What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2024-08-09 compared with 2024-05-14 · 266 added, 220 removed, 82 unchanged (86% of the section changed)

Financial Statements.

TO FINANCIAL STATEMENTS

of Financial Condition at March 31, 2024 (unaudited) and December 31, 2023

of Investment at March 31, 2024 (unaudited)

Statement of Operations for the three months ended March 31, 2024

Statement of Changes in Net Assets for the three months ended March 31, 2024

to Financial Statements

of Financial Condition

March 31, 2024

INDEX TO FINANCIAL STATEMENTS

Statements of Financial Condition at June 30,

2024 (unaudited) and December 31, 2023

Schedule of Investment at June 30, 2024 (unaudited)

Unaudited Statements of Operations for the three

and six months ended June 30, 2024

Unaudited Statements of Changes in Net Assets

for the three and six months ended June 30, 2024

Notes to the Financial Statements (unaudited)

CoinShares Valkyrie Bitcoin Fund

Statements of Financial Condition

June 30, 2024 (unaudited)

December 31, 2023

Investment in bitcoin, at fair value (cost

$ 452,528,788 and

$ 0 at March 31, 2024 and December 31, 2023,

respectively)

Investments in bitcoin, at fair value (cost $ 510,179,338 and $ 0 at June 30, 2024 and December 31, 2023, respectively)

$ 518,424,674

Trust shares sold

Bitcoin purchased payable

$ 518,424,674

Sponsor fees payable

Total liabilities

2 unchanged sentences

Net asset value per Share

accompanying notes are an integral part of the financial statements.

of Investment

March 31, 2024 (a)

The accompanying notes are an integral part

of the financial statements.

CoinShares Valkyrie Bitcoin Fund

Schedule of Investment

June 30, 2024 (a)

% of Net Assets

7 unchanged sentences

$ 518,313,439

(a) No comparative

schedules of investment have been provided as the Trust did not hold bitcoin as of December 31, 2023.

(b) Represents less

than 0.05 % of net assets.

accompanying notes are an integral part of the financial statements.

of Operations

For the Three

March 31, 2024 (a)

Sponsor’s fee (Note 4)

(a) No comparative schedules

of investment have been provided as the Trust did not hold bitcoin as of December 31, 2023.

(b) Represents less than 0.05 % of net assets.

The accompanying notes are an integral part

of the financial statements.

CoinShares Valkyrie Bitcoin Fund

Statements of Operations

the Three Months Ended

30, 2024 (Unaudited) (a)

the Six Months Ended

30, 2024 (Unaudited) (a)

Sponsor fee (Note 4)

Sponsor fee waiver

4 unchanged sentences

Net change in unrealized gain (loss) on investment

( 82,428,503 )

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

( 69,451,482 )

Net income (loss)

$ ( 69,741,963 )

Net income (loss) per share

Weighted average number of shares outstanding

(a) No comparative

statements of operations have been provided as the Trust had not to commenced operations as of December 31, 2023.

accompanying notes are an integral part of the financial statements.

of Changes in Net Assets

the three months ended March 31, 2024

For the Three

March 31, 2024 (a)

Net Assets – Beginning of Period

(a) No further comparative statements of operations have

been provided as the Trust had not commenced operations as of December 31, 2023.

The accompanying notes are an integral part

of the financial statements.

CoinShares Valkyrie Bitcoin Fund

Statements of Changes in Net Assets

June 30, 2024 (Unaudited) (a)

Net Assets – Opening Balance

$ 543,197,988

( 45,629,069 )

( 45,702,507 )

Net investment income (loss)

1 unchanged sentence

Net change in unrealized gain (loss) on investment

Net Assets – End of Period

( 82,428,503 )

(a) No comparative

statements of changes in net assets have been provided as the Trust had not commenced operations as of December 31, 2023.

accompanying notes are an integral part of the financial statements.

to the Unaudited Financial Statements

Valkyrie Bitcoin Fund (the “Trust”) was organized as a Delaware statutory trust on January 20, 2021.

Net Assets – Ending Balance

$ 518,313,439

(a) No further comparative statements of changes in net

assets have been provided as the Trust had not commenced operations as of December 31, 2023.

