0000930413-23-001597.txt : 20230509 0000930413-23-001597.hdr.sgml : 20230509 20230509103059 ACCESSION NUMBER: 0000930413-23-001597 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 43 CONFORMED PERIOD OF REPORT: 20230331 FILED AS OF DATE: 20230509 DATE AS OF CHANGE: 20230509 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Osprey Bitcoin Trust CENTRAL INDEX KEY: 0001767057 STANDARD INDUSTRIAL CLASSIFICATION: [6221] IRS NUMBER: 832424407 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-56307 FILM NUMBER: 23900608 BUSINESS ADDRESS: STREET 1: 1241 POST ROAD STREET 2: 2ND FLOOR CITY: FAIRFIELD STATE: CT ZIP: 06824 BUSINESS PHONE: 914-214-4697 MAIL ADDRESS: STREET 1: 1241 POST ROAD STREET 2: 2ND FLOOR CITY: FAIRFIELD STATE: CT ZIP: 06824 10-Q 1 c106305_10q-ixbrl.htm

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the quarterly period ended March 31, 2023

 

or

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the transition period from          to          

Commission File Number 000-56307

 

Osprey Bitcoin Trust

(Exact Name of Registrant as Specified in Its Charter)

 

Delaware   37-6695894
(State or Other Jurisdiction of
Incorporation or Organization)
  (I.R.S. Employer
Identification No.)

 

1241 Post Road, 2nd Floor
Fairfield, CT 06824
(Address of Principal Executive Offices) (Zip Code)
(914) 214-4697
(Registrant’s telephone number, including area code)

 

 

 

Securities registered pursuant to Section 12(b) of the Act: None

     
     
Title of each class Trading Symbol(s) Name of each exchange on which registered
N/A N/A N/A
     

Securities registered pursuant to Section 12(g) of the Act: Osprey Bitcoin Trust Units

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes  No 

 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes  No 

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer   Accelerated filer
         
Non-accelerated filer   Smaller reporting company
         
      Emerging growth company

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes  No 

 

Number Units of the registrant outstanding as of April 18th, 2023: 8,340,536

 
 

OSPREY BITCOIN TRUST
TABLE OF CONTENTS

 

    Page
     
  Statement Regarding Forward-Looking Statements 2
     
  Industry and Market Data 3
   
PART I – FINANCIAL INFORMATION  
     
Item 1. Financial Statements (Unaudited) 4
     
  Statements of Assets and Liabilities at March 31, 2023 (unaudited) and December 31, 2022 4
     
  Schedules of Investment at March 31, 2023 (unaudited) and December 31, 2022 5
     
  Statements of Operations (unaudited) for the three months ended March 31, 2023 and 2022 6
     
  Statements of Changes in Net Assets (unaudited) for the three months ended March 31, 2023 and 2022 7
     
  Notes to the Financial Statements (unaudited) 8
     
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations 15
     
Item 3. Quantitative and Qualitative Disclosures about Market Risk 19
     
Item 4. Controls and Procedures 19
   
PART II – OTHER INFORMATION   
     
Item 1. Legal Proceedings 20
     
Item 1A.  Risk Factors 20
     
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 20
     
Item 3. Defaults Upon Senior Securities 20
     
Item 4. Mine Safety Disclosures 20
     
Item 5. Other Information 20
     
Item 6. Exhibits 21
   
SIGNATURES 22
 

STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

 

This Quarterly Report on Form 10-Q (this “Quarterly Report”) contains “forward-looking statements” with respect to the financial conditions, results of operations, plans, objectives, future performance and business of Osprey Bitcoin Trust (the “Trust”). Statements preceded by, followed by or that include words such as “may,” “might,” “will,” “should,” “expect,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “potential” or “continue,” the negative of these terms and other similar expressions are intended to identify some of the forward-looking statements. All statements (other than statements of historical fact) included in this Quarterly Report that address activities, events or developments that will or may occur in the future, including such matters as changes in market prices and conditions, the Trust’s operations, the plans of Osprey Funds, LLC, the sponsor of the Trust (the “Sponsor”), references to the Trust’s future success and other similar matters are forward-looking statements. These statements are only predictions. Actual events or results may differ materially from such statements. These statements are based upon certain assumptions and analyses the Sponsor made based on its perception of historical trends, current conditions and expected future developments, as well as other factors appropriate in the circumstances. You should specifically consider the numerous risks outlined under “Risk Factors.” Whether or not actual results and developments will conform to the Sponsor’s expectations and predictions, however, is subject to a number of risks and uncertainties, including:

 

the risk factors discussed in this Quarterly Report and in “Item 1A. Risk Factors” of the Trust’s Annual Report on Form 10-K for the year ended December 31, 2022 (the “Annual Report”), including the particular risks associated with new technologies such as Bitcoin and blockchain technology;
   
the legal challenges associated with conducting an ongoing redemption program and our plans to begin considering a limited periodic redemption program or an open-ended redemption program;
   
the economic conditions in the Bitcoin industry and market, including any prolonged substantial reduction in Bitcoin prices and the impact of the failure of several prominent crypto trading venues and lending platforms on the crypto economy;
   
general economic, market and business conditions;
   
the use of technology by us and our vendors, including the Custodian (as defined herein), in conducting our business, including disruptions in our computer systems and data centers and our transition to, and quality of, new technology platforms;
   
changes in laws or regulations, including those concerning taxes, made by governmental authorities or regulatory bodies;
   
the costs and effect of any litigation or regulatory investigations;
   
our ability to maintain a positive reputation;
   
other world economic and political developments, such as the ongoing conflict in Ukraine; and
   
  the Sponsor’s conflict of interest in allocating resources among its different clients and the pursuit of future business or investment opportunities by the Sponsor, its officers and/or affiliated entities.
   

Consequently, all the forward-looking statements made in this Quarterly Report are qualified by these cautionary statements, and there can be no assurance that the actual results or developments the Sponsor anticipates will be realized or, even if substantially realized, that they will result in the expected consequences to, or have the expected effects on, the Trust’s operations or the value of the Units. Should one or more of the risks discussed under “Item 1A. Risk Factors” in this Quarterly Report or “Item 1A. Risk Factors” of the Trust’s Annual Report, or other uncertainties materialize, or should underlying assumptions prove incorrect, actual outcomes may vary materially from those described in forward-looking statements. Forward-looking statements are made based on the Sponsor’s beliefs, estimates and opinions on the date the statements are made and neither the Trust nor the Sponsor is under a duty or undertakes an obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change, other than as required by applicable laws. Moreover, neither the Trust, the Sponsor, nor any other person assumes responsibility for the accuracy and completeness of any of these forward-looking statements.

 

INDUSTRY AND MARKET DATA

 

Although we are responsible for all disclosure contained in this Quarterly Report on Form 10-Q, in some cases we have relied on certain market and industry data obtained from third-party sources that we believe to be reliable. Market estimates are calculated by using independent industry publications in conjunction with our assumptions regarding the Bitcoin industry and market. While we are not aware of any misstatements regarding any market, industry or similar data presented herein, such data involves risks and uncertainties and is subject to change based on various factors, including those discussed under the headings “Statement Regarding Forward-Looking Statements.”

 

PART I – FINANCIAL INFORMATION

 

Item 1. Financial Statements (Unaudited)

 

Osprey Bitcoin Trust

Statements of Assets and Liabilities

March 31, 2023 and December 31, 2022

 

(Amounts in U.S. dollars, except units issued and outstanding)

 

   March 31, 2023
(Unaudited)
  December 31, 2022
Assets          
Investment in Bitcoin, at fair value (cost $75,794,346 and $75,816,514), respectively)   $79,331,020    $46,253,445 
Cash   -    257 
Other assets   18,534    24,600 
Total assets   79,349,554    46,278,302 
           
Liabilities          
Management Fee payable   32,882    19,213 
Due to Sponsor   225,210    166,804 
Other payable   79,028    77,505 
Total liabilities   337,120    263,522 
Net assets  $79,012,434   $46,014,780 
           
Net assets          
Paid-in capital  $76,978,282   $76,978,282 
Accumulated net investment loss   (2,522,788)   (2,316,820)
Accumulated net realized gain on investment in Bitcoin   1,019,913    911,557 
Accumulated net change in unrealized appreciation (depreciation) on investment in Bitcoin   3,537,027    (29,558,239)
   $79,012,434   $46,014,780 
           
Units issued and outstanding, no par value (unlimited Units authorized)   8,340,536    8,340,536 
Net asset value per Unit  $9.47   $5.52 

 

The accompanying notes are an integral part of these financial statements.

4

Osprey Bitcoin Trust

Schedules of Investment

March 31, 2023 and December 31, 2022

 

(Amounts in U.S. dollars, except units)

 

March 31, 2023 (Unaudited)  Units  Fair Value  Percentage of
Net Assets
             
Investment in Bitcoin, at fair value
(cost $75,794,346)
   2,786.69    $79,331,020    100%
                
Liabilities, less cash and other assets       $(318,586)   (0)%
        $79,012,434    100%
                
December 31, 2022   Units   Fair Value   Percentage of
Net Assets
                
Investment in Bitcoin, at fair value
(cost $75,816,514)
   2,792.88   $46,253,445    101%
                
Liabilities, less cash and other assets       $(238,665)   (1)%
        $46,014,780    100%

 

The accompanying notes are an integral part of these financial statements.

5

Osprey Bitcoin Trust

Statements of Operations

For the three months ended March 31, 2023 and 2022

 

(Amounts in U.S. dollars)

 

   Three months
ended March 31,
2023
(Unaudited)
  Three months
ended March 31,
2022
(Unaudited)
Expenses          
Management Fee   $76,394    $141,142 
Professional fees   39,685    43,199 
Custodian fees   23,554    84,533 
Other   66,335    3,579 
Total expenses   205,968    272,453 
           
Net investment loss   (205,968)   (272,453)
           
Net realized gain (loss) and net change in unrealized appreciation (depreciation) on investment in Bitcoin          
Net realized gain on investment in Bitcoin   108,356    195,123 
Net change in unrealized appreciation (depreciation) on investment in Bitcoin   33,095,266    (981,213)
Total net realized gain (loss) and net change in unrealized appreciation (depreciation) on investment in Bitcoin   33,203,622    (786,090)
           
Net increase (decrease) in net assets resulting from operations  $32,997,654   $(1,058,543)

 

The accompanying notes are an integral part of these financial statements.

6

Osprey Bitcoin Trust

Statements of Changes in Net Assets

For the three months ended March 31, 2023 and 2022

 

(Amounts in U.S. dollars, except units issued and outstanding)

 

   Three months
ended March
31, 2023
(Unaudited)
  Three months
ended March
31, 2022
(Unaudited)
Increase (decrease) in net assets from operations          
Net investment loss   $(205,968)   $(272,453)
Net realized gain on investment in Bitcoin   108,356    195,123 
Net change in unrealized appreciation (depreciation) on investment in Bitcoin   33,095,266    (981,213)
Net increase (decrease) in net assets resulting from operations   32,997,654    (1,058,543)
           
Net assets at the beginning of the period   46,014,780    129,673,168 
Net assets at the end of the period  $79,012,434   $128,614,625 
           
Change in units issued and outstanding          
Units issued and outstanding at the beginning of the period   8,340,536    8,340,536 
Units issued and outstanding at the end of the period   8,340,536    8,340,536 

 

The accompanying notes are an integral part of these financial statements.

7

Osprey Bitcoin Trust
Notes to the Financial Statements (unaudited)
As of March 31, 2023

 

 

1. Organization

 

Osprey Bitcoin Trust (the “Trust”) is a Delaware Statutory Trust, formed on January 3, 2019, which commenced operations on January 22, 2019 and is governed by the Second Amended and Restated Declaration of Trust and Trust Agreement dated November 1, 2020, as amended by the Amendment to Trust Agreement dated April 15, 2022 (the “Trust Agreement”). In general, the Trust holds Bitcoin and, from time to time, issues common units of fractional undivided beneficial interest (“Units”) in exchange for Bitcoin. The investment objective of the Trust is for the Units to track the price of Bitcoin, less liabilities and expenses of the Trust. The Units are designed as a convenient and cost-effective method for investors to gain investment exposure to Bitcoin, similar to a direct investment in Bitcoin.

 

Osprey Funds, LLC (the “Sponsor”) acts as the sponsor of the Trust. Other funds under the Osprey name are also managed by the Sponsor. The Sponsor is responsible for the day-to-day administration of the Trust pursuant to the provisions of the Trust Agreement. The Sponsor is responsible for preparing and providing annual reports on behalf of the Trust to investors and is also responsible for selecting and monitoring the Trust’s service providers. As consideration for the Sponsor’s services, the Trust pays the Sponsor a Management Fee (as defined herein) as discussed in Notes 2 and 5.

 

Coinbase Custody Trust Company, LLC (the “Custodian”) is the digital asset custodian of the Trust. Fidelity Digital Assets Services, LLC (“FDAS”) served as our digital asset custodian until March 2022. The Custodian is responsible for safeguarding the Bitcoin held by the Trust.

 

The transfer agent for the Trust (the “Transfer Agent”) is Continental Stock Transfer & Trust Company. The Transfer Agent is responsible for the issuance and redemption of Units, the payment, if any, of distributions with respect to the Units, the recording of the issuance of the Units and the maintaining of certain records therewith.

 

2. Summary of Significant Accounting Policies

 

Basis of Presentation

 

The financial statements are expressed in US dollars and have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”). The Trust qualifies as an investment company for accounting purposes pursuant to the accounting and reporting guidance under Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 946, Financial Services – Investment Companies. The Trust is not registered with U.S. Securities and Exchange Commission (“SEC”) under the Investment Company Act of 1940. The results for the three months ended March 31, 2023 and 2022 are not necessarily indicative of the results for the entire year or any subsequent interim period. These financial statements should be read in conjunction with the audited financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022.

 

Reclassifications

 

Certain prior period amounts have been reclassified in order to confirm with the current period presentation. These reclassifications have no impact on the Trust’s previously reported net investment loss.

 

Use of Estimates

 

GAAP requires management to make estimates and assumptions that affect the reported amounts in the financial statements and accompanying notes. The most significant estimate in the financial statements is the fair value of investments in Bitcoin. Actual results could differ from those estimates and these differences could be material.

8

Cash

 

Cash is received by the Trust from investors and converted into Bitcoin for investment. At times, bank deposits may be in excess of federally insured limits. In accordance with ASC 230 “Statement of Cash Flows”, the Trust qualifies for an exemption from the requirement to provide a statement of cash flows and has elected not to provide a statement of cash flows.

 

Subscriptions and Redemptions of Units

 

Proceeds received by the Trust from the issuance and sale of Units consist of Bitcoin deposits and forked or airdropped cryptocurrency coins from the Bitcoin Network, or their respective U.S. dollar cash equivalents. Such Bitcoins (or cash equivalent) will only be (1) owned by the Trust and held by the Custodian (or, if cash, used by the Sponsor to purchase Bitcoins to be held by the Custodian), (2) disbursed (or converted to U.S. dollars, if necessary) to pay the Trust’s expenses, (3) distributed to Accredited Investors (subject to obtaining regulatory approval from the SEC described below) in connection with the redemption of Units, (4) distributed (or converted to U.S. dollars, prior to distribution) to Unitholders as dividends, and (5) liquidated in the event that the Trust terminates or as otherwise required by law or regulation.

 

The Trust conducts its transactions in Bitcoin, including receiving Bitcoin for the creation of Units and delivering Bitcoin for the redemption of Units (if a redemption program were to be established) and for the payment of the Management Fee.

 

During June 2020, the Trust began a continuous offering of up to $5,000,000 of Units with no par value, each Unit representing a fractional undivided beneficial interest in the Trust. 154,183 Units were sold to both accredited and non-accredited investors in an offering of up to $5,000,000 of Units, dated June 1, 2020, registered in Connecticut and qualified in New York, pursuant to Rule 504 of Regulation D under the Securities Act of 1933, as amended (the “Securities Act”) (“Rule 504 Offering”). The Rule 504 Offering closed on August 12, 2020.

 

On November 12, 2020, the Trust began an offering of an unlimited number of Units pursuant to Rule 506(c) under the Securities Act (“November 2020 Offering”). 4,206,224 Units were sold in the November 2020 Offering.

 

On January 14, 2021, the Financial Industry Regulatory Authority (“FINRA”) determined that the Trust’s Units met the criteria for trading on the over-the-counter market (“OTC Market”). On February 16, 2021, the Trust’s Units began trading in the OTC Market, operated by OTC Markets Group, Inc., under the ticker symbol “OBTC”. On March 3, 2021, the Trust’s Units began trading in the OTCQX tier of the OTC Market, under the ticker symbol “OBTC.”

 

Effective November 1, 2021, the Trust suspended the November 2020 Offering under Rule 506(c) under the Securities Act.

 

As of March 31, 2023, there were 8,340,536 Units issued and outstanding. 159,387 of the Units are restricted securities that may not be resold absent registration or an exemption from registration under the Securities Act, and 8,181,149 of the Units are unrestricted securities.

 

The Trust is currently unable to redeem Units. On January 13, 2023, the Sponsor communicated to the Trust’s Unitholders that it is considering a redemption program for investors in the Trust and that such redemption program would likely involve limited periodic redemptions of Units, although the Trust had not ruled out the possibility of an open-ended redemption program.

 

Investment Transactions and Revenue Recognition

 

The Trust identifies Bitcoin as an “other investment” in accordance with ASC 946. The Trust records its investment transactions on a trade date basis and changes in fair value are reflected as the net change in unrealized appreciation or depreciation on investments. Realized gains and losses are calculated using a first in first out method. Realized gains and losses are recognized in connection with transactions including settling obligations for the Management Fee and other expenses in Bitcoin.

9

Management Fee

 

The Trust is expected to pay the remuneration due to the Sponsor (the “Management Fee” or “Sponsor Fee”). The Management Fee is charged by the Sponsor to the Trust at an annual rate of 0.49% of the daily Net Asset Value of the Trust and accrues daily in Bitcoin. The Management Fee is payable at the Sponsor’s sole discretion, in Bitcoin or in U.S. Dollars for the Bitcoin Market Price (as defined herein) in effect for such Bitcoin at the time of payment.

 

Trust Expenses

 

In accordance with the Trust Agreement, the Sponsor bears the routine operational, administrative and other ordinary administrative operating expenses of the Trust (the “Assumed Expenses”) other than audit fees, index license fees, aggregate legal fees in excess of $50,000 per annum and the fees of the Custodian ( “Excluded Expenses”) and certain extraordinary expenses of the Trust, including but not limited to taxes and governmental charges, expenses and costs, expenses and indemnities related to any extraordinary services performed by the Sponsor (or any other service provider, including the Trustee) on behalf of the Trust to protect the Trust or the interest of Unitholders, indemnification expenses, fees and expenses related to public trading on OTCQX (“Extraordinary Expenses”).

 

Fair Value Measurements

 

The Trust’s investment in Bitcoin is stated at fair value in accordance with ASC 820-10 “Fair Value Measurements”, which outlines the application of fair value accounting. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., the “exit price”) in an orderly transaction between market participants at the measurement date. ASC 820-10 requires the Trust to assume that Bitcoin is sold in its principal market to market participants or, in the absence of a principal market, the most advantageous market. Principal market is the market with the greatest volume and level of activity for Bitcoin, and the most advantageous market is defined 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. The principal market is generally selected based on the most liquid and reliable exchange (including consideration of the ability for the Trust to access the specific market, either directly or through an intermediary, at the end of each period). The Sponsor has identified Coinbase Pro as the principal market for Bitcoin.

 

GAAP utilizes a fair value hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are those that market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Trust. Unobservable inputs reflect the Trust’s assumptions about the inputs market participants would use in pricing the asset or liability developed based on the best information available in the circumstances.

 

The fair value hierarchy is categorized into three levels based on the inputs as follows:

 

Level 1 – Valuations based on unadjusted quoted prices in active markets for identical assets or liabilities that the Trust has the ability to access. Since valuations are based on quoted prices that are readily and regularly available in an active market, these valuations do not entail a significant degree of judgment.

 

Level 2 – Valuations based on quoted prices in markets that are not active or for which significant inputs are observable, either directly or indirectly.

 

Level 3 – Valuations based on inputs that are unobservable and significant to the overall fair value measurement.

 

The availability of valuation techniques and observable inputs can vary by investment. To the extent that valuations are based on sources that are less observable or unobservable in the market, the determination of fair value requires more judgment. Fair value estimates do not necessarily represent the amounts that may be ultimately realized by the Trust.

 

Definition of Net Asset Value

 

The net asset value (“NAV”) of the Trust is used by the Trust in its day-to-day operations to measure the net value of the Trust’s assets. The NAV is calculated on each business day and is equal to the aggregate value of the Trust’s assets less its liabilities (which include accrued but unpaid fees and expenses, both estimated and finally determined), based on the Bitcoin Market Price. In calculating the value of the Bitcoin held by the Trust on any business day, the Trust will

10

use the market price as of 4:00 p.m. New York time. The Trust will also calculate the NAV per Unit of the Trust daily, which equals the NAV of the Trust divided by the number of outstanding Units (the “NAV per Unit”). The Trust considers 4:00 p.m. New York time as a cut off for the end of day reporting.

 

3. Fair Value of Bitcoin

 

The investment measured at fair value on a recurring basis and categorized using the three levels of fair value hierarchy consisted of the following as of March 31, 2023 and December 31, 2022:

 

   Number  Per Bitcoin  Amount at  Fair Value Measurement Category
March 31, 2023  of Bitcoin  Fair Value  Fair Value  Level 1  Level 2  Level 3
                   
Investment in Bitcoin   2,786.69    $ 28,467.79    $ 79,331,020    $
-
    $ 79,331,020   $
-
 
                               
   Number  Per Bitcoin  Amount at  Fair Value Measurement Category
December 31, 2022  of Bitcoin  Fair Value  Fair Value  Level 1  Level 2  Level 3
                               
Investment in Bitcoin   2,792.88    $16,561.21    $46,253,445   $
-
    $46,253,445   $
-
 

 

The Trust determined the fair value per Bitcoin using the price provided at 4:00 p.m., New York time, by Coinbase Pro, the Trust’s principal market.

