AlphaBit Investments Launches DADS ETF: A Digital Asset Debt Strategy ETF Offering Risk-Managed Exposure to Digital Asset Revolution
The Actively Managed Fund Targets 4-6% Annual Distribution While Providing Fixed-Income Approach to High-Growth Digital Asset Sector (NASDAQ: DADS)
FOREST CITY, Iowa, Sept. 03, 2025 (GLOBE NEWSWIRE) -- AlphaBit Investments, LLC, in partnership with Tidal Investments LLC, announced today the launch of the Digital Asset Debt Strategy ETF (NASDAQ: DADS), an actively managed exchange-traded fund that provides investors with risk-managed exposure to the digital asset ecosystem through a diversified portfolio of debt securities.
We believe the DADS ETF addresses a critical gap in the market by offering professional investors and financial advisors a structured pathway to participate in the digital asset revolution without the extreme volatility typically associated with direct cryptocurrency investments. The fund seeks to combine the growth potential of the rapidly expanding digital asset sector with the stability potential typically associated with fixed-income investing.
"DADS represents a fundamental shift in how investors can access the digital asset opportunity," said Taylor J. Thompson, CEO of AlphaBit Investments. "We're providing a professionally managed, risk-aware approach that allows investors to participate in one of the most significant technological and financial innovations of our time while maintaining the discipline of traditional fixed-income investing."
Strategic Investment Approach
The DADS ETF employs an actively managed strategy focusing on owning debt securities from companies operating within four key digital asset sectors.
- Digital Asset Mining & Data Center Companies – infrastructure backbone providers with recurring revenue streams
- Platform & Payment Companies – issuers facilitating digital asset trading and transactions
- Global Asset Managers/Financial Service Providers – industry leaders driving digital asset adoption
- Direct Holders of Digital Assets – corporate and government entities with significant digital asset treasury holdings
The fund targets a 40-60% allocation to fixed-income positions, including convertible bonds, corporate bonds, and preferred securities, with a maximum 25% exposure to any single sector to ensure diversification and risk management.
Market Opportunity and Timing
Digital assets have rapidly evolved from niche technology into mainstream finance, with institutional adoption accelerating significantly. By Q1 2025, public companies held 688,000 BTC (3.3% of total supply), and over 90 listed companies currently maintain more than 1,000 BTC in treasury. Digital asset ETFs reached $118 billion in assets under management in 2024, representing one of the fastest-growing ETF categories in history.
"The data clearly shows we're witnessing a fundamental shift in how institutions and investors view digital assets," said Bryan Dewhurst, President & CCO of AlphaBit Investments. "RIA adoption of digital asset thematic ETFs surged 1,500% year-over-year in 2024, demonstrating that financial professionals now view digital assets as an emerging asset class deserving strategic allocation within diversified portfolios."
Competitive Advantages and Fund Structure
DADS is structured as a Registered Investment Company (RIC), providing investors with single-layer taxation and standard 1099 tax reporting, compared to the double taxation and K-1 complexity of C-Corp structured alternatives. The fund carries a total annual operating expense ratio of 1.04%, including a 0.75% management fee, which positions it competitively within the specialized digital asset ETF landscape.
The actively managed approach includes weekly Portfolio Manager team reviews of market conditions, issuer and instrument credit quality analysis, digital asset industry developments, and regulatory environment monitoring. This dynamic oversight allows for tactical adjustments as market conditions warrant, providing advantages over passive strategies in this rapidly evolving sector.
Target Investor Base and Portfolio Applications
DADS is designed to serve multiple strategic roles within diversified investor portfolios, including:
- core fixed-income allocation with digital asset growth potential.
- thematic exposure to digital assets with reduced volatility.
- income generation while maintaining growth opportunities.
- alternative diversification with unique risk/return characteristics.
We believe the fund is particularly well-suited for financial advisors looking for manageable digital asset exposure for clients, retirement investors interested in digital assets without extreme volatility, income-focused investors, and institutions requiring liquid, regulated securities for digital asset exposure.
The Fund does not invest directly in digital assets; however, it will be subject to the risks associated with digital assets by virtue of this investment. The fund is subject to significant risks that are not typically present in other investments, including possible loss of principal.
Leadership and Management
The DADS ETF is managed by an experienced team led by Taylor J. Thompson, CEO, and Bryan Dewhurst, President & CCO of AlphaBit Investments, working in partnership with Tidal Investments' seasoned portfolio management team including Michael Venuto, CIO, and Charles A. Ragauss, CFA, Portfolio Manager.
