What changed in this filing

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Item 1. Financial Statements

2026-05-08 compared with 2025-11-14 · 237 added, 276 removed, 250 unchanged (67% of the section changed)

Financial Statements (Unaudited)

ARK 21SHARES BITCOIN ETF

STATEMENTS OF ASSETS AND LIABILITIES

1 unchanged sentence

Share amounts)

September 30,

Investment in bitcoin, at fair value (cost $ 3,149,352 , and $ 3,479,646 , respectively)

Bitcoin sold receivable

Capital shares receivable

Bitcoin purchased payable

Bitcoin sold receivable

Capital shares payable

Bitcoin purchased payable

Sponsor Fee payable

3 unchanged sentences

Paid-in-capital

Accumulated earnings

Accumulated earnings (loss)

Shares issued and outstanding, no par value, unlimited amount authorized

140,070,000 #

Net asset value per share

# On June 13, 2025, there was a 3-for-1 share split.

shares outstanding and net asset value per share have been adjusted to reflect the 3-for-1 share split on a retroactive basis.

The accompanying notes are an integral part of the financial

The accompanying notes are an integral part of the

financial statements.

ARK 21SHARES BITCOIN ETF

SCHEDULES OF INVESTMENT

1 unchanged sentence

and percentages)

September 30, 2025 (Unaudited)

March 31, 2026 (Unaudited)

% of Net Assets

7 unchanged sentences

Liabilities in excess of other assets

The accompanying

notes are an integral part of the financial statements.

21Shares Bitcoin ETF

The accompanying notes are an integral part of the financial statements.

ARK 21SHARES BITCOIN ETF

STATEMENTS OF OPERATIONS

(Amounts in thousands)

September 30,

Total expenses

Less waiver and reimbursement

Net investment loss

Realized and change in unrealized gain (loss)

Net realized gain on investment in bitcoin sold to pay Sponsor fee

Net realized gain on investment in bitcoin sold for redemptions

Net realized gain (loss) on investment in bitcoin sold to pay Sponsor Fee

Net realized gain (loss) on investment in bitcoin sold for redemptions

Net realized gain on in-kind liabilities paid

Net change in unrealized appreciation (depreciation) on investment in bitcoin

Net realized and change in unrealized gain

Net increase in net assets resulting from operations

Net change in unrealized gain on Sponsor Fee payable

Net realized and change in unrealized loss

Net decrease in net assets resulting from operations

$ ( 716,842 )

$ ( 587,548 )

The accompanying notes are an integral part

of the financial statements.

21Shares Bitcoin ETF

ARK 21SHARES BITCOIN ETF

STATEMENTS OF CHANGES IN NET ASSETS

(Amounts in thousands,

except change in Shares issued and redeemed)

September 30,

(Amounts in thousands, except change in Shares

Net assets, beginning of period

2 unchanged sentences

( 1,542,442 )

( 5,046,202 )

( 1,566,520 )

Net investment loss

Net realized gain on investment in bitcoin sold to pay Sponsor fee

Net realized gain on investment in bitcoin sold for redemptions

Net change in unrealized depreciation on investment in bitcoin

Net realized gain (loss) on investment in bitcoin sold to pay Sponsor Fee

Net realized gain (loss) on investment in bitcoin sold for redemptions

Net realized gain on in-kind liabilities paid

Net change in unrealized appreciation (depreciation) on investment in bitcoin

Net change in unrealized gain on Sponsor Fee payable

Net assets, end of period

1 unchanged sentence

Shares issued

226,875,000 #

Shares redeemed

1 unchanged sentence

( 50,820,000 ) #

( 150,670,000 )

( 75,120,006 )#

Net increase (decrease) in Shares issued and outstanding

( 6,530,000 )

Net increase (decrease) in Shares issued

( 7,545,000 )

# On June 13, 2025, there was a 3-for-1 share split.

shares outstanding and net asset value per share have been adjusted to reflect the 3-for-1 share split on a retroactive basis.

1 Amount rounds to less than $1,000.

See Note 1 to the Unaudited Notes to Financial Statements.

Historical shares outstanding and net asset value per share have been adjusted to reflect the 3-for-1 split on a retroactive basis.

The accompanying notes are an integral part

of the financial statements.

Financial Statements (Unaudited)

The ARK 21Shares Bitcoin ETF

(the “Trust”) is a Delaware statutory trust, formed on June 22, 2021 , pursuant to the Delaware Statutory Trust Act (“DSTA”).

