Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2024 | Aug. 08, 2024 | |
Cover [Abstract] | ||
Entity Registrant Name | BITWISE BITCOIN ETF | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2024 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q2 | |
Current Fiscal Year End Date | --12-31 | |
Entity Central Index Key | 0001763415 | |
Trading Symbol | BITB | |
Entity Filer Category | Non-accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Common Stock, Shares Outstanding | 69,910,000 | |
Entity Emerging Growth Company | true | |
Entity Small Business | true | |
Entity Ex Transition Period | true | |
Entity Shell Company | false | |
Entity File Number | 001-41902 | |
Entity Tax Identification Number | 83-6613214 | |
Entity Address, Address Line One | 250 Montgomery Street | |
Entity Address, Address Line Two | Suite 200 | |
Entity Address, City or Town | San Francisco | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94104 | |
City Area Code | 415 | |
Local Phone Number | 707-3663 | |
Document Transition Report | false | |
Entity Incorporation, State or Country Code | DE | |
Entity Interactive Data Current | Yes | |
Title of 12(b) Security | Bitwise Bitcoin ETF Shares | |
Security Exchange Name | NYSEArca |
Statements of Assets and Liabil
Statements of Assets and Liabilities - USD ($) | Jun. 30, 2024 | Dec. 31, 2023 | [2] | |
Assets | ||||
Investment in bitcoin, at fair value (cost $1,999,478) | $ 2,249,899,000 | [1] | $ 0 | |
Capital shares receivable | 0 | 0 | ||
Cash | 0 | 200 | [3] | |
Total assets | 2,249,899,000 | 0 | ||
Liabilities | ||||
Bitcoin purchased payable | 0 | 0 | ||
Sponsor Fee payable | 241,000 | 0 | ||
Total liabilities | 241,000 | 0 | ||
Net Assets | 2,249,658,000 | [1],[4] | 0 | [3] |
Shares issued and outstanding, no par value, unlimited amount authorized | $ 68,850,000,000 | $ 4,000 | [5] | |
Net asset value per Share | $ 32.67 | [6] | $ 50 | [5] |
[1] No comparative period presented as the Trust commenced operations on January 10, 2024. As of December 31, 2023, the Trust held initial seed capital amounting to $ 200 in cash. Amount represents less than $ 500 . No comparative financial statements have been provided as the Trust’s operations commenced on January 10, 2024. Prior to commencement of operations on January 10, 2024, Bitwise Asset Management, Inc. ("BAM"), the parent company of the Sponsor, redeemed the initial seed capital of 4 shares for $ 200 . No comparative financial statements have been presented as the Trust's operations commenced on January 10, 2024. |
Statements of Assets and Liab_2
Statements of Assets and Liabilities (Parenthetical) - USD ($) | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2024 | Dec. 31, 2023 | ||||
Investment cost | [1] | $ 1,999,478,000 | |||
Initial seed capital amounting | $ 200,000 | ||||
Capital stock per share | $ 32.67 | [2] | $ 50 | [3],[4] | |
Common stock, no par value | $ 0 | $ 0 | |||
Common Stock, Shares Authorized, Unlimited [Fixed List] | Unlimited | Unlimited | |||
Maximum [Member] | |||||
Initial seed capital amounting | $ 500,000 | ||||
[1] No comparative period presented as the Trust commenced operations on January 10, 2024. No comparative financial statements have been presented as the Trust's operations commenced on January 10, 2024. As of December 31, 2023, the Trust held initial seed capital amounting to $ 200 in cash. Prior to commencement of operations on January 10, 2024, Bitwise Asset Management, Inc. ("BAM"), the parent company of the Sponsor, redeemed the initial seed capital of 4 shares for $ 200 . |
Schedules of Investment
Schedules of Investment $ in Thousands | Jun. 30, 2024 USD ($) | [1] |
Schedule of Investments [Line Items] | ||
Cost | $ 1,999,478 | |
Fair Value | 2,249,899 | |
Liabilities in excess of other assets | (241) | |
Net Assets | $ 2,249,658 | [2] |
Investment Owned, Percent of Net Assets | 100.01% | |
Percentage of liabilities in excess of assets | (0.01%) | |
Percentage of Net Assets | 100% | |
Bitcoin | ||
Schedule of Investments [Line Items] | ||
Quantity of Bitcoin | 37,528.2763 | [3] |
Cost | $ 1,999,478 | [3] |
Fair Value | $ 2,249,899 | [3] |
Investment Owned, Percent of Net Assets | 100.01% | [3] |
[1] No comparative period presented as the Trust commenced operations on January 10, 2024. No comparative financial statements have been provided as the Trust’s operations commenced on January 10, 2024. Crypto assets do not have a singular country or geographic region, therefore country information is omitted. |
Statements of Operations
Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2024 | [1] | |
Investment income | |||
Investment income | $ 0 | $ 0 | |
Expenses | |||
Sponsor Fee | 1,147 | 1,678 | |
Total Expenses | 1,147 | 1,678 | |
Less Waivers and Reimbursement | (497) | (851) | |
Net Expenses | 650 | 827 | |
Net investment loss | (650) | (827) | |
Net realized and unrealized gain (loss) | |||
Net realized gain (loss) on investment in bitcoin transferred to pay Sponsor Fee | 228 | 234 | |
Net realized gain (loss) on investment in bitcoin sold for redemptions | (24,202) | (24,202) | |
Net change in unrealized appreciation (depreciation) on investment in bitcoin | (374,561) | 250,421 | |
Net realized and unrealized gain (loss) | (398,535) | 226,453 | |
Net increase (decrease) in net assets resulting from operations | $ (399,185) | $ 225,626 | |
[1] No comparative financial statements have been provided as the Trust’s operations commenced on January 10, 2024. |
Statements of Changes in Net As
Statements of Changes in Net Assets - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2024 | |||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest [Abstract] | ||||
Net investment loss | $ (650) | $ (827) | [1] | |
Net realized gain (loss) on investment in bitcoin transferred to pay Sponsor Fee | 228 | 234 | [1] | |
Net realized gain (loss) on investment in bitcoin sold for redemptions | (24,202) | (24,202) | [1] | |
Net change in unrealized appreciation (depreciation) | (374,561) | 250,421 | [1] | |
Net increase (decrease) in net assets resulting from operations | (399,185) | 225,626 | [2] | |
Increase (decrease) in net assets from capital share transactions | ||||
Creations for Shares issued | 613,110 | 2,234,785 | [2] | |
Redemptions for Shares redeemed | (208,520) | (210,753) | [2] | |
Net increase (decrease) in net assets resulting from capital share transactions | 404,590 | 2,024,032 | [2] | |
Total increase (decrease) in net assets from operations and capital share transactions | 5,405 | 2,249,658 | [2] | |
Net assets | ||||
Beginning of period | 2,244,253 | 0 | [2],[3] | |
End of period | [2],[4] | $ 2,249,658 | $ 2,249,658 | |
Increase (Decrease) in Partners' Capital [Roll Forward] | ||||
Shares issued | 16,790,000 | 74,980,000 | [2] | |
Shares redeemed | (6,050,000) | (6,130,000) | [2] | |
Net increase (decrease) in Shares issued and outstanding | 10,740,000 | 68,850,000 | [2] | |
