What changed in this filing

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Item 2. Management’s Discussion and Analysis

2025-11-14 compared with 2025-08-13 · 62 added, 62 removed, 172 unchanged (42% of the section changed)

40 unchanged sentences

interests in its net assets that trade on 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 the ticker symbol “ARKB”.

On December 12, 2023, the

Sponsor, in its capacity as Seed Capital Investor, subject to conditions, purchased the initial Seed Shares comprising 2 Shares at a per-Share

Sponsor, in its capacity as Seed Capital Investor, subject to conditions, purchased the initial Seed Shares comprising two Shares at a per-Share

price of $50.00, as described in “Seed Capital Investor.” Total proceeds to the Trust from the sale of these Seed Shares were

6 unchanged sentences

On January 9, 2024, the Trust purchased 10 bitcoins with the proceeds of the Seed Creation Baskets by transacting with a

Bitcoin Counterparty to acquire bitcoin on behalf of the Trust in exchange for cash provided by the Sponsor in its capacity as Seed Capital

bitcoin Trading Counterparty to acquire bitcoin on behalf of the Trust in exchange for cash provided by the Sponsor in its capacity as Seed Capital

These Seed Creation Baskets were redeemed for cash on or about January 19, 2024.

5 unchanged sentences

The Share Split became effective at market open on June 16, 2025.

Following the Share Split, the Shares will continue

Following the Share Split, the Shares continued

to trade under the ticker symbol “ARKB” under the same CUSIP, and the total NAV of the Trust did not change as a result of

the Share Split.

In addition, each Record Holder will continue to hold the same percentage of the Trust’s outstanding Shares as

held immediately prior to the Share Split, and the Share Split will not modify the rights or preferences of the Shares.

In addition, each Record Holder continued to hold the same percentage of the Trust’s outstanding Shares as

held immediately prior to the Share Split, and the Share Split did not modify the rights or preferences of the Shares.

The investment

objective, strategy, and underlying holdings of the Trust will remain unchanged.

objective, strategy, and underlying holdings of the Trust remained unchanged.

The Trust’s investment

2 unchanged sentences

CF Benchmarks Ltd.

is the administrator for the Index Provider.

is the Index Provider.

The Index is designed to reflect the performance

20 unchanged sentences

The Trust incurred

Sponsor fees for the six-month periods ended June 30, 2025 and 2024 of $4,811,499 and $2,183,009 net of Sponsor fees waived of $93,111,

Sponsor fees for the nine-month periods ended September 30, 2025 and 2024 of $7,583,835 and $3,784,619 net of Sponsor fees waived of $93,111,

respectively.

51 unchanged sentences

except price of bitcoin and Shares outstanding)

As of June 30, 2025, the Trust

had a net closing balance of 46,722.8267 bitcoins with a value of $5,022,119, based on the Index price of $107,487.49 on June 30, 2025

As of September 30, 2025,

the Trust had a net closing balance of 44,528.1082 bitcoins with a value of $5,079,980, based on the Index price of $114,084.80 on September

30, 2025 (CME CF Bitcoin Reference Rate – New York Variant, non-GAAP methodology).

As of June 30, 2025, the total market value of the Trust’s

bitcoin was $5,034,561, based on the price of a bitcoin in the principal market of $107,753.77 on June 30, 2025.

For the Three Months ended on June 30, 2025

As of September 30, 2025, the total market value

of the Trust’s bitcoin was $5,093,058, based on the price of a bitcoin in the principal market of $114,378.49 on September 30, 2025.

For the Three Months Ended September 30, 2025

Net realized and change in

unrealized loss on investment in bitcoin for the three months ended June 30, 2025, was $1,200,104 which includes a net change in unrealized

appreciation on investment in bitcoin of $859,932.

unrealized gain on investment in bitcoin for the three months ended September 30, 2025 was $320,440 which includes a change on unrealized depreciation on investment in bitcoin of $(136,721).

Net realized and change in unrealized gain on investment in bitcoin for the period

was driven by bitcoin price appreciation throughout the period from $82,444.71 per bitcoin as of March 31, 2025 to $107,753.77 per bitcoin

as of June 30, 2025.

Net increase in net assets resulting from operations was $1,197,660 for the three months ended June 30, 2025, primarily

driven by the aforementioned net realized and change in unrealized gain on investment in bitcoin.

For the Three Months ended on June 30, 2024

The Trust’s NAV decreased

from $3,160,033 on March 31, 2024 to $2,849,575 on June 30, 2024.

The decrease in the Trust’s NAV 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 134,010,000 on March 31 2024 to 139,500,000 on June 30, 2024.

The Trust’s net decrease

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

This number is largely the result of a change

in unrealized depreciation on investment in bitcoin of $(543,311), which was partially offset by a realized gain of $327 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 $135,325.

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

For the Six Months Ended June 30, 2025

The Trust’s NAV increased

from $4,352,288 on December 31, 2024 to $5,034,361 on June 30, 2025.

