What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2024-08-09 compared with 2024-05-09 · 38 added, 29 removed, 231 unchanged (22% of the section changed)

3 unchanged sentences

(Amounts in 000’s of US$, except for share and per share data)

March 31, 2024

June 30, 2024

December 31, 2023

Investments at fair value

Investment in bitcoin , at fair value (cost $ 9,066,924 and $ 0 )

Receivables from issuance of capital shares

Payable for purchases of bitcoin

Receivables from sales of bitcoin

Payable for capital shares redeemed

Total Liabilities

Commitments and Contingencies (Note 6)

Shares, no par value (unlimited shares authorized) 165,475,000 and 1 share(s) issued and outstanding at March 31, 2024 and December 31, 2023, respectively

Shares, no par value (unlimited shares authorized) 191,500,000 and 1 share(s) issued and outstanding at June 30, 2024 and December 31, 2023, respectively

Paid-in-capital

1 unchanged sentence

Total Net Assets

Net Asset Value per share ( 165,475,000 and 1 share(s) issued and outstanding as of March 31, 2024 and December 31, 2023, respectively)

Any values shown as $0 in the Statements of Assets and Liabilities may reflect amounts less than $500.

Net asset value per share ( 191,500,000 and 1 share(s) issued and outstanding as of June 30, 2024 and December 31, 2023, respectively)

Values shown as $— in the Statements of Assets and Liabilities may reflect amounts less than $500.

The accompanying notes are an integral part of these financial statements

2 unchanged sentences

(Amounts in 000’s of US$)

Three Months Ended March 31, 2024

Three Months Ended June 30,

Six Months Ended June 30,

Investment income:

9 unchanged sentences

Net Increase (Decrease) in Net Assets Resulting from Operations

Values shown as $— in the Statement of Operations may reflect amounts less than $500.

The accompanying notes are an integral part of these financial statements

2 unchanged sentences

(Amounts in 000’s of US$, except for shares)

Three Months Ended March 31, 2024

Three Months Ended June 30,

Six Months Ended June 30,

Net investment income (loss)

15 unchanged sentences

Shares outstanding, end of period

Values shown as $— in the Statement of Changes in Net Assets may reflect amounts less than $500.

The accompanying notes are an integral part of these financial statements

2 unchanged sentences

(Amounts in 000’s of US$)

Three Months Ended March 31, 2024

Six Months Ended June 30, 2024

Cash flows from operating activities:

13 unchanged sentences

Cash, end of the period

Supplemental information and non-cash financing activities

Non-cash issuances of capital shares

Non-cash redemptions of capital shares

Values shown as $— in the Statement of Cash Flows may reflect amounts less than $500.

The accompanying notes are an integral part of these financial statements

1 unchanged sentence

Schedule of Investment

March 31, 2024

June 30, 2024

(Amounts in 000’s of US$, except for quantity of bitcoin and percentages)

33 unchanged sentences

The Trust is not a registered investment company under the Investment Company Act of 1940.

In the opinion of the Trust, the accompanying unaudited condensed financial statements contain all adjustments, consisting of only normal recurring adjustments, necessary for the fair presentation of financial statements for the periods presented.

In the opinion of the Trust, the accompanying unaudited condensed financial statements contain all adjustments, consisting of only normal recurring adjustments, necessary for the fair statement of financial statements for the periods presented.

The statement of assets and liabilities at December 31, 2023, was derived from audited annual financial statements but does not contain all of the footnote disclosures from the annual financial statements.

41 unchanged sentences

Open tax years are those years that are open for examination by the relevant income taxing authority.

As of March 31, 2024, the 2023 tax year remains open for examination.

As of June 30, 2024 , the 2023 tax year remains open for examination.

There were no examinations in progress at period end.

Expenses are recorded as accrued.

Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.

Expense estimates are accrued in the period to which they relate.

Expenses included in the accompanying financial statements reflect the expenses of the Trust and do not include any expenses paid by the Sponsor or related entities outside of the Trust.

16 unchanged sentences

Fidelity Digital Asset Services, LLC, an affiliate of the Sponsor, serves as the Trust’s bitcoin custodian.

Under the Custodian Agreement, Fidelity Digital Asset Services, LLC is responsible for safekeeping all of the bitcoin owned by the Trust.

Under the Custodial Services Agreement, Fidelity Digital Asset Services, LLC is responsible for safekeeping all of the bitcoin owned by the Trust.

Fidelity Digital Asset Services, LLC was selected by the Sponsor.

10 unchanged sentences

All fees and expenses incurred by the Trust related to services performed by the Index Provider are borne by the Sponsor.

Pursuant to the terms of the Trust Agreement, dated December 28, 2023, the Sponsor entered into a Sponsor Agreement, dated December 14, 2023, whereby the Trust has contractually agreed to pay the Sponsor an annualized unified fee of 0.25% of the Trust's net assets.

