| Organization and Significant Accounting Policies | Note 1 – Organization and Significant Accounting Policies These footnotes represent the footnotes
to Hashdex Bitcoin Futures ETF’s Statement of Assets and Liabilities and the Combined Financial Statements of Tidal Commodities
Trust I. Hashdex Bitcoin Futures ETF (the “Fund”)
is a series of Tidal Commodities Trust I (“Trust”), a Delaware statutory trust organized on February 10, 2023. The
Fund operates pursuant to the First Amended and Restated Declaration of Trust and Trust Agreement (“Trust Agreement”),
dated March 10, 2023. The Trust is registered with the U.S. Securities and Exchange Commission (“SEC”) under the Securities
Act of 1933, as amended (together with the rules and regulations adopted thereunder, as amended, the “1933 Act”), as
a exchange-traded fund. The Fund’s investment objective is
for changes in the shares’ net asset value (“NAV”) to reflect the daily changes of the price of the Hashdex U.S.
Bitcoin Futures Fund Benchmark (the “Benchmark”), less expenses from the Fund’s operations. The Benchmark currently
is the average of the closing settlement prices for the first to expire and second to expire bitcoin futures contracts (“Bitcoin
Futures Contracts”) listed on the Chicago Mercantile Exchange (“CME”). The Bitcoin Futures Contracts that at
any given time make up the Benchmark are referred to hereinafter as the “Benchmark Component Futures Contracts.” Under
normal market conditions, the Fund invests in Benchmark Component Futures Contracts and cash and cash equivalents. Because the
Fund’s investment objective is to track the price of the Benchmark by investing in Benchmark Futures Contracts rather than
bitcoin, changes in the price of the Shares will vary from changes in the spot price of bitcoin. These futures contracts are the
Benchmark Component Futures Contracts. The CME currently offers two Bitcoin Futures Contracts, one contract representing 5 bitcoin
(“BTC Contracts”) and another contract representing 0.10 bitcoin (“MBT Contracts”). The Fund will invest
in BTC Contracts and MBT Contracts to the extent necessary to achieve maximum exposure to the bitcoin futures market. As of December 31, 2023, the Trust has
had no operations other than the sale and issuance of four 100 Unlimited 0.00 The Fund continuously offers and redeems
shares in blocks of at least 10,000 25 Significant accounting policies of the
Fund are as follows: Use of Estimates The preparation of financial statements
in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amount of assets and
liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts
of the revenue and expenses during the reporting period. Actual results could differ from those estimates. Indemnifications In the normal course of business, the Fund
enters into contracts that contain a variety of representations which provide general indemnifications. The Fund’s maximum
exposure under these arrangements cannot be known; however, the Fund expects any risk of loss to be remote. Cash Cash includes non-interest bearing non-restricted
cash with one institution. Income Taxes For U.S. federal income tax purposes, the
Fund will be classified as a publicly traded partnership. A publicly traded partnership is generally taxable as a corporation for
U.S. federal income tax purposes unless 90% or more of the publicly traded partnership’s gross income for each taxable year
of its existence consists of qualifying income as defined in section 7704(d) of the Internal Revenue Code of 1986, as amended (the
“Code”). Qualifying income is defined as generally including, in pertinent part, interest (other than from a financial
business), dividends, and gains from the sale or disposition of capital assets held for the production of interest or dividends.
In the case of a partnership of which a principal activity is the buying and selling of commodities, other than as inventory, or
of futures, forwards, and options with respect to commodities, qualifying income also includes income and gains from commodities
and from futures, forwards, options with respect to commodities and, provided the partnership is a trader or investor with respect
to such assets, swaps and other notional principal contracts with respect to commodities. There is very limited authority on the
U.S. federal income tax treatment of bitcoin and no direct authority on bitcoin derivatives, such as Bitcoin Futures Contracts.
Based on an opinion received by Tidal from their independent legal counsel and a Commodity Futures Trading Commission determination
that treats bitcoin as a commodity under the Commodity Exchange Act, the Fund intends to take the position that Bitcoin Futures
Contracts consist of futures on commodities for purposes of the qualifying income exception under section 7704 of the Code. Accordingly,
the Fund expects that at least 90% of the Fund’s gross income for each taxable year will consist of qualifying income and
that the Fund will be taxed as a partnership for U.S. federal income tax purposes. Therefore, the Fund does not record a provision
for income taxes because the shareholders report their share of the Fund’s income or loss on their income tax returns. The Fund is required to determine whether
a tax position is more likely than not to be sustained upon examination by the applicable taxing authority, including resolution
of any related appeals or litigation processes, based on the technical merits of the position. The Fund will file income tax returns
in the U.S. federal jurisdiction and may file income tax returns in various U.S. states and foreign jurisdictions. The Fund may be subject to potential examination
by U.S. federal, U.S. state, or foreign jurisdictional authorities in the area of income taxes. These potential examinations may
include among other things questioning the tax classification of the Fund, the timing and amount of deductions, the nexus of income
among various tax jurisdictions, and compliance with U.S. federal, U.S. state and foreign tax laws. Creation and Redemptions Authorized Purchasers may purchase Creation
Baskets consisting of 10,000 Authorized Purchasers may redeem shares
from the Fund only in blocks of 10,000 The Fund will receive the proceeds from
shares sold or will pay for redeemed shares within three business days after the trade date of the purchase or redemption, respectively.
