Document and Entity Information
Document and Entity Information | 6 Months Ended |
Jun. 30, 2024 shares | |
Cover [Abstract] | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Period End Date | Jun. 30, 2024 |
Document Fiscal Year Focus | 2024 |
Document Fiscal Period Focus | Q2 |
Current Fiscal Year End Date | --12-31 |
Document Transition Report | false |
Entity File Number | 001-41913 |
Entity Registrant Name | Invesco Galaxy Bitcoin ETF |
Amendment Flag | false |
Entity Central Index Key | 0001855781 |
Entity Incorporation, State or Country Code | DE |
Entity Tax Identification Number | 88-6155978 |
Entity Address, Address Line One | c/o Invesco Capital Management LLC |
Entity Address, Address Line Two | 3500 Lacey Road, Suite 700 |
Entity Address, City or Town | Downers Grove |
Entity Address, State or Province | IL |
Entity Address, Postal Zip Code | 60515 |
City Area Code | 800 |
Local Phone Number | 983-0903 |
Title of 12(b) Security | Common Shares of Beneficial Interest |
Trading Symbol | BTCO |
Security Exchange Name | CboeBZX |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Non-accelerated Filer |
Entity Small Business | true |
Entity Emerging Growth Company | true |
Entity Ex Transition Period | true |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding | 6,945,000 |
Statements of Financial Conditi
Statements of Financial Condition - USD ($) | Jun. 30, 2024 | Dec. 31, 2023 | |
Assets | |||
Investments in Bitcoin, at value (cost $332,467,057 as of June 30, 2024) | $ 435,244,053 | $ 0 | |
Cash held by custodian | 100,000 | ||
Total Assets | 435,244,053 | 100,000 | |
Payable for: | |||
Commitments and Contingencies (Note 9) | |||
Net Assets | 435,244,053 | 100,000 | |
Net assets consist of: | |||
Paid-in-capital | 298,409,051 | 100,000 | |
Distributable earnings (loss) | 136,835,002 | ||
Net Assets | $ 435,244,053 | $ 100,000 | |
Shares outstanding | 6,945,000 | 4,000 | |
Net asset value per share | $ 62.67 | [1] | $ 25 |
Market value per share | $ 59.94 | [2] | $ 25 |
[1] For financial reporting purposes, the Trust values transactions based upon the end of reporting period price in the market. Accordingly, the investment valuations in these financial statements may differ from those used in the calculation of certain of the Trust’s final creation and redemption NAVs. The mean between the last bid and ask prices. |
Statements of Financial Condi_2
Statements of Financial Condition (Parenthetical) | Jun. 30, 2024 USD ($) |
Statement of Financial Position [Abstract] | |
Investment in bitcoin | $ 332,467,057 |
Schedule of Investments
Schedule of Investments | Jun. 30, 2024 USD ($) Cryptocurrency |
Schedule of Investments [Line Items] | |
Quantity | Cryptocurrency | 6,945 |
Cost | $ 332,467,057 |
Fair Value | $ 435,244,053 |
% of Net Assets | 100% |
Other Assets Less Liabilities [Member] | |
Schedule of Investments [Line Items] | |
Fair Value | $ 0 |
% of Net Assets | 0% |
Net Assets [Member] | |
Schedule of Investments [Line Items] | |
Fair Value | $ 435,244,053 |
% of Net Assets | 100% |
Bitcoins [Member] | |
Schedule of Investments [Line Items] | |
Quantity | Cryptocurrency | 6,945 |
Cost | $ 332,467,057 |
Fair Value | $ 435,244,053 |
% of Net Assets | 100% |
Statement of Income and Expense
Statement of Income and Expenses - USD ($) | 3 Months Ended | 6 Months Ended |
Jun. 30, 2024 | Jun. 30, 2024 | |
Income | ||
Total Income | $ 0 | $ 0 |
Expenses | ||
Sponsor Fees | 271,217 | 452,718 |
Total Expenses | 271,217 | 452,718 |
Less: Waivers | (271,217) | (452,718) |
Net Expenses | 0 | 0 |
Net Investment Income (Loss) | 0 | 0 |
Investment Company Realized and Net Change in Unrealized Gain (Loss) [Abstract] | ||
Net Realized Gain (Loss) on Investments in Bitcoin | (3,068,108) | 33,958,006 |
Net Change in Unrealized Gain (Loss) on Investments in Bitcoin | (46,013,857) | 102,776,996 |
Net Realized and Net Change in Unrealized Gain (Loss) on Investments in Bitcoin | (49,081,965) | 136,735,002 |
Net Income (Loss) | $ (49,081,965) | $ 136,735,002 |
Statement of Changes in Shareho
Statement of Changes in Shareholder's Equity - USD ($) | Total | Shares [Member] |
Beginning Balance (in shares) at Dec. 31, 2023 | 4,000 | |
Beginning Balance at Dec. 31, 2023 | $ 100,000 | |
Purchases of Shares (in shares) | 11,705,000 | |
Purchases of Shares | $ 564,002,145 | |
Redemption of Shares (in shares) | (4,764,000) | |
Redemption of Shares | $ (265,593,094) | |
Net Increase (Decrease) due to Share Transactions (in shares) | 6,941,000 | |
Net Increase (Decrease) due to Share Transactions | $ 298,409,051 | |
Net Realized Gain (Loss) on Investments in Bitcoin | 33,958,006 | |
Net Change in Unrealized Gain (Loss) on Investments in Bitcoin | 102,776,996 | |
Net Income (Loss) | $ 136,735,002 | $ 136,735,002 |
Net Change in Shareholders' Equity (in shares) | 6,941,000 | |
Net Change in Shareholders' Equity | $ 435,144,053 | |
Ending Balance (in shares) at Jun. 30, 2024 | 6,945,000 | |
Ending Balance at Jun. 30, 2024 | $ 435,244,053 | |
Beginning Balance (in shares) at Mar. 31, 2024 | 5,905,000 | |
Beginning Balance at Mar. 31, 2024 | $ 418,315,928 | |
Purchases of Shares (in shares) | 1,630,000 | |
Purchases of Shares | $ 104,538,465 | |
Redemption of Shares (in shares) | (590,000) | |
Redemption of Shares | $ (38,528,375) | |
Net Increase (Decrease) due to Share Transactions (in shares) | 1,040,000 | |
Net Increase (Decrease) due to Share Transactions | $ 66,010,090 | |
Net Realized Gain (Loss) on Investments in Bitcoin | (3,068,108) | |
Net Change in Unrealized Gain (Loss) on Investments in Bitcoin | (46,013,857) | |
Net Income (Loss) | $ (49,081,965) | $ (49,081,965) |
Net Change in Shareholders' Equity (in shares) | 1,040,000 | |
Net Change in Shareholders' Equity | $ 16,928,125 | |
Ending Balance (in shares) at Jun. 30, 2024 | 6,945,000 | |
Ending Balance at Jun. 30, 2024 | $ 435,244,053 |
Statement of Cash Flows
