What changed in this filing

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Item 5. Market for Registrant’s Common Equity

2026-03-31 compared with 2025-03-25 · 10 added, 456 removed, 4 unchanged (99% of the section changed)

Market for Registrant ’ s Common Equity, Related Stockholder Matters and Issuer

Purchase of Equity Securities

Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchase

of Equity Securities

principal trading market for the Trust’s Shares is the NYSE Arca.

The Shares trade under the symbol “DEFI.”

As of December 31, 2024, there were 140,000 Shares outstanding held by 43 holders of record.

registration statement on Form S-1 registering an unlimited number of Shares of the Fund (File number 333- 273364) was declared

effective on January 2, 2024.

The offering commenced thereafter and is continuing.

The offering proceeds were invested in bitcoin

futures contracts and cash and cash equivalents in accordance with the Fund’s investment objective stated in the prospectus.

of December 31, 2025, there were 120,000 Shares outstanding held by 3,203 DTC participating shareholders of record of the Trust.

Because most of the Trust’s Shares are held by brokers and other institutions on behalf of shareholders, we are unable to estimate

the total number of shareholders represented by these record holders.

Purchases of Equity Securities

Sponsor, the Trust or the Fund do not purchase Shares directly from shareholders.

In connection with its redemption of

baskets held by Authorized Purchasers, the Fund redeemed zero baskets (comprising zero shares) and 4 baskets (comprising

250,000 shares) for the three and twelve months ended December 31, 2024, respectively.

Monthly redemptions for the last three

months are detailed below.

Total Number of Shares

Average Price Per

10/1/24 to 10/31/24

11/1/24 to 11/30/24

12/1/24 to 12/31/24

Sponsor, the Trust and the Fund do not purchase Shares directly from shareholders.

In connection with the redemption of Baskets, the

Trust redeemed 40,000 Shares (four (4) Baskets) during the year ended December 31, 2025, and zero Shares (zero Baskets) during the three

months ended December 31, 2025, as set forth in the table below.

Number of Shares

the Trust nor the Fund has made, and there are no plans to make any cash distributions to shareholders.

Management ’ s Discussion and Analysis of Financial Condition and Results of Operations

Statement Regarding Forward-Looking Information

“Management’s Discussion and Analysis of Financial Condition and Results of Operations,” contains forward looking

statements by terminology such as “may,” “will,” “should,” “expect,” “plan,”

“anticipate,” “believe,” “estimate,” “predict,” “potential” or the

negative of these terms or other comparable terminology.

All statements (other than statements of historical fact) included in

this filing that address activities, events or developments that will or may occur in the future, including such matters as movements

in the commodities markets and indexes that track such movements, operations of the Fund, the Sponsor plans and references to

the future success of the Fund and other similar matters, are forward-looking statements.

These statements are only predictions.

Actual events or results may differ materially.

statements are based upon certain assumptions and analyses the Sponsor has made based on its perception of historical trends,

current conditions and expected future developments, as well as other factors appropriate in the circumstances.

Whether or not

actual results and developments will conform to the Sponsor’s expectations and predictions, however, is subject to a number

of risks and uncertainties, including the special considerations discussed in this Annual Report, general economic, market and

business conditions, changes in laws or regulations, including those concerning taxes, made by governmental authorities or regulatory

bodies, and other world economic and political developments.

Consequently, all the forward looking statements made in this filing

are qualified by these cautionary statements, and there can be no assurance that actual results or developments the Sponsor anticipates

will be realized or, even if substantially realized, that they will result in the expected consequences to, or have the expected

effects on, the operations of the Fund or the value of the Shares of the Fund.

description of the risks and uncertainties that could cause our actual results to differ materially from those described by the

forward-looking statements in this Annual Report appears in the section captioned “Risk Factors” and elsewhere in

this Annual Report.

Readers are cautioned not to place undue reliance on forward-looking statements because of the risks and uncertainties

related to them and to the risk factors.

Except as may be required by law, we do not undertake any obligation to update the forward-looking

statements contained in this Annual Report to reflect any new information or future events or circumstances or otherwise.

Commodities Trust I (“Trust”), a Delaware statutory trust organized on February 10, 2023, is a series trust currently

consisting of one series:

Hashdex Bitcoin ETF (f/k/a Hashdex Bitcoin Futures ETF) (“DEFI” or the “Fund”).