 

The Management Fee payable accrued in Bitcoin is converted into United States dollar amount at the period-end Bitcoin Market Price. The fluctuations arising from the effect of changes in liability denominated in Bitcoin are included with the net realized or unrealized appreciation or depreciation on investment in Bitcoin in the statements of operations.

 

The following represents the changes in quantity and the respective fair value of Bitcoin for the three months ended March 31, 2023:

 

   Bitcoin  Fair Value
Balance at January 1, 2023   2,792.88    $ 46,253,445 
Bitcoin distributed for Management Fee, related party   (3.36)   (71,320)
Bitcoin distributed for other fees   (2.83)   (63,322)
Net realized gain on investment in Bitcoin   -    112,474 
Net change in unrealized appreciation on investment in Bitcoin   -    33,099,743 
Balance at March 31, 2023   2,786.69    $79,331,020 

 

Net realized gain on the transfer of Bitcoins to pay the Management Fee and other expenses for the three months ended March 31, 2023, was $108,356, which includes $112,474 net realized gain on investment in Bitcoin, and $4,118 net realized loss resulted from the changes in liabilities denominated in Bitcoin. Net change in unrealized appreciation on investment in Bitcoin for the three months ended March 31, 2023, was $33,095,266, which includes net change in unrealized appreciation on investment in Bitcoin of $33,099,743, and $4,477 net unrealized depreciation due to changes in value of liabilities denominated in Bitcoin.

 

The following represents the changes in quantity and the respective fair value of Bitcoin for the year ended December 31, 2022:

 

   Bitcoin  Fair Value
Balance at January 1, 2022   2,828.93    $ 129,756,984 
Bitcoin distributed for Management Fee, related party   (13.78)   (407,612)
Bitcoin distributed for other fees   (22.27)   (531,601)
Net realized gain on investment in Bitcoin   -    809,988 
Net change in unrealized depreciation on investment in Bitcoin   -    (83,374,314)
Balance at December 31, 2022   2,792.88    $ 46,253,445 
11

 

Net realized gain on the transfer of Bitcoins to pay the Management Fee and other expenses for the year ended December 31, 2022, was $834,003, which includes $809,988 net realized gain on investment in Bitcoin, and $24,015 net realized gain resulted from the changes in liabilities denominated in Bitcoin. Net change in unrealized depreciation on investment in Bitcoin for the year ended December 31, 2022, was $83,373,064, which includes net change in unrealized depreciation on investment in Bitcoin of $83,374,314, and $1,250 net unrealized appreciation due to changes in value of liabilities denominated in Bitcoin.

 

4. Income Taxes

 

The Trust is a grantor trust for U.S. federal income tax purposes. Accordingly, the Trust will not be subject to U.S. federal income tax. Rather, each beneficial owner of Units 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, gain, losses and deductions will “flow through” to each beneficial owner of Units.

 

In accordance with GAAP, the Trust has defined the threshold for recognizing the benefits of tax return positions in the financial statements as “more-likely-than-not” to be sustained by the applicable taxing authority and requires measurement of a tax position meeting the “more-likely-than-not” threshold, based on the largest benefit that is more than 50% likely to be realized. As of March 31, 2023, the Trust did not have a liability for any unrecognized tax amounts for uncertain tax positions related to federal, state, and local income taxes.

 

However, the conclusions concerning the determination of “more-likely-than-not” tax positions may be subject to review and adjustment at a later date based on factors including, but not limited to, further implementation guidance and on-going analyses of and changes to tax laws, regulations and interpretations thereof.

 

The Sponsor of the Trust has evaluated whether or not there are uncertain tax positions that require financial statement recognition and has determined that no reserves for uncertain tax positions related to federal, state and local income taxes existed as of March 31, 2023 and December 31, 2022. The Trust’s 2020, 2021, and 2022 tax returns are subject to audit by federal, state and local tax authorities.

 

5. Related Parties

 

The Sponsor pays certain expenses on behalf of, and is reimbursed by, the Trust. For the three months ended March 31, 2023, and 2022 the Trust reimbursed the Sponsor the expenses in the amount of $63,322 and $58,497 respectively.

 

For the three months ended March 31, 2023, and 2022, the Trust incurred Management Fees of $76,394 and $141,142, respectively, which are recorded in the accompanying statements of operations. As of March 31, 2023 and December 31, 2022, there were unpaid Management Fees of $32,882 and $19,213, respectively, which are recorded as management fee payable in the accompanying statements of assets and liabilities.

 

The Trust’s Management Fee is accrued daily in Bitcoins and will be payable, at the Sponsor’s sole discretion, in U.S. dollars or in Bitcoins at the Bitcoin market price in effect at the time of such payment. From inception through March 31, 2023, all Management Fees have been made in Bitcoin to the Sponsor.

 

6. Risks and Uncertainties

 

Investment in Bitcoin

 

The Trust is subject to various risks including market risk, liquidity risk, and other risks related to its concentration in a single asset, Bitcoin. Investing in Bitcoin is currently unregulated, highly speculative, and volatile.

 

The net asset value of the Trust relates primarily to the value of Bitcoin held by the Trust, and fluctuations in the price of Bitcoin could materially and adversely affect an investment in the Units of the Trust. The price of Bitcoin has a limited history. During such history, Bitcoin prices have been volatile and subject to influence by many factors including the levels of liquidity.

12

If Bitcoin exchanges continue to experience significant price fluctuations, the Trust may experience losses. Several factors may affect the price of Bitcoin, including, but not limited to, global Bitcoin supply and demand, theft of Bitcoin from global exchanges or vaults, and competition from other forms of digital currency or payment services. The Bitcoin held by the Trust are commingled and the Trust’s Unitholders have no specific rights to any specific Bitcoin. In the event of the insolvency of the Trust, its assets may be inadequate to satisfy a claim by its Unitholders.

 

There is currently no clearing house for Bitcoin, nor is there a central or major depository for the custody of Bitcoin. There is a risk that some or all of the Trust’s Bitcoin could be lost or stolen. The Trust does not have insurance protection on its Bitcoin which exposes the Trust and its Unitholders to the risk of loss of the Trust’s Bitcoin. Further, Bitcoin transactions are irrevocable. Stolen or incorrectly transferred Bitcoin may be irretrievable. As a result, any incorrectly executed Bitcoin transactions could adversely affect an investment in the Trust.

 

To the extent private keys for Bitcoin addresses are lost, destroyed or otherwise compromised and no backup of the private keys are accessible, the Trust may be unable to access the Bitcoin held in the associated addresses and the private keys will not be capable of being restored. The processes by which Bitcoin transactions are settled are dependent on the Bitcoin peer-to-peer network, and as such, the Trust is subject to operational risk. A risk also exists with respect to previously unknown technical vulnerabilities, which may adversely affect the value of Bitcoin.

 

The Custodian

 

The digital assets owned by the Trust are held by the Custodian and secured in a segregated custody account. All digital asset private keys are stored in offline storage, or “cold” storage. “Cold” storage is a safeguarding method by which the private keys corresponding to digital assets are disconnected and/or deleted entirely from the internet. As a result of digital assets being stored in “cold” storage, any withdrawal and subsequent transaction request to the Custodian by the Trust requires up to twenty-four (24) hour prior notice to process. Such time delay between the withdrawal request and processing of the withdrawal may negatively impact the price of the digital asset upon sale. The Custodian provides the Trust with monthly account statements. The Custodian is independent from the Sponsor.

 

7. Indemnifications

 

In the normal course of business, the Trust enters into contracts with service providers that contain a variety of representations and warranties and which provide general indemnifications. It is not possible to determine the maximum potential exposure or amount under these agreements due to the Trust having no prior claims. Based on experience, the Trust would expect the risk of loss to be remote.

13

8. Financial Highlights

 

   Three months
ended March
31, 2023
  Three months
ended March
31, 2022
Per Unit Performance
(for a unit outstanding throughout the period)
          
           
Net asset value per unit at beginning of period  $5.52   $15.55 
           
Net increase (decrease) in net assets resulting from operations          
Net realized gain (loss) and change in unrealized appreciation (depreciation) on investment   3.98    (0.10)
Net investment loss   (0.03)   (0.03)
Net increase (decrease) in net assets resulting from operations   3.95    (0.13)
           
Net asset value per unit at end of period  $9.47   $15.42 
           
Total return   71.56%   (0.84)%
           
Ratios to average net asset value          
Expenses   1.30%   0.89%
           
Net investment loss   (1.30)%   (0.89)%

 

An individual Unitholder’s return, ratios, and per Unit performance may vary from those presented above based on the timing of Unit transactions. Total return and ratios to average net asset value are calculated for the Unitholders taken as a whole. Ratios have been annualized for the partial periods ended March 31, 2023 and 2022.

 

9. Subsequent Events

 

There are no events that have occurred that require disclosure other than that which has already been disclosed in these notes to the financial statements.

14

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

 

The following discussion and analysis of our financial condition and results of operations should be read together with our unaudited financial statements and related notes included elsewhere in this Quarterly Report, which have been prepared in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”). The following discussion may contain forward-looking statements based on assumptions we believe to be reasonable. Our actual results could differ materially from those discussed in these forward-looking statements. Factors that could cause or contribute to these differences include, but are not limited to, those set forth under Part II in this Quarterly Report.

 

Trust Overview

 

The Trust is a passive investment vehicle, and its assets will not be actively managed. As a result, it will not engage in any activities designed to obtain a profit from, or to ameliorate losses caused by, changes in the market prices of Bitcoins. The investment objective of the Trust is for the Units to reflect the performance of Bitcoin as measured by reference to Coin Metrics CMBI Bitcoin Index (the “Index”), less the aggregate Trust expenses and other liabilities. To date, the Trust has not met its investment objective.

 

The Units are intended to constitute a cost-effective and convenient means of gaining investment exposure to Bitcoin. However, an investment in the Units may operate and perform differently over time, and at any given time, than an investment directly in Bitcoin due to such factors as Trust fees and expenses, the quantity of Units available for trading, and the relative liquidity, and differences in the markets trading Bitcoin from the markets trading the Units (e.g., hours of operation, marketplace rules, clearance and settlement, market participants). Although the Units will not be the exact equivalent of a direct investment in Bitcoin, they provide investors with an alternative that constitutes a relatively cost-effective way to participate in Bitcoin markets through the securities market. The Units have been quoted on OTC Markets since February 12, 2021, and on OTCQX under the symbol “OBTC” since February 26, 2021, and to date have not met their investment objective.

 

At this time, the Trust is not operating a redemption program for Units and therefore Units are not redeemable by the Trust. On January 13, 2023, the Trust informed investors that it was considering a redemption program for the Units, which would likely involve limited periodic redemptions of Units, however, the possibility of an open-ended redemption program was not ruled out, and the Trust was working with legal counsel to offer a redemption program. To date, there have been no material developments regarding a redemption program for the Units. The Trust may halt issuances of Units for extended periods of time. As a result, the value of the Units of the Trust may not approximate, and when traded on any secondary market, the Units may trade at a substantial premium over, or discount to, the Trust’s NAV per Unit.

 

Critical Accounting Estimates

 

Investment Transactions and Revenue Recognition

 

The Trust considers investment transactions to be the receipt of Bitcoin for Units creations and the delivery of Bitcoin for Units redemptions or for payment of expenses in Bitcoin. At this time, the Trust is not accepting redemption requests from unitholders. The Trust records its investment transactions on a trade date basis and changes in fair value are reflected as the net change in unrealized appreciation or depreciation on investments. Realized gains and losses are calculated using a first in first out method. Realized gains and losses are recognized in connection with transactions including settling obligations for the Management Fee and other expenses in Bitcoin. 

 

Principal Market and Fair Value Determination

 

To determine which Bitcoin market will serve as the Trust’s principal market (or in the absence of a principal market, the most advantageous market) for purposes of calculating the Trust’s NAV, the Trust follows FASB ASC 820-10, which outlines the application of fair value accounting. ASC 820-10 determines fair value to be the price that would be received for Bitcoin in a current sale, which assumes an orderly transaction between market participants on the measurement date. ASC 820-10 requires the Trust to assume that Bitcoin is sold in its principal market to market participants or, in the absence of a principal market, the most advantageous market. Market participants are defined as buyers and sellers in the principal or most advantageous market that are independent, knowledgeable, and willing and able to transact.

 

The Trust purchases Bitcoin directly from various counterparties, such as Galaxy Digital, Jane Street, and Cumberland DRW LLC, and does not itself transact in any Bitcoin markets. The purchase price of Bitcoin from our counterparties may vary significantly. The Trust looks to these counterparties when assessing entity-specific and market-based volume and the level of activity in the Bitcoin markets. The Trust determines the value of Bitcoin at any given time by reference to the market price of Bitcoin traded on Coinbase Pro, the Trust’s principal market, as determined at 4:00 p.m., New York time on each business day (the “Bitcoin Market Price”). The Trust evaluates its principal market selection (or in the absence of a principal

15

market the most advantageous market) at least annually and conducts a quarterly analysis to determine (i) if there have been recent changes to each Bitcoin market’s trading volume and level of activity in the trailing twelve months, (ii) if any Bitcoin markets have developed that the Trust has access to, or (iii) if recent changes to a Bitcoin market’s price stability have occurred that would materially impact the selection of the principal market and necessitate a change in the Trust’s determination of its principal market. The Trust does not anticipate changing its principal market more frequently than annually, in connection with its annual evaluation of its principal market selection and annual financial audit. Each annual evaluation will take into account the findings from the Trust’s quarterly reviews.

 

The cost basis of a Trust investment in Bitcoin recorded by the Trust for financial reporting purposes is the fair value of the Bitcoin at the time of contribution to the Trust. The Bitcoin cost basis recorded by the Trust may differ from the value of the proceeds collected by the Sponsor from the sale of the corresponding Units to investors.

 

Investment Company Considerations

 

The Trust is an investment company for GAAP purposes and follows accounting and reporting guidance in accordance with the FASB ASC Topic 946, Financial Services – Investment Companies. The Trust uses fair value as its method of accounting for Bitcoin in accordance with its classification as an investment company for accounting purposes. The Trust is not a registered investment company under the Investment Company Act of 1940. GAAP requires management to make estimates and assumptions that affect the reported amounts in the financial statements and accompanying notes. Actual results could differ from those estimates and these differences could be material.

 

Review of Financial Results (unaudited)

 

Financial Highlights for the Three Months Ended March 31, 2023 and 2022

 

   Three Months Ended March 31,
   2023  2022
Net realized gain (loss) and net change in unrealized appreciation (depreciation) on investment in Bitcoin  $33,203,622   $(786,090)
Net increase (decrease) in net assets resulting from operations  $32,997,654   $(1,058,543)
Net assets  $79,012,434   $128,614,625 

 

Net realized and unrealized gain on investment in Bitcoin for the three months ended March 31, 2023 was $33,203,622 which includes a realized gain of $108,356 on the transfer of Bitcoins to pay the Management Fee and other expenses and net change in unrealized appreciation on investment in Bitcoin of $33,095,266. Net realized and unrealized gain on investment in Bitcoin for the period was driven by Bitcoin price appreciation from $16,561.21 per Bitcoin as of December 31 2022 to $28,467.79 per Bitcoin as of March 31, 2023. Net increase in net assets resulting from operations was $32,997,654, for the three months ended March 31, 2023, which consisted of the net realized and unrealized gain on investment in Bitcoin, less the Management Fee of $76,394 and other expenses of $129,574. Net assets increased to $79,012,434 at March 31, 2023, a 72% increase for the period. The increase in net assets resulted from the aforementioned Bitcoin price appreciation which was partially offset by the Trust’s expenses of $205,968 for the period.

 

Net realized and unrealized loss on investment in Bitcoin for the three months ended March 31, 2022 was $786,090 which includes a realized gain of $195,123 on the transfer of Bitcoins to pay the Management Fee and other expenses and net change in unrealized depreciation on investment in Bitcoin of $981,213. Net realized and unrealized loss on investment in Bitcoin for the period was driven by Bitcoin price depreciation from $45,867.86 per Bitcoin as of December 31, 2021 to $45,595.55 per Bitcoin as of March 31, 2022. Net decrease in net assets resulting from operations was $1,058,543 for the three months ended March 31, 2022, which consisted of the net realized and unrealized loss on investment in Bitcoin, less the Management Fee of $141,142 and other expenses of $131,311. Net assets decreased to $128,614,625 at March 31, 2022, a 1% decrease for the period. The decrease in net assets resulted from the aforementioned Bitcoin price depreciation and the Trust’s expenses of $272,453 for the period.

 

Cash Resources and Liquidity

 

When selling Bitcoins to pay expenses, the Sponsor endeavors to sell the exact number of Bitcoins needed to pay expenses in order to minimize the Trust’s holdings of assets other than Bitcoin. As a consequence, the Sponsor expects that the Trust will not record any cash flow from its operations and that its cash balance will be zero at the end of each reporting period. The prices of digital assets, specifically Bitcoin, have experienced substantial volatility, which may reflect “bubble” type

16

volatility, meaning that high or low prices may have little or no relationship to identifiable market forces, may be subject to rapidly changing investor sentiment, and may be influenced by factors such as technology, regulatory void or changes, fraudulent actors, manipulation, and media reporting. Bitcoin may have value based on various factors, including their acceptance as a means of exchange by consumers and others, scarcity, and market demand.

 

In exchange for the Management Fee, the Sponsor has agreed to bear the routine operational, administrative and other ordinary fees and expenses incurred by the Trust. The Trust is not aware of any trends, demands, conditions or events that are reasonably likely to result in material changes to its liquidity needs.

 

Selected Operating Data

 

   Three Months March 31,
   2023  2022
Bitcoins:          
Opening balance   2,792.88    2,828.93 
Management Fee, related party   (3.36)   (3.41)
Other Expenses   (2.83)   (1.53)
Closing balance   2,786.69    2,823.99 
Accrued but unpaid Management Fee, related party   (1.16)   (1.17)
Unreimbursed expenses due to Sponsor   (7.91)   - 
Accrued but unpaid other expenses, net of other assets   (2.12)   (2.05)
Net closing balance   2,775.50    2,820.77 
Number of Units:          
Opening balance   8,340,536    8,340,536 
Closing balance   8,340,536    8,340,536 

 

   As of March 31,
   2023  2022
NAV per Unit  $9.47   $15.42 
Bitcoin Market Price  $28,467.79   $45,595.55 
Bitcoin Holdings per Unit   0.00033    0.00034 

 

Historical Digital Asset Holdings and Bitcoin Prices

 

As movements in the price of Bitcoins will directly affect the price of the Units, investors should understand recent movements in the price of Bitcoin. Investors, however, should also be aware that past movements in the Bitcoin price are not indicators of future movements. Movements may be influenced by various factors, including, but not limited to, government regulation, security breaches experienced by service providers, as well as political and economic uncertainties around the world.

 

The following chart illustrates the movements in the NAV and the Bitcoin Market Price (referred to in the chart as “Market Price”) from the beginning of the Trust’s operations on January 3, 2019 to March 31, 2023.

17

 

The table below illustrates the movements in the Bitcoin Market Price since the beginning of the Trust’s operations on January 3, 2019. Since the beginning of the Trust’s operations to March 31, 2023 the Bitcoin Market Price has ranged from $3,358.67 to $67,371.70, with the straight average being $23,527.82. The Sponsor has not observed a material difference between the Bitcoin Market Price and average prices from the constituent Bitcoin exchanges individually or as a group.

 

Period  Average  High  Date  Low  Date  End of period
From January 3, 2019 to December 31, 2019  7,379.15   13,724.33   6/26/2019  3,358.67   2/7/2019  7,153.38 
Year ended December 31, 2020   11,131.27    29,026.66   12/31/2020   4,956.92   3/16/2020   29,026.66 
Year ended December 31, 2021   47,524.08    67,371.70   11/9/2021   29,785.71   7/20/2021   45,867.86 
Year ended December 31, 2022   28,203.59    47,982.33   3/28/2022   15,766.93   11/21/2022   16,561.21 
Three months ended March 31, 2023   23,027.30    28,467.79   3/31/2023   16,655.42   1/3/2023   28,467.79 
January 3, 2019 (the inception of the Trust’s operations) to March 31, 2023  23,527.82   $67,371.70   11/9/2021  $3,358.67   2/7/2019  28,467.79 

 

Secondary Market Trading

 

The Trust’s Units have been quoted on OTC Markets since February 12, 2021, and on OTCQX since February 26, 2021 under the symbol “OBTC.” The price of the Units as quoted on OTCQX (and OTC Markets) has varied significantly from the NAV per Unit. From February 12, 2021 to March 31, 2023, the maximum premium of the closing price of the Units quoted on OTCQX (and OTC Markets) over the value of the Trust’s NAV per Unit was approximately 240% and the average daily discount since the Units were first traded on OTC Markets on February 12, 2021 was approximately 11%. As of March 31, 2023, the Trust’s Units were quoted on OTCQX at a discount of approximately 37% to the Trust’s NAV per Unit.

 

The historical premium of the closing price of the Units quoted on OTCQX and OTC Markets as compared with the NAV per Unit has varied, from a high of 240% on February 16, 2021 (closing price $56.39 per Unit on OTCQX (and OTC Markets) and NAV per Unit $16.58) to a low (i.e., discount) of 46% on November 18, 2022 (closing price $3 per Unit on OTCQX (and OTC Markets) and NAV per Unit $5.56).The historical premiums and discounts at times reflect a material deviation from the Bitcoin Market Price.