The Trust operates pursuant to an Amended and Restated Trust Agreement (the “Trust Agreement”).

CSC Delaware Trust Company,

a Delaware trust company, is the trustee of the Trust (the “Trustee”).

The Trust is managed and controlled by 21Shares US

LLC (the “Sponsor”).

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 21co Holdings Limited (formerly known as Amun Holdings

Coinbase Custody Trust Company, LLC (“Coinbase”), BitGo New York Trust Company, LLC (“BitGo”), and Anchorage

Digital Bank N.A.

(“Anchorage”, and, together with Coinbase and BitGo, as the context may require, the “Custodian”,

“Custodians” and each a “Custodian”) are the custodians for the Trust and hold all of the Trust’s bitcoin

on the Trust’s behalf.

The transfer agent (the “Transfer Agent”), the administrator for the Trust (the “Administrator”),

and the cash custodian (the “Cash Custodian”), is Bank of New York Mellon.

21Shares Bitcoin ETF

to Financial Statements (Unaudited)

The ARK 21Shares Bitcoin ETF (the “Trust”) is a Delaware

statutory trust, formed on June 22, 2021 , pursuant to the Delaware Statutory Trust Act (“DSTA”).

The Trust operates pursuant

to an Amended and Restated Trust Agreement (the “Trust Agreement”).

CSC Delaware Trust Company, a Delaware trust company,

is the trustee of the Trust (the “Trustee”).

The Trust is managed and controlled by 21Shares US LLC (the “Sponsor”).

The Sponsor is a limited liability company formed in the state of Delaware on June 16, 2021, and is a wholly owned subsidiary of 21co

Holdings Limited.

The ultimate parent company of 21co Holdings Limited is FalconX Holdings Limited (“FalconX”).

Coinbase Custody

Trust Company, LLC (“Coinbase”), BitGo Bank & Trust, N.A.

(“BitGo”), BitGo New York Trust Company, LLC (“BitGo

New York”), and Anchorage Digital Bank N.A.

(“Anchorage”, and, together with Coinbase, BitGo and BitGo New York, as

the context may require, the “Custodians” and each a “Custodian”) are the custodians

for the Trust and hold all of the Trust’s bitcoin on the Trust’s behalf.

The transfer agent (the “Transfer Agent”),

the administrator for the Trust (the “Administrator”), and the cash custodian (the “Cash Custodian”), is Bank

of New York Mellon.

The Trust is an exchange-traded

fund that issues common units of beneficial interest (the “Shares”) representing fractional undivided beneficial interests

fund that issues common shares of beneficial interest (the “Shares”) representing fractional undivided beneficial interests

in its net assets that trade on the Cboe BZX Exchange, Inc.

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objective is to seek to track the performance of bitcoin, as measured by the performance of the CME CF Bitcoin Reference Rate—New

York Variant (the “Index”), adjusted for the Trust’s expenses and other liabilities.

York Variant (the “Pricing Benchmark”), adjusted for the Trust’s expenses and other liabilities.

CF Benchmarks Ltd.

is the administrator

for the Index (the “Index Provider”).

The Index is designed to reflect the performance of bitcoin in U.S.

to achieve its investment objective, the Trust holds bitcoin at its Custodians and values its Shares daily based on the Index.

is the administrator for the Pricing Benchmark (the “Pricing Benchmark Provider”).

The Pricing Benchmark is designed to reflect

the performance of bitcoin in U.S.

In seeking to achieve its investment objective, the Trust holds bitcoin at its Custodians

and values its Shares daily based on the Pricing Benchmark.

ARK Investment Management

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Shares are neither interests in nor obligations of the Sponsor, the Sub-Adviser, or the Trustee.

The Trust is an “emerging

growth company” as that term is used in the Securities Act of 1933, as amended (the “Securities Act”), and, as such,

the Trust may elect to comply with certain reduced public company reporting requirements.

On December 12, 2023, the

Sponsor, in its capacity as Seed Capital Investor, subject to conditions, purchased the initial Seed Creation Baskets 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

Initial Seed Shares were $ 100 .

Delivery of the Seed Shares was made on December 12, 2023.

These Seed Shares were redeemed for cash on

Sponsor, in its capacity as seed capital investor (the “Seed Capital Investor”), subject to conditions, purchased six Shares

at a per-Share price of $ 16.67 .

