What changed in this filing

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Item 1. Financial Statements

2024-11-07 compared with 2024-08-08 · 83 added, 69 removed, 319 unchanged (32% of the section changed)

Financial Statements

iShares ® Bitcoin Trust

iShares ® Bitcoin Trust ETF

Statements of Assets and Liabilities (Unaudited)

At June 30, 2024 and December 31, 2023

At September 30, 2024 and December 31, 2023

September 30,

Investment in bitcoin, at fair value (a)

14 unchanged sentences

See notes to financial statements.

iShares ® Bitcoin Trust

iShares ® Bitcoin Trust ETF

Statements of Operations (Unaudited)

For the three and six months ended June 30, 2024

For the three and nine months ended September 30, 2024

Three Months Ended

Six Months Ended

September 30,

Nine Months Ended

September 30,

Sponsor’s fees

7 unchanged sentences

Net Realized and Unrealized Gain (Loss)

Net realized gain from:

Net realized gain (loss) from:

Bitcoin sold to pay expenses

2 unchanged sentences

( 86,430 ) 786,458

Net realized gain

Net realized gain (loss)

( 648,877 ) 1,679,141

1 unchanged sentence

119,089,128 1,823,038,671

Net realized and unrealized gain (loss)

Net realized and unrealized gain

118,440,251 1,824,717,812

Net increase (decrease) in net assets resulting from operations

Net increase in net assets resulting from operations

$ 106,951,533 $ 1,800,198,181

Net increase (decrease) in net assets per Share (a)

Net increase in net assets per Share (a)

$ 0.18 $ 4.15

Net increase (decrease) in net assets per Share based on average shares outstanding during the period.

Net increase in net assets per Share based on average shares outstanding during the period.

See notes to financial statements.

iShares ® Bitcoin Trust

iShares ® Bitcoin Trust ETF

Statements of Changes in Net Assets (Unaudited)

For the three and six months ended June 30, 2024

Six Months Ended

June 30, 2024

For the three, six and nine months ended September 30, 2024

Nine Months Ended

September 30, 2024

Net Assets at December 31, 2023

33 unchanged sentences

Net Assets at June 30, 2024 $ 19,449,621,956

Net investment loss ( 11,488,718 )

Net realized loss ( 648,877 )

Net change in unrealized appreciation/depreciation 119,089,128

Net increase in net assets resulting from operations 106,951,533

Capital Share Transactions:

Contributions for Shares issued 3,810,098,503

Distributions for Shares redeemed ( 35,985,368 )

Net increase in net assets from capital share transactions 3,774,113,135

Increase in net assets 3,881,064,668

Net Assets at September 30, 2024

$ 23,330,686,624

5 unchanged sentences

See notes to financial statements.

iShares ® Bitcoin Trust

iShares ® Bitcoin Trust ETF

Statement of Cash Flows (Unaudited)

For the six months ended June 30, 2024

Six Months Ended

For the nine months ended September 30, 2024

Nine Months Ended

September 30,

Cash Flows from Operating Activities

4 unchanged sentences

( 21,589,313,309 )

Proceeds from bitcoin sold to pay expenses

Proceeds from bitcoin sold

Net realized (gain) loss

13 unchanged sentences

$ 21,530,388,443

Net increase in cash

Net decrease in cash

Cash, beginning of period

1 unchanged sentence

See notes to financial statements.

iShares ® Bitcoin Trust

iShares ® Bitcoin Trust ETF

Schedule of Investments (Unaudited)

At June 30, 2024

June 30, 2024

At September 30, 2024

September 30, 2024

366,448 $ 21,511,514,705 $ 23,334,553,376

6 unchanged sentences

See notes to financial statements.

iShares ® Bitcoin Trust

iShares ® Bitcoin Trust ETF

Notes to Financial Statements (Unaudited)

June 30, 2024

September 30, 2024

1 - Organization

The iShares Bitcoin Trust (the “Trust”) was organized on June 8, 2023 as a Delaware statutory trust.

The iShares Bitcoin Trust ETF (the “Trust”) was organized on June 8, 2023 as a Delaware statutory trust.

The trustee is BlackRock Fund Advisors (the “Trustee”), which is responsible for the day-to-day administration of the Trust.

The Trust’s sponsor is iShares Delaware Trust Sponsor LLC, a Delaware limited liability company (the “Sponsor”).

The Bank of New York Mellon serves as the “Trust Administrator.” The Trust is governed by the provisions of the Second Amended and Restated Trust Agreement (the “Trust Agreement”) executed by the Sponsor, the Trustee and Wilmington Trust, National Association, a national association (“Delaware Trustee”), as of December 28, 2023.

