The purpose of this MiningCo.ETF (the fund) is to allow investors to instantly diversify among higher quality mining assets.
MININGCO.ETF is an Exchange Traded Fund that holds assets that are invested in mining Bitcoins where mining equipment is owned by the shareholders. Only assets with a proven track record of steady dividends and upholding their shareholder contracts will be considered. There is equal weight to all assets in the fund, no trading will occur outside of rebalancing the fund.
The Fund's portfolio will be public (where available) to show proof of ownership of underlying assets.
The fund seeks maximum transparency by fully disclosing all assets held in the fund at any time. All dividends accrued and paid will be disclosed. All management fees will be disclosed.
Assets to be included
Only mining assets where equipment is owned by the shareholders will be included in the fund. Only assets with a proven track record of steady dividends and upholding their contracts will be considered. Assets on Bitcoin Trading Corp. with a total score of 6 or higher will be included in the fund.
When a new asset meets these criteria, it will be included in the fund, following balancing rules (see Balancing). When an asset no longer meet these criteria, it will be removed from the fund, following balancing rules.
A motion to add or remove assets from the fund can be requested by the shareholders.
A portion of the fund will be held in Bitcoins. Not more than 20% of the entire fund’s value may be held in Bitcoins. The Bitcoin Reserve will be used to balance the fund and to offer share buybacks.
All assets in the fund, except the Bitcoin Reserve, will be weighted equally based on Bitcoin value. Assets in the fund will be kept in equal weight less the Bitcoin Reserve by periodically rebalancing the fund. This occurs through the manager utilizing the Bitcoin Reserve, when necessary, to trade underlying assets. This can not be maintained all the times with 100% accuracy. Rebalancing will occur not less than once per month, and not more than once per week. Acceptable tolerance for balancing is a 10% margin of error of entire fund’s value for each asset. Balancing to a higher degree will incur unnecessary exchange fees and might depress low volume underlying assets. Exchange fees will be kept to a minimum by trying to perform direct transfers between asset issuers and the fund.
Dividends will be paid only from dividends accrued from the underlying assets. Dividends will be paid weekly at most, no less than bi-weekly.
Share buybacks will be offered on a very limited basis at 90% of the current Net Asset Value per share buy placing bids on the market.
Net Asset Value
The Net Asset Value (NAV) is the value of all assets in the fund plus the Bitcoin reserve.
The Net Asset Value per share is the value divided by number of shares outstanding. This is also known as NAV/U
Management will be compensated in with 6.9% of all dividends paid. 6.9% will be paid to management from all accrued dividends before being paid to shareholders.
Underlying Asset Motions
Underlying assets held by the fund may periodically raise motions to vote. This fund will vote on motions on underlying assets favoring the best interest of the fund. Shareholder may request a motion for proxy voting the fund’s shares of an underlying asset.
Risk to shareholders
Although research has been put into each underlying asset, Mining assets in the past have been unpredictable. The fund’s value relies on the the value of the underlying assets. If the underlying asset value decreases, the entire fund’s value will also decrease. Additional risks to Mining assets include the price of Bitcoin, the price of mining equipment, the difficulty mining Bitcoins the Bitcoin reward per block, mining equipment upgrades, as well as many other risks. This fund does not hedge against any of these risks. Each shareholder must understand these risks before investing.
Management reserves the right to close this fund for any reason giving 30 days notice. All assets in the fund including unpaid dividends will be liquidated on the respective markets and paid to shareholders.