What changed in this filing

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Item 2. Management’s Discussion and Analysis

2024-08-09 compared with 2024-05-13 · 46 added, 28 removed, 146 unchanged (34% of the section changed)

35 unchanged sentences

The Sponsor is a limited liability company formed in the state of Delaware on June 16, 2021, and is a wholly

owned subsidiary of Jura Pentium Inc., whose ultimate parent company is Amun Holdings Limited.

The Sponsor is not subject to regulation

by the Commodity Futures Trading Commission (“CFTC”) as a commodity pool operator with respect to the Trust, or a commodity

trading advisor with respect to the Trust.

The Trust is an exchange-traded fund (“ETF”) that issues units of beneficial interest

(the “Shares”) representing fractional undivided beneficial interests in its net assets that trade on the Cboe BZX Exchange,

owned subsidiary of Jura Pentium Inc., whose ultimate parent company is 21co Holdings Limited (formerly known as Amun Holdings Limited).

The Sponsor is not subject to regulation by the Commodity Futures Trading Commission (“CFTC”) as a commodity pool operator

with respect to the Trust, or a commodity trading advisor with respect to the Trust.

The Trust is an exchange-traded fund (“ETF”)

that issues units of beneficial interest (the “Shares”) representing fractional undivided beneficial interests in its net

assets that trade on the Cboe BZX Exchange, Inc.

(the “Exchange”).

The Shares are listed for trading on the Exchange under a ticker symbol “ARKB”.

The Shares are listed for trading on the Exchange under

a ticker symbol “ARKB”.

On December 12, 2023, the

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performed under the Trust Agreement.

The Sponsor is waiving the entire Sponsor Fee for (i) a six-month period which commenced on January

11, 2024 (the day the Trust’s Shares were initially listed on the Exchange), or (ii) the first $1 billion of Trust assets, whichever

The Sponsor agreed to waive the entire Sponsor Fee for (i) a six-month period which commenced on January 11, 2024 (the day the Trust's

Shares were initially listed on the Exchange), or (ii) the first $1 billion of Trust assets, whichever came first.

The Trust assets exceeded

$1 billion prior to the end of the six month period, at which time the waiver period ended.

The Trust is an “emerging

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that bitcoin is sold in its principal market to market participants (or in the absence of a principal market, the most advantageous market).

The Trust utilizes an exchange traded price from the Trust's principal market for bitcoin as of 4:00 p.m.

ET on the Trust's financial

statement measurement date.

Results of Operations

As of March 31, 2024*, the

Trust had a net closing balance of 44,667.3165 bitcoins with a value of $3,160,731,678, based on the Index Price of $70,761.62 on March

31, 2024 (CME CF Bitcoin Reference Rate – New York Variant, non-GAAP methodology).

As of March 31, 2024, the total fair value of

the Trust’s bitcoin was $3,160,731,678, based on the price of a bitcoin in the principal market (Coinbase) of $70,761.62 on March 31,

For the three months ended March 31, 2024*

Net realized and

unrealized gain on investment in bitcoin for the three months ended March 31, 2024, was $845,237,003 which includes a realized loss

of $(85,284) on the sale of bitcoins associated with the disposition of the initial seed creation shares, a loss for the removal of

bitcoin mark-to-market from the daily Sponsor’s Fee accrual, and a net change in unrealized appreciation on investment in

bitcoin of $845,322,287.

Net realized and unrealized gain on investment in bitcoin for the period was driven by bitcoin price

appreciation from $46,666.89 per Bitcoin as of January 11, 2024, to $70,761.62 per bitcoin as of March 31, 2024.

increase in net assets resulting from operations was $844,609,344 for the three months ended March 31, 2024, which consisted of the

net realized and unrealized gain on investment in bitcoin, less the Sponsor’s Fee of $627,659.

* No comparative period has been provided as this is the

first fiscal year of the Trust’s operations.

For the Three Months ending on June 30, 2024*

The Trust’s net asset

value decreased from $3,160,033,182 on March 31, 2024 to $2,849,574,261 on June 30, 2024.

The decrease in the Trust’s net asset

value resulted primarily from a decrease in bitcoin price of 12.48% (from $70,761.62 per bitcoin as of March 31, 2024 to $61,929.29 per

bitcoin as of June 30, 2024) and an increase of number of shares outstanding from 44,670,000 on March 31 2024 to 46,500,000 on June 30,

The Trust’s net decrease

in net assets resulting from operations for the quarter ended June 30, 2024 was $(409,214,298).

This number is largely the result of a

change in unrealized depreciation on investment in bitcoin of $(543,310,275), which was partially offset by a realized gain of $327,388

on the sale of bitcoin for purposes of distributing to the Sponsor as the Sponsor’s fee and, net realized gain on investment in

bitcoin sold for redemptions of $135,324,029.

The Trust expenses for the quarter were $1,555,440, relating to the Sponsor's fees.

For the Six Months ending June 30, 2024*

The Trust’s net asset

value increased from $100 on December 31, 2023 to $2,849,574,261 on June 30, 2024.

The increase in the Trust’s net asset value resulted

primarily from an increase in the price of bitcoin of 32.70% (from $46,666.89 per bitcoin on January 11, 2024 to $61,929.29 per bitcoin

on June 30, 2024) and a net increase in the number of shares outstanding of 46,049,998 from December 31, 2023 to June 30, 2024.

The Trust’s net increase

in net assets resulting from operations for the six months ended June 30, 2024 was $435,395,046.

This was the result of a change in unrealized

depreciation on investment in bitcoin of $302,012,012, a net realized gain of $327,388 on the sale of bitcoins for purposes of distributing

to the Sponsor as the Sponsor’s fee, and net realized gain on investment in bitcoin sold for redemptions of $135,238,745.

The Trust expenses for the six month period were $2,183,099, relating to the Sponsor’s fees.

* No prior year comparative period has been provided as

this is the first year of the Trust’s operations.

Liquidity and Capital Resources

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of the Trust.

The Sponsor is waiving the entire Sponsor Fee for (i) a six-month period which commenced on January 11, 2024 (the day the

Trust’s Shares were initially listed on the Exchange), or (ii) the first $1 billion of Trust assets, whichever comes first.

The Sponsor agreed to waive the entire Sponsor Fee for (i) a six-month period which commenced on January 11, 2024 (the day the Trust's

Shares were initially listed on the Exchange), or (ii) the first $1 billion of Trust assets, whichever came first.

The Trust assets exceeded

$1 billion prior to the end of the six month period, at which time the waiver period ended.

for the Sponsor’s fee, the Sponsor has agreed to assume the ordinary fees and expenses incurred by the Trust, including but not

20 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 2. Management’s Discussion and Analysis