<SEC-DOCUMENT>0001213900-25-069756.txt : 20250731
<SEC-HEADER>0001213900-25-069756.hdr.sgml : 20250731
<ACCEPTANCE-DATETIME>20250731112509
ACCESSION NUMBER:		0001213900-25-069756
CONFORMED SUBMISSION TYPE:	S-3/A
PUBLIC DOCUMENT COUNT:		14
FILED AS OF DATE:		20250731
DATE AS OF CHANGE:		20250731

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			Bitwise Bitcoin ETF
		CENTRAL INDEX KEY:			0001763415
		STANDARD INDUSTRIAL CLASSIFICATION:	 [6221]
		ORGANIZATION NAME:           	09 Crypto Assets
		EIN:				000000000
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		S-3/A
		SEC ACT:		1933 Act
		SEC FILE NUMBER:	333-287903
		FILM NUMBER:		251170287

	BUSINESS ADDRESS:	
		STREET 1:		250 MONTGOMERY STREET
		STREET 2:		SUITE 200
		CITY:			SAN FRANCISCO
		STATE:			CA
		ZIP:			94104
		BUSINESS PHONE:		415-707-3663

	MAIL ADDRESS:	
		STREET 1:		250 MONTGOMERY STREET
		STREET 2:		SUITE 200
		CITY:			SAN FRANCISCO
		STATE:			CA
		ZIP:			94104

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	Bitwise Bitcoin ETF Trust
		DATE OF NAME CHANGE:	20231201

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	BITWISE BITCOIN ETP TRUST
		DATE OF NAME CHANGE:	20211012

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	BITWISE BITCOIN ETF TRUST
		DATE OF NAME CHANGE:	20190103
</SEC-HEADER>
<DOCUMENT>
<TYPE>S-3/A
<SEQUENCE>1
<FILENAME>ea0250824-s3a3_bitwise.htm
<DESCRIPTION>AMENDMENT NO. 3 TO FORM S-3
<TEXT>
<HTML>
<HEAD>
<TITLE></TITLE>
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<BODY>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> As filed with the Securities and Exchange Commission
on July 31, 2025. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">Registration No. 333-287903</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"></P>

<!-- Field: Rule-Page --><DIV STYLE="margin-top: 0pt; margin-bottom: 0pt; width: 100%"><DIV STYLE="font-size: 1pt; border-top: Black 2pt solid; border-bottom: Black 1pt solid">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-size: 10pt"><B>UNITED STATES</B><BR>
<B>SECURITIES AND EXCHANGE COMMISSION</B><BR>
<B>Washington, D.C. 20549</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> <FONT STYLE="font-size: 10pt"><B>Pre-Effective
Amendment No. 3</B></FONT> </P>

<P STYLE="text-align: center; margin-top: 0pt; font: 14pt Times New Roman, Times, Serif; margin-bottom: 0pt"><FONT STYLE="font-size: 10pt"><B>to</B></FONT></P>

<P STYLE="font: 18pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-size: 10pt"><B>FORM S-3</B></FONT></P>

<P STYLE="font: 18pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">REGISTRATION STATEMENT<BR>
UNDER<BR>
THE SECURITIES ACT OF 1933</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 18pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Bitwise Bitcoin ETF<FONT STYLE="font-size: 10pt">&nbsp;</FONT></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(Exact name of registrant as specified in its
charter)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt -0.25in; text-align: center">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: Black 1.5pt solid; width: 49%; font-size: 10pt; text-align: center"><B>Delaware</B></TD>
    <TD STYLE="width: 2%; font-size: 10pt; text-align: center">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; width: 49%; font-size: 10pt; text-align: center">83-6613214</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(State or other jurisdiction of</P>
    <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">incorporation or organization)</P></TD>
    <TD STYLE="font-size: 10pt; text-align: center">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center">(I.R.S. Employer <BR>
    Identification No.)</TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>c/o Bitwise Investment Advisers, LLC</B><BR>
<B>250 Montgomery Street, Suite 200</B><BR>
<B>San Francisco, California 94104</B><BR>
<B>(415) 707-3663</B><BR>
(Address, including zip code, and telephone number, including<BR>
area code, of registrant&rsquo;s principal executive offices and for service of process purposes)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Copies to:</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Richard Coyle, Esq.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>James Audette, Esq.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Chapman and Cutler LLP</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>320 South Canal Street, 27<SUP>th</SUP> Floor</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Chicago, Illinois 60606</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(312) 845-3724</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Katherine Dowling, Esq.</B><BR>
<B>Bitwise Investment Advisers, LLC</B><BR>
<B>250 Montgomery Street, Suite 200</B><BR>
<B>San Francisco, California 94104</B><BR>
<B>(415) 707-3663</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Approximate date of commencement of proposed
sale to the public: As soon as practicable after the effective date of this Registration Statement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">If the only securities being registered on this
Form are being offered pursuant to dividend or interest reinvestment plans, please check the following box: <FONT STYLE="font-family: Times New Roman, Times, Serif">&#9744;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">If any of the securities being registered on
this Form are to be offered on a delayed or continuous basis pursuant to Rule 415 under the Securities Act of 1933, other than securities
offered only in connection with dividend or interest reinvestment plans, check the following box: &#9746;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>




