What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2025-05-15 compared with 2024-11-12 · 281 added, 253 removed, 80 unchanged (87% of the section changed)

Financial Statements.

INDEX TO FINANCIAL STATEMENTS

Statements of Financial Condition at September 30, 2024 (unaudited) and December 31, 2023

Schedule of Investment at September 30, 2024 (unaudited)

Unaudited Statements of Operations for the three and nine months ended September 30, 2024

Unaudited Statements of Changes in Net Assets for the three and nine months ended September 30, 2024

Notes to the Financial Statements (unaudited)

CoinShares Valkyrie Bitcoin Fund

Financial Statements (unaudited)

Statements of Financial Condition

September 30, 2024

At March 31, 2025 (unaudited) and December

March 31, 2025 (unaudited)

December 31, 2024

Investments in bitcoin, at fair value (cost $ 550,536,777 and $ 0 at

September 30, 2024 and December 31, 2023, respectively)

Investments in bitcoin, at fair value (cost $ 399,364,695 and $ 563,456,383 at March 31, 2025

and December 31, 2024, respectively)

$ 480,384,508

$ 826,306,338

Bitcoin sold receivable

$ 490,947,704

$ 826,306,338

Sponsor fees payable

Redemptions payable

Total liabilities

$ 480,386,204

$ 826,115,990

Shares issued and outstanding, no par value, Unlimited shares authorized

Net asset value per Share

The accompanying notes are an integral part of

the financial statements.

The accompanying notes are an integral

part of the financial statements.

COINSHARES VALKYRIE BITCOIN FUND

Schedule of Investment

September 30, 2024 (a)

Schedules of Investment

At March 31, 2025 (unaudited) and December

March 31, 2025 (Unaudited)

% of Net Assets

2 unchanged sentences

Other assets and liabilities, net

(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.

December 31, 2024

% of Net Assets

Investment in bitcoin

Total investment

Other assets and liabilities, net

(a) 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

For the Three

September 30, 2024

(Unaudited) (a)

September 30, 2024

(Unaudited) (a)

Unaudited Statements of Operations

the three months ended March 31, 2025 and March 31, 2024

Three Months Ended

March 31, 2025 (Unaudited)

Three Months Ended

March 31, 2024 (Unaudited)

Sponsor fee (Note 4)

5 unchanged sentences

Net change in unrealized gain (loss) on investment

( 181,830,142

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

( 76,152,266 )

Net income (loss)

$ ( 76,612,819 )

Net income (loss) per share

Weighted average number of shares outstanding

(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.

The accompanying notes are an integral

part of the financial statements.

COINSHARES VALKYRIE BITCOIN FUND

Statements of Changes in Net Assets

Unaudited Statements of Changes in Net

the three months ended March 31, 2025 and March 31, 2024

Three Months Ended

September 30, 2024

(Unaudited) (a)

Nine Months Ended

September 30, 2024

(Unaudited) (a)

March 31, 2025 (Unaudited)

Three Months Ended

March 31, 2024 (Unaudited)

Net Assets – Opening Balance

4 unchanged sentences

Net change in unrealized gain (loss) on investment

Net Assets – Ending Balance

(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.

( 181,830,142 )

Net Assets – Closing Balance

$ 480,386,204

$ 543,197,988

The accompanying notes are an integral

part of the financial statements.

COINSHARES VALKYRIE BITCOIN FUND

Notes to the Financial Statements (Unaudited)

September 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

the Trust is December 31 st .

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

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.

CoinShares Valkyrie Bitcoin Fund (the “Trust”),

was organized as a Delaware statutory trust on January 20, 2021.

The fiscal year for the Trust is December 31 st .

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

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.

The Trust is governed by

the provisions of the Trust Agreement, as amended (the “Trust Agreement”), executed by the Initial Sponsor and the

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 Act of

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”).

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.

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

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 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 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

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 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.

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

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 person.

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

income and capital gains to shareholders.

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

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

federal income tax to the extent it distributes substantially

all of its investment income and capital gains to shareholders.

Therefore, no federal income tax provision is required.

Rather, a pro rata portion of the Trust’s

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

a pro rata portion of the Trust’s income, gain, losses and deductions will “flow through” to each beneficial

owner of Shares.

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.

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

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 September 30, 2024:

$ 569,763,992

FASB Accounting Standards Codification

Topic 820, Fair Value Measurements and Disclosures, provides a single definition of fair value, a hierarchy for measuring fair

value and expanded disclosures about fair value adjustments.

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 its investments at fair value.

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:

Level 1 — Unadjusted quoted prices

in active markets for identical assets or liabilities.