The Trust’s “Bitcoin Holdings” is the quantity of the Trust’s bitcoin plus any cash or other assets held by the Trust represented in bitcoin as calculated using the Index price, less its liabilities (which include estimated accrued but unpaid fees and expenses) represented in bitcoin as calculated using the Index price.

The Sponsor Fee is paid by the Trust to the Sponsor as compensation for services performed under the Trust Agreement.

3 unchanged sentences

The Sponsor has also assumed all fees and expenses related to the organization and offering of the Trust and the Shares.

Effective January 9, 2024, the Trust and the Sponsor entered into a Fee Waiver Agreement in which the Sponsor agreed to waive the entirety of the Sponsor Fee (the “Waiver”).

The Waiver will continue for a period at least through July 31, 2024 (the “Initial Waiver Period”);

provided however, the Sponsor may elect to extend the Waiver beyond the Initial Waiver Period at its sole discretion.

Effective January 9, 2024, the Trust and the Sponsor entered into a Fee Waiver Agreement in which the Sponsor agreed to waive the entirety of the Sponsor Fee (the “Waiver”) through July 31, 2024.

The Trust may incur certain extraordinary, nonrecurring expenses that are not Sponsor Expenses, including, but not limited to, brokerage and transactions costs associated with the sale or transfer of bitcoin to pay the Trust’s expenses and liabilities, taxes and governmental charges, expenses and costs of any extraordinary services performed by the Sponsor (or any other service provider) on behalf of the Trust to protect the Trust or the interests of shareholders, any indemnification of the Custodian or other agents, service providers or counterparties of the Trust, extraordinary legal fees and expenses, including any legal fees and expenses incurred in connection with litigation, regulatory enforcement or investigation matters (collectively, “Extraordinary Expenses”).

The Administrator calculates the Sponsor Fee in respect of each day by reference to the Trust’s NAV as of that day.

The Sponsor Fee accrues daily and is payable monthly in bitcoin or cash.

The Administrator calculates the Sponsor Fee in respect of each day by reference to the prior day’s Bitcoin Holdings .

The Sponsor Fee accrues daily in bitcoin and is payable monthly in bitcoin or cash.

To the extent the Trust does not have cash readily available, the Sponsor will cause the transfer or sale of bitcoin in such quantity as may be necessary to permit the payment of Trust expenses and liabilities not assumed by the Sponsor.

2 unchanged sentences

The Trust’s assets recorded at fair value have been categorized based upon a fair value hierarchy as described in the Trust’s significant accounting policies in Note 2.

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

March 31, 2024

The following table presents information about the Trust’s assets measured at fair value as o f June 30, 2024:

June 30, 2024

(Amounts are in 000’s)

2 unchanged sentences

Geographic location as well as industry/strategy classification for all investments is detailed in the accompanying Schedule of Investment.

There were no purchases or transfers into or out of Level 3 during the period ended March 31, 2024.

The Trust is an exchange-traded product.

The Trust plans to continuously offer Baskets consisting of Shares to Authorized Participants.

The number of outstanding Shares is expected to increase and decrease from time to time as a result of the creation and redemption of Baskets.

The creation and redemption of Baskets requires the delivery to the Trust or the distribution by the Trust of the amount of bitcoin or cash represented by the Trust’s NAV of the Baskets being created or redeemed.

The total amount of bitcoin required for the creation of Baskets will be based on the combined net assets represented by the number of Baskets being created or redeemed.

The number of outstanding Shares is expected to increase and decrease from time to time as a result of the issuance and redemption of Baskets.

The issuance and redemption of Baskets requires the delivery to the Trust or the distribution by the Trust of the amount of cash represented by the Trust’s NAV of the Baskets being issued or redeemed.

The total amount of cash required for the issuance or redemption of Baskets will be based on the combined net assets represented by the number of Baskets being issued or redeemed.

Shares represent fractional undivided beneficial interests in and ownership of the Trust.

13 unchanged sentences

Financial Highlights

The Trust is presenting the following financial highlights related to investment performance and operations of a Share outstanding for the period January 11, 2024 (inception) through March 31, 2024.

The Trust is presenting the following financial highlights related to investment performance and operations of a Share outstanding for the period January 11, 2024 (inception) through June 30, 2024.

The total return, at net asset value 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 Exchange during the period.

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

For the period January 11, 2024 (inception) through March 31, 2024

For the period January 11, 2024 (inception) through June 30,

Per Share Activity

17 unchanged sentences

Subsequent Events

In preparation of the financial statements, management has evaluated the events and transactions subsequent to March 31, 2024, and determined that there are no subsequent events or transactions that would require adjustments to or disclosures in the Trust’s financial statements.

In preparation of the financial statements, management has evaluated the events and transactions subsequent to June 30, 2024, and determined that there are no subsequent events or transactions that would require adjustments to or disclosures in the Trust’s financial statements except as described below.

Waiver of Sponsor Fee

Effective July 31, 2024, the Fee Waiver Agreement expired.

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