(the “Initial Seed Shares”).

Total proceeds to the Trust from the sale of the Initial Seed

Shares were $ 100 .

Delivery of the Initial Seed Shares was made on December 12, 2023.

The Initial Seed Shares were redeemed for cash on

or about January 5, 2024.

On January 9, 2024 (the “Seed

Capital Purchase Date”), the Seed Capital Investor purchased Seed Creation Baskets comprising 10,000 Shares (the “Initial

Seed Creation Baskets”) at a per-share price of $ 46.88 .

Total proceeds to the Trust from the sale of the Seed Creation Baskets were

$ 468,806.44 .

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

bitcoin counterparty, which is a designated third party who is not an Authorized Participant (as defined below) but who may be an affiliate

of an Authorized Participant and with whom the Sponsor has entered into an agreement on behalf of the Trust (a “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.

On January 9, 2024 (the “Seed Capital Purchase Date”),

the Seed Capital Investor purchased initial seed creation baskets comprising 30,000 Shares (the “Initial Seed Creation Baskets”)

at a per-share price of $ 15.63 .

Total proceeds to the Trust from the sale of the Initial Seed Creation Baskets were $ 468,806 .

9, 2024, the Trust purchased 10 bitcoins with the proceeds of the Initial Seed Creation Baskets by transacting with a bitcoin counterparty,

which is a designated third party, who may be an Authorized Participant or an affiliate of an Authorized Participant and with whom the

Sponsor has entered into an agreement on behalf of the Trust (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 Investor.

These Initial Seed Creation Baskets were

redeemed for cash on or about January 19, 2024.

Effective June 12, 2024, the

Sponsor, on behalf of the Trust, entered into a Master Purchase and Sale Agreement for Digital Assets (“Agreement for Digital Assets”)

with FalconX Bravo, Inc.

(“FalconX Bravo”), a registered swap dealer and a subsidiary of FalconX.

The Agreement governs spot

purchase and sale transactions in digital assets conducted on a principal-to-principal basis.

Transactions are executed at prevailing

market prices and are subject to customary terms and conditions.

On June 2, 2025, the Trust

announced that the Sponsor approved a three (3)-for-one (1) share split (the “Share Split”) of all of the Trust’s outstanding

Shares In connection with the Share Split, every one Share that was held by the Trust’s beneficial owners (the “Record Holders”)

In connection with the Share Split, every one Share that was held by the Trust’s beneficial owners (the “Record Holders”)

at the close of business on June 12, 2025, automatically split into three Shares after market close on June 13, 2025.

1 unchanged sentence

became effective at market open on June 16, 2025.

Following the Share Split, the Shares continued to trade under the ticker symbol

“ARKB” under the same CUSIP, and the total net asset value (“NAV”) of the Trust did not change as a result of

the Share Split.

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 remained unchanged.

Following the Share Split, the Shares continued to trade under the ticker symbol “ARKB”

under the same CUSIP, and the total net asset value (“NAV”) of the Trust did not change as a result of the Share Split.

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 remained unchanged.

The statements of assets and

liabilities and schedule of investments on September 30, 2025, and the statements of operations and changes in net assets for the three

and nine months ended September 30, 2025 and 2024, have been prepared on behalf of the Trust and are unaudited.

In the opinion of management

of the Sponsor of the Trust, all adjustments (which include normal recurring adjustments) necessary to present fairly the financial position

and results of operations for the three and nine months ended September 30, 2025, and for all interim periods presented have been made.

In addition, interim period results are not necessarily indicative of results for a full-year period.

The fiscal year of the Trust

is December 31st.

liabilities and schedules of investment on March 31, 2026, and the statements of operations, and changes in net assets for the three months

ended March 31, 2026 and 2025, have been prepared on behalf of the Trust and are unaudited.

In the opinion of management of the Sponsor

of the Trust, all adjustments (which include normal recurring adjustments) necessary to present fairly the financial position and results

of operations for the three months ended March 31, 2026, and for all interim periods presented.

In addition, interim period results are

not necessarily indicative of results for a full-year period.

The fiscal year-end of the Trust is December 31 st .

Significant Accounting Policies

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Services - Investment Companies, but is not registered, and is not required to be registered, as an investment company under the Investment

Company Act of 1940, as amended.

The Trust uses fair value as its method of accounting for bitcoin in accordance with its classification

as an investment company for accounting purposes.