 

The following table sets out the range of high and low closing prices for the Units as reported by OTCQX (or OTC Markets) and the Trust’s NAV per Unit for the period from February 12, 2021 to March 31, 2023. The Trust’s Bitcoin Holdings per Unit for the period was 0.00033.

18
High  Low
OTC
Markets
  NAV per Unit  OTC
Markets
  NAV per Unit
 2/16/2021   11/9/2021   11/18/2022   11/21/2022
   $56.39     $22.86     $3.00     $5.28

 

Item 3. Quantitative and Qualitative Disclosures about Market Risk

 

Not applicable.

 

Item 4. Controls and Procedures

 

Evaluation of Disclosure Controls and Procedures

 

The Trust maintains disclosure controls and procedures that are designed to ensure that information required to be disclosed in our reports filed or submitted under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed in company reports filed or submitted under the Exchange Act is accumulated and communicated to management, including the Sponsor’s Chief Executive Officer (who serves as our principal executive officer) and Chief Financial Officer (who serves as our principal financial and accounting officer), to allow timely decisions regarding required disclosure.

 

As required by Rules 13a-15 and 15d-15 under the Exchange Act, the Sponsor’s Chief Executive Officer and Chief Financial Officer carried out an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures as of March 31, 2023. Based upon their evaluation, the Sponsor’s Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) were effective.

 

Changes in Internal Control over Financial Reporting

 

There was no change in our internal control over financial reporting that occurred during the fiscal quarter ended March 31, 2023, that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

19

PART II – OTHER INFORMATION

 

Item 1. Legal Proceedings

 

None.

 

Item 1A. Risk Factors

 

There have been no material changes to the risk factors previously disclosed under “Item 1A. Risk Factors” of the Trust’s Annual Report on Form 10-K for the year ended December 31, 2022.

 

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

 

None.

 

Item 3. Defaults Upon Senior Securities

 

None.

 

Item 4. Mine Safety Disclosures

 

Not applicable.

 

Item 5. Other Information

 

None.

20

Item 6. Exhibits

 

Exhibit
Number
  Exhibit Description
     
31.1   Certification of Principal Executive Officer pursuant to Rule 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as amended, with respect to the Trust’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2023.
     
31.2   Certification of Principal Financial Officer pursuant to Rule 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as amended, with respect to the Trust’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2023.
     
32.1   Certification of Principal Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, with respect to the Trust’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2023.
     
32.2   Certification of Principal Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, with respect to the Trust’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2023.
     
101.INS   XBRL Instance Document, filed herewith. The instance document does not appear in the interactive data file because its XBRL tags are embedded within the inline XBRL document.
     
101.SCH   XBRL Taxonomy Extension Schema Document, filed herewith
     
101.CAL   XBRL Taxonomy Extension Calculation Linkbase Document, filed herewith
     
101.DEF   XBRL Taxonomy Extension Definitions Linkbase Document, filed herewith
     
101.LAB   XBRL Taxonomy Extension Label Linkbase Document, filed herewith
     
101.PRE   XBRL Taxonomy Extension Presentation Linkbase Document, filed herewith
     
104   Cover Page Interactive Data File – The cover page interactive data file does not appear in the interactive data file because its XBRL tags are embedded within the inline XBRL document.
21

SIGNATURES

 

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned in the capacities* indicated, thereunto duly authorized.

 

  Osprey Funds, LLC as Sponsor of Osprey Bitcoin Trust
     
  By:  /s/ Gregory D. King
    Name:  Gregory D. King
    Title: Chief Executive Officer*
       
  By:  /s/ Robert J. Rokose
    Name: Robert J. Rokose
    Title: Chief Financial Officer*

 

Date: May 9, 2023

 

* The Registrant is a trust and the persons are signing in their capacities as officers or directors of Osprey Funds, LLC, the Sponsor of the Registrant.
22
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EX-31.1 2 c106305_ex31-1.htm

Exhibit 31.1

 

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER PURSUANT TO RULE 13a-14(a) 

AND 15d-14(a) UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED, AS ADOPTED PURSUANT TO
SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

 

I, Gregory D. King, certify that:

 

1.I have reviewed this quarterly report of Osprey Bitcoin Trust (“Trust”);
  
2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
  
3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
  
4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
  
a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
   
b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
   
c.Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
   
d.Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
   
5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the auditors of the Registrant:
  
a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
   
b.Any fraud, whether or not material, that involves persons who have a significant role in the registrant’s internal control over financial reporting.
   

Date: May 9, 2023

 

/s/ Gregory D. King  

Gregory D. King *

Chief Executive Officer

 
  
*The Registrant is a trust and Mr. King is signing in his capacity as Chief Executive Officer of Osprey Funds, LLC, the Sponsor of the Registrant.
 
EX-31.2 3 c106305_ex31-2.htm

Exhibit 31.2

 

CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER PURSUANT TO RULE 13a-14(a)

AND 15d-14(a) UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED, AS ADOPTED PURSUANT TO
SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

 

I, Robert J. Rokose, certify that:

 

1.I have reviewed this quarterly report of Osprey Bitcoin Trust (“Trust”);
  
2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
  
3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
  
4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
  
a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
   
b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
   
c.Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
   
d.Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
   
5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the auditors of the Registrant:
  
a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
   
b.Any fraud, whether or not material, that involves persons who have a significant role in the registrant’s internal control over financial reporting.
   

Date: May 9, 2023

 

/s/ Robert J. Rokose  

Robert J. Rokose*

Chief Financial Officer

 
  
*The Registrant is a trust and Mr. Rokose is signing in his capacity as Chief Financial Officer of Osprey Funds, LLC, the Sponsor of the Registrant.
 
EX-32.1 4 c106305_ex32-1.htm

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

 

In connection with the Quarterly Report of Osprey Bitcoin Trust (the “Trust”) on Form 10-Q for the period ended March 31, 2023 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Gregory D. King, Chief Executive Officer of Osprey Funds, LLC, the Sponsor of the Trust, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

 

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

 

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Trust.

 

/s/ Gregory D. King  
Gregory D. King *  
Chief Executive Officer  
   

May 9, 2023

 
  
*The Registrant is a trust and Mr. King is signing in his capacity as Chief Executive Officer of Osprey Funds, LLC, the Sponsor of the Trust.
 
EX-32.2 5 c106305_ex32-2.htm

Exhibit 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

 

In connection with the Quarterly Report of Osprey Bitcoin Trust (the “Trust”) on Form 10-Q for the period ended March 31, 2023 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Robert J. Rokose, Chief Financial Officer of Osprey Funds, LLC, the Sponsor of the Trust, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

 

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

 

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Trust.

 

/s/ Robert J. Rokose  
Robert J. Rokose*  
Chief Financial Officer  
   

May 9, 2023

 
  
*The Registrant is a trust and Mr. Rokose is signing in his capacity as Chief Financial Officer of Osprey Funds, LLC, the Sponsor of the Trust.
 
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Document And Entity Information - shares
3 Months Ended
Mar. 31, 2023
Apr. 18, 2023
Document Information Line Items    
Entity Registrant Name Osprey Bitcoin Trust  
Trading Symbol N/A  
Document Type 10-Q  
Current Fiscal Year End Date --12-31  
Entity Common Stock, Shares Outstanding   8,340,536
Amendment Flag false  
Entity Central Index Key 0001767057  
Entity Current Reporting Status Yes  
Entity Filer Category Non-accelerated Filer  
Document Period End Date Mar. 31, 2023  
Document Fiscal Year Focus 2023  
Document Fiscal Period Focus Q1  
Entity Small Business true  
Entity Emerging Growth Company true  
Entity Shell Company false  
Entity Ex Transition Period false  
Document Quarterly Report true  
Document Transition Report false  
Entity File Number 000-56307  
Entity Incorporation, State or Country Code DE  
Entity Tax Identification Number 37-6695894  
Entity Address, Address Line One 1241 Post Road  
Entity Address, Address Line Two 2nd Floor  
Entity Address, City or Town Fairfield  
Entity Address, State or Province CT  
Entity Address, Postal Zip Code 06824  
City Area Code 914  
Local Phone Number 214-4697  
Title of 12(b) Security N/A  
Security Exchange Name NONE  
Entity Interactive Data Current Yes  
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Statements of Assets and Liabilities - USD ($)
Mar. 31, 2023
Dec. 31, 2022
Assets    
Investment in Bitcoin, at fair value (cost $75,794,346 and $75,816,514), respectively) $ 79,331,020 $ 46,253,445
Cash   257
Other assets 18,534 24,600
Total assets 79,349,554 46,278,302
Liabilities    
Management Fee payable 32,882 19,213
Due to Sponsor 225,210 166,804
Other payable 79,028 77,505
Total liabilities 337,120 263,522
Net assets 79,012,434 46,014,780
Net assets    
Paid-in capital 76,978,282 76,978,282
Accumulated net investment loss (2,522,788) (2,316,820)
Accumulated net realized gain on investment in Bitcoin 1,019,913 911,557
Accumulated net change in unrealized appreciation (depreciation) on investment in Bitcoin 3,537,027 (29,558,239)
Net assets $ 79,012,434 $ 46,014,780
Units issued and outstanding, no par value (unlimited Units authorized) (in Shares) 8,340,536 8,340,536
Net asset value per Unit (in Dollars per share) $ 9.47 $ 5.52
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Statements of Assets and Liabilities (Parentheticals) - USD ($)
Mar. 31, 2023
Dec. 31, 2022
Statement of Financial Position [Abstract]    
Investment in Bitcoin, cost $ 75,794,346 $ 75,816,514
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Schedules of Investment
3 Months Ended 12 Months Ended
Mar. 31, 2023
USD ($)
Dec. 31, 2022
USD ($)
Schedules Of Investment Abstract    
Investment in Bitcoin, at fair value, Units (in Dollars) $ 79,331,020 $ 46,253,445
Investment in Bitcoin, at fair value, Fair Value 2,786.69 2,792.88
Investment in Bitcoin, at fair value, Percentage of Net Assets 100.00% 101.00%
Liabilities, less cash (in Dollars) $ (318,586) $ (238,665)
Liabilities, less cash 0.00% (1.00%)
(in Dollars) $ 79,012,434 $ 46,014,780
100.00% 100.00%
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Schedules of Investment (Parentheticals) - USD ($)
Mar. 31, 2023
Dec. 31, 2022
Schedules Of Investment Abstract    
Investment in Bitcoin, cost $ 75,794,346 $ 75,816,514
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Statements of Operations - USD ($)
3 Months Ended
Mar. 31, 2023
Mar. 31, 2022
Expenses    
Management Fee $ 76,394 $ 141,142
Professional fees 39,685 43,199
Custodian fees 23,554 84,533
Other 66,335 3,579
Total expenses 205,968 272,453
Net investment loss (205,968) (272,453)
Net realized gain (loss) and net change in unrealized appreciation (depreciation) on investment in Bitcoin    
Net realized gain on investment in Bitcoin 108,356 195,123
Net change in unrealized appreciation (depreciation) on investment in Bitcoin 33,095,266 (981,213)
Total net realized gain (loss) and net change in unrealized appreciation (depreciation) on investment in Bitcoin 33,203,622 (786,090)
Net increase (decrease) in net assets resulting from operations $ 32,997,654 $ (1,058,543)
XML 18 R7.htm IDEA: XBRL DOCUMENT v3.23.1
Statements of Changes in Net Assets - USD ($)
3 Months Ended 12 Months Ended
Mar. 31, 2023
Mar. 31, 2022
Dec. 31, 2022
Increase (decrease) in net assets from operations      
Net investment loss $ (205,968) $ (272,453)  
Net realized gain on investment in Bitcoin 108,356 195,123 $ 834,003
Net change in unrealized appreciation (depreciation) on investment in Bitcoin 33,095,266 (981,213) 83,373,064
Net increase (decrease) in net assets resulting from operations 32,997,654 (1,058,543)  
Net assets at the beginning of the period 46,014,780 129,673,168 129,673,168
Net assets at the end of the period $ 79,012,434 $ 128,614,625 $ 46,014,780
Change in units issued and outstanding      
Units issued and outstanding at the beginning of the period (in Shares) 8,340,536 8,340,536 8,340,536
Units issued and outstanding at the end of the period (in Shares) 8,340,536 8,340,536 8,340,536
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Organization
3 Months Ended
Mar. 31, 2023
Accounting Policies [Abstract]  
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]

1. Organization

 

Osprey Bitcoin Trust (the “Trust”) is a Delaware Statutory Trust, formed on January 3, 2019, which commenced operations on January 22, 2019 and is governed by the Second Amended and Restated Declaration of Trust and Trust Agreement dated November 1, 2020, as amended by the Amendment to Trust Agreement dated April 15, 2022 (the “Trust Agreement”). In general, the Trust holds Bitcoin and, from time to time, issues common units of fractional undivided beneficial interest (“Units”) in exchange for Bitcoin. The investment objective of the Trust is for the Units to track the price of Bitcoin, less liabilities and expenses of the Trust. The Units are designed as a convenient and cost-effective method for investors to gain investment exposure to Bitcoin, similar to a direct investment in Bitcoin.

 

Osprey Funds, LLC (the “Sponsor”) acts as the sponsor of the Trust. Other funds under the Osprey name are also managed by the Sponsor. The Sponsor is responsible for the day-to-day administration of the Trust pursuant to the provisions of the Trust Agreement. The Sponsor is responsible for preparing and providing annual reports on behalf of the Trust to investors and is also responsible for selecting and monitoring the Trust’s service providers. As consideration for the Sponsor’s services, the Trust pays the Sponsor a Management Fee (as defined herein) as discussed in Notes 2 and 5.

 

Coinbase Custody Trust Company, LLC (the “Custodian”) is the digital asset custodian of the Trust. Fidelity Digital Assets Services, LLC (“FDAS”) served as our digital asset custodian until March 2022. The Custodian is responsible for safeguarding the Bitcoin held by the Trust.

 

The transfer agent for the Trust (the “Transfer Agent”) is Continental Stock Transfer & Trust Company. The Transfer Agent is responsible for the issuance and redemption of Units, the payment, if any, of distributions with respect to the Units, the recording of the issuance of the Units and the maintaining of certain records therewith.

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Summary of Significant Accounting Policies
3 Months Ended
Mar. 31, 2023
Accounting Policies [Abstract]  
Significant Accounting Policies [Text Block]

2. Summary of Significant Accounting Policies

 

Basis of Presentation

 

The financial statements are expressed in US dollars and have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”). The Trust qualifies as an investment company for accounting purposes pursuant to the accounting and reporting guidance under Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 946, Financial Services – Investment Companies. The Trust is not registered with U.S. Securities and Exchange Commission (“SEC”) under the Investment Company Act of 1940. The results for the three months ended March 31, 2023 and 2022 are not necessarily indicative of the results for the entire year or any subsequent interim period. These financial statements should be read in conjunction with the audited financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022.

 

Reclassifications

 

Certain prior period amounts have been reclassified in order to confirm with the current period presentation. These reclassifications have no impact on the Trust’s previously reported net investment loss.

 

Use of Estimates

 

GAAP requires management to make estimates and assumptions that affect the reported amounts in the financial statements and accompanying notes. The most significant estimate in the financial statements is the fair value of investments in Bitcoin. Actual results could differ from those estimates and these differences could be material.

Cash

 

Cash is received by the Trust from investors and converted into Bitcoin for investment. At times, bank deposits may be in excess of federally insured limits. In accordance with ASC 230 “Statement of Cash Flows”, the Trust qualifies for an exemption from the requirement to provide a statement of cash flows and has elected not to provide a statement of cash flows.

 

Subscriptions and Redemptions of Units

 

Proceeds received by the Trust from the issuance and sale of Units consist of Bitcoin deposits and forked or airdropped cryptocurrency coins from the Bitcoin Network, or their respective U.S. dollar cash equivalents. Such Bitcoins (or cash equivalent) will only be (1) owned by the Trust and held by the Custodian (or, if cash, used by the Sponsor to purchase Bitcoins to be held by the Custodian), (2) disbursed (or converted to U.S. dollars, if necessary) to pay the Trust’s expenses, (3) distributed to Accredited Investors (subject to obtaining regulatory approval from the SEC described below) in connection with the redemption of Units, (4) distributed (or converted to U.S. dollars, prior to distribution) to Unitholders as dividends, and (5) liquidated in the event that the Trust terminates or as otherwise required by law or regulation.

 

The Trust conducts its transactions in Bitcoin, including receiving Bitcoin for the creation of Units and delivering Bitcoin for the redemption of Units (if a redemption program were to be established) and for the payment of the Management Fee.

 

During June 2020, the Trust began a continuous offering of up to $5,000,000 of Units with no par value, each Unit representing a fractional undivided beneficial interest in the Trust. 154,183 Units were sold to both accredited and non-accredited investors in an offering of up to $5,000,000 of Units, dated June 1, 2020, registered in Connecticut and qualified in New York, pursuant to Rule 504 of Regulation D under the Securities Act of 1933, as amended (the “Securities Act”) (“Rule 504 Offering”). The Rule 504 Offering closed on August 12, 2020.

 

On November 12, 2020, the Trust began an offering of an unlimited number of Units pursuant to Rule 506(c) under the Securities Act (“November 2020 Offering”). 4,206,224 Units were sold in the November 2020 Offering.

 

On January 14, 2021, the Financial Industry Regulatory Authority (“FINRA”) determined that the Trust’s Units met the criteria for trading on the over-the-counter market (“OTC Market”). On February 16, 2021, the Trust’s Units began trading in the OTC Market, operated by OTC Markets Group, Inc., under the ticker symbol “OBTC”. On March 3, 2021, the Trust’s Units began trading in the OTCQX tier of the OTC Market, under the ticker symbol “OBTC.”

 

Effective November 1, 2021, the Trust suspended the November 2020 Offering under Rule 506(c) under the Securities Act.

 

As of March 31, 2023, there were 8,340,536 Units issued and outstanding. 159,387 of the Units are restricted securities that may not be resold absent registration or an exemption from registration under the Securities Act, and 8,181,149 of the Units are unrestricted securities.

 

The Trust is currently unable to redeem Units. On January 13, 2023, the Sponsor communicated to the Trust’s Unitholders that it is considering a redemption program for investors in the Trust and that such redemption program would likely involve limited periodic redemptions of Units, although the Trust had not ruled out the possibility of an open-ended redemption program.

 

Investment Transactions and Revenue Recognition

 

The Trust identifies Bitcoin as an “other investment” in accordance with ASC 946. The Trust records its investment transactions on a trade date basis and changes in fair value are reflected as the net change in unrealized appreciation or depreciation on investments. Realized gains and losses are calculated using a first in first out method. Realized gains and losses are recognized in connection with transactions including settling obligations for the Management Fee and other expenses in Bitcoin.

Management Fee

 

The Trust is expected to pay the remuneration due to the Sponsor (the “Management Fee” or “Sponsor Fee”). The Management Fee is charged by the Sponsor to the Trust at an annual rate of 0.49% of the daily Net Asset Value of the Trust and accrues daily in Bitcoin. The Management Fee is payable at the Sponsor’s sole discretion, in Bitcoin or in U.S. Dollars for the Bitcoin Market Price (as defined herein) in effect for such Bitcoin at the time of payment.

 

Trust Expenses

 

In accordance with the Trust Agreement, the Sponsor bears the routine operational, administrative and other ordinary administrative operating expenses of the Trust (the “Assumed Expenses”) other than audit fees, index license fees, aggregate legal fees in excess of $50,000 per annum and the fees of the Custodian ( “Excluded Expenses”) and certain extraordinary expenses of the Trust, including but not limited to taxes and governmental charges, expenses and costs, expenses and indemnities related to any extraordinary services performed by the Sponsor (or any other service provider, including the Trustee) on behalf of the Trust to protect the Trust or the interest of Unitholders, indemnification expenses, fees and expenses related to public trading on OTCQX (“Extraordinary Expenses”).

 

Fair Value Measurements

 

The Trust’s investment in Bitcoin is stated at fair value in accordance with ASC 820-10 “Fair Value Measurements”, which outlines the application of fair value accounting. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., the “exit price”) in an orderly transaction between market participants at the measurement date. ASC 820-10 requires the Trust to assume that Bitcoin is sold in its principal market to market participants or, in the absence of a principal market, the most advantageous market. Principal market is the market with the greatest volume and level of activity for Bitcoin, and the most advantageous market is defined 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. The principal market is generally selected based on the most liquid and reliable exchange (including consideration of the ability for the Trust to access the specific market, either directly or through an intermediary, at the end of each period). The Sponsor has identified Coinbase Pro as the principal market for Bitcoin.

 

GAAP utilizes a fair value hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are those that market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Trust. Unobservable inputs reflect the Trust’s assumptions about the inputs market participants would use in pricing the asset or liability developed based on the best information available in the circumstances.

 

The fair value hierarchy is categorized into three levels based on the inputs as follows:

 

Level 1 – Valuations based on unadjusted quoted prices in active markets for identical assets or liabilities that the Trust has the ability to access. Since valuations are based on quoted prices that are readily and regularly available in an active market, these valuations do not entail a significant degree of judgment.

 

Level 2 – Valuations based on quoted prices in markets that are not active or for which significant inputs are observable, either directly or indirectly.

 

Level 3 – Valuations based on inputs that are unobservable and significant to the overall fair value measurement.

 

The availability of valuation techniques and observable inputs can vary by investment. To the extent that valuations are based on sources that are less observable or unobservable in the market, the determination of fair value requires more judgment. Fair value estimates do not necessarily represent the amounts that may be ultimately realized by the Trust.

