Products typically begin as private placements and, after restrictions lapse and market requirements are met, may become eligible for OTC quotation. Not all products reach this stage at the same time. The progression from private → OTC → SEC reporting → exchange-listed reflects an evolving regulatory and market access framework that varies by product.

A private placement is an offering of securities that is exempt from registration under securities laws. These are generally available only to eligible accredited investors and are subject to transfer restrictions, meaning shares cannot be freely resold immediately. Private placements may later become publicly quoted or exchange-listed over time.

A public quotation on OTC Markets means that shares of the fund are available for secondary market trading through registered broker-dealers. Unlike exchange-listed ETFs, OTC-quoted funds typically do not have an ongoing creation and redemption program, which means share prices may trade at a premium or discount to net asset value (NAV).

An SEC reporting company is one that has registered its securities and files periodic reports with the U.S. Securities and Exchange Commission under the Securities Exchange Act of 1934. This includes annual reports (10-K or 10-K/A), quarterly reports (10-Q), and current reports (8-K). SEC reporting status increases disclosure obligations and provides investors with greater transparency into the product.

An exchange-traded fund (ETF) or exchange-traded product (ETP) is a security listed on a national securities exchange that can be bought and sold throughout the trading day like a stock. ETFs typically have creation and redemption mechanisms that allow authorized participants to create or redeem shares in exchange for the underlying assets, which helps keep the market price close to the fund's NAV.

When a product does not have an ongoing creation and redemption program — as is common with OTC-quoted trusts — its shares may trade at prices above (premium) or below (discount) the value of the underlying digital assets it holds. These differences can be significant and may persist for extended periods. Investors should be aware of this risk before buying or selling in the secondary market.

Management fees are accrued daily as a percentage of the fund's total assets and reflected in the amount of digital assets backing each share. The 0.15% annual ETF management fee covers ordinary operating costs including sponsor services, custody-related expenses, and routine administration. Brokerage commissions may still apply. See each product's prospectus for a complete fee schedule.

Starwal maintains a security-focused approach to digital asset custody. Depending on the product structure, underlying assets may be held through custody arrangements featuring offline storage, access controls, monitoring procedures, and third-party service providers selected to meet institutional standards. No custody solution eliminates risk entirely, and investors should review applicable product disclosures.

Starwal products allow exposure to digital assets through traditional brokerage accounts without requiring direct custody, wallet management, or private key security. This can be attractive for investors who prefer a familiar investment structure, are accessing through IRAs or tax-advantaged accounts, or who do not wish to directly hold and secure digital assets themselves.

Digital asset investments involve significant risk, including substantial price volatility, potential loss of all principal invested, liquidity risk, and regulatory uncertainty. Starwal's products are not registered under the Investment Company Act of 1940 and do not represent direct ownership of any digital asset. OTC-quoted shares may trade at a significant premium or discount to NAV. Staking rewards are not guaranteed. Past performance does not guarantee future results.