The accompanying notes are an integral part

of the financial statements.

CoinShares Valkyrie Bitcoin Fund

Notes to the Financial Statements (Unaudited)

June 30, 2024

CoinShares Valkyrie Bitcoin Fund, formerly known

as Valkyrie Bitcoin Fund (the “Trust”), was organized as a Delaware statutory trust on January 20, 2021.

The fiscal year for

1 unchanged sentence

The trustee is Delaware Trust Company (the “Trustee”).

The Trust’s sponsor is

Valkyrie Digital Assets LLC, a Delaware limited liability company (the “Sponsor”), which is responsible for the day-to-day

administration of the Trust.

The Trust is governed by the provisions of the Trust agreement (the “Trust Agreement”) executed

by the Sponsor and the Trustee.

The Valkyrie Bitcoin Fund is an exchange-traded fund that issues common shares of beneficial interest

(“Shares”) representing units of fractional undivided beneficial interests in its net assets.

There are an unlimited number

of authorized shares.

investment objective of the Trust is for the Shares to reflect the performance of the value of a bitcoin as represented by the CME CF

Bitcoin Reference Rate - New York Variant (the “Index”), less the Trust’s liabilities and expenses.

In seeking to achieve

its investment objective, the Trust holds bitcoin and values its Shares daily based on the value of bitcoin as reflected by the Index,

which is an independently calculated value based on an aggregation of executed trade flow of major bitcoin spot exchanges.

offering of the Trust’s Shares is registered with the Securities and Exchange Commission (“SEC”) in accordance with

the Securities Act of 1933.

of Presentation and Summary of Significant Accounting Policies

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 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.

Trust is an “emerging growth company” as defined in the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”).

The Trust will cease to be an “emerging growth company” upon the earliest of (i) it having $1.235 billion or more in annual

revenues, (ii) at least $700 million in market value of Shares being held by non-affiliates, (iii) it issuing more than $1.0 billion

of non-convertible debt over a three-year period or (iv) the last day of the fiscal year following the fifth anniversary of its initial

public offering.

as long as the Trust is an emerging growth company, unlike other public companies, it will not be required to provide an auditor’s

attestation report on management’s assessment of the effectiveness of our system of internal control over financial reporting pursuant

to Section 404(b) of the Sarbanes-Oxley Act of 2002;

or comply with any new audit rules adopted by the PCAOB after April 5, 2012, unless

the SEC determines otherwise.

following is a summary of significant accounting policies consistently followed by the Trust in the preparation of financial statements.

The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America

Use of Estimates

preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the

reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements.

Actual results could differ from those estimates.

Investment in Bitcoin

Trust purchases bitcoin upon the net creation of Shares and sells bitcoin upon the net redemption of Shares.

Transactions are recorded

on a trade-date basis.

Realized gains (losses) and changes in unrealized gains (losses) on open positions are determined on a specific

identification basis and are recognized in the statement of operations in the period in which the sale occurred or the changes in unrealized

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

ET on the Trust’s financial statement

measurement date to value the bitcoin held by the Trust.

The Sponsor determines in its sole discretion the valuation sources and policies

used to prepare the Trust’s financial statements in accordance with U.S.

The Trust engages a third party vendor to obtain

a price from a principal market for bitcoin, which is determined and designated by such third party vendor daily based on its consideration

of several exchange characteristics, including the volume and frequency of trades.

Indemnifications

Sponsor and its affiliates (“Covered Person”) will be indemnified by the Trust and held harmless against any loss, judgment,

liability, expense incurred or amount paid in settlement of any claim sustained by it in connection with the Covered Person’s activities

for the Trust, without fraud, gross negligence, bad faith, willful misconduct or a material breach of the Trust Agreement on the part

of such indemnified party arising out of or in connection with the performance of its obligations under the Trust Agreement and under

each other agreement entered into by the Sponsor in furtherance of the administration of the Trust (including, without limiting the scope

of the foregoing, any Participant Agreement) or any actions taken in accordance with the provisions of the Trust Agreement.

