Grayscale Bitcoin Trust ETF 10-K

Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations The following discussion and analysis of our financial condition and results of operations should be read together with, and is qualified in its entirety by reference to, our audited financial statements and related notes included elsewhere in this Annual Report, which have been prepared in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”). The following discussion may contain forward-looking statements based on assumptions we believe to be reasonable. Our actual results could differ materially from those discussed in these forward-looking statements. Factors that could cause or contribute to these differences include, but are not limited to, those discussed below and elsewhere in this Annual Report, particularly in “Item 1A. Risk Factors” and “Forward-Looking Statements.” Trust Overview The Trust is a passive entity that is managed and administered by the Sponsor and does not have any officers, directors or employees. The Trust holds Bitcoins and, from time to time on a periodic basis, issues Creation Baskets in exchange for deposits of Bitcoins. As a passive investment vehicle, the Trust’s investment objective is for the value of the Shares (based on Bitcoin per Share) to reflect the value of Bitcoins held by the Trust, determined by reference to the Index Price, less the Trust’s expenses and other liabilities. While an investment in the Shares is not a direct investment in Bitcoin, the Shares are designed to provide investors with a cost-effective and convenient way to gain investment exposure to Bitcoin. The Trust is not managed like a business corporation or an active investment vehicle. As of December 31, 2021 2020 2019 Number of Shares authorized Unlimited Unlimited Unlimited Number of Shares outstanding 692,370,100 638,906,600 269,445,300 Number of Shares freely tradable(1) 645,203,448 400,095,116 204,546,060 Number of beneficial holders owning at least 100 Shares(2) 94 415 145 Number of holders of record(2) 94 415 145 (1) Includes the total number of Shares that are not restricted securities as such term is defined under Rule 144. (2) Includes Cede & Co. as nominee for DTC for the Shares traded on OTCQX. Therefore, this number does not include the individual holders who have bought/sold Shares on OTCQX or transferred their eligible Shares to their brokerage accounts. Critical Accounting Policies and Estimates Investment Transactions and Revenue Recognition The Trust considers investment transactions to be the receipt of Bitcoin for Share creations and the delivery of Bitcoin for Share redemptions or for payment of expenses in Bitcoin. At this time, the Trust is not accepting redemption requests from shareholders. The Trust records its investment transactions on a trade date basis and changes in fair value are reflected as net change in unrealized appreciation or depreciation on investments. Realized gains and losses are calculated using the specific identification method. Realized gains and losses are recognized in connection with transactions including settling obligations for the Sponsor’s Fee in Bitcoin. Principal Market and Fair Value Determination To determine which market is the Trust’s principal market (or in the absence of a principal market, the most advantageous market) for purposes of calculating the Trust’s NAV, the Trust follows Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 820-10, which outlines the application of fair value accounting. ASC 820-10 determines fair value to be the price that would be received for Bitcoin in a current sale, which assumes an orderly transaction between market participants on the measurement date. ASC 820-10 requires the Trust to assume that Bitcoin is sold in its principal market to market participants or, in the absence of a principal market, the most advantageous market. Market participants are defined as buyers and sellers in the principal or most advantageous market that are independent, knowledgeable, and willing and able to transact. The Trust only receives Bitcoin from the Authorized Participant and does not itself transact on any Digital Asset Markets. 