AS FILED WITH THE U.S. SECURITIES AND EXCHANGE COMMISSION DECEMBER 8, 2017

File No. 333-180871 File No. 811-22700 U.S. SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM N-1A REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 [X] PRE-EFFECTIVE AMENDMENT NO. [ ] POST-EFFECTIVE AMENDMENT NO. 59 [X] and/or REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940 [X] AMENDMENT NO. 61 [X] EXCHANGE LISTED FUNDS TRUST (Exact Name of Registrant as Specified in Charter) 10900 Hefner Pointe Drive Suite 207 Oklahoma City, Oklahoma 73120 (Address of Principal Executive Offices, Zip Code) (405) 778-8377 (Registrant’s Telephone Number, including Area Code) J. Garrett Stevens Exchange Traded Concepts Trust 10900 Hefner Pointe Drive Suite 207 Oklahoma City, Oklahoma 73120 (Name and Address of Agent for Service) Copies to: Christopher D. Menconi Morgan, Lewis & Bockius LLP 1111 Pennsylvania Avenue NW Washington, DC 20004

It is proposed that this filing will become effective (check appropriate box): [ ] Immediately upon filing pursuant to paragraph (b) of Rule 485 [ ] On (date) pursuant to paragraph (b)(1)(iii) of Rule 485 [ ] 60 days after filing pursuant to paragraph (a)(1) of Rule 485 [ ] On (date) pursuant to paragraph (a)(1) of Rule 485 [X] 75 days after filing pursuant to paragraph (a)(2) of Rule 485 [ ] On (date) pursuant to paragraph (a)(2) of Rule 485 If appropriate, check the following box: [ ] This post-effective amendment designates a new effective date for a previously filed post-effective amendment.

SUBJECT TO COMPLETION, DATED DECEMBER 8, 2017

THE INFORMATION IN THIS PROSPECTUS IS NOT COMPLETE AND MAY BE CHANGED. WE MAY NOT SELL THESE SECURITIES UNTIL THE REGISTRATION STATEMENT FILED WITH THE SECURITIES AND EXCHANGE COMMISSION IS EFFECTIVE. THIS PROSPECTUS IS NOT AN OFFER TO SELL THESE SECURITIES AND IS NOT SOLICITING AN OFFER TO BUY THESE SECURITIES IN ANY JURISDICTION IN WHICH THE OFFER OR SALE IS NOT PERMITTED.

Exchange Listed Funds Trust

Prospectus

[ ], 2018

REX Bitcoin Strategy ETF (Ticker Symbol: [ ])

REX Short Bitcoin Strategy ETF (Ticker Symbol: [ ])

Principal Listing Exchange for each Fund: Cboe BZX Exchange, Inc.

The Funds are not suitable for all investors and are designed to be utilized only by sophisticated investors who understand the risks associated with the use of derivatives and seeking “short” investment exposure, are willing to assume a high degree of risk, and intend to actively monitor and manage their investments in the Funds.

The Funds are actively managed and are not expected to invest directly in bitcoin. As such, the Funds can be expected to perform differently from the performance of the bitcoin. Although the REX Short Bitcoin Strategy ETF seeks to provide “short” exposure, the Fund does not promise or seek to provide any specific negative multiple of the performance of bitcoin or Bitcoin Derivatives (as defined herein) over any specified period of time.

Investors in the REX Short Bitcoin Strategy ETF should understand the consequences of the “short” strategy employed by the Fund, which is subject to, among others, compounding and market volatility risk. The Fund normally will adjust its portfolio on a daily basis in seeking to provide short exposure, which entails obtaining additional short exposure as the Fund experiences gains, and reducing short exposure as the Fund experiences losses. As a result, the Fund’s performance may be more vulnerable to the effects of compounding than funds that do not seek to provide short investment exposure. During periods of high volatility, this risk may be exacerbated and the Fund may have losses as a result of such adjustments, even if the value of assets held by the Fund is ultimately unchanged.

The shares of each Fund have not been approved or disapproved by the U.S. Securities and Exchange Commission or the U.S. Commodity Futures Trading Commission nor has the U.S. Securities and Exchange Commission or the U.S. Commodity Futures Trading Commission passed upon the accuracy or adequacy of this Prospectus. Any representation to the contrary is a criminal offense. About This Prospectus This Prospectus has been arranged into different sections so that you can easily review this important information. For detailed information about the Funds, please see: Page FUND SUMMARIES REX Bitcoin Strategy ETF 1 REX Short Bitcoin Strategy ETF 14 SUMMARY INFORMATION ABOUT PURCHASING AND SELLING SHARES, TAXES AND FINANCIAL INTERMEDIARY COMPENSATION 27 MORE INFORMATION ABOUT THE INVESTMENT OBJECTIVES OF THE FUNDS 28 MORE INFORMATION ABOUT THE PRINCIPAL INVESTMENT STRATEGIES OF THE FUNDS 28 MORE INFORMATION ABOUT BITCOIN 29 MORE INFORMATION ABOUT THE PRINCIPAL RISKS OF INVESTING IN THE FUNDS 32 PORTFOLIO HOLDINGS 56 FUND MANAGEMENT 56 PORTFOLIO MANAGER 58 BUYING AND SELLING FUND SHARES 59 DISTRIBUTION AND SERVICE PLAN 61 DIVIDENDS, DISTRIBUTIONS AND TAXES 62 ADDITIONAL INFORMATION 65 FINANCIAL HIGHLIGHTS 66 HOW TO OBTAIN MORE INFORMATION ABOUT THE FUNDS BACK COVER Fund Summary: REX Bitcoin Strategy ETF

Investment Objective

The REX Bitcoin Strategy ETF (the “Fund”) seeks to provide investors with long exposure to the price movements of bitcoin.

Fees and Expenses

This table describes the fees and expenses that you may pay if you buy and hold shares of the Fund (“Shares”). This table and the Example below do not include the brokerage commissions that investors may pay on their purchases and sales of Shares.

Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) Management Fee1 [ ]% Distribution and Service (12b-1) Fees 0.00% Other Expenses2 [ ]% Acquired Fund Fees and Expenses2 [ ]% Total Annual Fund Operating Expenses [ ]%

1 Exchange Traded Concepts, LLC (the “Adviser”) has contractually agreed to waive the management fee it receives from the Fund in an amount equal to the management fee paid to the Adviser by the Subsidiary (defined below). This undertaking may be terminated only with the approval of the Fund’s Board of Trustees. 2 Other Expenses and Acquired Fund Fees and Expenses are based on estimated amounts for the current fiscal year.

Example

This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then sell all of your Shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund’s operating expenses remain the same. Any Fund fees waived by the Adviser are reflected in the 1 Year amount only. Although your actual costs may be higher or lower, based on these assumptions your cost would be:

1 Year 3 Years $[ ] $[ ]

Portfolio Turnover

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Shares are held in a taxable account. These costs, which are not reflected in Annual Fund Operating Expenses or in the Example, affect the Fund’s performance. Because the Fund is new, portfolio turnover information is not yet available. 1 Principal Investment Strategies

The Fund seeks to achieve its investment objective, under normal circumstances, by obtaining investment exposure to an actively managed portfolio of financial instruments providing long exposure to movements in the value of bitcoin, together with an actively managed portfolio of fixed income instruments. The value of the Fund’s Shares relates directly to the value of, and realized profit or loss from, the financial instruments and other assets held by the Fund. Fluctuations in the price of these financial instruments or assets could materially adversely affect an investment in the Fund.

“Bitcoin” is a digital asset based on the decentralized, open source protocol of the peer-to-peer bitcoin computer network (the “Bitcoin Network”). No single entity owns or operates the Bitcoin Network; the infrastructure is collectively maintained by a decentralized user base. The Bitcoin Network is accessed through software, and software governs bitcoin’s creation, movement, and ownership. The value of bitcoin is determined by the supply of and demand for bitcoin on websites that facilitate the transfer of bitcoin in exchange for government-issued currencies (“Bitcoin Exchanges”), and in private end-user-to-end-user transactions.

Bitcoin transaction and ownership records are reflected on the “Blockchain,” which is a digital public record or ledger. Copies of this ledger are stored in a decentralized manner on the computers of each Bitcoin Network user. Transaction data is permanently recorded in files called “blocks,” which reflect transactions that have been recorded and authenticated by Bitcoin Network participants. The Bitcoin Network software source code includes protocols that govern the creation of bitcoin and the cryptographic system that secures and verifies Bitcoin transactions.

The Fund does not expect to invest directly in bitcoin. Instead, the Fund will obtain investment exposure to the price movements of bitcoin through the use of financial instruments that provide exposure to the price movements of bitcoin. This exposure may include long positions in options contracts, swap contracts, futures contracts, and other derivative instruments linked to bitcoin, the price of bitcoin, or an index thereof (such instruments, “Bitcoin Derivatives”). The Fund expects the notional value of its exposure to bitcoin to be equal to approximately 100% of Fund assets at the close of each trading day, but the notional value of such exposure may be less, and could be substantially less, at the close of any trading day.