Trustee and any of the officers, directors, employees and agents of the Trustee shall be indemnified by the Trust as primary obligor

and held harmless against any loss, damage, liability, claim, action, suit, cost, expense, disbursement (including the reasonable fees

and expenses of counsel), tax or penalty of any kind and nature whatsoever, arising out of, imposed upon or asserted at any time against

such indemnified person in connection with the performance of its obligations under the Trust Agreement, the creation, operation or termination

of the Trust or the transactions contemplated therein;

provided, however, that neither the Trust nor the Sponsor shall be required to

indemnify any such indemnified person for any such expenses which are a result of the willful misconduct, bad faith or gross negligence

of such indemnified person.

Trust’s maximum exposure under these arrangements is unknown because it involves future potential claims against the Trust, which

cannot be predicted with any certainty.

Federal Income Taxes

Sponsor intends to take the position that the Trust will be treated as a grantor trust under the Internal Revenue Code of 1986, as amended.

If so qualified, the Trust will not be subject to U.S.

On June 14, 2024, CoinShares

Co., a Delaware corporation (the “Sponsor”), succeeded Valkyrie Digital Assets LLC, a Delaware limited liability company (the

“Initial Sponsor”), as the sponsor of the Trust.

The Sponsor is responsible for the day-to-day administration of the Trust.

The Trust is governed by the provisions of the Trust Agreement, as amended (the “Trust Agreement”), executed by the Initial

Sponsor and the Trustee.

The Trust is an exchange-traded fund that issues common shares of beneficial interest (“Shares”)

representing units of fractional undivided beneficial interests in its net assets.

There are an unlimited number of authorized shares.

The investment objective of the Trust is for the

Shares to reflect the performance of the value of a bitcoin as represented by the CME CF Bitcoin Reference Rate - New York Variant (the

“Index”), less the Trust’s liabilities and expenses.

In seeking to achieve its investment objective, the Trust holds

bitcoin and values its Shares daily based on the value of bitcoin as reflected by the Index, which is an independently calculated value

based on an aggregation of executed trade flow of major bitcoin spot exchanges.

The offering of the Trust’s Shares is registered

with the Securities and Exchange Commission (“SEC”) in accordance with the Securities Act of 1933.

Basis of Presentation and Summary of Significant

Accounting Policies

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 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 Trust is an “emerging growth company”

as defined in the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”).

The Trust will cease to be an “emerging

growth company” upon the earliest of (i) it having $1.235 billion or more in annual revenues, (ii) at least $700 million in market

value of Shares being held by non-affiliates, (iii) it issuing more than $1.0 billion of non-convertible debt over a three-year period

or (iv) the last day of the fiscal year following the fifth anniversary of its initial public offering.

For as long as the Trust is an emerging growth

company, unlike other public companies, it will not be required to provide an auditor’s attestation report on management’s

assessment of the effectiveness of our system of internal control over financial reporting pursuant to Section 404(b) of the Sarbanes-Oxley

or comply with any new audit rules adopted by the PCAOB after April 5, 2012, unless the SEC determines otherwise.

The following is a summary of significant accounting

policies consistently followed by the Trust in the preparation of financial statements.

The financial statements have been prepared in

conformity with accounting principles generally accepted in the United States of America (“GAAP”).

(a) Use of Estimates

The preparation

of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts

of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements.

Actual results

could differ from those estimates.

(b) Investment Transactions

The Trust purchases bitcoin

upon the net creation of Shares and sells bitcoin upon the net redemption of Shares.

Transactions are recorded on a trade-date basis.

Realized gains (losses) and changes in unrealized gains (losses) on open positions are determined on a specific identification basis and

are recognized in the statement of operations in the period in which the sale occurred or the changes in unrealized occurred.

The Trust utilizes an exchange traded price from

the principal market for bitcoin as of 4:00 p.m.

ET on the Trust’s financial statement measurement date to value the bitcoin held

by the Trust.

The Sponsor determines in its sole discretion the valuation sources and policies used to prepare the Trust’s financial

statements in accordance with U.S.

