What changed in this filing

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Item 1. Financial Statements

2026-08-06 compared with 2026-05-08 · 209 added, 358 removed, 129 unchanged (81% of the section changed)

5 unchanged sentences

Investment in bitcoin, at fair value (cost $ 2,737,877 , and $ 3,479,646 , respectively) $ 1,889,314 $ 3,305,394

Capital shares receivable

Bitcoin sold receivable – 76,534

Total assets 1,889,314 3,381,928

Capital shares payable – 76,534

Bitcoin purchased payable

Sponsor Fee payable 74 71

1 unchanged sentence

Commitments and contingent liabilities (Note 8) – –

Net assets consists of

Net assets $ 1,889,240 $ 3,305,323

Net assets consist of

Paid-in-capital $ 1,211,472 $ 1,635,978

Accumulated earnings (loss) 677,768 1,669,345

$ 1,889,240 $ 3,305,323

Shares issued and outstanding, no par value, unlimited amount authorized 97,015,000 113,755,000

Net asset value per Share $ 19.47 $ 29.06

The accompanying notes are an integral part of the

financial statements.

The accompanying notes are an integral

part of the financial statements.

ARK 21SHARES BITCOIN ETF

2 unchanged sentences

and percentages)

March 31, 2026 (Unaudited)

June 30, 2026 (Unaudited)

% of Net Assets

2 unchanged sentences

Liabilities in excess of other assets ( 74 ) ( 0.00 )%

Net assets $ 1,889,240 100.00 %

December 31, 2025

3 unchanged sentences

Liabilities in excess of other assets ( 71 ) ( 0.00 )%

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

Net assets $ 3,305,323 100.00 %

The accompanying notes are an integral part

of the financial statements.

ARK 21SHARES BITCOIN ETF

1 unchanged sentence

(Amounts in thousands)

Sponsor Fee $ 1,312 $ 2,444 $ 2,757 $ 4,811

Total expenses 1,312 2,444 2,757 4,811

5 unchanged sentences

Net change in unrealized appreciation (depreciation) on investment in bitcoin ( 87,975 ) 859,932 ( 674,311 ) ( 47,364 )

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 )

Net change in unrealized gain (loss) on Sponsor Fee payable ( 3 ) – 5 –

Net realized and change in unrealized gain (loss) ( 273,423 ) 1,200,104 ( 988,820 ) 614,923

Net increase (decrease) in net assets resulting from operations $ ( 274,735 ) $ 1,197,660 $ ( 991,577 ) $ 610,112

The accompanying notes are an integral part

6 unchanged sentences

Distributions for Shares redeemed ( 1,133,046 ) ( 1,675,241 ) ( 1,838,427 ) ( 3,217,683 )

( 1,542,442 )

Net investment loss ( 1,312 ) ( 2,444 ) ( 2,757 ) ( 4,811 )

3 unchanged sentences

Net change in unrealized appreciation (depreciation) on investment in bitcoin ( 87,975 ) 859,932 ( 674,311 ) ( 47,364 )

Net change in unrealized gain on Sponsor Fee payable

Net change in unrealized gain (loss) on Sponsor Fee payable ( 3 ) – 5 –

Net assets, end of period $ 1,889,240 $ 5,034,361 $ 1,889,240 $ 5,034,361

2 unchanged sentences

Shares redeemed ( 46,975,000 ) ( 51,715,000 ) ( 74,500,000 ) ( 102,535,000 )

( 27,525,000 )

( 50,820,000 ) #

Net increase (decrease) in Shares issued ( 9,195,000 ) ( 2,245,000 ) ( 16,740,000 ) 500,000

( 7,545,000 )

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

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.

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”).

ARK 21Shares Bitcoin ETF

Notes to Financial Statements (Unaudited)

Amounts presented in whole numbers unless otherwise stated

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 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 shares of beneficial interest (the “Shares”) representing fractional undivided beneficial interests

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

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 shares 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 were listed for trading on the Exchange

on January 11, 2024, under the ticker symbol “ARKB”.