Statement of Cash Flows - USD ($) | 3 Months Ended | 6 Months Ended |
Jun. 30, 2024 | Jun. 30, 2024 | |
Cash flows from operating activities: | ||
Net Income (Loss) | $ (49,081,965) | $ 136,735,002 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
Cost of bitcoin purchased | (509,716,398) | |
Proceeds from bitcoin sold | 211,207,347 | |
Net Realized Gain (Loss) on Investments in Bitcoin | 3,068,108 | (33,958,006) |
Net Change in Unrealized Gain (Loss) on Investments in Bitcoin | 46,013,857 | (102,776,996) |
Net cash provided by (used in) operating activities | (298,509,051) | |
Cash flows from financing activities: | ||
Proceeds from purchases of Shares | 564,002,145 | |
Redemption of Shares | (265,593,094) | |
Net cash provided by (used in) financing activities | 298,409,051 | |
Net change in cash | (100,000) | |
Cash at beginning of period | 100,000 | |
Cash at end of period |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) | 3 Months Ended | 6 Months Ended |
Jun. 30, 2024 | Jun. 30, 2024 | |
Pay vs Performance Disclosure | ||
Net Income (Loss) | $ (49,081,965) | $ 136,735,002 |
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 | 6 Months Ended |
Jun. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | Note 1 – Organization Invesco Galaxy Bitcoin ETF (the “Trust”) is a Delaware statutory trust, formed on April 5, 2021 pursuant to the Delaware Statutory Trust Act (the “DSTA”). The Trust continuously issues common shares representing fractional undivided beneficial interest in and ownership of the Trust (“Shares”). The Trust operates pursuant to its Second Amended and Restated Declaration of Trust and Trust Agreement, dated as of January 5, 2024 (the “Trust Agreement”). Delaware Trust Company, a Delaware trust company, is the Delaware trustee of the Trust (the “Trustee”). The Trust is managed and controlled by Invesco Capital Management LLC (the “Sponsor”). The Trust offers Shares only to certain eligible financial institutions (“Authorized Participants”) in one or more blocks of 5,000 Shares (“Creation Baskets”) based on the quantity of bitcoin attributable to each Share of the Trust. The Trust has an unlimited number of shares authorized for issuance. On December 20, 2023, Invesco Ltd. (in such role, the “Seed Capital Investor”), subject to certain conditions, purchased 4,000 Shares in exchange for $ 100,000 , which comprised the initial purchase of the Trust’s Shares (“Initial Seed Shares”). Through December 31, 2023, the Trust had no operations other than those related to its organization and registration and the sale of Shares to the Seed Capital Investor. As of December 31, 2023, the Seed Capital Investor owned one hundred percent of the outstanding Shares. On January 2, 2024, the Seed Capital Investor purchased an additional 200,000 Shares at a per-Share price of $ 25.00 (“Seed Creation Baskets”). Total proceeds to the Trust from the sale of the Initial Seed Shares and the Seed Creation Baskets were $ 5,100,000 . On January 4, 2024, the Sponsor redeemed the Initial Seed Shares and the Seed Creation Baskets for cash at a per-Share price of $ 25.00 for a total redemption value of $ 5,100,000 and immediately created 110,000 Shares ( 22 Creation Baskets) at a price of $ 44.16305 per Share based on the price of the Lukka Prime Bitcoin Reference Rate (the “Benchmark”) as of 4:00 p.m. ET on January 4, 2024. The Benchmark is designed to provide an estimated fair market value price for bitcoin, based on the execution price of bitcoin on its principal market. The price of the Shares acquired by the Seed Capital Investor was determined as described in the Prospectus. The Seed Capital Investor no longer held Shares as of June 30, 2024. Effective January 10, 2024, the Trust’s registration statement was declared effective by the U.S. Securities and Exchange Commission (the “SEC”). The Trust commenced trading on the Cboe BZX Exchange, Inc. (the “Exchange”) on January 11, 2024. The Trust’s investment objective is to reflect the performance of the spot price of bitcoin as measured using the Benchmark, less the Trust’s expenses and other liabilities. The Shares are intended to provide institutional and retail investors with a simple, cost-effective means of gaining investment benefits similar to those of holding bitcoin. In seeking to achieve its investment objective, the Trust will hold bitcoin. Coinbase Custody Trust Company, LLC (the “Bitcoin Custodian”) will hold all of the Trust’s bitcoin on the Trust’s behalf as bitcoin custodian. The Bank of New York Mellon (“BNYM”), the Trust’s “Administrator,” calculates, and the Sponsor publishes, the Trust’s Net Asset Value (“NAV”) once each business day. To calculate the NAV, the Administrator totals the current market value of bitcoin in the Trust and any other assets, and subtracts any liabilities including accrued but unpaid expenses. The Trust’s NAV is an amount denominated in U.S. dollars. This Quarterly Report (the “Report”) covers the three and six months ended June 30, 2024 . The accompanying unaudited financial statements were prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) for interim financial information and with the instructions for Form 10-Q and the rules and regulations of the SEC. In the opinion of management, all material adjustments, consisting only of normal recurring adjustments, considered necessary for a fair statement of the interim period financial statements have been made. Interim period results are not necessarily indicative of results for a full-year period. These financial statements and the notes thereto should be read in conjunction with the Trust’s financial statements included in its Annual Report on Form 10-K for the period ended December 31, 2023, as filed with the SEC on March 8, 2024. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 2 – Summary of Significant Accounting Policies A. Basis of Presentation The financial statements of the Trust have been prepared using U.S. GAAP. The Trust is considered an investment company under U.S. GAAP for financial statement purposes and follows the accounting and reporting guidance applicable to investment companies in the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946, Financial Services — Investment Companies , but is not registered, and is not required to be registered, under the Investment Company Act of 1940, as amended. B. Accounting Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements. Actual results could differ from those estimates. In addition, the Trust monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are issued. C. Investment Valuations The Trust applies FASB ASC Topic 820, Fair Value Measurement , in the valuation of bitcoin held by the Trust and for financial statement purposes. The fair market value price for bitcoin reflects the price that would be received for bitcoin in a current sale, which assumes an orderly transaction between market participants on the measurement date of bitcoin on its “principal market,” generally, 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 determines its principal market (or in the absence of a principal market the most advantageous market) on a periodic 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. Issuer-specific events, market trends, bid/asked quotes of brokers and information providers and other data may be reviewed in the course of making a good faith determination of a security’s fair value. D. Investment Transactions Bitcoin transactions are accounted for on a trade date basis. Realized gains or losses from the sale or disposition of bitcoin are determined on a specific identification basis and recognized in the Statements of Income and Expenses in the period in which the sale or disposition occurs, respectively. E. Routine Operational, Administrative and Other Ordinary Expenses The Sponsor is responsible for all routine operational, administrative and other ordinary expenses of the Trust, including, but not limited to, the Trustee’s fees, the fees of the BNYM (the Administrator and the “Transfer Agent”) (for its services as the Administrator, Transfer Agent, and Cash Custodian (defined herein)), the fees of the Bitcoin Custodian, the fees of Galaxy Digital Funds LLC (the “Execution Agent”), Exchange listing fees, SEC registration fees, printing and mailing costs, legal costs and audit fees. The Trust does not reimburse the Sponsor for the routine operational, administrative and other ordinary expenses of the Trust. Accordingly, such expenses are not reflected in the Statements of Income and Expense of the Trust. F. Non-Recurring Fees and Expenses In certain cases, the Trust will pay for some expenses in addition to the Sponsor Fee. These exceptions include expenses not assumed by the Sponsor (i.e., expenses other than those identified in Section E of this Note 2), litigation and indemnification expenses, judgments, transactional expenses, taxes and other expenses not expected to be incurred in the ordinary course of the Trust’s business. The only expenses of the Trust during the three and six months ended June 30, 2024 were the Sponsor Fee. G. Federal Income Taxes The Sponsor intends to take the position that the Trust is properly treated as a grantor trust for U.S. federal income tax purposes. Assuming that the Trust is a grantor trust, the Trust will not be subject to U.S. federal income tax and, therefore, no provision for federal income taxes is required. Rather, if the Trust is a grantor trust, each beneficial owner of Shares will be treated as directly owning its pro rata share of the Trust’s assets and a pro rata portion of the Trust’s income, gain, losses and deductions will “flow through” to each beneficial owner of Shares. H. Cash and Cash Equivalents The Trust defines cash as cash held by the Cash Custodian (as defined below). There were no cash equivalents held by the Trust as of June 30, 2024 and December 31, 2023. |
Concentration Risk
Concentration Risk | 6 Months Ended |
Jun. 30, 2024 | |
Risks and Uncertainties [Abstract] | |
Concentration Risk | Note 3 – Concentration Risk Unlike other funds that may invest in diversified assets, the Trust’s investment strategy is concentrated in a single asset: bitcoin. This concentration maximizes the degree of the Trust’s exposure to a variety of market risks associated with bitcoin, including the rise or fall in its price, sometimes rapidly or unexpectedly. By concentrating its investment strategy solely in bitcoin, any losses suffered as a result of a decrease in the value of bitcoin can be expected to reduce the value of an interest in the Trust proportionately and will not be offset by other gains if the Trust were to invest in underlying assets that were diversified. There is no assurance that bitcoin will maintain its long-term value in terms of purchasing power in the future. In the event that the price of bitcoin declines, the Sponsor expects the value of an investment in the Shares to decline proportionately. Each of these events could have a material effect on the Trust’s financial position and the results of its operations. |
Service Providers and Related P
Service Providers and Related Party Agreements | 6 Months Ended |
Jun. 30, 2024 | |
Related Party Transactions [Abstract] | |
