Defiance Launches RIOX, The First 2X Leveraged Single-Stock ETF on Riot Platforms, Inc.

Core Viewpoint - Defiance ETFs has launched RIOX, the first 2X long ETF for Riot Platforms, Inc., aiming to provide 200% long daily targeted exposure to the company, allowing investors to gain leveraged exposure to the blockchain and cryptocurrency mining sector without needing a margin account [1][2]. Company Overview - Riot Platforms, Inc. is recognized as a leader in Bitcoin mining, strategically adding Bitcoin to its balance sheet, holding approximately 17,429 BTC valued at around $1.8 billion as of December 16, 2024 [2]. Industry Context - The launch of RIOX builds on the success of MSTX and offers investors a unique opportunity to amplify their exposure to the rapidly evolving blockchain and cryptocurrency mining sector [2]. Fund Characteristics - RIOX is designed for knowledgeable investors who actively monitor their portfolios, as it pursues a daily leveraged investment objective, making it riskier than non-leveraged alternatives [3][6]. - The fund aims to provide daily investment results that correspond to two times (200%) the share price performance of its underlying security [6]. Investment Strategy - The fund's investment adviser will not attempt to position the portfolio to limit gains or losses on a given trading day, which could lead to significant losses if the underlying security's price decreases substantially [7]. - RIOX is a non-diversified fund, which may lead to greater volatility and risk due to its concentrated investment in a single issuer [19]. Company Background - Defiance ETFs, founded in 2018, is at the forefront of ETF innovation, providing investors with amplified positions in high-growth companies without the need for a margin account [5]. Distribution Information - RIOX is distributed by Foreside Fund Services, LLC, with contact information provided for further inquiries [20].