Hashdex Nasdaq CME Crypto Index ETF 10-Q

Item 1. Financial Statements. Index to Financial Statements Documents Page HASHDEX NASDAQ CME CRYPTO INDEX ETF Statements of Assets and Liabilities at June 30, 2026 (Unaudited) and December 31, 2025 F-1 Schedule of Investments at June 30, 2026 (Unaudited) and December 31, 2025 F-2 Statements of Operations for the three months ended June 30, 2026 and 2025 (Unaudited), the six months ended June 30, 2026 (Unaudited) and the period from February 14, 2025 through June 30, 2025 (Unaudited) F-4 Statements of Changes in Net Assets for the three months ended June 30, 2026 and 2025 (Unaudited), the six months ended June 30, 2026 (Unaudited) and the period from February 14, 2025 through June 30, 2025 (Unaudited) F-5 Notes to Financial Statements (Unaudited) F-6 1 Hashdex Nasdaq CME Crypto Index ETF Statements of Assets and Liabilities June 30, 2026 December 31, 2025 (Unaudited) ASSETS Investments in Crypto Assets, at fair value (cost $ 244,687,330 and $ 123,262,904 , respectively) $ 189,911,546 $ 121,199,193 Cash 189,347 114,907 Total Assets 190,100,893 121,314,100 LIABILITIES Management fee payable, net of fees waived 31,542 26,623 Total Liabilities 31,542 26,623 NET ASSETS $ 190,069,351 $ 121,287,477 NET ASSETS CONSIST OF: Paid-in capital $ 245,497,670 $ 123,269,158 Total distributable earnings (accumulated deficit) ( 55,428,319 ) ( 1,981,681 ) NET ASSETS $ 190,069,351 $ 121,287,477 Net Asset Value (unlimited shares authorized): Total Fund (unlimited shares authorized): Shares Issued and Outstanding, no par value, unlimited amount authorized 13,040,000 5,340,000 Net Asset Value per Share $ 14.58 $ 22.71 The accompanying notes are an integral part of these financial statements. F- 1 Hashdex Nasdaq CME Crypto Index ETF Schedule of Investments June 30, 2026 (Unaudited) Description: Assets Fair Value Percentage of Net Assets Quantity Crypto Assets Bitcoin $ 149,328,624 78.57 % 2,543 Ether 20,831,886 10.96 % 13,201 XRP 10,407,497 5.48 % 9,977,468 Solana 6,502,468 3.42 % 88,337 Cardano 885,618 0.47 % 6,124,604 Stellar 782,824 0.41 % 4,212,133 Chainlink 696,899 0.37 % 96,805 Bitcoin Cash 475,730 0.25 % 2,378 Total Crypto Assets (cost $ 244,687,330 ) $ 189,911,546 99.92 % Total Investments (cost $ 244,687,330 ) $ 189,911,546 99.92 % Other Assets in Excess of Liabilities 157,805 0.08 % Total Net Assets $ 190,069,351 100.00 % The accompanying notes are an integral part of these financial statements. F- 2 Hashdex Nasdaq CME Crypto Index ETF Schedule of Investments December 31, 2025 Description: Assets Fair Value Percentage of Net Assets Quantity Crypto Assets Bitcoin $ 91,431,050 75.38 % 1,046 Ethereum 16,846,808 13.89 % 5,677 XRP 7,252,279 5.98 % 3,971,893 Solana 4,012,751 3.31 % 32,410 Cardano 832,217 0.69 % 2,499,150 Chainlink 476,931 0.39 % 38,964 Stellar 347,157 0.29 % 1,741,009 Total Crypto Assets (cost $ 123,262,904 ) $ 121,199,193 99.93 % Total Investments (cost $ 123,262,904 ) $ 121,199,193 99.93 % Other Assets in Excess of Liabilities 88,284 0.07 % Total Net Assets $ 121,287,477 100.00 % The accompanying notes are an integral part of these financial statements. F- 3 Hashdex Nasdaq CME Crypto Index ETF Statements of Operations (Unaudited) Three Months Ended June 30, 2026 (Unaudited) Three Months Ended June 30, 2025 (Unaudited) Six Months Ended June 30, 2026 (Unaudited) Period February 14, 2025* through June 30, 2025 (Unaudited) INVESTMENT INCOME (LOSS) Income: Interest income — — — — Total Income — — — — Expenses: Management fees 77,205 134,806 209,780 158,063 Other — — — 50 Total Expenses 77,205 134,806 209,780 158,113 Less waiver ( 67,403 ) ( 66,287 ) ( 79,032 ) Net Expenses 77,205 67,403 143,493 79,081 Net Investment Loss ( 77,205 ) ( 67,403 ) ( 143,493 ) ( 79,081 ) REALIZED AND CHANGE IN UNREALIZED GAIN (LOSS) Net realized loss ( 272,565 ) ( 2,687 ) ( 591,072 ) ( 198,589 ) Net change in unrealized appreciation (depreciation) ( 23,556,362 ) 27,948,504 ( 52,712,073 ) 24,203,020 Net realized and change in unrealized gain (loss) ( 23,828,927 ) 27,945,817 ( 53,303,145 ) 24,004,431 NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $ ( 23,906,132 ) $ 27,878,414 $ ( 53,446,638 ) $ 23,925,350 * Commencement of operations. No operations occurred prior to this date. The accompanying notes are an integral part of these financial statements. F- 4 Hashdex Nasdaq CME Crypto Index ETF Statements of Changes in Net Assets (Unaudited) Three Months Ended June 30, 2026 (Unaudited) Three Months Ended June 30, 2025 (Unaudited) Six Months Ended June 30, 2026 (Unaudited) Period February 14, 2025* through June 30, 2025 (Unaudited) INCREASE (DECREASE) IN NET ASSETS: OPERATIONS