 

Definition of Net Asset Value

 

The net asset value (“NAV”) of the Trust is used by the Trust in its day-to-day operations to measure the net value of the Trust’s assets. The NAV is calculated on each business day and is equal to the aggregate value of the Trust’s assets less its liabilities (which include accrued but unpaid fees and expenses, both estimated and finally determined), based on the Bitcoin Market Price. In calculating the value of the Bitcoin held by the Trust on any business day, the Trust will

use the market price as of 4:00 p.m. New York time. The Trust will also calculate the NAV per Unit of the Trust daily, which equals the NAV of the Trust divided by the number of outstanding Units (the “NAV per Unit”). The Trust considers 4:00 p.m. New York time as a cut off for the end of day reporting.

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Fair Value of Bitcoin
3 Months Ended
Mar. 31, 2023
Fair Value Disclosures [Abstract]  
Fair Value Disclosures [Text Block]

3. Fair Value of Bitcoin

 

The investment measured at fair value on a recurring basis and categorized using the three levels of fair value hierarchy consisted of the following as of March 31, 2023 and December 31, 2022:

 

   Number  Per Bitcoin  Amount at  Fair Value Measurement Category
March 31, 2023  of Bitcoin  Fair Value  Fair Value  Level 1  Level 2  Level 3
                   
Investment in Bitcoin   2,786.69    $ 28,467.79    $ 79,331,020    $
-
    $ 79,331,020   $
-
 
                               
   Number  Per Bitcoin  Amount at  Fair Value Measurement Category
December 31, 2022  of Bitcoin  Fair Value  Fair Value  Level 1  Level 2  Level 3
                               
Investment in Bitcoin   2,792.88    $16,561.21    $46,253,445   $
-
    $46,253,445   $
-
 

 

The Trust determined the fair value per Bitcoin using the price provided at 4:00 p.m., New York time, by Coinbase Pro, the Trust’s principal market.

 

The Management Fee payable accrued in Bitcoin is converted into United States dollar amount at the period-end Bitcoin Market Price. The fluctuations arising from the effect of changes in liability denominated in Bitcoin are included with the net realized or unrealized appreciation or depreciation on investment in Bitcoin in the statements of operations.

 

The following represents the changes in quantity and the respective fair value of Bitcoin for the three months ended March 31, 2023:

 

   Bitcoin  Fair Value
Balance at January 1, 2023   2,792.88    $ 46,253,445 
Bitcoin distributed for Management Fee, related party   (3.36)   (71,320)
Bitcoin distributed for other fees   (2.83)   (63,322)
Net realized gain on investment in Bitcoin   -    112,474 
Net change in unrealized appreciation on investment in Bitcoin   -    33,099,743 
Balance at March 31, 2023   2,786.69    $79,331,020 

 

Net realized gain on the transfer of Bitcoins to pay the Management Fee and other expenses for the three months ended March 31, 2023, was $108,356, which includes $112,474 net realized gain on investment in Bitcoin, and $4,118 net realized loss resulted from the changes in liabilities denominated in Bitcoin. Net change in unrealized appreciation on investment in Bitcoin for the three months ended March 31, 2023, was $33,095,266, which includes net change in unrealized appreciation on investment in Bitcoin of $33,099,743, and $4,477 net unrealized depreciation due to changes in value of liabilities denominated in Bitcoin.

 

The following represents the changes in quantity and the respective fair value of Bitcoin for the year ended December 31, 2022:

 

   Bitcoin  Fair Value
Balance at January 1, 2022   2,828.93    $ 129,756,984 
Bitcoin distributed for Management Fee, related party   (13.78)   (407,612)
Bitcoin distributed for other fees   (22.27)   (531,601)
Net realized gain on investment in Bitcoin   -    809,988 
Net change in unrealized depreciation on investment in Bitcoin   -    (83,374,314)
Balance at December 31, 2022   2,792.88    $ 46,253,445 

Net realized gain on the transfer of Bitcoins to pay the Management Fee and other expenses for the year ended December 31, 2022, was $834,003, which includes $809,988 net realized gain on investment in Bitcoin, and $24,015 net realized gain resulted from the changes in liabilities denominated in Bitcoin. Net change in unrealized depreciation on investment in Bitcoin for the year ended December 31, 2022, was $83,373,064, which includes net change in unrealized depreciation on investment in Bitcoin of $83,374,314, and $1,250 net unrealized appreciation due to changes in value of liabilities denominated in Bitcoin.

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Income Taxes
3 Months Ended
Mar. 31, 2023
Income Tax Disclosure [Abstract]  
Income Tax Disclosure [Text Block]

4. Income Taxes

 

The Trust is a grantor trust for U.S. federal income tax purposes. Accordingly, the Trust will not be subject to U.S. federal income tax. Rather, each beneficial owner of Units 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, gain, losses and deductions will “flow through” to each beneficial owner of Units.

 

In accordance with GAAP, the Trust has defined the threshold for recognizing the benefits of tax return positions in the financial statements as “more-likely-than-not” to be sustained by the applicable taxing authority and requires measurement of a tax position meeting the “more-likely-than-not” threshold, based on the largest benefit that is more than 50% likely to be realized. As of March 31, 2023, the Trust did not have a liability for any unrecognized tax amounts for uncertain tax positions related to federal, state, and local income taxes.

 

However, the conclusions concerning the determination of “more-likely-than-not” tax positions may be subject to review and adjustment at a later date based on factors including, but not limited to, further implementation guidance and on-going analyses of and changes to tax laws, regulations and interpretations thereof.

 

The Sponsor of the Trust has evaluated whether or not there are uncertain tax positions that require financial statement recognition and has determined that no reserves for uncertain tax positions related to federal, state and local income taxes existed as of March 31, 2023 and December 31, 2022. The Trust’s 2020, 2021, and 2022 tax returns are subject to audit by federal, state and local tax authorities.

XML 23 R12.htm IDEA: XBRL DOCUMENT v3.23.1
Related Parties
3 Months Ended
Mar. 31, 2023
Related Party Transactions [Abstract]  
Related Party Transactions Disclosure [Text Block]

5. Related Parties

 

The Sponsor pays certain expenses on behalf of, and is reimbursed by, the Trust. For the three months ended March 31, 2023, and 2022 the Trust reimbursed the Sponsor the expenses in the amount of $63,322 and $58,497 respectively.

 

For the three months ended March 31, 2023, and 2022, the Trust incurred Management Fees of $76,394 and $141,142, respectively, which are recorded in the accompanying statements of operations. As of March 31, 2023 and December 31, 2022, there were unpaid Management Fees of $32,882 and $19,213, respectively, which are recorded as management fee payable in the accompanying statements of assets and liabilities.

 

The Trust’s Management Fee is accrued daily in Bitcoins and will be payable, at the Sponsor’s sole discretion, in U.S. dollars or in Bitcoins at the Bitcoin market price in effect at the time of such payment. From inception through March 31, 2023, all Management Fees have been made in Bitcoin to the Sponsor.

XML 24 R13.htm IDEA: XBRL DOCUMENT v3.23.1
Risks and Uncertainties
3 Months Ended
Mar. 31, 2023
Risks and Uncertainties [Abstract]  
Concentration Risk Disclosure [Text Block]

6. Risks and Uncertainties

 

Investment in Bitcoin

 

The Trust is subject to various risks including market risk, liquidity risk, and other risks related to its concentration in a single asset, Bitcoin. Investing in Bitcoin is currently unregulated, highly speculative, and volatile.

 

The net asset value of the Trust relates primarily to the value of Bitcoin held by the Trust, and fluctuations in the price of Bitcoin could materially and adversely affect an investment in the Units of the Trust. The price of Bitcoin has a limited history. During such history, Bitcoin prices have been volatile and subject to influence by many factors including the levels of liquidity.

If Bitcoin exchanges continue to experience significant price fluctuations, the Trust may experience losses. Several factors may affect the price of Bitcoin, including, but not limited to, global Bitcoin supply and demand, theft of Bitcoin from global exchanges or vaults, and competition from other forms of digital currency or payment services. The Bitcoin held by the Trust are commingled and the Trust’s Unitholders have no specific rights to any specific Bitcoin. In the event of the insolvency of the Trust, its assets may be inadequate to satisfy a claim by its Unitholders.

 

There is currently no clearing house for Bitcoin, nor is there a central or major depository for the custody of Bitcoin. There is a risk that some or all of the Trust’s Bitcoin could be lost or stolen. The Trust does not have insurance protection on its Bitcoin which exposes the Trust and its Unitholders to the risk of loss of the Trust’s Bitcoin. Further, Bitcoin transactions are irrevocable. Stolen or incorrectly transferred Bitcoin may be irretrievable. As a result, any incorrectly executed Bitcoin transactions could adversely affect an investment in the Trust.

 

To the extent private keys for Bitcoin addresses are lost, destroyed or otherwise compromised and no backup of the private keys are accessible, the Trust may be unable to access the Bitcoin held in the associated addresses and the private keys will not be capable of being restored. The processes by which Bitcoin transactions are settled are dependent on the Bitcoin peer-to-peer network, and as such, the Trust is subject to operational risk. A risk also exists with respect to previously unknown technical vulnerabilities, which may adversely affect the value of Bitcoin.

 

The Custodian

 

The digital assets owned by the Trust are held by the Custodian and secured in a segregated custody account. All digital asset private keys are stored in offline storage, or “cold” storage. “Cold” storage is a safeguarding method by which the private keys corresponding to digital assets are disconnected and/or deleted entirely from the internet. As a result of digital assets being stored in “cold” storage, any withdrawal and subsequent transaction request to the Custodian by the Trust requires up to twenty-four (24) hour prior notice to process. Such time delay between the withdrawal request and processing of the withdrawal may negatively impact the price of the digital asset upon sale. The Custodian provides the Trust with monthly account statements. The Custodian is independent from the Sponsor.

XML 25 R14.htm IDEA: XBRL DOCUMENT v3.23.1
Indemnifications
3 Months Ended
Mar. 31, 2023
Indemnifications Abstract  
Indemnifications [Text Block]

7. Indemnifications

 

In the normal course of business, the Trust enters into contracts with service providers that contain a variety of representations and warranties and which provide general indemnifications. It is not possible to determine the maximum potential exposure or amount under these agreements due to the Trust having no prior claims. Based on experience, the Trust would expect the risk of loss to be remote.

XML 26 R15.htm IDEA: XBRL DOCUMENT v3.23.1
Financial Highlights
3 Months Ended
Mar. 31, 2023
Investment Company, Financial Highlights [Abstract]  
Investment Company, Financial Highlights [Text Block]

8. Financial Highlights

 

   Three months
ended March
31, 2023
  Three months
ended March
31, 2022
Per Unit Performance
(for a unit outstanding throughout the period)
          
           
Net asset value per unit at beginning of period  $5.52   $15.55 
           
Net increase (decrease) in net assets resulting from operations          
Net realized gain (loss) and change in unrealized appreciation (depreciation) on investment   3.98    (0.10)
Net investment loss   (0.03)   (0.03)
Net increase (decrease) in net assets resulting from operations   3.95    (0.13)
           
Net asset value per unit at end of period  $9.47   $15.42 
           
Total return   71.56%   (0.84)%
           
Ratios to average net asset value          
Expenses   1.30%   0.89%
           
Net investment loss   (1.30)%   (0.89)%

 

An individual Unitholder’s return, ratios, and per Unit performance may vary from those presented above based on the timing of Unit transactions. Total return and ratios to average net asset value are calculated for the Unitholders taken as a whole. Ratios have been annualized for the partial periods ended March 31, 2023 and 2022.

XML 27 R16.htm IDEA: XBRL DOCUMENT v3.23.1
Subsequent Events
3 Months Ended
Mar. 31, 2023
Subsequent Events [Abstract]  
Subsequent Events [Text Block]

9. Subsequent Events

 

There are no events that have occurred that require disclosure other than that which has already been disclosed in these notes to the financial statements.

XML 28 R17.htm IDEA: XBRL DOCUMENT v3.23.1
Accounting Policies, by Policy (Policies)
3 Months Ended
Mar. 31, 2023
Accounting Policies [Abstract]  
Basis of Accounting, Policy [Policy Text Block]

Basis of Presentation

 

The financial statements are expressed in US dollars and have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”). The Trust qualifies as an investment company for accounting purposes pursuant to the accounting and reporting guidance under Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 946, Financial Services – Investment Companies. The Trust is not registered with U.S. Securities and Exchange Commission (“SEC”) under the Investment Company Act of 1940. The results for the three months ended March 31, 2023 and 2022 are not necessarily indicative of the results for the entire year or any subsequent interim period. These financial statements should be read in conjunction with the audited financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022.

 

Use of Estimates, Policy [Policy Text Block]

Use of Estimates

 

GAAP requires management to make estimates and assumptions that affect the reported amounts in the financial statements and accompanying notes. The most significant estimate in the financial statements is the fair value of investments in Bitcoin. Actual results could differ from those estimates and these differences could be material.

Cash and Cash Equivalents, Policy [Policy Text Block]

Cash

 

Cash is received by the Trust from investors and converted into Bitcoin for investment. At times, bank deposits may be in excess of federally insured limits. In accordance with ASC 230 “Statement of Cash Flows”, the Trust qualifies for an exemption from the requirement to provide a statement of cash flows and has elected not to provide a statement of cash flows.

 

Subscriptions and Redemptions of Units [Policy Text Block]

Subscriptions and Redemptions of Units

 

Proceeds received by the Trust from the issuance and sale of Units consist of Bitcoin deposits and forked or airdropped cryptocurrency coins from the Bitcoin Network, or their respective U.S. dollar cash equivalents. Such Bitcoins (or cash equivalent) will only be (1) owned by the Trust and held by the Custodian (or, if cash, used by the Sponsor to purchase Bitcoins to be held by the Custodian), (2) disbursed (or converted to U.S. dollars, if necessary) to pay the Trust’s expenses, (3) distributed to Accredited Investors (subject to obtaining regulatory approval from the SEC described below) in connection with the redemption of Units, (4) distributed (or converted to U.S. dollars, prior to distribution) to Unitholders as dividends, and (5) liquidated in the event that the Trust terminates or as otherwise required by law or regulation.

 

The Trust conducts its transactions in Bitcoin, including receiving Bitcoin for the creation of Units and delivering Bitcoin for the redemption of Units (if a redemption program were to be established) and for the payment of the Management Fee.

 

During June 2020, the Trust began a continuous offering of up to $5,000,000 of Units with no par value, each Unit representing a fractional undivided beneficial interest in the Trust. 154,183 Units were sold to both accredited and non-accredited investors in an offering of up to $5,000,000 of Units, dated June 1, 2020, registered in Connecticut and qualified in New York, pursuant to Rule 504 of Regulation D under the Securities Act of 1933, as amended (the “Securities Act”) (“Rule 504 Offering”). The Rule 504 Offering closed on August 12, 2020.

 

On November 12, 2020, the Trust began an offering of an unlimited number of Units pursuant to Rule 506(c) under the Securities Act (“November 2020 Offering”). 4,206,224 Units were sold in the November 2020 Offering.

 

On January 14, 2021, the Financial Industry Regulatory Authority (“FINRA”) determined that the Trust’s Units met the criteria for trading on the over-the-counter market (“OTC Market”). On February 16, 2021, the Trust’s Units began trading in the OTC Market, operated by OTC Markets Group, Inc., under the ticker symbol “OBTC”. On March 3, 2021, the Trust’s Units began trading in the OTCQX tier of the OTC Market, under the ticker symbol “OBTC.”

 

Effective November 1, 2021, the Trust suspended the November 2020 Offering under Rule 506(c) under the Securities Act.

 

As of March 31, 2023, there were 8,340,536 Units issued and outstanding. 159,387 of the Units are restricted securities that may not be resold absent registration or an exemption from registration under the Securities Act, and 8,181,149 of the Units are unrestricted securities.

 

The Trust is currently unable to redeem Units. On January 13, 2023, the Sponsor communicated to the Trust’s Unitholders that it is considering a redemption program for investors in the Trust and that such redemption program would likely involve limited periodic redemptions of Units, although the Trust had not ruled out the possibility of an open-ended redemption program.

 

Revenue Recognition, Sales of Goods [Policy Text Block]

Investment Transactions and Revenue Recognition

 

The Trust identifies Bitcoin as an “other investment” in accordance with ASC 946. The Trust records its investment transactions on a trade date basis and changes in fair value are reflected as the net change in unrealized appreciation or depreciation on investments. Realized gains and losses are calculated using a first in first out method. Realized gains and losses are recognized in connection with transactions including settling obligations for the Management Fee and other expenses in Bitcoin.

Management and Investment Advisory Fees, Policy [Policy Text Block]

Management Fee

 

The Trust is expected to pay the remuneration due to the Sponsor (the “Management Fee” or “Sponsor Fee”). The Management Fee is charged by the Sponsor to the Trust at an annual rate of 0.49% of the daily Net Asset Value of the Trust and accrues daily in Bitcoin. The Management Fee is payable at the Sponsor’s sole discretion, in Bitcoin or in U.S. Dollars for the Bitcoin Market Price (as defined herein) in effect for such Bitcoin at the time of payment.

 

Trust Expenses [Policy Text Block]

Trust Expenses

 

In accordance with the Trust Agreement, the Sponsor bears the routine operational, administrative and other ordinary administrative operating expenses of the Trust (the “Assumed Expenses”) other than audit fees, index license fees, aggregate legal fees in excess of $50,000 per annum and the fees of the Custodian ( “Excluded Expenses”) and certain extraordinary expenses of the Trust, including but not limited to taxes and governmental charges, expenses and costs, expenses and indemnities related to any extraordinary services performed by the Sponsor (or any other service provider, including the Trustee) on behalf of the Trust to protect the Trust or the interest of Unitholders, indemnification expenses, fees and expenses related to public trading on OTCQX (“Extraordinary Expenses”).

 

Fair Value Measurement, Policy [Policy Text Block]

Fair Value Measurements

 

The Trust’s investment in Bitcoin is stated at fair value in accordance with ASC 820-10 “Fair Value Measurements”, which outlines the application of fair value accounting. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., the “exit price”) in an orderly transaction between market participants at the measurement date. ASC 820-10 requires the Trust to assume that Bitcoin is sold in its principal market to market participants or, in the absence of a principal market, the most advantageous market. Principal market is the market with the greatest volume and level of activity for Bitcoin, and the most advantageous market is defined 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. The principal market is generally selected based on the most liquid and reliable exchange (including consideration of the ability for the Trust to access the specific market, either directly or through an intermediary, at the end of each period). The Sponsor has identified Coinbase Pro as the principal market for Bitcoin.

 

GAAP utilizes a fair value hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are those that market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Trust. Unobservable inputs reflect the Trust’s assumptions about the inputs market participants would use in pricing the asset or liability developed based on the best information available in the circumstances.

 

The fair value hierarchy is categorized into three levels based on the inputs as follows:

 

Level 1 – Valuations based on unadjusted quoted prices in active markets for identical assets or liabilities that the Trust has the ability to access. Since valuations are based on quoted prices that are readily and regularly available in an active market, these valuations do not entail a significant degree of judgment.

 

Level 2 – Valuations based on quoted prices in markets that are not active or for which significant inputs are observable, either directly or indirectly.

 

Level 3 – Valuations based on inputs that are unobservable and significant to the overall fair value measurement.

 

The availability of valuation techniques and observable inputs can vary by investment. To the extent that valuations are based on sources that are less observable or unobservable in the market, the determination of fair value requires more judgment. Fair value estimates do not necessarily represent the amounts that may be ultimately realized by the Trust.

 

Definition of Net Asset Value [Policy Text Block]

Definition of Net Asset Value

 

The net asset value (“NAV”) of the Trust is used by the Trust in its day-to-day operations to measure the net value of the Trust’s assets. The NAV is calculated on each business day and is equal to the aggregate value of the Trust’s assets less its liabilities (which include accrued but unpaid fees and expenses, both estimated and finally determined), based on the Bitcoin Market Price. In calculating the value of the Bitcoin held by the Trust on any business day, the Trust will

use the market price as of 4:00 p.m. New York time. The Trust will also calculate the NAV per Unit of the Trust daily, which equals the NAV of the Trust divided by the number of outstanding Units (the “NAV per Unit”). The Trust considers 4:00 p.m. New York time as a cut off for the end of day reporting.

Reclassification, Comparability Adjustment [Policy Text Block]

Reclassifications

 

Certain prior period amounts have been reclassified in order to confirm with the current period presentation. These reclassifications have no impact on the Trust’s previously reported net investment loss.

