Item 1. Financial Statements
Item 1. Financial Statements
MORGAN STANLEY BITCOIN TRUST
STATEMENT OF ASSETS AND LIABILITIES
June 30, 2026*
(Unaudited)
Assets
Investment in bitcoin, at fair value (cost $ 365,180,206 )
$
299,012,624
Total assets
299,012,624
Liabilities
Delegated Sponsor Fee payable
33,151
Total liabilities
33,151
Commitments and contingent liabilities (Note 8)
—
Net assets
$
298,979,473
Net assets consist of:
Paid-in-capital
$
365,837,954
Accumulated loss
( 66,858,481 )
Net Assets
$
298,979,473
Shares issued and outstanding, no par value, unlimited amount authorized
17,650,000
Net asset value per Share
$
16.94
*
No comparative statement has been provided as the Trust’s operations commenced on April 7, 2026.
The accompanying notes are an integral part of the Financial Statements.
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MORGAN STANLEY BITCOIN TRUST
SCHEDULE OF INVESTMENT
Quantity of
June 30, 2026* (Unaudited)
Bitcoin
Cost
Fair Value
% of Net Assets
Digital assets
Investment in bitcoin
5,059.30771216
$
365,180,206
$
299,012,624
100.01
%
Total investment in bitcoin
5,059.30771216
$
365,180,206
$
299,012,624
100.01
%
Liabilities in excess of other assets
( 33,151 )
( 0.01 )
%
Net assets
$
298,979,473
100.00
%
*
No comparative statement has been provided as the Trust’s operations commenced on April 7, 2026.
The accompanying notes are an integral part of the Financial Statements.
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MORGAN STANLEY BITCOIN TRUST
STATEMENT OF OPERATIONS
For the period
April 7, 2026
(commencement
of operations)
through
June 30, 2026*
(Unaudited)
Investment income
Investment income
$
—
Total income
—
Expenses
Delegated Sponsor Fee
72,288
Total expenses
72,288
Net investment loss
( 72,288 )
Realized and unrealized loss
Net realized loss on investment in bitcoin sold to pay Delegated Sponsor Fee
( 8,283 )
Net realized loss on investment in bitcoin sold for redemption of Shares
( 610,328 )
Net change in unrealized depreciation on investment in bitcoin
( 66,167,582 )
Net realized and unrealized loss
( 66,786,193 )
Net decrease in net assets resulting from operations
$
( 66,858,481 )
*
No comparative statement has been provided as the Trust’s operations commenced on April 7, 2026.
The accompanying notes are an integral part of the Financial Statements.
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MORGAN STANLEY BITCOIN TRUST
STATEMENT OF CHANGES IN NET ASSETS
For the period
April 7, 2026
(commencement
of operations)
through
June 30, 2026*
(Unaudited)
Operations:
Net investment loss
$
( 72,288 )
Net realized loss on investment in bitcoin sold to pay Delegated Sponsor Fee
( 8,283 )
Net realized loss on investment in bitcoin sold for redemption of Shares
( 610,328 )
Net change in unrealized depreciation on investment in bitcoin
( 66,167,582 )
Net decrease in net assets resulting from operations
( 66,858,481 )
Capital Share Transactions:
Contributions for Shares issued
371,098,824
Distributions for Shares redeemed
( 5,260,870 )
Net increase in net assets from capital share transactions
365,837,954
Net increase in net assets from operations and capital share transactions
298,979,473
Net assets, beginning of period
—
Net assets, end of period
$
298,979,473
Change in Shares outstanding:
Shares outstanding, beginning of period
—
Shares issued
17,900,000
Shares redeemed
( 250,000 )
Net increase in Shares
17,650,000
Shares outstanding at end of period
17,650,000
*
No comparative statement has been provided as the Trust’s operations commenced on April 7, 2026.
The accompanying notes are an integral part of the Financial Statements.