70 Table of Contents Therefore, the Trust looks to the Authorized Participant when assessing entity-specific and market-based volume and level of activity for Digital Asset Markets. The Authorized Participant transacts in a Brokered Market, a Dealer Market, Principal-to-Principal Markets and Exchange Markets, each as defined in the FASB ASC Master Glossary. The Authorized Participant, as a related party of the Sponsor, provides information about the Digital Asset Markets on which it transacts to the Trust. In determining which of the eligible Digital Asset Markets is the Trust’s principal market, the Trust reviews these criteria in the following order: First, the Trust reviews a list of Digital Asset Markets and excludes any Digital Asset Markets that are non-accessible to the Trust and the Authorized Participant(s). The Trust or the Authorized Participant does not have access to Digital Asset Exchanges that do not have a BitLicense and has access only to non-Digital Asset Exchange Markets that the Authorized Participant reasonably believes are operating in compliance with applicable law, including federal and state licensing requirements, based upon information and assurances provided to it by each market. • Second, the Trust sorts the remaining Digital Asset Markets from high to low by entity-specific and market-based volume and activity of Bitcoin traded on each Digital Asset Market in the trailing twelve months. • Third, the Trust then reviews intra-day pricing fluctuations and the degree of variances in price on Digital Asset Markets to identify any material notable variances that may impact the volume or price information of a particular Digital Asset Market. • Fourth, the Trust then selects a Digital Asset Market as its principal market based on the highest market volume, activity and price stability in comparison to the other Digital Asset Markets on the list. Based on information reasonably available to the Trust, Exchange Markets have the greatest volume and level of activity for the asset. The Trust therefore looks to accessible Exchange Markets as opposed to the Brokered Market, Dealer Market and Principal-to-Principal Markets to determine its principal market. As a result of the aforementioned analysis, an Exchange Market has been selected as the Trust’s principal market. The Trust determines its principal market (or in the absence of a principal market the most advantageous market) annually and conducts a quarterly analysis to determine (i) if there have been recent changes to each Digital Asset Market’s trading volume and level of activity in the trailing twelve months, (ii) if any Digital Asset Markets have developed that the Trust has access to, or (iii) if recent changes to each Digital Asset Market’s price stability have occurred that would materially impact the selection of the principal market and necessitate a change in the Trust’s determination of its principal market. The cost basis of the investment in Bitcoin recorded by the Trust for financial reporting purposes is the fair value of Bitcoin at the time of transfer. The cost basis recorded by the Trust may differ from proceeds collected by the Authorized Participant from the sale of the corresponding Shares to investors. Investment Company Considerations The Trust is an investment company for GAAP purposes and follows accounting and reporting guidance in accordance with the FASB ASC Topic 946, Financial Services – Investment Companies . The Trust uses fair value as its method of accounting for Bitcoin in accordance with its classification as an investment company for accounting purposes. The Trust is not a registered investment company under the Investment Company Act of 1940. GAAP requires management to make estimates and assumptions that affect the reported amounts in the financial statements and accompanying notes. Actual results could differ from those estimates and these differences could be material. Review of Financial Results Financial Highlights for the Years ended December 31, 2021, 2020 and 2019 (All amounts in the following table and the subsequent paragraphs, except Share, per Share, Bitcoin and price of Bitcoin amounts, are in thousands) 2021 2020 2019 Net realized and unrealized gain on investment in Bitcoin $ 10,569,768 $ 11,196,384 $ 686,551 Net increase in net assets resulting from operations $ 9,954,348 $ 11,102,880 $ 651,821 Net assets $ 29,576,053 $ 17,716,478 $ 1,866,218 Net realized and unrealized gain on investment in Bitcoin for the year ended December 31, 2021 was $10,569,768 which includes a realized gain of $470,168 on the transfer of Bitcoins to pay the Sponsor’s