<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">If this Form is filed to register additional
securities for an offering pursuant to Rule 462(b) under the Securities Act, please check the following box and list the Securities Act
registration statement number of the earlier effective registration statement for the same offering: &#9744;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">If this Form is a post-effective amendment filed
pursuant to Rule 462(c) under the Securities Act, check the following box and list the Securities Act registration statement number of
the earlier effective registration statement for the same offering. &#9744;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">If this Form is a registration statement pursuant
to General Instruction I.D. or a post-effective amendment thereto that shall become effective upon filing with the Commission pursuant
to Rule 462(e) under the Securities Act, check the following box. &#9744;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">If this Form is a post-effective amendment to
a registration statement filed pursuant to General Instruction I.D. filed to register additional securities or additional classes of
securities pursuant to Rule 413(b) under the Securities Act, check the following box. &#9744;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Indicate by check mark whether the registrant
is a large, accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company.
See the definitions of &ldquo;large, accelerated filer,&rdquo; &ldquo;accelerated filer,&rdquo; &ldquo;smaller reporting company,&rdquo;
and &ldquo;emerging growth company&rdquo; in Rule 12b-2 of the Exchange Act.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 22%">Large accelerated filer &#9744;</TD>
    <TD STYLE="width: 48%">&nbsp;</TD>
    <TD STYLE="width: 30%">Accelerated filer &#9744;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>Non-accelerated filer &#9746;</TD>
    <TD>&nbsp;</TD>
    <TD>Smaller reporting company &#9744;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>Emerging growth company &#9746;</TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">If an emerging growth company, indicate by check
mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting
standards provided pursuant to Section 7(a)(2)(B) of the Securities Act. &#9744;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>The registrant hereby amends this registration
statement on such date or dates as may be necessary to delay its effective date until the registrant shall file a further amendment which
specifically states that this registration statement shall thereafter become effective in accordance with Section 8(a) of the Securities
Act of 1933 or until the registration statement shall become effective on such date as the Securities and Exchange Commission, acting
pursuant to said Section 8(a), may determine.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="color: Red">The information in this
Prospectus is not complete and may be changed. We may not sell these securities until the registration statement filed with the Securities
and Exchange Commission is effective. This Prospectus is not an offer to sell these securities and it is not soliciting an offer to buy
these securities in any jurisdiction where the offer or sale is not permitted.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="color: Red"><B>Subject to Completion</B></FONT></P>

<P STYLE="color: Red; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> <B>Preliminary Prospectus dated
July 31, 2025</B> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B>PROSPECTUS</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 18pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-size: 12pt"><B>Shares</B></FONT></P>

<P STYLE="font: 18pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 24pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-size: 12pt"><B>Bitwise Bitcoin
ETF</B></FONT></P>

<P STYLE="font: 24pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 24pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

