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Item 1. Financial Statements

2026-05-13 compared with 2025-12-09 · 453 added, 283 removed, 16 unchanged (98% of the section changed)

Financial Statements.

of Assets and Liabilities

Investment in Litecoin, at fair value (cost $ 0 )

Sponsor Fee payable

CANARY LITECOIN ETF

Statements of Assets and Liabilities

March 31, 2026 (Unaudited)

December 31, 2025

Investments in Litecoin, at value (Note 2)

Payable to Sponsor (Note 3)

Total Liabilities

Commitments and Contingent Liabilities (Note 6)

Shares issued and outstanding as of September 30, 2025

(par value $ 0.00 per share;

Unlimited number of shares authorized)

Net asset value per share

accompanying Notes to Financial Statements

of Changes in Net Assets

For the period

August 27, 2025

Increase (decrease) in net assets resulting from operations

Net investment loss

Net realized gain (loss) on investment in Litecoin transferred to pay Sponsor Fee

Net change in unrealized appreciation (depreciation)

NET ASSETS CONSIST OF:

Paid-in capital

Total distributable earnings (accumulated deficit)

( 4,522,119 )

( 1,855,877 )

Net Asset Value (unlimited shares authorized):

Unlimited shares authorized:

Shares Outstanding ^

Net Asset Value, Offering and Redemption Price per Share

Investments in securities, at cost

No Par Value.

See accompanying notes to financial statements.

CANARY LITECOIN ETF

Schedule of Investment

March 31, 2026 (Unaudited)

Investments - 100.1 %

Crypto Currency - 100.1 %

TOTAL CRYPTO CURRENCY (Cost $ 10,182,602 )

TOTAL INVESTMENTS - 100.1 % (Cost $ 10,182,602 )

Liabilities in Excess of Other Assets - ( 0.1 )%

TOTAL NET ASSETS - 100.0 %

Percentages are stated as a percent of net assets.

See accompanying notes to financial statements.

CANARY LITECOIN ETF

Schedule of Investment

December 31, 2025

Investments - 100.1 %

Crypto Currency - 100.1 %

TOTAL CRYPTO CURRENCY (Cost $ 8,808,759 )

TOTAL INVESTMENTS - 100.1 % (Cost $ 8,808,759 )

Liabilities in Excess of Other Assets - ( 0.1 )%

TOTAL NET ASSETS - 100.0 %

Percentages are stated as a percent of net assets.

See accompanying notes to financial statements.

CANARY LITECOIN ETF

Statement of Operations

the Quarter Ended March 31, 2026 (Unaudited) *

Sponsor fees (Note 3)

Total Expenses

Sponsor fees waived (Note 3)

Net Investment income (loss)

REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS

Net realized gain (loss) on:

Investments in crypto currency

$ ( 531,647 )

Net change in unrealized appreciation (depreciation) of:

Investments in crypto currency

( 2,118,115 )

Net realized and unrealized gain (loss) on investments

( 2,649,762 )

NET INCREASE (DECREASE) IN NET ASSETS RESULTING

FROM OPERATIONS

$ ( 2,666,242 )

* No comparative financial statements have been provided as the initial share purchase date of the Trust was October 27, 2025.

See accompanying notes to financial statements.

CANARY LITECOIN ETF

Statement of Changes in Net Assets

the Quarter Ended March 31, 2026 (Unaudited) *

INCREASE (DECREASE) IN NET ASSETS:

Net investment income (loss)

Net realized gain (loss) on investments

Net change in unrealized appreciation (depreciation) of investments

( 2,118,115 )

Net increase (decrease) in net assets resulting from operations

Increase (decrease) in net assets resulting from capital share transactions

Creations for Shares issued

Redemptions for Shares redeemed

Net increase (decrease) in net assets resulting from

( 2,666,242 )

CAPITAL SHARE TRANSACTIONS

Total increase(decrease) in net assets from operations

and capital share transactions

Shares redeemed

Net increase (decrease) in net assets from capital share transactions

Total increase (decrease) in net assets

Beginning of Period

End of Period

Shares issued and redeemed

Shares issued

Shares redeemed

Net increase (decrease) in Shares issued and outstanding

Shares outstanding at end of period

*No comparative financial statements have been provided

as the Trust’s operations commenced on October 27, 2025

* No comparative financial statements have been provided as the initial

share purchase date of the Trust was October 27, 2025.

See accompanying notes to financial statements.

TO FINANCIAL STATEMENTS

Canary Litecoin ETF (the “Trust”) is a Delaware statutory trust, formed on September 24, 2024, pursuant to the Delaware

Statutory Trust Act.

The Trust continuously issues common shares representing fractional undivided beneficial interest in and

ownership of the Trust that may be purchased and sold on the Nasdaq Stock Market, LLC (the “Exchange”) under the symbol

“LTCC.” The Trust operates pursuant to a Trust Agreement, as amended and/or restated from time to time (the “Trust

CSC Delaware Trust Company, a Delaware trust company, is the trustee of the Trust (the “Trustee”).

The Trust is managed and controlled by Canary Capital Group LLC (the “Sponsor”).

Trust is an exchange-traded fund that issues shares of beneficial interest (the “Shares”) that are listed and trade

on the Exchange.