Company Act of 1940, as amended (the “1940 Act”).

The Trust uses fair value as its method of accounting for bitcoin in accordance

with its classification as an investment company for accounting purposes.

Accounting Estimates

The preparation of the financial

12 unchanged sentences

The Trust’s policy is to value investments held at fair value.

The Trust identifies and determines

the bitcoin principal market (or in the absence of a principal market, the most advantageous market) for GAAP purposes consistent with

the application of the fair value measurement framework in FASB ASC 820 – Fair Value Measurement.

A principal market is the market

with the greatest volume and activity level for the asset or liability.

The determination of the principal market will be based on the

market with the greatest volume and level of activity that can be accessed.

The Trust obtains relevant volume and level of activity information

and based on initial analysis will select an exchange market as the Trust’s principal market.

The NAV and NAV per Share will be

calculated using the fair value of bitcoin based on the price provided by this exchange market, as of 4:00 p.m.

ET on the measurement

date for GAAP purposes.

The Trust will update its principal market analysis periodically and as needed to the extent that events have

occurred, or activities have changed in a manner that could change the Trust’s determination of the principal market.

The Trust identifies and determines the bitcoin

principal market (or in the absence of a principal market, the most advantageous market) for GAAP purposes consistent with the application

of the fair value measurement framework in FASB ASC 820 – Fair Value Measurement.

A principal market is the market with the greatest

volume and activity level for the asset or liability.

The determination of the principal market will be based on the market with the greatest

volume and level of activity that can be accessed.

The Trust obtains relevant volume and level of activity information and based on initial

analysis will select an exchange market as the Trust’s principal market.

The NAV and NAV per Share will be calculated using the

fair value of bitcoin based on the price provided by this exchange market, as of 4:00 p.m.

ET on the measurement date for GAAP purposes.

The Trust will update its principal market analysis periodically and as needed to the extent that events have occurred, or activities

have changed in a manner that could change the Sponsor’s determination of the Trust’s principal market.

Various inputs are used in

20 unchanged sentences

(Amounts in thousands)

September 30, 2025 (Unaudited)

March 31, 2026 (Unaudited)

Investment in bitcoin

11 unchanged sentences

The Trust records its investments transactions on a trade date basis and changes in fair value are reflected as net change

in unrealized appreciation or depreciation on investments.

Realized gains and losses are calculated using the specific identification

Realized gains and losses are recognized in connection with transactions including settling obligations for the Sponsor’s

fee in bitcoin.

in unrealized appreciation or depreciation on investments and the net change in unrealized appreciation or depreciation on Sponsor Fee

Realized gains and losses are calculated using the specific identification method.

Realized gains and losses are recognized in

connection with transactions including settling obligations for the Sponsor Fee and the in-kind liabilities paid in connection to the

Sponsor Fee in bitcoin.

Calculation of NAV and NAV per Share

1 unchanged sentence

the Exchange is closed for regular trading (a “Business Day”), as soon as practicable after 4:00 p.m.

NAV of the Trust is obtained by subtracting all accrued fees, expenses and other liabilities of the Trust from the fair value of the bitcoin

and other assets held by the Trust using the index price.

The Trustee computes the NAV per Share by dividing the NAV of the Trust by the

number of Shares outstanding on the date the computation is made.

ET, the NAV of the Trust

is obtained by subtracting all accrued fees, expenses and other liabilities of the Trust from the fair value of the bitcoin and other

assets held by the Trust based on the Pricing Benchmark price.

The Administrator computes the NAV per Share by dividing the NAV of the

Trust by the number of Shares outstanding on the date the computation is made.

Federal Income Taxes

11 unchanged sentences

to pay fees or expenses), such a sale is a taxable event to shareholders of the Trust (“Shareholders”).

Upon a Shareholder’s sale of its Shares, the Shareholder

will be treated as having sold the pro rata share of the bitcoin held in the Trust at the time of the sale and may recognize gain or loss

on such sale.

The Sponsor has reviewed the tax positions as of September 30, 2025, and has determined that no provision for income

tax is required in the Trust’s financial statements.

Upon a Shareholder’s

sale of its Shares, the Shareholder will be treated as having sold the pro rata share of the bitcoin held in the Trust at the time of

the sale and may recognize gain or loss on such sale.

The Sponsor has reviewed the tax positions as of March 31, 2026, and has determined

that no provision for income tax is required in the Trust’s financial statements.