The Fund is a commodity pool.

The Fund issues shares of beneficial interest, called “Shares,” representing fractional

undivided beneficial interests in the Fund.

The Fund’s investment objective is for changes in the Shares’ NAV to reflect

the daily changes of the price of the Benchmark, less expenses from the Fund’s operations.

The Benchmark is designed to

track the price performance of bitcoin.

The Fund invests in bitcoin, bitcoin futures contracts (“Bitcoin Futures Contracts”)

listed on the Chicago Mercantile Exchange Inc.

(“CME”), and cash and cash equivalents.

Because the Fund’s investment

objective is to track the price of the Benchmark, changes in the price of the Shares may vary from changes in the spot price of

Trust and the Fund operate pursuant to the Trust’s Amended and Restated Declaration of Trust and Trust Agreement (the “Trust

Agreement”), dated March 10, 2023.

On January 2, 2024, the initial Form S-1 for DEFI was declared effective by the U.S.

Securities and Exchange Commission (“SEC”).

As noted below, the Fund is the successor to the Predecessor Fund (defined

below), which commenced operations in September 2022.

The current registration statement for DEFI was declared effective by the

SEC on January 2, 2024 and registered an indeterminate number of Shares.

BitGo Trust Company, Inc (the “Bitcoin Custodian”)

is the custodian for the Fund’s bitcoin holdings;

is the custodian for the Fund’s cash and cash

equivalents holdings (the “Cash Custodian” and together with the Bitcoin Custodian, the “Custodians”).

Fund is the successor and surviving entity from the merger (the “Merger”) of the Hashdex Bitcoin Futures ETF (the

“Predecessor Fund”) into the Fund.

The Predecessor Fund was a series of the Teucrium Commodity Trust (the “Predecessor

Trust”) sponsored by Teucrium Trading, LLC (“Prior Sponsor”).

The Merger closed on January 3, 2024.

In connection

with the Merger, the Predecessor Fund shareholders received one Share for each share of the Predecessor Fund they owned prior

to the Merger.

sponsor of the Trust is Tidal Investments LLC, a Delaware limited liability company (the “Sponsor”).

The principal

office of the Sponsor is Milwaukee, Wisconsin and the Trust is located at 234 West Florida Street, Suite 203, Milwaukee, Wisconsin

The Sponsor is registered as a commodity pool operator (“CPO”) with the Commodity Futures Trading Commission

(“CFTC”) and is a member of the National Futures Association (“NFA”).

The Fund intends to be treated as

a partnership for U.S.

federal income tax purposes.

The Sponsor has sponsored the Trust since 2023.

Sponsoring the Fund is the

Sponsor’s first experience in operating an exchange traded product that invests in crypto-currency futures or directly in

The Sponsor’s responsibilities are discussed below in the section entitled “ The Sponsor’s Operations.

investors will purchase and sell Shares through their broker-dealer, the Fund continuously offers Creation Baskets at their NAV

to certain financial institutions that have entered into an agreement with the Sponsor (“Authorized Purchasers”).

Trends and Developments Impacting the Fund and Trust

to Spot Bitcoin ETF

March 26, 2024, the Trust announced that the Fund would be permitted to have spot bitcoin holdings, and that it would track the

Benchmark effective March 27, 2024.

The Predecessor Fund’s name was the Hashdex Bitcoin Futures ETF, and the Fund’s

name is the Hashdex Bitcoin ETF.

Going forward and under normal market conditions, the Fund’s has a policy to maximize its

holdings of physical bitcoin such that it is expected that at least 95% of the Fund’s assets will be invested in spot bitcoin.

Up to 5% of the Fund’s remaining assets may be invested in CME-traded bitcoin futures contracts and in cash and cash equivalents.

in Commodity or Cryptocurrency Interests such as Futures Contracts will involve the Predecessor Fund entering into contractual

commitments to purchase or sell specific amounts of commodities or cryptocurrencies at a specified date in the future.

or face amount of the contracts is expected to significantly exceed the future cash requirements of the Predecessor Fund as the

Predecessor Fund intends to close out any open positions prior to the contractual expiration date.

As a result, the Predecessor

Fund’s market risk is the risk of loss arising from the decline in value of the contracts, not from the need to make delivery

under the contracts.

The Predecessor Fund considers the “fair value” of derivative instruments to be the unrealized

gain or loss on the contracts.