[1] No comparative financial statements have been provided as the Trust’s operations commenced on January 10, 2024. No comparative financial statements have been provided as the Trust’s operations commenced on January 10, 2024. Prior to commencement of operations on January 10, 2024, BAM redeemed the initial seed capital of 4 shares for $ 200 , Bitwise Investment Manager, LLC, an affiliate of the Sponsor, purchased 10,010 Shares of the Trust for $ 500,500 and then subsequently redeemed those shares and the Trust formally revised its NAV per Share from $ 50.00 per Share to $ 25.00 per Share. No comparative period presented as the Trust commenced operations on January 10, 2024. |
Statements of Changes in Net _2
Statements of Changes in Net Assets (Parenthetical) - USD ($) | 6 Months Ended | |||||||||
Jan. 10, 2024 | Jan. 09, 2024 | Jan. 05, 2024 | Jun. 30, 2024 | Mar. 31, 2024 | Jan. 08, 2024 | Dec. 31, 2023 | [2],[3] | |||
Purchase of shares, value | $ 59,952,110 | |||||||||
NAV per share | $ 25 | [1] | $ 32.67 | [1] | $ 38.62 | $ 50 | $ 50 | |||
Sponsor | ||||||||||
Number of shares redeemed | 4 | |||||||||
Amount of shares redeemed | $ 200 | |||||||||
Bitwise Investment Manager, LLC | ||||||||||
Shares issued | 100,000 | 10,010 | 10,010 | |||||||
Purchase of shares, value | $ 2,500,000 | $ 500,500 | $ 500,500 | |||||||
NAV per share | $ 25 | $ 50 | ||||||||
[1] No comparative financial statements have been presented as the Trust's operations commenced on January 10, 2024. As of December 31, 2023, the Trust held initial seed capital amounting to $ 200 in cash. Prior to commencement of operations on January 10, 2024, Bitwise Asset Management, Inc. ("BAM"), the parent company of the Sponsor, redeemed the initial seed capital of 4 shares for $ 200 . |
Statement of Cash Flows
Statement of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2024 | |||
Cash flow from operating activities | ||||
Net increase (decrease) in net assets resulting from operations | [1] | $ 225,626 | ||
Adjustments to reconcile net increase in net assets resulting from operations to net cash provided by (used in) operating activities: | ||||
Purchases of bitcoin | [1] | (2,195,061) | ||
Proceeds from bitcoin sold | [1] | 171,615 | ||
Net realized (gain) loss from investment in bitcoin transferred to pay Sponsor Fee | $ (228) | (234) | [2] | |
Net realized (gain) loss from investment in bitcoin sold for redemptions | 24,202 | 24,202 | [2] | |
Net change in unrealized (appreciation) on investment in bitcoin | 374,561 | (250,421) | [2] | |
Increase (Decrease) in Sponsor Fee payable | [1] | 241 | ||
Net cash provided by (used in) operating activities | [1] | (2,024,032) | ||
Cash flow from financing activities | ||||
Shares issued | [1] | 2,234,785 | ||
Shares redeemed | [1] | (210,753) | ||
Net cash provided by (used in) financing activities | [1] | 2,024,032 | ||
Net increase (decrease) in cash | [1] | 0 | ||
Cash, beginning of period | [1],[3] | 0 | ||
Cash, end of period | [1] | $ 0 | 0 | |
Supplemental disclosure of noncash operating activities | ||||
Transfer of bitcoin to pay for Sponsor Fee | [1] | $ 586 | ||
[1] No comparative financial statements have been provided as the Trust’s operations commenced on January 10, 2024. No comparative financial statements have been provided as the Trust’s operations commenced on January 10, 2024. Prior to commencement of operations on January 10, 2024, BAM redeemed the initial seed capital of 4 shares for $ 200 . |
Statement of Cash Flows (Parent
Statement of Cash Flows (Parenthetical) - Sponsor | Jan. 09, 2024 USD ($) shares |
Number of shares redeemed | shares | 4 |
Amount of shares redeemed | $ | $ 200 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2024 | ||
Pay vs Performance Disclosure | |||
Net Income (Loss) | $ (399,185) | $ 225,626 | [1] |
[1] No comparative financial statements have been provided as the Trust’s operations commenced on January 10, 2024. |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 30, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Rule 10b5-1 Arrangement Modified | false |
Non-Rule 10b5-1 Arrangement Modified | false |
Organization
Organization | 3 Months Ended |
Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | 1. Organization Bitwise Bitcoin ETF (the “Trust”), formerly Bitwise Bitcoin ETP Trust, is an investment trust organized on August 29, 2019, under Delaware law pursuant to a Declaration of Trust and Trust Agreement (the “Trust Agreement”). The Trust’s investment objective is to seek to provide exposure to the value of bitcoin held by the Trust, less the expenses of the Trust’s operations, generally just the sponsor’s management fee. In seeking to achieve its investment objective, the Trust’s sole asset is bitcoin. The Trust is an Exchange Traded Product (“ETP”) that issues common shares of beneficial interest (“Shares”) that are listed on the NYSE Arca, Inc. (the “Exchange”) under the ticker symbol “BITB,” providing investors with an efficient means to obtain market exposure to the price of bitcoin. Bitwise Investment Advisers, LLC (the “Sponsor”) serves as the Sponsor for the Trust. The Sponsor arranged for the creation of the Trust and is responsible for the ongoing registration of the Shares for their public offering in the U.S. and the listing of Shares on the Exchange. The Sponsor develops a marketing plan for the Trust, prepares marketing materials regarding the Shares, and operates the marketing plan of the Trust on an ongoing basis. The Sponsor also oversees the additional service providers of the Trust and exercises managerial control of the Trust as permitted under the Trust Agreement. The Sponsor has agreed to pay all normal operating expenses of the Trust (except for litigation expenses and other extraordinary expenses) out of the Sponsor’s unitary management fee and may determine in its sole discretion to assume legal fees and expenses of the Trust in excess of the $ 500,000 per annum. The Sponsor also paid the costs of the Trust’s organization. Delaware Trust Company acts as the trustee of the Trust (the “Trustee”) for the purpose of creating a Delaware statutory trust in accordance with the Delaware Statutory Trust Act (“DSTA”) that the Trust have at least one trustee with a principal place of business in the State of Delaware. The Trust purchases and sells bitcoin directly and it creates or redeems its Shares in cash-settled transactions in blocks of 10,000 Shares at the Trust’s net asset value (“NAV”) per Share and only in transactions with financial firms that are authorized to purchase or redeem Shares with the Trust (each, an “Authorized Participant”). An Authorized Participant will deliver, or cause to be delivered, cash to the Trust when it purchases Shares from the Trust, and the Trust will deliver cash to an Authorized Participant, or its designee, when it redeems Shares with the Trust. Authorized Participants, and their customers, may then, in turn, offer Shares to the public at prices that depend on various factors, including the supply and demand for Shares, the value of the Trust’s assets, and market conditions at the time of a transaction. Investors who buy or sell Shares during the day from their broker may do so at a premium or discount relative to the NAV of the Shares. The Trust's registration statement on Form S-1 relating to its continuous public offering of Shares was declared effective by the U.S. Securities and Exchange Commission on January 10, 2024 and the Shares of the Trust were listed on the Exchange on January 11, 2024. The