The Fund expects to obtain exposure to Bitcoin Derivatives primarily by investing up to 25% of its total assets, as measured at the end of every quarter of the Fund’s taxable year, in a wholly-owned and controlled Cayman Islands subsidiary (the “Subsidiary”). The Subsidiary generally will invest in long positions in Bitcoin Derivatives that provide exposure that is generally correlated to the price movements of bitcoin, such as long positions in futures contracts, swap contracts, and in-the-money call options linked to the price of bitcoin, and will periodically unwind a portion of its positions. The Subsidiary may also invest in other instruments that provide exposure to the price movement of bitcoin, including: fixed income securities; pooled investment vehicles, including those that are not registered pursuant to the Investment Company Act of 1940 (the “1940 Act”); and other investments intended to serve as margin or collateral for the Subsidiary’s derivatives positions. The Subsidiary is advised by the Adviser, managed on a day-to-day basis by Vident Investment Advisory, LLC (the “Sub-Adviser”), and has the same investment objective as the Fund. Unlike the Fund, the Subsidiary may invest to a greater extent in commodities, including Bitcoin Derivatives, than the Fund. The Subsidiary’s investments in such instruments will be subject to limits on leverage imposed by the 1940 Act. The Fund’s investment in the Subsidiary is expected to provide the Fund with an effective means of obtaining exposure to Bitcoin Derivatives in a manner consistent with U.S. federal tax law requirements applicable to regulated investment companies. The Fund may also invest in Bitcoin Derivatives directly to a limited extent, consistent with limitations imposed by the federal securities laws and U.S. federal tax law requirements applicable to regulated investment companies. 2 Certain derivatives contracts, by their terms, have stated expirations. Therefore, in order to maintain consistent exposure to Bitcoin Derivatives, the Fund must periodically migrate out of Bitcoin Derivatives nearing expiration and into Bitcoin Derivatives with later expirations — a process referred to as “rolling.” The effect of this continuous process of selling contracts nearing expiration and buying longer-dated contracts is called “roll yield.”

Investments in derivative instruments, such as futures, options and swap agreements, have the economic effect of creating financial leverage in the Fund’s portfolio because such investments may give rise to losses that exceed the amount the Fund has invested in those instruments. Financial leverage will magnify, sometimes significantly, the Fund’s exposure to any increase or decrease in prices associated with a particular reference asset resulting in increased volatility in the value of the Fund’s portfolio. The value of the Fund’s portfolio is likely to experience greater volatility over short-term periods. While such financial leverage has the potential to produce greater gains, it also may result in greater losses, which in some cases may cause the Fund to liquidate other portfolio investments at a loss to comply with limits on leverage and asset segregation requirements imposed by the 1940 Act or to meet redemption requests.

In addition to the Fund’s investment in the Subsidiary and Bitcoin Derivatives, the Fund may also invest in (1) exchange-traded funds (“ETFs”), exchange-traded closed-end funds, other investment companies registered under the 1940 Act, and other pooled investment vehicles, including securities that are not registered under the Securities Act of 1933 (collectively, “Underlying Funds”) that provide exposure to bitcoin or the price movements of bitcoin; (2) exchange-traded notes (“ETNs”) that provide exposure to bitcoin or the price movements of bitcoin; and (3) fixed income securities (namely, commercial paper and U.S. government obligations), bank instruments, cash, and other cash equivalents to collateralize its exposure to the Bitcoin Derivatives and other investments and for investment purposes. The Fund may also take short positions with respect to Underlying Funds and/or ETNs that provide exposure to bitcoin.

Although the Fund seeks to provide investors with long exposure to the price movements of bitcoin, the Fund will experience positive or negative performance based on changes in the value of the Fund’s investments. As a result, price movements of bitcoin may not always correspond directly to price movements of the Fund’s holdings, and it is possible that the value of the Fund’s holdings may decrease even if the value of bitcoin increases. Investors should understand that the Fund does not expect to invest directly in, and may not successfully provide exposure to the price movements of, bitcoin. 3 Principal Risks

As with all funds, a shareholder is subject to the risk that his or her investment could lose money. An investment in the Fund is not a bank deposit and is not insured or guaranteed by the FDIC or any government agency. The principal risks affecting shareholders’ investments in the Fund are set forth below.

Active Management Risk . The Sub-Adviser continuously evaluates the Fund’s holdings, purchases and sales with a view to achieving the Fund’s investment objective. However, the achievement of the stated investment objective cannot be guaranteed over short- or long-term market cycles. The Sub-Adviser’s judgments about the markets, the economy, or companies may not anticipate actual market movements, economic conditions or company performance, and these judgments may affect the return on your investment.

Authorized Participants, Market Makers and Liquidity Providers Concentration Risk . Because the Fund is an ETF, only a limited number of institutional investors (known as “Authorized Participants”) are authorized to purchase and redeem shares directly from the Fund. In addition, there may be a limited number of market makers and/or liquidity providers in the marketplace. To the extent either of the following events occur, Fund shares may trade at a material discount to NAV and possibly face delisting: (i) Authorized Participants exit the business or otherwise become unable to process creation and/or redemption orders and no other Authorized Participants step forward to perform these services, or (ii) market makers and/or liquidity providers exit the business or significantly reduce their business activities and no other entities step forward to perform their functions.

Bitcoin Risk. Because of the complex nature of bitcoin itself, an investor in the Fund may face numerous material risks that may not be present in other investments. These risks include:

Bitcoin Exchange Risk. A number of Bitcoin Exchanges have been closed due to fraud, failure or security breaches. A lack of stability in the Bitcoin Exchange market and the closure or temporary shutdown of Bitcoin Exchanges may reduce confidence in the Bitcoin Network and result in greater volatility in the price of bitcoin.

Competition Risk. If a digital asset other than bitcoin obtains significant market share, this could reduce bitcoin’s market share and have an impact on the demand for, and price of, bitcoin and thereby adversely affect the value of the Fund’s investments.

Intellectual Property Risk. Third parties may assert intellectual property claims relating to the holding and transfer of digital assets and their software code. 4 Internet and Cybersecurity Risk . The Bitcoin Network’s functionality relies on the Internet. A significant disruption of Internet connectivity affecting large numbers of users or geographic areas could impede the functionality of the Bitcoin Network and adversely affect the Fund. In addition, certain features of the Bitcoin Network, such as decentralization, open source protocol, and reliance on peer-to-peer connectivity, may increase the risk of fraud or cyber-attack by potentially reducing the likelihood of a coordinated response.

Maintenance Risk. Transactions on the Bitcoin Network are verified by bitcoin miners, which are Bitcoin Network participants that secure and verify bitcoin transactions through a peer-to-peer computer process. Miners may not have an adequate incentive to continue mining and may cease their mining operations, which may result in a reduction in the aggregate hashrate (confirmation process) of the Bitcoin Network. Any reduction in confidence in the confirmation process or aggregate hashrate of the Bitcoin Network may adversely affect the value of bitcoin. A reduction in the hashrate expended by miners on the Bitcoin Network could increase the likelihood of a malicious actor obtaining control in excess of 50% of the aggregate hashrate active on the Bitcoin Network. If such a scenario were to materialize, the malicious actor, by virtue of controlling in excess of 50% of the aggregate hashrate active on the Bitcoin Network, could prevent new transactions from being confirmed and/or reverse transactions that were previously completed. This would likely result in the loss of confidence in the confirmation process and the Bitcoin Network, which could adversely affect the price of bitcoin and an investment in the Fund.

New Asset and Limited Trading History Risk. Bitcoin, which is a new technological innovation with a limited history, is a new and highly speculative asset. There is no assurance that usage of bitcoin will continue to grow. A contraction in the use of bitcoin may result in increased volatility or a reduction in the price of bitcoin, which could adversely affect the value of the Fund. Bitcoin was invented in 2009; bitcoin and its trading history thus have existed for a relatively short time, which limits a potential shareholder’s ability to evaluate an investment in the Fund. Moreover, Bitcoin Derivatives have only recently been introduced to the U.S. marketplace.

Regulatory Risk. There exists regulatory uncertainty concerning the treatment of bitcoin. To the extent that future regulatory actions or policies limit the ability to exchange bitcoin or utilize them for payments, the demand for bitcoin may be reduced, which could impact the price of bitcoin and the value of the Fund’s investments.

Structural Risk. A small group of individuals contribute to core bitcoin decisions, including proposed software upgrades that alter the protocols and software that govern the properties of bitcoin, which may adversely affect an investment in the Fund. Moreover, if less than a significant majority of the users and miners on the Bitcoin Network install such software upgrade(s), the Bitcoin Network could “fork,” effectively splitting the Bitcoin Network into two competing networks, which could adversely affect the value of the Fund’s investments. The Bitcoin Network has already experienced two forks that resulted in new digital currencies referred to as “Bitcoin Cash” and “Bitcoin Gold.” The impact that the forks and new digital currencies will have on the Bitcoin Network and bitcoin is unclear. 5 Supply Risk. It is possible, and in fact, reasonably likely, that a small group of early bitcoin adopters hold a significant proportion of the bitcoin that has thus far been created. Sales of such bitcoin may impact the price of bitcoin.

Usage Risk. The growth of the Bitcoin Network is subject to a high degree of uncertainty. There is no assurance that the Bitcoin Network, or the service providers necessary to accommodate it, will continue in existence or grow. A decline in the popularity or acceptance of the Bitcoin Network may impair the price of bitcoin, which could have an adverse effect on the value of the Fund’s investments.

Valuation Risk. Political or economic crises may motivate large-scale sales of bitcoin either globally or locally. Large-scale sales of bitcoin could result in movements in the price of bitcoin and could negatively impact the value of the Fund’s investments. Investors should be aware that there is no assurance that bitcoin will maintain its long-term value in terms of purchasing power in the future or that the acceptance of bitcoin for payments by mainstream retail merchants and commercial businesses will continue to grow.

Cash Transactions Risk . Unlike most other ETFs, the Fund expects to effect its creations and redemptions in exchange for a significant cash component and a smaller component of in-kind securities. Paying redemption proceeds in cash rather than through in-kind delivery of portfolio securities may require the Fund to dispose of or sell portfolio investments to obtain the cash needed to distribute redemption proceeds at an inopportune time. This may cause the Fund to recognize investment income and/or capital gains or losses that it might not have recognized if it had satisfied a redemption completely in-kind. As a result, the Fund may be less tax efficient than ETFs that redeem in kind. As a practical matter, only institutions and large investors, such as market makers or other large broker-dealers, purchase or redeem Creation Units. Most investors will buy and sell shares of the Fund on an exchange.