The Trust’s investment objective is to seek to provide exposure to the price of Litecoin (“LTC”)

held by the Trust, less the expenses of the Trust’s operations and other liabilities.

The Trust is a passive investment

vehicle that does not seek to generate returns beyond tracking the price of LTC.

In seeking to achieve

its investment objective, the Trust will hold LTC and establish its net asset value (“NAV”) on each business day by

reference to the CoinDesk Litecoin CCIXber 60m New York Rate (the “Pricing Benchmark”).

The Pricing Benchmark is calculated

by CoinDesk Indices (the “Benchmark Provider”) based on a 60-minute time-weighted average price of the LTC-USD CCIXber

Reference Rate (the “Underlying Index”), which is an aggregation of executed trade flow of major LTC trading platforms

(“Constituent Platforms”).

Canary Litecoin ETF

NOTES TO THE FINANCIAL STATEMENTS

March 31, 2026 (Unaudited)

The Canary Litecoin ETF (the

“Trust”) is a Delaware statutory trust, formed on September 24, 2024, pursuant to the Delaware Statutory Trust Act.

continuously issues common shares representing fractional undivided beneficial interest in and ownership of the Trust that may be purchased

and sold on the Nasdaq Stock Market, LLC (the “Exchange”) under the symbol “LTCC.” The Trust operates pursuant

to a Trust Agreement, as amended and/or restated from time to time (the “Trust Agreement”).

CSC Delaware Trust Company, a

Delaware trust company, is the trustee of the Trust (the “Trustee”).

The Trust is managed and controlled by Canary Capital

Group LLC (the “Sponsor”).

The Trust is an exchange-traded

fund that issues shares of beneficial interest (the “Shares”) that are listed and trade on the Exchange.

investment objective is to seek to provide exposure to the price of Litecoin (“LTC”) held by the Trust, less the expenses

of the Trust’s operations and other liabilities.

The Trust is a passive investment vehicle that does not seek to generate returns

beyond tracking the price of LTC.

In seeking to achieve its investment objective, the Trust holds LTC and establishes its net asset value

(“NAV”) on each business day by reference to the CoinDesk Litecoin CCIXber 60m New York Rate (the “Pricing Benchmark”).

The Pricing Benchmark is calculated by CoinDesk Indices (the “Benchmark Provider”) based on a 60-minute time-weighted average

price of the LTC-USD CCIXber Reference Rate (the “Underlying Index”), which is an aggregation of executed trade flow of major

LTC trading platforms (“Constituent Platforms”).

The Benchmark Provider publishes the Pricing Benchmark.

The Trust is sponsored by the Sponsor.

of September 30, 2025, the Trust has had no operations other than those actions relating to organizational and registration matters.

On September 22, 2025, Charlie Lee (the “Seed Capital Investor”) purchased 40,000 Shares at a per-Share price of $ 25

(the “Seed Shares”).

Total proceeds to the Trust from the sale of the Seed Shares was $ 1,000,000 which was held in

cash as presented on the Trust’s statement of assets and liabilities.

The Trust will purchase $ 1,000,000 in LTC with the

proceeds of the Seed Shares upon commencement of investment operations.

The Seed Capital Investor will act as a statutory underwriter

in connection with the Seed Shares.

As of the date of the financial statements, these 40,000 Seed Shares represent all of the

outstanding Shares.

Accounting Policies

The Trust is sponsored

by the Sponsor.

On September 22, 2025 (the “Seeding

Date”), Charlie Lee (the “Seed Capital Investor”) purchased 40,000 Shares of the Trust at a per Share price of $ 25 (the

“Seed Shares”).

The proceeds to the Trust from the sale of the Seed Shares were $ 1,000,000 .

Upon inception of the Trust on October

27, 2025, the Trust purchased $ 1,000,000 in LTC with the proceeds of the Seed Shares and issued the 40,000 Seed Shares to the Seed Capital

Significant Accounting Policies

Basis of Presentation

following is a summary of significant accounting policies consistently followed by the Trust in the preparation of these financial

The accompanying financial statements have been prepared in conformity with accounting principles generally accepted

in the United States of America (“GAAP”) and are stated in U.S.

The Trust’s financial statements were

prepared using the accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting

Standards Codification (“ASC”) Topic 946, Financial Services — Investment Companies .

The Trust qualifies

as an investment company solely for accounting purposes and not for any other purpose.

The Trust is not registered, and

is not required to be registered, as an investment company under the Investment Company Act of 1940, as amended.

The Trust follows

the significant accounting policies described below.

preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect

the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial

Actual results could differ from those estimates.

the Trust does not intend to hold any cash.

The following is a summary of

significant accounting policies consistently followed by the Trust in the preparation of these financial statements.

The accompanying

financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”)

and are stated in U.S.

The Trust’s financial statements were prepared using the accounting and reporting guidance of the

Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 946, Financial Services

— Investment Companies.

The Trust qualifies as an investment company solely for accounting purposes and not for any other purpose.

The Trust is not registered, and is not required to be registered, as an investment company under the Investment Company Act of 1940,

The Trust follows the significant accounting policies described below.

Use of Estimates

The preparation of the financial

statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and

liabilities and disclosure of contingent assets and liabilities at the date of the financial statements.

Actual results could differ from

those estimates.

Generally, the Trust does not

intend to hold any cash.