Level 2 — 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, 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;

Level 3 — Inputs that are unobservable

for the asset or liability, including the Trust’s assumptions used in determining the fair value of investments.

The following table summarizes the Trust’s

investments at fair value:

March 31, 2025

$ 480,384,508

1 unchanged sentence

$ 480,384,508

December 31, 2024

$ 826,306,338

There were no transfers

between Level 1 and other Levels for the nine months ended September 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.

Total Investments

$ 826,306,338

There were no transfers between Level 1 and other Levels for the three months ended March 31, 2025, or for the year

ended December 31, 2024.

The Trust fair values investments for financial

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

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 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 Fee will be payable in bitcoins at such times as determined in the

Sponsor’s sole discretion.

The Trust is not responsible for paying any fees or costs associated with the transfer of bitcoin to

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

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.

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 Fee is paid in bitcoins at such times

as determined in the Sponsor’s sole discretion.

The Trust is not responsible for paying any fees or costs associated with

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

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.

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.

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.

Paralel Distributors LLC

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

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, BitGo

Trust Company, Inc.

and Komainu (Jersey) Limited (the “Custodians”) are custodians of the Trust.

Creation and Redemption of Creation

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

Trust Company, Inc., and Komainu (Jersey) Limited (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

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 nine months ended September 30, 2024 are as follows:

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

Activity in the number and value of

Shares created and redeemed for the three months ended March 31, 2025 and 2024 are as follows:

Number of Shares

Value of Shares

March 31, 2025

March 31, 2024

March 31, 2025

March 31, 2024

$ 452,597,587

( 11,420,000 )

$ ( 286,697,989 )

Net change in Shares created and redeemed

( 10,810,000 )

$ ( 269,116,967 )

$ 452,524,149

Investment Transactions

For the nine months ended September 30, 2024, the

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

For the three months ended March 31, 2025

and 2024, the cost of purchases and proceeds from sales of bitcoin by the Trust, were as follows:

March 31, 2025

March 31, 2024

March 31, 2025

March 31, 2024

$ 452,528,788

$ 287,313,093

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 Initial Sponsor agreed

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

For the nine months ended September

30, 2024, the Trust incurred $ 791,603 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 .

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.

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

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 three

months ended March 31, 2024, the Trust incurred $ 114,185 in Sponsor Fees, of which, $ 114,185 was waived by the Initial

For the three months ended March 31, 2025, the Trust incurred $ 460,553 in Sponsor Fees.

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

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

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.

Prior to CoinShares

assuming the role of Co-Sponsor and Sponsor, CoinShares Captial Markets (Jersey) Limited, an affiliate of the Sponsor, served

as a Bitcoin Trading Counterparty of the Trust.

In such role, CoinShares Captial Markets (Jersey) Limited fulfilled orders from

the Trust for the purchase and sale of bitcoin.

No orders for the purchase or sale of bitcoin were executed with CoinShares Capital

Markets (Jersey) Limited on or since March 15, 2024, the date on which CoinShares Co.

became a Co-Sponsor to the Trust.

the period that CoinShares Capital Markets (Jersey) Limited was a Bitcoin Trading Counterparty of the Trust, CoinShares Capital

Markets (Jersey) Limited fulfilled purchase orders with an approximate value of $ 295 million.

As of March 31,

2025, 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.

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.

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

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.

Segment Reporting

Sponsor acts as the Trust’s Chief Operating Decision Maker (“CODM’) and is responsible for assessing performance

and allocating resources with respect to the Trust.

The CODM has concluded that the Trust operates as a single operating segment

since the Trust has a single investment strategy as disclosed in its prospectus, against which the CODM assesses performance.

The financial information provided to and reviewed by the CODM is presented within the Trust’s financial statements.

Financial Highlights

The Trust is presenting the following financial highlights

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

January 10, 2024 (the initial share purchase date) through September 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.

The Trust is presenting the following financial

highlights related to investment performance and operations of a Share outstanding for the three months ended March 31, 2025 and

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.

Financial Highlights (Unaudited)

For the three months ended September 30, 2024 and

the period January 10, 2024 through September 30, 2024

For the three months ended March 31, 2025

and the period January 10, 2024 through March 31, 2024

Three Months Ended

September 30, 2024

March 31, 2025

March 31, 2024

Net Asset Value

14 unchanged sentences

(2) Not annualized

(3) Includes voluntary reimbursement of sponsor

fees of 0.00 % and 0.05 %

(3) Includes voluntary reimbursement of sponsor fees of 0.25 % for the period ended March 31, 2024

Subsequent Events

The Sponsor has evaluated all subsequent events through

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

The Sponsor has evaluated all subsequent

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

the financial statements.

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