Segment Reporting

2 unchanged sentences

as prescribed in the Trust’s prospectus.

The Chief Operating Decision Maker (“CODM”) is the Sponsor.

The CODM monitors

the operating results of the Trust.

The financial information that the CODM leverages to assess the segment’s performance and to

make decisions for the Trust’s single segment is consistent with the financial information that is presented within the Trust’s

financial statements.

Segment assets are reflected on the accompanying Statements of Assets and Liabilities as Total assets and the only

significant segment expense, the Sponsor fee, is included in the accompanying Statements of Operations.

The Chief Operating Decision Maker (“CODM”) is the Chief Executive Officer

of the Sponsor.

The CODM monitors the operating results of the Trust.

The financial information that the CODM leverages to assess the

segment’s performance and to make decisions for the Trust’s single segment is consistent with the financial information that

is presented within the Trust’s financial statements.

Segment assets are reflected on the accompanying Statements of Assets and

Liabilities as Total assets and the only significant segment expense, the Sponsor Fee, is included in the accompanying Statements of Operations.

Fair Value of bitcoin

The following represents the

changes in quantity of bitcoin and the respective fair value on the nine months ended September 30, 2025 (Unaudited) and 2024 (Unaudited):

changes in quantity and the fair value of bitcoin on the three months ended March 31, 2026 (Unaudited) and 2025 (Unaudited):

(Amounts in thousands, except quantity of bitcoin)

Quantity of bitcoin

Beginning balance as of January 1, 2026

Bitcoin purchased

( 50,168.8832 )

( 5,053,954 )

Net realized gain on investment in bitcoin sold to pay Sponsor fee

Net realized gain on investment in bitcoin sold for redemptions

Change in unrealized appreciation/(depreciation) on investment in bitcoin

Ending balance as of September 30, 2025

Bitcoin purchased for contributions

Bitcoin sold for redemptions

Bitcoin sold to pay expenses

Net realized (loss) on investment in bitcoin sold to pay Sponsor Fee

Net realized (loss) on investment in bitcoin sold for redemptions

Change in unrealized depreciation on investment in bitcoin

Ending balance as of March 31, 2026

(Amounts in thousands, except Quantity of bitcoin)

Beginning balance as of January 1, 2025

Bitcoin purchased

( 25,039.4041 )

( 1,569,089 )

Net realized gain on investment in bitcoin sold to pay Sponsor fee

Net realized gain on investment in bitcoin sold for redemptions

Change in unrealized appreciation on investment in bitcoin

Ending balance as of September 30, 2024

The following represents the

changes in quantity of bitcoin and the respective fair value on the three months ended September 30, 2025 (Unaudited) and 2024 (Unaudited):

(Amounts in thousands, except quantity of bitcoin)

Beginning balance as of July 1, 2025

Bitcoin purchased

( 16,019.3563 )

( 1,831,319 )

Net realized gain on investment in bitcoin sold to pay Sponsor fee

Net realized gain on investment in bitcoin sold for redemptions

Change in unrealized appreciation/(depreciation) on investment in bitcoin

Ending balance as of September 30, 2025

(Amounts in thousands, except quantity of bitcoin)

Beginning balance as of July 1, 2024

Bitcoin purchased

purchased for contributions

sold for redemptions

( 16,904.2374

sold to pay expenses

Net realized gain on investment in bitcoin sold to pay Sponsor fee

Net realized gain on investment in bitcoin sold for redemptions

Change in unrealized appreciation/(depreciation) on investment in bitcoin

Ending balance as of September 30, 2024

Change in unrealized depreciation on investment in bitcoin

Ending balance as of March 31, 2025

Trust Expenses

The Trust pays the unitary

Sponsor fee of 0.21 % of the Trust’s bitcoin holdings.

The Sponsor fee is paid by the Trust to the Sponsor as compensation for services

performed under the Trust Agreement.

The Sponsor agreed to waive the entire Sponsor fee for (i) a nine-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 in February 2024, at which time the waiver period ended.

Except for during

periods during which the Sponsor fee has been waived, the Sponsor fee accrues daily and is payable in bitcoin weekly in arrears.

The Administrator

calculates the Sponsor fee on a daily basis by applying a 0.21 % annualized rate to the Trust’s total bitcoin holdings, and the amount

of bitcoin payable in respect of each daily accrual is determined by reference to the Index.