statements of assets and liabilities and schedule of investment as of June 30, 2024, and the statements of operations, cash flows and changes in net assets for the period ended June 30, 2024, have been prepared on behalf of the Trust and are unaudited. In the opinion of management of the Sponsor of the Trust, all adjustments (which include normal recurring adjustments) necessary to present fairly the financial position and results of operations for the period ended June 30, 2024, and for all interim periods presented have been made. In addition, interim period results are not necessarily indicative of results for a full-year period. Prior to the commencement of operations on January 10, 2024, on November 9, 2023, BAM purchased 4 Shares at a per-Share price of $ 50.00 for $ 200 in a transaction exempt from registration under Section 4(a)(2) of the 1933 Act. Delivery of the Seed Shares was made on November 9, 2023. On January 5, 2024, Bitwise Investment Manager, LLC (“BIM”), an affiliate of the Sponsor, purchased 10,010 Shares of the Trust at a per-Share price of $ 50.00 for $ 500,500 . On January 10, 2024, BAM redeemed the entirety of its 4 inital Seed Shares for $ 200 and BIM redeemed the entirety of its 10,010 Shares for $ 500,500 . Following the redemptions, on January 10, 2024, the Trust formally revised its NAV per Share from $ 50.00 per Share to $ 25.00 per Share. Additionally, on January 10, 2024, BIM purchased the initial 100,000 Shares of the Trust (the “Seed Baskets”) for $ 2,500,000 , at $ 25.00 per Share. BIM acted as a statutory underwriter in connection with the initial purchase of the Seed Baskets. During January 11, 2024, BIM sold all of its 100,000 Shares of the Trust for cash. |
Significant Accounting Policies
Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | 2. Significant Accounting Policies The following is a summary of significant accounting policies consistently followed by the Trust in the preparation of its financial statements. Basis of presentation The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). The Trust is an investment company and follows the specialized accounting and reporting guidance in the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC” or “Codification”) Topic 946, Financial Services—Investment Companies. Use of Estimates The preparation of the financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of these financial statements. Actual results could differ from those estimates. Indemnifications In the normal course of business, the Trust enters into contracts and agreements that contain a variety of representations and warranties and which provide general indemnifications. The Trust’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Trust that have not yet occurred. The Trust expects the risk of any future obligation under these indemnifications to be remote. Cash Generally, the Trust does not intend to hold any cash. Cash includes non-interest bearing non-restricted cash with one institution. Cash in a bank deposit account, at times, may exceed U.S. federally insured limits. The Trust has not experienced any losses in such accounts and does not believe it is exposed to any significant credit risk on such bank deposits. On December 31, 2023, the Trust held $ 200 in cash relating to the initial seed capital shares. Investment Transactions and Revenue Recognition The Trust records its investment transactions on a trade date basis and changes in fair value are reflected as net change in unrealized appreciation or depreciation on investment in bitcoin. Realized gains and losses are calculated using the specific identification method. Realized gains and losses are recognized in connection with transactions including settling obligations for the Sponsor Fee in bitcoin. Investment Valuation - Principal Market NAV U.S. GAAP defines fair value as the price the Trust would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. The Trust’s policy is to value investments held at fair value. For financial statement reporting, the Trust identifies and determines the bitcoin principal market (or in the absence of a principal market, the most advantageous market) for U.S. GAAP purposes consistent with the application of the fair value measurement framework in FASB ASC Topic 820. A principal market is the market with the greatest volume and activity level for the asset or liability. The Principal Market NAV and the Principal Market NAV per Share are calculated using the fair value of bitcoin based on the price provided by this exchange market, as of 4:00 p.m. ET on the measurement date for U.S. GAAP purposes. The Trust determines its principal market (or in the absence of a principal market the most advantageous market) on a quarterly basis to determine which market is its Principal Market for the purpose of calculating fair value for the creation of quarterly and annual financial statements. Specifically, the Trust utilizes a third-party valuation vendor, Lukka, Inc., to identify publicly available, well established and reputable Crypto Asset exchanges selected by Lukka, Inc. in their sole discretion, including Binance, Bitfinex, Bitflyer, Bitstamp, Coinbase Pro, Crypto.com, Gemini, HitBTC, Huobi, Kraken, KuCoin, OKEx, Poloniex, and then calculating, on each valuation period, the highest volume exchange during the 60 minutes prior to 4:00 p.m. ET for bitcoin. In evaluating the markets that could be considered principal markets, the Trust considered whether the specific markets were accessible to the Trust, either directly or through an intermediary, at the end of each period. The Principal Market and the Principal Market Price for bitcoin that comprised the majority of the Trust’s assets for the three-month period ended June 30, 2024 was Coinbase with a price of $ 59,952.11 . Various inputs are used in determining the fair value of assets and liabilities. Inputs may be based on independent market data (“observable inputs”) or they may be internally developed (“unobservable inputs”). These inputs are categorized into a disclosure hierarchy consisting of three broad levels for financial reporting purposes. The level of a value determined for an asset or liability within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement in its entirety. The three levels of the fair value hierarchy are as follows: Level 1: Unadjusted quoted prices in active markets for identical assets or liabilities; Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability either directly or indirectly, including quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not considered to be active, inputs other than quoted prices that are observable for the asset or liability, and inputs that are derived principally from or corroborated by observable market data by correlation or other means; and Level 3: Unobservable inputs, including the Trust's assumptions used in determining the fair value of investments, where there is little or no market activity for the asset or liability at the measurement date. The cost basis of the investment in bitcoin recorded by the Trust for financial reporting purposes is the fair value of bitcoin at the time of transfer. The cost basis recorded by the Trust may differ from proceeds collected