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MORGAN STANLEY BITCOIN TRUST
STATEMENT OF CASH FLOWS
For the period
April 7, 2026
(commencement
of operations)
through
June 30, 2026*
(Unaudited)
Cash flows from operating activities
Net decrease in net assets resulting from operations
$
( 66,858,481 )
Adjustments to reconcile net increase in net assets resulting from operations to net cash provided by (used in) operating activities:
Purchases of bitcoin
( 200,271,624 )
Proceeds from bitcoin sold to pay Delegated Sponsor Fee
39,137
Proceeds from bitcoin sold for redemption of Shares
5,260,870
Net realized loss from investment in bitcoin sold to pay Delegated Sponsor Fee
8,283
Net realized loss from investment in bitcoin sold for redemption of Shares
610,328
Net change in unrealized depreciation on investment in bitcoin
66,167,582
Increase in accrued Delegated Sponsor Fee
33,151
Net cash used in operating activities
( 195,010,754 )
Cash flows from financing activities
Proceeds for Shares issued
200,271,624
Payments for Shares redeemed
( 5,260,870 )
Net cash provided by financing activities
195,010,754
Net increase (decrease) in cash
—
Cash, beginning of period
—
Cash, end of period
$
—
Supplemental Information and Non-Cash Financing Activities
Bitcoin received for the issuance of Shares
$
170,827,200
Bitcoin distributed for the redemption of Shares
—
*
No comparative statement has been provided as the Trust’s operations commenced on April 7, 2026.
The accompanying notes are an integral part of the Financial Statements.
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MORGAN STANLEY BITCOIN TRUST
Notes to Financial Statements (Unaudited)
June 30, 2026
1. Organization
Morgan Stanley Bitcoin Trust (the “Trust”) was organized on December 16, 2025 as a Delaware Statutory Trust pursuant to the Delaware Statutory Trust Act (“DSTA”), and is governed by the provisions of the Second Amended and Restated Trust Agreement (the “Trust Agreement”). The Trust is an exchange-traded fund (“ETF”) that issues common shares of beneficial interest (the “Shares”) that trade on the NYSE Arca, Inc. (the “Exchange”). The Shares were listed for trading on the Exchange on April 8, 2026, under the ticker symbol “MSBT.”
The Trust’s investment objective is to seek to track the performance of bitcoin, as measured by the performance of the CoinDesk Bitcoin Benchmark 4PM NY Settlement Rate (the “Pricing Benchmark”), adjusted for the Trust’s expenses and other liabilities. The Pricing Benchmark is calculated by CoinDesk Indices, Inc. (the “Benchmark Provider”).
The Trust is sponsored by Morgan Stanley Investment Management Inc. (the “Delegated Sponsor”), a wholly owned subsidiary of Morgan Stanley. The Delegated Sponsor arranged for the creation of the Trust and is responsible for the ongoing registration of the Shares for their public offering in the United States and the listing of Shares on the Exchange.
CSC Delaware Trust Company, a Delaware trust company (the “DE Trustee”), acts as the DE Trustee of the Trust for the purpose of creating a Delaware statutory trust in accordance with the Delaware Statutory Trust Act (“DSTA”). The DE Trustee is appointed to serve as the trustee of the Trust in the State of Delaware for the sole purpose of satisfying the requirement of Section 3807(a) of the DSTA that the Trust have at least one trustee with a principal place of business in the State of Delaware.
AGS Trustees Limited, a Cayman Islands limited liability company, serves as the Cayman Trustee to the Trust. The Cayman Trustee is a wholly owned controlled subsidiary of Appleby Global Services (Cayman) Limited, also a company incorporated in the Cayman Islands with limited liability, which holds a Full Mutual Fund Administrator and Trust license with the Cayman Islands Monetary Authority. Each of the Cayman Trustee and Appleby Global Services (Cayman) Limited is a regulated entity in the Cayman Islands.
The Bank of New York Mellon (“BNY”) serves as the Trust’s administrator, cash custodian, and transfer agent (the “Administrator,” “Cash Custodian,” or “Transfer Agent”).
Coinbase Custody Trust Company, LLC. together with BNY (“Bitcoin Custodians”) serve as the Trust’s bitcoin custodians and are responsible for safekeeping all of the bitcoin owned by the Trust.
Foreside Fund Services, LLC (the “Marketing Agent”) is responsible for reviewing and approving the marketing materials prepared by the Delegated Sponsor for compliance with applicable SEC and FINRA advertising laws, rules, and regulations.
On March 9, 2026, the Delegated Sponsor, in its capacity as Audit Seed Investor, subject to conditions, purchased Seed Creation Baskets comprising 2 Shares at a per-Share price of $ 50.00 . Total proceeds to the Trust from the sale of these Seed Creation Baskets were $ 100 . Delivery of the Seed Creation Baskets was made on March 9, 2026. These Seed Creation Baskets were redeemed for cash on March 19, 2026. Subsequent to March 19, 2026 until April 7, 2026 (commencement of operations), there was no activity within the Trust.