The Trust incurred 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.

liability at September 30, 2025 and December 31, 2024 was $ 123,500 and $ 193,176 , respectively.

The Sponsor has agreed to

pay all operating expenses (except for litigation expenses and other extraordinary expenses) out of the Sponsor fee.

Operating expenses

assumed by the Sponsor include (i) fees to the Sub-Adviser;

(ii) the fee payable to marketing agents for services provided to the Trust

(the “Marketing Fee”), (iii) fees to the Administrator, if any, (iv) fees to the Custodians, (v) fees to the Transfer

Agent, (vi) fees to the Trustee, (vii) the fees and expenses related to any future listing, trading or quotation of the Shares on any

listing exchange or quotation system (including legal, marketing and audit fees and expenses), (viii) ordinary course legal fees and expenses

but not litigation-related expenses, (ix) audit fees, (x) regulatory fees, including, if applicable, any fees relating to the registration

of the Shares under the Securities Act or Exchange Act, (xi) printing and mailing costs;

Sponsor Fee of 0.21 % of the Trust’s NAV (the “Sponsor Fee”).

The Sponsor Fee is paid by the Trust to the Sponsor as

compensation for services performed under the Trust Agreement.

The Sponsor Fee accrues daily

and is payable in bitcoin weekly in arrears.

The Administrator calculates the Sponsor Fee on a daily basis by applying a 0.21 % annualized

rate to the Trust’s NAV, and the amount of bitcoin payable in respect of each daily accrual is determined by reference to the Pricing

The Trust incurred Sponsor Fee for the quarters ended March 31, 2026, and 2025 of $ 1,444,599 and $ 2,367,167 , respectively.

The accrued liability as of March 31, 2026, and December 31, 2025, was $ 94,190 and $ 71,364 , respectively.

As partial consideration for

receipt of the Sponsor Fee, the Sponsor shall assume and pay all fees and other expenses incurred by the Trust in the ordinary course

of its affairs, excluding taxes, but including (i) fees to the Sub-Adviser;

(ii) the fee payable to marketing agents for services provided

to the Trust (the “Marketing Fee”), (iii) fees to the Administrator, if any, (iv) fees to the Custodians, (v) fees to the

Transfer Agent, (vi) fees to the Trustee, (vii) the fees and expenses related to any future listing, trading or quotation of the Shares

on any listing exchange or quotation system (including legal, marketing and audit fees and expenses), (viii) ordinary course legal fees

and expenses but not litigation-related expenses, (ix) audit fees, (x) regulatory fees, including, if applicable, any fees relating to

the registration of the Shares under the Securities Act of 1933, as amended (the “Securities Act”) or the Securities Exchange

Act of 1934, as amended (the “Exchange Act”), (xi) printing and mailing costs;

(xii) costs of maintaining the Sponsor’s

website and (xiii) applicable license fees (each, a “Sponsor-paid Expense,” and together, the “Sponsor-paid Expenses”),

provided that any expense that qualifies as an Additional Trust Expense (as defined below) will be deemed to be an Additional Trust Expense

provided that any expense that qualifies as an Additional Trust Expense will be deemed to be an Additional Trust Expense

and not a Sponsor-paid Expense.

There is currently no predetermined cap on the aggregate amount of Sponsor-paid expenses.

Should the Trust

implement a predetermined cap on aggregate Sponsor-paid expenses, the Trust will notify the owners of the beneficial interests of Shares

in a prospectus supplement or in its periodic Exchange Act reports, as applicable.

The Sponsor will not, however,

1 unchanged sentence

charges, expenses and costs of any extraordinary services performed by the Sponsor (or any other service provider) on behalf of the Trust

to protect the Trust or the interests of Shareholders, any indemnification of the Custodians, Administrator or other agents, service

providers or counter-parties of the Trust, the fees and expenses related to the listing, and extraordinary legal fees and expenses, including

any legal fees and expenses incurred in connection with litigation, regulatory enforcement or investigation matters (collectively, “Additional

to protect the Trust or the interests of Shareholders, any indemnification of the Custodians, Administrator or other agents, service providers

or counter-parties of the Trust, the fees and expenses related to the listing, and extraordinary legal fees and expenses, including any

legal fees and expenses incurred in connection with litigation, regulatory enforcement or investigation matters (collectively, “Additional

Trust Expenses”).