1 thereto, with effect from August 8, 2024.

The Trust issues units of beneficial interest (“Shares”) representing fractional undivided beneficial interests in its net assets.

On August 8, 2024, the Trust’s name was changed from iShares Bitcoin Trust to iShares Bitcoin Trust ETF.

On January 5, 2024, BlackRock Financial Management, Inc.

6 unchanged sentences

The Trust seeks to reflect such performance before payment of the Trust’s expenses and liabilities.

The Shares are intended to constitute a simple means for an investor to make an investment similar to an investment in bitcoin.

The Shares are intended to constitute a simple means of making an investment similar to an investment in bitcoin.

The accompanying unaudited financial statements were prepared in accordance with generally accepted accounting principles in the United States (“U.S.

26 unchanged sentences

If the CF Benchmarks Index is not used, the Trust will notify Shareholders in a prospectus supplement, in its periodic Exchange Act reports and/or on the Trust’s website.

The Trust Administrator calculates the NAV of the Trust once on each day other than a Saturday or a Sunday, or a day on which NASDAQ is closed for regular trading (a “Business Day”).

The Trust Administrator calculates the net asset value of the Trust and the NAV once on each day other than a Saturday or a Sunday, or a day on which NASDAQ is closed for regular trading (a “Business Day”).

The NAV for a normal trading day will be released after 4:00 p.m.

9 unchanged sentences

Gain or loss on sales of bitcoin is calculated on a trade date basis using the average cost method.

The following tables summarize activity in bitcoin for the three months ended June 30, 2024:

Three Months Ended June 30, 2024

The following table summarizes activity in bitcoin for the three months ended September 30, 2024:

Three Months Ended September 30, 2024

Beginning balance

6 unchanged sentences

( 193 ) ( 11,212,559 ) ( 10,650,112 ) ( 562,447 )

Net realized gain

Net realized loss

— — ( 648,877 ) —

3 unchanged sentences

366,448 $ 21,511,514,705 $ 23,334,553,376 $ ( 648,877 )

The following tables summarize activity in bitcoin for the six months ended June 30, 2024:

Six Months Ended June 30, 2024

The following table summarizes activity in bitcoin for the nine months ended September 30, 2024:

Nine Months Ended September 30, 2024

Beginning balance

15 unchanged sentences

ET, the net asset value of the Trust is obtained by subtracting all accrued fees, expenses and other liabilities of the Trust from the total assets held by the Trust.

The Trustee computes the NAV by dividing the net asset value of the Trust by the number of Shares outstanding on the date the computation is made.

The Trust Administrator computes the NAV by dividing the net asset value of the Trust by the number of Shares outstanding on the date the computation is made.

Cash and Cash Equivalents

11 unchanged sentences

Any interest, expenses, gains and losses are passed through to the holders of Shares of the Trust.

The Sponsor has analyzed applicable tax laws and regulations and their application to the Trust as of June 30, 2024 and does not believe that there are any uncertain tax positions that require recognition of a tax liability.

The Sponsor has analyzed applicable tax laws and regulations and their application to the Trust as of September 30, 2024 and does not believe that there are any uncertain tax positions that require recognition of a tax liability.

3 - Trust Expenses

1 unchanged sentence

dollars or in-kind or any combination thereof.

For the period ended September 30, 2024, the Sponsor’s fee was $ 28,844,181 .

The Sponsor may, at its sole discretion and from time to time, waive all or a portion of the Sponsor’s fee for stated periods of time.

2 unchanged sentences

In the future, if the Sponsor decides to waive all or a portion of the Sponsor’s fee, Shareholders will be notified in a prospectus supplement, in its periodic Exchange Act reports and/or on the Trust’s website.

For the period ended June 30, 2024, the amount waived was $ 2,690,670 .

For the period ended September 30, 2024, the amount waived was $ 4,324,550 .

The Sponsor has agreed to assume the marketing and the following administrative expenses of the Trust:

5 unchanged sentences

The Trustee’s fee is paid by the Sponsor and is not a separate expense of the Trust.

As of June 30, 2024, BlackRock Financial Management, Inc., an affiliate of the Sponsor, owned 400,000 Shares of the Trust, or 0.07 %, of the Trust.

As of September 30, 2024, BlackRock Financial Management, Inc., an affiliate of the Sponsor, owned 400,000 Shares of the Trust, or 0.06 %, of the Trust.

5 - Indemnification

8 unchanged sentences

7 - Concentration Risk

Substantially all of the Trust’s assets are holdings of bitcoin, which creates a concentration risk associated with fluctuations in the value of bitcoin.