Fee and net change in unrealized appreciation on investment in Bitcoin of $10,099,600. Net realized and unrealized gain on investment in Bitcoin for the period was driven by Bitcoin price appreciation from $29,185.05 per Bitcoin as of December 31, 2020 to $45,867.86 per Bitcoin as of December 31, 2021. Net increase in net assets resulting from operations was $9,954,348 for the year ended December 31, 2021, which consisted of the net realized and unrealized gain on investment in Bitcoin, less the Sponsor’s Fee of $615,420. Net assets increased to $29,576,053 at December 31, 2021, a 67% increase for the period. The increase in net assets resulted from the aforementioned Bitcoin price appreciation and the contribution of approximately 50,739 Bitcoin with a value of $1,905,227 to the Trust in connection with Share creations during the period, partially offset by the withdrawal of approximately 12,968 Bitcoin to pay the foregoing Sponsor’s Fee. 71 Table of Contents Net realized and unrealized gain on investment in Bitcoin for the year ended December 31, 2020 was $11,196,384 which includes a realized gain of $50,335 on the transfer of Bitcoins to pay the Sponsor’s Fee and net change in unrealized appreciation on investment in Bitcoin of $11,146,049. Net realized and unrealized gain on investment in Bitcoin for the period was driven by Bitcoin price appreciation from $7,145.00 per Bitcoin as of December 31, 2019 to $29,185.05 per Bitcoin as of December 31, 2020. Net increase in net assets resulting from operations was $11,102,880 for the year ended December 31, 2020, which consisted of the net realized and unrealized gain on investment in Bitcoin, less the Sponsor’s Fee of $93,504. Net assets increased to $17,716,478 at December 31, 2020, a 849% increase for the period. The increase in net assets resulted from the aforementioned Bitcoin price appreciation and the contribution of approximately 353,646 Bitcoin with a value of $4,747,380 to the Trust in connection with Share creations during the period, partially offset by the withdrawal of approximately 7,799 Bitcoin to pay the foregoing Sponsor’s Fee. Net realized and unrealized gain on investment in Bitcoin for the year ended December 31, 2019 was $686,551 which includes a realized gain of $23,305 on the transfer of Bitcoins to pay the Sponsor’s Fee and net change in unrealized appreciation on investment in Bitcoin of $663,246. Net realized and unrealized gain on investment in Bitcoin for the period was driven by Bitcoin price appreciation from $3,679.42 per Bitcoin as of December 31, 2018 to $7,145.00 per Bitcoin as of December 31, 2019. Net increase in net assets resulting from operations was $651,821 for the year ended December 31, 2019, which consisted of the net realized and unrealized gain on investment in Bitcoin, less the Sponsor’s Fee of $34,730. Net assets increased to $1,866,218 at December 31, 2019, a 148% increase for the period. The increase in net assets resulted from the aforementioned Bitcoin price appreciation and the contribution of approximately 61,556 Bitcoin with a value of $462,775 to the Trust in connection with Share creations during the year, partially offset by the withdrawal of approximately 4,641 Bitcoin to pay the foregoing Sponsor’s Fee. Cash Resources and Liquidity The Trust has not had a cash balance at any time since inception. When selling Bitcoins, Incidental Rights and/or IR Virtual Currency in the Digital Asset Market to pay Additional Trust Expenses, the Sponsor endeavors to sell the exact number of Bitcoins, Incidental Rights and/or IR Virtual Currency needed to pay expenses in order to minimize the Trust’s holdings of assets other than Bitcoin. As a consequence, the Sponsor expects that the Trust will not record any cash flow from its operations and that its cash balance will be zero at the end of each reporting period. Furthermore, the Trust is not a party to any off-balance sheet arrangements. In exchange for the Sponsor’s Fee, the Sponsor has agreed to assume most of the expenses incurred by the Trust. As a result, the only ordinary expense of the Trust during the periods covered by this Annual Report was the Sponsor’s Fee. The Trust is not aware of any trends, demands, conditions or events that are reasonably likely to result in material changes to its liquidity needs. Selected Operating Data For the year ended December 31, 2021 2020 2019 (All Bitcoin