolved integration issue increases the likelihood of downstream rework, startup delays, performance deficiencies, and operational inefficiencies that persist long after construction is complete.

Rework Remains One of the Highest Hidden Costs in Construction

Available research indicates that the financial impact of rework remains significantly underestimated. According to data cited by Autodesk from the Navigant Construction Forum, direct rework costs typically account for between 4% and 6% of total project value. When indirect impacts such as schedule delays, management overhead, productivity losses, and operational disruptions are included, the figure approaches 9% of total project cost.

For a facility modernization project valued at $10 million, indirect and direct rework costs can represent hundreds of thousands of dollars in avoidable expenditures. Mechanical integration failures often contribute disproportionately because they affect interconnected systems rather than isolated components.

A misconfigured control sequence, for example, may require mechanical, electrical, automation, and operational teams to revisit completed work. A poorly coordinated equipment replacement can trigger modifications across multiple disciplines. What appears initially as a localized issue frequently expands into a project-wide coordination challenge.

The analysis concludes that successful turn-key construction depends less on equipment selection and more on the ability to coordinate mechanical systems within the broader operational environment of the facility.

According to a 2018 study by FMI and Autodesk, poor communication and data management are significant drivers of inefficiency in the construction industry. Rework attributable to these issues accounts for 52% of total rework, translating to an annual cost impact of $31.3 billion across the United States. The same study found that non-productive labor consumes 35% of all work hours, representing an annual labor impact of $177.5 billion. Complementing these findings, the Navigant Construction Forum estimates that direct rework costs alone account for 4 to 6% of total project cost, with the broader impact climbing to approximately 9% of project cost once indirect costs are factored in (Navigant Construction Forum; FMI / Autodesk, 2018).

Commissioning Delivers Measurable Performance Improvements

While construction-industry research highlights the cost of integration failures, federal research demonstrates that structured commissioning provides a reliable method for reducing those risks.

A landmark Lawrence Berkeley National Laboratory study published for the U.S. Department of Energy examined 643 commercial buildings across the United States and found that commissioning new-construction facilities produced median whole-building energy savings of 13%. The same study found a median payback period of 4.2 years.

The significance of these findings extends beyond energy efficiency. Commissioning serves as a verification process that confirms systems operate according to design intent while functioning properly within the facility’s existing infrastructure.

During commissioning, project teams validate equipment performance, controls integration, sequence-of-operations logic, system interactions, and operational readiness. Problems that might otherwise remain hidden until occupancy are identified and corrected before they become operational liabilities.

The LBNL analysis also found that commissioning costs represented a relatively small portion of overall project value compared with the performance benefits achieved. This finding reinforces the conclusion that commissioning functions primarily as a risk-reduction investment rather than a project expense.

For facility managers evaluating turn-key projects, commissioning represents one of the few integration safeguards with extensive federal performance data supporting its effectiveness.

Existing Facilities Often Achieve Greater Savings

Integration challenges are not limited to new construction. Existing facilities frequently experience performance degradation as building systems evolve over time through renovations, equipment replacements, and operational changes.

Lawrence Berkeley National Laboratory’s 2013 analysis of existing-building commissioning found median whole-building energy savings of 16%, with savings ranging from 10% to 30%. Notably, approximately 25% of buildings studied achieved energy reductions exceeding 30%. These results suggest that many facilities operate with significant inefficiencies created by integration issues that accumulate gradually and remain undetected during normal operations.

Mechanical systems may continue functioning while operating outside optimal performance parameters. Controls may no longer reflect current occupancy patterns. Equipment schedules may conflict with actual operational requirements. Sensors may provide inaccurate information to automation systems. Because these deficiencies often develop incrementally, they can remain unnoticed for years while increasing operating costs and reducing system reliability.

The analysis finds that commissioning provides a structured process for identifying and correcting these hidden integration failures before they generate larger maintenance or replacement costs.

Building Automation and Retuning Extend Integration Benefits

Mechanical system integration does not end when construction is completed. Long-term performance depends on the ongoing alignment between equipment operation, facility requirements, and building automation systems.

According to Pacific Northwest National Laboratory research conducted through the U.S. Department of Energy’s building retuning program, facilities that optimize controls and correct integration faults typically achieve energy savings ranging from 5% to 25%.

The program reports average energy-cost savings of approximately $0.185 per square foot annually, with simple payback periods ranging from 0.3 to 3.5 years. These findings illustrate the importance of viewing integration as a lifecycle process rather than a construction milestone. Mechanical systems operate within dynamic environments where occupancy patterns, production requirements, utility costs, and operational priorities continually evolve.

Facilities that maintain alignment between automation systems and operational needs tend to preserve performance gains achieved during commissioning. Facilities that neglect optimization frequently experience gradual declines in efficiency and reliability.

The analysis concludes that integration planning should extend beyond project turnover to include long-term performance verification and controls management.