by the Authorized Participant from the sale of the corresponding Shares to investors. Given that bitcoins are actively traded and valuation adjustments are not applied, they are categorized in Level 1 of the fair value hierarchy. The following summarizes the Trust’s assets accounted for at fair value at June 30, 2024* (amounts in thousands): Level 1 Level 2 Level 3 Total Assets Investment in bitcoin, at fair value $ 2,249,899 $ — $ — $ 2,249,899 * No comparative period presented as the Trust commenced operations on January 10, 2024. Calculation of Net Asset Value (NAV) and NAV per Share On each business day, as soon as practicable after 4:00 p.m. ET , the net asset value of the Trust is obtained by subtracting all accrued fees and other liabilities of the Trust from the fair value of the bitcoin and other assets held by the Trust. The Bank of New York Mellon (the “Administrator”) computes the net asset value per Share by dividing the net asset value of the Trust by the number of Shares outstanding on the date the computation is made. Income Taxes The Trust is classified as a “grantor trust” for U.S. federal income tax purposes. As a result, the Trust itself is not subject to U.S. federal income tax. Instead, the Trust’s income and expenses “flow through” to the shareholders, and the Administrator reports the Trust’s income, gains, losses, and deductions to the Internal Revenue Service on that basis. The Sponsor has analyzed applicable tax laws and regulations and their application to the Trust, and does not believe that there are any uncertain tax positions that require recognition of a tax liability as of June 30, 2024. The Trust is required to determine whether its tax positions are more likely than not to be sustained on examination by the applicable taxing authority, based on the technical merits of the position. Tax positions not deemed to meet a more likely than not threshold would be recorded as a tax expense in the current year. As of June 30, 2024 and December 31, 2023, the Trust has determined that no provision for income taxes is required and no liability for unrecognized tax benefits has been recorded. The Trust does not expect that its assessment related to unrecognized tax benefits will materially change over the next 12 months. However, the Trust’s conclusions may be subject to review and adjustment at a later date based on factors including, but not limited to, the nexus of income among various tax jurisdictions; compliance with U.S. federal, U.S. state, and tax laws of jurisdictions in which the Trust operates in; and changes in the administrative practices and precedents of the relevant authorities. The Trust is required to analyze all open tax years. Open tax years are those years that are open for examination by the relevant income taxing authority. As of June 30, 2024, all tax years since inception remain open for examination. There were no examinations in progress at period end. Organizational and offering costs The costs of the Trust’s organization and the initial offering of the Shares will be borne directly by the Sponsor. The Trust will not be obligated to reimburse the Sponsor. |
Fair Value of Bitcoin
Fair Value of Bitcoin | 6 Months Ended |
Jun. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Bitcoin | 3. Fair Value of bitcoin As of June 30, 2024* the Trust held a net closing balance of 37,528.2763 bitcoin with a total market value of $ 2,264,087,289 based on the CME CF Bitcoin Reference Rate - New York Variant ("BRRNY") price of $ 60,330.17 , used to determine the Trust's NAV. The total market value of the Trust's bitcoin held was $ 2,249,899,349 based on the price of a bitcoin (Lukka Prime Rate) in the principal market (Coinbase) of $ 59,952.11 , used to determine the Trust's Principal Market NAV. The following represents the changes in quantity of bitcoin and the respective fair value on June 30, 2024*: Quantity of bitcoin Fair Value Beginning balance as of January 10, 2024 (commencement of operations) 0.0000 $ 0 Purchases 40,262.6503 2,195,061 Sales for the redemption of Shares ( 2,725.4216 ) ( 171,029 ) Bitcoin transferred for Sponsor Fee ( 8.9524 ) ( 586 ) Net realized gain (loss) on investment in bitcoin transferred to pay Sponsor Fee — 234 Net realized gain (loss) on investment in bitcoin sold for redemptions — ( 24,202 ) Change in unrealized appreciation (depreciation) on investment in bitcoin — 250,421 Ending balance as of June 30, 2024* 37,528.2763 $ 2,249,899 * No comparative period presented as the Trust commenced operations on January 10, 2024. |
Related Party Transactions and
Related Party Transactions and Agreements | 6 Months Ended |
Jun. 30, 2024 | |
Related Party Transactions [Abstract] | |
Related Party Transactions and Agreements | 4. Related Party Transactions and Agreements Fees, Expenses and Realized Gain (Loss) The Trust pays the unitary management fee of 0.20 % per annum of the Trust’s bitcoin holdings (the “Sponsor Fee”) . For the six-month period commencing on January 11, 2024 , the Sponsor waived the entire Sponsor Fee on the first $ 1 billion of Trust assets through July 10, 2024. The Sponsor Fee is paid by the Trust to the Sponsor as compensation for services performed under the Trust Agreement and Sponsor Agreement. Except during periods when all or a portion of the Sponsor Fee is being waived, the Sponsor Fee will accrue daily and will be payable in bitcoin monthly in arrears. The Administrator calculates the Sponsor Fee on a daily basis by applying a 0.20 % annualized rate to the Trust’s total bitcoin holdings, and the amount of bitcoin payable in respect of each daily accrual shall be determined by reference to the BRRNY. The NAV of the Trust is reduced each day by the amount of the Sponsor Fee calculated each day. On the last day of each month, an amount of bitcoin will be transferred from the Trust Bitcoin Account to the Sponsor Bitcoin Account equal to the sum of all daily Sponsor Fees accrued for the month in U.S. dollars divided by the BRRNY on the last day of the month. The Trust is not responsible for paying any fees or costs associated with the transfer of bitcoin to the Sponsor. In exchange for the Sponsor Fee, the Sponsor has agreed to assume and pay the normal operating expenses of the Trust, which include the Trustee’s monthly fee and out-of-pocket expenses, the fees of the Trust’s regular service providers (Cash Custodian, Bitcoin Custodian, Prime Execution Agent, Marketing Agent, Transfer Agent and Administrator), Exchange listing fees, tax reporting fees, SEC registration fees, printing and mailing costs, audit fees and up to $ 500,000 per annum in ordinary legal fees and expenses. The Sponsor may determine in its sole discretion to assume legal fees and expenses of the Trust in excess of the $ 500,000 per annum. The Sponsor also agreed to pay the costs of the Trust’s organization. The Trust may incur certain extraordinary, non-recurring expenses that are not assumed by the Sponsor, including but not limited to, taxes and governmental charges, any applicable brokerage commissions, financing fees, Bitcoin network fees and similar transaction fees, expenses and costs of any extraordinary services performed by the Sponsor (or any other service provider) on behalf of the Trust to protect the Trust or the Shareholders (including, for example, in connection with any fork of the Bitcoin blockchain, any Incidental Rights and any IR Asset, any indemnification of the Cash Custodian, Bitcoin Custodian, Prime Execution Agent, Transfer Agent, Administrator or other agents, service providers or counterparties of the Trust, and extraordinary legal fees and expenses, including any legal fees and expenses incurred in connection with litigation, regulatory enforcement or investigation matters. See Note 1 for further discussion on related party capital transactions. As of June 30, 2024, the Sponsor owned no Shares of the Trust. |