balances are rounded to the nearest whole Bitcoin) Bitcoins: Opening Balance 607,039 261,192 204,277 Creations 50,739 353,646 61,556 Sponsor’s Fee, related party (12,968 ) (7,799 ) (4,641 ) Closing balance 644,810 607,039 261,192 Accrued but unpaid Sponsor’s Fee, related party – – – Net closing balance 644,810 607,039 261,192 Number of Shares: Opening balance 638,906,600 269,445,300 206,559,100 Creations 53,463,500 369,461,300 62,886,200 Closing Balance 692,370,100 638,906,600 269,445,300 72 Table of Contents For the year ended December 31, 2021 2020 2019 Price of Bitcoin on principal market (1) $ 45,867.86 $ 29,185.05 $ 7,145.00 NAV per Share (2) $ 42.72 $ 27.73 $ 6.93 Old Index Price (3) $ 47,172.21 $ 28,788.57 $ 7,200.71 Digital Asset Holdings per Share using Old Index Price (3) $ 43.93 $ 27.35 $ 6.98 (1) The Trust performed an assessment of the principal market at December 31, 2021, 2020 and 2019, respectively, and identified the principal market as Coinbase Pro. (2) As of December 31, 2021, 2020 and 2019, respectively, the NAV per Share was calculated using the fair value of Bitcoin based on the price provided by Coinbase Pro, the Digital Asset Exchange that the Trust currently considers its principal market, as of 4:00 p.m., New York time, on the valuation date. (3) Prior to February 1, 2022, the Trust calculated its Digital Asset Holdings and Digital Asset Holdings per Share by reference to the Old Index Price as of 4:00 p.m., New York time, on the valuation date. The Old Index Price was calculated using non-GAAP methodology and is not used in the Trust’s financial statements. Effective February 1, 2022, the Trust began using the Index Price to calculate its Digital Asset Holdings and Digital Asset Holdings per Share as of 4:00 p.m., New York time, on the valuation date. See “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations—Historical Digital Asset Holdings and Bitcoin Prices” for further information on the Trust’s Digital Asset Holdings and Digital Asset Holdings per Share calculated using the Index Price. The Digital Asset Exchanges included in the Index as of December 31, 2021 and 2020 were Coinbase Pro, LMAX Digital, Kraken and Bitstamp. As of December 31, 2019 the Digital Asset Exchanges included in the Index consisted of Coinbase Pro, Bitstamp, Kraken, Bittrex and itBit. For accounting purposes, the Trust reflects creations and the Bitcoins receivable with respect to such creations on the date of receipt of a notification of a creation but does not issue Shares until the requisite number of Bitcoins is received. At this time, the Trust is not accepting redemption requests from shareholders. Subject to receipt of regulatory approval from the SEC and approval by the Sponsor in its sole discretion, the Trust may in the future operate a redemption program. The Trust has not sought such relief as of the date of this Annual Report. As of December 31, 2021, the Trust had a net closing balance of 644,809.96863835 Bitcoins with a total value of $30,417,111,251, based on the Old Index Price of $47,172.21 on December 31, 2021 (non-GAAP methodology). As of December 31, 2021, the total market value of the Trust’s Bitcoin based on the principal market (Coinbase Pro) of $45,867.86 on December 31, 2021 was $29,576,053,368. As of December 31, 2020, the Trust had a net closing balance of 607,039.48515191 Bitcoins with a total value of $17,475,798,711, based on the Old Index Price of $28,788.57 on December 31, 2020 (non-GAAP methodology). As of December 31, 2020, the total market value of the Trust’s Bitcoin based on the principal market (Coinbase Pro) of $29,185.05 on December 31, 2020 was $17,716,477,727. As of December 31, 2019, the Trust had a net closing balance of 261,192.14022299 Bitcoins with a total value of $1,880,768,856, based on the Old Index Price of $7,200.71 on December 31, 2019 (non-GAAP methodology). As of December 31, 2019, the total market value of the Trust’s Bitcoin based on the principal market (Coinbase Pro) of $7,145.00 on December 31, 2019 was $1,866,217,842. Historical Digital Asset Holdings and Bitcoin Prices As movements in the price of Bitcoin will directly affect the price of the Shares, investors should understand recent movements in the price of Bitcoin. Investors, however, should also be aware that past movements in the Bitcoin price are not indicators of future movements. Movements may be influenced by