1 unchanged sentence

In the Sponsor’s sole discretion, all or any portion of a Sponsor-paid Expense may be re-designated as an Additional Trust

Expense, if among other reasons, the Sponsor determines that a Sponsor-paid Expense is an extraordinary, non-recurring expenses of the

The Trust shall not be responsible for paying any fees or expenses associated with the transfer of bitcoin as needed to pay the

Sponsor Fee or Additional Trust Expenses.

To the extent that the Sponsor

6 unchanged sentences

The Trust creates and redeems

Shares at the NAV of date of the creation and redemption on a continuous basis but only in Creation Baskets consisting of 5,000 Shares

or multiples thereof.

Only “Authorized Participants”, which are registered broker-dealers who have entered into written agreements with

the Sponsor and the Administrator, can place orders.

The Trust engages in bitcoin transactions for converting cash into bitcoin (in association

with purchase orders) and bitcoin into cash (in association with redemption orders).

The Trust conducts its bitcoin purchase and sale

transactions by, in its sole discretion, choosing to trade directly with third parties (each, a “bitcoin Trading Counterparty”),

who are not registered broker-dealers pursuant to written agreements between such bitcoin Trading Counterparties and the Trust, or choosing

to trade through the Prime Broker acting in an agency capacity with third parties through its Coinbase Prime service pursuant to the Prime

Broker Agreement.

A bitcoin Trading Counterparty may be an affiliate of an Authorized Participant.

The Authorized Participants may deliver cash or in-kind orders to create Shares and receive cash or in-kind orders when redeeming Shares.

The Trust creates Shares by

receiving bitcoin from a bitcoin Trading Counterparty that is not the Authorized Participant and the Trust—not the Authorized Participant—is

responsible for selecting the bitcoin Trading Counterparty to deliver the bitcoin.

Further, the bitcoin Trading Counterparty will not be acting as an agent of the Authorized

Participant with respect to the delivery of the bitcoin to the Trust or acting at the direction of the Authorized Participant with respect

to the delivery of the bitcoin to the Trust.

The Trust redeems Shares by delivering bitcoin to a bitcoin Trading Counterparty that is not the Authorized

Participant and the Trust—not the Authorized Participant—is responsible for selecting the bitcoin Trading Counterparty to receive the bitcoin.

Further, the bitcoin Trading Counterparty will not be acting as an agent of the Authorized Participant with respect to the receipt of the bitcoin from

the Trust or acting at the direction of the Authorized Participant with respect to the receipt of the bitcoin from the Trust.

The bitcoin Trading Counterparty

is unaffiliated with the Trust and the Sponsor.

September 30,

Activity in Capital Transactions:

Contributions for shares issued

226,875,000 #

Distributions for shares redeemed

( 48,135,000 )

( 39,300,000 ) #

( 150,670,000 )

Shares on a continuous basis but only in one or more Creation Baskets (other than in the case of the Initial Seed Shares) consisting of

5,000 Shares or multiples thereof at the NAV on the date of the creation or redemption.

Only Authorized Participants, which are registered

broker-dealers who have entered into written agreements with the Sponsor and the Administrator, can place orders.

Authorized Participants may

purchase Shares in cash by depositing cash in the Trust’s account with the Cash Custodian.

This will cause the Sponsor, on behalf

of the Trust, to automatically instruct a designated third party, who may be an Authorized Participant or an affiliate of an Authorized

Participant, and with whom the Sponsor has entered into an agreement on behalf of the Trust (each such third party, a “Bitcoin Counterparty”),

to (i) purchase the amount of bitcoin equivalent in value to the cash deposit amount associated with the order and (ii) deposit the resulting

bitcoin amount in the Trust’s accounts with the Custodians, resulting in the Transfer Agent crediting the applicable amount of Shares

to an Authorized Participant.

Authorized Participants may also purchase Shares in-kind.

To purchase Shares in-kind, an Authorized Participant

delivers, or arranges for the delivery by such Authorized Participant’s designee of, bitcoin to the Trust’s accounts with

a Custodian in exchange for Shares.

When such an Authorized Participant

redeems its Shares in cash, the Sponsor, on behalf of the Trust will direct a Custodian to transfer bitcoin to a Bitcoin Counterparty,

who will sell the bitcoin to be executed, in the Sponsor’s reasonable efforts, at the Pricing Benchmark price used to calculate

the Trust’s NAV, taking into account any spread, commissions, or other trading costs and deposit the cash proceeds of such sale

in the Trust’s account with the Cash Custodian for settlement with the Authorized Participant.