The Trust’s investment

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

The Shares were listed for trading on the Exchange on January 11, 2024, under the ticker symbol “ARKB”.

The Trust’s investment 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 “Pricing Benchmark”), adjusted for the Trust’s expenses and other liabilities.

CF Benchmarks Ltd.

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

LLC (the “Sub-Adviser”) is the sub-adviser of the Trust and provides assistance in the marketing of the Shares.

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

On December 12, 2023, the

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 .

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.

On June 30, 2026, the Sponsor provided notice to the Pricing Benchmark Provider of the termination, effective August 31, 2026, of the licensing agreement between the Sponsor and the Pricing Benchmark Provider relating to the use of the Pricing Benchmark.

The Sponsor intends to enter into a licensing agreement with FTSE International Limited (“FTSE”) on or about August 24, 2026, whereby FTSE will provide each of the Sponsor, the Trust, and their affiliates a non-exclusive, non-transferable, non-sub-licensable, worldwide license to access, view and use FTSE index data to develop, create, calculate, settle, maintain or support and market the Trust.

ARK Investment Management LLC (the “Sub-Adviser”) is the sub-adviser of the Trust and provides assistance in the marketing of the Shares.

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

On December 12, 2023, the 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 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.

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 initial seed creation baskets comprising 30,000 Shares (the “Seed Creation Baskets”) at a per-Share price of $ 15.63 .

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

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 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 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 (the “FalconX Bravo Agreement”) 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

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.

The Share Split

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.

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

The Share Split 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.

The statements of assets and liabilities and schedules of investment on June 30, 2026, and the statements of operations, and changes in net assets for the three months and six months ended June 30, 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 six months ended June 30, 2026, and for all interim periods presented, have been included.

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 .

1 unchanged sentence

Basis of Accounting

The financial statements have

been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP” or “GAAP”).

The Trust qualifies as an

investment company solely for accounting purposes and not for any other purpose and follows the accounting and reporting guidance under

the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 946, Financial

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 “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.

The financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP” or “GAAP”).

The Trust qualifies as an investment company solely for accounting purposes and not for any other purpose and follows the accounting and reporting guidance under the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 946, Financial 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 “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.

As an investment company for accounting purposes, the Trust is exempt from the requirement to present a statement of cash flows pursuant to ASC Topic 230, Statement of Cash Flows.

Accordingly, a statement of cash flows has not been presented.

Accounting Estimates

The preparation of the financial

statements in conformity with US GAAP requires the Trust to make estimates and assumptions that affect the reported amounts of assets

and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.

The preparation of the financial statements in conformity with US GAAP requires the Trust to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.

Actual results may differ materially from such estimates as additional information becomes available or actual amounts may become determinable.

Should actual results differ from those previously recognized, the recorded estimates will be revised accordingly with the impact reflected

in the operating results of the Trust in the reporting period in which they become known.

Cash includes non-interest

bearing, non-restricted cash maintained with one financial institution that does not exceed U.S.

Should actual results differ from those previously recognized, the recorded estimates will be revised accordingly with the impact reflected in the operating results of the Trust in the reporting period in which they become known.

Cash includes non-interest bearing, non-restricted cash maintained with one financial institution that does not exceed U.S.

federally insured limits.

Investment Valuation

US GAAP defines fair value

as the price the Trust would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants

at the measurement date.

US GAAP defines fair value as the price the Trust would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date.

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.

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

determining the fair value of assets and liabilities.

Inputs may be based on independent market data (“observable inputs”),

or they may be internally developed (“unobservable inputs”).

These inputs are categorized into a disclosure hierarchy consisting

of three broad levels for financial reporting purposes.

The level of a value determined for an asset or liability within the fair value

hierarchy is based on the lowest level of any input that is significant to the fair value measurement in its entirety.