Commodity Pool Regulatory Risk. The Fund’s investment exposure to Bitcoin Derivatives will cause it to be deemed to be a commodity pool, thereby subjecting the Fund to regulation under the Commodity Exchange Act and Commodity Futures Trading Commission (“CFTC”) rules. The Adviser is registered as a Commodity Pool Operator (“CPO”), the Sub-Adviser is registered as a Commodity Trading Advisor (“CTA”), and the Fund will be operated in accordance with applicable CFTC rules, as well as the regulatory scheme applicable to registered investment companies. Registration as a CPO and CTA imposes additional compliance obligations on the Adviser, the Sub-Adviser and the Fund related to additional laws, regulations, and enforcement policies, which could increase compliance costs and may affect the operations and financial performance of the Fund.

Correlation Risk. The Fund is not expected to invest directly in bitcoin and may not successfully track the price movements of bitcoin. 6 Counterparty Credit Risk. The Fund may invest in financial instruments involving counterparties that attempt to gain exposure to bitcoin, bitcoin prices, particular groups of securities, indices or asset classes without actually purchasing those investments, or to hedge a position. The Fund’s use of such financial instruments, including swap agreements, involves risks that are different from those associated with ordinary portfolio securities transactions. For example, the Fund is exposed to the risk that the counterparty may be unwilling or unable to make timely payments to meet its contractual obligations or may fail to return holdings that are subject to the agreement with the counterparty. If the counterparty becomes bankrupt or defaults on its payment obligations to the Fund, the Fund may not receive the full amount that it is entitled to receive. If this occurs, the value of your shares in the Fund will decrease.

Credit Risk. If an issuer or guarantor of a debt security held by the Fund or a counterparty to a financial contract with the Fund defaults or is downgraded or is perceived to be less creditworthy, or if the value of the assets underlying a security declines, the value of the Fund’s portfolio will typically decline.

Derivatives Risk. The Fund and its Subsidiary may invest in and will have investment exposure to Bitcoin Derivatives, including futures contracts, swap agreements, and options contracts, which are types of derivative contracts. A derivative refers to any financial instrument whose value is derived, at least in part, from the price of an underlying security, commodity, asset, rate, or index. The use of derivatives presents risks different from, and possibly greater than, the risks associated with investing directly in traditional securities. Changes in the value of a derivative may not correlate perfectly with the underlying security, asset, rate or index. Gains or losses in a derivative may be magnified and may be much greater than the derivative’s original cost. Because Bitcoin Derivatives were only recently introduced, the degree to which Bitcoin Derivatives are likely to provide exposure to movements in the price of bitcoin is extremely uncertain. If market participants executing trades in Bitcoin Derivatives face constraints, including capital constraints, security risks, or high execution costs with respect to direct investments in bitcoin, the price at which Bitcoin Derivatives trade may fail to capture price movements in the underlying price of bitcoin. Moreover, it is not clear how changes to the Bitcoin Network and determinations by any relevant derivatives exchange with respect to such changes to the Bitcoin Network will affect the value of any positions in Bitcoin Derivatives. In December 2015, the SEC proposed a new rule to regulate the use of derivatives by registered investment companies, such as the Fund. Whether and when this proposed rule will be adopted and its potential effects on the Fund are unclear as of the date of this Prospectus.

Futures Contracts Risk. When the Fund has an open futures contract position, it is subject to daily variation margin calls that could be substantial in the event of adverse price movements. Because futures require only a small initial investment in the form of a deposit or margin, they involve a high degree of leverage. If the Fund has insufficient cash to meet daily variation margin requirements, it might need to sell securities at a time when such sales are disadvantageous. F utures markets are highly volatile and the use of or exposure to futures contracts may increase volatility of the Fund’s NAV. Futures contracts are also subject to liquidity risk. 7 Swap Agreement Risk . Swap agreements are generally traded in over-the-counter (“OTC”) markets and have only recently become subject to regulation by the CFTC. CFTC rules, however, do not cover all types of swap agreements. Investors, therefore, may not receive the protection of CFTC regulation or the statutory scheme of the Commodity Exchange Act in connection with the Fund’s swap agreements. The lack of regulation in these markets could expose investors to significant losses under certain circumstances, including in the event of trading abuses or financial failure by participants. Unlike in futures contracts, the counterparty to uncleared OTC swap agreements is generally a single bank or other financial institution, rather than a clearing organization backed by a group of financial institutions. As a result, the Fund is subject to increased counterparty risk with respect to the amount it expects to receive from counterparties to uncleared swaps. If a counterparty becomes bankrupt or otherwise fails to perform its obligations due to financial difficulties, the Fund could suffer significant losses on these contracts and the value of an investor’s investment in the Fund may decline. OTC swaps of the type that may be utilized by the Fund are less liquid than futures contracts because they are not traded on an exchange, do not have uniform terms and conditions, and are generally entered into based upon the creditworthiness of the parties and the availability of credit support, such as collateral, and in general, are not transferable without the consent of the counterparty.

Options Risk . Options give the holder of the option the right to buy (or to sell) a position in a security or in a contract to the writer of the option, at a certain price. There may be imperfect correlation, or even no correlation, between price movements of an options contract and price movements of investments underlying an options contract. Lack of correlation (or tracking) may be due to factors unrelated to the value of the investments being hedged, such as speculative or other pressures on the markets in which these instruments are traded. Consequently, the effectiveness of bitcoin options in providing exposure to the price movements of options will depend, in part, on the degree of correlation between price movements in the derivatives and price movements in underlying bitcoin markets. Exchanges can limit the number of positions that can be held or controlled by the Fund or the Sub-Adviser, thus limiting the ability to implement the Fund’s strategies. Options are also particularly subject to leverage risk and can be subject to liquidity risk.

Derivatives Rolling Risk. The Fund is expected to invest in Bitcoin Derivatives and is subject to costs associated with and risks related to “rolling” (i.e., moving from derivatives nearing expiration into derivatives with later expirations). Depending on market factors, the further a derivatives contract is from expiration, the contract may reflect a forward price that is higher than the spot price of the underlying commodity (a condition known as “contango”) or lower (a condition known as “backwardation”), which can impact the Fund’s returns.

Early Closing Risk . An unanticipated early closing of the Cboe BZX Exchange, Inc. (the “Exchange”) may result in a shareholder’s inability to buy or sell Shares of the Fund on that day. 8 ETN Risk. The Fund is likely to obtain substantial exposure to the price movements of bitcoin by holding ETNs that provide exposure to the price of bitcoin. ETNs are unsecured, unsubordinated debt securities of an issuer that are listed and traded on a U.S. stock exchange. An ETN’s returns generally are linked to the performance of a particular market benchmark or strategy minus applicable fees. ETNs do not provide principal protection and may or may not make periodic coupon payments. ETNs are subject to credit risk, which is the risk that the issuer cannot pay interest or repay principal when it is due. Additionally, the value of an ETN may be influenced by time to maturity, level of supply and demand, volatility and lack of liquidity in the underlying market ( e.g. , the commodities market), changes in interest rates or the issuer’s credit rating, and other economic, legal, political or geographic events. The value of an investment in an ETN may be impacted by fees associated with the ETN. Structural aspects of the ETNs may impact their market value. Trading by affiliates of an ETN sponsor may create conflicts of interest. The issuer of an ETN may be unable to meet its obligations. The potential impact of Bitcoin Network forks on the value of a bitcoin ETN is unclear. ETNs issued by special purpose vehicles may include greater risk. ETNs are subject to risks associated with the underlying asset.

Interest Rate Risk . The value of the Fund’s fixed-income assets will decline because of rising interest rates. The magnitude of this decline will often be greater for longer-term fixed-income securities than shorter-term fixed-income securities.

Leveraging Risk. The Fund’s investment in derivative instruments generally requires a small investment relative to the amount of investment exposure assumed. As a result, such investments may give rise to losses that exceed the amount invested in those instruments. The cost of investing in such instruments generally increases as interest rates increase, which will lower the Fund’s return.

Liquidity Risk. The Fund will invest in derivatives and other instruments that may be less liquid than other types of investments. Investments that are less liquid or that trade less can be more difficult or more costly to buy, or to sell, compared to other more liquid or active investments. This liquidity risk is a factor of the trading volume of a particular investment, as well as the size and liquidity of the market for such an investment. The derivatives in which the Fund invests may not always be liquid. The large size of the positions which the Fund may acquire increases the risk of illiquidity both by making its positions more difficult to liquidate and increasing the losses incurred while trying to do so. Any type of disruption or illiquidity will potentially be exacerbated due to the fact that the Fund will typically invest in financial instruments related to one index. A lack of liquidity could have a negative effect on the Fund’s ability to achieve its investment objective and may result in losses to Fund shareholders.

Unlike the markets for traditional physical commodities, the market for Bitcoin Derivatives is new and may be riskier, less liquid, more volatile and more vulnerable to economic, market and industry changes than more established markets. The liquidity of the market will depend on, among other things, the adoption of bitcoin and the commercial and speculative interest in the market for the ability to hedge against the price of bitcoin with Bitcoin Derivatives. There can be no guarantee that a liquid market for Bitcoin Derivatives will develop. The Fund may be unable to consistently achieve exposure to bitcoin using Bitcoin Derivatives if a liquid market for Bitcoin Derivatives does not develop. 9 Market Risk . Due to market conditions, the value of the Fund’s investments may fluctuate significantly from day to day. This volatility may cause the value of your investment in the Fund to decrease.

New Fund Risk. As a new fund, there can be no assurance that the Fund will grow to or maintain an economically viable size, in which case it could ultimately liquidate. The Fund will compete with direct investments in bitcoin and other potential financial vehicles that are similar to the Fund, which could limit the market for the Shares and reduce the liquidity of the Shares. The Fund’s distributor does not maintain a secondary market in the Shares.

Non-Diversification Risk . The Fund is non-diversified, meaning that, as compared to a diversified fund, it can invest a greater percentage of its assets in securities issued by or representing a small number of issuers. As a result, the performance of these issuers can have a substantial impact on the Fund’s performance.