Cash includes non-interest-bearing, non-restricted cash with one institution.

in a bank deposit account, at times, may exceed U.S.

Cash in a bank deposit account,

at times, may exceed U.S.

federally insured limits.

The Trust has not experienced any losses in such

accounts and does not believe it is exposed to any significant credit risk on such bank deposits.

As of September 30, 2025, the

Trust held $ 1,000,000 in cash relating to the issuance of the Seed Shares.

Transactions and Investment Income

Trust intends to purchase LTC upon the creation of Shares and sell LTC upon the redemption of Shares.

Transactions are recorded

on a trade-date basis.

Realized gains (losses) and changes in unrealized gains (losses) on open positions are determined on a

specific identification basis and recognized in the statement of operations in the period in which the sale occurred or the changes

in unrealized occurred.

Sponsor and the Trustee will treat the Trust as a grantor trust for U.S.

The Trust has not experienced any losses in such accounts and does not believe it

is exposed to any significant credit risk on such bank deposits.

Investment Transactions and Investment Income

The Trust purchases LTC upon

the creation of Shares and sells LTC upon the redemption of Shares.

Transactions are recorded on a trade date basis.

Realized gains (losses)

and changes in unrealized gains (losses) on open positions are determined on a specific identification basis and recognized in the statement

of operations in the period in which the sale occurred or the changes in unrealized gains (losses) occurred.

Sponsor takes the position that the Trust is properly treated as a grantor trust for U.S.

federal income tax purposes.

As a result, the Trust itself

would not be subject to U.S.

Assuming that

the Trust is a grantor trust, the Trust will not be subject to U.S.

federal income tax.

Instead, the Trust’s income, expenses and amounts realized should flow

through to the Shareholders, and the Trustee will report to Shareholders and the Internal Revenue Service (“IRS”)

on that basis.

If the IRS were to assert successfully that the Trust is not classified as a grantor trust, the Trust would likely

be classified as a partnership for U.S.

federal income tax purposes, which may affect the timing and other tax consequences to

the Shareholders.

Under such circumstances, the Trust might be classified as a publicly traded partnership that would be taxable

as a corporation for U.S.

federal income tax purposes, in which case the Trust would be taxed in the same manner as a corporation

on its taxable income and distributions to shareholders out of the earnings and profits of the Trust would be taxed to shareholders

as ordinary dividend income.

However, due to the uncertain treatment of digital assets for U.S.

federal income tax purposes, there

can be no assurance in this regard.

No interest expense or penalties have been recognized as of the date of the financial statements.

Asset Trading Platform Valuation

value of LTC is determined by the value that various market participants place on LTC through their transactions.

The most common

means of determining the value of LTC is by surveying one or more digital asset trading platforms where LTC is traded publicly

and transparently (e.g., Binance, Bitfinex, Coinbase Pro and Crypto.com).

Trust identifies and determines the principal market (or in the absence of a principal market, the most advantageous market) for

GAAP financial statement purposes consistent with the application of fair value measurement framework in FASB ASC 820.

820, a principal market is the market with the greatest volume and activity level for the asset or liability.

valuation procedures provide for the designation of the Sponsor to determine the valuation sources and policies to prepare the

Trust’s financial statements in accordance with GAAP.

Trust utilizes various inputs to determine the fair value of its investments on a recurring basis.

GAAP establishes a hierarchy

that prioritizes inputs to valuations methods.

The three levels of inputs are:

1 – Unadjusted quoted prices in active markets for identical assets or liabilities.

2 – Observable inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either

directly or indirectly.

These inputs may include quoted prices for the identical instrument on an inactive market, prices for

similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.

3 – Unobservable inputs for the asset or liability, to the extent relevant observable inputs are not available;

the Trust’s own assumptions about the assumptions a market participant would use in valuing the asset or liability and would

be based on the best information available.

Administrator, defined below, determines the NAV of the Trust on each day that the Exchange is open for regular trading, as promptly

as practicable after 4:00 p.m.

The NAV of the Trust is the aggregate value of the Trust’s assets less its accrued but

unpaid liabilities (which include accrued expenses).

In determining the Trust’s NAV, the Administrator values LTC held by

the Trust based on the price set by the Index as of 4:00 p.m.

Rather, if the Trust is a grantor trust,

each beneficial owner of Shares will be treated as directly owning its pro rata Share of the Trust’s assets and a pro rata

portion of the Trust’s income, gains, losses and deductions will “flow through” to each beneficial owner of

If the Trust were not properly classified as a grantor trust, the Trust might be classified as a partnership for U.S.

federal income tax purposes.

However, due to the uncertain treatment of digital assets, with respect to staking and including forks,

airdrops and similar occurrences for U.S.

federal income tax purposes, there can be no assurance in this regard.

If the Trust were

classified as a partnership for U.S.

federal income tax purposes, the tax consequences of owning Shares generally would not be

materially different from the tax consequences described herein, although there might be certain differences, including with respect

In addition, tax information reports provided to beneficial owners of Shares would be made in a different form.

Trust were not classified as either a grantor trust or a partnership for U.S.

federal income tax purposes, it would be classified as

a corporation for such purposes.

In that event, the Trust would be subject to entity-level U.S.

federal income tax (currently at the

rate of 21%) on its net taxable income and certain distributions made by the Trust to shareholders would be treated as taxable

dividends to the extent of the Trust’s current and accumulated earnings and profits.