On April 7, 2026, the Delegated Sponsor, in its capacity as the Seed Capital Investor purchased the Initial Seed Creation Baskets comprising of 50,000 Shares (the “Initial Seed Creation Baskets”) at a per-share price of $ 19.70 . Total proceeds to the Trust from the sale of the Initial Seed Creation Baskets were $ 985,226 . On April 7, 2026, the Trust purchased 14.33574150 bitcoins with the proceeds of the Initial Seed Creation Baskets by transacting with a Bitcoin Counterparty (as defined below) to acquire bitcoin on behalf of the Trust in exchange for cash provided by the Delegated Sponsor in its capacity as the Initial Seed Capital Investor.
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The statement of assets and liabilities and schedule of investment on June 30, 2026, and the statements of operations, changes in net assets, and cash flows for the period ended June 30, 2026, have been prepared on behalf of the Trust and are unaudited. In the opinion of management of the Delegated Sponsor of the Trust, all adjustments (which include normal recurring adjustments) necessary to present fairly the financial position and results of operations for the period ended June 30, 2026, and for all interim periods presented have been made. In addition, interim period results are not necessarily indicative of results for a full-year period.
2. Summary of Significant Accounting Policies
The following is a summary of significant accounting policies consistently followed by the Trust in the preparation of its financial statements. The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). The Trust is an investment company and follows the specialized accounting and reporting guidance in the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC” or “Codification”) Topic 946, Financial Services — Investment Companies. Rules and interpretive releases of the Securities and Exchange Commission (“SEC”) under authority of federal laws are also sources of authoritative GAAP for SEC registrants.
Use of Estimates
The preparation of financial statements in conformity with GAAP requires management to make certain 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 and the reported amounts of increases and decreases in the net assets from operations during the reporting period. Actual results could differ from those estimates.
Cash
Cash, if any, includes non-interest bearing, non-restricted cash maintained with the Cash Custodian.
Investment Valuation
The Trust’s investment in bitcoin is recorded on the financial statements at fair value in accordance with FASB ASC Topic 820, “Fair Value Measurements and Disclosures” (“ASC 820”). Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A fair value measurement assumes that the transaction to sell the asset or transfer the liability takes place either in the principal market for the asset or liability or, in the absence of a principal market, in the most advantageous market for the asset or liability. ASC 820 defines “principal market” as the market with the greatest volume and level of activity for the asset or liability. The determination of the principal market (and, as a result, the market participants in the principal market) is made from the perspective of the reporting entity and the reporting entity must have access to the principal (or most advantageous) market at the measurement date. ASC 820 defines “most advantageous market” as the market that maximizes the amount that would be received to sell the asset or minimizes the amount that would be paid to transfer the liability, after taking into account transaction costs and transportation costs. Based on the foregoing, the Trust has determined the value of the Trust’s bitcoin using the Pricing Benchmark is not in accordance with GAAP, and therefore, the Pricing Benchmark is not used in the Trust’s financial statements. The Trust’s bitcoin are carried, for financial statement purposes, at fair value, as required by GAAP. The Trust determines the fair value of bitcoin based on the price provided by the bitcoin market that the Trust considers its “principal market” as of 11:59:59 p.m. ET on the valuation date. The net asset value (“NAV”) of the Trust determined on a GAAP basis is referred to in this Quarterly Report on Form 10-Q as a “Principal Market NAV,” and the NAV of the Trust per Share determined on a GAAP basis is referred to as “Principal Market NAV per Share.”
ASC 820 has established a three-tier hierarchy of inputs to be used when determining fair value measurements for disclosure purposes. Inputs refer broadly to the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk - for example, the risk inherent in a particular valuation technique used to measure fair value (such as a pricing model) and/or the risk inherent in the inputs to the valuation technique. Inputs may be observable or unobservable. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability. Observable inputs are based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability. Unobservable inputs are based on the best information available in the circumstances. The three-tier hierarchy of inputs is summarized in the three broad levels listed below:
Level 1 – quoted prices in active markets for identical assets or liabilities
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Level 2 – other significant observable inputs (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)
Level 3 – significant unobservable inputs (including the Trust’s assumptions in determining the fair value of investments)
Amount at
Fair Value Measurement Using
June 30, 2026*
Fair Value
Level 1
Level 2
Level 3
Assets
Investment in bitcoin
Digital assets
$
299,012,624
$
299,012,624
$
—
$
—
*
No comparative table has been provided as the Trust’s operations commenced on April 7, 2026.
