Exchange Traded Concepts to Close and Liquidate The Optica Rare Earths & Critical Materials ETF (NYSE:CRIT)
Rhea-AI Summary
Exchange Traded Concepts has announced the termination and liquidation of the Optica Rare Earths & Critical Materials ETF (NYSE:CRIT). The fund will cease operations and liquidate on March 21, 2025. Important dates include:
- March 17, 2025: Fund closes to new creation units
- March 18, 2025: Last trading day on NYSE Arca
- March 21, 2025: Final liquidation and cash distribution to shareholders
During the liquidation period, the fund will be managed to facilitate orderly liquidation, potentially deviating from its stated investment strategy. Shareholders may only be able to sell shares to certain broker-dealers from March 17 through the last trading day. The final distribution will include accrued capital gains and dividends, if any, and will be considered a taxable event.
Positive
- None.
Negative
- Complete fund termination and liquidation
- Trading restrictions starting March 17, 2025
- Potential deviation from investment strategy during liquidation
- Forced taxable event for shareholders
- secondary market liquidity during wind-down
News Market Reaction
On the day this news was published, CRIT declined 3.54%, reflecting a moderate negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
The Fund will be closed to orders for new creation units on March 17, 2025, and the last day of trading of the Fund's shares on the NYSE Arca, Inc. will be on or about March 18, 2025. From March 17, 2025 through the last day of trading, shareholders may only be able to sell their shares to certain broker-dealers, and there is no assurance that there will be a market for Fund shares during that time period. Customary brokerage charges may apply to such transactions. From the last day of trading through the Liquidation Date, shareholders will not be able to purchase or sell shares in the secondary market.
In anticipation of the liquidation, the Fund will be managed in a manner intended to facilitate its orderly liquidation, such as by raising cash or making investments in other highly liquid assets. As a result, in preparation for the liquidation, all or a portion of the Fund may not be invested in a manner consistent with its stated investment strategy, which may prevent the Fund from achieving its investment objective.
On or about the Liquidation Date, the Fund will liquidate its assets and distribute cash pro rata to all remaining shareholders. These distributions are taxable events. In addition, these payments to shareholders will include accrued capital gains and dividends, if any. As calculated on the Liquidation Date, the Fund's net asset value will reflect the costs of liquidating the Fund. Once the distributions are complete, the Fund will terminate.
If you would like additional information, please call: 833-344-CRIT (2748) or visit: www.critetf.com.
Please retain this Supplement with your Summary Prospectus, Prospectus, and SAI for future reference.
Investors should consider the investment objectives, risks, charges and expenses carefully before investing.
For a prospectus or summary prospectus with this and other information about the Fund, please call 833-344-CRIT (2748) or visit our website at https://www.critetf.com/. Read the prospectus or summary prospectus carefully before investing.
Investments involve risk. Principal loss is possible. The fund may trade at a premium or discount to NAV. Shares of any ETF are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. Brokerage commissions will reduce returns. As a result, the value of the Fund's shares may rise and fall more than the value of shares of a fund that invests in securities of companies in a broader range of industries.
Exchange Traded Concepts, LLC serves as the investment advisor to the Fund. The Fund is distributed by SEI Investments Distribution Co (SIDCO), 1 Freedom Valley Drive,
Investment Products and Services:
NOT FDIC INSURED | NO BANK GUARANTEE | MAY LOSE VALUE
View original content:https://www.prnewswire.com/news-releases/exchange-traded-concepts-to-close-and-liquidate-the-optica-rare-earths--critical-materials-etf-nysecrit-302382344.html
SOURCE Exchange Traded Concepts, LLC
FAQ
When will the Optica Rare Earths ETF (CRIT) stop trading?
What happens to CRIT shareholders after the ETF liquidation?
Will CRIT shareholders face tax consequences from the ETF liquidation?
Can investors sell CRIT shares between March 17-18, 2025?
What is the final liquidation date for the CRIT ETF?
