Filed
pursuant to Rule 424(b)(3)
File No. 333-268247
UNITED
STATES COPPER INDEX FUND
Supplement dated August
22, 2023
to
Prospectus dated April 28, 2023
This supplement contains
information which amends, supplements or modifies certain information contained in the prospectus of United States Copper Index Fund
(“CPER”) dated April 28, 2023 (the “Prospectus”). Please read it and keep it with your Prospectus for future
reference.
*
* * * *
The last paragraph
of the section titled “CPER’s Investment Objective and Strategy”,
on page 1 of the Prospectus, is hereby deleted and replaced with the following:
CPER
seeks to achieve its investment objective by investing primarily in Benchmark Component Copper Futures Contracts. CPER may also, to a
lesser extent, invest in other Eligible Copper Futures Contracts beyond the Benchmark Component Copper Futures Contracts or other exchange-traded
futures contracts that are economically identical or substantially similar to the Benchmark Component Copper Futures Contracts, as well
as other investments based on copper, such as cash-settled options on Benchmark Component Copper Futures Contracts, forward contracts
for copper, cleared swap contracts, non-cleared “over-the-counter” or “OTC” transactions that are based on the
price of copper and other Benchmark Component Copper Futures Contracts and indices based on the foregoing (collectively, “Other
Copper-Related Investments”). The following factors, among others, may be considered when determining CPER’s investments
in Eligible Copper Futures Contracts or in Other Copper-Related Investments: regulatory requirements, risk mitigation measures taken
by CPER, CPER’s FCMs, counterparties or other market participants, liquidity and market conditions. Other factors
that may impact CPER’s investments in other Eligible Copper Futures Contracts, other exchange-traded futures contracts, or Other
Copper-Related Investments include allowing CPER to obtain greater liquidity or to execute transactions with more favorable pricing.
In addition, CPER may need to hold significant portions of its portfolio in cash beyond what it has historically held for reasons including
(but not limited to) the need to address the changes in market conditions, regulatory requirements or risk mitigation measures or the
need to satisfy potential margin requirements. For convenience and unless otherwise specified, Benchmark Component Copper Futures Contracts,
other Eligible Copper Futures Contracts and Other Copper-Related Investments collectively are referred to as “Copper Interests”
in this prospectus.
The following is added
to the section titled “RISK FACTORS INVOLVED WITH AN INVESTMENT IN
CPER – Correlation Risk – Accountability levels, position limits, and daily price fluctuation limits set by the exchanges
have the potential to cause tracking error, which could cause the price of shares to substantially vary from the price of the Benchmark
Component Copper Futures Contract.”
CPER
has not limited the size of its offering and is committed to utilizing substantially all of its proceeds to purchase Benchmark Component
Copper Futures Contracts and Other Copper-Related Investments. If CPER encounters accountability levels, position limits, or price fluctuation
limits for Benchmark Component Copper Future Contracts or other Eligible Copper Futures Contracts, it may purchase copper futures on
other exchanges that trade listed copper futures or enter into swaps or other transactions to meet its investment objective. In addition,
if CPER exceeds accountability levels on the COMEX, and is required by the exchange to reduce its holdings, such reduction could potentially
cause a tracking error between the price of CPER’s shares and the price of the Benchmark Component Copper Futures Contract.
The fourth paragraph
of the section titled “What are the Trading Policies of CPER? –
Investment Objective” on page 33 of the Prospectus is hereby deleted and replaced with the following:
CPER
seeks to achieve its investment objective by investing primarily in Benchmark Component Copper Futures Contracts. CPER may also, to a
lesser extent, invest in other Eligible Copper Futures Contracts beyond the Benchmark Component Copper Futures Contracts or other exchange-traded
futures contracts that are economically identical or substantially similar to the Benchmark Component Copper Futures Contracts, as well
as other investments based on copper, such as cash-settled options on Benchmark Component Copper Futures Contracts, forward contracts
for copper, cleared swap contracts, non-cleared “over-the-counter” or “OTC” transactions that are based on the
price of copper and other Benchmark Component Copper Futures Contracts and indices based on the foregoing (collectively, “Other
Copper-Related Investments”). The following factors, among others, may be considered when determining CPER’s investments
in Eligible Copper Futures Contracts or in Other Copper-Related Investments: regulatory requirements, risk mitigation measures taken
by CPER, CPER’s FCMs, counterparties or other market participants, liquidity and market conditions. Other factors
that may impact CPER’s investments in other Eligible Copper Futures Contracts, other exchange-traded futures contracts, or Other
Copper-Related Investments include allowing CPER to obtain greater liquidity or to execute transactions with more favorable pricing.