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 (as defined below) from the sale of the corresponding Shares to investors.
Income Taxes
The Trust is classified as a grantor trust for United States federal income tax purposes, and accordingly, no provision for federal income taxes is required. The Trust’s income, expenses, gains, and losses are passed through to shareholders. Each sale of bitcoin by the Trust constitutes a taxable event to shareholders. The Delegated Sponsor has analyzed applicable tax laws and regulations and their application to the Trust as of June 30, 2026, and does not believe there are any uncertain tax positions that require recognition of a tax liability. All tax years since the Trust’s inception remain open for examination, and there were no examinations in progress at period end.
If a tax position does not meet the minimum statutory threshold to avoid the incurring of penalties, an expense for the amount of the statutory penalty and interest, if applicable, shall be recognized in the Statement of Operations in the period in which the position is claimed or expected to be claimed.
Investment Transactions
The Trust considers investment transactions to be the purchase or receipt of bitcoin for Share creations and the sale or delivery of bitcoin for Share redemptions or the sale of bitcoin for payment of expenses. The Trust records its investments 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 Delegated Sponsor Fee (as defined below).
Calculation of Net Asset Value
On each Business Day, as soon as practicable after 4:00 p.m. ET, the NAV 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 Administrator computes the NAV per Share by dividing the NAV of the Trust by the number of Shares outstanding on the date the computation is made.
3. Trust Expenses
The Trust pays a unitary Delegated Sponsor Fee which is accrued daily at an annualized rate of 0.14 % of the NAV of the Trust (the “Delegated Sponsor Fee”). The Delegated Sponsor Fee is paid by the Trust to the Delegated Sponsor as compensation for services performed under the Trust Agreement. The Delegated Sponsor Fee shall be paid in cash and not less than monthly in arrears by the Trust. The Delegated Sponsor has agreed to pay all operating expenses (except for litigation expenses and other extraordinary expenses) out of the Delegated Sponsor Fee.
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As partial consideration for receipt of the Delegated Sponsor Fee, the Delegated Sponsor shall 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 fee payable to the Marketing Agent for services it provides to the Trust, if applicable, (ii) fees to the Administrator, if any, (iii) fees to the Bitcoin Custodians, (iv) fees to the Transfer Agent, (v) fees to the Trustees, (vi) the fees and expenses related to the initial listing of Shares on the Exchange, (vii) the fees and expenses related to any future listing, trading or quotation of the Shares on any listing exchange or quotation system (including legal, marketing and audit fees and expenses), (viii) ordinary course legal fees and expenses but not litigation-related expenses, (ix) audit fees, (x) regulatory fees, including if applicable any fees relating to the registration of the Shares under the Securities Act of 1933, as amended or the Securities Exchange Act of 1934, as amended (“Exchange Act”), (xi) printing and mailing costs, (xii) costs of maintaining the Delegated Sponsor’s website and (xiii) applicable license fees (each, a “Sponsor-paid Expense” and together, the “Sponsor-paid Expenses”), provided that any expense that qualifies as an Additional Trust Expense (as defined below) will be deemed to be an Additional Trust Expense and not a Sponsor-paid Expense. There is currently no predetermined cap on the aggregate amount of Sponsor-paid expenses. Should the Trust implement a predetermined cap on aggregate Sponsor-paid expenses, the Trust will notify the owners of the beneficial interests of Shares in a prospectus supplement or in its periodic Exchange Act reports, as applicable, and on the Delegated Sponsor’s website.
The Delegated Sponsor will not, however, assume certain extraordinary, non-recurring expenses that are not Sponsor-paid Expenses, including, but not limited to, taxes and governmental charges, expenses and costs of any extraordinary services performed by the Delegated Sponsor (or any other service provider) on behalf of the Trust to protect the Trust or the interests of Shareholders, any indemnification of the Bitcoin Custodians, Administrator 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, “Additional Trust Expenses”). In the Delegated Sponsor’s sole discretion as a delegate of the Cayman Trustee, all or any portion of a Sponsor-paid Expense may be redesignated as an Additional Trust Expense, if, among other reasons, the Delegated Sponsor determines that a Sponsor-paid Expense is an extraordinary, non-recurring expense of the Trust.
