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Innovator Launches QBF, a Bitcoin ETF Providing a 20% Floor* Against Losses with No Cap on the Upside

1. Innovator launched QBF, offering cryptocurrency exposure with downside protection. 2. QBF features a 20% maximum loss and an uncapped 80% participation rate. 3. Demand for crypto investments is rising, spurred by favorable regulatory changes. 4. Bitcoin's price volatility poses both risks and opportunities for investors. 5. Investors are cautious of sharable gains against potential large value drops.

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FAQ

Why Bullish?

The launch of QBF reflects growing investor interest in bitcoin, likely boosting ARKB through increased bitcoin exposure.

How important is it?

Innovator's focus on protecting investments while participating in upside aligns with investors' interests in ARKB.

Why Short Term?

Immediate interest in QBF may lead to swift adjustments in ARKB's holdings and performance.

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BTCARKBQBF
QBF will have a 20% max loss* with uncapped gains and an 80% Participation Rate over a three-month outcome period February 06, 2025 09:00 ET  | Source: Innovator Capital Management CHICAGO, Feb. 06, 2025 (GLOBE NEWSWIRE) -- Innovator Capital Management, LLC (Innovator), pioneer and provider of the first and largest lineup of Defined Outcome ETFs™, today announced the launch of the Innovator Uncapped Bitcoin 20 Floor ETF® - Quarterly (QBF), the first ETF offering uncapped, risk-managed bitcoin exposure. Following the launch and record demand for spot bitcoin ETFs — coupled with a new presidential administration signaling greater friendliness towards crypto — investors and financial advisors are looking for opportunities to increase exposure to the emerging asset class, despite concerns of potentially large drops in investment value. QBF is designed to offer investors protection against losses greater than 20%* in bitcoin and uncapped upside with an 80% participation rate over a quarterly outcome period. TickerQBFNameInnovator Uncapped Bitcoin 20 Floor ETF® - QuarterlyExposureSpot BitcoinDownside Protection20% Floor*Participation Rate80% Participation Rate (uncapped)Outcome Period3-MonthsReference AssetCboe Bitcoin U.S. ETF Index The Fund does not invest directly in bitcoin. Historically, bitcoin exhibits large swings in price movement — both to the upside and downside over quarterly timeframes. For example, in 2018, bitcoin experienced quarterly losses of 51% in the first quarter and 44% in the fourth quarter. More recently, bitcoin experienced its second worst quarterly loss during the second quarter of 2022, losing nearly 60% of its value. Conversely, bitcoin’s best calendar quarter returns for each year from 2019 to 2024 were 178%, 171%, 103%, 4%, 72%, and 67%. QBF seeks to provide investors with exposure to the upside volatility while mitigating the downside potential. “Many investors are intrigued by crypto’s outsized gains and are gravitating towards bitcoin but are wary of losing everything,” said Graham Day, CIO at Innovator. “We brought QBF to market as a solution for advisors who want to offer clients bitcoin’s upside potential while simultaneously capping downside losses. Bitcoin has historically offered an asymmetric return profile, and it was crucial that we not cap upside gains in our efforts to cap downside losses.” About Innovator Capital Management, LLC Innovator was established in 2017 by Bruce Bond and John Southard, founders of the PowerShares ETF lineup that has grown to be the fourth largest in the world. The listing of three Innovator Buffer ETFs™ in August 2018 marked the launch of the world’s first Defined Outcome ETFs™. Innovator is dedicated to providing ETFs with built-in risk management that offer investors a high level of predictability around their investment outcomes. Today, with more than 130 ETFs and $23 billion in AUM, Innovator is the industry’s leading provider of Defined Outcome ETFs™. Media ContactFrank Taylor / Stephanie Dresslerinnovator@dlpr.com(646) 808-3647 * Before fees and expenses. There is no guarantee the Fund will achieve its investment objective. The Fund has characteristics unlike many other traditional investment products and may not be suitable for all investors. For more information regarding whether an investment in the Fund is right for you, please see "Investor Suitability" in the prospectus. The Fund faces numerous market trading risks, including bitcoin risk, bitcoin ETP risk, Defined Outcome strategy risk, Floor risk, Participation Rate risk, Outcome Period risk, derivatives risk, position limits risk, correlation risk, management risk, market risk, investment in a subsidiary risk, market maker risk, non-diversification risk, operation risk, options risk, trading issues risk, upside participation risk, and valuation risk. For a detailed list of Fund risks see the prospectus. The Fund seeks to provide shareholders with investment results that participate in a percentage of any positive price returns of bitcoin (the “Participation