Arrow Launches the Valtoro ETF (Ticker: ORO), Offering a Tactical Approach to Bitcoin Exposure

The Valtoro ETF applies a rules-based approach using Bitcoin gold and cash to pursue risk-managed digital-asset exposure

Arrow Valtoro ETF (CBOE:ORO)

NEW YORK CITY, NY, UNITED STATES, October 17, 2025 /EINPresswire.com/ -- Arrow CEO Joseph Barrato on Tactical Bitcoin™ Turning Volatility into a Portfolio Advantage

Arrow Funds (“Arrow”) today announced the launch of the Arrow Valtoro ETF (Ticker: ORO) on the Cboe BZX Exchange, extending the firm’s long-standing tradition of innovation in liquid alternatives and quantitative investing.

The ETF, which follows the methodology of Arrow Insight’s proprietary AI Tactical Bitcoin Index (AITBCS), applies a rules-based framework that dynamically reallocates among Bitcoin, gold, and cash in seeking to participate in Bitcoin’s potential upside while managing its historically high volatility. The Fund does not invest directly in Bitcoin or gold.

The launch coincides with a new interview with Arrow CEO Joseph Barrato published by RIA Channel, where he discusses how Tactical Bitcoin™ is designed to transform volatility from a source of risk into a potential portfolio management tool.

From Curiosity to Comfort: Advisors Want a Plan
“Advisors tell us their clients want Bitcoin exposure, but they need a way to do it responsibly,” Barrato said. “The curiosity is there, but the comfort isn’t. Most Bitcoin ETFs are long-only, which means investors may experience deep drawdowns. Advisors aren’t rejecting Bitcoin, they’re rejecting volatility without a plan.”
That plan, Barrato explained, is reflected in Tactical Bitcoin Index (AITBCS), a live, daily-published benchmark that reallocates among Bitcoin, gold, and cash using three independent quantitative models. “It’s adaptive exposure, not prediction, but disciplined response,” he said.

The 2022 Crypto Stress Test
During the 2022 market turmoil, Bitcoin fell more than 70 percent, while the AITBCS benchmark declined about 32 percent over the same period. “It effectively cut risk in half by allocating heavily to gold and cash,” Barrato said. “Avoiding the worst days is what helps long-term compounding.”
Since the AITBCS launch in November 2021, the Index has produced returns similar to Bitcoin’s with less than half the volatility and drawdown, illustrating how adaptive risk controls can improve consistency of results.
 
Structure and Income Efficiency
Now live as an ETF, ORO seeks to translate that benchmark into a RIC-compliant, institutionally structured fund using regulated Bitcoin and gold futures. Because the strategy gains exposure through futures, approximately 25 percent of assets are typically allocated to directional exposure. In comparison, the remaining 75 percent is invested in short-term U.S. Treasuries and cash equivalents, which currently provide interest income.
“That collateral yield can become a real contributor to total return,” Barrato noted. “You get two potential return sources, alpha generation and income.”
This structure allows investors to obtain regulated digital-asset exposure through a traditional ETF format while maintaining a defensive, income-generating core.

A Tactical Enhancement to Diversified Portfolios
Barrato views ORO as a tactical enhancement sleeve, generally 3 to 5 percent of the equity allocation in a diversified portfolio. “Even a small allocation can improve efficiency when it behaves differently from stocks and bonds,” he said. “It’s intended to function more like an alternative strategy than a crypto bet, low correlation to traditional assets, with potential upside when Bitcoin trends.”

Arrow’s internal analysis found that adding Tactical Bitcoin exposure to a 60/40 portfolio historically shifted results toward the “north-west quadrant” of the risk-return spectrum, resulting in higher returns and lower volatility. These results are based on two white papers that were published in 2024.

Volatility as an Asset Class
“For Arrow, volatility isn’t something to fear; it’s something to structure,” Barrato said. “That’s been our approach since managed-futures strategies, and we’re now applying it to digital assets.”
This philosophy underpins the Arrow founder’s two-decade record of product innovation. He helped pioneer the first Smart Beta ETF (RSP – S&P 500 Equal Weight), the first MLP ETF, and the first High-Volatility Managed Futures mutual fund. “Tactical Bitcoin is an extension of that lineage,” Barrato added. “Outliers drive innovation. With ORO, we’re making those outliers investable through structure and discipline.”