The Trust engages a third-party vendor to obtain a price from a principal market for bitcoin,

which is determined and designated by such third-party vendor daily based on its consideration of several exchange characteristics, including

the volume and frequency of trades.

The Sponsor and its affiliates

(each a “Covered Person”) will be indemnified by the Trust and held harmless against any loss, judgment, liability, expense

incurred or amount paid in settlement of any claim sustained by it in connection with the Covered Person’s activities for the Trust,

without fraud, gross negligence, bad faith, willful misconduct or a material breach of the Trust Agreement on the part of such indemnified

party arising out of or in connection with the performance of its obligations under the Trust Agreement and under each other agreement

entered into by the Sponsor in furtherance of the administration of the Trust (including, without limiting the scope of the foregoing,

any Participant Agreement) or any actions taken in accordance with the provisions of the Trust Agreement.

The Trustee and any of

the officers, directors, employees and agents of the Trustee shall be indemnified by the Trust as primary obligor and held harmless against

any loss, damage, liability, claim, action, suit, cost, expense, disbursement (including the reasonable fees and expenses of counsel),

tax or penalty of any kind and nature whatsoever, arising out of, imposed upon or asserted at any time against such indemnified person

in connection with the performance of its obligations under the Trust Agreement, the creation, operation or termination of the Trust or

the transactions contemplated therein;

provided, however, that neither the Trust nor the Sponsor shall be required to indemnify any such

indemnified person for any such expenses which are a result of the willful misconduct, bad faith or gross negligence of such indemnified

The Trust’s maximum

exposure under these arrangements is unknown because it involves future potential claims against the Trust, which cannot be predicted

with any certainty.

(d) Federal Income Taxes

intends to take the position that the Trust will be treated as a grantor trust under the Internal Revenue Code of 1986, as amended.

so qualified, the Trust will not be subject to U.S.

federal income tax to the extent it distributes substantially all of its investment

3 unchanged sentences

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

Valuation and Calculation of Net Asset Value (“NAV”)

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.

Investment Valuation and Calculation of Net

Asset Value (“NAV”)

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.

Valuation Measurement:

Fair Valuation Measurement:

FASB established a framework for measuring fair value in accordance with GAAP.

Under FASB ASC Topic 820, Fair

Value Measurement, various inputs are used in determining the value of investments.

The inputs or methodology used for valuing investments

are not necessarily an indication of the risk associated with investing in those investments.

The three levels of inputs of the fair

value hierarchy are defined as follows:

1 — Unadjusted quoted prices in active markets for identical assets or liabilities.

2 — Observable inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly

or indirectly.

These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar securities,

interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.

3 — Unobservable inputs for the asset or liability, to the extent relevant observable inputs are not available;

representing the

Trust’s own assumptions about the assumptions a market participant would use in valuing the asset or liability and would be based

on the best information available.

following table presents information about the Trust’s assets and liabilities measured at fair value as of March 31, 2024:

Under FASB ASC Topic 820, Fair Value Measurement, various

inputs are used in determining the value of investments.

The inputs or methodology used for valuing investments are not necessarily an

indication of the risk associated with investing in those investments.

The three levels of inputs of the fair value hierarchy are defined

Level 1 — Unadjusted

quoted prices in active markets for identical assets or liabilities.

Level 2 — Observable

inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly.

inputs may include quoted prices for the identical instrument on an inactive market, prices for similar securities, interest rates, prepayment

speeds, credit risk, yield curves, default rates and similar data.

Level 3 — Unobservable

inputs for the asset or liability, to the extent relevant observable inputs are not available;

representing the Trust’s own assumptions

about the assumptions a market participant would use in valuing the asset or liability and would be based on the best information available.

The following table presents information about

the Trust’s assets and liabilities measured at fair value as of June 30, 2024:

$ 518,424,674

3 unchanged sentences

$ 518,424,674

There were no transfers between Level 1 and other Levels for the three months ended March 31, 2024.

The Trust held no

bitcoin as of December 31, 2023

financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the

fair value measurement.

The availability of observable inputs can vary from security to security and is affected by a wide variety of

factors, including, for example, the type of security, whether the security is new and not yet established in the marketplace, the liquidity

of markets, and other characteristics particular to the security.

