Exchange Traded Concepts to Close and Liquidate JAKOTA K-Pop and Korean Entertainment ETF (NYSE:KPOP)

Rhea-AI Summary

Exchange Traded Concepts has announced the termination and liquidation of the JAKOTA K-Pop and Korean Entertainment ETF (NYSE:KPOP). The fund will cease operations and liquidate on April 4, 2025.

Key dates include:

• March 31, 2025: Fund closes to new creation units
• April 1, 2025: Last trading day on NYSE Arca

During the liquidation period, the fund will be managed to facilitate orderly closure, potentially deviating from its stated investment strategy. Shareholders can only sell shares to certain broker-dealers from March 31 through the last trading day. On the Liquidation Date, remaining assets will be distributed pro rata to shareholders as taxable cash distributions, including any accrued capital gains and dividends.

Positive

• Orderly liquidation process with clear timeline provided
• Pro rata cash distribution of remaining assets to shareholders

Negative

• Complete fund termination and liquidation announced
• Trading restrictions implemented from March 31, 2025
• Fund may deviate from stated investment strategy during liquidation
• Forced liquidation may result in taxable events for shareholders

OKLAHOMA CITY, March 14, 2025 /PRNewswire/ -- After careful consideration, Exchange Traded Concepts, LLC, the Fund's investment adviser has recommended, and the Board of Trustees of Exchange Traded Concepts Trust has approved, the termination and liquidation of the Fund pursuant to the terms of a Plan of Liquidation. Accordingly, the Fund is expected to cease operations and liquidate on or about April 4, 2025 (the "Liquidation Date").

The Fund will be closed to orders for new creation units on March 31, 2025, and the last day of trading of the Fund's shares on the NYSE Arca, Inc. will be on or about April 1, 2025. From March 31, 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: 833-599-5767 or visit: www.kpopetf.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: 833-599-5767 or visit our website at  www.kpopetf.com. Read the prospectus or summary prospectus carefully before investing.

Investing involves risk, including possible loss of principal. There is no guarantee the Fund will achieve their stated objectives. In addition to the normal risks associated with investing, international investments may involve the risk of capital loss from unfavorable fluctuation in currency values, differences in generally accepted accounting principles or social, economic or political instability in other nations. Emerging markets involve heightened risks related to the same factors as well as increased volatility and lower trading volume. The Fund's concentration in an industry or sector can increase the impact of, and potential losses associated with, the risks from investing in those industries/sectors.

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-jakota-k-pop-and-korean-entertainment-etf-nysekpop-302401798.html

SOURCE Exchange Traded Concepts, LLC

FAQ

When will the KPOP ETF stop trading on NYSE Arca?

The KPOP ETF will have its last trading day on NYSE Arca on or about April 1, 2025.

What happens to KPOP ETF shares during the liquidation process?

From March 31 to April 1, 2025, shareholders can only sell shares to certain broker-dealers. After the last trading day until April 4, no secondary market trading will be possible.

How will KPOP ETF shareholders receive their final distribution?

On April 4, 2025, shareholders will receive pro rata cash distributions including accrued capital gains and dividends, if any.

Are the final distributions from KPOP ETF liquidation taxable?

Yes, the final distributions from the KPOP ETF liquidation will be taxable events for shareholders.