Item 8. Financial Statements and Supplementary Data
Item 8. Financial Statements and Supplementary Data
The following summarized (unaudited) quarterly financial information presents the results of operations and other data for the period January 11, 2024 (Date of commencement of operations) through March 31, 2024:
For the period
January 11, 2024
(Date of
commencement
of operations)
through
March 31, 2024*
Net investment income (loss)
$
(21
)
Net realized and change in unrealized gain (loss)
$
61,220,195
Net income (loss)
$
61,220,174
Net increase (decrease) in Principal Market NAV^
$
15.63
*
On December 15, 2023, the Seed Capital Investor purchased 4,000 Shares at a per-Share price equal to $25.00 (the “Initial Seed Shares”). Delivery of the Initial Seed Shares was made on December 15, 2023. Total proceeds to the Fund from the sale of the Initial Seed Shares were $100,000. On January 8, 2024, the Initial Seed Shares were redeemed for $100,000 and the Seed Capital Investor purchased two creation units in a cash transaction comprised of a total of 100,000 Shares at a per-Share price based on 29.00000000 bitcoins per Creation Unit (or 0.00058 bitcoins per Share), for a total of 58.00000000 bitcoins (the “Seed Creation Units”). The cash proceeds to the Fund from the sale of the Seed Creation Units were used by the Fund to purchase 58.00000000 bitcoins at the price of $44,973.58 per bitcoin on January 8, 2024. The transaction and other costs incurred in connection with the Seed Creation Units were paid by the Seed Capital Investor and not borne by the Fund. Thus, the ultimate total proceeds to the Fund from the sale of the Seed Creation Units were $2,608,467.81 (an amount representing 58.00000000 bitcoins). The Shares were first listed for trading and the Fund commenced operations on January 11, 2024.
^
The Fund’s financial statements are prepared in accordance GAAP for financial information. Bitcoin is priced based on the Lukka Prime Price at 11:59:59PM ET. Accordingly, certain adjustments were made to the net assets of the Fund at 01/11/2024 and at 03/31/2024 for financial reporting purposes. The net asset values calculated for transactions with Authorized Participants would differ from the net asset values reported here.
Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
There have been no changes in accountants and no disagreements with accountants on any matter of accounting principles or practices or financial statement disclosures during the fiscal period ended March 31, 2024.
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