Net investment loss $ ( 77,205 ) $ ( 67,403 ) $ ( 143,493 ) $ ( 79,081 ) Net realized loss ( 272,565 ) ( 2,687 ) ( 591,072 ) ( 198,589 ) Net change in unrealized appreciation (depreciation) ( 23,556,362 ) 27,948,504 ( 52,712,073 ) 24,203,020 Net increase (decrease) in net assets resulting from operations ( 23,906,132 ) 27,878,414 ( 53,446,638 ) 23,925,350 CAPITAL SHARE TRANSACTIONS Shares issued 115,892,016 8,999,473 122,222,173 102,993,164 Shares redeemed — — — ( 1,309,985 ) ETF transaction fees 1,473 — 6,339 — Net increase in net assets from capital share transactions 115,893,489 8,999,473 122,228,512 101,683,179 Total increase (decrease) in net assets $ 91,987,357 $ 36,877,887 $ 68,781,874 $ 125,608,529 NET ASSETS Beginning of Period $ 98,081,994 88,730,642 $ 121,287,477 $ — End of Period $ 190,069,351 $ 125,608,529 $ 190,069,351 $ 125,608,529 * Commencement of operations. No operations occurred prior to this date. The accompanying notes are an integral part of these financial statements. F- 5 Hashdex Nasdaq CME Crypto Index ETF NOTES TO FINANCIAL STATEMENTS (Unaudited) 1. Organization Hashdex Nasdaq CME Crypto Index ETF (f/k/a Hashdex Nasdaq Crypto Index US ETF, prior to January 20, 2026) (the “Trust”) is a Delaware statutory trust organized on July 12, 2024. The Trust operates pursuant to the Fifth Amended and Restated Trust Agreement, dated January 20, 2026 (the “Trust Agreement”). The Trust issues shares of beneficial interest (“Shares”), representing fractional undivided beneficial interests in the Trust. The Shares trade on The Nasdaq Stock Market, LLC (the “Exchange”) under the symbol “NCIQ”. The principal office address of the Trust is 19 West 44th Street, Suite 200, New York, NY 10036 and the Trust’s telephone number is 800-927-9800. The Trust commenced operations on February 14, 2025 . The Trust is designed to provide investors with price exposure to certain crypto assets. Prior to January 20, 2026, such crypto assets were those included in the Nasdaq Crypto US Settlement Price™ Index (the “NCIUSS” or the “Former Index”). Effective January 20, 2026 (the “Transition Date”), the reference index changed to the Nasdaq CME Crypto Settlement Price Index™ (the “NCIS” or the “New Index”), as detailed below. References to the “Index” as used herein refer to the Former Index prior to the Transition Date and the New Index after the Transition Date. The NCIUSS represents the daily closing value of the Nasdaq Crypto US™ Index (the “NCIUS”), and the NCIS represents the daily closing value of the Nasdaq CME Crypto™ Index (the “NCI”). The NCIUSS and the NCIS apply substantially identical methodologies, reflect the same constituents, and are both designed to measure the performance of a material portion of the overall crypto asset market. The Trust’s investment objective is to align the daily changes in the net asset value (“NAV”) of the Shares with the daily price changes of the Index, minus operational expenses and liabilities, by investing in the digital assets that are constituents of the Index or may be added as constituents of the Index in the future (the “Index Constituents”). Because the Trust’s investment objective is to track the price of the Index, changes in the price of the Shares may vary from changes in the individual Index Constituents’ prices. The sponsor of the Trust is Hashdex Asset Management Ltd. (the “Sponsor”). CSC Delaware Trust Company is the trustee of the Trust (“Trustee”). U.S. Bancorp Fund Services, LLC (d/b/a U.S. Bank Global Fund Services) (“Global Fund Services” or the “Administrator”) provides administrative services to the Trust. Global Fund Services also serves as the Trust’s transfer agent (the “Transfer Agent”) and accounting agent (“Accounting Agent”). Paralel Distributors LLC is the marketing agent of the Trust (the “Marketing Agent”). Coinbase Custody Trust Company, LLC (“Coinbase Custody”), BitGo Trust Company, Inc. (“BitGo”) and Fidelity Digital Asset Services, LLC (“Fidelity”) are the custodians for the Trust’s crypto asset holdings (the “Crypto Custodians”). U.S. Bank National Association is the custodian for the Trust’s cash and cash equivalent holdings (the “Cash Custodian” and together with the Crypto Custodians, the “Custodians”). The Trust is an exchange-traded fund. The Trust does not purchase or sell digital assets other than in connection with the creation and redemption of blocks of 10,000 Shares called “Baskets” to certain broker-dealers that have entered into an agreement with the Sponsor (“Authorized Participants”), or to pay certain expenses. An investment in the Trust is subject to the risks of an investment in the Index Constituents