The three levels

of the fair value hierarchy are as follows:

Unadjusted quoted prices in

active markets for identical assets or liabilities;

Inputs other than quoted prices

included within Level 1 that are observable for the asset or liability either directly or indirectly, including quoted prices for similar

assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not considered

to be active, inputs other than quoted prices that are observable for the asset or liability, and inputs that are derived principally

from or corroborated by observable market data by correlation or other means;

Unobservable inputs, including

the Trust’s assumptions used in determining the fair value of investments, where there is little or no market activity for the asset

or liability at the measurement date.

Fair Value Measurement Using

(Amounts in thousands)

March 31, 2026 (Unaudited)

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 determining the fair value of assets and liabilities.

Inputs may be based on independent market data (“observable inputs”) or they may be internally developed (“unobservable inputs”).

These inputs are categorized into a disclosure hierarchy consisting of three broad levels for financial reporting purposes.

The level of a value determined for an asset or liability within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement in its entirety.

The three levels of the fair value hierarchy are as follows:

Unadjusted quoted prices in active markets for identical assets or liabilities;

Inputs other than quoted prices included within Level 1 that are observable for the asset or liability either directly or indirectly, including quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not considered to be active, inputs other than quoted prices that are observable for the asset or liability, and inputs that are derived principally from or corroborated by observable market data by correlation or other means;

Unobservable inputs, including the Trust’s assumptions used in determining the fair value of investments, where there is little or no market activity for the asset or liability at the measurement date.

(Amounts in thousands) Fair Value Level 1 Level 2 Level 3

June 30, 2026 (Unaudited)

Investment in bitcoin $ 1,889,314 $ 1,889,314 $ – $ –

Fair Value Measurement Using

(Amounts in thousands)

Amount at Fair Value Measurement Using

(Amounts in thousands) Fair Value Level 1 Level 2 Level 3

December 31, 2025

Investment in bitcoin $ 3,305,394 $ 3,305,394 $ – $ –

The cost basis of the investment

in bitcoin recorded by the Trust for financial reporting purposes is the fair value of bitcoin at the time of purchase.

The cost basis

recorded by the Trust may differ from proceeds collected by the Authorized Participant from the sale of the corresponding Shares to investors.

The cost basis of the investment in bitcoin recorded by the Trust for financial reporting purposes is the fair value of bitcoin at the time of purchase.

The cost basis recorded by the Trust may differ from proceeds collected by the Authorized Participant from the sale of the corresponding Shares to investors.

Investment Transactions

The Trust considers investment

transactions to be the receipt of bitcoin for Share creations and the delivery of bitcoin for Share redemptions or for payment of expenses

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

The Trust considers investment transactions to be the receipt of bitcoin for Share creations and the delivery of bitcoin for Share redemptions or for payment of expenses in bitcoin.

The Trust records its investment transactions on a trade date basis and changes in fair value are reflected as net change in unrealized appreciation or depreciation on investments and the net change in unrealized appreciation or depreciation on Sponsor Fee payable.

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.

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

On each day other than when

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

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.

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

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

The Sponsor and the Trustee

will treat the Trust as a “grantor trust” for U.S.

The Sponsor and the Trustee will treat the Trust as a “grantor trust” for U.S.

federal income tax purposes.

Although not free from doubt due to the lack

of directly governing authority, if the Trust operates as expected, the Trust should be classified as a “grantor trust” for

Although not free from doubt due to the lack of directly governing authority, if the Trust operates as expected, the Trust should be classified as a “grantor trust” for U.S.

federal income tax purposes and the Trust itself should not be subject to U.S.

federal income tax.

Each beneficial owner of Shares

will be treated as directly owning its pro rata Share of the Trust’s assets and a pro rata portion of the Trust’s income,

gain, losses and deductions will “pass through” to each beneficial owner of Shares.