Digital Asset Trading Platform Valuation

US GAAP defines fair value as the price the Trust would

receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date.

The Trust’s policy is to value investments held at fair value.

The Trust identifies and determines

the LTC principal market (or in the absence of a principal market, the most advantageous market) for GAAP purposes consistent with the

application of the fair value measurement framework in FASB ASC 820 – Fair Value Measurement.

A principal market is the market with

the greatest volume and activity level for the asset or liability.

The determination of the principal market will be based on the market

with the greatest volume and level of activity that can be accessed.

The Trust obtains relevant volume and level of activity information

and based on initial analysis will select an exchange market as the Trust’s principal market.

The net asset value (“NAV”)

and NAV per Share will be calculated using the fair value of LTC based on the price provided by this exchange market, as of 4:00 p.m.

ET on the measurement date for GAAP purposes.

The Trust will update its principal market analysis periodically and as needed to the extent

that events have occurred, or activities have changed in a manner that could change the Trust’s determination of the principal market.

Various inputs are used in determining

the fair value of assets and liabilities.

Inputs may be based on independent market data (“observable inputs”) or they may

be internally developed (“unobservable inputs”).

These inputs are categorized into a disclosure hierarchy consisting of three

broad levels for financial reporting purposes.

The level of a value determined for an asset or liability within the fair value hierarchy

is based on the lowest level of any input that is significant to the fair value measurement in its entirety.

The three levels of the fair

value hierarchy are as follows:

Unadjusted quoted prices in active markets

for identical assets or liabilities;

Inputs other than quoted

prices included within Level 1 that are observable for the asset or liability either directly or indirectly, including quoted prices for

similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not

considered to be active, inputs other than quoted prices that are observable for the asset or liability, and inputs that are derived principally

from or corroborated by observable market data by correlation or other means;

Unobservable inputs, including the Trust’s

assumptions used in determining the fair value of investments, where there is little or no market activity for the asset or liability

at the measurement date.

The following table presents information about the

Trust’s assets measured at fair value:

March 31, 2026 (Unaudited)

Investment in LTC

December 31, 2025

Investment in LTC

There were no transfers

between levels for the quarter ended March 31, 2026 or for the period ended December 31, 2025.

The following tables summarize activity in LTC for

the quarter ended March 31, 2026 and for the period from October 27, 2025 (initial share purchase date) to December 31, 2025:

Beginning balance as of January 1, 2026

LTC purchased

LTC sold for the redemption of Shares

LTC contributed in-kind for the creation of Shares

LTC distributed in-kind for the redemption of Shares

LTC transferred to pay the Sponsor fee

Net change in unrealized appreciation (depreciation) in LTC

( 2,118,115 )

Net realized gain (loss) on investment in LTC transferred to pay Sponsor fee

Net realized gain (loss) on investment in LTC sold for redemptions

Ending balance as of March 31, 2026 (Unaudited)

Beginning balance as of October 27, 2025

LTC purchased

LTC sold for the redemption of Shares

LTC contributed in-kind for the creation of Shares

LTC distributed in-kind for the redemption of Shares

LTC transferred to pay the Sponsor fee

Net change in unrealized appreciation (depreciation) in LTC

( 1,842,648 )

Net realized gain (loss) on investment in LTC transferred to pay Sponsor fee

Ending balance as of December 31, 2025

Calculation of NAV

The Administrator, defined below,

determines the NAV of the Trust on each day that the Exchange is open for regular trading, as promptly as practicable after 4:00 p.m.

The NAV of the Trust is the aggregate value of the Trust’s assets less its accrued but unpaid liabilities (which include accrued

In determining the Trust’s NAV, the Administrator values LTC held by the Trust based on the price set by the Index as

The Administrator also determines the NAV per Share.

of the Trust’s financial statements, the Trust utilizes a pricing source that is consistent with GAAP, as of the financial

statement measurement date, which may result in valuations that differ from the Trust’s daily NAV calculations.

determines in its sole discretion the valuation sources and policies used to prepare the Trust’s financial statements in

accordance with GAAP.

Trust’s NAV per Share is calculated by taking the current fair value of its total assets, subtracting any liabilities, and

dividing that total by the number of Shares.

Trust operates through a single operating and reporting segment with a primary objective of providing exposure to the price of

LTC held by the Trust, less the expenses of the Trust’s operations and other liabilities.

The Trust’s chief operating

decision maker (“CODM”) is the Sponsor.

The CODM monitors the operating results of the Trust and the Trust’s

long-term strategic asset allocation is predetermined in accordance with the terms of its prospectus, based on the defined investment

strategy against which the CODM assesses the Trust’s performance.

In addition to other metrics, the CODM uses net increase

(decrease) in net assets resulting from operations as a key metric to assess the Trust’s performance.

Trust Expenses

and Other Agreements

Trust pays the Sponsor an annual unified fee of 0.95 %

of the Trust’s LTC Holdings (the “Sponsor Fee”).

The Trust’s “LTC Holdings” is the quantity of

the Trust’s LTC plus any cash or other assets held by the Trust represented in LTC as calculated using the Index Price, less

its liabilities (which include estimated accrued but unpaid fees and expenses) represented in LTC as calculated using the Index

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

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

periods during which all or a portion of the Sponsor Fee is being waived, the Sponsor Fee accrues daily in LTC and is payable

monthly in LTC or cash.