Service Providers and Related Party Agreements | Note 4 – Service Providers and Related Party Agreements The Trustee Delaware Trust Company, a Delaware trust company, acts as the Trustee of the Trust as required to create a Delaware statutory trust in accordance with the Trust Agreement and the DSTA. Under the Trust Agreement, the duties of the Trustee are limited to (i) accepting legal process served on the Trust in the State of Delaware and (ii) at the direction of the Sponsor, the execution of any certificates required to be filed with the Secretary of State of the State of Delaware which the Trustee is required to execute under the DSTA. The Sponsor Invesco Capital Management LLC is the Sponsor of 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, the listing of Shares on the Exchange and valuing the bitcoin held by the Trust. The Sponsor is a limited liability company formed in the state of Delaware on February 7, 2003, and is a wholly-owned subsidiary of Invesco Ltd. Invesco Ltd. and its subsidiaries, including the Sponsor, are an independent global investment management group. The Trust will pay the Sponsor a unified fee (the “Sponsor Fee”) as compensation for services performed under the Trust Agreement. The Sponsor Fee will be accrued daily and paid monthly in arrears on the first day the Exchange is open for regular trading (a “Business Day”) of the month in U.S. dollars, and will be calculated by the Administrator. The Sponsor also paid the costs of the Trust’s organization. Effective as of January 29, 2024, the Sponsor Fee was 0.25 % per annum of the daily total net assets of the Trust. From January 9, 2024 until January 28, 2024, the Sponsor Fee was 0.39 % per annum. Prior to January 9, 2024, the Sponsor Fee was 0.59 % per annum. For a 6-month period commencing on the day the Trust’s Shares were initially listed on the Exchange (January 11, 2024), the Sponsor agreed to waive the entire Sponsor Fee on the first $ 5 billion of Trust assets. To cover the Sponsor Fee, and extraordinary expenses not assumed by the Sponsor, the Sponsor or its delegate will cause the Trust (or its delegate) to instruct the Execution Agent to convert bitcoin held by the Trust into U.S. dollars. The NAV of the Trust and the number of bitcoins represented by a Share will decline each time the Trust accrues the Sponsor Fee or any Trust expenses not assumed by the Sponsor. The Trust is not responsible for paying any costs associated with the transfer of bitcoin to or from the Trust in connection with paying the Sponsor Fee or in connection with creation and redemption transactions. The Sponsor waived fees of $ 271,217 and $ 452,718 for the three and six months ended June 30, 2024, respectively. The Administrator The BNYM serves as the Trust’s Administrator. Under the trust administration and accounting agreement, the Administrator provides necessary administrative, tax and accounting services and financial reporting for the maintenance and operations of the Trust, including calculating the NAV of the Trust and the net assets of the Trust. The Transfer Agent BNYM also serves as the Transfer Agent for the Trust. The Transfer Agent is responsible for (1) issuing and redeeming Shares, (2) responding to correspondence by Shareholders and others relating to its duties, (3) maintaining Shareholder accounts and (4) making periodic reports to the Trust. The Bitcoin Custodian Coinbase Custody Trust Company, LLC serves as the Trust’s Bitcoin Custodian. Under the custodial agreement, the Bitcoin Custodian is responsible for (1) safekeeping all of the bitcoin owned by the Trust, (2) opening an account that holds the Trust’s bitcoin and (3) facilitating the transfer of bitcoin required for the operation of the Trust, as directed by the Sponsor. The Bitcoin Custodian is chartered as a limited purpose trust company by the New York State Department of Financial Services (“NYSDFS”) and is authorized by the NYSDFS to provide digital asset custody services. The Bitcoin Custodian is a wholly-owned subsidiary of Coinbase Global, Inc. The Cash Custodian Under the Cash Custody Agreement, BNYM is responsible for holding the Trust’s cash in connection with creation and redemption transactions effected in cash (the “Cash Custodian”). The Cash Custodian is a New York state-chartered bank and a member of the Federal Reserve System. The Marketing Agent Invesco Distributors, Inc. (the “Marketing Agent”) is responsible for: (1) working with the Transfer Agent to review and approve, or reject, purchase and redemption orders of Creation Baskets placed by Authorized Participants with the Transfer Agent; and (2) reviewing and approving the marketing materials prepared by the Trust for compliance with applicable SEC and Financial Industry Regulatory Authority advertising laws, rules, and regulations. The Execution Agent The Sponsor has entered into an agreement with Galaxy Digital Funds LLC, a subsidiary of Galaxy Digital LP (“Galaxy”), to serve as Execution Agent. The Trust from time to time will be required to sell bitcoin in such quantities as necessary to permit payment of the Sponsor Fee and any Trust expenses and liabilities not assumed by the Sponsor. The Sponsor has engaged the Execution Agent to sell bitcoin on the Trust’s behalf in such circumstances. At the direction of the Trust, the Execution Agent will seek to sell bitcoin at approximately the price at which it is valued by the Trust and in the smallest amounts required to permit such payments as they become due, with the intention of minimizing the Trust’s holdings of assets other than bitcoin. Accordingly, the amount of bitcoin to be sold may vary from time to time depending on the level of the Trust’s expenses and liabilities and the market price of bitcoin. The Trust also may utilize the services of the Execution Agent to purchase or sell bitcoin in connection with cash creations and redemptions. In addition, as part of this agreement, the Execution Agent has agreed to co-brand and co-market the Trust, and the Sponsor has licensed the use of certain Galaxy trademarks, service marks and trade names in connection with the Trust. Galaxy is a subsidiary of Galaxy Digital Holdings LP (“Galaxy Holdings”). Galaxy Digital Holdings Ltd., which holds a limited partner interest in Galaxy Holdings, is listed on the Toronto Stock Exchange under the symbol “GLXY.” |
Organization and Offering Costs
