Methodology Change | Solactive Blockchain Index | Effective Date 01/08/2024

Today, on the 18/07/2024, Solactive announces the following changes to the methodology of the following indices(the ‘Affected Indices’):

Rationale for Methodology Change

Solactive has determined that the reweighting of the indices is only triggered in the event that the INDEX ADMINISTRATOR determines that the aggregate INDEX weight of the Diversified and Pre-Revenue INDEX COMPONENTS is greater than 20% on any REVIEW DAY, the aggregate INDEX weight of the Diversified and Pre-Revenue INDEX COMPONENTS is capped at 18%. Unfortunately, this is a trigger that does not take place often. As a result, the reweighting of the index is often skipped. With the recent volatility in the Blockchain industry, many Pure Play index components have experienced an increase in their index weights. This increase in weight has significantly impacted the diversification of the index which affects end users and licensees of the index who must comply with geographic diversification requirements for their products. To rectify the above issue, the following changes to the index guideline will be implemented.

Changes to the Index Guideline

The following Methodology changes will be implemented in the following points of the Index Guideline (ordered in accordance with the numbering of the affected sections):

From:

2.3.2. REWEIGHTING OF THE INDEX COMPONENTS

If the INDEX ADMINISTRATOR determines that the aggregate INDEX weight of the Diversified and Pre-Revenue INDEX COMPONENTS is greater than 20% on any REVIEW DAY, the aggregate INDEX weight of the Diversified and Pre-Revenue INDEX COMPONENTS is capped at 18%.

Here, the excess weight is redistributed proportionally from Diversified and Pre-Revenue INDEX COMPONENTS exceeding an index weight of 0.3%. If these INDEX COMPONENTS would drop below an index weight of 0.3% in the redistribution, they are floored at 0.3%.

If the aggregate INDEX weight of the Pure Play INDEX COMPONENTS weighted above 4.5% is below 45%, the excess weight is redistributed proportionally to the Pure Play INDEX COMPONENTS that are weighted below 12.0% up to a maximum of 12.0% for each company. Here, the final aggregate weight of the Pure Play INDEX COMPONENTS weighted above 4.5% is capped at 45%. The remaining companies are capped at 4.5%.

If the aggregate weight of the Pure Play Index Components weighted above 4.5% is above 45%, the excess weight is redistributed proportionally to the Pure Play Index Components that are weighted below 4.5% up to a maximum of 4.5% for each company.

Defined terms used in this announcement, but not defined herein, have the meaning assigned to them in the respective index guideline of the Affected Indices. The amended version of the index guideline will be available on the effective date.

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3.1 ORDINARY REBALANCE

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In addition, if the INDEX ADMINISTRATOR determines that the aggregate INDEX weight of Diversified and PreRevenue INDEX COMPONENTS is greater than 20% on any REVIEW DAY, then the index shall be reweighted on the ADJUSTMENT DAY that occurs immediately after such REVIEW DAY according to section 2.3.2 REWEIGHTING OF THE INDEX COMPONENTS.

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To:

2.3.2. REWEIGHTING OF THE INDEX COMPONENTS

On each REVIEW DAY the index is reweighted if at least one of the following two conditions is true:

1. If the Index Administrator determines that the aggregate Index weight of the Diversified and Pre-Revenue Index Components is greater than 20% on any Review Day, the aggregate Index weight of the Diversified and Pre-Revenue Index Components is capped at 18%.

Here, the excess weight is redistributed proportionally from Diversified and Pre-Revenue Index Components exceeding an index weight of 0.3%. If these Index Components would drop below an index weight of 0.3% in the redistribution, they are floored at 0.3%.

If the aggregate INDEX weight of the Pure Play INDEX COMPONENTS weighted above 4.5% is below 45%, the excess weight is redistributed proportionally to the Pure Play INDEX COMPONENTS that are weighted below 12.0% up to a maximum of 12.0% for each company. Here, the final aggregate weight of the Pure Play INDEX COMPONENTS weighted above 4.5% is capped at 45%. The remaining companies are capped at 4.5%.

If the aggregate weight of the Index Components weighted above 4.5% is above 45%, the excess weight is redistributed proportionally to the Index Components that are weighted below 4.5% up to a maximum of 4.5% for each company.

4. If the INDEX ADMINISTRATOR determines that the aggregate weight of the INDEX COMPONENTS weighted above 4.5% is above 45%, the excess weight is redistributed proportionally to the INDEX COMPONENTS that are weighted below 4.5% up to a maximum of 4.5% for each company.

Here, if any INDEX COMPONENT exceeds a weight of 15%, that component’s weight will be capped at 15%. The excess weight that results from implementing this constraint is redistributed proportionally in an iterative manner, such that the above constraint is not breached.

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3.1 ORDINARY REBALANCE

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In addition, if the Index Administrator determines that the aggregate Index weight of Diversified and Pre-Revenue Index Components is greater than 20% or the aggregate weight of the INDEX COMPONENTS weighted above 4.5% is above 45% on any Review Day, then the index shall be reweighted on the Adjustment Day that occurs immediately after such Review Day according to section 2.3.2 Reweighting of the Index Components.

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