"Like the American pioneers who charted careful paths into new frontiers, the DADS ETF provides investors with a well-provisioned journey into the digital asset landscape, balancing opportunity with prudence, innovation with stability, and growth potential with professional risk management," added Thompson.
About AlphaBit Investments, LLC
AlphaBit Investments, LLC is a registered investment adviser located at 136 S 4th Street, Forest City, Iowa 50436. Founded in 2025, the firm combines decades of fixed-income expertise with digital asset insights to deliver institutional-grade investment management through disciplined research processes.
About Tidal Investments LLC
Tidal Investments LLC, a Tidal Financial Group company founded in March 2012, is an SEC-registered investment adviser located at 234 West Florida Street, Suite 203, Milwaukee, Wisconsin 53204. Tidal is dedicated to understanding, researching, and managing assets within the expanding ETF universe. As of March 31, 2025, Tidal had assets under management of approximately $28.08 billion and served as investment adviser or sub-adviser for 214 registered funds.
Important Risk Information
Investors should consider the investment objectives, risks, charges and expenses carefully before investing. For a prospectus with this and other information about the Fund, please visit www.dadsetf.com. Read the prospectus carefully before investing.
As used herein, Digital Asset Debt Securities, or DAD Securities, means debt securities of issuers that are directly involved in digital asset-related activities, such as mining digital assets, holding digital assets in their corporate treasury or government treasury, and/or working on platforms to facilitate payment with, or the transfer of, digital assets.
Bitcoin & Digital Assets Risk. While the Fund will not directly invest in digital assets, it will be subject to the risks associated with bitcoin by virtue of its investments in DAD Securities that hold bitcoin or other digital assets. Investing in digital assets exposes investors to significant risks that are not typically present in other investments. These risks include the uncertainty surrounding new technology, limited evaluation due to bitcoin’s short trading history, and the potential decline in adoption and value over the long term. The extreme volatility of the price of bitcoin and other digital assets is also a risk factor.
Fixed Income Securities Risk. The prices of fixed income securities respond to economic developments, particularly interest rate changes, as well as to changes in an issuer’s credit rating or market perceptions about the creditworthiness of an issuer. In general, the market price of fixed income securities with longer maturities will increase or decrease more in response to changes in interest rates than shorter-term securities. Changes in government intervention may have adverse effects on investments, volatility, and illiquidity in debt markets. These changes could cause the Fund’s net asset value to fluctuate or make it more difficult for the Fund to accurately value its securities.
Derivatives Risk. Derivatives are financial instruments, such as futures contracts, options and swaps, that derive value from the underlying reference asset or assets, such as stocks, bonds, or funds (including ETFs), interest rates or indexes. The Fund’s investments in derivatives may pose risks in addition to, and greater than, those associated with directly investing in securities or other ordinary investments, including risk related to the market, imperfect correlation with underlying investments or the Fund’s other portfolio holdings, higher price volatility, lack of availability, counterparty risk, liquidity, valuation, and legal restrictions. The use of derivatives is a highly specialized activity that involves investment techniques and risks different from those associated with ordinary portfolio securities transactions. The use of derivatives may result in larger losses or smaller gains than directly investing in securities. When the Fund uses derivatives, there may be imperfect correlation between the value of the underlying instrument and the derivative, which may prevent the Fund from achieving its investment objective.
Foreign and Emerging Markets Risks. Investments in foreign securities may involve risks such as social and political instability, market illiquidity, exchange-rate fluctuations, a high level of volatility and limited regulation. Investing in emerging markets involves different and greater risks, as these countries are substantially smaller, less liquid, and more volatile than securities markets in more developed markets.
Credit Risk. A bond's credit rating reflects the issuer's ability to make timely payments of interest or principal—the lower the rating, the higher the risk of default. If the issuer's financial strength deteriorates, the issuer's rating may be lowered, and the bond's value may decline.
New Fund Risk. The Fund is a recently organized, giving prospective investors a limited track record on which to base their investment decision.
New Sub-Adviser Risk. Although the Sub-Adviser’s principals and the Fund’s portfolio managers have experience managing investments in the past, the SubAdviser has no experience managing investments.
Distributed by Foreside Fund Services, LLC.
Contact info: info@dadsetf.com
Legal Disclaimer:
EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.