The increase in the Trust’s NAV resulted primarily from an

increase in the price of bitcoin of 15.46% (from $93,320.22 per bitcoin on December 31, 2024 to $107,753.77 per bitcoin on June 30, 2025)

and a net increase of 93,880,000 in the number of shares outstanding from December 31, 2024 to June 30, 2025.

was driven by bitcoin price appreciation throughout the period from $107,753.77 per bitcoin as of June 30, 2025 to $114,379.49 per bitcoin

as of September 30, 2025.

Net increase in net assets resulting from operations was $317,667 for the three months ended September 30, 2025,

primarily driven by the aforementioned net realized and change in unrealized gain on investment in bitcoin.

For the Three Months ended on September 30,

The Trust’s NAV increased from $2,849,575 on June 30, 2024 to $3,206,095 on September 30, 2024.

The increase in the Trust’s NAV

resulted primarily from an increase in bitcoin price of 2.48% (from $61,929.29 per bitcoin as of June 30, 2024 to $63,464.76 per bitcoin

as of September 30, 2024) and an increase of number of shares outstanding from 46,050,000 on June 30, 2024 to 50,585,000 on September

The Trust’s net increase in net assets resulting

from operations for the period ended September 30, 2024 was $46,097.

This number is largely the result of a realized gain of $83 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 $53,132 partially offset by a change in unrealized depreciation on investment in bitcoin of $(5,609).

expenses for the quarter were $1,509, relating to the Sponsor’s fees.

For the Nine Months Ended September 30, 2025

The Trust’s NAV

increased from $4,352,288 on December 31, 2024 to $5,092,934 on September 30, 2025.

The increase in the Trust’s NAV resulted

primarily from an increase in the price of bitcoin of 22.47% (from $93,390.22 per bitcoin on December 31, 2024 to $114,378.49 per

bitcoin on September 30, 2025) and was offset by a net decrease of 6,030,000 in the number of shares outstanding from December 31,

2024 to September 30, 2025.

The Trust’s net increase

in net assets resulting from operations for the six months ended June 30, 2025 was $610,112.

This was the result of a change in unrealized

depreciation on investment in bitcoin of $(47,364), a net realized gain of $1,129 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 $661,158.

expenses for the six-month period were $(4,811) relating to the Sponsor’s fees.

For the Six Months Ended June 30, 2024

in net assets resulting from operations for the nine months ended September 30, 2025 was $927,779.

This was the result of a change in

unrealized depreciation on investment in bitcoin of $(184,085), a net realized gain of $1,795 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 $1,117,653.

The Trust’s expenses for the nine-month period were $7,584 relating to the Sponsor’s fees.

For the Nine Months Ended September 30, 2024

The Trust’s NAV increased

from $100 on December 31, 2023 to $2,849,575 on June 30, 2024.

The increase in the Trust’s NAV 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 of 138,149,994 in the number of shares outstanding from December 31, 2023 to June 30, 2024.

from $- 1 on December 31, 2023 to $3,206,095 on September 30, 2024.

The increase in the Trust’s NAV resulted

primarily from an increase in the price of bitcoin of 36% (from $46,666.89 per bitcoin on January 11, 2024 to $63,464.76 per bitcoin on

September 30, 2024) and a net increase in the number of shares outstanding of 50,584,998 from December 31, 2023 to September 30, 2024.

The Trust’s net increase

in net assets resulting from operations for the six months ended June 30, 2024 was $435,396.

This was the result of a change in unrealized

depreciation on investment in bitcoin of $302,012, a net realized gain of $327 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 $135,239.

expenses for the six-month period were $2,183, relating to the Sponsor’s fees net of Sponsor’s fee waived.

in net assets resulting from operations for the nine months ended September 30, 2024 was $481,493.

This was the result of a change in

unrealized depreciation on investment in bitcoin of $296,403, a net realized gain of $410 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 $188,372.

expenses for the nine-month period were $3,692, relating to the Sponsor’s fees.

1 Amount rounds to less than $1,000.

Liquidity and Capital Resources

7 unchanged sentences

The aggregate Sponsor fee paid to the Sponsor for the period ended

June 30, 2025 was $4,969.

In exchange for the Sponsor’s fee, the Sponsor has agreed to assume the ordinary fees and expenses incurred

by the Trust, including but not limited to the following:

fees charged by the Sub-Adviser, Administrator, the Custodians, Transfer Agent

and the Trustee, the Marketing Fee, the Exchange’s listing fees, typical maintenance and transaction fees of the DTC, SEC registration

fees, printing and mailing costs, website fees, tax reporting fees, audit fees, license fees and expenses, up to $100,000 per annum in

ordinary legal fees and expenses.

The Sponsor bears expenses in connection with the Trust’s organization and initial offering costs.

September 30, 2025 was $7,818.

In exchange for the Sponsor’s fee, the Sponsor has agreed to assume the ordinary fees and expenses

incurred by the Trust, including but not limited to the following:

fees charged by the Sub-Adviser, Administrator, the Custodians, Transfer

Agent and the Trustee, the Marketing Fee, the Exchange’s listing fees, typical maintenance and transaction fees of the DTC, SEC

registration fees, printing and mailing costs, website fees, tax reporting fees, audit fees, license fees and expenses, up to $100,000

per annum in ordinary legal fees and expenses.

The Sponsor bears expenses in connection with the Trust’s organization and initial

offering costs.

The Sponsor is not required

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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