The market risk associated with the commitment by the Predecessor Fund to purchase a specific commodity

will be limited to the aggregate face amount of the contacts held.

exposure of the Predecessor Fund to market risk will depend on a number of factors including the markets for the specific commodity

or cryptocurrency, the volatility of interest rates and foreign exchange rates, the liquidity of the Commodity or Cryptocurrency

Specific Interests markets and the relationships among the contracts held by the Predecessor Fund.

exposure of the Fund to market risk will depend on a number of factors including the markets for the specific cryptocurrency,

the volatility of interest rates and foreign exchange rates, the liquidity of the Bitcoin Futures Contracts markets and the relationships

among the contracts held by the Fund.

the Fund enters into futures contracts, it will be exposed to the credit risk that the counterparty will not be able to meet its

For purposes of credit risk, the counterparty for the futures contracts traded on the CBOT, ICE and CME is the clearinghouse

associated with those exchanges.

In general, clearinghouses are backed by their members who may be required to share in the financial

burden resulting from the nonperformance of one of their members, which should significantly reduce credit risk.

exchanges are not backed by their clearinghouse members but may be backed by a consortium of banks or other financial institutions.

Unlike in the case of exchange traded futures contracts, the counterparty to an over the counter futures contract is generally

a single bank or other financial institution.

As a result, there will be greater counterparty credit risk in over the counter

transactions.

There can be no assurance that any counterparty, clearinghouse, or their financial backers will satisfy their obligations

Sponsor will attempt to manage the credit risk of the Fund by following certain trading limitations and policies.

In particular,

the Fund intends to post margin and collateral and/or hold liquid assets that will be equal to or greater than approximately the

face amount of the futures contracts it holds.

The Sponsor will implement procedures that will include, but will not be limited

to, executing and clearing trades and entering into over the counter transactions only with parties it deems creditworthy and/or

requiring the posting of collateral by such parties for the benefit of each Fund to limit its credit exposure.

CEA requires all FCMs, such as the Fund’s clearing brokers, to meet and maintain specified fitness and financial requirements,

to segregate customer funds from proprietary funds and account separately for all customers’ funds and positions, and to

maintain specified books and records open to inspection by the staff of the CFTC.

The CFTC has similar authority over introducing

brokers, or persons who solicit or accept orders for commodity interest trades but who do not accept margin deposits for the execution

The CEA authorizes the CFTC to regulate trading by FCMs and by their officers and directors, permits the CFTC to require

action by exchanges in the event of market emergencies, and establishes an administrative procedure under which customers may

institute complaints for damages arising from alleged violations of the CEA.

The CEA also gives the states powers to enforce its

provisions and the regulations of the CFTC.

November 14, 2013, the CFTC published final regulations that require enhanced customer protections, risk management programs,

internal monitoring and controls, capital and liquidity standards, customer disclosures and auditing and examination programs

The rules are intended to afford greater assurances to market participants that customer segregated funds and secured

amounts are protected, customers are provided with appropriate notice of the risks of futures trading and of the FCMs with which

they may choose to do business, FCMs are monitoring and managing risks in a robust manner, the capital and liquidity of FCMs are

strengthened to safeguard the continued operations and the auditing and examination programs of the CFTC and the SROs are monitoring

the activities of FCMs in a thorough manner.

and Phillip Capital serve as the Fund’s clearing brokers to execute futures contracts and provide other brokerage-related

of Operations

discussion below addresses the material changes in the results of operations for the year ended December 31, 2024 compared to

the same period in 2023.

expenses for the current and comparative period are presented both gross and net of any expenses waived or paid by the Prior Sponsor

that would have been incurred by the Fund (“expenses waived by the Prior Sponsor”).

For all expenses waived in 2023,

the Prior Sponsor is not entitled to reimbursement.

“Total expenses, net” is after the impact of any expenses waived

by the Prior Sponsor, are presented in the same manner as previously reported.

There is, therefore, no impact to or change in

the Net gain or Net loss in any period for the Trust and the Fund as a result of this change in presentation.

Fund is the successor and surviving entity from the Merger of the Predecessor Fund into the Fund.

The Predecessor Fund was a series

of the Teucrium Commodity Trust sponsored by Teucrium Trading, LLC.