Organization and Offering Costs | 6 Months Ended |
Jun. 30, 2024 | |
Organization and Offering Costs [Abstract] | |
Organization and Offering Costs | Note 5 – Organization and Offering Costs The Sponsor has agreed to pay the organizational and initial offering costs of the Trust and the Trust will not be obligated to reimburse the Sponsor. The organizational and initial offering costs include preparation and filing of incorporation documents, bylaws, declarations of trust, registration statements, board materials, state and federal registration of shares and audit fees. As a result, the Trust’s financial statements will not reflect these organizational and offering costs. |
Additional Valuation Informatio
Additional Valuation Information | 6 Months Ended |
Jun. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
Additional Valuation Information | Note 6 – Additional Valuation Information U.S. GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, under current market conditions. U.S. GAAP establishes a hierarchy that prioritizes the inputs to valuation methods, giving the highest priority to readily available unadjusted quoted prices in an active market for identical assets (Level 1) and the lowest priority to significant unobservable inputs (Level 3), generally when market prices are not readily available or are unreliable. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods or market conditions may result in transfers in or out of an investment’s assigned level: Level 1: Prices are determined using quoted prices in an active market for identical assets. Level 2: Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others. Level 3: Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Trust’s own assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information. As of June 30, 2024 , the investments in this Trust were valued based on Level 1 inputs. The levels assigned to the investment valuations may not be an indication of the risk or liquidity associated with investing in those investments. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments. |
Investments in Bitcoin
Investments in Bitcoin | 6 Months Ended |
Jun. 30, 2024 | |
Schedule of Investments [Abstract] | |
Investments in Bitcoin | Note 7 – Investments in Bitcoin The Trust expects to purchase or sell bitcoin in connection with cash creation or redemption transactions, and may sell bitcoin to pay certain expenses, including the Sponsor Fee. The following is a summary of the transactions in, and earnings from, investments in bitcoin for the three months ended June 30, 2024. Opening Balance as of 03/31/2024 Purchases at Cost Proceeds from Sales Change in Unrealized Appreciation (Depreciation) Realized Gain (Loss) Ending Balance as of 06/30/2024 $ 418,315,928 $ 104,538,465 $ ( 38,528,375 ) $ ( 46,013,857 ) $ ( 3,068,108 ) $ 435,244,053 The following is a summary of the transactions in, and earnings from, investments in bitcoin for the six months ended June 30, 2024 . |
Share Purchases and Redemptions
Share Purchases and Redemptions | 6 Months Ended |
Jun. 30, 2024 | |
Share Purchases and Redemptions [Abstract] | |
Share Purchases and Redemptions | Note 8 – Share Purchases and Redemptions The Trust will process all creations and redemptions of Shares in transactions with Authorized Participants. When the Trust issues or redeems its Shares, it will do so only in Creation Baskets based on the quantity of bitcoin attributable to each Share of the Trust (net of accrued but unpaid Sponsor fees and any accrued but unpaid expenses or liabilities). Creation and redemption transactions take place in cash, but in the future, pending regulatory approval, the Trust may permit or require creation and redemption transactions to take place in-kind. Authorized Participants are the only persons that may place orders to create and redeem Creation Baskets. Authorized Participants must be (1) registered broker-dealers or other securities market participants, such as banks or other financial institutions, that are not required to register as broker-dealers to engage in securities transactions as described below, and (2) participants in DTC such as banks, dealers and trust companies (“DTC Participants”). To become an Authorized Participant, a person must enter into an Authorized Participant Agreement. When purchasing Creation Baskets, Authorized Participants will deliver cash to the Cash Custodian. The Execution Agent will be responsible for acquiring the requisite amount of bitcoin on behalf of the Trust on an agency basis. After receipt of the bitcoin by the Bitcoin Custodian, the Transfer Agent will issue Creation Baskets of Shares to the creating Authorized Participant in satisfaction of the creation order. When redeeming Creation Baskets, the Execution Agent will be responsible for selling the requisite amount of bitcoin on behalf of the Trust on an agency basis. After receipt of the cash payment, the Transfer Agent will redeem the Shares and the Cash Custodian will distribute the resulting cash to the redeeming Authorized Participant in satisfaction of the redemption order. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 9 – Commitments and Contingencies The Sponsor, either in its own capacity or in its capacity as the Sponsor and on behalf of the Trust, has entered into various service agreements that contain a variety of representations, or provide indemnification provisions related to certain risks service providers undertake in performing services for the Trust. The Trust’s organizational documents provide for the Trust to indemnify the Sponsor and any affiliate of the Sponsor that provides services to the Trust to the maximum extent permitted by applicable law, subject to certain exceptions for disqualifying conduct by the Sponsor or such an affiliate. 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. Further, the Trust has not had prior claims or losses pursuant to these contracts. Accordingly, the Sponsor expects the risk of loss to be remote. |