Creation and Redemption of Shar
Creation and Redemption of Shares | 6 Months Ended |
Jun. 30, 2024 | |
Equity [Abstract] | |
Creation and Redemption of Shares | 5. Creation and Redemption of Shares When the Trust creates or redeems its Shares, it does so only in Baskets (blocks of 10,000 Shares) based on the quantity of bitcoin attributable to each Share of the Trust (net of accrued but unpaid expenses and liabilities) multiplied by the number of Shares comprising a Basket ( 10,000 ). This is called the “Basket Amount.” The Transfer Agent will facilitate the settlement of Shares in response to the placement of creation orders and redemption orders from Authorized Participants. The Trust has entered into the Cash Custody Agreement with BNY Mellon under which BNY Mellon acts as custodian of the Trust’s cash and cash equivalents. The Trust only creates or redeems its Shares at NAV. Authorized Participants are the only persons that may place orders to create and redeem Baskets. Authorized Participants must be (1) registered broker-dealers or other securities market participants, such as banks and other financial institutions, that are not required to register as broker-dealers to engage in securities transactions described below, and (2) DTC Participants. To become an Authorized Participant, a person must enter into an Authorized Participant Agreement. The Authorized Participant Agreement provides the procedures for the creation and redemption of Baskets and for the delivery of the cash or Shares required for such creation and redemptions. The Authorized Participant Agreement and the related procedures attached thereto may be amended by the Trust, without the consent of any Shareholder or Authorized Participant. Authorized Participants must pay the Transfer Agent a non-refundable fee for each order they place to create or redeem one or more Baskets. The transaction fee may be waived, reduced, increased or otherwise changed by the Sponsor in its sole discretion. Authorized Participants who make deposits with the Trust in exchange for Baskets receive no fees, commissions or other form of compensation or inducement of any kind from either the Trust or the Sponsor, and no such person will have any obligation responsibility to the Sponsor or the Trust to effect any sale or resale of Shares. Each Authorized Participant is required to be registered as a broker-dealer under the Exchange Act and a member in good standing with FINRA, or exempt from being or otherwise not required to be licensed as a broker-dealer or a member of FINRA, and will be qualified to act as a broker or dealer in the states or other jurisdictions where the nature of its business so requires. Certain Authorized Participants may also be regulated under federal and state banking laws and regulations. Each Authorized Participant has its own set of rules and procedures, internal controls and information barriers as it determines is appropriate in light of its own regulatory regime. |
Concentration of Risk
Concentration of Risk | 6 Months Ended |
Jun. 30, 2024 | |
Risks and Uncertainties [Abstract] | |
Concentration of Risk | 6. Concentration of Risk Substantially all the Trust’s assets are holdings of bitcoin, which creates a concentration risk associated with fluctuations in the price of bitcoin. Accordingly, a decline in the price of bitcoin will have an adverse effect on the value of the Shares of the Trust. The trading prices of bitcoin have experienced extreme volatility in recent periods and may continue to fluctuate significantly. Extreme volatility in the future, including substantial, sustained, or rapid declines in the trading prices of bitcoin, could have a material adverse effect on the value of the Shares and the Shares could lose all or substantially all of their value. Factors adversely impacting the value of bitcoin and the Shares may include an increase in the global bitcoin supply or a decrease in global bitcoin demand; market conditions of, and overall sentiment towards, the crypto assets and blockchain technology industry; trading activity on crypto asset exchanges, which, in many cases, are largely unregulated or may be subject to manipulation; the adoption of bitcoin as a medium of exchange, store-of-value or other consumptive asset and the maintenance and development of the open-source software protocol of the bitcoin network, and their ability to meet user demands; manipulative trading activity on crypto asset exchanges, which, in many cases, are largely unregulated; and forks in the bitcoin network, among other things. Coinbase Custody Trust Company, LLC (the “Custodian”) serves as the Trust’s Custodian for bitcoin for which qualified custody is available. The Custodian is subject to change in the sole discretion of the Sponsor. At June 30, 2024, bitcoin of approximately $ 2,249,899,349 was held by the Custodian. No comparative period presented as the Trust commenced operations on January 10, 2024. |
Financial Highlights
Financial Highlights | 6 Months Ended |
Jun. 30, 2024 | |
Investment Company, Financial Highlights [Abstract] | |
Financial Highlights | 7. Financial Highlights* Per Share Performance (for a Share outstanding throughout the periods presented) Three months ended June 30, 2024 For the period January 10, 2024 (commencement of operations) through June 30, 2024* Net asset value per Share, beginning of period $ 38.62 $ 25.00 Net investment loss 1 ( 0.01 ) ( 0.02 ) Net realized unrealized gain (loss) 2 ( 5.94 ) 7.69 Net change in net assets from operations ( 5.95 ) 7.67 Net asset value per Share, end of period $ 32.67 $ 32.67 Total return, at net asset value 2 ( 15.41 ) % 30.68 % Ratios to average net assets 3 Net investment loss ( 0.11 ) % ( 0.10 ) % Gross expenses 0.20 % 0.20 % Net expenses 0.11 % 0.10 % * No comparative financial statements have been presented as the Trust's operations commenced on January 10, 2024. 1. Calculated using average Shares outstanding. 2. Total returns are calculated based on the change in value during the period. An individual shareholder’s total return and ratio may vary from the above total returns and ratios based on the timing of share transactions from the Trust. 3. Annualized. |
Recently Issued Accounting Pron
Recently Issued Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2024 | |
Accounting Changes and Error Corrections [Abstract] | |