OTC Risk . Certain derivatives traded in OTC markets, including certain OTC options, involve significant liquidity risk. The absence or lack of liquidity may make it difficult or impossible for the Fund to sell such instruments promptly at an acceptable price. The absence of liquidity may also make it more difficult for the Fund to ascertain a market value for such instruments. Because derivatives traded in OTC markets are not guaranteed by an exchange or clearing corporation and generally do not require payment of margin, to the extent that the Fund has unrealized gains in such instruments or has deposited collateral with its counterparties, the Fund is subject to credit risk with respect to its counterparties. The Fund will seek to transact with only creditworthy counterparties to mitigate counterparty credit risk.

Portfolio Turnover Risk . The Fund’s investment strategy is expected to result in high portfolio turnover, which may result in increased transaction costs and may lower Fund performance.

Short Sale Exposure Risk . The Fund may seek “short” exposure to certain instruments through financial instruments such as swap agreements, which may cause the Fund to be exposed to certain risks associated with selling securities short. These risks include, under certain market conditions, an increase in the volatility and decrease in the liquidity of securities underlying the short position, which may lower the Fund’s return, result in a loss, have the effect of limiting the Fund’s ability to obtain exposure through financial instruments, or require the Fund to seek exposure through alternative investment strategies that may be less desirable or more costly to implement.

Short Sales Risk . Short sales are transactions in which the Fund sells a security it does not own. To complete the transaction, the Fund must borrow the security to make delivery to the buyer. The Fund is then obligated to replace the security borrowed by purchasing the security at the market price at the time of replacement. The price at such time may be higher or lower than the price at which the security was sold by the Fund. If the security goes down in price between the time the Fund sells the security and buys it back, the Fund will realize a gain on the transaction. Conversely, if the security goes up in price during the period, the Fund will realize a loss on the transaction. Any such loss is increased by the amount of premium or interest the Fund must pay to the lender of the security. Likewise, any gain will be decreased by the amount of premium or interest the Fund must pay to the lender of the security. Because a short position loses value as the security’s price increases and the market price of the security sold short could increase without limit, the loss on a short sale is theoretically unlimited. Short sales involve leverage because the Fund borrows securities and then sells them, effectively leveraging its assets. 10 Subsidiary Risk. The Subsidiary is not registered under the 1940 Act and, unless otherwise noted in this Prospectus, is not subject to all of the investor protections of the 1940 Act. Thus, the Fund, as the sole investor in the subsidiary, will not have all of the protections offered to shareholders of registered investment companies.

Tax Risk. The Fund must meet certain requirements regarding the source of its income and the diversification of its assets, among other requirements, to qualify as a regulated investment company (“RIC”) under Subchapter M of the Internal Revenue Code of 1986, as amended (the “Code”). Certain of the Fund’s investments may not generate qualifying income if made directly by the Fund. The Fund expects to gain significant exposure to Bitcoin Derivatives indirectly through the Subsidiary in a manner to ensure that it qualifies as a RIC under Subchapter M of the Code. Failure to comply with the requirements to qualify as a RIC would have significant negative tax consequences to Fund shareholders, including the imposition of a higher tax rate on the Fund and taxes on its distributions to shareholders, which would ultimately affect a shareholder’s return on its investment in the Fund. Additionally, the Fund’s investment in the Subsidiary could require the Fund to make substantial distributions to its shareholders in order to continue to qualify as a RIC.

Trading Risk . Shares of the Fund may trade on the Exchange above or below their net asset value (“NAV”). The NAV of Shares will fluctuate with changes in the market value of the Fund’s holdings. In addition, although the Fund’s Shares are currently listed on the Exchange, there can be no assurance that an active trading market for Shares will develop or be maintained. The Fund is also subject to the risk that the price of bitcoin may change sharply while the equity markets on which Shares of the Fund trade are closed, resulting in an inability to mitigate losses in a rapidly negative market. This risk may be heightened because of the nature of bitcoin, which is traded on exchange markets and over-the-counter 24-hours a day.

Underlying Funds Risk . The Fund may invest in ETFs, exchange-traded closed-end funds, other investment companies registered under the 1940 Act, other pooled investment vehicles not registered under the 1940 Act, and other securities that are not registered under the Securities Act of 1933 (the “Securities Act”), in which case the Fund’s performance will be directly related to the performance of those investment companies. Through its positions in these investment companies, the Fund will be subject to the risks associated with such vehicles, including the possibility that the value of their securities or instruments could decrease. Restricted securities not registered under the Securities Act may be less liquid and more difficult to value than other investments because such securities may not be readily marketable.

U.S. Government Securities Risk . The Fund may invest in U.S. government securities, which are subject to price fluctuations and to default in the event that an agency or instrumentality defaults on an obligation not backed by the full faith and credit of the United States. 11 Valuation Risk. Valuation risk is the risk that the Fund has valued certain investments at a higher price than the price at which they can be sold. This risk may be especially pronounced for investments, such as certain derivatives, which may be illiquid or which may become illiquid under certain market conditions, such as when trading in a particular investment has been halted temporarily by an exchange because the maximum price change of that investment has been realized. During such periods, it may be difficult for the Fund to assign an accurate daily value to those investments, and the Adviser may be required to fair value the investments in accordance with the Trust’s valuation policy, which was approved by the Board.

Volatility Risk. T he Fund’s derivative investments can be highly volatile and the Fund may experience large losses when buying, selling or holding such instruments. The price of bitcoin has experienced extreme market volatility in the past and can be expect to be very volatile in the future. High volatility may have an adverse impact on the Fund.

The Fund is not suitable for all investors. The Fund should be utilized only by investors who (a) understand the risks associated with the use of derivatives, (b) are willing to assume a high degree of risk, and (c) intend to actively monitor and manage their investments in the Fund. Additionally, the Fund should be utilized only by investors who understand that the Fund does not invest in physical bitcoin and may not successfully provide exposure to the price movements of bitcoin. Investors who do not meet these criteria should not buy shares of the Fund. An investment in the Fund is not a complete investment program.

Performance Information

The Fund is new and therefore has no performance history. Once the Fund has completed a full calendar year of operations, a bar chart and table will be included that will provide some indication of the risks of investing in the Fund by showing the variability of the Fund’s return based on net assets and comparing the variability of the Fund’s return to a broad measure of market performance.

12 Investment Advisers

Exchange Traded Concepts, LLC serves as the investment adviser to the Fund. Vident Investment Advisory, LLC serves as the sub-adviser to the Fund.

Portfolio Manager

Denise M. Krisko, CFA, President and Co-Founder of the Sub-Adviser, has served as portfolio manager of the Fund since its inception in [ ].

For important information about the purchase and sale of Shares and tax information, please turn to “Summary Information about Purchasing and Selling Shares, Taxes, and Financial Intermediary Compensation” on page 27 of the prospectus. 13 Fund Summary: REX Short Bitcoin Strategy ETF

Investment Objective

The REX Short Bitcoin Strategy ETF (the “Fund”) seeks to provide investors with short exposure to the price movements of bitcoin.

Fees and Expenses

This table describes the fees and expenses that you may pay if you buy and hold shares of the Fund (“Shares”). This table and the Example below do not include the brokerage commissions that investors may pay on their purchases and sales of Shares.

Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) Management Fee1 [ ]% Distribution and Service (12b-1) Fees 0.00% Other Expenses2 [ ]% Acquired Fund Fees and Expenses2 [ ]% Total Annual Fund Operating Expenses [ ]%

1 Exchange Traded Concepts, LLC (the “Adviser”) has contractually agreed to waive the management fee it receives from the Fund in an amount equal to the management fee paid to the Adviser by the Subsidiary (defined below). This undertaking may be terminated only with the approval of the Fund’s Board of Trustees. 2 Other Expenses and Acquired Fund Fees and Expenses are based on estimated amounts for the current fiscal year.

Example

This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then sell all of your Shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund’s operating expenses remain the same. Any Fund fees waived by the Adviser are reflected in the 1 Year amount only. Although your actual costs may be higher or lower, based on these assumptions your cost would be:

1 Year 3 Years $[ ] $[ ]

Portfolio Turnover

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Shares are held in a taxable account. These costs, which are not reflected in Annual Fund Operating Expenses or in the Example, affect the Fund’s performance. Because the Fund is new, portfolio turnover information is not yet available. 14 Principal Investment Strategies

The Fund seeks to achieve its investment objective, under normal circumstances, by obtaining investment exposure to an actively managed portfolio of financial instruments providing short exposure to movements in the value of bitcoin, together with an actively managed portfolio of fixed income instruments. The value of the Fund’s Shares relates directly to the value of, and realized profit or loss from, the financial instruments and other assets held by the Fund. Fluctuations in the price of these financial instruments or assets could materially adversely affect an investment in the Fund.

“Bitcoin” is a digital asset based on the decentralized, open source protocol of the peer-to-peer bitcoin computer network (the “Bitcoin Network”). No single entity owns or operates the Bitcoin Network; the infrastructure is collectively maintained by a decentralized user base. The Bitcoin Network is accessed through software, and software governs bitcoin’s creation, movement, and ownership. The value of bitcoin is determined by the supply of and demand for bitcoin on websites that facilitate the transfer of bitcoin in exchange for government-issued currencies (“Bitcoin Exchanges”), and in private end-user-to-end-user transactions.

Bitcoin transaction and ownership records are reflected on the “Blockchain,” which is a digital public record or ledger. Copies of this ledger are stored in a decentralized manner on the computers of each Bitcoin Network user. Transaction data is permanently recorded in files called “blocks,” which reflect transactions that have been recorded and authenticated by Bitcoin Network participants. The Bitcoin Network software source code includes protocols that govern the creation of bitcoin and the cryptographic system that secures and verifies Bitcoin transactions.

The Fund does not expect to invest directly in bitcoin. Instead, the Fund will obtain short investment exposure to the price movements of bitcoin through financial instruments that provide short exposure to the price movements of bitcoin. This exposure may include short positions in and short exposure to options contracts, swap contracts, futures contracts, and other derivative instruments linked to bitcoin, the price of bitcoin, or an index thereof (such instruments, “Bitcoin Derivatives”). The Fund will be actively managed with respect to the instruments held by the Fund, and the notional value of the Fund’s short exposure to bitcoin may vary on each trading day.