To the extent that valuation is based on models or inputs that are

less observable or unobservable in the market, the determination of fair value requires more judgment.

Accordingly, the degree of judgment

exercised in determining fair value is greatest for instruments categorized in Level 3.

Trust fair values investments for financial statement purposes, categorizing those investments using the hierarchy as described above.

fair value of bitcoin held by the Trust is determined based on a GAAP-consistent pricing source.

The Trust’s NAV is calculated

by subtracting all accrued fees, expenses and other liabilities from the fair value of its bitcoin and other assets.

NAV per share is calculated by taking the Trust’s NAV divided by the total amount of Shares outstanding.

Trust pays to the Sponsor a Sponsor’s fee in accordance with the Trust agreement.

The Sponsor’s fee accrues daily by applying

There were no transfers between Level 1 and other Levels for the six months ended June 30, 2024.

A financial instrument’s level within the

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

The availability of

observable inputs can vary from security to security and is affected by a wide variety of factors, including, for example, the type of

security, whether the security is new and not yet established in the marketplace, the liquidity of markets, and other characteristics

particular to the security.

To the extent that valuation is based on models or inputs that are less observable or unobservable in the

market, the determination of fair value requires more judgment.

Accordingly, the degree of judgment exercised in determining fair value

is greatest for instruments categorized in Level 3.

The Trust fair values investments for financial

statement purposes, categorizing those investments using the hierarchy as described above.

The fair value of bitcoin held by the Trust is

determined based on a GAAP-consistent pricing source.

The Trust’s NAV is calculated by subtracting all accrued fees, expenses and

other liabilities from the fair value of its bitcoin and other assets.

The Trust’s NAV per share is calculated by taking the Trust’s

NAV divided by the total amount of Shares outstanding.

Trust Expenses

The Trust pays to the

Sponsor a Sponsor fee (the “Sponsor Fee”) in accordance with the Trust Agreement.

The Sponsor Fee accrues daily by applying

an annual rate of 0.25 % to the Trust’s bitcoin holdings.

The Sponsor’s fee will be payable in bitcoins at such times as determined

The Sponsor Fee will be payable in bitcoins at such times as determined

in the Sponsor’s sole discretion.

1 unchanged sentence

to the Sponsor or the sale of bitcoin for costs not included in the Sponsor Fee.

Sponsor is obligated to assume and pay the following fees and expenses of the Trust:

the Marketing fee, the Administrator fee, the Custodian

fee, the Cash Custodian fee, the Transfer Agent fee, the Trustee fee, applicable license fees, including the licensing fees related to

the Index License Agreement, fees and expenses related to trading of Shares on Nasdaq (including marketing, legal and audit fees and

expenses), legal expenses, audit fees, regulatory fees, including any fees relating to the registration of the Shares with the SEC, printing

and mailing costs and costs of maintaining the Trust’s website.

Bancorp Fund Services, LLC, doing business as U.S.

Bank Global Fund Services (“Fund Services”), an indirect subsidiary of

Bancorp, serves as the Trust’s fund accountant, fund administrator and the transfer agent of the Trust, pursuant to certain

fund accounting servicing, fund administration servicing and transfer agent servicing agreements.

The Sponsor is obligated

to assume and pay the following fees and expenses of the Trust:

the Marketing Agent fee, the Administrator fee, the Custodian fee, the

Cash Custodian fee, the Transfer Agent fee, the Trustee fee, applicable license fees, including the licensing fees related to the Index

License Agreement, fees and expenses related to trading of Shares on Nasdaq (including marketing, legal and audit fees and expenses),

legal expenses, audit fees, regulatory fees, including any fees relating to the registration of the Shares with the SEC, printing and

mailing costs and costs of maintaining the Trust’s website.

Bancorp Fund Services,

LLC, doing business as U.S.

Bank Global Fund Services (“Fund Services”), an indirect subsidiary of U.S.

Bancorp, serves as

the Trust’s fund accountant, fund administrator and the transfer agent of the Trust, pursuant to certain fund accounting servicing,

fund administration servicing and transfer agent servicing agreements.