To the extent there are any on-chain transaction fees incurred in connection with the transfers of LTC to

pay the Sponsor Fee, the Sponsor, and not the Trust, shall bear such fees.

The Sponsor may, at its sole discretion and from time to

time, waive all or a portion of the Sponsor Fee for stated periods of time.

The Sponsor is under no obligation to waive any portion

of its fees, and any such waiver shall create no obligation to waive any such fees during any period not covered by the

partial consideration for its receipt of the Sponsor Fee, the Sponsor is obligated under the Trust Agreement to assume and pay

all fees and other expenses incurred by the Trust in the ordinary course of its affairs, excluding taxes, but including:

fees of the Trust’s third-party service providers, including, but not limited to, the Marketing Agent, the Administrator,

the Custodians, the Transfer Agent, the Cash Custodian, the Index Provider, and the Trustee, (ii) the fees and expenses related

to the listing, quotation or trading of the Shares on the Exchange (including customary legal, marketing and audit fees and expenses),

(iii) legal fees and expenses incurred in the ordinary course, (iv) audit fees, (v) regulatory fees, including, if applicable,

any fees relating to the registration of the Trust and Shares, including any ongoing filings related to the offering of Shares,

under the 1933 Act or the 1934 Act, (vi) printing and mailing costs, (vii) costs of maintaining the Trust’s website and

(viii) applicable license fees (each, a “Sponsor-paid Expense” and collectively, the “Sponsor-paid Expenses”),

provided that any expense that qualifies as an Extraordinary Expense (as defined below) will not be deemed to be a Sponsor-paid

For purposes of the Trust’s financial statements, the Trust

utilizes a pricing source that is consistent with GAAP, as of the financial statement measurement date, which may result in valuations

that differ from the Trust’s daily NAV calculations.

The Sponsor determines in its sole discretion the valuation sources and policies

used to prepare the Trust’s financial statements in accordance with GAAP.

The Trust’s NAV per Share

is calculated by taking the current fair value of its total assets, subtracting any liabilities, and dividing that total by the number

Segment Reporting

The Trust operates through a

single operating and reporting segment with a primary objective of providing exposure to the price of LTC held by the Trust, less the

expenses of the Trust’s operations and other liabilities.

The Trust’s chief operating decision maker (“CODM”)

is the Principal Executive Officer.

The CODM monitors the operating results of the Trust and the Trust’s long-term strategic asset

allocation is predetermined in accordance with the terms of its prospectus, based on the defined investment strategy against which the

CODM assesses the Trust’s performance.

In addition to other metrics, the CODM uses net increase (decrease) in net assets resulting

from operations as a key metric to assess the Trust’s performance.

Trust Expenses and Other Agreements

The Trust pays the Sponsor

an annual unified fee of 0.95 % of the Trust’s LTC Holdings (the “Sponsor Fee”).

The Trust’s “LTC

Holdings” is the quantity of the Trust’s LTC plus any cash or other assets held by the Trust represented in LTC as

calculated using the Index Price, less its liabilities (which include estimated accrued but unpaid fees and expenses) represented in

LTC 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.

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

LTC Holdings.

Except for periods during which all or a portion of the Sponsor Fee is being waived, the Sponsor Fee accrues daily in

LTC and is payable monthly in LTC or cash.

To the extent there are any on-chain transaction fees incurred in connection with the

transfers of LTC to pay the Sponsor Fee, the Sponsor, and not the Trust, shall bear such fees.

The Sponsor may, at its sole

discretion and from time to time, waive all or a portion of the Sponsor Fee for stated periods of time.

The Sponsor is under no

obligation to waive any portion of its fees, and any such waiver shall create no obligation to waive any such fees during any period

not covered by the waiver.

As partial consideration for

its receipt of the Sponsor Fee, the Sponsor is obligated under the Trust Agreement to assume and pay all fees and other expenses incurred

by the Trust in the ordinary course of its affairs, excluding taxes, but including:

(i) the fees of the Trust’s third-party service

providers, including, but not limited to, the Marketing Agent, the Administrator, the Custodians, the Transfer Agent, the Cash Custodian,

the Index Provider, and the Trustee, (ii) the fees and expenses related to the listing, quotation or trading of the Shares on the Exchange

(including customary legal, marketing and audit fees and expenses), (iii) legal fees and expenses incurred in the ordinary course, (iv)

audit fees, (v) regulatory fees, including, if applicable, any fees relating to the registration of the Trust and Shares, including any

ongoing filings related to the offering of Shares, under the 1933 Act or the 1934 Act, (vi) printing and mailing costs, (vii) costs of

maintaining the Trust’s website and (viii) applicable license fees (each, a “Sponsor-paid Expense” and collectively,

the “Sponsor-paid Expenses”), provided that any expense that qualifies as an Extraordinary Expense (as defined below) will

not be deemed to be a Sponsor-paid Expense.

There is no cap on the amount of Sponsor-paid Expenses.

The Sponsor has also assumed all fees and expenses related to

the organization and offering of the Trust and the Shares.