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<P STYLE="font: 24pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-size: 10pt">The Bitwise Bitcoin
ETF (the &ldquo;Trust&rdquo;) is an exchange-traded product</FONT> that issues common shares of beneficial interest (&ldquo;Shares&rdquo;)
that are listed on the NYSE Arca, Inc. (the &ldquo;Exchange&rdquo;) under the ticker symbol &ldquo;BITB.&rdquo; The Trust&rsquo;s investment
objective is to seek to provide exposure to the value of bitcoin held by the Trust, less the expenses of the Trust&rsquo;s operations
and other liabilities. In seeking to achieve its investment objective, the Trust holds bitcoin and establishes its net asset value (&ldquo;NAV&rdquo;)
by reference to the CME CF Bitcoin Reference Rate &ndash; New York Variant (&ldquo;BRRNY&rdquo;). The BRRNY is calculated by CF Benchmarks
Ltd. (the &ldquo;Benchmark Provider&rdquo;) based on an aggregation of executed trade flow of major bitcoin trading platforms (&ldquo;Constituent
Platforms&rdquo;). The Trust is sponsored and managed by Bitwise Investment Advisers, LLC (the &ldquo;Sponsor&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Trust pays the Sponsor a unitary management
fee of 0.20% per annum of the Trust&rsquo;s bitcoin holdings (the &ldquo;Sponsor Fee&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">When the Trust creates or redeems its Shares,
it does so in blocks of 10,000 Shares (each, a &ldquo;Basket&rdquo;) 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 (10,000) comprising a Basket (the &ldquo;Basket
Amount&rdquo;). For an order to create (purchase) a Basket, the purchase shall be in the amount of bitcoin represented by the Basket
Amount or the amount of U.S. dollars needed to purchase the Basket Amount (plus a per-order transaction fee), as calculated by the Administrator
(as defined below). For an order to redeem a Basket, the Sponsor shall either arrange for the Basket Amount of bitcoin to be distributed
in-kind or sold and the cash proceeds (minus a per-order transaction fee) distributed. The Trust only creates and redeems Baskets in
transactions with financial firms that are authorized to purchase or redeem Shares with the Trust (each, an &ldquo;Authorized Participant&rdquo;).
Shares initially comprising the same Basket but offered by the Authorized Participants to the public at different times may have different
offering prices that depend on various factors, including the supply and demand for Shares, the value of the Trust&rsquo;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.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As of the date of this prospectus, the Exchange
has received regulatory approval allowing the Trust to conduct creations and redemptions of Shares in-kind for bitcoin. Accordingly,
the Trust will conduct creations and redemptions of Shares both in-kind for bitcoin and for cash.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Investors who decide to buy or sell Shares of
the Trust will place their trade orders through their brokers and may incur customary brokerage commissions and charges. Investing in
the Trust involves risks similar to those involved with an investment directly in bitcoin and other significant risks. <B>See &ldquo;RISK
FACTORS&rdquo; beginning on page 10</B>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The offering of the Shares is registered with
the U.S. Securities and Exchange Commission (&ldquo;SEC&rdquo;) in accordance with the Securities Act of 1933 (the &ldquo;1933 Act&rdquo;).
The Trust issues Shares on a continuous basis and is registering an indeterminate number of Shares. The offering is intended to be a
continuous offering. The Trust is not a fund registered or subject to regulation under the Investment Company Act of 1940. The Trust
is not a commodity pool for purposes of the Commodity Exchange Act of 1936, and the Sponsor is not subject to regulation by the Commodity
Futures Trading Commission as a commodity pool operator or a commodity trading advisor.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>AN INVESTMENT IN THE TRUST MAY NOT BE SUITABLE
FOR INVESTORS THAT ARE NOT IN A POSITION TO ACCEPT MORE RISK THAN MAY BE INVOLVED WITH OTHER EXCHANGE-TRADED PRODUCTS THAT DO NOT HOLD
BITCOIN OR INTERESTS RELATED TO BITCOIN. THE SHARES ARE SPECULATIVE SECURITIES. THEIR PURCHASE INVOLVES A HIGH DEGREE OF RISK AND YOU
COULD LOSE YOUR ENTIRE INVESTMENT. YOU SHOULD CONSIDER ALL RISK FACTORS BEFORE INVESTING IN THE TRUST. PLEASE REFER TO &ldquo;RISK FACTORS&rdquo;
BEGINNING ON PAGE 10.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>NEITHER THE SECURITIES AND EXCHANGE COMMISSION
NOR ANY STATE SECURITIES COMMISSION HAS APPROVED OR DISAPPROVED OF THE SECURITIES OFFERED IN THIS PROSPECTUS, OR DETERMINED IF THIS PROSPECTUS
IS TRUTHFUL OR COMPLETE. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> <B>The date of this Prospectus is August 1,
2025</B> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: center; text-indent: -0.5in"><B>TABLE OF CONTENTS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: center; text-indent: -0.5in">&nbsp;</P>