The Predecessor Fund commenced operations on September 15,

The investment objective of both the Predecessor Fund and the Fund (for the period from January 3, 2024 to March 26, 2024)

was for changes in the Fund’s shares’ net asset value (“NAV”) to reflect the daily changes of the price

of the Hashdex U.S.

Bitcoin Futures Fund Benchmark (the “Prior Benchmark”), less expenses from such Fund’s operations.

The Prior Benchmark reflect the average of the closing settlement prices for the first to expire and second to expire bitcoin

futures contracts listed on the Chicago Mercantile Exchange (“CME”).

as of March 27, 2024, the Fund’s investment objective and strategy were revised to reflect that the Fund could have spot

bitcoin holdings.

That is, the Fund’s investment objective is for changes in the Shares’ NAV to reflect the daily

changes of the price of the Nasdaq Bitcoin Reference Price - Settlement (NQBTCS) (the “Benchmark”), less expenses

from the Fund’s operations.

Under normal market conditions, the Fund’s current policy is to maximize its holdings

of physical bitcoin such that it is expected that at least 95% of the Fund’s assets will be invested in spot bitcoin.

to 5% of the Fund’s remaining assets may be invested in CME-traded bitcoin futures contracts and in cash and cash equivalents.

data from September 15, 2022, to January 3, 2024, reflects the performance of the Predecessor Fund.

Performance from January 4,

2024, to March 26, 2024, reflects the Fund’s performance under its previous investment strategy, which involved investing

in futures contracts.

Performance data from March 27, 2024, onward reflect the Fund’s current investment strategy.

December 31, 2024, the Fund held 15,785 bitcoin with an asset fair value of $14,713,026.

December 31, 2024

December 31, 2023

Total Net Assets

Shares Outstanding

Net Asset Value per Share

Closing Price

net assets for the Fund increased year over year by 585%, driven by a combination of an increase in shares outstanding of 90,000

shares or 180% and an increase in the NAV per share of $55.26 or 209%.

The change in total net assets year over year was generally

due to the interconnected impact of two factors:

(i) a surge in net investors flow to the Fund, evidenced by the 180% increase

in shares outstanding, particularly following the approval of the spot bitcoin ETF in the USA;

and (ii) the Bitcoin price appreciation

from $42,265.19 per Bitcoin as of December 31, 2023, to $93,208.76 per Bitcoin as of December 31, 2024, representing an approximate

121% increase during the period January 1, 2024 to December 31, 2024.

Year ended December 31, 2024

Year ended December 31, 2023

Average daily total net assets

Net realized and unrealized loss on futures contracts

Interest income earned on cash equivalents

Net income (loss)

Weighted average share outstanding

Management Fees

Total gross fees and other expenses excluding management fees

Brokerage Commissions

Expenses waived by the Sponsor

Total gross expense ratio

Total expense ratio net of expenses waived by the Sponsor

Net investment income

Creation of Shares

Redemption of Shares

graph below shows the actual shares outstanding, total net assets (or AUM) and net asset value per share (NAV per share) for the

Fund from inception to December 31, 2024 and serves to illustrate the relative changes of these components.

in Commodity Interests subjects the Funds to the risks of the underlying commodity market, and this could result in substantial

fluctuations in the price of each Fund’s Shares.

Unlike mutual funds, the Funds currently are not expected to distribute

dividends to Shareholders.

Although this could change if interest rates continue to rise, and the assets of the Funds increase.

Investors may choose to use the Funds as a means of investing indirectly in the underlying commodity, and there are risks involved

in such investments.

Investors may choose to use the Funds as vehicles to hedge against the risk of loss, and there are risks

involved in hedging activities.

the period from January 1, 2024 through December 31, 2024, the average daily change in the NAV of each Fund was within plus/minus

10 percent of the average daily change in the Benchmark of the Fund, as stated in the prospectus for each Fund.

Distribution of Premiums and Discounts

frequency distribution charts below present information about the difference between the daily market price for Shares of each

Fund and the Fund’s reported Net Asset Value per share.

The amount that a Fund’s market price is above the reported

NAV is called the premium.

The amount that a Fund’s market price is below the reported NAV is called the discount.

price is determined using the midpoint between the highest bid and the lowest offer on the listing exchange, as of the time that

a Fund’s NAV is calculated (usually 4:00 p.m., (ET)).

The chart shows the number of trading days in which a Fund traded

within the premium/discount range indicated.

