How UNIT Handles Forked Coins: Treating Forks as Free Value for Investors

In the dynamic world of cryptocurrency, forks are a natural part of blockchain evolution. When a blockchain forks, a new cryptocurrency is created, and holders of the original coin automatically receive an equivalent amount of the new forked coin for free. At UNIT, we have a unique solution for handling these forked coins: if a coin is in the UNIT when it’s forked and the coin meets our threshold standard, we treat it as a free coin, adding it to the UNIT index. This approach increases both the market cap and the price of UNIT, reflecting the added value provided by the fork.

How Forked Coins Work and Why They Matter

A fork happens when a blockchain splits due to changes in its underlying code or governance, creating a new cryptocurrency. For example, Bitcoin Cash (BCH) was forked from Bitcoin, and Ethereum Classic (ETC) was forked from Ethereum. In such cases, holders of the original coin automatically receive the forked coin—effectively a free bonus.

At UNIT, when a forked coin meets our criteria for inclusion, it becomes part of the index, just as it would naturally appear in a holder’s portfolio. This directly increases the UNIT market cap, and since this new value requires no additional investment, the price of UNIT also rises, reflecting the new asset.

Over time, UNIT has integrated several major forks into the index, including:

• Ethereum Classic (ETC) was added in August, 2016
  

• Bitcoin Cash (BCH) in September, 2017
  

• Bitcoin Gold (BTG) in December, 2017
  

• Bitcoin Diamond (BCD) in May, 2018
  

• Bitcoin Cash SV (BSV) in December, 2018
  

These forks were added to the index, bumping up the market cap and price of UNIT at the time of their inclusion.

Why Holding TINU Means You Benefit from Forks Automatically

One of the key benefits of investing in TINU, the UNIT ETF, is that you don’t need to worry about managing these forks or making adjustments to your portfolio. Simply by holding TINU, you automatically gain exposure to both the original coin and any eligible forked coins that meet UNIT’s standards.

Let’s take Ethereum Classic (ETC) as an example. When Ethereum Classic forked from Ethereum in July 2016, it met UNIT’s inclusion criteria and was added to the index in August 2016. Investors holding TINU saw the value of their ETF rise in sync with the new market cap that included Ethereum Classic, automatically benefiting from the fork without any manual intervention.

Similarly, Bitcoin Cash (BCH) was added to UNIT after its fork from Bitcoin in August 2017. As a TINU holder, you automatically gained exposure to Bitcoin Cash, and the UNIT market cap rose to reflect this new value. The price of UNIT increased as well, ensuring that you benefited from the fork without needing to do anything manually.

With UNIT, your investment is always ahead of the curve, reflecting the true value of both original and forked cryptocurrencies—ensuring that you always get the most out of your crypto portfolio, hassle-free.