 

XML 29 R18.htm IDEA: XBRL DOCUMENT v3.23.1
Fair Value of Bitcoin (Tables)
3 Months Ended
Mar. 31, 2023
Fair Value Disclosures [Abstract]  
Fair Value, Assets Measured on Recurring Basis [Table Text Block]

The investment measured at fair value on a recurring basis and categorized using the three levels of fair value hierarchy consisted of the following as of March 31, 2023 and December 31, 2022:

 

   Number  Per Bitcoin  Amount at  Fair Value Measurement Category
March 31, 2023  of Bitcoin  Fair Value  Fair Value  Level 1  Level 2  Level 3
                   
Investment in Bitcoin   2,786.69    $ 28,467.79    $ 79,331,020    $
-
    $ 79,331,020   $
-
 
                               
   Number  Per Bitcoin  Amount at  Fair Value Measurement Category
December 31, 2022  of Bitcoin  Fair Value  Fair Value  Level 1  Level 2  Level 3
                               
Investment in Bitcoin   2,792.88    $16,561.21    $46,253,445   $
-
    $46,253,445   $
-
 

 

Investment Holdings, Schedule of Investments [Table Text Block]
   Bitcoin  Fair Value
Balance at January 1, 2023   2,792.88    $ 46,253,445 
Bitcoin distributed for Management Fee, related party   (3.36)   (71,320)
Bitcoin distributed for other fees   (2.83)   (63,322)
Net realized gain on investment in Bitcoin   -    112,474 
Net change in unrealized appreciation on investment in Bitcoin   -    33,099,743 
Balance at March 31, 2023   2,786.69    $79,331,020 

 

The following represents the changes in quantity and the respective fair value of Bitcoin for the three months ended March 31, 2023:

 

   Bitcoin  Fair Value
Balance at January 1, 2022   2,828.93    $ 129,756,984 
Bitcoin distributed for Management Fee, related party   (13.78)   (407,612)
Bitcoin distributed for other fees   (22.27)   (531,601)
Net realized gain on investment in Bitcoin   -    809,988 
Net change in unrealized depreciation on investment in Bitcoin   -    (83,374,314)
Balance at December 31, 2022   2,792.88    $ 46,253,445 
XML 30 R19.htm IDEA: XBRL DOCUMENT v3.23.1
Financial Highlights (Tables)
3 Months Ended
Mar. 31, 2023
Investment Company, Financial Highlights [Abstract]  
Investment Company, Financial Highlights [Table Text Block]
   Three months
ended March
31, 2023
  Three months
ended March
31, 2022
Per Unit Performance
(for a unit outstanding throughout the period)
          
           
Net asset value per unit at beginning of period  $5.52   $15.55 
           
Net increase (decrease) in net assets resulting from operations          
Net realized gain (loss) and change in unrealized appreciation (depreciation) on investment   3.98    (0.10)
Net investment loss   (0.03)   (0.03)
Net increase (decrease) in net assets resulting from operations   3.95    (0.13)
           
Net asset value per unit at end of period  $9.47   $15.42 
           
Total return   71.56%   (0.84)%
           
Ratios to average net asset value          
Expenses   1.30%   0.89%
           
Net investment loss   (1.30)%   (0.89)%

 