The charts are also available on the website for each Fund on a quarterly basis.

unit that is equal to 1/100th of 1% and is used to denote the change in a financial instrument.

THE PAST PERFORMANCE OF A FUND NOR THE PRIOR INDEX LEVELS AND CHANGES, POSITIVE OR NEGATIVE, SHOULD BE TAKEN AS AN INDICATION

OF THE FUND ’ S FUTURE PERFORMANCE

performance data above for the Hashdex Bitcoin futures ETF Fund represents past performance.

Past performance is not a guarantee

of future results.

Investment return and value of the Fund’s Shares will fluctuate so that an investor’s Shares, when

sold, may be worth more or less than their original cost.

Performance may be lower or higher than performance data quoted.

Balance Sheet Financing

Trust or Fund has no obligations, assets or liabilities which would be considered off-balance sheet arrangements as of December

Neither the Trust nor the Fund participates in transactions that create relationships with unconsolidated entities or

financial partnerships, often referred to as variable interest entities, which would have been established for the purpose of

facilitating off-balance sheet arrangements.

Neither the Trust nor the Fund have entered into any off-balance sheet financing

arrangements, established any special purpose entities, guaranteed any debt or commitments of other entities, or purchased any

non-financial assets.

and Capital Resources

Fund does not anticipate making use of borrowings or other lines of credit to meet its obligations.

The Fund meets its liquidity

needs in the normal course of business from the proceeds of the sale of its investments from the cash and cash equivalents that

it intends to hold, and/or from the fee waivers provided by the Sponsor.

The Fund’s liquidity needs include redeeming its

Shares, providing margin deposits for existing Bitcoin Futures Contracts or the purchase of additional Bitcoin Futures Contracts,

posting collateral for over-the-counter contracts, and paying expenses.

order to collateralize positions in Bitcoin Futures Contracts, a portion of the NAV of the Fund is held in cash and cash equivalents,

such as short-term Treasury Securities, demand deposits, money market funds and investments in commercial paper.

these investments may be posted as collateral in connection with Bitcoin Futures Contracts.

The percentage that cash and cash

equivalents bear to the shareholders’ equity of the Fund varies from period to period as the market values of the Bitcoin

Futures Contracts change.

the Fund’s ability to obtain exposure to Bitcoin Futures Contracts in accordance with its investment objective is disrupted

for any reason including, because of limited liquidity in the bitcoin futures market, a disruption to the bitcoin futures market,

or as a result of margin requirements or position limits imposed by the Fund’s futures commission merchants, the CME, or

the CFTC, the Fund may not be able to achieve its investment objective and may experience significant losses.

Any disruption in

the Fund’s ability to obtain exposure to Bitcoin Futures Contracts will cause the Fund’s performance to deviate from

the performance of Bitcoin Futures Contracts.

In addition, the Fund might grow to a size where a lack of liquidity in the futures

market meant that the Fund could not sell enough futures contracts to honor redemption requests.

market disruption, such as a government taking regulatory or other actions that disrupt the market in bitcoin, can also make it

difficult to liquidate a position.

Unexpected market illiquidity may cause major losses to investors at any time or from time

In addition, the Fund does not intend at this time to establish a credit facility, which would provide an additional

source of liquidity, but instead will rely only on the cash and cash equivalents that it holds to meet its liquidity needs.

anticipated value of the positions in Bitcoin Futures Contracts that the Sponsor will acquire or enter into for the Fund increases

the risk of illiquidity.

Because Bitcoin Futures Contracts may be illiquid, the Fund’s holdings may be more difficult to

liquidate at favorable prices in periods of illiquid markets and losses may be incurred during the period in which positions are

being liquidated.

Accounting Estimates

Trust’s critical accounting policies for the Fund is as follows:

Basis of Presentation

of the financial statements and related disclosures in conformity with U.S.

generally accepted accounting principles (“GAAP”)

requires the application of appropriate accounting rules and guidance, as well as the use of estimates, and requires management

to make estimates and assumptions that affect the reported amounts of assets and liabilities, revenue and expense and related

disclosure of contingent assets and liabilities during the reporting period of the combined financial statements and accompanying

The Trust’s application of these policies involves judgments and actual results may differ from the estimates used.

Cryptocurrency

Derivative Transactions

Sponsor has determined that the valuation of cryptocurrency interests that are not traded on a U.S.

or internationally recognized

futures exchange (such as swaps and other over the counter contracts) involves a critical accounting policy.