If the Trust sells bitcoin (for example,

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 March 31, 2026, and has determined

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

Each beneficial owner of Shares will be treated as directly owning its pro rata Share of the Trust’s assets and a pro rata portion of the Trust’s income, gain, losses and deductions will “pass through” to each beneficial owner of Shares.

If the Trust sells bitcoin (for example, 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 June 30, 2026, and has determined that no provision for income tax is required in the Trust’s financial statements.

Segment Reporting

The Trust operates in one

The segment derives its revenues from Trust investments made in accordance with the defined investment strategy of the Trust,

as prescribed in the Trust’s prospectus.

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

of the Sponsor.

The Trust operates in one segment.

The segment derives its revenues from Trust investments made in accordance with the defined investment strategy of the Trust, as prescribed in the Trust’s prospectus.

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.

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 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)

The following represents the changes in quantity and the fair value of bitcoin during the six months ended June 30, 2026 (Unaudited) and 2025 (Unaudited):

(Amounts in thousands, except quantity of bitcoin) Quantity of

bitcoin Fair Value

Beginning balance as of January 1, 2026 37,769.3458 $ 3,305,394

4 unchanged sentences

Net realized loss on investment in bitcoin sold for redemptions – ( 314,085 )

Change in unrealized depreciation on investment in bitcoin

Ending balance as of March 31, 2026

(Amounts in thousands, except Quantity of bitcoin)

Net change in unrealized depreciation on investment in bitcoin – ( 674,311 )

Ending balance as of June 30, 2026 32,178.2280 $ 1,889,314

(Amounts in thousands, except quantity of bitcoin) Quantity of

bitcoin Fair Value

Beginning balance as of January 1, 2025 46,607.1028 $ 4,352,648

purchased for contributions

sold for redemptions

( 16,904.2374

sold to pay expenses

Bitcoin purchased for contributions 34,265.2508 3,289,625

Bitcoin sold for redemptions ( 34,097.5269 ) ( 3,217,535 )

Bitcoin sold to pay expenses ( 52.0000 ) ( 5,051 )

Net realized gain on investment in bitcoin sold to pay Sponsor Fee – 1,129

Net realized gain on investment in bitcoin sold for redemptions – 661,158

Change in unrealized depreciation on investment in bitcoin

Ending balance as of March 31, 2025

Net change in unrealized depreciation on investment in bitcoin – ( 47,364 )

Ending balance as of June 30, 2025 46,722.8267 $ 5,034,610

The following represents the changes in quantity and the fair value of bitcoin during the three months ended June 30, 2026 (Unaudited) and 2025 (Unaudited):

(Amounts in thousands, except quantity of bitcoin) Quantity of

bitcoin Fair Value

Beginning balance as of April 1, 2026 35,246.5837 $ 2,388,764

Bitcoin purchased for contributions 12,534.4152 908,351

Bitcoin sold for redemptions ( 15,584.3819 ) ( 1,133,046 )

Bitcoin sold to pay expenses ( 18.3890 ) ( 1,307 )

Net realized loss on investment in bitcoin sold to pay Sponsor Fee – ( 287 )

Net realized loss on investment in bitcoin sold for redemptions – ( 185,186 )

Net change in unrealized depreciation on investment in bitcoin – ( 87,975 )

Ending balance as of June 30, 2026 32,178.2280 $ 1,889,314

(Amounts in thousands, except quantity of bitcoin) Quantity of

bitcoin Fair Value

Beginning balance as of April 1, 2025 47,501.0671 $ 3,916,212

Bitcoin purchased for contributions 16,447.0743 1,596,465

Bitcoin sold for redemptions ( 17,193.3147 ) ( 1,675,052 )

Bitcoin sold to pay expenses ( 32.0000 ) ( 3,119 )

Net realized gain on investment in bitcoin sold to pay Sponsor Fee – 593

Net realized gain on investment in bitcoin sold for redemptions – 339,579

Net change in unrealized appreciation on investment in bitcoin – 859,932

Ending balance as of June 30, 2025 46,722.8267 $ 5,034,610

Trust Expenses

The Trust pays the unitary

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 will be deemed to be an Additional Trust Expense

and not a Sponsor-paid Expense.