XML 31 R20.htm IDEA: XBRL DOCUMENT v3.23.1
Summary of Significant Accounting Policies (Details) - USD ($)
3 Months Ended
Mar. 31, 2023
Dec. 31, 2022
Mar. 31, 2022
Dec. 31, 2021
Nov. 12, 2020
Jun. 30, 2020
Accounting Policies [Abstract]            
Common Stock, Shares, Issued         4,206,224 154,183
Common Stock, Value, Issued (in Dollars)           $ 5,000,000
Shares, Outstanding 8,340,536 8,340,536 8,340,536 8,340,536    
Restricted Stock, Shares Issued Net of Shares for Tax Withholdings 159,387          
Common Stock, Shares, Outstanding 8,181,149          
Percentage Of Net Asset Value Due As Management Fee 0.49%          
Shares, Issued 8,340,536          
XML 32 R21.htm IDEA: XBRL DOCUMENT v3.23.1
Fair Value of Bitcoin (Details) - USD ($)
3 Months Ended 12 Months Ended
Mar. 31, 2023
Mar. 31, 2022
Dec. 31, 2022
Fair Value of Bitcoin (Details) [Line Items]      
Realized Investment Gains (Losses) $ 108,356 $ 195,123 $ 834,003
Unrealized Gain (Loss) on Investments 33,095,266 $ (981,213) 83,373,064
Investment Owned, Unrecognized Unrealized Appreciation (Depreciation), Net 33,099,743   (83,374,314)
Resulting from the change in liabilities denominated in Bitcoin [Member]      
Fair Value of Bitcoin (Details) [Line Items]      
Realized Investment Gains (Losses) 4,118   24,015
Investment Owned, Unrecognized Unrealized Appreciation (Depreciation), Net 4,477   (1,250)
On investment in Bitcoin [Member]      
Fair Value of Bitcoin (Details) [Line Items]      
Realized Investment Gains (Losses) $ 112,474   $ 809,988
XML 33 R22.htm IDEA: XBRL DOCUMENT v3.23.1
Fair Value of Bitcoin (Details) - Schedule of Assets Measured at Fair Value
3 Months Ended 12 Months Ended
Mar. 31, 2023
USD ($)
Dec. 31, 2022
USD ($)
Dec. 31, 2021
USD ($)
Fair Value of Bitcoin (Details) - Schedule of Assets Measured at Fair Value [Line Items]      
Investment in Bitcoin, Number of Bitcoin 2,786.69 2,792.88  
Investment in Bitcoin, Per Bitcoin Fair Value $ 28,467.79 $ 16,561.21  
Investment in Bitcoin, Amount at Fair Value 79,331,020 46,253,445 $ 129,756,984
Fair Value, Inputs, Level 1 [Member]      
Fair Value of Bitcoin (Details) - Schedule of Assets Measured at Fair Value [Line Items]      
Investment in Bitcoin, Amount at Fair Value  
Fair Value, Inputs, Level 2 [Member]      
Fair Value of Bitcoin (Details) - Schedule of Assets Measured at Fair Value [Line Items]      
Investment in Bitcoin, Amount at Fair Value 79,331,020 46,253,445  
Fair Value, Inputs, Level 3 [Member]      
Fair Value of Bitcoin (Details) - Schedule of Assets Measured at Fair Value [Line Items]      
Investment in Bitcoin, Amount at Fair Value  
XML 34 R23.htm IDEA: XBRL DOCUMENT v3.23.1
Fair Value of Bitcoin (Details) - Schedule of Changes in Fair Value of Bitcoin
3 Months Ended 12 Months Ended
Mar. 31, 2023
USD ($)
Mar. 31, 2022
USD ($)
Dec. 31, 2022
USD ($)
Schedule of Investments [Line Items]      
Balance 2,792.88 2,828.93 2,828.93
Balance $ 46,253,445 $ 129,756,984 $ 129,756,984
Balance 2,786.69   2,792.88
Balance $ 79,331,020   $ 46,253,445
Bitcoin distributed for Management Fee, related party (3.36)   (13.78)
Bitcoin distributed for Management Fee, related party $ (71,320)   $ (407,612)
Bitcoin distributed for other fees (2.83)   (22.27)
Bitcoin distributed for other fees $ (63,322)   $ (531,601)
Net realized gain on investment in Bitcoin 108,356 $ 195,123 834,003
Net change in unrealized depreciation on investment in Bitcoin     (83,374,314)
Net change in unrealized appreciation on investment in Bitcoin 33,099,743    
On investment in Bitcoin [Member]      
Schedule of Investments [Line Items]      
Net realized gain on investment in Bitcoin $ 112,474   $ 809,988
XML 35 R24.htm IDEA: XBRL DOCUMENT v3.23.1
Related Parties (Details) - USD ($)
3 Months Ended
Mar. 31, 2023
Mar. 31, 2022
Dec. 31, 2022
Related Party Transactions [Abstract]      
Expense Reimbursement $ 63,322 $ 58,497  
Sponsor Fees 76,394 $ 141,142  
Management Fee Payable $ 32,882   $ 19,213
XML 36 R25.htm IDEA: XBRL DOCUMENT v3.23.1
Financial Highlights (Details) - Schedule of Per Unit Performance - $ / shares
3 Months Ended
Mar. 31, 2023
Mar. 31, 2022
Schedule Of Per Unit Performance Abstract    
Net asset value per unit $ 5.52 $ 15.55
Total return 71.56% (0.84%)
Ratios to average net asset value    
Expenses 1.30% 0.89%
Net investment loss (1.30%) (0.89%)
Net increase (decrease) in net assets resulting from operations    
Net realized gain (loss) and change in unrealized appreciation (depreciation) on investment $ 3.98 $ (0.1)
Net investment loss (0.03) (0.03)
Net increase (decrease) in net assets resulting from operations 3.95 (0.13)
Net asset value per unit $ 9.47 $ 15.42
XML 37 c106305_10q-ixbrl_htm.xml IDEA: XBRL DOCUMENT 0001767057 2023-01-01 2023-03-31 0001767057 2023-04-18 0001767057 2023-03-31 0001767057 2022-12-31 0001767057 2022-01-01 2022-12-31 0001767057 2022-01-01 2022-03-31 0001767057 2021-12-31 0001767057 2022-03-31 0001767057 2020-06-30 0001767057 2020-11-12 0001767057 obtc:OnInvestmentInBitcoinMember 2023-01-01 2023-03-31 0001767057 obtc:ResultingFromTheChangeInLiabilitiesDenominatedInBitcoinMember 2023-01-01 2023-03-31 0001767057 obtc:ResultingFromTheChangeInLiabilitiesDenominatedInBitcoinMember 2023-03-31 0001767057 obtc:OnInvestmentInBitcoinMember 2022-01-01 2022-12-31 0001767057 obtc:ResultingFromTheChangeInLiabilitiesDenominatedInBitcoinMember 2022-01-01 2022-12-31 0001767057 obtc:ResultingFromTheChangeInLiabilitiesDenominatedInBitcoinMember 2022-12-31 0001767057 us-gaap:FairValueInputsLevel1Member 2023-03-31 0001767057 us-gaap:FairValueInputsLevel2Member 2023-03-31 0001767057 us-gaap:FairValueInputsLevel3Member 2023-03-31 0001767057 us-gaap:FairValueInputsLevel1Member 2022-12-31 0001767057 us-gaap:FairValueInputsLevel2Member 2022-12-31 0001767057 us-gaap:FairValueInputsLevel3Member 2022-12-31 shares iso4217:USD iso4217:USD shares pure 10-Q true 2023-03-31 false 000-56307 Osprey Bitcoin Trust DE 37-6695894 1241 Post Road 2nd Floor Fairfield CT 06824 914 214-4697 N/A N/A Yes Yes Non-accelerated Filer true true false false 8340536 75794346 75816514 79331020 46253445 257 18534 24600 79349554 46278302 32882 19213 225210 166804 79028 77505 337120 263522 79012434 46014780 -76978282 -76978282 2522788 2316820 1019913 911557 -3537027 29558239 79012434 46014780 8340536 8340536 9.47 5.52 75794346 2786.69 79331020 1 -318586 0 79012434 1 75816514 2792.88 46253445 1.01 -238665 -0.01 46014780 1 76394 141142 39685 43199 23554 84533 66335 3579 -205968 -272453 -205968 -272453 108356 195123 33095266 -981213 33203622 -786090 32997654 -1058543 -205968 -272453 108356 195123 33095266 -981213 32997654 -1058543 46014780 129673168 79012434 128614625 8340536 8340536 8340536 8340536 <p style="font: bold 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-indent: 0pt">1. <span style="font-size: 10pt">Organization</span></p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0 18pt; text-align: justify"> </p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 4.5pt 0 0; text-align: justify">Osprey Bitcoin Trust (the “Trust”) is a Delaware Statutory Trust, formed on January 3, 2019, which commenced operations on January 22, 2019 and is governed by the Second Amended and Restated Declaration of Trust and Trust Agreement dated November 1, 2020, as amended by the Amendment to Trust Agreement dated April 15, 2022 (the “Trust Agreement”). In general, the Trust holds Bitcoin and, from time to time, issues common units of fractional undivided beneficial interest (“Units”) in exchange for Bitcoin. The investment objective of the Trust is for the Units to track the price of Bitcoin, less liabilities and expenses of the Trust. The Units are designed as a convenient and cost-effective method for investors to gain investment exposure to Bitcoin, similar to a direct investment in Bitcoin.</p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 4.5pt 0 0; text-align: justify"> </p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 4.5pt 0 0; text-align: justify">Osprey Funds, LLC (the “Sponsor”) acts as the sponsor of the Trust. Other funds under the Osprey name are also managed by the Sponsor. The Sponsor is responsible for the day-to-day administration of the Trust pursuant to the provisions of the Trust Agreement. The Sponsor is responsible for preparing and providing annual reports on behalf of the Trust to investors and is also responsible for selecting and monitoring the Trust’s service providers. As consideration for the Sponsor’s services, the Trust pays the Sponsor a Management Fee (as defined herein) as discussed in Notes 2 and 5.</p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 4.5pt 0 0; text-align: justify"> </p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 4.5pt 0 0; text-align: justify">Coinbase Custody Trust Company, LLC (the “Custodian”) is the digital asset custodian of the Trust. Fidelity Digital Assets Services, LLC (“FDAS”) served as our digital asset custodian until March 2022. The Custodian is responsible for safeguarding the Bitcoin held by the Trust.</p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 4.5pt 0 0; text-align: justify"> </p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 4.5pt 0 0; text-align: justify">The transfer agent for the Trust (the “Transfer Agent”) is Continental Stock Transfer &amp; Trust Company. The Transfer Agent is responsible for the issuance and redemption of Units, the payment, if any, of distributions with respect to the Units, the recording of the issuance of the Units and the maintaining of certain records therewith.</p> <p style="font: bold 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-indent: 0pt">2. <span style="font-size: 10pt">Summary of Significant Accounting Policies</span></p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"><b> </b></p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><span style="text-decoration:underline">Basis of Presentation</span></p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">The financial statements are expressed in US dollars and have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”). The Trust qualifies as an investment company for accounting purposes pursuant to the accounting and reporting guidance under Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 946, Financial Services – Investment Companies. The Trust is not registered with U.S. Securities and Exchange Commission (“SEC”) under the Investment Company Act of 1940. The results for the three months ended March 31, 2023 and 2022 are not necessarily indicative of the results for the entire year or any subsequent interim period. These financial statements should be read in conjunction with the audited financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022.</span></p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><span style="text-decoration:underline">Reclassifications</span></p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Certain prior period amounts have been reclassified in order to confirm with the current period presentation. These reclassifications have no impact on the Trust’s previously reported net investment loss.</p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><span style="text-decoration:underline">Use of Estimates</span></p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">GAAP requires management to make estimates and assumptions that affect the reported amounts in the financial statements and accompanying notes. The most significant estimate in the financial statements is the fair value of investments in Bitcoin. Actual results could differ from those estimates and these differences could be material.</p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"><span style="text-decoration:underline">Cash</span></p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"> </p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Cash is received by the Trust from investors and converted into Bitcoin for investment. At times, bank deposits may be in excess of federally insured limits. In accordance with ASC 230 “Statement of Cash Flows”, the Trust qualifies for an exemption from the requirement to provide a statement of cash flows and has elected not to provide a statement of cash flows.</p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"> </p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"><span style="text-decoration:underline">Subscriptions and Redemptions of Units</span></p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"> </p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Proceeds received by the Trust from the issuance and sale of Units consist of Bitcoin deposits and forked or airdropped cryptocurrency coins from the Bitcoin Network, or their respective U.S. dollar cash equivalents. Such Bitcoins (or cash equivalent) will only be (1) owned by the Trust and held by the Custodian (or, if cash, used by the Sponsor to purchase Bitcoins to be held by the Custodian), (2) disbursed (or converted to U.S. dollars, if necessary) to pay the Trust’s expenses, (3) distributed to Accredited Investors (subject to obtaining regulatory approval from the SEC described below) in connection with the redemption of Units, (4) distributed (or converted to U.S. dollars, prior to distribution) to Unitholders as dividends, and (5) liquidated in the event that the Trust terminates or as otherwise required by law or regulation.</p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"> </p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The Trust conducts its transactions in Bitcoin, including receiving Bitcoin for the creation of Units and delivering Bitcoin for the redemption of Units (if a redemption program were to be established) and for the payment of the Management Fee.</p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">During June 2020, the Trust began a continuous offering of up to $5,000,000 of Units with no par value, each Unit representing a fractional undivided beneficial interest in the Trust. 154,183 Units were sold to both accredited and non-accredited investors in an offering of up to $5,000,000 of Units, dated June 1, 2020, registered in Connecticut and qualified in New York, pursuant to Rule 504 of Regulation D under the Securities Act of 1933, as amended (the “Securities Act”) (“Rule 504 Offering”). The Rule 504 Offering closed on August 12, 2020.</p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 23.3pt 0 0; text-align: justify"> </p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">On November 12, 2020, the Trust began an offering of an unlimited number of Units pursuant to Rule 506(c) under the Securities Act (“November 2020 Offering”). 4,206,224 Units were sold in the November 2020 Offering.</p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 23.3pt 0 0; text-align: justify"> </p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">On January 14, 2021, the Financial Industry Regulatory Authority (“FINRA”) determined that the Trust’s Units met the criteria for trading on the over-the-counter market (“OTC Market”). On February 16, 2021, the Trust’s Units began trading in the OTC Market, operated by OTC Markets Group, Inc., under the ticker symbol “OBTC”. On March 3, 2021, the Trust’s Units began trading in the OTCQX tier of the OTC Market, under the ticker symbol “OBTC.”</p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Effective November 1, 2021, the Trust suspended the November 2020 Offering under Rule 506(c) under the Securities Act.</p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">As of March 31, 2023, there were 8,340,536 Units issued and outstanding. 159,387 of the Units are restricted securities that may not be resold absent registration or an exemption from registration under the Securities Act, and 8,181,149 of the Units are unrestricted securities.</p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"> </p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">The Trust is currently unable to redeem Units. On January 13, 2023, the Sponsor communicated to the Trust’s Unitholders that it is considering a redemption program for investors in the Trust and that such redemption program would likely involve limited periodic redemptions of Units, although the Trust had not ruled out the possibility of an open-ended redemption program.</span></p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"> </p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><span style="text-decoration:underline">Investment Transactions and Revenue Recognition</span></p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"> </p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The Trust identifies Bitcoin as an “other investment” in accordance with ASC 946. The Trust records its investment transactions on a trade date basis and changes in fair value are reflected as the net change in unrealized appreciation or depreciation on investments. Realized gains and losses are calculated using a first in first out method. Realized gains and losses are recognized in connection with transactions including settling obligations for the Management Fee and other expenses in Bitcoin.</p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><span style="text-decoration:underline">Management Fee</span></p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"> </p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The Trust is expected to pay the remuneration due to the Sponsor (the “Management Fee” or “Sponsor Fee”). The Management Fee is charged by the Sponsor to the Trust at an annual rate of 0.49% of the daily Net Asset Value of the Trust and accrues daily in Bitcoin. The Management Fee is payable at the Sponsor’s sole discretion, in Bitcoin or in U.S. Dollars for the Bitcoin Market Price (as defined herein) in effect for such Bitcoin at the time of payment.</p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><span style="text-decoration:underline">Trust Expenses</span></p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 19.85pt 0 0; text-align: justify"> </p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">In accordance with the Trust Agreement, the Sponsor bears the routine operational, administrative and other ordinary administrative operating expenses of the Trust (the “Assumed Expenses”) other than audit fees, index license fees, aggregate legal fees in excess of $50,000 per annum and the fees of the Custodian ( “Excluded Expenses”) and certain extraordinary expenses of the Trust, including but not limited to taxes and governmental charges, expenses and costs, expenses and indemnities related to any extraordinary services performed by the Sponsor (or any other service provider, including the Trustee) on behalf of the Trust to protect the Trust or the interest of Unitholders, indemnification expenses, fees and expenses related to public trading on OTCQX (“Extraordinary Expenses”).</p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 19.85pt 0 0; text-align: justify"> </p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><span style="text-decoration:underline">Fair Value Measurements</span></p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"> </p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The Trust’s investment in Bitcoin is stated at fair value in accordance with ASC 820-10 “Fair Value Measurements”, which outlines the application of fair value accounting. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., the “exit price”) in an orderly transaction between market participants at the measurement date. ASC 820-10 requires the Trust to assume that Bitcoin is sold in its principal market to market participants or, in the absence of a principal market, the most advantageous market. Principal market is the market with the greatest volume and level of activity for Bitcoin, and the most advantageous market is defined 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. The principal market is generally selected based on the most liquid and reliable exchange (including consideration of the ability for the Trust to access the specific market, either directly or through an intermediary, at the end of each period). The Sponsor has identified Coinbase Pro as the principal market for Bitcoin.</p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">GAAP utilizes a fair value hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are those that market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Trust. Unobservable inputs reflect the Trust’s assumptions about the inputs market participants would use in pricing the asset or liability developed based on the best information available in the circumstances.</p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The fair value hierarchy is categorized into three levels based on the inputs as follows:</p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Level 1 – Valuations based on unadjusted quoted prices in active markets for identical assets or liabilities that the Trust has the ability to access. Since valuations are based on quoted prices that are readily and regularly available in an active market, these valuations do not entail a significant degree of judgment.</p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Level 2 – Valuations based on quoted prices in markets that are not active or for which significant inputs are observable, either directly or indirectly.</p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Level 3 – Valuations based on inputs that are unobservable and significant to the overall fair value measurement.</p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The availability of valuation techniques and observable inputs can vary by investment. To the extent that valuations are based on sources that are less observable or unobservable in the market, the determination of fair value requires more judgment. Fair value estimates do not necessarily represent the amounts that may be ultimately realized by the Trust.</p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><span style="text-decoration:underline">Definition of Net Asset Value </span></p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The net asset value (“NAV”) of the Trust is used by the Trust in its day-to-day operations to measure the net value of the Trust’s assets. The NAV is calculated on each business day and is equal to the aggregate value of the Trust’s assets less its liabilities (which include accrued but unpaid fees and expenses, both estimated and finally determined), based on the Bitcoin Market Price. In calculating the value of the Bitcoin held by the Trust on any business day, the Trust will</p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">use the market price as of 4:00 p.m. New York time. The Trust will also calculate the NAV per Unit of the Trust daily, which equals the NAV of the Trust divided by the number of outstanding Units (the “NAV per Unit”). The Trust considers 4:00 p.m. New York time as a cut off for the end of day reporting.</p> <p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><span style="text-decoration:underline">Basis of Presentation</span></p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">The financial statements are expressed in US dollars and have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”). The Trust qualifies as an investment company for accounting purposes pursuant to the accounting and reporting guidance under Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 946, Financial Services – Investment Companies. The Trust is not registered with U.S. Securities and Exchange Commission (“SEC”) under the Investment Company Act of 1940. The results for the three months ended March 31, 2023 and 2022 are not necessarily indicative of the results for the entire year or any subsequent interim period. These financial statements should be read in conjunction with the audited financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022.</span></p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><span style="text-decoration:underline">Reclassifications</span></p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Certain prior period amounts have been reclassified in order to confirm with the current period presentation. These reclassifications have no impact on the Trust’s previously reported net investment loss.</p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><span style="text-decoration:underline">Use of Estimates</span></p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">GAAP requires management to make estimates and assumptions that affect the reported amounts in the financial statements and accompanying notes. The most significant estimate in the financial statements is the fair value of investments in Bitcoin. Actual results could differ from those estimates and these differences could be material.</p> <p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"><span style="text-decoration:underline">Cash</span></p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"> </p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Cash is received by the Trust from investors and converted into Bitcoin for investment. At times, bank deposits may be in excess of federally insured limits. In accordance with ASC 230 “Statement of Cash Flows”, the Trust qualifies for an exemption from the requirement to provide a statement of cash flows and has elected not to provide a statement of cash flows.</p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"> </p> <p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"><span style="text-decoration:underline">Subscriptions and Redemptions of Units</span></p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"> </p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Proceeds received by the Trust from the issuance and sale of Units consist of Bitcoin deposits and forked or airdropped cryptocurrency coins from the Bitcoin Network, or their respective U.S. dollar cash equivalents. Such Bitcoins (or cash equivalent) will only be (1) owned by the Trust and held by the Custodian (or, if cash, used by the Sponsor to purchase Bitcoins to be held by the Custodian), (2) disbursed (or converted to U.S. dollars, if necessary) to pay the Trust’s expenses, (3) distributed to Accredited Investors (subject to obtaining regulatory approval from the SEC described below) in connection with the redemption of Units, (4) distributed (or converted to U.S. dollars, prior to distribution) to Unitholders as dividends, and (5) liquidated in the event that the Trust terminates or as otherwise required by law or regulation.</p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"> </p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The Trust conducts its transactions in Bitcoin, including receiving Bitcoin for the creation of Units and delivering Bitcoin for the redemption of Units (if a redemption program were to be established) and for the payment of the Management Fee.</p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">During June 2020, the Trust began a continuous offering of up to $5,000,000 of Units with no par value, each Unit representing a fractional undivided beneficial interest in the Trust. 154,183 Units were sold to both accredited and non-accredited investors in an offering of up to $5,000,000 of Units, dated June 1, 2020, registered in Connecticut and qualified in New York, pursuant to Rule 504 of Regulation D under the Securities Act of 1933, as amended (the “Securities Act”) (“Rule 504 Offering”). The Rule 504 Offering closed on August 12, 2020.</p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 23.3pt 0 0; text-align: justify"> </p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">On November 12, 2020, the Trust began an offering of an unlimited number of Units pursuant to Rule 506(c) under the Securities Act (“November 2020 Offering”). 4,206,224 Units were sold in the November 2020 Offering.</p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 23.3pt 0 0; text-align: justify"> </p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">On January 14, 2021, the Financial Industry Regulatory Authority (“FINRA”) determined that the Trust’s Units met the criteria for trading on the over-the-counter market (“OTC Market”). On February 16, 2021, the Trust’s Units began trading in the OTC Market, operated by OTC Markets Group, Inc., under the ticker symbol “OBTC”. On March 3, 2021, the Trust’s Units began trading in the OTCQX tier of the OTC Market, under the ticker symbol “OBTC.”</p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Effective November 1, 2021, the Trust suspended the November 2020 Offering under Rule 506(c) under the Securities Act.</p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">As of March 31, 2023, there were 8,340,536 Units issued and outstanding. 159,387 of the Units are restricted securities that may not be resold absent registration or an exemption from registration under the Securities Act, and 8,181,149 of the Units are unrestricted securities.</p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"> </p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">The Trust is currently unable to redeem Units. On January 13, 2023, the Sponsor communicated to the Trust’s Unitholders that it is considering a redemption program for investors in the Trust and that such redemption program would likely involve limited periodic redemptions of Units, although the Trust had not ruled out the possibility of an open-ended redemption program.</span></p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"> </p> 154183 5000000 4206224 8340536 8340536 159387 8181149 <p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><span style="text-decoration:underline">Investment Transactions and Revenue Recognition</span></p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"> </p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The Trust identifies Bitcoin as an “other investment” in accordance with ASC 946. The Trust records its investment transactions on a trade date basis and changes in fair value are reflected as the net change in unrealized appreciation or depreciation on investments. Realized gains and losses are calculated using a first in first out method. Realized gains and losses are recognized in connection with transactions including settling obligations for the Management Fee and other expenses in Bitcoin.</p> <p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><span style="text-decoration:underline">Management Fee</span></p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"> </p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The Trust is expected to pay the remuneration due to the Sponsor (the “Management Fee” or “Sponsor Fee”). The Management Fee is charged by the Sponsor to the Trust at an annual rate of 0.49% of the daily Net Asset Value of the Trust and accrues daily in Bitcoin. The Management Fee is payable at the Sponsor’s sole discretion, in Bitcoin or in U.S. Dollars for the Bitcoin Market Price (as defined herein) in effect for such Bitcoin at the time of payment.</p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p> 0.0049 <p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><span style="text-decoration:underline">Trust Expenses</span></p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 19.85pt 0 0; text-align: justify"> </p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">In accordance with the Trust Agreement, the Sponsor bears the routine operational, administrative and other ordinary administrative operating expenses of the Trust (the “Assumed Expenses”) other than audit fees, index license fees, aggregate legal fees in excess of $50,000 per annum and the fees of the Custodian ( “Excluded Expenses”) and certain extraordinary expenses of the Trust, including but not limited to taxes and governmental charges, expenses and costs, expenses and indemnities related to any extraordinary services performed by the Sponsor (or any other service provider, including the Trustee) on behalf of the Trust to protect the Trust or the interest of Unitholders, indemnification expenses, fees and expenses related to public trading on OTCQX (“Extraordinary Expenses”).</p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 19.85pt 0 0; text-align: justify"> </p> <p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><span style="text-decoration:underline">Fair Value Measurements</span></p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"> </p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The Trust’s investment in Bitcoin is stated at fair value in accordance with ASC 820-10 “Fair Value Measurements”, which outlines the application of fair value accounting. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., the “exit price”) in an orderly transaction between market participants at the measurement date. ASC 820-10 requires the Trust to assume that Bitcoin is sold in its principal market to market participants or, in the absence of a principal market, the most advantageous market. Principal market is the market with the greatest volume and level of activity for Bitcoin, and the most advantageous market is defined 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. The principal market is generally selected based on the most liquid and reliable exchange (including consideration of the ability for the Trust to access the specific market, either directly or through an intermediary, at the end of each period). The Sponsor has identified Coinbase Pro as the principal market for Bitcoin.</p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">GAAP utilizes a fair value hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are those that market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Trust. Unobservable inputs reflect the Trust’s assumptions about the inputs market participants would use in pricing the asset or liability developed based on the best information available in the circumstances.</p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The fair value hierarchy is categorized into three levels based on the inputs as follows:</p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Level 1 – Valuations based on unadjusted quoted prices in active markets for identical assets or liabilities that the Trust has the ability to access. Since valuations are based on quoted prices that are readily and regularly available in an active market, these valuations do not entail a significant degree of judgment.</p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Level 2 – Valuations based on quoted prices in markets that are not active or for which significant inputs are observable, either directly or indirectly.</p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Level 3 – Valuations based on inputs that are unobservable and significant to the overall fair value measurement.</p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The availability of valuation techniques and observable inputs can vary by investment. To the extent that valuations are based on sources that are less observable or unobservable in the market, the determination of fair value requires more judgment. Fair value estimates do not necessarily represent the amounts that may be ultimately realized by the Trust.