Recently Issued Accounting Pronouncements | 8. Recently Issued Accounting Pronouncements In December 2023, the FASB issued Accounting Standards Update (“ASU”) 2023-08, Intangibles—Goodwill and Other—Crypto Assets (Subtopic 350-60): Accounting for and Disclosure of Crypto Assets (“ASU 2023-08”). ASU 2023-08 is intended to improve the accounting for certain crypto assets by requiring an entity to measure those crypto assets at fair value each reporting period with changes in fair value recognized in net income. The amendments also improve the information provided to investors about an entity’s crypto asset holdings by requiring disclosure about significant holdings, contractual sale restrictions, and changes during the reporting period. ASU 2023-08 is effective for annual and interim reporting periods beginning after December 15, 2024. Early adoption is permitted for both interim and annual financial statements that have not yet been issued. The Trust adopted this new guidance with no material impact on its financial statements and disclosures as the Trust uses fair value as its method of accounting for Bitcoin in accordance with its classification as an investment company for accounting purposes. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2024 | |
Subsequent Events [Abstract] | |
Subsequent Events | 9. Subsequent Events In preparing this financial statement, the Sponsor has evaluated events and transactions for potential recognition or disclosure through the date this financial statement was available to be issued. Management has determined that there were no additional material events that would require disclosure other than that which has already been discussed in these Notes to Financial Statements. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Basis of presentation | Basis of presentation The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). The Trust is an investment company and follows the specialized accounting and reporting guidance in the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC” or “Codification”) Topic 946, Financial Services—Investment Companies. |
Use of Estimates | Use of Estimates The preparation of the financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of these financial statements. Actual results could differ from those estimates. |
Indemnifications | Indemnifications In the normal course of business, the Trust enters into contracts and agreements that contain a variety of representations and warranties and which provide general indemnifications. The Trust’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Trust that have not yet occurred. The Trust expects the risk of any future obligation under these indemnifications to be remote. |
Cash | Cash Generally, the Trust does not intend to hold any cash. Cash includes non-interest bearing non-restricted cash with one institution. Cash in a bank deposit account, at times, may exceed U.S. federally insured limits. The Trust has not experienced any losses in such accounts and does not believe it is exposed to any significant credit risk on such bank deposits. On December 31, 2023, the Trust held $ 200 in cash relating to the initial seed capital shares. |
Investment Transactions and Revenue Recognition | Investment Transactions and Revenue Recognition The Trust records its investment transactions on a trade date basis and changes in fair value are reflected as net change in unrealized appreciation or depreciation on investment in bitcoin. Realized gains and losses are calculated using the specific identification method. Realized gains and losses are recognized in connection with transactions including settling obligations for the Sponsor Fee in bitcoin. |
Investment Valuation - Principal Market NAV | Investment Valuation - Principal Market NAV U.S. GAAP defines fair value as the price the Trust would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. The Trust’s policy is to value investments held at fair value. For financial statement reporting, the Trust identifies and determines the bitcoin principal market (or in the absence of a principal market, the most advantageous market) for U.S. GAAP purposes consistent with the application of the fair value measurement framework in FASB ASC Topic 820. A principal market is the market with the greatest volume and activity level for the asset or liability. The Principal Market NAV and the Principal Market NAV per Share are calculated using the fair value of bitcoin based on the price provided by this exchange market, as of 4:00 p.m. ET on the measurement date for U.S. GAAP purposes. The Trust determines its principal market (or in the absence of a principal market the most advantageous market) on a quarterly basis to determine which market is its Principal Market for the purpose of calculating fair value for the creation of quarterly and annual financial statements. Specifically, the Trust utilizes a third-party valuation vendor, Lukka, Inc., to identify publicly available, well established and reputable Crypto Asset exchanges selected by Lukka, Inc. in their sole discretion, including Binance, Bitfinex, Bitflyer, Bitstamp, Coinbase Pro, Crypto.com, Gemini, HitBTC, Huobi, Kraken, KuCoin, OKEx, Poloniex, and then calculating, on each valuation period, the highest volume exchange during the 60 minutes prior to 4:00 p.m. ET for bitcoin. In evaluating the markets that could be considered principal markets, the Trust considered whether the specific markets were accessible to the Trust, either directly or through an intermediary, at the end of each period. The Principal Market and the Principal Market Price for bitcoin that comprised the majority of the Trust’s assets for the three-month period ended June 30, 2024 was Coinbase with a price of $ 59,952.11 . Various inputs are used in determining the fair value of assets and liabilities. Inputs may be based on independent market data (“observable inputs”) or they may be internally developed (“unobservable inputs”). These inputs are categorized into a disclosure hierarchy consisting of three broad levels for financial reporting purposes. The level of a value determined for an asset or liability within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement in its entirety. The three levels of the fair value hierarchy are as follows: Level 1: Unadjusted quoted prices in active markets for identical assets or liabilities; Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability either directly or indirectly, including quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not considered to be active, inputs other than quoted prices that are observable for the asset or liability, and inputs that are derived principally from or corroborated by observable market data by correlation or other means; and Level 3: Unobservable inputs, including the Trust's assumptions used in determining the fair value of investments, where there is little or no market activity for the asset or liability at the measurement date. The cost basis of the investment in bitcoin recorded by the Trust for financial reporting purposes is the fair value of bitcoin at the time of transfer. The cost basis recorded by the Trust may differ from proceeds collected by the Authorized Participant from the sale of the corresponding Shares to investors. Given that bitcoins are actively traded and valuation adjustments are not applied, they are categorized in Level 1 of the fair value hierarchy. The following summarizes the Trust’s assets accounted for at fair value at June 30, 2024* (amounts in thousands): Level 1 Level 2 Level 3 Total Assets Investment in bitcoin, at fair value $ 2,249,899 $ — $ — $ 2,249,899 * No comparative period presented as the Trust commenced operations on January 10, 2024. Calculation of Net Asset Value (NAV) and NAV per Share On each business day, as soon as practicable after 4:00 p.m. ET , the net asset value of the Trust is obtained by subtracting all accrued fees and other liabilities of the Trust from the fair value of the bitcoin and other assets held by the Trust. The Bank of New York Mellon (the “Administrator”) computes the net asset value per Share by dividing the net asset value of the Trust by the number of Shares outstanding on the date the computation is made. |