4. Related Parties
The Delegated Sponsor and the Trustee are considered to be related parties to the Trust. As of June 30, 2026, the Delegated Sponsor held approximately 5.6 % of the outstanding Shares of the Trust. The Trustee’s fee is paid by the Delegated Sponsor and is not a separate expense of the Trust.
5. Indemnifications
The Delegated Sponsor has agreed to indemnify, defend and hold harmless the Trustee and its officers, directors, employees and agents from and against any losses, damages, liabilities, claims, actions, suits, costs, expenses, disbursements (including the reasonable fees and expenses of counsel), taxes and penalties of any kind arising out of or in connection with the performance of the Trust Agreement, the creation, operation, administration or termination of the Trust, or the transactions contemplated thereby, except to the extent resulting from the willful misconduct, bad faith or gross negligence of the indemnified party.
The Trust enters into contracts that contain a variety of 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 that have not yet occurred.
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6. Fair Value of Bitcoin
As of June 30, 2026*, the Trust had a closing balance of 5,059.30771216 bitcoin with a value of $ 299,012,624 , based on the price of bitcoin in the Trust’s bitcoin principal market as of 11:59:59 p.m. ET of $ 59,101.49 on June 30, 2026.
The following represents the changes in quantity of bitcoin and the respective fair value on June 30, 2026*:
Quantity of
bitcoin
Fair Value
Beginning balance as of April 7, 2026 (commencement of operations)
—
$
—
Bitcoin purchased
2,740.72117392
200,271,624
Bitcoin received for the issuance of Shares
2,390.82968014
170,827,200
Bitcoin sold for the redemption of Shares
( 71.66411800 )
( 5,260,870 )
Bitcoin sold to pay Delegated Sponsor Fee
( 0.57902390 )
( 39,137 )
Net realized loss on investment in bitcoin sold to pay Delegated Sponsor Fee
—
( 8,283 )
Net realized loss on investment in bitcoin sold for redemption of Shares
—
( 610,328 )
Change in unrealized depreciation on investment in bitcoin
—
( 66,167,582 )
Ending balance as of June 30, 2026*
5,059.30771216
$
299,012,624
*
No comparative table has been provided as the Trust’s operations commenced on April 7, 2026.
7. Creation and Redemption of Shares
When the Trust sells or redeems its Shares, bitcoin will be transferred into or out of the Trust, as applicable, in exchange for blocks of 10,000 Shares (a “Basket”) that are based on the quantity of bitcoin attributable to each Share of the Trust (net of accrued but unpaid Delegated Sponsor Fees and any accrued but unpaid extraordinary expenses or liabilities).
The Transfer Agent will facilitate the settlement of Shares in response to the placement of creation orders and redemption orders from Authorized Participants (as defined below). The Trust only creates or redeems its Shares at NAV.
Financial firms that are authorized to purchase Shares from or redeem Shares to the Trust (known as “Authorized Participants”) may purchase Shares in cash by depositing cash in the Trust’s account with the Cash Custodian. This will cause the Delegated Sponsor, on behalf of the Trust, to automatically instruct a designated third party, who is not an Authorized Participant but who may be an affiliate of an Authorized Participant and with whom the Delegated Sponsor has entered into an agreement on behalf of the Trust (each such third party, or the Prime Broker or the Lender, as applicable, a “Bitcoin Counterparty”), to (i) purchase the amount of bitcoin equivalent in value to the cash deposit amount associated with the order and (ii) deposit the resulting bitcoin amount in the Trust’s account with the Bitcoin Custodians, resulting in the Transfer Agent crediting the applicable amount of Shares to the Authorized Participant. Authorized Participants may also purchase Shares in-kind. To purchase Shares in-kind, an Authorized Participant delivers, or arranges for the delivery by the Authorized Participant’s designated agent of, bitcoin to the Trust’s account with the Bitcoin Custodians in exchange for Shares.
When such an Authorized Participant redeems its Shares in cash, the Delegated Sponsor, on behalf of the Trust will direct the Bitcoin Custodian to transfer bitcoin to a Bitcoin Counterparty, who will sell the bitcoin to be executed, in the Delegated Sponsor’s reasonable efforts, at the Pricing Benchmark price used by the Trust to calculate the Trust’s NAV, taking into account any spread, commissions, or other trading costs and deposit the cash proceeds of such sale in the Trust’s account with the Cash Custodian for settlement with the Authorized Participant. Any slippage incurred (including, but not limited to, any trading fees, spreads, or commissions), on a cash equivalent basis, will be the responsibility of the Authorized Participant and not of the Trust or Delegated Sponsor. Authorized Participants may also redeem Shares in-kind. When such an Authorized Participant redeems Shares in-kind, the Trust, through the Bitcoin Custodians, will deliver bitcoin to the Authorized Participant, or a designated agent or client thereof, in exchange for its Shares.