which are subject to a high degree of price variability, as well as to the risks of crypto asset markets more generally. An investment in the Trust may be riskier than other exchange-traded products that do not directly hold crypto assets, or financial instruments related to crypto, and may not be suitable for all investors. In addition, the Index Constituents may experience pronounced and swift price changes. Accordingly, there is a potential for change in the price of Shares between the time an investor places an order to purchase or sell with its broker-dealer and the time of the actual purchase or sale resulting from the price volatility of Index Constituents. The Index will be reconstituted and rebalanced quarterly, on the first Business Day in March, June, September, and December to align the weightings of the Index Constituents with the index methodology published by the Exchange. For purposes of making these calculations, a “Business Day” means any day other than a day when the Exchange is closed for regular trading. The fiscal year end of the Trust is December 31st. F- 6 2. Significant Accounting Policies The following is a summary of significant accounting policies consistently followed by the Trust in the preparation of these financial statements. Basis of Presentation 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. Dollars. The Trust qualifies as an investment company solely for accounting purposes and not for any other purpose, and follows the accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 946, Financial Services - Investment Companies, but 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. 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, and the reported amounts of income and expenses during the reported period. Actual results could differ from those estimates. Cash Cash includes non-interest bearing non-restricted cash with one institution and is subject to credit risk to the extent its balance exceeds the federally insured limits. As of June 30, 2026 and December 31, 2025, the Trust’s balance did not exceed the federally insured limits. Investment Transactions and Investment Income For financial statement purposes, the Trust records investment transactions on the trade date of the investment purchase or sale. Gains and losses realized on sales of investments are determined by the specific identification method. Investments made by the Trust intend to be limited to investments in Index Constituents and cash and cash equivalents. Interest income is recorded on an accrual basis. The Trust intermittently receives airdrops of new crypto assets at the custodial wallet addresses holding Trust assets. The use of airdrops is generally to promote the launch and use of new crypto assets by providing a small amount of the new crypto assets to the private wallets or exchange accounts of holders of existing related crypto assets. Airdropped crypto assets can have substantially different blockchain technology that has no relation to any existing crypto asset, and many airdrops may be without value. In accordance with the Trust’s registration statement on Form S-1, the Sponsor causes the Trust to irrevocably abandon any incidental rights and IR virtual currency arising from airdrops, forks, or similar events. Accordingly, the Trust does not recognize or record any airdropped crypto assets. During the period ended June 30, 2026 and June 30, 2025, the Trust irrevocably abandoned all airdropped crypto assets received at its custodial addresses. No value was recognized in connection with any such airdrops. Federal Income Taxes The Trust is not subject to federal income taxes; each shareholder reports his/her allocable share of income, gain, loss, deductions or credits on his/her own income tax return. In accordance with GAAP, the Trust is required to determine whether a tax position is more likely than not to be sustained upon examination by the applicable taxing authority, including resolution of any tax related appeals or litigation processes, based on the technical merits of the position. The Trust files an income tax return in the U.S. federal jurisdiction and may file income tax returns in various U.S. states. The tax benefit recognized is measured as the largest amount of benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement. De-recognition of a tax benefit previously recognized results in the Trust recording a tax liability that reduces net assets. However, the Trust’s conclusions regarding this policy may be subject to review and adjustment at a later date based on factors including, but not limited to, ongoing analysis of and changes to tax laws, regulations and interpretations thereof. The Trust recognizes interest accrued related to unrecognized tax benefits and penalties related to unrecognized tax benefits in income tax fees payable, if assessed. No interest expense or penalties have been recognized as of and for the fiscal period ended June 30, 2026 and June 30, 2025. F- 7 Valuation of Crypto Assets In determining the value of the Trust’s holdings, the Trust will value the Index Constituents held by the Trust at fair value. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. The Trust identifies and determines the Trust’s principal market (or in the absence of a principal market, the most advantageous market) for crypto assets consistent with the application of the fair value measurement framework in FASB ASC 820-10, Fair Value Measurement. The principal market is the market with the greatest volume and level of activity that can be accessed. The Sponsor’s 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. The Sponsor obtains relevant volume and level of activity information and based on initial analyses will select an exchange market as the Trust’s principal market. The NAV and NAV per Share will be calculated using the fair value of the Index Constituents held by the Trust based on the price provided by this exchange market, as of 4:00 p.m. Eastern Time (“E.T.”) on the measurement date for GAAP purposes. The Sponsor 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 Sponsor’s determination of the principal market. The 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: Level 1 – Unadjusted quoted prices in active markets for identical assets or liabilities that the Trust has the ability to access. Level 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. Level 3 – Unobservable inputs for the asset or liability, to the extent relevant observable inputs are not available; representing 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. The following table summarizes the valuation of investments as of June 30, 2026 and December 31, 2025 using the fair value hierarchy: June 30, 2026 (Unaudited) Level 1 Level 2 Level 3 Balance Assets: Cryptocurrency $ 189,911,546 $ — $ — $ 189,911,546 Total $ 189,911,546 $ — $ — $ 189,911,546 December 31, 2025 Level 1 Level 2 Level 3 Balance Assets: Cryptocurrency $ 121,199,193 $ — $ — $ 121,199,193 Total $ 121,199,193 $ — $ — $ 121,199,193 There were no transfers between Level 1 and other levels for the fiscal period ended June 30, 2026 and December 31, 2025. F- 8 The cost basis of the investment of crypto assets recorded by the Trust for financial reporting purposes is the fair value of such crypto assets at the time of purchase. The cost basis recorded by the Trust may differ from proceeds collected by the Authorized Participant from the sale of the corresponding Shares to investors. Calculation of NAV and NAV per Share The Sponsor or its delegate shall calculate the Trust’s NAV each Business Day as of the earlier of the close of the Exchange or 4:00 p.m. E.T. As such, the NAV is calculated based on the value of the index price at 4:00 p.m. The assets of the Trust consist of the crypto assets held by the Trust and cash and cash equivalents. The Sponsor has the exclusive authority to determine the Trust’s NAV, which it has delegated to the Administrator. 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 of Shares outstanding. Segment Reporting The Chief Financial Officer of the Sponsor acts as the Trust’s Chief Operating Decision Maker (“CODM”) and is responsible for assessing performance and allocating resources with respect to the Trust. The CODM has concluded that the Trust operates as a single operating segment since the Trust has a single investment strategy, against which the CODM assesses performance. The financial information provided to and reviewed by the CODM is presented within the Trust’s financial statements. 3. Investment in Crypto Assets The following represents the changes in fair value of crypto assets held by the Trust during the six months ended June 30, 2026 and the period from February 14, 2025* through December 31, 2025: Fair Value Beginning balance as of January 1, 2026 $ 121,199,193 Purchases 122,898,580 Sales ( 883,082 ) Realized Gain — Realized Loss ( 591,072 ) Change in Unrealized Appreciation — Change in Unrealized Depreciation ( 52,712,073 ) Ending balance as of June 30, 2026 $ 189,911,546 Fair Value Beginning balance as of February 14, 2025* $ — Purchases 148,384,775 Sales ( 25,459,678 ) Realized Gain 673,678 Realized Loss ( 335,871 ) Change in Unrealized Appreciation 6,208,241 Change in Unrealized Depreciation ( 8,271,952 ) Ending