<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%">
  <TR STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom; text-transform: none">
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: center"><B>Page</B></TD></TR>
  <TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif; text-transform: uppercase; background-color: rgb(204,238,255)">
    <TD STYLE="width: 90%; text-align: left"><A HREF="#a_001">Prospectus Summary</A></TD>
    <TD STYLE="width: 10%; text-align: center">1</TD></TR>
  <TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif; text-transform: uppercase; background-color: White">
    <TD STYLE="text-align: left"><A HREF="#a_002">Risk Factors</A></TD>
    <TD STYLE="text-align: center">10</TD></TR>
  <TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif; text-transform: uppercase; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left"><A HREF="#a_003">BITCOIN, BITCOIN MARKET AND REGULATION OF BITCOIN</A></TD>
    <TD STYLE="text-align: center">58</TD></TR>
  <TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif; text-transform: uppercase; background-color: White">
    <TD STYLE="text-align: left"><A HREF="#a_004">THE TRUST AND BITCOIN PRICES</A></TD>
    <TD STYLE="text-align: center">66</TD></TR>
  <TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif; text-transform: uppercase; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left"><A HREF="#a_005">Calculation of NAV</A></TD>
    <TD STYLE="text-align: center">72</TD></TR>
  <TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif; text-transform: uppercase; background-color: White">
    <TD STYLE="text-align: left"><A HREF="#a_006">ADDITIONAL INFORMATION ABOUT THE TRUST</A></TD>
    <TD STYLE="text-align: center">74</TD></TR>
  <TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif; text-transform: uppercase; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left"><A HREF="#a_007">The Trust&rsquo;s Service Providers</A></TD>
    <TD STYLE="text-align: center">79</TD></TR>
  <TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif; text-transform: uppercase; background-color: White">
    <TD STYLE="text-align: left"><A HREF="#a_008">Custody of the Trust&rsquo;s Assets</A></TD>
    <TD STYLE="text-align: center">81</TD></TR>
  <TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif; text-transform: uppercase; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left"><A HREF="#a_009">THE PRIME EXECUTION AGENT AND the TRADE CREDIT LENDER</A></TD>
    <TD STYLE="text-align: center">83</TD></TR>
  <TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif; text-transform: uppercase; background-color: White">
    <TD STYLE="text-align: left"><A HREF="#a_010">Form of Shares</A></TD>
    <TD STYLE="text-align: center">89</TD></TR>
  <TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif; text-transform: uppercase; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left"><A HREF="#a_035">Transfer of Shares</A></TD>
    <TD STYLE="text-align: center">89</TD></TR>
  <TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif; text-transform: uppercase; background-color: White">
    <TD STYLE="text-align: left"><A HREF="#a_011">Plan of Distribution</A></TD>
    <TD STYLE="text-align: center">90</TD></TR>
  <TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif; text-transform: uppercase; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left"><A HREF="#a_012">Creation and Redemption of Shares</A></TD>
    <TD STYLE="text-align: center">91</TD></TR>
  <TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif; text-transform: uppercase; background-color: White">
    <TD STYLE="text-align: left"><A HREF="#a_013">Use of Proceeds</A></TD>
    <TD STYLE="text-align: center">96</TD></TR>
  <TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif; text-transform: uppercase; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left"><A HREF="#a_014">OWNERSHIP OR BENEFICIAL INTEREST IN THE TRUST</A></TD>
    <TD STYLE="text-align: center">97</TD></TR>
  <TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif; text-transform: uppercase; background-color: White">
    <TD STYLE="text-align: left"><A HREF="#a_015">Conflicts of Interest</A></TD>
    <TD STYLE="text-align: center">97</TD></TR>
  <TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif; text-transform: uppercase; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left"><A HREF="#a_016">FIDUCIARY AND REGULATORY DUTIES AND OBLIGATIONS OF THE SPONSOR</A></TD>
    <TD STYLE="text-align: center">98</TD></TR>
  <TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif; text-transform: uppercase; background-color: White">
    <TD STYLE="text-align: left"><A HREF="#a_017">Liability and Indemnification</A></TD>
    <TD STYLE="text-align: center">100</TD></TR>
  <TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif; text-transform: uppercase; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left"><A HREF="#a_018">Provisions of Law</A></TD>