Bank N.A., a subsidiary of U.S.

Bancorp and parent company of Fund Services, serves as the Trust’s cash custodian pursuant to a custody agreement.

Distributors LLC serves as the Trust’s marketing agent pursuant to a marketing agent agreement.

Custody Trust Company, LLC and BitGo Trust Company, Inc.

(the “Custodians”)

are custodians and Coinbase, Inc., an affiliate of the Custodian, is the prime broker of the Trust.

and Redemption of Creation Units

Trust issues Shares on an ongoing basis, but only in one or more blocks of 5,000 Shares (a “Basket”).

The Trust issues Baskets

of Shares to certain authorized participants on an ongoing basis and redeems Shares in Baskets on an ongoing basis from Authorized Participants.

participants are the only persons that may place orders to create and redeem Baskets.

Authorized participants must be (1) registered

broker-dealers or other securities market participants, such as banks or other financial institutions, that are not required to register

as broker-dealers to engage in securities transactions as described below, and (2) Depository Trust Company participants.

participants pay the transfer agent a fee for each order they place to create or redeem one or more Baskets.

In addition, an authorized

participant is required to reimburse the Trust or the Sponsor, as applicable, for any operational processing and brokerage costs, transfers

fees, network fees, stamp taxes and part or all of the spread between the expected bid and offer side of the market related to the bitcoin

being purchased or sold in connection with such order (the “Execution Charges”, and collectively with the Transfer Agent

Fee, the “Transaction Fees”).

Bancorp and parent company

of Fund Services, serves as the Trust’s cash custodian pursuant to a custody agreement.

Paralel Distributors

LLC (the “Marketing Agent”) serves as the Trust’s marketing agent pursuant to a marketing agent agreement.

Coinbase Custody Trust Company, LLC and BitGo

Trust Company, Inc.

(the “Custodians”) are custodians of the Trust.

Creation and Redemption of Creation Units

The Trust issues Shares

on an ongoing basis, but only in one or more blocks of 5,000 Shares (a “Basket”).

The Trust issues Baskets of Shares

to certain authorized participants on an ongoing basis and redeems Shares in Baskets on an ongoing basis from Authorized Participants.

Authorized participants

are the only persons that may place orders to create and redeem Baskets.

Authorized participants must be (1) registered broker-dealers

or other securities market participants, such as banks or other financial institutions, that are not required to register as broker-dealers

to engage in securities transactions as described below, and (2) Depository Trust Company participants.

Authorized participants

pay the transfer agent a fee for each order they place to create or redeem one or more Baskets.

In addition, an authorized participant

is required to reimburse the Trust or the Sponsor, as applicable, for any operational processing and brokerage costs, transfers fees,

network fees, stamp taxes and part or all of the spread between the expected bid and offer side of the market related to the bitcoin being

purchased or sold in connection with such order (the “Execution Charges”, and collectively with the Transfer Agent Fee, the

“Transaction Fees”).

The Transaction Fees may be reduced, increased or otherwise changed by the Sponsor.

Activity in the number and value of Shares created and redeemed for the three months ended March 31, 2024 are as follows:

Activity in the number and value of Shares

created and redeemed for the six months ended June 30, 2024 are as follows:

Number of Shares

1 unchanged sentence

$ 543,084,070

( 2,495,000 )

$ ( 45,702,507 )

Net change in Shares created and redeemed

1 unchanged sentence

Investment Transactions

For the three months ended March 31, 2024, the

cost of purchases and proceeds from sales of bitcoin by the Trust, were as follows:

For the six months ended June 30, 2024, the cost

of purchases and proceeds from sales of bitcoin by the Trust, were as follows:

$ 543,007,288

Related Party Transactions

Certain officers of the Trust are affiliated with

the Sponsor and are not paid any fees by the Trust for serving in such capacities.

The Sponsor agreed to waive Sponsor fees for the

initial three months of the Trust’s operations, through April 10, 2024.

For the three months ended March 31, 2024, the Trust incurred

$ 114,185 in Sponsor fees, of which, $ 114,185 was waived by the Sponsor.