The Fund expects to obtain exposure to Bitcoin Derivatives primarily by investing up to 25% of its total assets, as measured at the end of every quarter of the Fund’s taxable year, in a wholly-owned and controlled Cayman Islands subsidiary (the “Subsidiary”). The Subsidiary generally will invest in short positions in Bitcoin Derivatives that provide short exposure to the price movements of bitcoin, such as short positions in futures contracts, swap contracts, and in-the-money call options linked to the price of bitcoin, and will periodically unwind a portion of its positions. The Subsidiary may also invest in other instruments that provide exposure to the price movement of bitcoin, including: fixed income securities; pooled investment vehicles, including those that are not registered pursuant to the Investment Company Act of 1940 (the “1940 Act”); and other investments intended to serve as margin or collateral for the Subsidiary’s derivatives positions. The Subsidiary is advised by the Adviser, managed on a day-to-day basis by Vident Investment Advisory, LLC (the “Sub-Adviser”), and has the same investment objective as the Fund. Unlike the Fund, the Subsidiary may invest to a greater extent in commodities, including Bitcoin Derivatives, than the Fund. The Subsidiary’s investments in such instruments will be subject to limits on leverage imposed by the 1940 Act. The Fund’s investment in the Subsidiary is expected to provide the Fund with an effective means of obtaining exposure to Bitcoin Derivatives in a manner consistent with U.S. federal tax law requirements applicable to regulated investment companies. The Fund may also invest in Bitcoin Derivatives directly to a limited extent, consistent with limitations imposed by the federal securities laws and U.S. federal tax law requirements applicable to regulated investment companies. 15 Certain derivatives contracts, by their terms, have stated expirations. Therefore, in order to maintain consistent exposure to Bitcoin Derivatives, the Fund must periodically migrate out of Bitcoin Derivatives nearing expiration and into Bitcoin Derivatives with later expirations — a process referred to as “rolling.” The effect of this continuous process of buying contracts nearing expiration and selling longer-dated contracts is called “roll yield.”

Investments in derivative instruments, such as futures, options and swap agreements, have the economic effect of creating financial leverage in the Fund’s portfolio because such investments may give rise to losses that exceed the amount the Fund has invested in those instruments. Financial leverage will magnify, sometimes significantly, the Fund’s exposure to any increase or decrease in prices associated with a particular reference asset resulting in increased volatility in the value of the Fund’s portfolio. The value of the Fund’s portfolio is likely to experience greater volatility over short-term periods. While such financial leverage has the potential to produce greater gains, it also may result in greater losses, which in some cases may cause the Fund to liquidate other portfolio investments at a loss to comply with limits on leverage and asset segregation requirements imposed by the 1940 Act or to meet redemption requests.

In addition to the Fund’s investment in the Subsidiary and Bitcoin Derivatives, the Fund may also invest in (1) exchange-traded funds (“ETFs”), exchange-traded closed-end funds, other investment companies registered under the 1940 Act, and other pooled investment vehicles including securities that are not registered under the Securities Act of 1933 (collectively, “Underlying Funds”) that provide exposure to bitcoin or the price movements of bitcoin; (2) exchange-traded notes (“ETNs”) that provide exposure to bitcoin or the price movements of bitcoin; and (3)fixed income securities (namely, commercial paper and U.S. government obligations), bank instruments, cash, and other cash equivalents to collateralize its exposure to the Bitcoin Derivatives and other investments and for investment purposes. The Fund may also take short positions with respect to Underlying Funds and/or ETNs that provide exposure to bitcoin.

In seeking to provide short exposure to bitcoin, the Fund generally will seek to position its portfolio so that the notional value of its short exposure equals approximately 100% of Fund assets at the close of each trading day, but the absolute notional value of such exposure may be less, and could be substantially less, at the close of any trading day. Because the Fund seeks short exposure to bitcoin, changes in the value of the Fund’s assets during the day will affect whether the Fund’s short exposure needs to be adjusted. For example, if the price of bitcoin has increased on a given day, the notional value of the Fund’s exposure to bitcoin should increase, but net assets of the Fund should fall. As a result, the Fund’s short exposure will likely need to be decreased. Conversely, if the price of bitcoin has decreased on a given day, the notional value of the Fund’s exposure to bitcoin should decrease, but net assets of the Fund should increase. As a result, the Fund’s short exposure will need to be increased. 16 Although the Fund seeks to provide investors with short exposure to the price movements of bitcoin, the Fund will experience positive or negative performance based on changes in the value of the Fund’s investments. As a result, price movements of bitcoin may not always correspond directly to price movements of the Fund’s holdings, and it is possible that the value of the Fund’s holdings may decrease even if the value of bitcoin decreases. Investors should understand that the Fund does not expect to invest directly in, and may not successfully provide exposure to the price movements of, bitcoin.

Principal Risks

As with all funds, a shareholder is subject to the risk that his or her investment could lose money. An investment in the Fund is not a bank deposit and is not insured or guaranteed by the FDIC or any government agency. The principal risks affecting shareholders’ investments in the Fund are set forth below.

Active Management Risk . The Sub-Adviser continuously evaluates the Fund’s holdings, purchases and sales with a view to achieving the Fund’s investment objective. However, the achievement of the stated investment objective cannot be guaranteed over short- or long-term market cycles. The Sub-Adviser’s judgments about the markets, the economy, or companies may not anticipate actual market movements, economic conditions or company performance, and these judgments may affect the return on your investment.

Investors should understand that the Fund does not seek to provide investment performance that is exactly the inverse (-1x) of the performance of bitcoin. Not only will the Fund’s investment performance be affected by compounding, but it also will reflect the Fund’s investment in other types of investment products, which due to the active nature of the Fund’s investment strategies will vary in type and amount over time.

Authorized Participants, Market Makers and Liquidity Providers Concentration Risk . Because the Fund is an ETF, only a limited number of institutional investors (known as “Authorized Participants”) are authorized to purchase and redeem shares directly from the Fund. In addition, there may be a limited number of market makers and/or liquidity providers in the marketplace. To the extent either of the following events occur, Fund shares may trade at a material discount to NAV and possibly face delisting: (i) Authorized Participants exit the business or otherwise become unable to process creation and/or redemption orders and no other Authorized Participants step forward to perform these services, or (ii) market makers and/or liquidity providers exit the business or significantly reduce their business activities and no other entities step forward to perform their functions. 17 Bitcoin Risk. Because of the complex nature of bitcoin itself, an investor in the Fund may face numerous material risks that may not be present in other investments. These risks include:

Bitcoin Exchange Risk. A number of Bitcoin Exchanges have been closed due to fraud, failure or security breaches. An increase in stability in the Bitcoin Exchange market could favorably impact the price of bitcoin, which would be likely to impact the value of the Fund’s investments.

Competition Risk. If digital assets other than bitcoin lose significant market share, this could increase bitcoin’s market share and have an impact on the demand for, and price of, bitcoin and thereby adversely affect the value of the Fund’s investments.

Internet and Cybersecurity Risk . The Bitcoin Network’s functionality relies on the Internet. A significant disruption of Internet connectivity affecting large numbers of users or geographic areas could impede the functionality of the Bitcoin Network and adversely affect the Fund. In addition, certain features of the Bitcoin Network, such as decentralization, open source protocol, and reliance on peer-to-peer connectivity, may increase the risk of fraud or cyber-attack by potentially reducing the likelihood of a coordinated response.

New Asset and Limited Trading History Risk. Bitcoin, which is a new technological innovation with a limited history, is a new and highly speculative asset. There is no assurance that usage of bitcoin will continue to grow. A contraction in the use of bitcoin may result in increased volatility or a reduction in the price of bitcoin, which could adversely affect the value of the Fund. Bitcoin was invented in 2009; bitcoin and its trading history thus have existed for a relatively short time, which limits a potential shareholder’s ability to evaluate an investment in the Fund. Moreover, Bitcoin Derivatives have only recently been introduced to the U.S. marketplace.

Regulatory Risk. There exists regulatory uncertainty concerning the treatment of bitcoin. To the extent that future regulatory actions or policies enhance the ability to exchange bitcoin or utilize them for payments, the demand for bitcoin may be increased, which could impact the price of bitcoin and the value of the Fund’s investments.

Structural Risk. A small group of individuals contribute to core bitcoin decisions, including proposed software upgrades that alter the protocols and software that govern the properties of bitcoin, which may adversely affect an investment in the Fund. Moreover, if less than a significant majority of the users and miners on the Bitcoin Network install such software upgrade(s), the Bitcoin Network could “fork,” effectively splitting the Bitcoin Network into two competing networks, which could adversely affect the value of the Fund’s investments. The Bitcoin Network has already experienced two forks that resulted in new digital currencies referred to as “Bitcoin Cash” and “Bitcoin Gold.” The impact that the forks and new digital currencies will have on the Bitcoin Network and bitcoin is unclear. 18 Supply Risk. Because current bitcoin protocols contemplate a fixed supply of bitcoin, other than bitcoin generated via mining, an increased demand for bitcoin may not be met by the existing bitcoin supply, which could cause the price of bitcoin to increase dramatically.

Usage Risk. The growth of the Bitcoin Network is subject to a high degree of uncertainty. There is no assurance that the Bitcoin Network, or the service providers necessary to accommodate it, will continue in existence or grow. An increased acceptance of the Bitcoin Network may benefit the price of bitcoin, which could have an adverse effect on the value of the Fund’s investments.

Valuation Risk. Political or economic crises may motivate large-scale acquisitions of bitcoin either globally or locally. Large-scale purchases of bitcoin could result in movements in the price of bitcoin and could negatively impact the value of the Fund’s investments.