    <TD STYLE="text-align: center">101</TD></TR>
  <TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif; text-transform: uppercase; background-color: White">
    <TD STYLE="text-align: left"><A HREF="#a_019">Management; Voting by Shareholders</A></TD>
    <TD STYLE="text-align: center">102</TD></TR>
  <TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif; text-transform: uppercase; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left"><A HREF="#a_020">Meetings</A></TD>
    <TD STYLE="text-align: center">102</TD></TR>
  <TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif; text-transform: uppercase; background-color: White">
    <TD STYLE="text-align: left"><A HREF="#a_021">Books and Records</A></TD>
    <TD STYLE="text-align: center">102</TD></TR>
  <TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif; text-transform: uppercase; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left"><A HREF="#a_022">STATEMENTS, FILINGS, AND REPORTS TO SHAREHOLDERS</A></TD>
    <TD STYLE="text-align: center">103</TD></TR>
  <TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif; text-transform: uppercase; background-color: White">
    <TD STYLE="text-align: left"><A HREF="#a_023">Fiscal Year</A></TD>
    <TD STYLE="text-align: center">103</TD></TR>
  <TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif; text-transform: uppercase; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left"><A HREF="#a_024">GOVERNING LAW; CONSENT TO DELAWARE JURISDICTION</A></TD>
    <TD STYLE="text-align: center">103</TD></TR>
  <TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif; text-transform: uppercase; background-color: White">
    <TD STYLE="text-align: left"><A HREF="#a_025">Legal Matters</A></TD>
    <TD STYLE="text-align: center">103</TD></TR>
  <TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif; text-transform: uppercase; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left"><A HREF="#a_026">Experts</A></TD>
    <TD STYLE="text-align: center">103</TD></TR>
  <TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif; text-transform: uppercase; background-color: White">
    <TD STYLE="text-align: left"><A HREF="#a_027">Material Contracts</A></TD>
    <TD STYLE="text-align: center">104</TD></TR>
  <TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif; text-transform: uppercase; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left"><A HREF="#a_028">UNITED STATES FEDERAL INCOME TAX CONSEQUENCES</A></TD>
    <TD STYLE="text-align: center">110</TD></TR>
  <TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif; text-transform: uppercase; background-color: White">
    <TD STYLE="text-align: left"><A HREF="#a_029">Purchases By Employee Benefit Plans</A></TD>
    <TD STYLE="text-align: center">115</TD></TR>
  <TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif; text-transform: uppercase; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left"><A HREF="#a_030">Information You Should Know</A></TD>
    <TD STYLE="text-align: center">117</TD></TR>
  <TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif; text-transform: uppercase; background-color: White">
    <TD STYLE="text-align: left"><A HREF="#a_031">SUMMARY OF PROMOTIONAL AND SALES MATERIAL</A></TD>
    <TD STYLE="text-align: center">117</TD></TR>
  <TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif; text-transform: uppercase; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left"><A HREF="#a_032">Intellectual Property</A></TD>
    <TD STYLE="text-align: center">118</TD></TR>
</TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%">
  <TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif; text-transform: uppercase; background-color: White">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in; width: 90%; text-align: left"><A HREF="#a_033">Where You Can Find More Information;
    INCORPORATION OF CERTAIN INFORMATION BY REFERENCE</A></TD>
    <TD STYLE="vertical-align: top; width: 10%; text-align: center">118</TD></TR>
  <TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif; text-transform: uppercase; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left"><A HREF="#a_034">Privacy Policy</A></TD>
    <TD STYLE="text-align: center">119</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0.5in; margin: 0pt 0; text-align: justify">This Prospectus contains
information you should consider when making an investment decision about the Shares. You may rely on the information contained in this
Prospectus. The Trust and the Sponsor have not authorized any person to provide you with different information and, if anyone provides
you with different or inconsistent information, you should not rely on it. This Prospectus is not an offer to sell the Shares in any
jurisdiction where the offer or sale of the Shares is not permitted.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">The Shares are not registered
for public sale in any jurisdiction other than the United States.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>