Income Taxes | Income Taxes The Trust is classified as a “grantor trust” for U.S. federal income tax purposes. As a result, the Trust itself is not subject to U.S. federal income tax. Instead, the Trust’s income and expenses “flow through” to the shareholders, and the Administrator reports the Trust’s income, gains, losses, and deductions to the Internal Revenue Service on that basis. The Sponsor has analyzed applicable tax laws and regulations and their application to the Trust, and does not believe that there are any uncertain tax positions that require recognition of a tax liability as of June 30, 2024. The Trust is required to determine whether its tax positions are more likely than not to be sustained on examination by the applicable taxing authority, based on the technical merits of the position. Tax positions not deemed to meet a more likely than not threshold would be recorded as a tax expense in the current year. As of June 30, 2024 and December 31, 2023, the Trust has determined that no provision for income taxes is required and no liability for unrecognized tax benefits has been recorded. The Trust does not expect that its assessment related to unrecognized tax benefits will materially change over the next 12 months. However, the Trust’s conclusions may be subject to review and adjustment at a later date based on factors including, but not limited to, the nexus of income among various tax jurisdictions; compliance with U.S. federal, U.S. state, and tax laws of jurisdictions in which the Trust operates in; and changes in the administrative practices and precedents of the relevant authorities. The Trust is required to analyze all open tax years. Open tax years are those years that are open for examination by the relevant income taxing authority. As of June 30, 2024, all tax years since inception remain open for examination. There were no examinations in progress at period end. |
Organizational and offering costs | Organizational and offering costs The costs of the Trust’s organization and the initial offering of the Shares will be borne directly by the Sponsor. The Trust will not be obligated to reimburse the Sponsor. |
Recently Issued Accounting Pronouncements | In December 2023, the FASB issued Accounting Standards Update (“ASU”) 2023-08, Intangibles—Goodwill and Other—Crypto Assets (Subtopic 350-60): Accounting for and Disclosure of Crypto Assets (“ASU 2023-08”). ASU 2023-08 is intended to improve the accounting for certain crypto assets by requiring an entity to measure those crypto assets at fair value each reporting period with changes in fair value recognized in net income. The amendments also improve the information provided to investors about an entity’s crypto asset holdings by requiring disclosure about significant holdings, contractual sale restrictions, and changes during the reporting period. ASU 2023-08 is effective for annual and interim reporting periods beginning after December 15, 2024. Early adoption is permitted for both interim and annual financial statements that have not yet been issued. The Trust adopted this new guidance with no material impact on its financial statements and disclosures as the Trust uses fair value as its method of accounting for Bitcoin in accordance with its classification as an investment company for accounting purposes. |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Summary of Trust's Assets Accounted at Fair Value | The following summarizes the Trust’s assets accounted for at fair value at June 30, 2024* (amounts in thousands): Level 1 Level 2 Level 3 Total Assets Investment in bitcoin, at fair value $ 2,249,899 $ — $ — $ 2,249,899 * No comparative period presented as the Trust commenced operations on January 10, 2024. |
Fair Value of Bitcoin (Tables)
Fair Value of Bitcoin (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
Schedule of Changes in Quantity of Bitcoin and Fair Value | The following represents the changes in quantity of bitcoin and the respective fair value on June 30, 2024*: Quantity of bitcoin Fair Value Beginning balance as of January 10, 2024 (commencement of operations) 0.0000 $ 0 Purchases 40,262.6503 2,195,061 Sales for the redemption of Shares ( 2,725.4216 ) ( 171,029 ) Bitcoin transferred for Sponsor Fee ( 8.9524 ) ( 586 ) Net realized gain (loss) on investment in bitcoin transferred to pay Sponsor Fee — 234 Net realized gain (loss) on investment in bitcoin sold for redemptions — ( 24,202 ) Change in unrealized appreciation (depreciation) on investment in bitcoin — 250,421 Ending balance as of June 30, 2024* 37,528.2763 $ 2,249,899 * No comparative period presented as the Trust commenced operations on January 10, 2024. |
Financial Highlights (Tables)
Financial Highlights (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Investment Company, Financial Highlights [Abstract] | |
Summary of Per Share Performance | Per Share Performance (for a Share outstanding throughout the periods presented) Three months ended June 30, 2024 For the period January 10, 2024 (commencement of operations) through June 30, 2024* Net asset value per Share, beginning of period $ 38.62 $ 25.00 Net investment loss 1 ( 0.01 ) ( 0.02 ) Net realized unrealized gain (loss) 2 ( 5.94 ) 7.69 Net change in net assets from operations ( 5.95 ) 7.67 Net asset value per Share, end of period $ 32.67 $ 32.67 Total return, at net asset value 2 ( 15.41 ) % 30.68 % Ratios to average net assets 3 Net investment loss ( 0.11 ) % ( 0.10 ) % Gross expenses 0.20 % 0.20 % Net expenses 0.11 % 0.10 % * No comparative financial statements have been presented as the Trust's operations commenced on January 10, 2024. 1. Calculated using average Shares outstanding. 2. Total returns are calculated based on the change in value during the period. An individual shareholder’s total return and ratio may vary from the above total returns and ratios based on the timing of share transactions from the Trust. 3. Annualized. |
Organization - Additional Infor
Organization - Additional Information (Details) | 6 Months Ended | |||||||||||
Jan. 11, 2024 shares | Jan. 10, 2024 USD ($) $ / shares shares | Jan. 09, 2024 USD ($) $ / shares shares | Jan. 05, 2024 USD ($) $ / shares shares | Nov. 09, 2023 USD ($) $ / shares shares | Jun. 30, 2024 USD ($) Trustee $ / shares shares | Mar. 31, 2024 $ / shares | Jan. 08, 2024 $ / shares | Dec. 31, 2023 $ / shares | [2],[3] | |||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||||||