Rate”) while pursuing a maximum loss of 20% of any bitcoin price return losses (the “Floor”), before fees and expenses, over the Outcome Period. The Fund provides exposure to bitcoin price returns by investing in FLEX Options that reference one or more exchange-traded products that hold bitcoin directly or that reference the Cboe Bitcoin U.S. ETF Index. The Cboe Bitcoin U.S. ETF Index is a modified market capitalization-weighted index that is designed to track the performance of a basket of bitcoin ETFs listed on U.S. exchanges. The Fund does not directly invest in bitcoin. The Fund will not participate in the entirety of gains experienced by the bitcoin price and Fund shareholders will forfeit any gains in the bitcoin price that exceed the Participation Rate. The Participation Rate should be considered before investing in the Fund. The Participation Rate is a result of the Fund’s sought-after downside protection and is dependent upon market conditions at the time the Fund enters into its FLEX Options for the Outcome Period and is likely to rise or fall from one Outcome Period to the next. It is possible that the Participation Rate in a subsequent Outcome Period could be substantially lower or higher than the current Participation Rate. The Fund will experience the losses of the bitcoin price on a one-to-one basis prior to the Floor. If the Outcome Period has begun and the Fund has increased in value, an investor purchasing shares at that price may experience additional losses prior to the Floor to the extent the price of Shares has appreciated since the commencement of the Outcome Period. An investment in the Fund is only appropriate for shareholders willing to bear those losses. The Outcomes may only be realized by investors who hold shares at the outset of the Outcome Period and continue to hold them until the conclusion of the Outcome Period. Investors that purchase shares after the Outcome Period has begun or sell shares prior to the Outcome Period’s conclusion may experience investment returns that are very different from those that the Fund seeks to provide. The Fund will not terminate after the conclusion of the Outcome Period. After the conclusion of the Outcome Period, another will begin. Fund returns for a single Outcome Period will be different than the Outcomes achieved by the Fund over multiple Outcome Periods. There is no guarantee that the Outcomes for an Outcome Period will be realized. Bitcoin Investing Risk. The further development of the Bitcoin Network and the acceptance and use of bitcoin are subject to a variety of factors that are difficult to evaluate. The value of bitcoin has been, and may continue to be, substantially dependent on speculation. The slowing, stopping or reversing of the development of the Bitcoin Network or the acceptance of bitcoin may adversely affect the price of bitcoin. 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 Bitcoin Blockchain may contain flaws that can be exploited by hackers. Cryptocurrency exchanges have stopped operating and have permanently shut down due to fraud, technical glitches, hackers, or malware. Cryptocurrencies operate without central authority, are not backed by any government, and may experience very high volatility. FLEX Options Risk. The Fund will utilize FLEX Options issued and guaranteed for settlement by the Options Clearing Corporation (OCC). In the unlikely event that the OCC becomes insolvent or is otherwise unable to meet its settlement obligations, the Fund could suffer significant losses. Additionally, FLEX Options may be less liquid than standard options. In a less liquid market for the FLEX Options, the Fund may have difficulty closing out certain FLEX Options positions at desired times and prices. The values of FLEX Options do not increase or decrease at the same rate as the reference asset and may vary due to factors other than the price of reference asset. The Fund's investment objectives, risks, charges and expenses should be considered carefully before investing. The prospectus and summary prospectus contain this and other important information, and it may be obtained at innovatoretfs.com. Read it carefully before investing. The following marks: Accelerated ETFs®, Accelerated Plus ETF®, Accelerated Return ETFs®, Barrier ETF™, Buffer ETF™, Defined Income ETF™, Defined Outcome Bond ETF®, Defined Outcome ETFs™, Defined Protection ETF™, Define Your Future®, Enhanced ETF™, Floor ETF®, Innovator ETFs®, Leading the Defined Outcome ETF Revolution™, Managed Buffer ETFs®, Managed Outcome ETFs®, Stacker ETF™, Step-Up™, Step-Up ETFs®, Target Protection ETF™, 100% Buffer ETFs™ and all related names, logos, product and service names, designs, and slogans are the trademarks of Innovator Capital Management, LLC, its affiliates or licensors. Use of these terms is strictly prohibited without proper written authorization. Investing involves risks. Loss of principal is possible. Innovator ETFs are distributed by Foreside Fund Services, LLC. Copyright © 2025 Innovator Capital Management, LLC. All rights reserved.

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