What changed in this filing

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Item 2. Management’s Discussion and Analysis

2025-08-13 compared with 2025-05-15 · 74 added, 46 removed, 184 unchanged (39% of the section changed)

48 unchanged sentences

Overview of the Trust

CoinShares Valkyrie Bitcoin Fund, formerly

CoinShares Bitcoin ETF, formerly CoinShares

Valkyrie Bitcoin Fund (the “Trust”), is a Delaware statutory trust formed on January 20, 2021.

The Trust issues common

units of beneficial interest (“Shares”), which represent units of fractional undivided beneficial interest in and ownership

of the Trust.

The Shares of the Trust are listed on The Nasdaq Stock Market, LLC (“Nasdaq” or the “Exchange”).

CoinShares Co., a Delaware corporation, is the sponsor of the Trust (the “Sponsor”), and CSC Delaware Trust Company

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

The operations of the Trust are governed by the Amended and Restated Trust

Agreement of the Trust, among the Trustee, the Sponsor, and the shareholders from time to time thereunder (the “Shareholders”),

as may be amended from time to time (the “Trust Agreement”).

On July 25, 2025, the

Trust filed a Certificate of Amendment to its Certificate of Trust to change its name from CoinShares Valkyrie Bitcoin Fund to

CoinShares Bitcoin ETF.

The Trust issues common units of beneficial interest (“Shares”), which represent units of fractional

undivided beneficial interest in and ownership of the Trust.

The Shares of the Trust are listed on The Nasdaq Stock Market, LLC

(“Nasdaq” or the “Exchange”).

CoinShares Co., a Delaware corporation, is the sponsor of the Trust (the

“Sponsor”), and CSC Delaware Trust Company is the trustee of the Trust (the “Trustee”).

The operations

of the Trust are governed by the Amended and Restated Trust Agreement of the Trust, among the Trustee, the Sponsor, and the shareholders

from time to time thereunder (the “Shareholders”), as may be amended from time to time (the “Trust Agreement”).

The Trust is an exchange-traded product.

When the Trust

sells or redeems its Shares, it will do so in blocks of 5,000 Shares (a “Basket”) based on the quantity of bitcoin

attributable to each Share of the Trust (net of accrued but unpaid expenses and liabilities).

registered broker-dealers that have previously entered into an agreement with the Sponsor governing the terms and conditions of

such issuance (such broker-dealers, the “Authorized Participants”), can place orders to receive Baskets in exchange

Baskets may be redeemed by the Trust in exchange for the cash proceeds from selling the amount of bitcoin corresponding

to their redemption value.

When the Trust sells or redeems its Shares, it will do so in blocks of 5,000 Shares (a

“Basket”) based on the quantity of bitcoin attributable to each Share of the Trust (net of accrued but unpaid expenses

and liabilities).

Only registered broker-dealers that have previously entered into an agreement

with the Sponsor governing the terms and conditions of such issuance (such broker-dealers, the “Authorized Participants”),

can place orders to receive Baskets in exchange for cash.

Baskets may be redeemed by the Trust in exchange for the cash proceeds

from selling the amount of bitcoin corresponding to their redemption value.

Shares of the Trust trade on Nasdaq under

the ticker symbol BRRR.

The Sponsor maintains a website (www.valkyrieinvest.com/BRRR),

The Sponsor maintains a website (coinshares.com/us/etf/brrr/),

through which the Trust’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and amendments

41 unchanged sentences

Administrator, under UK BMR.

Results of Operations for the Three Months Ended March 31,

2025 and the period ended March 31, 2024

Results of Operations

The Three Months Ended June 30, 2025 and 2024

The Trust’s net asset value increased

from $480,386,204 at March 31, 2025, to $625,787,170 at June 30, 2025.

The change in the Trust’s net assets resulted from

an increase in outstanding Shares, which rose from 20,450,000 at March 31, 2025, to 20,705,000 at June 30, 2025, as a result of

1,645,000 Shares being created and 1,390,000 Shares being redeemed during the quarter, and an increase in the value of bitcoin,

which appreciated 28.7% from $83,057 at March 31, 2025, to $106,930 at June 30, 2025.

The net asset value per Share increased 28.7%

from $23.49 at March 31, 2025, to $30.22 at June 30, 2025.

The net asset value per Share of $31.54

at May 22, 2025 was the highest during the quarter, compared with a low of $21.70 at April 8, 2025.

The increase in net assets from operations

for the three months ended June 30, 2025 was $141,141,457, resulting from an increase in unrealized gain on the Trust’s bitcoin

investment of $130,366,125, realized gains on the disposition of bitcoin of $11,139,128, and Sponsor Fees incurred of $363,796.

The Trust’s net asset value decreased

from $826,115,990 at December 31, 2024, to $480,386,204 at March 31, 2025.

The change in the Trust’s net assets resulted

from a decrease in outstanding Shares, which fell from 31,260,000 at December 31, 2024, to 20,450,000 at March 31, 2025, as a result

of 610,000 Shares being created and 11,420,000 Shares being redeemed during the quarter, and a decrease in the value of bitcoin,

which depreciated 11.1% from $93,381 at December 31, 2024, to $83,057 at March 31, 2025.