</p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><span style="text-decoration:underline">Definition of Net Asset Value </span></p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The net asset value (“NAV”) of the Trust is used by the Trust in its day-to-day operations to measure the net value of the Trust’s assets. The NAV is calculated on each business day and is equal to the aggregate value of the Trust’s assets less its liabilities (which include accrued but unpaid fees and expenses, both estimated and finally determined), based on the Bitcoin Market Price. In calculating the value of the Bitcoin held by the Trust on any business day, the Trust will</p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">use the market price as of 4:00 p.m. New York time. The Trust will also calculate the NAV per Unit of the Trust daily, which equals the NAV of the Trust divided by the number of outstanding Units (the “NAV per Unit”). The Trust considers 4:00 p.m. New York time as a cut off for the end of day reporting.</p> <p style="font: bold 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-indent: 0pt">3. <span style="font-size: 10pt">Fair Value of<span style="letter-spacing: -0.05pt"> </span>Bitcoin</span></p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"><b> </b></p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The investment measured at fair value on a recurring basis and categorized using the three levels of fair value hierarchy consisted of the following as of March 31, 2023 and December 31, 2022:</p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0 18pt; text-align: justify"> </p><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Arial, Helvetica, Sans-Serif"> <tr style="vertical-align: bottom; font: 10pt Arial, Helvetica, Sans-Serif"> <td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left; padding-left: 3pt"> </td><td style="font: bold 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 1pt"> </td> <td colspan="3" style="font: bold 10pt Arial, Helvetica, Sans-Serif; text-align: center; padding-bottom: 1pt">Number</td><td style="font: bold 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 1pt"> </td> <td colspan="3" style="font: bold 10pt Arial, Helvetica, Sans-Serif; text-align: center; padding-bottom: 1pt">Per Bitcoin</td><td style="font: bold 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 1pt"> </td> <td colspan="3" style="font: bold 10pt Arial, Helvetica, Sans-Serif; text-align: center; padding-bottom: 1pt">Amount at</td><td style="font: bold 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 1pt"> </td> <td colspan="11" style="font: bold 10pt Arial, Helvetica, Sans-Serif; text-align: center; border-bottom: black 1px solid">Fair Value Measurement Category</td></tr> <tr style="vertical-align: bottom; font: 10pt Arial, Helvetica, Sans-Serif"> <td style="font: bold 10pt Arial, Helvetica, Sans-Serif; border-bottom: black 1px solid; text-align: left; padding-left: 3pt">March 31, 2023</td><td style="font: bold 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 1pt"> </td> <td colspan="3" style="font: bold 10pt Arial, Helvetica, Sans-Serif; text-align: center; border-bottom: black 1px solid">of Bitcoin</td><td style="font: bold 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 1pt"> </td> <td colspan="3" style="font: bold 10pt Arial, Helvetica, Sans-Serif; text-align: center; border-bottom: black 1px solid">Fair Value</td><td style="font: bold 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 1pt"> </td> <td colspan="3" style="font: bold 10pt Arial, Helvetica, Sans-Serif; text-align: center; border-bottom: black 1px solid">Fair Value</td><td style="font: bold 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 1pt"> </td> <td colspan="3" style="font: bold 10pt Arial, Helvetica, Sans-Serif; text-align: center; border-bottom: black 1px solid">Level 1</td><td style="font: bold 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 1pt"> </td> <td colspan="3" style="font: bold 10pt Arial, Helvetica, Sans-Serif; text-align: center; border-bottom: black 1px solid">Level 2</td><td style="font: bold 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 1pt"> </td> <td colspan="3" style="font: bold 10pt Arial, Helvetica, Sans-Serif; text-align: center; border-bottom: black 1px solid">Level 3</td></tr> <tr style="vertical-align: bottom; font: 10pt Arial, Helvetica, Sans-Serif"> <td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left; padding-left: 3pt"> </td><td style="font: 10pt Arial, Helvetica, Sans-Serif"> </td> <td colspan="3" style="font: 10pt Arial, Helvetica, Sans-Serif"> </td><td style="font: 10pt Arial, Helvetica, Sans-Serif"> </td> <td colspan="3" style="font: 10pt Arial, Helvetica, Sans-Serif"> </td><td style="font: 10pt Arial, Helvetica, Sans-Serif"> </td> <td colspan="3" style="font: 10pt Arial, Helvetica, Sans-Serif"> </td><td style="font: 10pt Arial, Helvetica, Sans-Serif"> </td> <td colspan="3" style="font: 10pt Arial, Helvetica, Sans-Serif"> </td><td style="font: 10pt Arial, Helvetica, Sans-Serif"> </td> <td colspan="3" style="font: 10pt Arial, Helvetica, Sans-Serif"> </td><td style="font: 10pt Arial, Helvetica, Sans-Serif"> </td> <td colspan="3" style="font: 10pt Arial, Helvetica, Sans-Serif"> </td></tr> <tr style="vertical-align: bottom; font: 10pt Arial, Helvetica, Sans-Serif"> <td style="width: 28%; font: bold 10pt Arial, Helvetica, Sans-Serif; text-align: left; padding-bottom: 3px; padding-left: 3pt">Investment in Bitcoin</td><td style="width: 2%; font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 3px"> </td> <td style="width: 1%; border-bottom: Black 3px double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"> </td><td style="width: 8%; border-bottom: Black 3px double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right">2,786.69</td><td style="width: 1%; border-bottom: Black 3px double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"> </td><td style="width: 2%; font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 3px"> </td> <td style="width: 1%; border-bottom: Black 3px double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"> $ </td><td style="width: 8%; border-bottom: Black 3px double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right">28,467.79</td><td style="width: 1%; border-bottom: Black 3px double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"> </td><td style="width: 2%; font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 3px"> </td> <td style="width: 1%; border-bottom: Black 3px double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"> $ </td><td style="width: 8%; border-bottom: Black 3px double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right">79,331,020</td><td style="width: 1%; border-bottom: Black 3px double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"> </td><td style="width: 2%; font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 3px"> </td> <td style="width: 1%; border-bottom: Black 3px double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"> $</td><td style="width: 8%; border-bottom: Black 3px double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><div style="-sec-ix-hidden: hidden-fact-1">-</div></td><td style="width: 1%; border-bottom: Black 3px double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"> </td><td style="width: 2%; font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 3px"> </td> <td style="width: 1%; border-bottom: Black 3px double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"> $ </td><td style="width: 8%; border-bottom: Black 3px double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right">79,331,020</td><td style="width: 1%; border-bottom: Black 3px double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"> </td><td style="width: 2%; font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 3px"> </td> <td style="width: 1%; border-bottom: Black 3px double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right">$</td><td style="width: 8%; border-bottom: Black 3px double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><div style="-sec-ix-hidden: hidden-fact-2">-</div></td><td style="width: 1%; border-bottom: Black 3px double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"> </td></tr> <tr style="vertical-align: bottom; font: 10pt Arial, Helvetica, Sans-Serif"> <td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left; padding-left: 3pt"> </td><td style="font: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="text-align: left; font: 10pt Arial, Helvetica, Sans-Serif"> </td><td style="text-align: right; font: 10pt Arial, Helvetica, Sans-Serif"> </td><td style="text-align: left; font: 10pt Arial, Helvetica, Sans-Serif"> </td><td style="font: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="text-align: left; font: 10pt Arial, Helvetica, Sans-Serif"> </td><td style="text-align: right; font: 10pt Arial, Helvetica, Sans-Serif"> </td><td style="text-align: left; font: 10pt Arial, Helvetica, Sans-Serif"> </td><td style="font: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="text-align: left; font: 10pt Arial, Helvetica, Sans-Serif"> </td><td style="text-align: right; font: 10pt Arial, Helvetica, Sans-Serif"> </td><td style="text-align: left; font: 10pt Arial, Helvetica, Sans-Serif"> </td><td style="font: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="text-align: right; font: 10pt Arial, Helvetica, Sans-Serif"> </td><td style="text-align: right; font: 10pt Arial, Helvetica, Sans-Serif"> </td><td style="text-align: left; font: 10pt Arial, Helvetica, Sans-Serif"> </td><td style="font: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="text-align: left; font: 10pt Arial, Helvetica, Sans-Serif"> </td><td style="text-align: right; font: 10pt Arial, Helvetica, Sans-Serif"> </td><td style="text-align: left; font: 10pt Arial, Helvetica, Sans-Serif"> </td><td style="font: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="text-align: right; font: 10pt Arial, Helvetica, Sans-Serif"> </td><td style="text-align: right; font: 10pt Arial, Helvetica, Sans-Serif"> </td><td style="text-align: left; font: 10pt Arial, Helvetica, Sans-Serif"> </td></tr> <tr style="vertical-align: bottom; font: 10pt Arial, Helvetica, Sans-Serif"> <td style="padding-bottom: 1pt; text-align: left; font: 10pt Arial, Helvetica, Sans-Serif; padding-left: 3pt"> </td><td style="font: bold 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 1pt; text-align: center"> </td> <td colspan="3" style="padding-bottom: 1pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: center"><b>Number</b></td><td style="font: bold 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 1pt; text-align: center"> </td> <td colspan="3" style="padding-bottom: 1pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: center"><b>Per Bitcoin</b></td><td style="font: bold 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 1pt; text-align: center"> </td> <td colspan="3" style="padding-bottom: 1pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: center"><b>Amount at</b></td><td style="font: bold 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 1pt; text-align: center"> </td> <td colspan="11" style="border-bottom: black 1px solid; font: 10pt Arial, Helvetica, Sans-Serif; text-align: center"><b>Fair Value Measurement Category</b></td></tr> <tr style="vertical-align: bottom; font: 10pt Arial, Helvetica, Sans-Serif"> <td style="font: bold 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 1pt; text-align: left; border-bottom: Black 1px solid; padding-left: 3pt">December 31, 2022</td><td style="font: bold 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 1pt; text-align: center"> </td> <td colspan="3" style="border-bottom: black 1px solid; font: 10pt Arial, Helvetica, Sans-Serif; text-align: center"><b>of Bitcoin</b></td><td style="font: bold 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 1pt; text-align: center"> </td> <td colspan="3" style="border-bottom: black 1px solid; font: 10pt Arial, Helvetica, Sans-Serif; text-align: center"><b>Fair Value</b></td><td style="font: bold 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 1pt; text-align: center"> </td> <td colspan="3" style="border-bottom: black 1px solid; font: 10pt Arial, Helvetica, Sans-Serif; text-align: center"><b>Fair Value</b></td><td style="font: bold 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 1pt; text-align: center"> </td> <td colspan="3" style="border-bottom: black 1px solid; font: 10pt Arial, Helvetica, Sans-Serif; text-align: center"><b>Level 1</b></td><td style="font: bold 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 1pt; text-align: center"> </td> <td colspan="3" style="border-bottom: black 1px solid; font: 10pt Arial, Helvetica, Sans-Serif; text-align: center"><b>Level 2</b></td><td style="font: bold 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 1pt; text-align: center"> </td> <td colspan="3" style="border-bottom: black 1px solid; font: 10pt Arial, Helvetica, Sans-Serif; text-align: center"><b>Level 3</b></td></tr> <tr style="vertical-align: bottom; font: 10pt Arial, Helvetica, Sans-Serif"> <td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left; padding-left: 3pt"> </td><td style="font: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="text-align: left; font: 10pt Arial, Helvetica, Sans-Serif"> </td><td style="text-align: right; font: 10pt Arial, Helvetica, Sans-Serif"> </td><td style="text-align: left; font: 10pt Arial, Helvetica, Sans-Serif"> </td><td style="font: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="text-align: left; font: 10pt Arial, Helvetica, Sans-Serif"> </td><td style="text-align: right; font: 10pt Arial, Helvetica, Sans-Serif"> </td><td style="text-align: left; font: 10pt Arial, Helvetica, Sans-Serif"> </td><td style="font: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="text-align: left; font: 10pt Arial, Helvetica, Sans-Serif"> </td><td style="text-align: right; font: 10pt Arial, Helvetica, Sans-Serif"> </td><td style="text-align: left; font: 10pt Arial, Helvetica, Sans-Serif"> </td><td style="font: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="text-align: right; font: 10pt Arial, Helvetica, Sans-Serif"> </td><td style="text-align: right; font: 10pt Arial, Helvetica, Sans-Serif"> </td><td style="text-align: left; font: 10pt Arial, Helvetica, Sans-Serif"> </td><td style="font: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="text-align: left; font: 10pt Arial, Helvetica, Sans-Serif"> </td><td style="text-align: right; font: 10pt Arial, Helvetica, Sans-Serif"> </td><td style="text-align: left; font: 10pt Arial, Helvetica, Sans-Serif"> </td><td style="font: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="text-align: right; font: 10pt Arial, Helvetica, Sans-Serif"> </td><td style="text-align: right; font: 10pt Arial, Helvetica, Sans-Serif"> </td><td style="text-align: left; font: 10pt Arial, Helvetica, Sans-Serif"> </td></tr> <tr style="vertical-align: bottom; font: 10pt Arial, Helvetica, Sans-Serif"> <td style="font: bold 10pt Arial, Helvetica, Sans-Serif; text-align: left; padding-bottom: 3px; padding-left: 3pt">Investment in Bitcoin</td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 3px"> </td> <td style="border-bottom: Black 3px double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"> </td><td style="border-bottom: Black 3px double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right">2,792.88</td><td style="border-bottom: Black 3px double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"> </td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 3px"> </td> <td style="border-bottom: Black 3px double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"> $</td><td style="border-bottom: Black 3px double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right">16,561.21</td><td style="border-bottom: Black 3px double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"> </td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 3px"> </td> <td style="border-bottom: Black 3px double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"> $</td><td style="border-bottom: Black 3px double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right">46,253,445</td><td style="border-bottom: Black 3px double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"> </td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 3px"> </td> <td style="border-bottom: Black 3px double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right">$</td><td style="border-bottom: Black 3px double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><div style="-sec-ix-hidden: hidden-fact-3">-</div></td><td style="border-bottom: Black 3px double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"> </td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 3px"> </td> <td style="border-bottom: Black 3px double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"> $</td><td style="border-bottom: Black 3px double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right">46,253,445</td><td style="border-bottom: Black 3px double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"> </td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 3px"> </td> <td style="border-bottom: Black 3px double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right">$</td><td style="border-bottom: Black 3px double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><div style="-sec-ix-hidden: hidden-fact-4">-</div></td><td style="border-bottom: Black 3px double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"> </td></tr> </table><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The Trust determined the fair value per Bitcoin using the price provided at 4:00 p.m., New York time, by Coinbase Pro, the Trust’s principal market.</p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The Management Fee payable accrued in Bitcoin is converted into United States dollar amount at the period-end Bitcoin Market Price. The fluctuations arising from the effect of changes in liability denominated in Bitcoin are included with the net realized or unrealized appreciation or depreciation on investment in Bitcoin in the statements of operations.</p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The following represents the changes in quantity and the respective fair value of Bitcoin for the three months ended March 31, 2023:</p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 90%; font: 10pt Arial, Helvetica, Sans-Serif; margin-left: auto; margin-right: auto;"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1px"> </td> <td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1px solid">Bitcoin</td><td style="font-weight: bold; padding-bottom: 1px"> </td> <td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1px solid">Fair Value</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="width: 70%; font-weight: bold; text-indent: -10pt; padding-left: 10pt">Balance at January 1, 2023</td><td style="width: 3%"> </td> <td style="width: 2%; text-align: left"> </td><td style="width: 8%; text-align: right">2,792.88</td><td style="width: 1%; text-align: left"> </td><td style="width: 5%"> </td> <td style="width: 2%; text-align: left"> $ </td><td style="width: 8%; text-align: right">46,253,445</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -10pt; padding-left: 10pt">Bitcoin distributed for Management Fee, related party</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(3.36</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(71,320</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: left; text-indent: -10pt; padding-left: 10pt">Bitcoin distributed for other fees</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(2.83</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(63,322</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -10pt; padding-left: 10pt">Net realized gain on investment in Bitcoin</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">112,474</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: left; padding-bottom: 1px; text-indent: -10pt; padding-left: 10pt">Net change in unrealized appreciation on investment in Bitcoin</td><td style="padding-bottom: 1px"> </td> <td style="border-bottom: Black 1px solid; text-align: left"> </td><td style="border-bottom: Black 1px solid; text-align: right">-</td><td style="border-bottom: Black 1px solid; text-align: left"> </td><td style="padding-bottom: 1px"> </td> <td style="border-bottom: Black 1px solid; text-align: left"> </td><td style="border-bottom: Black 1px solid; text-align: right">33,099,743</td><td style="border-bottom: Black 1px solid; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; padding-bottom: 3px; text-indent: -10pt; padding-left: 10pt">Balance at March 31, 2023</td><td style="padding-bottom: 3px"> </td> <td style="border-bottom: Black 3px solid; text-align: left"> </td><td style="border-bottom: Black 3px solid; text-align: right">2,786.69</td><td style="border-bottom: Black 3px solid; text-align: left"> </td><td style="padding-bottom: 3px"> </td> <td style="border-bottom: Black 3px solid; text-align: left"> $</td><td style="border-bottom: Black 3px solid; text-align: right">79,331,020</td><td style="border-bottom: Black 3px solid; text-align: left"> </td></tr> </table><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Net realized gain on the transfer of Bitcoins to pay the Management Fee and other expenses for the three months ended March 31, 2023, was $108,356, which includes $112,474 net realized gain on investment in Bitcoin, and $4,118 net realized loss resulted from the changes in liabilities denominated in Bitcoin. Net change in unrealized appreciation on investment in Bitcoin for the three months ended March 31, 2023, was $33,095,266, which includes net change in unrealized appreciation on investment in Bitcoin of $33,099,743, and $4,477 net unrealized depreciation due to changes in value of liabilities denominated in Bitcoin.</p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The following represents the changes in quantity and the respective fair value of Bitcoin for the year ended December 31, 2022:</p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"> </p><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 90%; font: 10pt Arial, Helvetica, Sans-Serif; margin-left: auto; margin-right: auto;"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1px"> </td> <td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1px solid">Bitcoin</td><td style="font-weight: bold; padding-bottom: 1px"> </td> <td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1px solid">Fair Value</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="width: 70%; font-weight: bold; text-indent: -10pt; padding-left: 10pt">Balance at January 1, 2022</td><td style="width: 3%"> </td> <td style="width: 2%; text-align: left"> </td><td style="width: 8%; text-align: right">2,828.93</td><td style="width: 1%; text-align: left"> </td><td style="width: 5%"> </td> <td style="width: 2%; text-align: right"> $ </td><td style="width: 8%; text-align: right">129,756,984</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -10pt; padding-left: 10pt">Bitcoin distributed for Management Fee, related party</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(13.78</td><td style="text-align: left">)</td><td> </td> <td style="text-align: right"> </td><td style="text-align: right">(407,612</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: left; text-indent: -10pt; padding-left: 10pt">Bitcoin distributed for other fees</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(22.27</td><td style="text-align: left">)</td><td> </td> <td style="text-align: right"> </td><td style="text-align: right">(531,601</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -10pt; padding-left: 10pt">Net realized gain on investment in Bitcoin</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: right"> </td><td style="text-align: right">809,988</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: left; padding-bottom: 1px; text-indent: -10pt; padding-left: 10pt">Net change in unrealized depreciation on investment in Bitcoin</td><td style="padding-bottom: 1px"> </td> <td style="border-bottom: Black 1px solid; text-align: left"> </td><td style="border-bottom: Black 1px solid; text-align: right">-</td><td style="border-bottom: Black 1px solid; text-align: left"> </td><td style="padding-bottom: 1px"> </td> <td style="border-bottom: Black 1px solid; text-align: right"> </td><td style="border-bottom: Black 1px solid; text-align: right">(83,374,314</td><td style="border-bottom: Black 1px solid; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; padding-bottom: 3px; text-indent: -10pt; padding-left: 10pt">Balance at December 31, 2022</td><td style="padding-bottom: 3px"> </td> <td style="border-bottom: Black 3px solid; text-align: left"> </td><td style="border-bottom: Black 3px solid; text-align: right">2,792.88</td><td style="border-bottom: Black 3px solid; text-align: left"> </td><td style="padding-bottom: 3px"> </td> <td style="border-bottom: Black 3px solid; text-align: right"> $ </td><td style="border-bottom: Black 3px solid; text-align: right">46,253,445</td><td style="border-bottom: Black 3px solid; text-align: left"> </td></tr> </table><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Net realized gain on the transfer of Bitcoins to pay the Management Fee and other expenses for the year ended December 31, 2022, was $834,003, which includes $809,988 net realized gain on investment in Bitcoin, and $24,015 net realized gain resulted from the changes in liabilities denominated in Bitcoin. Net change in unrealized depreciation on investment in Bitcoin for the year ended December 31, 2022, was $83,373,064, which includes net change in unrealized depreciation on investment in Bitcoin of $83,374,314, and $1,250 net unrealized appreciation due to changes in value of liabilities denominated in Bitcoin.</p> <p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The investment measured at fair value on a recurring basis and categorized using the three levels of fair value hierarchy consisted of the following as of March 31, 2023 and December 31, 2022:</p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0 18pt; text-align: justify"> </p><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Arial, Helvetica, Sans-Serif"> <tr style="vertical-align: bottom; font: 10pt Arial, Helvetica, Sans-Serif"> <td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left; padding-left: 3pt"> </td><td style="font: bold 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 1pt"> </td> <td colspan="3" style="font: bold 10pt Arial, Helvetica, Sans-Serif; text-align: center; padding-bottom: 1pt">Number</td><td style="font: bold 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 1pt"> </td> <td colspan="3" style="font: bold 10pt Arial, Helvetica, Sans-Serif; text-align: center; padding-bottom: 1pt">Per Bitcoin</td><td style="font: bold 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 1pt"> </td> <td colspan="3" style="font: bold 10pt Arial, Helvetica, Sans-Serif; text-align: center; padding-bottom: 1pt">Amount at</td><td style="font: bold 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 1pt"> </td> <td colspan="11" style="font: bold 10pt Arial, Helvetica, Sans-Serif; text-align: center; border-bottom: black 1px solid">Fair Value Measurement Category</td></tr> <tr style="vertical-align: bottom; font: 10pt Arial, Helvetica, Sans-Serif"> <td style="font: bold 10pt Arial, Helvetica, Sans-Serif; border-bottom: black 1px solid; text-align: left; padding-left: 3pt">March 31, 2023</td><td style="font: bold 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 1pt"> </td> <td colspan="3" style="font: bold 10pt Arial, Helvetica, Sans-Serif; text-align: center; border-bottom: black 1px solid">of Bitcoin</td><td style="font: bold 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 1pt"> </td> <td colspan="3" style="font: bold 10pt Arial, Helvetica, Sans-Serif; text-align: center; border-bottom: black 1px solid">Fair Value</td><td style="font: bold 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 1pt"> </td> <td colspan="3" style="font: bold 10pt Arial, Helvetica, Sans-Serif; text-align: center; border-bottom: black 1px solid">Fair Value</td><td style="font: bold 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 1pt"> </td> <td colspan="3" style="font: bold 10pt Arial, Helvetica, Sans-Serif; text-align: center; border-bottom: black 1px solid">Level 1</td><td style="font: bold 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 1pt"> </td> <td colspan="3" style="font: bold 10pt Arial, Helvetica, Sans-Serif; text-align: center; border-bottom: black 1px solid">Level 2</td><td style="font: bold 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 1pt"> </td> <td colspan="3" style="font: bold 10pt Arial, Helvetica, Sans-Serif; text-align: center; border-bottom: black 1px solid">Level 3</td></tr> <tr style="vertical-align: bottom; font: 10pt Arial, Helvetica, Sans-Serif"> <td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left; padding-left: 3pt"> </td><td style="font: 10pt Arial, Helvetica, Sans-Serif"> </td> <td colspan="3" style="font: 10pt Arial, Helvetica, Sans-Serif"> </td><td style="font: 10pt Arial, Helvetica, Sans-Serif"> </td> <td colspan="3" style="font: 10pt Arial, Helvetica, Sans-Serif"> </td><td style="font: 10pt Arial, Helvetica, Sans-Serif"> </td> <td colspan="3" style="font: 10pt Arial, Helvetica, Sans-Serif"> </td><td style="font: 10pt Arial, Helvetica, Sans-Serif"> </td> <td colspan="3" style="font: 10pt Arial, Helvetica, Sans-Serif"> </td><td style="font: 10pt Arial, Helvetica, Sans-Serif"> </td> <td colspan="3" style="font: 10pt Arial, Helvetica, Sans-Serif"> </td><td style="font: 10pt Arial, Helvetica, Sans-Serif"> </td> <td colspan="3" style="font: 10pt Arial, Helvetica, Sans-Serif"> </td></tr> <tr style="vertical-align: bottom; font: 10pt Arial, Helvetica, Sans-Serif"> <td style="width: 28%; font: bold 10pt Arial, Helvetica, Sans-Serif; text-align: left; padding-bottom: 3px; padding-left: 3pt">Investment in Bitcoin</td><td style="width: 2%; font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 3px"> </td> <td style="width: 1%; border-bottom: Black 3px double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"> </td><td style="width: 8%; border-bottom: Black 3px double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right">2,786.69</td><td style="width: 1%; border-bottom: Black 3px double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"> </td><td style="width: 2%; font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 3px"> </td> <td style="width: 1%; border-bottom: Black 3px double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"> $ </td><td style="width: 8%; border-bottom: Black 3px double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right">28,467.79</td><td style="width: 1%; border-bottom: Black 3px double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"> </td><td style="width: 2%; font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 3px"> </td> <td style="width: 1%; border-bottom: Black 3px double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"> $ </td><td style="width: 8%; border-bottom: Black 3px double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right">79,331,020</td><td style="width: 1%; border-bottom: Black 3px double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"> </td><td style="width: 2%; font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 3px"> </td> <td style="width: 1%; border-bottom: Black 3px double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"> $</td><td style="width: 8%; border-bottom: Black 3px double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><div style="-sec-ix-hidden: hidden-fact-1">-</div></td><td style="width: 1%; border-bottom: Black 3px double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"> </td><td style="width: 2%; font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 3px"> </td> <td style="width: 1%; border-bottom: Black 3px double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"> $ </td><td style="width: 8%; border-bottom: Black 3px double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right">79,331,020</td><td style="width: 1%; border-bottom: Black 3px double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"> </td><td style="width: 2%; font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 3px"> </td> <td style="width: 1%; border-bottom: Black 3px double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right">$</td><td style="width: 8%; border-bottom: Black 3px double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><div style="-sec-ix-hidden: hidden-fact-2">-</div></td><td style="width: 1%; border-bottom: Black 3px double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"> </td></tr> <tr style="vertical-align: bottom; font: 10pt Arial, Helvetica, Sans-Serif"> <td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left; padding-left: 3pt"> </td><td style="font: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="text-align: left; font: 10pt Arial, Helvetica, Sans-Serif"> </td><td style="text-align: right; font: 10pt Arial, Helvetica, Sans-Serif"> </td><td style="text-align: left; font: 10pt Arial, Helvetica, Sans-Serif"> </td><td style="font: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="text-align: left; font: 10pt Arial, Helvetica, Sans-Serif"> </td><td style="text-align: right; font: 10pt Arial, Helvetica, Sans-Serif"> </td><td style="text-align: left; font: 10pt Arial, Helvetica, Sans-Serif"> </td><td style="font: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="text-align: left; font: 10pt Arial, Helvetica, Sans-Serif"> </td><td style="text-align: right; font: 10pt Arial, Helvetica, Sans-Serif"> </td><td style="text-align: left; font: 10pt Arial, Helvetica, Sans-Serif"> </td><td style="font: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="text-align: right; font: 10pt Arial, Helvetica, Sans-Serif"> </td><td style="text-align: right; font: 10pt Arial, Helvetica, Sans-Serif"> </td><td style="text-align: left; font: 10pt Arial, Helvetica, Sans-Serif"> </td><td style="font: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="text-align: left; font: 10pt Arial, Helvetica, Sans-Serif"> </td><td style="text-align: right; font: 10pt Arial, Helvetica, Sans-Serif"> </td><td style="text-align: left; font: 10pt Arial, Helvetica, Sans-Serif"> </td><td style="font: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="text-align: right; font: 10pt Arial, Helvetica, Sans-Serif"> </td><td style="text-align: right; font: 10pt Arial, Helvetica, Sans-Serif"> </td><td style="text-align: left; font: 10pt Arial, Helvetica, Sans-Serif"> </td></tr> <tr style="vertical-align: bottom; font: 10pt Arial, Helvetica, Sans-Serif"> <td style="padding-bottom: 1pt; text-align: left; font: 10pt Arial, Helvetica, Sans-Serif; padding-left: 3pt"> </td><td style="font: bold 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 1pt; text-align: center"> </td> <td colspan="3" style="padding-bottom: 1pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: center"><b>Number</b></td><td style="font: bold 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 1pt; text-align: center"> </td> <td colspan="3" style="padding-bottom: 1pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: center"><b>Per Bitcoin</b></td><td style="font: bold 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 1pt; text-align: center"> </td> <td colspan="3" style="padding-bottom: 1pt; font: 10pt Arial, Helvetica, Sans-Serif; text-align: center"><b>Amount at</b></td><td style="font: bold 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 1pt; text-align: center"> </td> <td colspan="11" style="border-bottom: black 1px solid; font: 10pt Arial, Helvetica, Sans-Serif; text-align: center"><b>Fair Value Measurement Category</b></td></tr> <tr style="vertical-align: bottom; font: 10pt Arial, Helvetica, Sans-Serif"> <td style="font: bold 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 1pt; text-align: left; border-bottom: Black 1px solid; padding-left: 3pt">December 31, 2022</td><td style="font: bold 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 1pt; text-align: center"> </td> <td colspan="3" style="border-bottom: black 1px solid; font: 10pt Arial, Helvetica, Sans-Serif; text-align: center"><b>of Bitcoin</b></td><td style="font: bold 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 1pt; text-align: center"> </td> <td colspan="3" style="border-bottom: black 1px solid; font: 10pt Arial, Helvetica, Sans-Serif; text-align: center"><b>Fair Value</b></td><td style="font: bold 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 1pt; text-align: center"> </td> <td colspan="3" style="border-bottom: black 1px solid; font: 10pt Arial, Helvetica, Sans-Serif; text-align: center"><b>Fair Value</b></td><td style="font: bold 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 1pt; text-align: center"> </td> <td colspan="3" style="border-bottom: black 1px solid; font: 10pt Arial, Helvetica, Sans-Serif; text-align: center"><b>Level 1</b></td><td style="font: bold 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 1pt; text-align: center"> </td> <td colspan="3" style="border-bottom: black 1px solid; font: 10pt Arial, Helvetica, Sans-Serif; text-align: center"><b>Level 2</b></td><td style="font: bold 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 1pt; text-align: center"> </td> <td colspan="3" style="border-bottom: black 1px solid; font: 10pt Arial, Helvetica, Sans-Serif; text-align: center"><b>Level 3</b></td></tr> <tr style="vertical-align: bottom; font: 10pt Arial, Helvetica, Sans-Serif"> <td style="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left; padding-left: 3pt"> </td><td style="font: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="text-align: left; font: 10pt Arial, Helvetica, Sans-Serif"> </td><td style="text-align: right; font: 10pt Arial, Helvetica, Sans-Serif"> </td><td style="text-align: left; font: 10pt Arial, Helvetica, Sans-Serif"> </td><td style="font: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="text-align: left; font: 10pt Arial, Helvetica, Sans-Serif"> </td><td style="text-align: right; font: 10pt Arial, Helvetica, Sans-Serif"> </td><td style="text-align: left; font: 10pt Arial, Helvetica, Sans-Serif"> </td><td style="font: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="text-align: left; font: 10pt Arial, Helvetica, Sans-Serif"> </td><td style="text-align: right; font: 10pt Arial, Helvetica, Sans-Serif"> </td><td style="text-align: left; font: 10pt Arial, Helvetica, Sans-Serif"> </td><td style="font: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="text-align: right; font: 10pt Arial, Helvetica, Sans-Serif"> </td><td style="text-align: right; font: 10pt Arial, Helvetica, Sans-Serif"> </td><td style="text-align: left; font: 10pt Arial, Helvetica, Sans-Serif"> </td><td style="font: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="text-align: left; font: 10pt Arial, Helvetica, Sans-Serif"> </td><td style="text-align: right; font: 10pt Arial, Helvetica, Sans-Serif"> </td><td style="text-align: left; font: 10pt Arial, Helvetica, Sans-Serif"> </td><td style="font: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="text-align: right; font: 10pt Arial, Helvetica, Sans-Serif"> </td><td style="text-align: right; font: 10pt Arial, Helvetica, Sans-Serif"> </td><td style="text-align: left; font: 10pt Arial, Helvetica, Sans-Serif"> </td></tr> <tr style="vertical-align: bottom; font: 10pt Arial, Helvetica, Sans-Serif"> <td style="font: bold 10pt Arial, Helvetica, Sans-Serif; text-align: left; padding-bottom: 3px; padding-left: 3pt">Investment in Bitcoin</td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 3px"> </td> <td style="border-bottom: Black 3px double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"> </td><td style="border-bottom: Black 3px double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right">2,792.88</td><td style="border-bottom: Black 3px double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"> </td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 3px"> </td> <td style="border-bottom: Black 3px double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"> $</td><td style="border-bottom: Black 3px double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right">16,561.21</td><td style="border-bottom: Black 3px double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"> </td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 3px"> </td> <td style="border-bottom: Black 3px double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"> $</td><td style="border-bottom: Black 3px double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right">46,253,445</td><td style="border-bottom: Black 3px double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"> </td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 3px"> </td> <td style="border-bottom: Black 3px double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right">$</td><td style="border-bottom: Black 3px double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><div style="-sec-ix-hidden: hidden-fact-3">-</div></td><td style="border-bottom: Black 3px double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"> </td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 3px"> </td> <td style="border-bottom: Black 3px double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"> $</td><td style="border-bottom: Black 3px double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right">46,253,445</td><td style="border-bottom: Black 3px double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"> </td><td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 3px"> </td> <td style="border-bottom: Black 3px double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right">$</td><td style="border-bottom: Black 3px double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><div style="-sec-ix-hidden: hidden-fact-4">-</div></td><td style="border-bottom: Black 3px double; font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"> </td></tr> </table><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p> 2786.69 28467.79 79331020 79331020 2792.88 16561.21 46253445 46253445 <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 90%; font: 10pt Arial, Helvetica, Sans-Serif; margin-left: auto; margin-right: auto;"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1px"> </td> <td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1px solid">Bitcoin</td><td style="font-weight: bold; padding-bottom: 1px"> </td> <td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1px solid">Fair Value</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="width: 70%; font-weight: bold; text-indent: -10pt; padding-left: 10pt">Balance at January 1, 2023</td><td style="width: 3%"> </td> <td style="width: 2%; text-align: left"> </td><td style="width: 8%; text-align: right">2,792.88</td><td style="width: 1%; text-align: left"> </td><td style="width: 5%"> </td> <td style="width: 2%; text-align: left"> $ </td><td style="width: 8%; text-align: right">46,253,445</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -10pt; padding-left: 10pt">Bitcoin distributed for Management Fee, related party</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(3.36</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(71,320</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: left; text-indent: -10pt; padding-left: 10pt">Bitcoin distributed for other fees</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(2.83</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(63,322</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -10pt; padding-left: 10pt">Net realized gain on investment in Bitcoin</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">112,474</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: left; padding-bottom: 1px; text-indent: -10pt; padding-left: 10pt">Net change in unrealized appreciation on investment in Bitcoin</td><td style="padding-bottom: 1px"> </td> <td style="border-bottom: Black 1px solid; text-align: left"> </td><td style="border-bottom: Black 1px solid; text-align: right">-</td><td style="border-bottom: Black 1px solid; text-align: left"> </td><td style="padding-bottom: 1px"> </td> <td style="border-bottom: Black 1px solid; text-align: left"> </td><td style="border-bottom: Black 1px solid; text-align: right">33,099,743</td><td style="border-bottom: Black 1px solid; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; padding-bottom: 3px; text-indent: -10pt; padding-left: 10pt">Balance at March 31, 2023</td><td style="padding-bottom: 3px"> </td> <td style="border-bottom: Black 3px solid; text-align: left"> </td><td style="border-bottom: Black 3px solid; text-align: right">2,786.69</td><td style="border-bottom: Black 3px solid; text-align: left"> </td><td style="padding-bottom: 3px"> </td> <td style="border-bottom: Black 3px solid; text-align: left"> $</td><td style="border-bottom: Black 3px solid; text-align: right">79,331,020</td><td style="border-bottom: Black 3px solid; text-align: left"> </td></tr> </table><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The following represents the changes in quantity and the respective fair value of Bitcoin for the three months ended March 31, 2023:</p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 90%; font: 10pt Arial, Helvetica, Sans-Serif; margin-left: auto; margin-right: auto;"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1px"> </td> <td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1px solid">Bitcoin</td><td style="font-weight: bold; padding-bottom: 1px"> </td> <td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1px solid">Fair Value</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="width: 70%; font-weight: bold; text-indent: -10pt; padding-left: 10pt">Balance at January 1, 2022</td><td style="width: 3%"> </td> <td style="width: 2%; text-align: left"> </td><td style="width: 8%; text-align: right">2,828.93</td><td style="width: 1%; text-align: left"> </td><td style="width: 5%"> </td> <td style="width: 2%; text-align: right"> $ </td><td style="width: 8%; text-align: right">129,756,984</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -10pt; padding-left: 10pt">Bitcoin distributed for Management Fee, related party</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(13.78</td><td style="text-align: left">)</td><td> </td> <td style="text-align: right"> </td><td style="text-align: right">(407,612</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: left; text-indent: -10pt; padding-left: 10pt">Bitcoin distributed for other fees</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(22.27</td><td style="text-align: left">)</td><td> </td> <td style="text-align: right"> </td><td style="text-align: right">(531,601</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -10pt; padding-left: 10pt">Net realized gain on investment in Bitcoin</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: right"> </td><td style="text-align: right">809,988</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: left; padding-bottom: 1px; text-indent: -10pt; padding-left: 10pt">Net change in unrealized depreciation on investment in Bitcoin</td><td style="padding-bottom: 1px"> </td> <td style="border-bottom: Black 1px solid; text-align: left"> </td><td style="border-bottom: Black 1px solid; text-align: right">-</td><td style="border-bottom: Black 1px solid; text-align: left"> </td><td style="padding-bottom: 1px"> </td> <td style="border-bottom: Black 1px solid; text-align: right"> </td><td style="border-bottom: Black 1px solid; text-align: right">(83,374,314</td><td style="border-bottom: Black 1px solid; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; padding-bottom: 3px; text-indent: -10pt; padding-left: 10pt">Balance at December 31, 2022</td><td style="padding-bottom: 3px"> </td> <td style="border-bottom: Black 3px solid; text-align: left"> </td><td style="border-bottom: Black 3px solid; text-align: right">2,792.88</td><td style="border-bottom: Black 3px solid; text-align: left"> </td><td style="padding-bottom: 3px"> </td> <td style="border-bottom: Black 3px solid; text-align: right"> $ </td><td style="border-bottom: Black 3px solid; text-align: right">46,253,445</td><td style="border-bottom: Black 3px solid; text-align: left"> </td></tr> </table> 2792.88 46253445 -3.36 -71320 -2.83 -63322 112474 33099743 2786.69 79331020 108356 112474 4118 33095266 33099743 4477 2828.93 129756984 -13.78 -407612 -22.27 -531601 809988 83374314 2792.88 46253445 834003 809988 24015 83373064 -83374314 -1250 <p style="font: bold 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-indent: 0pt">4. <span style="font-size: 10pt">Income Taxes </span></p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 19.9pt 0 0; text-align: justify"> </p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The Trust is a grantor trust for U.S. federal income tax purposes. Accordingly, the Trust will not be subject to U.S. federal income tax. Rather, each beneficial owner of Units 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, gain, losses and deductions will “flow through” to each beneficial owner of Units.</p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">In accordance with GAAP, the Trust has defined the threshold for recognizing the benefits of tax return positions in the financial statements as “more-likely-than-not” to be sustained by the applicable taxing authority and requires measurement of a tax position meeting the “more-likely-than-not” threshold, based on the largest benefit that is more than 50% likely to be realized. As of March 31, 2023, the Trust did not have a liability for any unrecognized tax amounts for uncertain tax positions related to federal, state, and local income taxes.</p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">However, the conclusions concerning the determination of “more-likely-than-not” tax positions may be subject to review and adjustment at a later date based on factors including, but not limited to, further implementation guidance and on-going analyses of and changes to tax laws, regulations and interpretations thereof.</p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 4.5pt 0 0; text-align: justify"> </p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The Sponsor of the Trust has evaluated whether or not there are uncertain tax positions that require financial statement recognition and has determined that no reserves for uncertain tax positions related to federal, state and local income taxes existed as of March 31, 2023 and December 31, 2022. The Trust’s 2020, 2021, and 2022 tax returns are subject to audit by federal, state and local tax authorities.</p> <p style="font: bold 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-indent: 0pt">5. <span style="font-size: 10pt">Related Parties</span></p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"><b> </b></p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The Sponsor pays certain expenses on behalf of, and is reimbursed by, the Trust. For the three months ended March 31, 2023, and 2022 the Trust reimbursed the Sponsor the expenses in the amount of $63,322 and $58,497 respectively.</p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 9pt 0 0; text-align: justify"> </p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">For the three months ended March 31, 2023, and 2022, the Trust incurred Management Fees of $76,394 and $141,142, respectively, which are recorded in the accompanying statements of operations. As of March 31, 2023 and December 31, 2022, there were unpaid Management Fees of $32,882 and $19,213, respectively, which are recorded as management fee payable in the accompanying statements of assets and liabilities.</p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The Trust’s Management Fee is accrued daily in Bitcoins and will be payable, at the Sponsor’s sole discretion, in U.S. dollars or in Bitcoins at the Bitcoin market price in effect at the time of such payment. From inception through March 31, 2023, all Management Fees have been made in Bitcoin to the Sponsor.</p> 63322 58497 76394 141142 32882 19213 <p style="font: bold 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-indent: 0pt">6. <span style="font-size: 10pt">Risks and Uncertainties</span></p><p style="font: bold 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-indent: 0pt"> </p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"><i>Investment in Bitcoin</i></p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"><i> </i></p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The Trust is subject to various risks including market risk, liquidity risk, and other risks related to its concentration in a single asset, Bitcoin. Investing in Bitcoin is currently unregulated, highly speculative, and volatile.</p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"> </p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The net asset value of the Trust relates primarily to the value of Bitcoin held by the Trust, and fluctuations in the price of Bitcoin could materially and adversely affect an investment in the Units of the Trust. The price of Bitcoin has a limited history. During such history, Bitcoin prices have been volatile and subject to influence by many factors including the levels of liquidity.</p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">If Bitcoin exchanges continue to experience significant price fluctuations, the Trust may experience losses. Several factors may affect the price of Bitcoin, including, but not limited to, global Bitcoin supply and demand, theft of Bitcoin from global exchanges or vaults, and competition from other forms of digital currency or payment<span style="letter-spacing: -0.05pt"> </span>services. The Bitcoin held by the Trust are commingled and the Trust’s Unitholders have no specific rights to any specific Bitcoin. In the event of the insolvency of the Trust, its assets may be inadequate to satisfy a claim by its Unitholders.</p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">There is currently no clearing house for Bitcoin, nor is there a central or major depository for the custody of Bitcoin. There is a risk that some or all of the Trust’s Bitcoin could be lost or stolen. The Trust does not have insurance protection on its Bitcoin which exposes the Trust and its Unitholders to the risk of loss of the Trust’s Bitcoin. Further, Bitcoin transactions are irrevocable. Stolen or incorrectly transferred Bitcoin may be irretrievable. As a result, any incorrectly executed Bitcoin transactions could adversely affect an investment in the Trust.</p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"> </p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">To the extent private keys for Bitcoin addresses are lost, destroyed or otherwise compromised and no backup of the private keys are accessible, the Trust may be unable to access the Bitcoin held in the associated addresses and the private keys will not be capable of being restored. The processes by which Bitcoin transactions are settled are dependent on the Bitcoin peer-to-peer network, and as such, the Trust is subject to operational risk. A risk also exists with respect to previously unknown technical vulnerabilities, which may adversely affect the value of Bitcoin.</p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><i>The Custodian </i></p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The digital assets owned by the Trust are held by the Custodian and secured in a segregated custody account. All digital asset private keys are stored in offline storage, or “cold” storage. “Cold” storage is a safeguarding method by which the private keys corresponding to digital assets are disconnected and/or deleted entirely from the internet. As a result of digital assets being stored in “cold” storage, any withdrawal and subsequent transaction request to the Custodian by the Trust requires up to twenty-four (24) hour prior notice to process. Such time delay between the withdrawal request and processing of the withdrawal may negatively impact the price of the digital asset upon sale. The Custodian provides the Trust with monthly account statements. The Custodian is independent from the Sponsor.</p> <p style="font: 12pt Arial, Helvetica, Sans-Serif; margin-top: 0pt; margin-bottom: 0pt"> <span style="font-size: 10pt"><b>7. Indemnifications</b></span></p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"> </p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">In the normal course of business, the Trust enters into contracts with service providers that contain a variety of representations and warranties and which provide general indemnifications. It is not possible to determine the maximum potential exposure or amount under these agreements due to the Trust having no prior claims. Based on experience, the Trust would expect the risk of loss to be remote.</p> <p style="font: bold 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-indent: 0pt">8. <span style="font-size: 10pt">Financial Highlights </span></p><p style="font: bold 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-indent: 0pt"> </p><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 95%; font: 10pt Arial, Helvetica, Sans-Serif; margin-left: auto; margin-right: auto;"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1px"> </td> <td colspan="3" style="border-bottom: Black 1px solid; font-weight: bold; text-align: center">Three months<br/> ended March<br/> 31, 2023</td><td style="font-weight: bold; padding-bottom: 1px"> </td> <td colspan="3" style="border-bottom: Black 1px solid; font-weight: bold; text-align: center">Three months<br/> ended March<br/> 31, 2022</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td><b>Per Unit Performance</b><br/> (for a unit outstanding throughout the period)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 60%; text-indent: -10pt; padding-left: 10pt; padding-bottom: 1px">Net asset value per unit at beginning of period</td><td style="width: 3%; padding-bottom: 1px"> </td> <td style="width: 2%; border-bottom: Black 1px solid; text-align: left">$</td><td style="width: 12%; border-bottom: Black 1px solid; text-align: right">5.52</td><td style="width: 2%; border-bottom: Black 1px solid; text-align: left"> </td><td style="width: 5%; padding-bottom: 1px"> </td> <td style="width: 2%; border-bottom: Black 1px solid; text-align: left">$</td><td style="width: 12%; border-bottom: Black 1px solid; text-align: right">15.55</td><td style="width: 2%; border-bottom: Black 1px solid; text-align: left"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="font-style: italic; text-align: left; text-indent: -10pt; padding-left: 20pt">Net increase (decrease) in net assets resulting from operations</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -10pt; padding-left: 30pt">Net realized gain (loss) and change in unrealized appreciation (depreciation) on investment</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">3.98</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(0.10</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: left; text-indent: -10pt; padding-left: 30pt; padding-bottom: 1px">Net investment loss</td><td style="padding-bottom: 1px"> </td> <td style="border-bottom: Black 1px solid; text-align: left"> </td><td style="border-bottom: Black 1px solid; text-align: right">(0.03</td><td style="border-bottom: Black 1px solid; text-align: left">)</td><td style="padding-bottom: 1px"> </td> <td style="border-bottom: Black 1px solid; text-align: left"> </td><td style="border-bottom: Black 1px solid; text-align: right">(0.03</td><td style="border-bottom: Black 1px solid; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -10pt; padding-left: 40pt; padding-bottom: 1px">Net increase (decrease) in net assets resulting from operations</td><td style="padding-bottom: 1px"> </td> <td style="border-bottom: Black 1px solid; text-align: left"> </td><td style="border-bottom: Black 1px solid; text-align: right">3.95</td><td style="border-bottom: Black 1px solid; text-align: left"> </td><td style="padding-bottom: 1px"> </td> <td style="border-bottom: Black 1px solid; text-align: left"> </td><td style="border-bottom: Black 1px solid; text-align: right">(0.13</td><td style="border-bottom: Black 1px solid; text-align: left">)</td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-indent: -10pt; padding-left: 10pt; padding-bottom: 3px">Net asset value per unit at end of period</td><td style="padding-bottom: 3px"> </td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">9.47</td><td style="border-bottom: Black 3px double; text-align: left"> </td><td style="padding-bottom: 3px"> </td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">15.42</td><td style="border-bottom: Black 3px double; text-align: left"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -10pt; padding-left: 10pt; padding-bottom: 3px">Total return</td><td style="padding-bottom: 3px"> </td> <td style="border-bottom: Black 3px double; text-align: left"> </td><td style="border-bottom: Black 3px double; text-align: right">71.56</td><td style="border-bottom: Black 3px double; text-align: left">%</td><td style="padding-bottom: 3px"> </td> <td style="border-bottom: Black 3px double; text-align: left"> </td><td style="border-bottom: Black 3px double; text-align: right">(0.84</td><td style="border-bottom: Black 3px double; text-align: left">)%</td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: left; text-indent: -10pt; padding-left: 10pt">Ratios to average net asset value</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-indent: -10pt; padding-left: 20pt; padding-bottom: 3px">Expenses</td><td style="padding-bottom: 3px"> </td> <td style="border-bottom: Black 3px double; text-align: left"> </td><td style="border-bottom: Black 3px double; text-align: right">1.30</td><td style="border-bottom: Black 3px double; text-align: left">%</td><td style="padding-bottom: 3px"> </td> <td style="border-bottom: Black 3px double; text-align: left"> </td><td style="border-bottom: Black 3px double; text-align: right">0.89</td><td style="border-bottom: Black 3px double; text-align: left">%</td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: left; text-indent: -10pt; padding-left: 20pt; padding-bottom: 0; padding-top: 0">Net investment loss</td><td style="padding-bottom: 0; padding-top: 0"> </td> <td style="border-bottom: Black 3px double; text-align: left; padding-top: 0; padding-bottom: 0"> </td><td style="border-bottom: Black 3px double; text-align: right; padding-top: 0; padding-bottom: 0">(1.30</td><td style="border-bottom: Black 3px double; text-align: left; padding-top: 0; padding-bottom: 0">)%</td><td style="padding-bottom: 0; padding-top: 0"> </td> <td style="border-bottom: Black 3px double; text-align: left; padding-top: 0; padding-bottom: 0"> </td><td style="border-bottom: Black 3px double; text-align: right; padding-top: 0; padding-bottom: 0">(0.89</td><td style="border-bottom: Black 3px double; text-align: left; padding-bottom: 0; padding-top: 0">)%</td></tr> </table><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify; text-indent: 0pt"> </p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify; text-indent: 0pt"><span style="font-weight: normal">An individual Unitholder’s return, ratios, and per Unit performance may vary from those presented above based on the timing of Unit transactions. Total return and ratios to average net asset value are calculated for the Unitholders taken as a whole. Ratios have been annualized for the partial periods ended March 31, 2023 and 2022.</span></p> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 95%; font: 10pt Arial, Helvetica, Sans-Serif; margin-left: auto; margin-right: auto;"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1px"> </td> <td colspan="3" style="border-bottom: Black 1px solid; font-weight: bold; text-align: center">Three months<br/> ended March<br/> 31, 2023</td><td style="font-weight: bold; padding-bottom: 1px"> </td> <td colspan="3" style="border-bottom: Black 1px solid; font-weight: bold; text-align: center">Three months<br/> ended March<br/> 31, 2022</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td><b>Per Unit Performance</b><br/> (for a unit outstanding throughout the period)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 60%; text-indent: -10pt; padding-left: 10pt; padding-bottom: 1px">Net asset value per unit at beginning of period</td><td style="width: 3%; padding-bottom: 1px"> </td> <td style="width: 2%; border-bottom: Black 1px solid; text-align: left">$</td><td style="width: 12%; border-bottom: Black 1px solid; text-align: right">5.52</td><td style="width: 2%; border-bottom: Black 1px solid; text-align: left"> </td><td style="width: 5%; padding-bottom: 1px"> </td> <td style="width: 2%; border-bottom: Black 1px solid; text-align: left">$</td><td style="width: 12%; border-bottom: Black 1px solid; text-align: right">15.55</td><td style="width: 2%; border-bottom: Black 1px solid; text-align: left"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="font-style: italic; text-align: left; text-indent: -10pt; padding-left: 20pt">Net increase (decrease) in net assets resulting from operations</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -10pt; padding-left: 30pt">Net realized gain (loss) and change in unrealized appreciation (depreciation) on investment</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">3.98</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(0.10</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: left; text-indent: -10pt; padding-left: 30pt; padding-bottom: 1px">Net investment loss</td><td style="padding-bottom: 1px"> </td> <td style="border-bottom: Black 1px solid; text-align: left"> </td><td style="border-bottom: Black 1px solid; text-align: right">(0.03</td><td style="border-bottom: Black 1px solid; text-align: left">)</td><td style="padding-bottom: 1px"> </td> <td style="border-bottom: Black 1px solid; text-align: left"> </td><td style="border-bottom: Black 1px solid; text-align: right">(0.03</td><td style="border-bottom: Black 1px solid; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -10pt; padding-left: 40pt; padding-bottom: 1px">Net increase (decrease) in net assets resulting from operations</td><td style="padding-bottom: 1px"> </td> <td style="border-bottom: Black 1px solid; text-align: left"> </td><td style="border-bottom: Black 1px solid; text-align: right">3.95</td><td style="border-bottom: Black 1px solid; text-align: left"> </td><td style="padding-bottom: 1px"> </td> <td style="border-bottom: Black 1px solid; text-align: left"> </td><td style="border-bottom: Black 1px solid; text-align: right">(0.13</td><td style="border-bottom: Black 1px solid; text-align: left">)</td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-indent: -10pt; padding-left: 10pt; padding-bottom: 3px">Net asset value per unit at end of period</td><td style="padding-bottom: 3px"> </td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">9.47</td><td style="border-bottom: Black 3px double; text-align: left"> </td><td style="padding-bottom: 3px"> </td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">15.42</td><td style="border-bottom: Black 3px double; text-align: left"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -10pt; padding-left: 10pt; padding-bottom: 3px">Total return</td><td style="padding-bottom: 3px"> </td> <td style="border-bottom: Black 3px double; text-align: left"> </td><td style="border-bottom: Black 3px double; text-align: right">71.56</td><td style="border-bottom: Black 3px double; text-align: left">%</td><td style="padding-bottom: 3px"> </td> <td style="border-bottom: Black 3px double; text-align: left"> </td><td style="border-bottom: Black 3px double; text-align: right">(0.84</td><td style="border-bottom: Black 3px double; text-align: left">)%</td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: left; text-indent: -10pt; padding-left: 10pt">Ratios to average net asset value</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-indent: -10pt; padding-left: 20pt; padding-bottom: 3px">Expenses</td><td style="padding-bottom: 3px"> </td> <td style="border-bottom: Black 3px double; text-align: left"> </td><td style="border-bottom: Black 3px double; text-align: right">1.30</td><td style="border-bottom: Black 3px double; text-align: left">%</td><td style="padding-bottom: 3px"> </td> <td style="border-bottom: Black 3px double; text-align: left"> </td><td style="border-bottom: Black 3px double; text-align: right">0.89</td><td style="border-bottom: Black 3px double; text-align: left">%</td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: left; text-indent: -10pt; padding-left: 20pt; padding-bottom: 0; padding-top: 0">Net investment loss</td><td style="padding-bottom: 0; padding-top: 0"> </td> <td style="border-bottom: Black 3px double; text-align: left; padding-top: 0; padding-bottom: 0"> </td><td style="border-bottom: Black 3px double; text-align: right; padding-top: 0; padding-bottom: 0">(1.30</td><td style="border-bottom: Black 3px double; text-align: left; padding-top: 0; padding-bottom: 0">)%</td><td style="padding-bottom: 0; padding-top: 0"> </td> <td style="border-bottom: Black 3px double; text-align: left; padding-top: 0; padding-bottom: 0"> </td><td style="border-bottom: Black 3px double; text-align: right; padding-top: 0; padding-bottom: 0">(0.89</td><td style="border-bottom: Black 3px double; text-align: left; padding-bottom: 0; padding-top: 0">)%</td></tr> </table><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify; text-indent: 0pt"> </p> 5.52 15.55 3.98 -0.1 -0.03 -0.03 3.95 -0.13 9.47 15.42 0.7156 -0.0084 0.013 0.0089 -0.013 -0.0089 <p style="font: bold 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-indent: 0pt">9. <span style="font-size: 10pt">Subsequent Events</span></p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">There are no events that have occurred that require disclosure other than that which has already been disclosed in these notes to the financial statements.</p> NONE false --12-31 Q1 2023 0001767057 EXCEL 38 Financial_Report.xlsx IDEA: XBRL DOCUMENT begin 644 Financial_Report.xlsx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