balance as of December 31, 2025 $ 121,199,193 * Commencement of operations. No operations occurred prior to this date. 4. Trust Expenses The Trust pays the Sponsor a management fee (the “Management Fee”), monthly in arrears, in an amount equal to 0.25 % per annum of the daily NAV of the Trust. Prior to March 16, 2026, the Management Fee was 0.50 % per annum of the daily NAV of the Trust. The Management Fee is paid in consideration of the Sponsor’s services related to the management of the Trust’s business and affairs. The Management Fee is paid directly by the Trust to the Sponsor. The Management Fee accrues daily and is payable monthly in cash. F- 9 Prior to March 16, 2026, the Sponsor had agreed to temporarily reduce its Management Fee to 0.25 % per annum through December 31, 2026. In addition to the Trust’s Management Fee, the Trust pays all of its respective brokerage commissions, including applicable exchange fees and give-up fees, and other transaction related fees and expenses charged in connection with trading activities. The Trust also pays all fees and commissions related to any crypto transaction fees for on-chain transfers of assets. The Sponsor pays all other routine operational, administrative and other ordinary expenses of the Trust, including but not limited to, fees and expenses of the administrator, custodians, marketing agent, transfer agent, trustees, licensors, accounting and audit fees and expenses, tax preparation expenses, legal fees, ongoing U.S. Securities and Exchange Commission registration fees, individual Schedule K-1 preparation and mailing fees, and report preparation and mailing expenses. The Trust pays all of its non-recurring and unusual fees and expenses, if any, as determined by the Sponsor. Non-recurring and unusual fees and expenses are unexpected or unusual in nature, such as legal claims and liabilities and litigation costs or indemnification or other unanticipated expenses. Extraordinary fees and expenses also include material expenses which are not currently anticipated obligations of the Trust. Routine operational, administrative and other ordinary expenses are not deemed extraordinary expenses. In the event the Trust’s cash balance is insufficient to pay all fees and expenses, including the Management Fee, the Trust may need to sell crypto assets from time to time to pay for fees and expenses. Initial costs and expenses related to the initial offer and sale of Shares were borne by the Sponsor. Non-recurring, unusual or extraordinary expenses of the Trust will be allocated as determined by the Sponsor using a pro rata allocation methodology that allocates such Trust expenses to the Trust. Unusual or extraordinary expenses paid by Sponsor are not subject to any caps or limits. The Trust may be required to indemnify the Sponsor, and the Trust and/or the Sponsor may be required to indemnify the Trustee, Marketing Agent, Administrator, Custodians, and Transfer Agent under certain unusual or extraordinary circumstances. Any indemnification paid by the Trust and/or Sponsor generally would cover losses incurred by an indemnified party for (1) expenses incurred by a party when rendering services to the Trust or the Sponsor, (2) expenses arising from a breach of obligations or non-compliance with laws, or (3) expenses arising out of the formation, operation or termination of the Trust. Unless such expenses are specifically attributable to the Trust or arise out of the Trust’s operations, any such expenses will be allocated by the Sponsor using a pro rata methodology that allocates certain Trust expenses to the Trust. Administrator, Custodians and Transfer Agent Global Fund Services serves as the Administrator, Transfer Agent and Accounting Agent of the Trust pursuant to a Fund Servicing Agreement. U.S. Bank N.A., an affiliate of Global Fund Services, serves as the Trust’s Cash Custodian pursuant to a Custody Agreement. Coinbase Custody, BitGo and Fidelity are the Trust’s Crypto Custodians and keep custody of all of the Trust’s crypto assets, on behalf of the Trust. Marketing Agent The Trust employs Paralel Distributors LLC as the Marketing Agent for the Trust. The Marketing Agent is not entitled to compensation or reimbursement of expenses from the Trust, with any such remuneration to be paid by the Sponsor out of the Management Fee. The term of the agreement is three years, with provisions for automatic renewal and termination options available to both parties. 