Accordingly, a decline in the value of bitcoin will have an adverse effect on the value of the Shares of the Trust.

Factors that may have the effect of causing a decline in the value of bitcoin include negative perception of digital assets;

Substantially all of the Trust’s assets are holdings of bitcoin, which creates a concentration risk associated with fluctuations in the price of bitcoin.

Accordingly, a decline in the price of bitcoin will have an adverse effect on the value of the Shares of the Trust.

Factors that may have the effect of causing a decline in the price of bitcoin include negative perception of digital assets;

a lack of stability and standardized regulation in the digital asset markets;

2 unchanged sentences

8 - Financial Highlights

The following financial highlights relate to investment performance and operations for a Share outstanding for the three and six months ended June 30, 2024.

The following financial highlights relate to investment performance and operations for a Share outstanding for the three and nine months ended September 30, 2024.

Three Months Ended

Six Months Ended

September 30,

Nine Months Ended

September 30,

Net asset value per Share, beginning of period

2 unchanged sentences

( 0.02 ) ( 0.06 )

Net realized and unrealized gain (loss) (b)

( 4.12 ) 11.11

Net increase (decrease) in net assets from operations

( 4.14 ) 11.07

Net realized and unrealized gain (b)

Net increase in net assets from operations

Net asset value per Share, end of period

13 unchanged sentences

Percentage is not annualized.

For the period January 10, 2024 ( Effective Date) to June 30, 2024.

For the period January 1, 2024 to June 30, 2024, the Trust’s total return was 44.28 %.

For the period January 10, 2024 ( Effective Date) to September 30, 2024.

For the period January 1, 2024 to September 30, 2024, the Trust’s total return was 44.92 %.

Percentage is annualized.

10 unchanged sentences

Unobservable inputs that are unobservable for the asset or liability, including the Trust’s assumptions used in determining the fair value of investments.

At June 30, 2024, the value of the bitcoin held by the Trust is categorized as Level 1.

Subsequent Event

On August 8, 2024, the Trust's name was changed from iShares Bitcoin Trust to iShares Bitcoin Trust ETF.

Other than the items noted above there were no subsequent events requiring adjustment or additional disclosure in the financial statements.

At September 30, 2024, the value of the bitcoin held by the Trust is categorized as Level 1.

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

41 unchanged sentences

Results of Operations

The Quarter Ended June 30, 2024

The Trust’s net asset value increased from $17,788,884,882 at March 31, 2024 to $19,449,621,956 at June 30, 2024, a 9.34% increase.

The increase in the Trust’s net asset value resulted primarily from an increase in the number of outstanding Shares, which rose from 442,400,000 Shares at March 31, 2024 to 539,160,000 Shares at June 30, 2024, a consequence of 98,120,000 Shares (2,453 Baskets) being created and 1,360,000 Shares (34 Baskets) being redeemed during the quarter.

The increase in Trust’s net asset value was partially offset by a decrease in the price of bitcoin, which fell 10.24% from $70,596.99 at March 31, 2024 to $63,369.30 at June 30, 2024.

The 10.30% decrease in the net asset value per Share for purposes of the Trust’s periodic financial statements (the “Financial Statement NAV”) from $40.21 at March 31, 2024 to $36.07 at June 30, 2024 is directly related to the 10.24% decrease in the price of bitcoin.

The Financial Statement NAV decreased slightly more than the price of bitcoin on a percentage basis due to the Sponsor’s fee, which was $9,894,244 for the quarter, or 0.05% of the Trust’s average weighted assets of $18,538,536,352 during the quarter.

The NAV of $40.90 on April 8, 2024 was the highest during the quarter, compared with a low during the quarter of $32.97 on May 1, 2024.

Net decrease in net assets resulting from operations for the quarter ended June 30, 2024 was $2,110,463,201, resulting from an unrealized loss on investment in bitcoin of $2,102,796,450 and, a net investment loss of $9,894,244, partially offset by a net realized gain of $1,354,605 from bitcoin sold to pay expenses and a net realized gain of $872,888 from bitcoin sold for the redemption of Shares.

Other than the Sponsor’s fee of $9,894,244, the Trust had no expenses during the quarter.

The Six-Month Period Ended June 30, 2024

The Trust’s net asset value grew from $100,000 at December 31, 2023 to $19,449,621,956 at June 30, 2024.

The increase in the Trust’s net asset value resulted primarily from an increase in the number of outstanding Shares, which rose from 4,000 Shares at December 31, 2023 to 539,160,000 Shares at June 30, 2024, a consequence of 540,520,000 Shares (13,513 Baskets) being created and 1,364,000 Shares (34 Baskets plus the original 4,000 seed Shares) being redeemed during the period.