Financial Highlights
Financial Highlights | 6 Months Ended |
Jun. 30, 2024 | |
Investment Company, Financial Highlights [Abstract] | |
Financial Highlights | Note 10 – Financial Highlights The Trust is presenting the following NAV and financial highlights related to investment performance for a Share outstanding for the three months ended June 30, 2024 and the period January 10, 2024 to June 30, 2024. An individual investor’s return and ratios may vary based on the timing of capital transactions. NAV per Share is the NAV of the Trust divided by the number of outstanding Shares at the date of each respective period presented. Three Months Ended June 30, 2024 For the Period January 10, 2024 (the effective date of the Trust's registration statement) to June 30, 2024 Net Asset Value Net asset value per Share, beginning of period $ 70.84 $ 46.65 Net realized and change in unrealized gain (loss) on investments in Bitcoin (a) ( 8.17 ) 16.02 Net investment income (loss) (b) — — Net income (loss) ( 8.17 ) 16.02 Net asset value per Share, end of period (c) $ 62.67 $ 62.67 Market value per Share, beginning of period (d) $ 70.98 $ 46.30 Market value per Share, end of period (d) $ 59.94 $ 59.94 Ratio to average Net Assets (e) Net investment income (loss) 0.00 % 0.00 % Expenses, after waivers 0.00 % 0.00 % Expenses, prior to waivers 0.25 % 0.27 % Total Return, at net asset value (f)(g) ( 11.54 )% 34.34 % Total Return, at market value (f)(g) ( 15.56 )% 29.46 % (a) Net realized and change in unrealized gain (loss) on Bitcoin per share may not correlate with the Trust's net realized and unrealized gain (loss) due to timing of shareholder transactions in relation to the fluctuating market values of the Trust's investments. (b) Based on average shares outstanding. (c) For financial reporting purposes, the Trust values transactions based upon the end of reporting period price in the market. Accordingly, the investment valuations in these financial statements may differ from those used in the calculation of certain of the Trust’s final creation and redemption NAVs. (d) The mean between the last bid and ask prices. (e) Annualized. (f) Total Return, at NAV is calculated assuming an initial investment made at the NAV at the beginning of the period, reinvestment of all dividends and distributions at NAV during the period, and redemption of Shares at NAV on the last day of the period. Total Return, at NAV includes adjustments in accordance with U.S. GAAP and as such, the NAV for financial reporting purposes and the returns based upon those NAVs may differ from the NAVs and returns for shareholder transactions. Total Return, at market value is calculated assuming an initial investment made at the market value at the beginning of the period, reinvestment of all dividends and distributions at market value during the period, and redemption of Shares at the market value on the last day of the period. Not annualized for periods less than one year, if applicable. (g) The net asset value total return from January 1, 2024 to June 30, 2024 was 150.68 %. The market price total return from January 1, 2024 to June 30, 2024 was 139.76 %. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2024 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 11 - Subsequent Events For the 6-month period commencing on the day the Trust’s shares were initially listed (January 11, 2024), the Sponsor had agreed to waive the entire Sponsor Fee on the first $ 5 billion of Trust assets. Effective July 11, 2024, this waiver expired, and the Sponsor is no longer waiving the entire Sponsor Fee. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Basis of Presentation | A. Basis of Presentation The financial statements of the Trust have been prepared using U.S. GAAP. The Trust is considered an investment company under U.S. GAAP for financial statement purposes and follows the accounting and reporting guidance applicable to investment companies in the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946, Financial Services — Investment Companies , but is not registered, and is not required to be registered, under the Investment Company Act of 1940, as amended. |
Accounting Estimates | B. Accounting Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements. Actual results could differ from those estimates. In addition, the Trust monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are issued. |
Investment Valuations | C. Investment Valuations The Trust applies FASB ASC Topic 820, Fair Value Measurement , in the valuation of bitcoin held by the Trust and for financial statement purposes. The fair market value price for bitcoin reflects the price that would be received for bitcoin in a current sale, which assumes an orderly transaction between market participants on the measurement date of bitcoin on its “principal market,” generally, 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 determines its principal market (or in the absence of a principal market the most advantageous market) on a periodic 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. Issuer-specific events, market trends, bid/asked quotes of brokers and information providers and other data may be reviewed in the course of making a good faith determination of a security’s fair value. |
Investment Transactions | D. Investment Transactions Bitcoin transactions are accounted for on a trade date basis. Realized gains or losses from the sale or disposition of bitcoin are determined on a specific identification basis and recognized in the Statements of Income and Expenses in the period in which the sale or disposition occurs, respectively. |