5. Capital Share Transactions The Trust creates and redeems Shares on a continuous basis but only in Baskets of 10,000 Shares. Only Authorized Participants can place orders to receive Baskets in exchange for cash or in-kind for crypto assets. The Sponsor and the Trust engage in crypto asset transactions for converting cash into Index Constituents to track the Index (in association with purchase orders) and crypto assets into cash (in association with redemption orders). The Administrator calculates the cost to purchase (or sell in the case of a redemption order) the amount of the Index Constituents represented by the Baskets being created (or redeemed). The amount of Index Constituents is equal to the combined NAV of the number of Shares included in the Baskets being created (or redeemed) determined as of 4:00 p.m. E.T. on the day the order to create or redeem Baskets is properly received. F- 10 Capital share transactions in the Trust were as follows: Three months ended June 30, 2026 (Unaudited) Three months ended June 30, 2025 (Unaudited) Six months ended June 30, 2026 (Unaudited) Period February 14, 2025* through June 30, 2025 (Unaudited) Shares issued 7,350,000 340,000 7,700,000 4,640,000 Shares redeemed — ( 50,000 ) Net increase 7,350,000 340,000 7,700,000 4,590,000 * Commencement of operations. No operations occurred prior to this date. 6. Related Parties The Sponsor is considered to be a related party to the Trust. The Trust’s operations are supported by its Sponsor. The Sponsor provided the initial seed creation of 10,000 Shares, which occurred on January 21, 2025, at a per-Share price of $ 25.00 . These initial seed Shares were subsequently redeemed on February 13, 2025, at $ 25.00 per Share, for a total redemption amount of $ 250,000 . The Trust commenced operations on February 14, 2025, which is the date used as the inception date for purposes of these financial statements. As of June 30, 2026, and December 31, 2025 the Trust has a liability to the Sponsor of $ 31,542 and $ 26,623 , respectively, for the June Management Fee. The Hashdex Nasdaq Crypto Index Fund (“NCI”), a fund managed by the Sponsor, holds 4,000,000 Shares. The 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. 7. Indemnification The Sponsor will not be liable to the Trust, the Trustee or any shareholder for any action taken or for refraining from taking any action in good faith, or for errors in judgment or for depreciation or loss incurred by reason of the sale of any Index Constituents or other assets of the Trust. However, the preceding liability exclusion will not protect the Sponsor against any liability resulting from its own gross negligence, bad faith, or willful misconduct. The Sponsor and each of its shareholders, members, directors, officers, employees, affiliates, and subsidiaries will be indemnified by the Trust and held harmless against any losses, liabilities or expenses incurred in the performance of its duties under the Trust Agreement without gross negligence, bad faith, or willful misconduct. The Sponsor may rely in good faith on any paper, order, notice, list, affidavit, receipt, evaluation, opinion, endorsement, assignment, draft, or any other document of any kind prima facie properly executed and submitted to it by the Trustee, the Trustee’s counsel or by any other person for any matters arising under the Trust Agreement. The Sponsor shall in no event be deemed to have assumed or incurred any liability, duty, or obligation to any Shareholder or to the Trustee other than as expressly provided for in the Trust Agreement. Such indemnity includes payment from the Trust of the costs and expenses incurred in defending against any indemnified claim or liability under the Trust Agreement. The Trustee will not be liable or accountable to the Trust or any other person or under any agreement to which the Trust or any series of the Trust is a party, except for the Trustee’s breach of its obligations pursuant to the Trust Agreement or its own willful misconduct, bad faith or gross negligence. The Trustee and each of the Trustee’s officers, affiliates, directors, employees, and agents will be indemnified by the Trust from and against any losses, claims, taxes, damages, reasonable expenses, and liabilities incurred with respect to the creation, operation or termination of the Trust, the execution, delivery or performance of the Trust Agreement or the transactions contemplated thereby; provided that the indemnified party acted without willful misconduct, bad faith or gross negligence. F- 11 8. 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. 