Cash Transactions Risk . Unlike most other ETFs, the Fund expects to effect its creations and redemptions in exchange for a significant cash component and a smaller component of in-kind securities. Paying redemption proceeds in cash rather than through in-kind delivery of portfolio securities may require the Fund to dispose of or sell portfolio investments to obtain the cash needed to distribute redemption proceeds at an inopportune time. This may cause the Fund to recognize investment income and/or capital gains or losses that it might not have recognized if it had satisfied a redemption completely in-kind. As a result, the Fund may be less tax efficient than ETFs that redeem in kind. As a practical matter, only institutions and large investors, such as market makers or other large broker-dealers, purchase or redeem Creation Units. Most investors will buy and sell shares of the Fund on an exchange.

Commodity Pool Regulatory Risk. The Fund’s investment exposure to Bitcoin Derivatives will cause it to be deemed to be a commodity pool, thereby subjecting the Fund to regulation under the Commodity Exchange Act and Commodity Futures Trading Commission (“CFTC”) rules. The Adviser is registered as a Commodity Pool Operator (“CPO”), the Sub-Adviser is registered as a Commodity Trading Advisor (“CTA”), and the Fund will be operated in accordance with applicable CFTC rules, as well as the regulatory scheme applicable to registered investment companies. Registration as a CPO and CTA imposes additional compliance obligations on the Adviser, the Sub-Adviser and the Fund related to additional laws, regulations, and enforcement policies, which could increase compliance costs and may affect the operations and financial performance of the Fund.

Compounding Risk . In the course of managing the Fund’s investments, the Sub-Adviser will need to periodically adjust the Fund’s holdings in order to maintain short investment exposure approximately equivalent to 100% of the Fund’s assets. This process entails obtaining additional short exposure as the Fund experiences investment gains, and reducing short exposure as the Fund experiences investment losses.

Compounding is the cumulative effect of applying investment gains and losses and income to the principal amount invested over time. Gains or losses experienced over a given period will increase or reduce the principal amount invested from which the subsequent period’s returns are calculated. All types of investments are subject to compounding to varying degrees, but the effects of compounding may be more pronounced for a fund that seeks to provide short investment exposure, such as the Fund. This effect becomes more pronounced as volatility increases. The effects of compounding may cause the performance of the Fund to differ from your expectations and may have an adverse effect on your investment over time, regardless of the performance of the Fund’s individual investments. 19 Correlation Risk. The Fund is not expected to invest directly in bitcoin and may not successfully track the price movements of bitcoin.

Counterparty Credit Risk. The Fund may invest in financial instruments involving counterparties that attempt to gain exposure to bitcoin, bitcoin prices, particular groups of securities, indices or asset classes without actually purchasing those investments, or to hedge a position. The Fund’s use of such financial instruments, including swap agreements, involves risks that are different from those associated with ordinary portfolio securities transactions. For example, the Fund is exposed to the risk that the counterparty may be unwilling or unable to make timely payments to meet its contractual obligations or may fail to return holdings that are subject to the agreement with the counterparty. If the counterparty becomes bankrupt or defaults on its payment obligations to the Fund, the Fund may not receive the full amount that it is entitled to receive. If this occurs, the value of your shares in the Fund will decrease.

Credit Risk. If an issuer or guarantor of a debt security held by the Fund or a counterparty to a financial contract with the Fund defaults or is downgraded or is perceived to be less creditworthy, or if the value of the assets underlying a security declines, the value of the Fund’s portfolio will typically decline.

Derivatives Risk. The Fund and its Subsidiary may invest in and will have investment exposure to Bitcoin Derivatives, including futures contracts, swap agreements, and options contracts, which are types of derivative contracts. A derivative refers to any financial instrument whose value is derived, at least in part, from the price of an underlying security, commodity, asset, rate, or index. The use of derivatives presents risks different from, and possibly greater than, the risks associated with investing directly in traditional securities. Changes in the value of a derivative may not correlate perfectly with the underlying security, asset, rate or index. Gains or losses in a derivative may be magnified and may be much greater than the derivative’s original cost. Because Bitcoin Derivatives were only recently introduced, the degree to which Bitcoin Derivatives are likely to provide exposure to movements in the price of bitcoin is extremely uncertain. If market participants executing trades in Bitcoin Derivatives face constraints, including capital constraints, security risks, or high execution costs with respect to direct investments in bitcoin, the price at which Bitcoin Derivatives trade may fail to capture price movements in the underlying price of bitcoin. Moreover, it is not clear how changes to the Bitcoin Network and determinations by any relevant derivatives exchange with respect to such changes to the Bitcoin Network will affect the value of any positions in Bitcoin Derivatives. In December 2015, the SEC proposed a new rule to regulate the use of derivatives by registered investment companies, such as the Fund. Whether and when this proposed rule will be adopted and its potential effects on the Fund are unclear as of the date of this Prospectus. 20 Futures Contracts Risk. When the Fund has an open futures contract position, it is subject to daily variation margin calls that could be substantial in the event of adverse price movements. Because futures require only a small initial investment in the form of a deposit or margin, they involve a high degree of leverage. If the Fund has insufficient cash to meet daily variation margin requirements, it might need to sell securities at a time when such sales are disadvantageous. F utures markets are highly volatile and the use of or exposure to futures contracts may increase volatility of the Fund’s NAV. Futures contracts are also subject to liquidity risk.

Swap Agreement Risk . Swap agreements are generally traded in over-the-counter (“OTC”) markets and have only recently become subject to regulation by the CFTC. CFTC rules, however, do not cover all types of swap agreements. Investors, therefore, may not receive the protection of CFTC regulation or the statutory scheme of the Commodity Exchange Act in connection with the Fund’s swap agreements. The lack of regulation in these markets could expose investors to significant losses under certain circumstances, including in the event of trading abuses or financial failure by participants. Unlike in futures contracts, the counterparty to uncleared OTC swap agreements is generally a single bank or other financial institution, rather than a clearing organization backed by a group of financial institutions. As a result, the Fund is subject to increased counterparty risk with respect to the amount it expects to receive from counterparties to uncleared swaps. If a counterparty becomes bankrupt or otherwise fails to perform its obligations due to financial difficulties, the Fund could suffer significant losses on these contracts and the value of an investor’s investment in the Fund may decline. OTC swaps of the type that may be utilized by the Fund are less liquid than futures contracts because they are not traded on an exchange, do not have uniform terms and conditions, and are generally entered into based upon the creditworthiness of the parties and the availability of credit support, such as collateral, and in general, are not transferable without the consent of the counterparty.

Options Risk . Options give the holder of the option the right to buy (or to sell) a position in a security or in a contract to the writer of the option, at a certain price. There may be imperfect correlation, or even no correlation, between price movements of an options contract and price movements of investments underlying an options contract. Lack of correlation (or tracking) may be due to factors unrelated to the value of the investments being hedged, such as speculative or other pressures on the markets in which these instruments are traded. Consequently, the effectiveness of bitcoin options in providing exposure to the price movements of options will depend, in part, on the degree of correlation between price movements in the derivatives and price movements in underlying bitcoin markets. Exchanges can limit the number of positions that can be held or controlled by the Fund or the Sub-Adviser, thus limiting the ability to implement the Fund’s strategies. Options are also particularly subject to leverage risk and can be subject to liquidity risk. 21 Derivatives Rolling Risk. The Fund is expected to invest in Bitcoin Derivatives and is subject to costs associated with and risks related to “rolling” (i.e., moving from derivatives nearing expiration into derivatives with later expirations). Depending on market factors, the further a derivatives contract is from expiration, the contract may reflect a forward price that is higher than the spot price of the underlying commodity (a condition known as “contango”) or lower (a condition known as “backwardation”), which can impact the Fund’s returns.

Early Closing Risk . An unanticipated early closing of the Cboe BZX Exchange, Inc. (the “Exchange”) may result in a shareholder’s inability to buy or sell Shares of the Fund on that day.

ETN Risk. The Fund is likely to obtain substantial exposure to the price movements of bitcoin by holding ETNs that provide exposure to the price of bitcoin. ETNs are unsecured, unsubordinated debt securities of an issuer that are listed and traded on a U.S. stock exchange. An ETN’s returns generally are linked to the performance of a particular market benchmark or strategy minus applicable fees. ETNs do not provide principal protection and may or may not make periodic coupon payments. ETNs are subject to credit risk, which is the risk that the issuer cannot pay interest or repay principal when it is due. Additionally, the value of an ETN may be influenced by time to maturity, level of supply and demand, volatility and lack of liquidity in the underlying market ( e.g. , the commodities market), changes in interest rates or the issuer’s credit rating, and other economic, legal, political or geographic events. The value of an investment in an ETN may be impacted by fees associated with the ETN. Structural aspects of the ETNs may impact their market value. Trading by affiliates of an ETN sponsor may create conflicts of interest. The issuer of an ETN may be unable to meet its obligations. The potential impact of Bitcoin Network forks on the value of a bitcoin ETN is unclear. ETNs issued by special purpose vehicles may include greater risk. ETNs are subject to risks associated with the underlying asset.

Interest Rate Risk . The value of the Fund’s fixed-income assets will decline because of rising interest rates. The magnitude of this decline will often be greater for longer-term fixed-income securities than shorter-term fixed-income securities.

Leveraging Risk. The Fund’s investment in derivative instruments generally requires a small investment relative to the amount of investment exposure assumed. As a result, such investments may give rise to losses that exceed the amount invested in those instruments. The cost of investing in such instruments generally increases as interest rates increase, which will lower the Fund’s return.