The amounts due from Authorized Purchasers will be reflected in the Fund’s statements of assets and liabilities as capital
shares receivable. Amounts payable to Authorized Purchasers upon redemption will be reflected in the Fund’s statements of
assets and liabilities as payable for shares redeemed. As outlined in the most recent Form S-1
filing, 10,000 Calculation of Net Asset Value The Fund’s NAV is calculated by:
● Taking the current market value of its total assets;
● Subtracting any liabilities; and
● Dividing the above total by the number of shares outstanding. U.S. Bancorp Fund Services, LLC, doing
business as U.S. Bank Global Fund Services (“Global Fund Services”), the Fund's sub-administrator, will calculate the
NAV of the Fund once each trading day. It will calculate the NAV as of the earlier of the close of the New York Stock Exchange
or 4:00 p.m. (ET). The NAV for a particular trading day will be released after 4:15 p.m. (ET). The value of Bitcoin Futures Contracts,
Global Fund Services uses the settlement price for the Benchmark Component Futures Contracts, as reported on the CME. CME Group
staff determines the daily settlements for the Benchmark Component Futures Contracts based on trading activity on CME Globex exchange
between 14:59:00 and 15:00:00 Central Time (CT), the settlement period. When a Bitcoin Futures Contract has closed at its daily
price fluctuation limit, that limit price will be the daily settlement price that the CME publishes. The Fund will use the published
settlement price to price its Shares on that day. If the CME halted trading in Bitcoin Futures Contracts for other reasons, including
if trading were halted for an entire trading day or several trading days, the Fund would value its Bitcoin Futures Contracts by
using the settlement price that the CME publishes. Such valuation is generally deemed a Level 1 valuation. In determining the value of the bitcoin
held by the Fund will be determined using a “Futures-Based Spot Price” (or “FBSP”) methodology. This methodology
has been chosen by the Sponsor specifically to calculate the Fund's NAV, isolating it from data from unregulated bitcoin exchanges.
The methodology to derive the settlement prices of Bitcoin Futures Contracts on the CME involves a calculation that is a function
of both the length of time (the tenor) until each Bitcoin Futures Contract is due for settlement, and the final settlement price
for each contract on that day. The calculation is based on estimating a simple quadratic function to fit the prices across the
different tenors and extrapolate this curve to zero days tenor. This approach is designed to give more importance to contracts
that are due for settlement in the near term, considering that the prices of these near-term contracts are more reliable indicators
of the current spot price of Bitcoin and are also more heavily traded. Such Valuation is generally deemed a Level 2 valuation. Fair Value - Definition and Hierarchy In accordance with GAAP, fair value is
defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., the “exit price”)
in an orderly transaction between market participants at the measurement date. In determining fair value, the Fund uses
various valuation approaches. In accordance with GAAP, a fair value hierarchy for inputs is used in measuring fair value that maximizes
the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used
when available. Observable inputs are those that market participants would use in pricing the asset or liability based on market
data obtained from sources independent of the Fund. Unobservable inputs reflect the Fund’s assumptions about the inputs market
participants would use in pricing the asset or liability developed based on the best information available in the circumstances.
The fair value hierarchy is categorized into three levels based on the inputs as follows: Level 1 Level 2 Level 3 The availability of valuation techniques
and observable inputs can vary from financial instrument to financial instrument and is affected by a wide variety of factors including,
the type of financial instrument, whether the financial instrument is new and not yet established in the marketplace, and other
characteristics particular to the transaction. To the extent that valuation is based on models or inputs that are less observable
or unobservable in the market, the determination of fair value requires more judgment. Those estimated values do not necessarily
represent the amounts that may be ultimately realized due to the occurrence of future circumstances that cannot be reasonably determined.
Because of the inherent uncertainty of valuation, those estimated values may be materially higher or lower than the values that
would have been used had a ready market for the financial instruments existed. Accordingly, the degree of judgment exercised by
the Fund in determining fair value is greatest for financial instruments categorized in Level 3. In certain cases, the inputs used
to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level
in the fair value hierarchy, within which the fair value measurement in its entirety falls, is determined based on the lowest level
input that is significant to the fair value measurement. Basis of Presentation The preparation of these financial statements
in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect
the reported amount of net assets and liabilities and disclosure of contingent assets and liabilities at the balance sheet date.
Actual results could differ from those estimates. Organizational and Offering Costs All organizational and initial offering
costs for the Trust and the Fund were borne directly by the Sponsor. The Trust and the Fund do not have an obligation to reimburse
the Adviser for organization and offering costs paid on their behalf. Subsequent to the Merger (defined below),
as more fully described in Note 4 |