Commissioning Costs Remain a Fraction of Potential Losses

One reason organizations defer commissioning is the perception that it adds unnecessary project costs. Federal research suggests otherwise.

According to research conducted by Lawrence Berkeley National Laboratory and the Building Commissioning Association, funded by the U.S. Department of Energy’s Building Technologies Office, the median commissioning cost for new construction projects declined to approximately $0.82 per square foot by 2018. That figure represents roughly 0.25% of the total construction cost.

When compared against potential rework expenses, operational inefficiencies, startup delays, and energy waste, commissioning costs remain comparatively small. The available evidence indicates that the financial consequences of inadequate integration substantially exceed the cost of implementing structured verification processes.

For facility engineers and project managers, the question therefore shifts from whether commissioning is affordable to whether the risks of skipping commissioning are acceptable.

Methodology

JDI Industrial Services synthesized publicly available findings from the FMI Corporation and Autodesk Construction Disconnected Report (2018), the Navigant Construction Forum as referenced by Autodesk’s 2024 construction-industry statistics analysis, Lawrence Berkeley National Laboratory’s Building Commissioning: A Golden Opportunity for Reducing Energy Costs and Greenhouse-Gas Emissions (2009, reaffirmed by the U.S. Department of Energy in 2018), Lawrence Berkeley National Laboratory’s 2013 existing-building commissioning research, and the Pacific Northwest National Laboratory Building Re-Tuning program. No proprietary survey or original research was conducted. All statistics were drawn from named third-party sources and reflect publicly available information current through June 2026.

Frequently Asked Questions

What does “seamless integration” mean in a turn-key mechanical project?

Seamless integration refers to the successful coordination of new mechanical systems with a facility’s existing infrastructure, utilities, controls, operational processes, and physical constraints. Integration extends beyond equipment installation and includes ensuring that HVAC systems, piping networks, automation controls, electrical systems, safety systems, and operational requirements function together as intended. Federal commissioning studies involving 643 commercial buildings found that projects using structured verification processes achieved median whole-building energy savings of 13%, demonstrating the measurable value of coordinated system integration.

Why do mechanical integration problems show up so often during turn-key construction?

Mechanical integration problems frequently emerge because existing facility conditions differ from assumptions made during planning and design. Construction-industry research from FMI and Autodesk found that 52% of rework originates from poor communication and project data issues. When documentation is incomplete or coordination among disciplines is insufficient, conflicts often remain hidden until installation, testing, or startup reveals them.

What should a turn-key contractor do before construction begins to protect existing systems?

Turn-key contractors should conduct detailed site investigations, verify existing conditions, document utility capacities, review automation-system requirements, identify operational constraints, and establish coordination procedures before construction begins. Early verification reduces the likelihood of downstream rework, which industry research estimates can account for 4% to 6% of project cost directly and approximately 9% when including indirect impacts.

What role does commissioning play in mechanical system integration?

Commissioning functions as the formal verification process that confirms mechanical systems operate according to design intent and integrate properly with existing facility infrastructure. Lawrence Berkeley National Laboratory research found that commissioning new construction projects produced median energy savings of 13% and achieved a median payback period of 4.2 years. Commissioning identifies performance deficiencies before they become operational problems and provides documented validation that systems are functioning correctly.

What questions should facility managers ask a turn-key contractor about integration before signing a contract?

Facility managers should ask contractors how they will verify existing conditions, how they will test control integration, how they will minimize operational disruptions, what commissioning procedures they will use, and how they will validate system performance after installation. Building owners should also request documentation regarding startup procedures, controls optimization, and long-term performance verification. Federal research indicates that structured commissioning and re-tuning programs can deliver energy savings ranging from 5% to 25%, making verification procedures an important indicator of project quality.

About JDI Industrial Services

JDI Industrial Services is a Westminster, South Carolina-based industrial mechanical contractor founded in 1997. The company provides turn-key mechanical construction, maintenance, installation, and industrial services for facility engineers, plant managers, and industrial operators throughout the Southeast. More information is available at https://jdiindustrial.com/service-types/mechanical-contractor/.

Media Contact

Contact: Kevin Nealey
Email: keviCheckn.nealey@jdiindustrial.com
Location: Westminster, SC

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DeFi Technologies Inc. Announces Extension of Proxy Voting Deadline for Upcoming Annual General and Special Meeting

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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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Patronus AI Raises $50 Million Series B and Unveils First Digital World Models for AI Agent Training and Simulation

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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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Bitwise Announces Monthly Distributions for IMST, ICOI, IMRA, IGME, ICRC, and IETH

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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

ICOI

$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

IMRA

$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

IMST

$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

IGME

$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

ICRC

$0.36850

22.36 %

0.00 %

100.00 %

6/26/2026

6/30/2026

-24.97 %

-44.13 %

Bitwise
Ethereum
Option
Income
Strategy
ETF

IETH

$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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