The values which

are used by the Fund for futures contracts will be provided by the broker who will use market prices when available, while over

the counter contracts will be valued based on the present value of estimated future cash flows that would be received from or

paid to a third party in settlement of these derivative contracts prior to their delivery date.

Values will be determined on a

Cryptocurrency

futures contracts held by the Fund are recorded on the trade date.

All such transactions are recorded on the identified cost basis

and marked to market daily.

Unrealized appreciation or depreciation on commodity or cryptocurrency futures contracts are reflected

in the statement of operations as the difference between the original contract amount and the fair market value as of the last

business day of the year or as of the last date of the financial statements.

Changes in the appreciation or depreciation between

periods are reflected in the statement of operations.

Interest on cash equivalents and deposits are recognized on an accrual basis.

The Fund earns interest on funds held at the custodian or other financial institutions at prevailing market rates for such investments.

and cash Equivalents

and cash equivalents are cash held at financial institutions in demand-deposit accounts or highly liquid investments with original

maturity dates of three months or less at inception.

The Fund reports cash equivalents in the statements of assets and liabilities

at market value, or at carrying amounts that approximate fair value, because of their highly liquid nature and short-term maturities.

The Fund has a substantial portion of assets on deposit with banks.

Assets deposited with financial institutions may, at times,

exceed federally insured limits.

Value - Definition and Hierarchy

accordance with GAAP, fair value is defined as the price that would be received to sell an asset or paid to transfer a liability

(i.e., the “exit price”) in an orderly transaction between market participants at the measurement date.

determining fair value, the Fund uses various valuation approaches.

In accordance with GAAP, a fair value hierarchy for inputs

is used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring

that the most observable inputs be used when available.

Observable inputs are those that market participants would use in pricing

the asset or liability based on market data obtained from sources independent of the Fund.

Unobservable inputs reflect the Fund’s

assumptions about the inputs market participants would use in pricing the asset or liability developed based on the best information

available in the circumstances.

The fair value hierarchy is categorized into three levels based on the inputs as follows:

1 – Valuations

based on unadjusted quoted prices in active markets for identical assets or liabilities

that the Fund has the ability to access.

Valuation adjustments and block discounts are

not applied to Level 1 financial instruments.

Since valuations are based on quoted prices

that are readily and regularly available in an active market, valuation of these financial

instruments does not entail a significant degree of judgment.

2 – Valuations

based on quoted prices in markets that are not active or for which all significant inputs

are observable, either directly or indirectly.

3 – Valuations

based on inputs that are unobservable and significant to the overall fair value measurement.

availability of valuation techniques and observable inputs can vary from financial instrument to financial instrument and is affected

by a wide variety of factors including, the type of financial instrument, whether the financial instrument is new and not yet

established in the marketplace, and other characteristics particular to the transaction.

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.

Those estimated values do not necessarily represent the amounts that may be ultimately realized due to the occurrence of future

circumstances that cannot be reasonably determined.

Because of the inherent uncertainty of valuation, those estimated values may

be materially higher or lower than the values that would have been used had a ready market for the financial instruments existed.

Accordingly, the degree of judgment exercised by the Fund in determining fair value is greatest for financial instruments categorized

In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy.

In such cases, for disclosure purposes, the level in the fair value hierarchy, within which the fair value measurement in its

entirety falls, is determined based on the lowest level input that is significant to the fair value measurement.

Fund and records derivative activities at fair value.

Gains and losses from derivative contracts are included in the statement

of operations.

Derivative contracts include futures contracts related to cryptocurrency prices.

Futures, which are listed on a

national securities exchange, such as the CME, or reported on another national market, are generally categorized in Level 1 of

the fair value hierarchy.

OTC derivatives contracts (such as forward and swap contracts) which may be valued using models, depending

on whether significant inputs are observable or unobservable, are categorized in Levels 2 or 3 of the fair value hierarchy.

Fund recognizes brokerage commissions on a full trade basis.

Derivative Counterpar ty Ma rg in

is the minimum amount of funds that must be deposited by a cryptocurrency interest trader with the trader’s broker to initiate

and maintain an open position in futures contracts.

A margin deposit acts to assure the trader’s performance of the futures

contracts purchased or sold.