On January 10, 2024, Valkyrie Funds LLC, an affiliate

of the Sponsor, purchased 40,000 Shares at a per-Share price of $ 13.00 .

Certain officers of the

Trust are affiliated with the Sponsor and are not paid any fees by the Trust for serving in such capacities.

The Initial Sponsor agreed

to waive Sponsor fees for the first three months of the Trust’s operations, through April 10, 2024.

For the six months ended June

30, 2024, the Trust incurred $ 447,348 in Sponsor Fees, of which, $ 156,867 was waived by the Initial Sponsor.

On January 10, 2024,

Valkyrie Funds LLC, at such time an affiliate of the Initial Sponsor, purchased 40,000 Shares at a per-Share price of $ 13.00 .

Delivery of these Shares was made on January 11, 2024.

Total proceeds to the Trust from the sale of these Shares was $ 520,000 .

On March 15, 2024, the Trust entered into an agreement

with CoinShares Co., a Delaware corporation, to act as Co-Sponsor of the Trust in an advisory capacity.

In connection with adding CoinShares

as Co-Sponsor of the Trust, the Trust Agreement was amended.

CoinShares Co.

is a wholly owned subsidiary of CoinShares International

Limited, a Jersey company.

June 14, 2024 (the “Effective Date”), Valkyrie Digital Assets LLC shall withdraw as Sponsor to the Trust.

Pursuant to Section

6.9 of the Trust Agreement, on the Effective Date of the Sponsor’s withdrawal as Sponsor to the Trust, CoinShares Co.

shall automatically

and without further action by the Sponsor, Trustee or the Shareholders (as defined in the Trust Agreement) become the successor Sponsor

and shall have all the powers, rights, duties and obligations of the Sponsor under the Trust Agreement.

On March 15, 2024, the

Trust entered into an agreement with CoinShares Co., a Delaware corporation, to act as Co-Sponsor of the Trust in an advisory capacity.

Effective June 14, 2024 (the “Effective Date”), the Initial Sponsor withdrew as Co-Sponsor

to the Trust.

Pursuant to Section 6.9 of the Trust Agreement, on the Effective Date of the Initial Sponsor’s withdrawal as Co-Sponsor

to the Trust, CoinShares Co.

automatically and without further action by the Co-Sponsor, Trustee or the Shareholders (as defined in the

Trust Agreement) became the successor Sponsor and has all the powers, rights, duties and obligations of the Sponsor under the Trust Agreement.

of June 30, 2024, affiliates of the Sponsor own 18,140,000 Shares of the Trust.

Commitments and Contingencies

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

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

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.

Financial Highlights

The Trust is presenting the following financial

highlights related to investment performance and operations of a Share outstanding for the period from January 10, 2024 (the initial share

purchase date) through March 31, 2024.

The total return at NAV is based on the change in NAV of a Share during the period and the total

return at market value is based on the change in market value of a Share on the Nasdaq Stock Market, LLC during the period.

An individual

investor’s return and ratios may vary based on the timing of capital transactions.

Fiancial Highlights (Unaudited)

For the period January 10, 2024 through March

March 31, 2024

highlights related to investment performance and operations of a Share outstanding for the three months ended June 30, 2024 and the period

from January 10, 2024 (the initial share purchase date) through June 30, 2024.

The total return at NAV is based on the change in NAV of

a Share during the period and the total return at market value is based on the change in market value of a Share on the Nasdaq Stock Market,

LLC during the period.

An individual investor’s return and ratios may vary based on the timing of capital transactions.

Financial Highlights (Unaudited)

For the three months ended June 30, 2024 and the

period January 10, 2024 through June 30, 2024

Three Months Ended

June 30, 2024

Net Asset Value

14 unchanged sentences

(2) Not annualized

(3) Includes voluntary reimbursement of sponsor fees of 0.25 %

(3) Includes voluntary reimbursement of sponsor fees of 0.03 % and 0.09 %

Subsequent Events

The Sponsor has evaluated all subsequent events

through the issuance of the financial statements and has noted no events other than those described in Note 7 requiring adjustment or

additional disclosure in the financial statements.

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

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