Exchange Traded Concepts Announces Liquidation of Optica Rare Earths ETF on NYSE:CRIT

Exchange Traded Concepts to Liquidate Optica ETF

In a recent announcement, Exchange Traded Concepts, LLC, the investment advisor for the Optica Rare Earths & Critical Materials ETF (NYSE:CRIT), confirmed its decision to terminate and liquidate the Fund. This resolution comes after thorough contemplation and has been approved by the Board of Trustees of the Exchange Traded Concepts Trust. The liquidation process is scheduled to unfold, with operations ceasing on or about March 21, 2025.

The timeline for this liquidation indicates significant upcoming dates for investors. As of March 17, 2025, the Fund will close to new orders for creation units, effectively halting new investments. Moreover, the final trading day for shares on the NYSE Arca, Inc. is projected to be around March 18, 2025. Post this date, shareholders will face restrictions in selling their shares, as they may only transact with selected broker-dealers, and there is no guarantee for market availability during this period.

From the last trading day until the liquidation date, transactions in the secondary market for Fund shares will not be permissible, marking a crucial moment for current investors. All transactions during this period might incur typical brokerage fees, potentially affecting returns.

To ensure an organized liquidation, the Fund's management will implement strategies to facilitate the transition, which may involve converting assets to cash or investing in highly liquid alternatives. Consequently, the method of Fund management preceding the liquidation may deviate from its typical investment strategy, possibly hindering the Fund’s capability to meet its usual investment goals.

Upon reaching the liquidation date, assets held by the Fund will be liquidated, and proceeds will be distributed in cash to remaining shareholders on a pro-rata basis. It’s critical for investors to understand that these distributions are considered taxable events and will encompass accrued capital gains and dividends, if applicable. The net asset value of the Fund will reflect the liquidation costs as calculated on the Liquidation Date. After all distributions are completed, the Fund is set to terminate permanently.

For shareholders seeking further details or clarification regarding this process, assistance is available by calling 833-344-CRIT (2748) or visiting their official website at critetf.com. It is highly recommended that investors maintain this announcement as a supplementary document alongside their Summary Prospectus, Prospectus, and Statement of Additional Information (SAI).

Investor Considerations

Potential investors are urged to evaluate the investment objectives, associated risks, charges, and fees before proceeding with investments. As outlined in the Fund's earlier documents, investments come with variable degrees of risk and involve the possibility of the principal loss. Moreover, shares within the Fund may trade at a premium or discount relative to their net asset value (NAV). Importantly, shares of the ETF are traded at the market price rather than NAV and cannot be individually redeemed from the Fund. Investors should be cognizant that brokerage commissions may reduce returns, leading to fluctuations in the share value of the Fund compared to funds investing in a wider spectrum of industries.

Exchange Traded Concepts, LLC is the investment advisor overseeing the Fund, which is distributed by SEI Investments Distribution Co (SIDCO) located at 1 Freedom Valley Drive, Oaks, PA 19456. Notably, SIDCO operates independently from the Fund's investment advisor and Optica Capital Pty. Ltd.

Disclaimer: Investment Products and Services are not protected by FDIC insurance, are not backed by banks, and may diminish in value.