Trust may incur certain extraordinary, nonrecurring expenses that are not Sponsor-paid Expenses, including, but not limited to,

brokerage and transaction costs associated with the sale or transfer of LTC, 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,

the Trust’s assets, or the interests of Shareholders, any indemnification of the Custodians or other agents, service providers

or counterparties of the Trust, and extraordinary legal fees and expenses, including any legal fees and expenses incurred in connection

with litigation, regulatory enforcement or investigation matters (collectively, “Extraordinary Expenses”).

extent on-chain transaction fees are incurred in connection with transfers or sales of LTC to pay Extraordinary Expenses, the

Trust will bear such fees, but to the extent there are any on-chain transaction fees incurred in connection with the transfers

of LTC to pay the Sponsor Fee or any Sponsor-paid Expenses, the Sponsor, and not the Trust, shall bear such fees.

the extent it does not have cash readily available, the Sponsor will cause the transfer or sale of LTC in such quantity as may

be necessary to permit the payment of Trust expenses and liabilities not assumed by the Sponsor or for payment of cash redemption

proceeds to financial firms that are authorized to purchase or redeem Shares with the Trust (known

as “Authorized Participants”) .

The Trust will seek to transfer or sell LTC at such times and in the smallest

amounts required to permit such payments as they become due.

With respect to transfers or sales necessary to pay Trust expenses

and liabilities that are denominated other than in LTC, the amount of LTC transferred or sold may vary from time to time depending

on the actual sales price of LTC relative to the Trust’s expenses and liabilities (e.g., if the price of LTC falls, the

amount of LTC needed to be transferred or sold to pay an expense or liability denominated in U.S.

The Sponsor has also assumed all fees

and expenses related to the organization and offering of the Trust and the Shares.

The Trust may incur certain

extraordinary, nonrecurring expenses that are not Sponsor-paid Expenses, including, but not limited to, brokerage and transaction costs

associated with the sale or transfer of LTC, 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, the Trust’s assets, or the interests

of Shareholders, any indemnification of the Custodians or other agents, service providers or counterparties of the Trust, and extraordinary

legal fees and expenses, including any legal fees and expenses incurred in connection with litigation, regulatory enforcement or investigation

matters (collectively, “Extraordinary Expenses”).

To the extent on-chain transaction fees are incurred in connection with

transfers or sales of LTC to pay Extraordinary Expenses, the Trust will bear such fees, but to the extent there are any on-chain transaction

fees incurred in connection with the transfers of LTC to pay the Sponsor Fee or any Sponsor-paid Expenses, the Sponsor, and not the Trust,

shall bear such fees.

To the extent it does not have

cash readily available, the Sponsor will cause the transfer or sale of LTC in such quantity as may be necessary to permit the payment

of Trust expenses and liabilities not assumed by the Sponsor or for payment of cash redemption proceeds to Authorized Participants (as

defined below).

The Trust will seek to transfer or sell LTC at such times and in the smallest amounts required to permit such payments

as they become due.

With respect to transfers or sales necessary to pay Trust expenses and liabilities that are denominated other than

in LTC, the amount of LTC transferred or sold may vary from time to time depending on the actual sales price of LTC relative to the Trust’s

expenses and liabilities (e.g., if the price of LTC falls, the amount of LTC needed to be transferred or sold to pay an expense or liability

denominated in U.S.

dollars will increase).

extent the Trust must buy or sell LTC, the Trust may do so through a third-party digital asset broker or dealer.

The Sponsor will

select third party brokers or dealers that it believes have implemented adequate AML, KYC and other legal compliance policies

and procedures.

the terms of each Authorized Participant Agreement, the Authorized Participants are responsible for any brokerage or transaction

costs associated with the sale or transfer of LTC incurred in connection with the fulfillment of a creation or redemption order.

(b) Administrator,

Custodians and Transfer Agent

Bancorp Fund Services, LLC, doing business as U.S.

Bank Global Fund Services (the “Administrator” and “Transfer

Agent”) serves as administrator, transfer agent and accounting agent of the Trust pursuant to a Fund Servicing Agreement.

Coinbase Custody Trust Company, LLC (the “Coinbase Custodian”) and BitGo Trust Company, Inc.

(the “BitGo Custodian”

and together with Coinbase Custodian, the “Custodians”) serve as the Trust’s Custodians.

Under the Coinbase

Custodial Services Agreement and the BitGo Custodial Services Agreement, the Custodians are responsible for safekeeping all the

Trust’s LTC allocated to each of the Custodians.

The Custodians were selected by the Sponsor.

The Sponsor is responsible

for opening accounts with the Custodians that hold the Trust’s LTC (the “LTC Accounts”), as well as facilitating

the transfer or sale of LTC required for the operation of the Trust.

Bank, N.A., an affiliate of the Administrator and Transfer

Agent serves as the cash custodian for the Trust (the “Cash Custodian”).

The Cash Custodian is responsible for safekeeping

all cash and other non-LTC assets of the Trust.

Distributors LLC is the marketing agent of the Trust (the “Marketing Agent”) and is responsible for reviewing and

approving the marketing materials, including the Trust’s website, prepared by the Sponsor for compliance with applicable

SEC and Financial Industry Regulatory Authority, Inc.

(“FINRA”) advertising laws, rules, and regulations pursuant

to a marketing agreement with the Trust.