The increase in the Trust’s net asset value also benefited from an increase in the price of bitcoin, which rose 44.42% from the Trust’s first bitcoin purchase at $43,878.41 on January 5, 2024 to $63,369.30 at June 30, 2024.

The 44.28% increase in the Financial Statement NAV from $25.00 at December 31, 2023 to $36.07 at June 30, 2024 is directly related to the 44.42% increase in the price of bitcoin.

The Quarter Ended September 30, 2024

The Trust’s net asset value increased from $19,449,621,956 at June 30, 2024 to $23,330,686,624 at September 30, 2024, a 19.95% increase.

The increase in the Trust’s net asset value resulted primarily from an increase in the number of outstanding Shares, which rose from 539,160,000 Shares at June 30, 2024 to 644,000,000 Shares at September 30, 2024, a consequence of 105,920,000 Shares (2,648 Baskets) being created and 1,080,000 Shares (27 Baskets) being redeemed during the quarter.

The increase in the Trust’s net asset value also benefited from an increase in the price of bitcoin, which rose 0.49% from $63,369.30 at June 30, 2024 to $63,677.63 at September 30, 2024.

The 0.44% increase in the NAV for purposes of the Trust’s periodic financial statements (the “Financial Statement NAV”) from $36.07 at June 30, 2024 to $36.23 at September 30, 2024 is directly related to the 0.49% increase in the price of bitcoin.

The Financial Statement NAV increased slightly less than the price of bitcoin on a percentage basis due to the Sponsor’s fee, which was $11,488,718 for the quarter, or 0.05% of the Trust’s average weighted assets of $20,919,049,413 during the quarter.

The NAV of $38.61 on July 22, 2024 was the highest during the quarter, compared with a low during the quarter of $30.24 on August 5, 2024.

Net increase in net assets resulting from operations for the quarter ended September 30, 2024 was $106,951,533, resulting from an unrealized gain on investment in bitcoin of $119,089,128, partially offset by a net realized loss of $562,447 from bitcoin sold to pay expenses, a net realized loss of $86,430 from bitcoin sold for the redemption of Shares and, a net investment loss of $11,488,718.

Other than the net Sponsor’s fee of $11,488,718, the Trust had no expenses during the quarter.

The Nine-Month Period Ended September 30, 2024

The Trust’s net asset value grew from $100,000 at December 31, 2023 to $23,330,686,624 at September 30, 2024.

The increase in the Trust’s net asset value resulted primarily from an increase in the number of outstanding Shares, which rose from 4,000 Shares at December 31, 2023 to 644,000,000 Shares at September 30, 2024, a consequence of 646,440,000 Shares (16,161 Baskets) being created and 2,444,000 Shares (61 Baskets plus the original 4,000 seed Shares) being redeemed during the period.

The increase in the Trust’s net asset value also benefited from an increase in the price of bitcoin, which rose 45.12% from the Trust’s first bitcoin purchase at $43,878.41 on January 5, 2024 to $63,677.63 at September 30, 2024.

The 44.92% increase in the Financial Statement NAV from $25.00 at December 31, 2023 to $36.23 at September 30, 2024 is directly related to the 45.12% increase in the price of bitcoin.

The Financial Statement NAV increased slightly less than the price of bitcoin on a percentage basis due to the Sponsor’s fee, which was $24,519,631 for the period, or 0.16% of the Trust’s average weighted assets of $15,495,651,817 during the period.

The NAV of $41.66 on March 13, 2024 was the highest during the period, compared with a low during the period of $22.36 on January 23, 2024.

Net increase in net assets resulting from operations for the period ended June 30, 2024 was $1,693,246,648, resulting from an unrealized gain on investment in bitcoin of $1,703,949,543, a net realized gain of $1,455,130 from bitcoin sold to pay expenses and a net realized gain of $872,888 from bitcoin sold for the redemption of Shares, partially offset by a net investment loss of $13,030,913.

Other than the Sponsor’s fee of $13,030,913, the Trust had no expenses during the period.

Net increase in net assets resulting from operations for the nine months ended September 30, 2024 was $1,800,198,181, resulting from an unrealized gain on investment in bitcoin of $1,823,038,671, a net realized gain of $892,683 from bitcoin sold to pay expenses and a net realized gain of $786,458 from bitcoin sold for the redemption of Shares, partially offset by a net investment loss of $24,519,631.

Other than the net Sponsor’s fee of $24,519,631, the Trust had no expenses during the period.

Quantitative and Qualitative Disclosures About Market Risk.

1 unchanged sentence

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