Liquidity Risk . The Fund will invest in derivatives and other instruments that may be less liquid than other types of investments. Investments that are less liquid or that trade less can be more difficult or more costly to buy, or to sell, compared to other more liquid or active investments. This liquidity risk is a factor of the trading volume of a particular investment, as well as the size and liquidity of the market for such an investment. The derivatives in which the Fund invests may not always be liquid. The large size of the positions which the Fund may acquire increases the risk of illiquidity both by making its positions more difficult to liquidate and increasing the losses incurred while trying to do so. Any type of disruption or illiquidity will potentially be exacerbated due to the fact that the Fund will typically invest in financial instruments related to one index. A lack of liquidity could have a negative effect on the Fund’s ability to achieve its investment objective and may result in losses to Fund shareholders. 22 Unlike the markets for traditional physical commodities, the market for Bitcoin Derivatives is new and may be riskier, less liquid, more volatile and more vulnerable to economic, market and industry changes than more established markets. The liquidity of the market will depend on, among other things, the adoption of bitcoin and the commercial and speculative interest in the market for the ability to hedge against the price of bitcoin with Bitcoin Derivatives. There can be no guarantee that a liquid market for Bitcoin Derivatives will develop. The Fund may be unable to consistently achieve exposure to bitcoin using Bitcoin Derivatives if a liquid market for Bitcoin Derivatives does not develop.

Market Risk . Due to market conditions, the value of the Fund’s investments may fluctuate significantly from day to day. This volatility may cause the value of your investment in the Fund to decrease.

New Fund Risk. As a new fund, there can be no assurance that the Fund will grow to or maintain an economically viable size, in which case it could ultimately liquidate. The Fund will compete with direct investments in bitcoin and other potential financial vehicles that are similar to the Fund, which could limit the market for the Shares and reduce the liquidity of the Shares. The Fund’s distributor does not maintain a secondary market in the Shares.

Non-Diversification Risk . The Fund is non-diversified, meaning that, as compared to a diversified fund, it can invest a greater percentage of its assets in securities issued by or representing a small number of issuers. As a result, the performance of these issuers can have a substantial impact on the Fund’s performance.

OTC Risk. Certain derivatives traded in OTC markets, including certain OTC options, involve significant liquidity risk. The absence or lack of liquidity may make it difficult or impossible for the Fund to sell such instruments promptly at an acceptable price. The absence of liquidity may also make it more difficult for the Fund to ascertain a market value for such instruments. Because derivatives traded in OTC markets are not guaranteed by an exchange or clearing corporation and generally do not require payment of margin, to the extent that the Fund has unrealized gains in such instruments or has deposited collateral with its counterparties, the Fund is subject to credit risk with respect to its counterparties. The Fund will seek to transact with only creditworthy counterparties to mitigate counterparty credit risk.

Portfolio Turnover Risk . The Fund’s investment strategy is expected to result in high portfolio turnover, which may result in increased transaction costs and may lower Fund performance.

Short Exposure Risk . Shareholders are expected to lose money when the value of bitcoin rises—a result that is the opposite from traditional funds. Inverse positions can also result in the total loss of an investor’s investment. A single day or intraday increase in the price of bitcoin approaching 100% could result in the total loss or almost total loss of an investor’s investment, even if the price of bitcoin subsequently decreases. 23 Short Sale Exposure Risk . The Fund may seek “short” exposure to certain investments through financial investments such as swap agreements, which may cause the Fund to be exposed to certain risks associated with selling securities short. These risks include, under certain market conditions, an increase in the volatility and decrease in the liquidity of securities underlying the short position, which may lower the Fund’s return, result in a loss, have the effect of limiting the Fund’s ability to obtain exposure through financial instruments, or require the Fund to seek exposure through alternative investment strategies that may be less desirable or more costly to implement.

Short Sales Risk . Short sales are transactions in which the Fund sells a security it does not own. To complete the transaction, the Fund must borrow the security to make delivery to the buyer. The Fund is then obligated to replace the security borrowed by purchasing the security at the market price at the time of replacement. The price at such time may be higher or lower than the price at which the security was sold by the Fund. If the security goes down in price between the time the Fund sells the security and buys it back, the Fund will realize a gain on the transaction. Conversely, if the security goes up in price during the period, the Fund will realize a loss on the transaction. Any such loss is increased by the amount of premium or interest the Fund must pay to the lender of the security. Likewise, any gain will be decreased by the amount of premium or interest the Fund must pay to the lender of the security. Because a short position loses value as the security’s price increases and the market price of the security sold short could increase without limit, the loss on a short sale is theoretically unlimited. Short sales involve leverage because the Fund borrows securities and then sells them, effectively leveraging its assets.

Subsidiary Risk. The Subsidiary is not registered under the 1940 Act and, unless otherwise noted in this Prospectus, is not subject to all of the investor protections of the 1940 Act. Thus, the Fund, as the sole investor in the subsidiary, will not have all of the protections offered to shareholders of registered investment companies.

Tax Risk. The Fund must meet certain requirements regarding the source of its income and the diversification of its assets, among other requirements, to qualify as a regulated investment company (“RIC”) under Subchapter M of the Internal Revenue Code of 1986, as amended (the “Code”). Certain of the Fund’s investments may not generate qualifying income if made directly by the Fund. The Fund expects to gain significant exposure to Bitcoin Derivatives indirectly through the Subsidiary in a manner to ensure that it qualifies as a RIC under Subchapter M of the Code. Failure to comply with the requirements to qualify as a RIC would have significant negative tax consequences to Fund shareholders, including the imposition of a higher tax rate on the Fund and taxes on its distributions to shareholders, which would ultimately affect a shareholder’s return on its investment in the Fund. Additionally, the Fund’s investment in the Subsidiary could require the Fund to make substantial distributions to its shareholders in order to continue to qualify as a RIC.

Trading Risk . Shares of the Fund may trade on the Exchange above or below their net asset value (“NAV”). The NAV of Shares will fluctuate with changes in the market value of the Fund’s holdings. In addition, although the Fund’s Shares are currently listed on the Exchange, there can be no assurance that an active trading market for Shares will develop or be maintained. The Fund is also subject to the risk that the price of bitcoin may change sharply while the equity markets on which Shares of the Fund trade are closed, resulting in an inability to mitigate losses in a rapidly negative market. This risk may be heightened because of the nature of bitcoin, which is traded on exchange markets and over-the-counter 24-hours a day. 24 Underlying Funds Risk . The Fund may invest in ETFs, exchange-traded closed-end funds, other investment companies registered under the 1940 Act, other pooled investment vehicles not registered under the 1940 Act, and other securities that are not registered under the Securities Act of 1933 (the “Securities Act”), in which case the Fund’s performance will be directly related to the performance of those investment companies. Through its positions in these investment companies, the Fund will be subject to the risks associated with such vehicles, including the possibility that the value of their securities or instruments could decrease. Restricted securities not registered under the Securities Act may be less liquid and more difficult to value than other investments because such securities may not be readily marketable.

U.S. Government Securities Risk . The Fund may invest in U.S. government securities, which are subject to price fluctuations and to default in the event that an agency or instrumentality defaults on an obligation not backed by the full faith and credit of the United States.

Valuation Risk. Valuation risk is the risk that the Fund has valued certain investments at a higher price than the price at which they can be sold. This risk may be especially pronounced for investments, such as certain derivatives, which may be illiquid or which may become illiquid under certain market conditions, such as when trading in a particular investment has been halted temporarily by an exchange because the maximum price change of that investment has been realized. During such periods, it may be difficult for the Fund to assign an accurate daily value to those investments, and the Adviser may be required to fair value the investments in accordance with the Trust’s valuation policy, which was approved by the Board.

Volatility Risk. The Fund’s derivative investments can be highly volatile and the Fund may experience large losses when buying, selling or holding such instruments. The price of bitcoin has experienced extreme market volatility in the past and can be expect to be very volatile in the future. High volatility may have an adverse impact on the Fund.

The Fund is not suitable for all investors. The Fund should be utilized only by investors who (a) understand the risks associated with seeking short investment exposure, (b) are willing to assume a high degree of risk, (c) understand the risks of shorting and (d) intend to actively monitor and manage their investments in the Fund. Additionally, the Fund should be utilized only by investors who understand that the Fund does not invest in physical bitcoin and may not successfully provide exposure to the price movements of bitcoin. Investors who do not meet these criteria should not buy shares of the Fund. An investment in the Fund is not a complete investment program.

Performance Information

The Fund is new, and therefore has no performance history. Once the Fund has completed a full calendar year of operations, a bar chart and table will be included that will provide some indication of the risks of investing in the Fund by showing the variability of the Fund’s return based on net assets and comparing the variability of the Fund’s return to a broad measure of market performance. 25 Investment Advisers

Exchange Traded Concepts, LLC serves as the investment adviser to the Fund. Vident Investment Advisory, LLC, serves as sub-adviser to the Fund.

Portfolio Manager

Denise M. Krisko, CFA, President and Co-Founder of the Sub-Adviser, has served as portfolio manager of the Fund since its inception in [ ].

For important information about the purchase and sale of Shares and tax information, please turn to “Summary Information about Purchasing and Selling Shares, Taxes, and Financial Intermediary Compensation” on page 27 of the prospectus. 26 Summary Information about Purchasing and Selling Shares,

Taxes, and Financial Intermediary Compensation

Purchase and Sale of Fund Shares

Individual shares (“Shares”) of the REX Bitcoin Strategy ETF and REX Short Bitcoin Strategy ETF (each, a “Fund” and together, the “Funds”) may only be purchased and sold on a national securities exchange through a broker-dealer. The Shares of the Funds are listed on the Exchange. The Shares that trade on the Exchange are “created” at their NAV by market makers, large investors and institutions only in a large specified number of shares called a “Creation Unit.” Each Fund issues and redeems Shares on a continuous basis, at NAV, only in Creation Units of at least 25,000 Shares. A “creator” enters into an authorized participant agreement (“Participant Agreement”) with the Funds’ distributor or uses a Depository Trust Company (“DTC”) participant who has executed a Participant Agreement (an “Authorized Participant”), and deposits into the relevant Fund a specified amount of cash (and, under certain circumstances, a portfolio of securities approximating certain holdings of the Fund) totaling the NAV of the Creation Unit(s), in exchange for at least 25,000 shares of the Fund (or multiples thereof).