The Trust pays the unitary 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 an 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 Benchmark.

The Trust incurred Sponsor Fees for the six months ended June 30, 2026 and 2025 of $ 2,756,701 and $ 4,811,499 , respectively.

The accrued liability at June 30, 2026 and December 31, 2025 was $ 73,431 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 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,

assume certain extraordinary, non-recurring expenses that are not Sponsor-paid Expenses, including, but not limited to, taxes and governmental

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

Trust Expenses”).

Of the Sponsor-paid Expenses, ordinary course legal fees and expenses shall be subject to a cap of $ 100,000 per

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

does not voluntarily assume expenses, they will be the responsibility of the Trust.

The Sponsor also pays the costs of the Trust’s

organization and offering.

The Trust is not obligated to repay any such costs related to the Trust’s organization and offering paid

by the Sponsor.

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, assume certain extraordinary, non-recurring expenses that are not Sponsor-paid Expenses, including, but not limited to, taxes and governmental 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 Trust Expenses”).

Of the Sponsor-paid Expenses, ordinary course legal fees and expenses shall be subject to a cap of $ 100,000 per annum.

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 expense of the Trust.

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 does not voluntarily assume expenses, they will be the responsibility of the Trust.

The Sponsor also pays the costs of the Trust’s organization and offering.

The Trust is not obligated to repay any such costs related to the Trust’s organization and offering paid by the Sponsor.

Creation and Redemption of Shares

The Trust creates and redeems

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.

The Trust creates and redeems 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.

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

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 for Shares.

2026 Three Months

2025 Six Months

2026 Six Months

(Unaudited) (Unaudited) (Unaudited) (Unaudited)

Activity in Capital Shares:

1 unchanged sentence

Shares redeemed ( 46,975,000 ) ( 51,715,000 ) ( 74,500,000 ) ( 102,535,000 )

( 27,525,000 )

( 50,820,000 ) #

Net Change in Capital Shares ( 9,195,000 ) ( 2,245,000 ) ( 16,740,000 ) 500,000

( 7,545,000 )

# 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.

(Amounts in thousands)

T hree months

(Amounts in thousands) Three Months

2026 Three Months

2025 Six Months

2026 Six Months

(Unaudited) (Unaudited) (Unaudited) (Unaudited)

Activity in Capital Transactions:

2 unchanged sentences

Net Change in Capital Transactions $ ( 224,695 ) $ ( 78,757 ) $ ( 424,506 ) $ 71,961

Bitcoin purchased payable

represents the quantity of bitcoin purchased for the creation of Shares where the bitcoin has not yet settled.

Generally, bitcoin is transferred

within two Business Days of the trade date.

(Amounts in thousands)

Bitcoin purchased payable represents the quantity of bitcoin purchased for the creation of Shares where the bitcoin has not yet settled.

Generally, bitcoin is transferred within two Business Days of the trade date.

(Amounts in thousands) June 30,

2026 December 31,

Bitcoin purchased payable $ – $ –

Bitcoin sold receivable represents

the quantity of bitcoin sold for the redemption of Shares where the bitcoin has not yet been settled.

Generally, bitcoin is transferred

within two Business Days of the trade date.

(Amounts in thousands)

Bitcoin sold receivable represents the quantity of bitcoin sold for the redemption of Shares where the bitcoin has not yet been settled.

Generally, bitcoin is transferred within two Business Days of the trade date.

(Amounts in thousands) June 30,

2026 December 31,

Bitcoin sold receivable $ – $ 76,534

Related Parties

The Sponsor is a related party

to the Trust.