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8. Commitments and Contingent Liabilities
In the normal course of business, the Trust may enter into contracts with service providers that contain general indemnification clauses, as disclosed in Note 5, Indemnifications. The Trust’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Trust which cannot be predicted with any certainty.
9. Digital Asset Risk
The Trust invests substantially all of its assets in bitcoin. Bitcoin is a digital asset (i.e., a cryptocurrency) whose ownership and behavior are determined by participants in an online, peer-to-peer network that connects computers that run publicly accessible, or “open source,” software that follows the rules and procedures governing the Bitcoin network. Bitcoin is a relatively new asset class and is subject to unique and substantial risks, and historically, has been subject to significant price volatility. The price of bitcoin could drop precipitously (including to zero). These factors and events could have a significant negative impact on the Trust.
10. Concentration Risk
Unlike other funds that may invest in diversified assets, the Trust’s investment strategy is concentrated in a single asset within a single asset class. This concentration maximizes the degree of the Trust’s exposure to a variety of market risks associated with bitcoin and digital assets. By concentrating its investment strategy solely in bitcoin, any losses suffered as a result of a decrease in the value of bitcoin can be expected to reduce the value of an interest in the Trust and will not be offset by other gains if the Trust were to invest in underlying assets that were diversified.
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11. Financial Highlights*
For the period
April 7, 2026
(commencement
of operations)
through
Per Share Performance (for a Share outstanding throughout the period presented)
June 30, 2026*
NAV per Share, beginning of period
$
19.70
Net investment loss (a)
( 0.01 )
Net realized and unrealized loss
( 2.75 )
Net change in net assets from operations (b)
( 2.76 )
NAV per Share, end of period (f)
$
16.94
Total return (c)(d)(f)
( 14.01 )
%
Ratio to average net assets
Net investment loss (e)
( 0.14 )
%
Net expenses (e)
0.14
%
*
No comparative table has been provided as the Trust’s operations commenced on April 7, 2026.
(a) Based on average Shares outstanding during the period.
(b) The amounts reported for a Share outstanding may not agree with the change in aggregate gains and losses on investment for the period due to the timing of Share transactions in relation to the fluctuating fair values of the Trust’s underlying investment.
(c) Based on the change in NAV per Share during the period.
(d) Not annualized.
(e) Annualized.
(f) NAV per Share and total return have been calculated on net assets which include adjustments made in accordance with GAAP required at period end for financial reporting purposes.
12. Segment Reporting
An operating segment is defined in FASB ASC Topic 280, Segment Reporting, as a component of a public entity that engages in business activities from which it may recognize revenues and incur expenses, has operating results that are regularly reviewed by the public entity’s Chief Operating Decision Maker (“CODM”) to make decisions about resources to be allocated to the segment and assess its performance, and has discrete financial information available. Selective members of the Executive Management Committee and other senior personnel of the Delegated Sponsor act as the Trust’s CODM. The Trust represents a single operating segment, as the CODM monitors the operating results of the Trust as a whole and the Trust’s long-term strategic asset allocation is pre-determined in accordance with the terms of its Trust agreement, based on a defined investment strategy which is executed by the Delegated Sponsor. The financial information in the form of the Trust’s assets, total return, expense ratio and changes in net assets (i.e., changes in net assets resulting from operations, creations and redemptions), which are used by the CODM to assess the segment’s performance versus the Trust’s comparative benchmarks and to make resource allocation decisions for the Trust’s single segment, is consistent with that presented within the Trust’s financial statements. Segment assets are reflected on the accompanying statement of assets and liabilities as “total assets” and significant segment expenses are listed on the accompanying statement of operations.
13. Subsequent Events
In preparation of these financial statements, management has evaluated the events and transactions subsequent to June 30, 2026, through August 13, 2026, the date when these financial statements were issued, and determined that there are no subsequent events or transactions that would require adjustments to or disclosures in the Trust’s financial statements.
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Text extracted from the filing as submitted to EDGAR. Formatting, tables and exhibits are simplified for reading; the original document is authoritative for anything you rely on.