Routine Operational Administrative and Other Ordinary Expenses Policy | E. Routine Operational, Administrative and Other Ordinary Expenses The Sponsor is responsible for all routine operational, administrative and other ordinary expenses of the Trust, including, but not limited to, the Trustee’s fees, the fees of the BNYM (the Administrator and the “Transfer Agent”) (for its services as the Administrator, Transfer Agent, and Cash Custodian (defined herein)), the fees of the Bitcoin Custodian, the fees of Galaxy Digital Funds LLC (the “Execution Agent”), Exchange listing fees, SEC registration fees, printing and mailing costs, legal costs and audit fees. The Trust does not reimburse the Sponsor for the routine operational, administrative and other ordinary expenses of the Trust. Accordingly, such expenses are not reflected in the Statements of Income and Expense of the Trust. |
Non Recurring Fees and Expenses | F. Non-Recurring Fees and Expenses In certain cases, the Trust will pay for some expenses in addition to the Sponsor Fee. These exceptions include expenses not assumed by the Sponsor (i.e., expenses other than those identified in Section E of this Note 2), litigation and indemnification expenses, judgments, transactional expenses, taxes and other expenses not expected to be incurred in the ordinary course of the Trust’s business. The only expenses of the Trust during the three and six months ended June 30, 2024 were the Sponsor Fee. |
Federal Income Taxes | G. Federal Income Taxes The Sponsor intends to take the position that the Trust is properly treated as a grantor trust for U.S. federal income tax purposes. Assuming that the Trust is a grantor trust, the Trust will not be subject to U.S. federal income tax and, therefore, no provision for federal income taxes is required. Rather, if the Trust is a grantor trust, each beneficial owner of Shares will be treated as directly owning its pro rata share of the Trust’s assets and a pro rata portion of the Trust’s income, gain, losses and deductions will “flow through” to each beneficial owner of Shares. |
Cash and Cash Equivalents | H. Cash and Cash Equivalents The Trust defines cash as cash held by the Cash Custodian (as defined below). There were no cash equivalents held by the Trust as of June 30, 2024 and December 31, 2023. |
Investments in Bitcoin (Tables)
Investments in Bitcoin (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Schedule of Investments [Abstract] | |
Summary of Transactions and Earnings from Investments in Bitcoin | The following is a summary of the transactions in, and earnings from, investments in bitcoin for the three months ended June 30, 2024. Opening Balance as of 03/31/2024 Purchases at Cost Proceeds from Sales Change in Unrealized Appreciation (Depreciation) Realized Gain (Loss) Ending Balance as of 06/30/2024 $ 418,315,928 $ 104,538,465 $ ( 38,528,375 ) $ ( 46,013,857 ) $ ( 3,068,108 ) $ 435,244,053 The following is a summary of the transactions in, and earnings from, investments in bitcoin for the six months ended June 30, 2024 . Opening Balance as of 12/31/2023 Purchases at Cost Proceeds from Sales Change in Unrealized Appreciation (Depreciation) Realized Gain (Loss) Ending Balance as of 06/30/2024 $ — $ 509,716,398 $ ( 211,207,347 ) $ 102,776,996 $ 33,958,006 $ 435,244,053 |
Financial Highlights (Tables)
Financial Highlights (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Investment Company, Financial Highlights [Abstract] | |
Summary of Financial Highlights of NAV per Share | NAV per Share is the NAV of the Trust divided by the number of outstanding Shares at the date of each respective period presented. Three Months Ended June 30, 2024 For the Period January 10, 2024 (the effective date of the Trust's registration statement) to June 30, 2024 Net Asset Value Net asset value per Share, beginning of period $ 70.84 $ 46.65 Net realized and change in unrealized gain (loss) on investments in Bitcoin (a) ( 8.17 ) 16.02 Net investment income (loss) (b) — — Net income (loss) ( 8.17 ) 16.02 Net asset value per Share, end of period (c) $ 62.67 $ 62.67 Market value per Share, beginning of period (d) $ 70.98 $ 46.30 Market value per Share, end of period (d) $ 59.94 $ 59.94 Ratio to average Net Assets (e) Net investment income (loss) 0.00 % 0.00 % Expenses, after waivers 0.00 % 0.00 % Expenses, prior to waivers 0.25 % 0.27 % Total Return, at net asset value (f)(g) ( 11.54 )% 34.34 % Total Return, at market value (f)(g) ( 15.56 )% 29.46 % (a) Net realized and change in unrealized gain (loss) on Bitcoin per share may not correlate with the Trust's net realized and unrealized gain (loss) due to timing of shareholder transactions in relation to the fluctuating market values of the Trust's investments. (b) Based on average shares outstanding. (c) For financial reporting purposes, the Trust values transactions based upon the end of reporting period price in the market. Accordingly, the investment valuations in these financial statements may differ from those used in the calculation of certain of the Trust’s final creation and redemption NAVs. (d) The mean between the last bid and ask prices. (e) Annualized. (f) Total Return, at NAV is calculated assuming an initial investment made at the NAV at the beginning of the period, reinvestment of all dividends and distributions at NAV during the period, and redemption of Shares at NAV on the last day of the period. Total Return, at NAV includes adjustments in accordance with U.S. GAAP and as such, the NAV for financial reporting purposes and the returns based upon those NAVs may differ from the NAVs and returns for shareholder transactions. Total Return, at market value is calculated assuming an initial investment made at the market value at the beginning of the period, reinvestment of all dividends and distributions at market value during the period, and redemption of Shares at the market value on the last day of the period. Not annualized for periods less than one year, if applicable. (g) The net asset value total return from January 1, 2024 to June 30, 2024 was 150.68 %. The market price total return from January 1, 2024 to June 30, 2024 was 139.76 %. |