Any slippage incurred (including,

but not limited to, any trading fees, spreads, or commissions), on a cash equivalent basis, will be the responsibility of the Authorized

Participant and not of the Trust or Sponsor.

Authorized Participants may also redeem Shares in-kind.

When such an Authorized Participant

redeems Shares in-kind, the Trust, through a Custodian, will deliver bitcoin to the Authorized Participant, or its designee in exchange

Activity in Capital Shares:

Shares issued

Shares redeemed

( 27,525,000 )

Net Change in Capital Transactions

( 50,820,000 ) #

Net Change in Capital Shares

( 7,545,000 )

2 unchanged sentences

(Amounts in thousands)

September 30,

Shares issued

Shares redeemed

( 1,828,519 )

( 5,046,202 )

( 1,566,520 )

Net Change in Capital Transactions Issued and Redeemed

$ ( 259,094 )

$ ( 187,133 )

T hree months

Activity in Capital Transactions:

Contributions for shares issued

Distributions for shares redeemed

Net Change in Capital Transactions

Bitcoin purchased payable

3 unchanged sentences

(Amounts in thousands)

September 30,

Bitcoin purchased payable

4 unchanged sentences

(Amounts in thousands)

September 30,

Bitcoin sold receivable

4 unchanged sentences

companies and external service providers.

As of September 30, 2025,

the Sponsor owned zero Shares of the Trust.

As of December 31, 2025, and

March 31, 2026, the Sponsor owned zero Shares of the Trust.

The Sponsor arranged for the

1 unchanged sentence

the listing of Shares on the Exchange.

For the three months

ended March 31, 2026, the Trust engaged in digital asset trading activity with FalconX Bravo, which became an affiliated entity in November 2025,

consisting of purchases in the amount of $ 7,610,366 and sales of $ 10,978,762 , respectively.

In connection with transactions executed

for the quarter ended March 31, 2026, the Trust incurred total commissions of $ 1,098 .

Financial Highlights

Per Share Performance (for a Share

outstanding throughout each period presented)

three months ended

September 30,

three months ended

September 30,

nine months ended

September 30,

nine months ended

September 30,

Per Share Performance (for a Share outstanding throughout the periods presented)

Net asset value per Share, beginning of period

Net investment income (loss) on investment in bitcoin (1)

Net realized and change in unrealized gain(loss) on investment in bitcoin (2)

Net realized and change in unrealized gain (loss) on investment in

Net change in net assets from operations

Net asset value per Share, end of period

Total return, at net asset value (3)(5)

Total return, at net

asset value (3)

Ratio to average net assets (4)

2 unchanged sentences

# On June 13, 2025, the Share Split occurred.

Historical shares

outstanding and NAV per share have been adjusted to reflect the Share Split on a retroactive basis.

(1) Calculated using average Shares outstanding.

(2) The amount shown for a share outstanding throughout the period

may not agree with the change in the aggregate gains and losses for such period because of the timing of sales and repurchases of the

Trust’s shares in relation to fluctuating market values for the Trust.

(3) Total return is calculated based on the change in value during

the period and is not annualized.

An individual shareholder’s total return and ratio may vary from the above total returns and

ratios based on the timing of contributions to and withdrawals from the Trust.

Historical shares outstanding and NAV per share have been adjusted to reflect the Share Split on a retroactive basis.

(1) Calculated using average Shares outstanding method.

(2) The amount shown for a Share outstanding throughout the period may

not agree with the change in the aggregate gains and losses for such period because of the timing of sales and repurchases of the Trust’s

Shares in relation to fluctuating market value for the Trust.

(3) Total return is calculated based on the change in the value during the period and is not annualized.

An individual shareholder’s total return and ratio may vary from the above total returns and ratios based on the timing of contributions to and withdrawals from the Trust.

(4) Annualized.

(5) Not Annualized.

Commitments and Contingent Liabilities

38 unchanged sentences

Subsequent Events

The Trust has evaluated all subsequent events through

the issuance of the financial statements and has noted no events requiring adjustment or additional disclosure in the financial statements.

Trust has evaluated all subsequent events and transactions for potential recognition or disclosure through the issuance of the

financial statements and has noted no events requiring adjustment or additional disclosure in the financial statements.

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 1. Financial Statements