various factors, including, but not limited to, government regulation, security breaches experienced by service providers, as well as political and economic uncertainties around the world. The following chart illustrates the movement in the Index Price, the Old Index Price, the Trust’s Digital Asset Holdings per Share based on the Old Index Price and the Index Price and the Trust’s net asset value per share as calculated in accordance with GAAP from September 25, 2013 to December 31, 2021. For more information on the determination of the Trust’s Digital Asset Holdings, see “Item 1. Business—Overview of the Bitcoin Industry and Market—Bitcoin Value—The Index and the Index Price.” 73 Table of Contents The following table illustrates the movements in the Old Index Price from the beginning of the Trust’s operations on September 25, 2013 to December 31, 2021. Since the beginning of the Trust’s operations, the Old Index Price has ranged from $117.03 to $67,397.98, with the straight average being $9,508.58. The Sponsor has not observed a material difference between the Old Index Price and average prices from the constituent Digital Asset Exchanges individually or as a group. High Low Period Average Old Index Price Date Old Index Price Date End of period Last business day Twelve months ended December 31, 2017 $ 3,942.40 $ 18,756.45 12/18/2017 $ 780.71 1/12/2017 $ 13,340.23 $ 14,517.67 Twelve months ended December 31, 2018 $ 7,497.29 $ 15,736.96 1/5/2018 $ 3,228.07 12/14/2018 $ 3,760.46 $ 3,760.46 Twelve months ended December 31, 2019 $ 7,319.77 $ 12,681.53 7/10/2019 $ 3,365.98 2/7/2019 $ 7,200.71 $ 7,200.71 Twelve months ended December 31, 2020 $ 11,074.72 $ 28,788.57 12/31/2020 $ 5,050.07 3/16/2020 $ 28,788.57 $ 28,788.57 Twelve months ended December 31, 2021 $ 47,316.42 $ 67,397.98 11/9/2021 $ 29,235.54 1/1/2021 $ 47,172.21 $ 47,172.21 September 25, 2013 (the inception of the Trust’s operations) to December 31, 2021 $ 9,508.58 $ 67,397.98 11/9/2021 $ 117.03 10/3/2013 $ 47,172.21 $ 47,172.21 The following table illustrates the movements in the Index Price from the beginning of the Trust’s operations on September 25, 2013 to December 31, 2021. Since the beginning of the Trust’s operations, the Index Price has ranged from $117.03 to $67,352.59, with the straight average being $9,535.36. The Sponsor has not observed a material difference between the Index Price and average prices from the constituent Digital Asset Exchanges individually or as a group. High Low Period Average Index Price Date Index Price Date End of period Last business day Twelve months ended December 31, 2017 $ 3,971.47 $ 19,209.14 12/16/2017 $ 783.38 1/11/2017 $ 14,131.50 $ 14,415.36 Twelve months ended December 31, 2018 $ 7,518.87 $ 16,847.15 1/6/2018 $ 3,164.99 12/14/2018 $ 3,679.42 $ 3,679.42 Twelve months ended December 31, 2019 $ 7,355.63 $ 13,838.57 6/26/2019 $ 3,358.99 2/7/2019 $ 7,144.93 $ 7,144.93 Twelve months ended December 31, 2020 $ 11,103.62 $ 29,185.50 12/31/2020 $ 4,941.00 3/16/2020 $ 29,185.50 $ 29,185.50 Twelve months ended December 31, 2021 $ 47,420.39 $ 67,352.59 11/9/2021 $ 29,311.80 1/1/2021 $ 45,869.35 $ 45,869.35 September 25, 2013 (the inception of the Trust’s operations) to December 31, 2021 $ 9,535.36 $ 67,352.59 11/9/2021 $ 117.03 10/3/2013 $ 45,869.35 $ 45,869.35 74 Table of Contents The following table illustrates the movements in the Digital Asset Market price of Bitcoin, as reported on the Trust’s principal market, from the beginning of the Trust’s operations on September 25, 2013 to December 31, 2021. Since the beginning of the Trust’s operations, the price of Bitcoin has ranged from $110.83 to $67,371.70, with the straight average being $9,536.92: High Low Period Average Digital Asset Market Price Date Digital Asset Market Price Date End of period Last business day Twelve months ended December 31, 2017 $ 3,987.48 $ 19,433.21 12/16/2017 $ 793.04 1/11/2017 $ 14,168.54 $ 14,440.01 Twelve months ended December 31, 2018 $ 7,517.17 $ 16,849.50 1/6/2018 $ 3,164.61 12/14/2018 $ 3,779.42 $ 3,679.42 Twelve months ended December 31, 2019 $ 7,356.06 $ 13,849.81 6/26/2019 $ 3,358.79 2/7/2019 $ 7,145.00 $ 7,145.00 Twelve months ended December 31, 2020 $ 11,103.80 $ 29,185.05 12/31/2020 $ 4,950.39 3/16/2020 $ 29,185.05 $ 29,185.05 Twelve months ended December 31, 2021 $ 47,420.71 $ 67,371.70 11/9/2021 $ 29,295.98 1/1/2021 $ 45,867.86 $ 45,867.86 September 25, 2013 (the inception of the Trust’s operations) to December 31, 2021 $ 9,536.92 $ 67,371.70 11/9/2021 $ 110.83 10/2/2013 $ 45,867.86 $ 45,867.86 Secondary Market Trading The Trust’s Shares have been quoted on OTCQX under the symbol GBTC since March 26, 2015. The price of the Shares as quoted on OTCQX has varied significantly from the Bitcoins Holdings per Share. From May 5, 2015 to December 31, 2021, the maximum premium of the closing price of the Shares quoted on OTCQX over the value of the Trust’s Digital Asset Holdings per Share was 142% (142% based on Old Index Price) and the average premium was 37% (37% based on Old Index Price), and the maximum discount of the closing price of the Shares quoted on OTCQX below the value of the Trust’s Digital Asset Holdings per Share was 21% (22% based on Old Index Price) and the average discount was 13% (13% based on Old Index Price). As of December 31, 2021 the Trust’s shares were quoted on OTCQX at a discount of 20% (22% based on Old Index Price) to the Trust’s Digital Asset Holdings per Share. The closing price of the Shares, as quoted on OTCQX at 4:00 p.m., New York time, on each business day, has been quoted at a discount on 217 days (217 days based on Old Index Price). The following table sets out the range of high and low closing prices for the Shares as reported by OTCQX, the Trust’s NAV per Share and the Trust’s Digital Asset Holdings per Share using both the Old Index Price and the Index Price for each of the quarters since January 1, 2019. High Low OTCQX NAV per Share(1) Digital Asset Holdings per Share (2) Digital Asset Holdings per Share using Old Index Price (2) OTCQX NAV per Share (1) Digital Asset Holdings per Share (2) Digital Asset Holdings per Share using Old Index Price (2) 2019 First quarter $ 4.99 $ 4.08 $ 4.08 $ 4.02 $ 3.84 $ 3.31 $ 3.31 $ 3.32 Second quarter $ 17.08 $ 13.56 $ 13.55 $ 12.37 $ 4.97 $ 4.07 $ 4.07 $ 4.05 Third quarter $ 16.35 $ 12.25 $ 12.24 $ 12.41 $ 9.83 $ 7.75 $ 7.75 $ 7.81 Fourth quarter $ 11.82 $ 9.48 $ 9.48 $ 9.30 $ 8.01 $ 6.39 $ 6.39 $ 6.56 2020 First quarter $ 13.48 $ 10.05 $ 10.05 $ 10.00 $ 5.54 $ 4.78 $ 4.77 $ 4.88 Second quarter $ 12.30 $ 9.59 $ 9.59 $ 9.55 $ 6.50 $ 5.99 $ 5.99 $ 6.07 Third quarter $ 14.75 $ 11.81 $ 11.82 $ 11.63 $ 9.31 $ 8.67 $ 8.67 $ 8.73 Fourth quarter $ 32.90 $ 27.73 $ 27.73 $ 27.35 $ 10.85 $ 10.04 $ 10.05 $ 10.04 2021 First quarter $ 56.70 $ 58.30 $ 58.29 $ 57.36 $ 31.36 $ 27.83 $ 27.85 $ 27.78 Second quarter $ 54.93 $ 59.96 $ 59.96 $ 59.86 $ 27.45 $ 29.71 $ 29.70 $ 29.43 Third quarter $ 40.73 $ 48.50 $ 48.50 $ 48.39 $ 24.02 $ 27.99 $ 27.99 $ 28.08 Fourth quarter $ 53.49 $ 62.92 $ 62.91 $ 62.95 $ 34.25 $ 42.72 $ 42.72 $ 43.24 (1) The NAV is calculated using the fair value of Bitcoins based on the price provided by the Digital Asset Market that the Trust considers its principal market, which since December 31, 2016 is Coinbase Pro. (2) The Trust calculated its Digital Asset Holdings and Digital Asset Holdings per Share by reference to the Old Index Price as of 4:00 p.m., New York time, on the valuation date. Effective February 1, 2022, the Trust began using the Index Price to calculate its Digital Asset Holdings and Digital Asset Holdings per Share as of 4:00 p.m., New York time, on the valuation date. See “Item 1. Business—Overview of the Bitcoin Industry and Market—Bitcoin Value—The Index and the Index Price—Determination of the Index Price.” The Trust’s Digital Asset Holdings are derived from the Index Price as represented by the Index as of 4:00 p.m., New York time, on the valuation date. Prior to February 1, 2022, the Trust’s Digital Asset Holdings per Share was derived from the Old Index Price. The Index Price is calculated using non-GAAP methodology and is not used in the Trust’s financial statements. See “Item 1. Business —Trust Objective and Key Operating Metrics.” 75 Table of Contents The following chart sets out the historical closing prices for the Shares as reported by OTCQX and the Trust’s Digital Asset Holdings per Share based on the Index Price and the Old Index Price. GBTC Premium/(Discount): GBTC Share Price vs. Digital Asset Holdings per Share ($) The following chart sets out the historical premium and discount for the Shares as reported by OTCQX and the Trust’s Digital Asset Holdings per Share based on the Index Price and the Old Index Price. GBTC Premium/(Discount): GBTC Share Price vs. Digital Asset Holdings per Share (%)