The Trust’s operations are supported by its Sponsor, who is in turn supported by its parent company and affiliated

companies and external service providers.

As of December 31, 2025, and

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

The Sponsor arranged for the

creation of the Trust and is responsible for the ongoing registration of the Shares for their public offering in the United States and

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 .

The Sponsor is a related party to the Trust.

The Trust’s operations are supported by its Sponsor, who is in turn supported by its parent company and affiliated companies and external service providers.

As of June 30, 2026 and December 31, 2025, the Sponsor owned no Shares of the Trust.

The Sponsor arranged for the creation of the Trust and is responsible for the ongoing registration of the Shares for their public offering in the United States and the listing of Shares on the Exchange.

For the six months ended June 30, 2026, the Trust engaged in digital asset trading activity with FalconX Bravo, Inc.

(“FalconX Bravo”), a registered swap dealer and a subsidiary of FalconX, which became an affiliated entity in November 2025, consisting of purchases in the amount of $ 33,282,498 and sales of $ 10,978,762 , respectively.

For the three months ended June 30, 2026, the Trust engaged in digital asset trading activity with FalconX Bravo, consisting of purchases in the amount of $ 25,672,132 and sales of $ 0 , respectively.

Financial Highlights

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

2026 Three Months

2025 Six Months

2026 Six Months

(Unaudited) (Unaudited) (Unaudited) (Unaudited)

Net asset value per Share, beginning of period $ 22.49 $ 27.42 # $ 29.06 $ 31.07 #

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

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

Net investment income (loss) (1) ( 0.01 ) ( 0.02 ) ( 0.03 ) ( 0.03 )

Net realized and change in unrealized gain(loss) (2) ( 3.01 ) 8.41 ( 9.56 ) 4.77

Net change in net assets from operations ( 3.02 ) 8.39 ( 9.59 ) 4.74

Net asset value per Share, end of period $ 19.47 $ 35.81 $ 19.47 $ 35.81

Total return, at net

asset value (3)

Total return, at net asset value (3) ( 13.43 )% 30.60 % ( 33.00 )% 15.26 %

Ratio to average net assets (4)

1 unchanged sentence

Gross expenses 0.21 % 0.21 % 0.21 % 0.21 %

# 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.

Net expenses 0.21 % 0.21 % 0.21 % 0.21 %

(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.

(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.

1 unchanged sentence

(4) Annualized.

# 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.

Commitments and Contingent Liabilities

In the normal course of business,

the Trust may enter into contracts that contain a variety of general indemnification clauses.

The Trust’s maximum exposure under

these arrangements is unknown as this would involve future claims that may be made against the Trust which have not yet occurred and cannot

be predicted with any certainty.

In the normal course of business, the Trust may enter into contracts that contain a variety of general indemnification clauses.

The Trust’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Trust which have not yet occurred and cannot be predicted with any certainty.

However, the Sponsor believes the risk of loss under these arrangements to be remote.

Concentration Risk

Unlike other funds that may

invest in diversified assets, the Trust’s investment strategy is concentrated in a single asset within a single asset class.

concentration maximizes the degree of the Trust’s exposure to a variety of market risks associated with bitcoin and digital assets.

By concentrating its investment strategy solely in bitcoin, any losses suffered as a result of a decrease in the value of bitcoin can

be expected to reduce the value of an interest in the Trust and will not be offset by other gains if the Trust were to invest in underlying

assets that were diversified.

Unlike other funds that may invest in diversified assets, the Trust’s investment strategy is concentrated in a single asset within a single asset class.

This concentration maximizes the degree of the Trust’s exposure to a variety of market risks associated with bitcoin and digital assets.

By concentrating its investment strategy solely in bitcoin, any losses suffered as a result of a decrease in the value of bitcoin can be expected to reduce the value of an interest in the Trust and will not be offset by other gains if the Trust were to invest in underlying assets that were diversified.