9. Concentration Risk The majority 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 crypto assets; a lack of stability and standardized regulation in the crypto 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. In addition to bitcoin, the Trust holds investments in other crypto assets, including Ethereum, XRP, Solana, Cardano, Chainlink, Stellar, and Bitcoin Cash which collectively represented approximately 21 % and 25 % of the Trust’s net assets as of June 30, 2026 and December 31, 2025, respectively. These crypto assets are subject to risks similar to those of bitcoin, including price volatility, regulatory uncertainty, and limited adoption. A decline in the value of any of these assets, or adverse developments affecting the broader crypto asset market, could also have a material adverse effect on the Trust’s net asset value. 10. Financial Highlights Three Months Ended June 30, 2026 (Unaudited) Three Months Ended June 30, 2025 (Unaudited) Six Months Ended June 30, 2026 (Unaudited) Period February 14, 2025^ through June 30, 2025 (Unaudited) Net asset value per share, beginning of period $ 17.24 $ 20.88 $ 22.71 $ 25.00 Net investment loss (1) ( 0.01 ) ( 0.02 ) ( 0.02 ) ( 0.02 ) Net realized and unrealized gain (loss) (2) ( 2.65 ) 6.51 ( 8.11 ) 2.39 Net (decrease) increase in net assets from operations ( 2.66 ) 6.49 ( 8.13 ) 2.37 Net asset value per share, end of period $ 14.58 $ 27.37 $ 14.58 $ 27.37 Total return at net asset value (3) ( 15.43 )% 31.08 % ( 35.80 )% 9.48 % Ratios to average net assets: (4) Total expenses 0.25 % 0.50 % 0.35 % 0.50 % (5) Net expenses 0.25 % 0.25 % 0.25 % 0.25 % (5) Net investment loss ( 0.25 )% ( 0.25 )% ( 0.25 )% ( 0.25 )% (5) ^ Commencement of operations. No operations occurred prior to this date. (1) Net investment loss per share represents net investment loss divided by the daily average shares of beneficial interest outstanding during the period. (2) The amount shown for a share outstanding throughout the period may not agree with the change in the aggregate gains and losses for the period because of the timing of sales and repurchases of the Trust’s Shares in relation to fluctuating market values for the Trust. (3) Percentages are not annualized. (4) Percentages are annualized. (5) Includes activity for the period from February 14, 2025 (commencement of operations) through June 30, 2025. F- 12 11. Subsequent Events In preparing these financial statements, management of the Trust has evaluated the financial statements for the period ended June 30, 2026, and for subsequent events through the date of this filing. Other than as described below, management noted no material events requiring either recognition or disclosure in the financial statements. Staking of the Trust’s Crypto Assets. On July 23, 2026, the Trust entered into a Third Amendment to the Sponsor Agreement with the Sponsor to permit staking of the Trust’s crypto assets. On the same date, the Sponsor and CSC Delaware Trust Company, as Trustee, entered into a Sixth Amended and Restated Trust Agreement (the “Amended Trust Agreement”) reflecting the changes necessary to allow the Trust to commence staking activities. Among other things, the Amended Trust Agreement authorizes the Trust to participate, directly or indirectly, in the proof-of-stake validation protocols of the applicable Index Constituent networks, and creates a separate class of unlisted shares designated as the Sponsor Share, held exclusively by the Sponsor, which entitles the Sponsor to an allocation of Net Staking Income generated by the Trust’s staking activities. Under the Amended Trust Agreement, after the staking services provider retains its portion of any staking income, the remaining Net Staking Income is allocated as follows: (i) 100 % of Net Staking Income up to an amount equal to 25 basis points of the Trust’s net asset value attributable to the Common Shares (on an annualized basis) is allocated to the Sponsor, as holder of the Sponsor Share; and (ii) any Net Staking Income in excess of that threshold is allocated 40 % to the Sponsor, as holder of the Sponsor Share, and 60 % to the Trust for the benefit of holders of the Common Shares. The Trust expects to commence staking activities promptly following the effectiveness of these agreements, subject to operational readiness. Staking activities are expected to be conducted through Coinbase Cloud Pte. Ltd., as the Trust’s initial staking services provider. A description of the Trust’s staking program, including the Sponsor Share, the allocation of staking income, the Trust’s liquidity risk policies and procedures, and the associated risk factors, is set forth in Prospectus Supplement No. 1, dated July 23, 2026, filed pursuant to Rule 424(b)(3). These agreements were entered into subsequent to June 30, 2026 and had no effect on the financial statements as of and for the period ended June 30, 2026. F- 13