The price of each Fund’s Shares is based on market price, and because exchange-traded fund shares trade at market prices rather than NAV, shares may trade at a price greater than NAV (premium) or less than NAV (discount). EXCEPT WHEN AGGREGATED IN CREATION UNITS, SHARES OF THE FUNDS ARE NOT REDEEMABLE SECURITIES.

27 Tax Information

The distributions made by the Funds are generally taxable, and will be taxed as ordinary income, qualified dividend income or capital gains, unless you are investing through a tax-deferred arrangement, such as a 401(k) plan or individual retirement account. Investments through such tax-deferred arrangements may be subject to taxation upon withdrawal therefrom.

Payments to Broker-Dealers and Other Financial Intermediaries

If you purchase shares of the Funds through a broker-dealer or other financial intermediary (such as a bank), the Funds and their related companies may pay the intermediary for the sale of Fund Shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the Funds over another investment. Ask your salesperson or visit your financial intermediary’s web site for more information.

More Information about the Investment Objectives of the Funds

The investment objective of each Fund is non-fundamental and may be changed by the Trust’s Board of Trustees (“Board”) without a shareholder vote.

More Information about the Principal Investment Strategies of the Funds

Each Fund is an actively managed ETF and is not expected to invest directly in bitcoin. As such, the Funds can be expected to perform differently from the performance of bitcoin and any index tracking bitcoin prices or performance. Although the REX Short Bitcoin Strategy ETF seeks to provide “short” exposure, the Fund does not promise or seek to provide any specific negative multiple of the performance of bitcoin or Bitcoin Derivatives over any specified period of time. T he Sub-Adviser, subject to the oversight of the Adviser and the Board, has discretion on a daily basis to manage each Fund’s portfolio in accordance with the Fund’s investment objective and investment policies.

Each Fund intends to achieve its investment objective primarily by obtaining investment exposure, under normal circumstances, to an actively managed portfolio of Bitcoin Derivatives (or, in the case of the REX Short Bitcoin Strategy ETF, an actively managed portfolio of short positions in Bitcoin Derivatives).

Each Fund’s investment in its Subsidiary is expected to provide the Fund with exposure to the commodities markets within the limitations of the federal tax requirements that apply to regulated investment companies and subject to the limits on leverage imposed by the 1940 Act. For more information about applicable federal tax requirements, please see “Dividends, Distributions and Taxes.”

28 It is expected that each Subsidiary will invest in Bitcoin Derivatives, fixed income securities, pooled investment vehicles, including those that are not registered pursuant to the 1940 Act, and other investments intended to serve as margin or collateral for the Subsidiary’s derivatives positions. Each Subsidiary is considered to be a commodity pool and therefore, subject to regulation under the Commodity Exchange Act. The Commodity Futures Trading Commission (“CFTC”), however, has not passed upon the merits on an investment in the Funds or the Subsidiaries, nor has the CFTC passed on the adequacy of this Prospectus.

The Sub-Adviser will consider whether it is advantageous for a Fund to invest directly in Bitcoin Derivatives as well as other bitcoin-linked financial instruments or if the desired exposure can be achieved more efficiently by investing in its Subsidiary, which would, in turn, purchase and hold Bitcoin Derivatives and other bitcoin-linked financial instruments. As a result, the level of each Fund’s investment in its Subsidiary may vary (up to 25%) depending on the types of bitcoin-linked investments used to achieve the Fund’s investment objective. For example, a Fund’s increased use of bitcoin-linked notes typically will result in decreased investment in the Subsidiary, whereas a Fund’s increased use of Bitcoin Derivatives typically will result in increased investment in the Subsidiary.

To the extent a Subsidiary invests in bitcoin-linked derivative instruments, it will comply with the same segregation and asset coverage requirements that are applicable to the Funds’ transactions in derivatives under the 1940 Act. Similarly, to the extent they are applicable to the investment activities of a Subsidiary, the Subsidiary will be subject to the same fundamental and certain other investment restrictions (except for the restriction on the purchase and sale of commodities and commodities contracts applicable to the Funds) and will follow the same compliance policies and procedures as the Funds. The Subsidiaries are managed by the Adviser and sub-advised by the Sub-Adviser, and each Subsidiary is overseen by its own board of directors. However, because each Fund is the sole shareholder in its respective Subsidiary, the Fund’s Board of Trustees has direct oversight over the Fund’s investments in its Subsidiary and indirect oversight over the Subsidiary’s operations and investment activities. For more information about the operation and management of the Funds’ Subsidiaries, please see “Investment Policies, Techniques and Risk Factors” in the Funds’ SAI.

The Adviser does not take defensive positions in the Funds’ portfolios during periods of adverse market, economic, political, or other conditions as the Adviser intends for each Fund to remain fully invested consistent with its investment strategy under all market conditions. This means that, based on market and economic conditions, a Fund’s performance could be lower than other types of mutual funds that may shift their portfolio assets to take advantage of market opportunities or to lessen the impact of a market decline.

More Information About Bitcoin

“Bitcoin” is a digital asset based on the decentralized, open source protocol of the peer-to-peer bitcoin computer network. Bitcoin can currently be used to pay for goods and services, can be purchased or sold on websites that facilitate the transfer of bitcoin in exchange for government-issued currencies, or can be transferred in individual end-user-to-end-user transactions under a barter system. No single entity owns or operates the Bitcoin Network; the infrastructure is collectively maintained by a decentralized user base. The Bitcoin Network is accessed through software, and software governs bitcoin’s creation, movement, and ownership.

29 The value of bitcoin is determined by the supply of and demand for bitcoin on the Bitcoin Exchanges (and in private end-user-to-end-user transactions), as well as by the number of merchants that accept bitcoin. Bitcoin transactions can be broadcast to the Bitcoin Network by any user’s Bitcoin Network software and bitcoin can be transferred without the involvement of intermediaries or third parties, other than verification by Bitcoin Network miners, which are Bitcoin Network participants that secure and verify bitcoin transactions through a peer-to-peer computer process. Third-party service providers such as Bitcoin Exchanges and third-party bitcoin payment processing services may charge potentially substantial fees for processing transactions and for converting, or facilitating the conversion of, bitcoin to or from fiat currency. The Bitcoin Network is decentralized and does not rely on either governmental authorities or financial institutions to create, transmit or determine the value of bitcoin. Rather, bitcoin is created and allocated by the Bitcoin Network protocol through the mining process subject to a strict, well-known issuance schedule contained within the protocol.

Bitcoin records are reflected on the “Blockchain,” which is a digital public record, or ledger, on which all bitcoin is recorded. The Blockchain is comprised of a digital record, copies of which are downloaded and stored in a decentralized manner on the computers of each Bitcoin Network user. Transaction data is permanently recorded in files called “blocks,” which reflect transactions that have been recorded and authenticated by miners. Each newly recorded block of transactions refers back to and “connects” with the immediately prior recorded block of the public ledger, similar to pages of other types of transaction ledgers. Each new block records outstanding Bitcoin transactions, and outstanding transactions are settled and validated through such recording. The Blockchain represents a complete, transparent and unbroken history of all transactions on the Bitcoin Network, in the form of a public ledger that is accessible by all. The Bitcoin Network software source code includes the protocols that govern the creation of bitcoin and the cryptographic system that secures and verifies Bitcoin transactions.

To engage in bitcoin transactions, users generate two mathematically related numbers that are used to authenticate bitcoin transactions: a “public key” (which is used to generate a “public address”) and a “private key.” The private key is frequently retained in a software program for facilitating bitcoin transactions, known as a “bitcoin wallet,” while the public address may be made publicly available. The public address serves as an address to which bitcoin can be transferred and from which bitcoin can be sent by the owner of the private key. The Bitcoin Network utilizes the Blockchain to evidence the existence of bitcoin associated with any “public address” that has been used in a transaction on the Bitcoin Network. A “private key” controls the transfer or “spending” of bitcoin from its associated public key.

The Blockchain constitutes a canonical record of every bitcoin, every bitcoin transaction (including the creation or “mining” of new bitcoin) and every bitcoin address associated with a quantity of bitcoin. The Bitcoin Network and Bitcoin Network software programs can interpret the Blockchain to determine the exact bitcoin balance, if any, of any public bitcoin address listed in the Blockchain as having taken part in a transaction on the Bitcoin Network.

30 Bitcoin Network miners engage in a set of prescribed complex mathematical calculations in order to add a block to the Blockchain and thereby confirm Bitcoin transactions included in that block’s data. In addition to confirming the authenticity of some or all recent transactions and referencing the preceding block, each block also contains an answer to a mathematical problem. Miners generate potential answers to this mathematical problem at a rapid rate, effectively searching for a correct answer via computational trial-and-error. New blocks cannot be submitted to the network without a correct answer. The mathematical problem in each block is extremely difficult to solve, but once a valid solution is found, it is very easy for the rest of the network to confirm that the solution is correct. Once the mathematical problem has been solved, the miner may then transmit a copy of the newly-formed block to peers on the Bitcoin Network, which then update their respective copies of the Blockchain by appending the new block. A new block that is added to the Blockchain serves to take recent-yet-unconfirmed transactions and verify that none are fraudulent, and the miner that first solves such block receives the reward of a fixed number of bitcoin for its effort.

The protocol underlying the Bitcoin Network provides the rules by which all users and miners on the Bitcoin Network must operate. Bitcoin Network software automatically adjusts the difficulty of the mathematical problem so that a new block is mined approximately once every ten minutes, which can impact the number of transactions that can be accommodated on the Bitcoin Network. The protocol also lays out the block reward, the amount of bitcoin that a miner earns upon creating a new block. The initial block reward when the Bitcoin Network was introduced in 2009 was 50 bitcoin per block. That number has and will continue to halve approximately every four years until approximately 2140, when it is estimated that block rewards will go to zero. The most recent halving occurred on July 9, 2016, which reduced the block reward from 25 to 12.5 bitcoin. In addition to the block reward, end users pay fees as an incentive for a miner to confirm their transactions in newly created blocks. When a miner creates a new block, as part of the process the miner adds any unconfirmed transactions to the new block, and for doing so accepts fees 