The Marketing Agent is a broker-dealer registered under the Securities Exchange Act of

1934, as amended (the “Exchange Act”) and a member of FINRA.

With the assistance of the Marketing Agent, the Sponsor

developed a marketing plan for the Trust, prepared marketing materials regarding the Shares of the Trust, and exercises the marketing

plan of the Trust on an ongoing basis.

(d) Principal

Financial Officer

of PINE Advisors LLC (“PINE”) serve as officers of the Trust.

In consideration for these services, the Sponsor pays

PINE an annual fee.

The Sponsor also reimburses PINE for certain out-of-pocket expenses.

Share Transactions

Trust is an exchange-traded product.

The Trust issues Shares on a continuous basis and, when the Trust creates or redeems its

Shares, it does so in blocks of 10,000 Shares (a “Basket”) based on the quantity of LTC attributable to each Share

of the Trust (net of accrued but unpaid expenses and liabilities).

For a subscription of Shares, the subscription shall be in

the amount of cash needed to purchase the amount of LTC represented by the Basket being created, as calculated by the Administrator.

For a redemption of Shares, the Sponsor shall arrange for the LTC represented by the Basket to be sold and the cash proceeds distributed.

Financial firms that are authorized to purchase or redeem Shares of the Trust (“Authorized Participants”) deliver,

or facilitate the delivery of, cash to the Trust’s account with the Cash Custodian in exchange for Shares when they purchase

Shares, and the Trust delivers cash to such Authorized Participants when they redeem Shares with the Trust.

Further, Authorized

Participants do not directly or indirectly purchase, hold, deliver, or receive LTC as part of the creation or redemption process

or otherwise direct the Trust or a third party with respect to purchasing, holding, delivering, or receiving LTC as part of the

creation or redemption process.

Shares initially comprising the same Basket but offered by the Authorized Participants to the

public at different times may have different offering prices, which depend on various factors, including the supply and demand

for Shares, the value of the Trust’s assets, and market conditions at the time of a transaction.

Shareholders who buy or

sell Shares during the day from their broker may do so at a premium or discount relative to the NAV of the Shares of the Trust.

Trust creates and redeems Shares in exchange for cash or LTC.

who decide to buy or sell Shares of the Trust place their trade orders through their brokers and incur customary brokerage commissions

Authorized Participants may place orders to create and redeem baskets through the Transfer Agent.

The Transfer Agent coordinates

with the Trust's custodians to facilitate settlement of the Shares.

Sponsor is considered to be a related party to the Trust.

To the extent the Trust must buy or sell LTC, the Trust may do so through a third-party digital

asset broker or dealer.

The Sponsor will select third party brokers or dealers that it believes have implemented adequate AML, KYC and

other legal compliance policies and procedures.

Under the terms of each Authorized

Participant Agreement, the Authorized Participants will be responsible for any brokerage or transaction costs associated with the sale

or transfer of LTC incurred in connection with the fulfillment of a creation or redemption order.

(b) Administrator, Custodians

and Transfer Agent

Bancorp Fund Services,

LLC, doing business as U.S.

Bank Global Fund Services (the “Administrator” and “Transfer Agent”) serves as administrator,

transfer agent and accounting agent of the Trust pursuant to a Fund Servicing Agreement.

Coinbase Custody Trust Company, LLC (the “Coinbase

Custodian”) and BitGo Trust Company, Inc.

(the “BitGo Custodian” and together with Coinbase Custodian, the “Custodians”)

serve as the Trust’s Custodians.

Under the Coinbase Custodial Services Agreement and the BitGo Custodial Services Agreement, the

Custodians are responsible for safekeeping all the Trust’s LTC allocated to each of the Custodians.

The Custodians were selected

by the Sponsor.

The Sponsor is responsible for opening accounts with the Custodians that will hold the Trust’s LTC (the “LTC

Accounts”), as well as facilitating the transfer or sale of LTC required for the operation of the Trust.

Bank, N.A., an affiliate

of the Administrator and Transfer Agent serves as the cash custodian for the Trust (the “Cash Custodian”).

The Cash Custodian

is responsible for safekeeping all cash and other non-LTC assets of the Trust.

Paralel Distributors LLC is

the marketing agent of the Trust (the “Marketing Agent”) and is responsible for reviewing and approving the marketing materials,

including the Trust’s website, prepared by the Sponsor for compliance with applicable SEC and Financial Industry Regulatory Authority,

(“FINRA”) advertising laws, rules, and regulations pursuant to a marketing agreement with the Trust.

The Marketing Agent

is a broker-dealer registered under the Securities Exchange Act of 1934, as amended (the “Exchange Act”) and a member of

With the assistance of the Marketing Agent, the Sponsor developed a marketing plan for the Trust, prepared marketing materials

regarding the Shares of the Trust, and exercises the marketing plan of the Trust on an ongoing basis.

(d) Principal Financial Officer

Employees of PINE Advisors LLC

(“PINE”) serve as officers of the Trust.

In consideration for these services, the Sponsor pays PINE an annual fee.

also reimburses PINE for certain out-of-pocket expenses.

Capital Share Transactions

The Trust is an exchange-traded

The Trust issues Shares on a continuous basis and, when the Trust creates or redeems its Shares, it does so in blocks of 10,000

Shares (a “Basket”) based on the quantity of LTC attributable to each Share of the Trust (net of accrued but unpaid expenses

and liabilities).