Number of shares in cash-settled transactions in blocks at trust | shares | 10,000 | |||||||||||
Maximum sponsor fee for legal fees and expenses | $ | $ 500,000 | |||||||||||
Minimum number of trustee should available in trust | Trustee | 1 | |||||||||||
NAV per share | $ / shares | $ 25 | [1] | $ 32.67 | [1] | $ 38.62 | $ 50 | $ 50 | |||||
Purchase of shares, value | $ | $ 59,952,110 | |||||||||||
BIM | ||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||||||
Purchase price per share | $ / shares | $ 25 | $ 50 | ||||||||||
Shares redeemed | shares | 10,010 | |||||||||||
Shares redeemed, value | $ | $ 500,500 | |||||||||||
NAV per share | $ / shares | $ 25 | $ 50 | ||||||||||
Purchase of shares, value | $ | $ 2,500,000 | $ 500,500 | $ 500,500 | |||||||||
Shares issued | shares | 100,000 | 10,010 | 10,010 | |||||||||
Shares sold for cash | shares | 100,000 | |||||||||||
BAM | ||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||||||
Shares purchased | shares | 4 | |||||||||||
Purchase price per share | $ / shares | $ 50 | |||||||||||
Shares redeemed | shares | 4 | |||||||||||
Shares redeemed, value | $ | $ 200 | |||||||||||
Purchase of shares, value | $ | $ 200 | |||||||||||
[1] No comparative financial statements have been presented as the Trust's operations commenced on January 10, 2024. As of December 31, 2023, the Trust held initial seed capital amounting to $ 200 in cash. Prior to commencement of operations on January 10, 2024, Bitwise Asset Management, Inc. ("BAM"), the parent company of the Sponsor, redeemed the initial seed capital of 4 shares for $ 200 . |
Significant Accounting Polici_4
Significant Accounting Policies - Additional Information (Details) - USD ($) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2024 | Dec. 31, 2023 | ||
Accounting Policies [Abstract] | |||
Cash | $ 0 | $ 200 | [1],[2] |
Provision for income taxes | 0 | 0 | |
Unrecognized tax benefits | 0 | $ 0 | |
Number of initial shares of the trust | $ 59,952,110 | ||
[1] Amount represents less than $ 500 . As of December 31, 2023, the Trust held initial seed capital amounting to $ 200 in cash. |
Significant Accounting Polici_5
Significant Accounting Policies - Summary of Trust's Assets Accounted at Fair Value (Details) - USD ($) | Jun. 30, 2024 | Jan. 09, 2024 | Dec. 31, 2023 | [2] | |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||||
Investments in Crypto Assets, at fair value | $ 2,249,899,000 | [1] | $ 0 | $ 0 | |
Level 1 | Investments in Crypto Assets, at Fair Value | |||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||||
Assets | 2,249,899 | ||||
Level 2 | Investments in Crypto Assets, at Fair Value | |||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||||
Assets | 0 | ||||
Level 3 | Investments in Crypto Assets, at Fair Value | |||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||||
Assets | $ 0 | ||||
[1] No comparative period presented as the Trust commenced operations on January 10, 2024. As of December 31, 2023, the Trust held initial seed capital amounting to $ 200 in cash. |
Fair Value of Bitcoin - Additio
Fair Value of Bitcoin - Additional Information (Details) | 6 Months Ended | |
Jun. 30, 2024 USD ($) Bitcoin $ / shares | Jan. 09, 2024 Bitcoin | |
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Trust held net closing balance of bitcoin | Bitcoin | 37,528.2763 | 0 |
CME CF Bitcoin | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Fair value of bitcoins acquired | $ | $ 2,264,087,289 | |
Bitcoin index price per share | $ / shares | $ 60,330.17 | |
Lukka Prime Rate | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Fair value of bitcoins acquired | $ | $ 2,249,899,349 | |
Bitcoin index price per share | $ / shares | $ 59,952.11 |
Fair Value of Bitcoin - Schedul
Fair Value of Bitcoin - Schedule of Changes in Quantity of Bitcoin and Fair Value (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 USD ($) Bitcoin | Jun. 30, 2024 USD ($) Bitcoin | |||
Fair Value Disclosures [Abstract] | ||||
Beginning balance as of January 10, 2024 (commencement of operations) | Bitcoin | 0 | |||
Purchases | Bitcoin | 40,262.6503 | |||
Sales for the redemption of Shares | Bitcoin | (2,725.4216) | |||
Bitcoin transferred for Sponsor Fee | Bitcoin | (8.9524) | |||
Ending balance as of June 30, 2024 | Bitcoin | 37,528.2763 | 37,528.2763 | ||
Beginning balance as of January 10, 2024 (commencement of operations) | $ 0 | |||
Purchases | 2,195,061 | |||
Sales for the redemption of Shares | (171,029) | |||
Bitcoin transferred for Sponsor Fee | (586) | |||
Net realized gain (loss) on investment in bitcoin transferred to pay Sponsor Fee | $ 228 | 234 | [1] | |
Net realized gain (loss) on investment in bitcoin sold for redemptions | (24,202) | (24,202) | [1] | |
Change in unrealized appreciation (depreciation) on investment in bitcoin | (374,561) | 250,421 | [1] | |
Ending balance as of June 30, 2024 | [2] | $ 2,249,899 | $ 2,249,899 | |
[1] No comparative financial statements have been provided as the Trust’s operations commenced on January 10, 2024. No comparative period presented as the Trust commenced operations on January 10, 2024. |
Related Party Transactions an_2
Related Party Transactions and Agreements - Additional Information (Details) | 6 Months Ended |
Jun. 30, 2024 USD ($) | |
Related Party Transaction [Line Items] | |
Sponsor fee percentage | 0.20% |
Trust assets | $ 1,000,000,000 |
Commenced period | 6 months |
Commenced date | Jan. 11, 2024 |
Maximum sponsor fee for legal fees and expenses | $ 500,000 |
Creation and Redemption of Sh_2
Creation and Redemption of Shares - Additional Information (Details) | 6 Months Ended |
Jun. 30, 2024 shares | |
Equity [Abstract] | |
Number of shares in block issued | 10,000 |
Concentration of Risk - Additio
Concentration of Risk - Additional Information (Details) | 6 Months Ended |
Jun. 30, 2024 USD ($) | |
Coinbase Custody Trust Company, LLC | |
Concentration Risk [Line Items] | |
Fair value of bitcoins acquired | $ 2,249,899,349 |
Financial Highlights - Summary
Financial Highlights - Summary of Per Share Performance (Details) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2024 | |||
Investment Company, Financial Highlights [Abstract] | ||||
Net asset value per Share, beginning of period | $ 38.62 | $ 25 | [1] | |
Investment Income (Loss) from Operation: | ||||
Net investment loss | [2] | (0.01) | (0.02) | [1] |
Net realized unrealized gain (loss) | [3] | (5.94) | 7.69 | [1] |
Net change in net assets from operations | (5.95) | 7.67 | [1] | |
Net asset value per Share, end of period | [1] | $ 32.67 | $ 32.67 | |
Total return, at net asset value | [3] | (15.41%) | 30.68% | [1] |
Ratios to average net assets: | ||||
Net investment loss | [4] | (0.11%) | (0.10%) | [1] |
Gross expenses | [4] | 0.20% | 0.20% | [1] |
Net expenses | [4] | 0.11% | 0.10% | [1] |
[1] No comparative financial statements have been presented as the Trust's operations commenced on January 10, 2024. Calculated using average Shares outstanding. Total returns are calculated based on the change in value during the period. An individual shareholder’s total return and ratio may vary from the above total returns and ratios based on the timing of share transactions from the Trust. Annualized. |