The net asset value per Share decreased

11.1% from $26.43 at December 31, 2024 to $23.49 at March 31, 2025.

from $543,197,988 at March 31, 2024, to $518,313,439 at June 30, 2024.

The change in the Trust’s net assets resulted from

an increase in outstanding Shares, which grew from 27,075,000 at March 31, 2024, to 29,545,000 at June 30, 2024, as a result of

4,960,000 Shares (992 Baskets) being created and 2,490,000 Shares (498 Baskets) being redeemed during the quarter, and a decrease

in the value of bitcoin, which depreciated 12.5% from $70,764 at March 31, 2024, to $61,910 at June 30, 2024.

The net asset

value per Share decreased 12.6% from $20.06 at March 31, 2024 to $17.54 at June 30, 2024.

The net asset value per Share of $20.36

at January 21, 2025 was the highest during the quarter, compared with a low of $22.21 at March 10, 2025.

at April 8, 2024 was the highest during the quarter, compared with a low of $16.42 at May 1, 2024.

The decrease in net assets from operations

for the quarter ended March 31, 2025 was $76,612,819, resulting from a decrease in unrealized gain on the Trust’s bitcoin

for the quarter ended June 30, 2024 was $69,741,963, resulting from a decrease in unrealized gain on the Trust’s bitcoin

investment of $82,428,503, realized gains on the disposition of bitcoin of $12,977,021, and Sponsor Fees incurred of $290,481.

The Trust’s net asset value increased

from $0 at December 31, 2023 to $543,197,988 at March 31, 2024.

The Six Months Ended June 30, 2025 and 2024

The Trust’s net asset value decreased

from $826,115,990 at December 31, 2024, to $625,787,170 at June 30, 2025.

The change in the Trust’s net assets resulted from

a decrease in outstanding Shares, which fell from 31,260,000 at December 31, 2024, to 20,705,000 at June 30, 2025, and an increase

in the value of bitcoin, which appreciated 14.5% from $93,381 at December 31, 2024, to $106,930 at June 30, 2025.

The net asset

value per Share increased 14.3% from $26.43 at December 31, 2024, to $30.22 at June 30, 2025.

The increase in net assets from operations

for the six months ended June 30, 2025 was $64,528,638, resulting from a decrease in unrealized gain on the Trust’s bitcoin

investment of $51,464,017, realized gains on the disposition of bitcoin of $116,817,004, and Sponsor Fees incurred of $824,349.

The Trust’s net asset value decreased

from $0 at December 31, 2023, to $518,313,439 at June 30, 2024.

The change in the Trust’s net assets resulted from an increase

in outstanding Shares, which grew from 0 at December 31, 2023 to 27,075,000 at March 31, 2024 as a result of 27,080,000 Shares

being created (5,416 Baskets) and 5,000 Shares (1 Basket) being redeemed during the quarter, and an increase in the value

of bitcoin, which appreciated 54.3% from $45,823 at January 10, 2024, the date of the Trust’s initial bitcoin purchase,

to $70,764 at March 31, 2024.

The net asset value per Share increased

54.3% from $13.00 at January 10, 2024 to $20.06 at March 31, 2023.

The net asset value per Share of $20.73

at March 13, 2024 was the highest during the quarter, compared with a low of $11.12 at January 23, 2024.

in outstanding Shares, which grew from 0 at December 31, 2023, to 29,545,000 at June 30, 2024, and an increase in the value of

bitcoin, which appreciated 35.0% from $ 45,853 at January 10, 2024 (the

initial share purchase date) , to $61,910 at June 30, 2024.

The net asset value per Share increased 34.9% from $13.00 at

January 10, 2024 (the initial share purchase date), to $17.54 at June

The increase in net assets from operations

for the quarter ended March 31, 2021 was $90,673,839, resulting from a change in unrealized gain on the Trust’s bitcoin investment.

for the six months ended June 30, 2024 was $20,931,876, resulting from an increase in unrealized gain on the Trust’s bitcoin

investment of $8,245,336, realized gains on the disposition of bitcoin of $12,977,021, and Sponsor Fees incurred of $290,481.

Cash Resources and Liquidity

67 unchanged sentences

for the purpose of calculating fair value for the creation of quarterly and annual financial statements.

The Sponsor has developed

a process for identifying a principal market, as prescribed in ASC 820-10, which outlines the application of fair value accounting.

The process begins by identifying publicly available, well-established and reputable bitcoin trading venues (Exchange Markets,

as defined in the FASB ASC Master Glossary), which are selected by the Sponsor and its affiliates at their sole discretion.

Sponsor then identifies the principal market for bitcoin during that period and uses the price for bitcoin from that venue at

4:00 ET as the principal market price.

The Sponsor has

developed a process for identifying a principal market, as prescribed in ASC 820-10, which outlines the application of fair

value accounting.

The process begins by identifying publicly available, well-established and reputable bitcoin trading venues

(Exchange Markets, as defined in the FASB ASC Master Glossary), which are selected by the Sponsor and its affiliates at their

sole discretion.

The Sponsor then identifies the principal market for bitcoin during that period and uses the price for

bitcoin from that venue as of end of day Eastern time as the principal market price.

Investment Company Considerations

12 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 2. Management’s Discussion and Analysis