Certain financial firms are authorized to purchase or redeem Shares of the Trust (“Authorized Participants”).

The manner by which creations

are made is dictated by the terms of the Authorized Participant Agreement.

Creation orders may be denominated and settled in an amount

of LTC (“In-Kind Creation Order”) or in cash (“Cash Creation Order”).

By placing an In-Kind Creation Order, an

Authorized Participant agrees to facilitate the deposit of LTC with the Custodian, either directly or indirectly through an Authorized

Participant Designee.

By placing a Cash Creation Order, an Authorized Participant agrees to facilitate the deposit of cash with the Cash

An Authorized Participant may not withdraw a creation order without the prior consent of the Sponsor in its discretion.

The manner by which redemptions

are made is dictated by the terms of the Authorized Participant Agreement.

Redemption orders are denominated and settled either in-kind

(“In-Kind Redemption Order”) or in cash (“Cash Redemption Order”).

By placing a redemption order, an Authorized

Participant agrees to facilitate the deposit of Shares with the Transfer Agent.

If an Authorized Participant fails to consummate the foregoing,

the order will be cancelled or delayed until the required Shares have been received.

An Authorized Participant may not withdraw a redemption

order without the prior consent of the Sponsor in its discretion.

Shares initially comprising

the same Basket but offered by the Authorized Participants to the public at different times may have different offering prices, which

depend on various factors, including the supply and demand for Shares, the value of the Trust’s assets, and market conditions at

the time of a transaction.

Shareholders who buy or sell Shares during the day from their broker may do so at a premium or discount relative

to the NAV of the Shares of the Trust.

Shareholders who decide to buy

or sell Shares of the Trust place their trade orders through their brokers and incur customary brokerage commissions and charges.

Only Authorized Participants

may place orders to create and redeem baskets through the Transfer Agent.

The Transfer Agent coordinates with the Trust’s custodians to

facilitate settlement of the Shares.

Share activity

for the quarter ended March 31, 2026 was as follows:

Quarter Ended March 31, 2026

(Unaudited) (a)

Number of Shares

Value of Shares

Net change in Shares created and redeemed

(a) No comparative periods have been presented as the initial share purchase date

of the Trust was October 27, 2025.

Financial Highlights

The following financial highlights relate to investment

performance and operations for a Share outstanding for the quarter ended March 31, 2026.

The total return at NAV 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.

March 31, 2026

(Unaudited) *

Net Asset Value, Beginning of Period

Net Investment Income (Loss) (a)

Net Realized and Unrealized Gain (Loss) on Investments (b)

Net Increase (Decrease) in Net Asset Value Resulting from Operations

Net Asset Value, End of Period

Market Value Per Share (c)

Total Return at Net Asset Value (d)

Total Return at Market Value (c)(d)

Ratios to Average Net Assets:

Expense Ratio (e)

Net Investment Loss (e)

* No comparative financial highlights have been presented as the initial share purchase date of the Trust was October 27, 2025.

(a) Net investment loss per share represents net investment loss divided by the daily average

shares of beneficial interest outstanding during the period.

(b) Due to timing of capital share transactions, per share amounts may not compare with amounts

appearing elsewhere within these Financial Statements.

may be later than when the Trust’s net asset value is calculated.

(d) Not annualized.

(e) Annualized.

Related Parties

The Sponsor is considered to

be a related party to the Trust.

The Trust’s operations are supported by its Sponsor.

and Contingent Liabilities

the normal course of business, the Trust may enter into contracts that contain a variety of general indemnification clauses.

Trust’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against

the Trust which have not yet occurred and cannot be predicted with any certainty.

However, the Sponsor believes the risk of loss

under these arrangements to be remote.

There were no commitments or contingencies required to be disclosed as of the date of the

financial statements.

October 27, 2025, the Trust’s registration statement became effective in accordance with the provisions of section 8(a) of the

Securities Act of 1933 and the Trust purchased $ 1,000,000

of LTC with the proceeds of the Seed Shares in connection with

the commencement of investment operations.

On October 28, 2025, the Shares of the Trust were listed on the Exchange.

As of March 31, 2026, the Sponsor did not own any

Shares of the Trust.

Commitments and Contingent Liabilities

In the normal course of business,

the Trust may enter into contracts that contain a variety of general indemnification clauses.

The Trust’s maximum exposure under

these arrangements is unknown as this would involve future claims that may be made against the Trust which have not yet occurred and cannot

be predicted with any certainty.

However, the Sponsor believes the risk of loss under these arrangements to be remote.

There were no commitments

or contingencies required to be disclosed as of the date of the financial statements.

Concentration Risk

Substantially all of the Trust’s

assets are holdings of LTC, which creates a concentration risk associated with fluctuations in the price of LTC.

Accordingly, a decline

in the price of LTC 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 LTC include negative perception of digital assets;

a lack of stability and standardized regulation in the digital

asset markets;

the closure or temporary shutdown of digital asset platforms due to fraud, business failure, security breaches or government

mandated regulation;

and a loss of investor confidence.

Subsequent Events

Sponsor has evaluated subsequent events through the date the financial statements were issued.

Based on this evaluation, no adjustments

or disclosures to the financial statements were required

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