Indemnification

The Sponsor will not be liable

to the Trust, the Trustee or any Shareholder for any action taken or for refraining from taking any action in good faith, or for errors

in judgment or for depreciation or loss incurred by reason of the sale of any bitcoin or other assets of the Trust.

However, the preceding

liability exclusion will not protect the Sponsor against any liability resulting from its own gross negligence, bad faith, or willful

The Sponsor and each of its

shareholders, members, directors, officers, employees, affiliates, and subsidiaries will be indemnified by the Trust and held harmless

against any losses, liabilities or expenses incurred in the performance of its duties under the Trust Agreement without gross negligence,

bad faith, or willful misconduct.

The Sponsor may rely in good faith on any paper, order, notice, list, affidavit, receipt, evaluation,

opinion, endorsement, assignment, draft, or any other document of any kind prima facie properly executed and submitted to it by the Trustee,

the Trustee’s counsel or by any other person for any matters arising under the Trust Agreement.

The Sponsor shall in no event be

deemed to have assumed or incurred any liability, duty, or obligation to any Shareholder or to the Trustee other than as expressly provided

for in the Trust Agreement.

Such indemnity includes payment from the Trust of the costs and expenses incurred in defending against any

indemnified claim or liability under the Trust Agreement.

The Trustee will not be liable

or accountable to the Trust or any other person or under any agreement to which the Trust or any series of the Trust is a party, except

for the Trustee’s breach of its obligations pursuant to the Trust Agreement or its own willful misconduct, bad faith or gross negligence.

The Trustee and each of the Trustee’s officers, affiliates, directors, employees, and agents will be indemnified by the Trust from

and against any losses, claims, taxes, damages, reasonable expenses, and liabilities incurred with respect to the creation, operation

or termination of the Trust, the execution, delivery or performance of the Trust Agreement or the transactions contemplated thereby;

that the indemnified party acted without willful misconduct, bad faith or gross negligence.

The Sponsor will not be liable to the Trust, the Trustee or any Shareholder for any action taken or for refraining from taking any action in good faith, or for errors in judgment or for depreciation or loss incurred by reason of the sale of any bitcoin or other assets of the Trust.

However, the preceding liability exclusion will not protect the Sponsor against any liability resulting from its own gross negligence, bad faith, or willful misconduct.

The Sponsor and each of its shareholders, members, directors, officers, employees, affiliates, and subsidiaries will be indemnified by the Trust and held harmless against any losses, liabilities or expenses incurred in the performance of its duties under the Trust Agreement without gross negligence, bad faith, or willful misconduct.

The Sponsor may rely in good faith on any paper, order, notice, list, affidavit, receipt, evaluation, opinion, endorsement, assignment, draft, or any other document of any kind prima facie properly executed and submitted to it by the Trustee, the Trustee’s counsel or by any other person for any matters arising under the Trust Agreement.

The Sponsor shall in no event be deemed to have assumed or incurred any liability, duty, or obligation to any Shareholder or to the Trustee other than as expressly provided for in the Trust Agreement.

Such indemnity includes payment from the Trust of the costs and expenses incurred in defending against any indemnified claim or liability under the Trust Agreement.

The Trustee will not be liable or accountable to the Trust or any other person or under any agreement to which the Trust or any series of the Trust is a party, except for the Trustee’s breach of its obligations pursuant to the Trust Agreement or its own willful misconduct, bad faith or gross negligence.

The Trustee and each of the Trustee’s officers, affiliates, directors, employees, and agents will be indemnified by the Trust from and against any losses, claims, taxes, damages, reasonable expenses, and liabilities incurred with respect to the creation, operation or termination of the Trust, the execution, delivery or performance of the Trust Agreement or the transactions contemplated thereby;

provided that the indemnified party acted without willful misconduct, bad faith or gross negligence.

Subsequent Events

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.

The Trust has evaluated all subsequent events and transactions for potential recognition or disclosure through the date the financial statements were issued 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