Futures contracts are customarily bought and sold on initial margin that represents a small percentage

of the aggregate purchase or sales price of the contract.

Because of such low margin requirements, price fluctuations occurring

in the futures markets may create profits and losses that, in relation to the amount invested, are greater than customary in other

forms of investment or speculation.

As discussed below, adverse price changes in the futures contract may result in margin requirements

that greatly exceed the initial margin.

In addition, the amount of margin required in connection with a particular futures contract

may be modified from time to time by the exchange during the term of the contract.

Brokerage firms, such as the Fund’s clearing

brokers, carrying accounts for traders in commodity or cryptocurrency interest contracts generally require higher amounts of margin

as a matter of policy to further protect themselves.

Over the counter trading generally involves the extension of credit between

counterparties, so the counterparties may agree to require the posting of collateral by one or both parties to address credit

a trader purchases an option, there is no margin requirement;

however, the option premium must be paid in full.

When a trader

sells an option, on the other hand, he or she is required to deposit margin in an amount determined by the margin requirements

established for the underlying interest and, in addition, an amount substantially equal to the current premium for the option.

The margin requirements imposed on the selling of options, although adjusted to reflect the probability that out of the money

options will not be exercised, can in fact be higher than those imposed in dealing in the futures markets directly.

margin requirements apply to spreads and conversions, which are complex trading strategies in which a trader acquires a mixture

of options positions and positions in the underlying interest.

or “maintenance” margin requirements are computed each day by a trader’s clearing broker.

When the market value

of a particular open futures contract changes to a point where the margin on deposit does not satisfy maintenance margin requirements,

a margin call is made by the broker.

If the margin call is not met within a reasonable time, the broker may close out the trader’s

With respect to the Fund’s trading, the Fund (and not its shareholders personally) are subject to margin calls.

many major U.S.

exchanges have passed certain cross margining arrangements involving procedures pursuant to which the futures

and options positions held in an account would, in the case of some accounts, be aggregated, and margin requirements would be

assessed on a portfolio basis, measuring the total risk of the combined positions.

Fee Allocation of Expenses

Sponsor is responsible for investing the assets of the Fund in accordance with the objectives and policies of the Fund.

Fund pays the Sponsor a Management Fee, monthly in arrears, in an amount equal to 0.25% per annum of the daily NAV of the Fund.

The Management Fee is paid in consideration of the Sponsor’s services related to the management of the Fund’s business

and affairs, including the provision of commodity futures trading advisory services.

Creation with cash may cause the Fund to

incur certain costs including brokerage commissions and redemptions of creation units with cash may result in the recognition

of gains or losses that the Fund might not have incurred if it had made redemptions in-kind.

The Fund pays all of its respective

brokerage commissions, including applicable exchange fees, NFA fees and give-up fees, and other transaction related fees and expenses

charged in connection with trading activities for the Fund’s investments in CFTC regulated investments.

The Fund also pays

all fees and commissions related to the EFP transactions for the sale and purchase of spot bitcoin, including any bitcoin transaction

fees for on-chain transfers of bitcoin.

The Fund bears other transaction costs related to the FCM capital requirements on a monthly

The Sponsor pays all of the routine operational, administrative and other ordinary expenses of the Fund, generally as determined

by the Sponsor, including but not limited to, fees and expenses of the Administrator, Sub-Administrator, Custodians, Marketing

Agent, Transfer Agent, licensors, accounting and audit fees and expenses, tax preparation expenses, legal fees, ongoing SEC registration

fees, individual Schedule K-1 preparation and mailing fees, and report preparation and mailing expenses.

The Fund pays all of

its non-recurring and unusual fees and expenses, if any, as determined by the Sponsor.

Non-recurring and unusual fees and expenses

are unexpected or unusual in nature, such as legal claims and liabilities and litigation costs or indemnification or other unanticipated

Extraordinary fees and expenses also include material expenses which are not currently anticipated obligations of the

Routine operational, administrative and other ordinary expenses are not deemed extraordinary expenses.

federal income tax purposes, the Fund will be treated as a partnership.

Therefore, the Fund does not record a provision for

income taxes because the partners report their share of the Fund’s income or loss on their income tax returns.

The financial

statements reflect the Fund’s transactions without adjustment, if any, required for income tax purposes.

Quantitative and Qualitative Disclosures about Market Risks

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-K

Item 5. Market for Registrant’s Common Equity