Organization - Additional Infor
Organization - Additional Information (Detail) | 6 Months Ended | |||
Jan. 04, 2024 USD ($) Creationbasket $ / shares shares | Jan. 02, 2024 USD ($) $ / shares shares | Dec. 20, 2023 USD ($) shares | Jun. 30, 2024 Creationbasket shares | |
Organization [Line Items] | ||||
Date of incorporation | Apr. 05, 2021 | |||
Minimum number of Creation Baskets that can be purchased | Creationbasket | 1 | |||
Number of shares issued per Creation Basket | 5,000 | |||
Redemption value | $ | $ 5,100,000 | |||
Number of creation baskets | Creationbasket | 22 | |||
Creation Baskets | ||||
Organization [Line Items] | ||||
Number of creation basket shares | 110,000 | |||
Creation Baskets | Bitcoins | ||||
Organization [Line Items] | ||||
Number of bitcoins, per share | $ / shares | $ 44.16305 | |||
Initial Seed Shares | ||||
Organization [Line Items] | ||||
Shares issued (in shares) | 4,000 | |||
Stock issued | $ | $ 100,000 | |||
Seed Creation Baskets | ||||
Organization [Line Items] | ||||
Shares issued (in shares) | 200,000 | |||
Share Price, Per Share | $ / shares | $ 25 | |||
Initial Seed Shares and the Seed Creation Baskets | ||||
Organization [Line Items] | ||||
Share Price, Per Share | $ / shares | $ 25 | |||
Proceeds from issuance of stock | $ | $ 5,100,000 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Additional Information) (Details) - USD ($) | Jun. 30, 2024 | Dec. 31, 2023 |
Accounting Policies [Abstract] | ||
Cash equivalents held by Trust | $ 0 | $ 0 |
Service Providers and Related_2
Service Providers and Related Party Agreements - Additional Information) (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
Jan. 08, 2024 | Jan. 29, 2024 | Jun. 30, 2024 | Jun. 30, 2024 | Jan. 11, 2024 | |
Related Party Transactions [Abstract] | |||||
Sponsor fee per annum on daily net assets | 0.25% | ||||
Sponsor's fee rate | 0.59% | 0.39% | |||
Initial value of the trust assets on the basis of which fees is determined | $ 5,000,000,000 | ||||
Sponsor waived fees | $ 271,217 | $ 452,718 |
Investments in Bitcoin - Summar
Investments in Bitcoin - Summary of Transactions and Earnings from Investments in Bitcoin (Detail) - USD ($) | 3 Months Ended | 6 Months Ended |
Jun. 30, 2024 | Jun. 30, 2024 | |
Schedule of Investments [Line Items] | ||
Opening Balance | $ 418,315,928 | $ 0 |
Purchases at Cost | 104,538,465 | 509,716,398 |
Proceeds from Sales | (38,528,375) | (211,207,347) |
Change in Unrealized Appreciation (Depreciation) | (46,013,857) | 102,776,996 |
Realized Gain (Loss) | (3,068,108) | 33,958,006 |
Ending Balance | $ 435,244,053 | $ 435,244,053 |
Financial Highlights - Summary
Financial Highlights - Summary of Financial Highlights of NAV per Share (Detail) - $ / shares | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2024 | ||
Investment Company, Financial Highlights [Roll Forward] | |||
Net asset value per Share, beginning of period | $ 70.84 | $ 46.65 | |
Net realized and change in unrealized gain (loss) on investments in Bitcoin | [1] | (8.17) | 16.02 |
Net investment income (loss) | [2] | 0 | 0 |
Net income (loss) | (8.17) | 16.02 | |
Net asset value per Share, end of period | [3] | 62.67 | 62.67 |
Market value per Share, beginning of period | [4] | 70.98 | 46.3 |
Market value per Share, end of period | [4] | $ 59.94 | $ 59.94 |
Ratio to average Net Assets | |||
Net investment income (loss) | [5] | 0% | 0% |
Expenses, after waivers | [5] | 0% | 0% |
Expenses, prior to waivers | [5] | 0.25% | 0.27% |
Total Return, at net asset value | [5],[6],[7] | (11.54%) | 34.34% |
Total Return, at market value | [5],[6],[7] | (15.56%) | 29.46% |
[1] Net realized and change in unrealized gain (loss) on Bitcoin per share may not correlate with the Trust's net realized and unrealized gain (loss) due to timing of shareholder transactions in relation to the fluctuating market values of the Trust's investments. Based on average shares outstanding. For financial reporting purposes, the Trust values transactions based upon the end of reporting period price in the market. Accordingly, the investment valuations in these financial statements may differ from those used in the calculation of certain of the Trust’s final creation and redemption NAVs. The mean between the last bid and ask prices. Annualized. The net asset value total return from January 1, 2024 to June 30, 2024 was 150.68 %. The market price total return from January 1, 2024 to June 30, 2024 was 139.76 %. Total Return, at NAV is calculated assuming an initial investment made at the NAV at the beginning of the period, reinvestment of all dividends and distributions at NAV during the period, and redemption of Shares at NAV on the last day of the period. Total Return, at NAV includes adjustments in accordance with U.S. GAAP and as such, the NAV for financial reporting purposes and the returns based upon those NAVs may differ from the NAVs and returns for shareholder transactions. Total Return, at market value is calculated assuming an initial investment made at the market value at the beginning of the period, reinvestment of all dividends and distributions at market value during the period, and redemption of Shares at the market value on the last day of the period. Not annualized for periods less than one year, if applicable. |
Financial Highlights - Summar_2
Financial Highlights - Summary of Financial Highlights of NAV per Share (Parenthetical) (Detail) | 6 Months Ended |
Jun. 30, 2024 | |
Investment Company, Financial Highlights [Abstract] | |
Net asset value total return percentage | 150.68% |
Market rate of return | 139.76% |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) $ in Billions | Jan. 11, 2024 USD ($) |
Subsequent Events [Abstract] | |
Sponsor fees agreed to waive | $ 5 |