Benchmark Background
Since its live inception on Bloomberg in November 2021, the AI Tactical Bitcoin Index (AITBCS) has reported a cumulative total return of approximately +19.8 percent through mid-2025, compared with Bitcoin (+18.7 percent), gold (+18.8 percent), and the S&P 500 (+8.4 percent). The Index experienced about half of Bitcoin’s maximum drawdown over that period.

Launch Marks a Milestone for Institutional Digital Access
The Arrow Valtoro ETF began trading on October 17, 2025, under the ticker ORO, on the Cboe BZX Exchange. The ETF represents Arrow’s effort to merge traditional portfolio-construction discipline with regulated access to digital-asset markets.

“The biggest mistake investors make is waiting for perfect clarity,” Barrato concluded. “Bitcoin isn’t going away; it’s being institutionalized. The question isn’t whether clients will own it; it’s how they will. ORO provides a way to pursue that exposure within a risk-managed, transparent structure.”

About Arrow Investment Advisors
Arrow Investment Advisors, LLC, headquartered in Laurel, Maryland, is an SEC-registered investment advisor and sponsor of Arrow Funds. Founded in 2006, Arrow specializes in liquid alternatives, tactical strategies, and quantitative ETF design. Through its affiliates, including Archer Distributors, LLC, Arrow provides research, product infrastructure, and distribution for institutional and advisor-focused investment solutions.
For more information on the Arrow Valtoro ETF (ORO), please visit ValtoroETF.com or call 1-877-277-6933.

Media Contact:
press@arrowfunds.com | (877) 277-6933

The Arrow Valtoro ETF may not be suitable for all investors. Investments involve risk. Principal loss is possible. As with all index funds, the performance of the Fund and its Index may differ from each other for a variety of reasons. For example, the Fund incurs operating expenses and portfolio transaction costs not incurred by the Index. In addition, the Fund may not be fully invested in the securities of the Index at all times or may hold securities not included in the Index. The Fund has the same risks as the underlying securities traded on the exchange through the day. To the extent the Fund invests more heavily in particular sectors of the economy, the Fund’s performance may be more sensitive to developments that significantly affect those sectors. Diversification does not assure a profit nor protect against loss in a declining market.

The Fund’s investments in bitcoin and bitcoin futures subject the Fund to certain risks as bitcoin and bitcoin futures are a relatively new asset class, and the market for bitcoin is subject to rapid changes and uncertainty. Bitcoin and bitcoin futures are subject to unique and substantial risks, including significant price volatility and lack of liquidity. The value of an investment in the Fund could decline significantly and without warning, including to zero. The Fund’s investments in gold may also subject the Fund to certain risks as the price of gold may be volatile and gold futures are subject to inherent leverage that may magnify Fund losses.

The AI Tactical Bitcoin (AITBCS) is an index. It is not possible to invest directly in an index. Tactical Bitcoin^® is registered trademark of Arrow Insights; and this trademark and index have been licensed for certain purposes. The Fund is not sponsored, endorsed, sold or promoted by Arrow Insights, their respective affiliates and none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any nor do they have any liability for any errors, omissions, or interruptions of the AI Tactical Bitcoin Index.
Before investing, please read the prospectus and shareholder reports to learn about the investment strategy and potential risks. Investing involves risks, including the potential for loss of principal. An investor should consider the fund’s investment objective, charges, expenses, and risks carefully before investing. The funds may not be suitable for all investors. This and other information about the fund is contained in the fund’s prospectus, which can be obtained by calling 1-877-277-6933.

The Arrow Funds are distributed by Archer Distributors, LLC, and managed by Arrow Investment Advisors, LLC. Archer Distributors, LLC and Arrow Investment Advisors, LLC are affiliated entities.

0066-AD-10162025

Joseph Barrato
Arrow Funds
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