In addition, CPER may need to hold significant portions of its portfolio in cash beyond what it has historically held for reasons including
(but not limited to) the need to address the changes in market conditions, regulatory requirements or risk mitigation measures or the
need to satisfy potential margin requirements. For convenience and unless otherwise specified, Benchmark Component Copper Futures Contracts,
other Eligible Copper Futures Contracts and Other Copper-Related Investments collectively are referred to as “Copper Interests”
in this prospectus.
The
specific Eligible Copper Futures Contracts purchased depends on various factors, including a judgment by SummerHaven as to the appropriate
diversification of CPER’s investments in futures contracts with respect to the month of expiration, and the prevailing price volatility
of particular contracts. In addition to Eligible Copper Futures Contracts, CPER may invest in other exchange-traded futures contracts
or invest in Other Copper-Related Investments. If CPER is required or may be required by law or regulation, or by one of its regulators,
including a futures exchange, to reduce its position in the Benchmark Component Copper Futures Contract to the applicable position limit
or to a specified accountability level or if liquidity or market conditions dictate it would be more appropriate to invest in Other Copper-Related
Investments, a substantial portion of CPER’s assets could be invested in Other Copper-Related Investments that are intended to
replicate the return on the Benchmark Component Copper Futures Contract. As CPER’s assets reach higher levels, it is more likely
to exceed position limits, accountability levels or other regulatory limits and, as a result, it is more likely that it will invest in
accordance with such priority in Other Copper-Related Investments at such higher levels. See “Risk Factors Involved with an Investment
in CPER” for a discussion of the potential impact of regulation on CPER’s ability to invest in OTC transactions and cleared
swaps.
SummerHaven
may not be able to fully invest CPER’s assets in the Benchmark Component Copper Futures Contract having an aggregate notional amount
exactly equal to CPER’s NAV. For example, as standardized contracts, each Benchmark Component Copper Futures Contract is for a
specified amount of copper, and CPER’s NAV and the proceeds from the sale of a Creation Basket are unlikely to be an exact multiple
of the amounts of that contract. As a result, in such circumstances, CPER may be better able to achieve the exact amount of exposure
to changes in prices of the Benchmark Component Copper Futures Contracts through the use of Other Copper-Related Investments, such as
OTC contracts that have better correlation with changes in prices of the Benchmark Component Copper Futures Contracts.
The following is added
to page 45 of the Prospectus, immediately before the subheading “CPER’s
Fees and Expenses”:
The Trust has
entered into an ISDA 2002 Master Agreement (the “Macquarie ISDA”) with Macquarie Bank Limited, pursuant to which
Macquarie Bank Limited has agreed to serve as an over-the-counter (“OTC”) swaps counterparty for the Trust and to enter
into trades under the Agreement on behalf of CPER as a series of the Trust.
Macquarie
Bank Limited’s principal address is Level 6, 50 Martin Place, Sydney, Nsw 200, Australia. Macquarie Bank Limited is registered
with the CFTC as a swap dealer. As of the date hereof, Macquarie Bank Limited has no material litigation to disclose as that term is
defined under the CEA and regulations promulgated thereunder.
Macquarie
Bank Limited is not affiliated with the Trust, CPER or USCF. Therefore, none of USCF, the Trust nor CPER believes that there will be
any conflicts of interest with Macquarie Bank Limited or its trading principals arising from Macquarie Bank Limited acting as an OTC
swaps counterparty to the Trust on behalf of CPER.
The
Macquarie ISDA, together with additional required trading documentation and other agreements, including, among other documents, an
account control agreement between the parties and The Bank of New York Mellon that was fully executed on August 18, 2023, provide CPER with the ability to invest in OTC swaps in furtherance of its investment objective. In the future, CPER may
enter into OTC swap transactions with Macquarie under the Macquarie ISDA. CPER’s OTC swap transactions outstanding under the
Macquarie ISDA, if any, along with CPER’s other holdings, will be published on CPER’s webpage,
www.uscfinvestments.com.
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