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<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center">STATEMENT REGARDING
FORWARD-LOOKING STATEMENTS</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">This Prospectus includes
&ldquo;forward-looking statements&rdquo; that generally relate to future events or future performance. In some cases, you can identify
forward-looking statements by terminology such as &ldquo;may,&rdquo; &ldquo;will,&rdquo; &ldquo;should,&rdquo; &ldquo;expect,&rdquo;
&ldquo;plan,&rdquo; &ldquo;anticipate,&rdquo; &ldquo;believe,&rdquo; &ldquo;estimate,&rdquo; &ldquo;predict,&rdquo; &ldquo;potential,&rdquo;
or the negative of these terms or other comparable terminology. All statements (other than statements of historical fact) included in
this Prospectus that address activities, events, or developments that will or may occur in the future, including such matters as movements
in the digital asset markets, the Trust&rsquo;s operations, the Sponsor&rsquo;s plans, and references to the Trust&rsquo;s future success
and other similar matters, are forward-looking statements. These statements are only predictions. Actual events or results may differ
materially. These statements are based upon certain assumptions and analyses the Sponsor has made based on its perception of historical
trends, current conditions, and expected future developments, as well as other factors appropriate in the circumstances.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">Whether or not actual results
and developments will conform to the Sponsor&rsquo;s expectations and predictions is subject to a number of risks and uncertainties,
including:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">the special considerations
                                            discussed in this Prospectus;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">general economic, market and
                                            business conditions;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">technology developments regarding
                                            the use of bitcoin and other digital assets, including the systems used by the Sponsor and
                                            the Trust&rsquo;s custodian in their provision of services to the Trust;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">changes in laws or regulations,
                                            including those concerning taxes, made by governmental authorities or regulatory bodies;
                                            and</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">other world economic and political
                                            developments, including, without limitation, global pandemics and the societal and government
                                            responses thereto.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">See &ldquo;Risk Factors.&rdquo;
Consequently, all the forward-looking statements made in this prospectus are qualified by these cautionary statements, and there can
be no assurance that the actual results or developments the Sponsor anticipates will be realized or, even if substantially realized,
that they will result in the expected consequences to, or have the expected effects on, the Trust&rsquo;s operations or the value of
the Shares. Neither the Trust nor the Sponsor is under a duty to update any of the forward-looking statements to conform such statements
to actual results or to reflect a change in the Sponsor&rsquo;s expectations or predictions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center"><FONT STYLE="background-color: white">EMERGING
GROWTH COMPANY STATUS</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">The Trust is an <FONT STYLE="text-transform: uppercase">&ldquo;</FONT>emerging
growth company<FONT STYLE="text-transform: uppercase">&rdquo;</FONT> as that term is used in the Jumpstart Our Business Startups Act
(the <FONT STYLE="text-transform: uppercase">&ldquo;</FONT>JOBS Act<FONT STYLE="text-transform: uppercase">&rdquo;)</FONT> and, as such,
may elect to comply with certain reduced reporting requirements. For as long as the Trust is an emerging growth company, unlike other
public companies, it will not be required to:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">provide an auditor&rsquo;s
                                            attestation report on management&rsquo;s assessment of the effectiveness of its system of
                                            internal control over financial reporting pursuant to Section 404(b) of the Sarbanes-Oxley
                                            Act of 2002;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">comply with any new requirements
                                            adopted by the Public Company Accounting Oversight Board (&ldquo;PCAOB&rdquo;) requiring
                                            mandatory auditor rotation or a supplement to the auditor&rsquo;s report in which the auditor
                                            would be required to provide additional information about the audit and the financial statements
                                            of the issuer;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">comply with any new audit
                                            rules adopted by the PCAOB after April 5, 2012, unless the Securities and Exchange Commission
                                            determines otherwise;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">provide certain disclosure
                                            regarding executive compensation required of larger public companies; or</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">obtain shareholder approval
                                            of any golden parachute payments not previously approved.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">The Trust will cease to be
an &ldquo;emerging growth company&rdquo; upon the earliest of (i) it having $1.235 billion or more in annual revenues, (ii) at least
$700 million in market value of Shares being held by non-affiliates, (iii) it issuing more than $1.0 billion of non-convertible debt
over a three-year period or (iv) the last day of the fiscal year following the fifth anniversary of its initial public offering.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">In addition, Section 107
of the JOBS Act also provides that an emerging growth company can take advantage of the extended transition period provided in Section
7(a)(2)(B) of the Securities Act of 1933 for complying with new or revised accounting standards. In other words, an emerging growth company
can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies; however, the
Trust is choosing to &ldquo;opt out&rdquo; of such extended transition period, and as a result, the Trust will comply with new or revised
accounting standards on the relevant dates on which adoption of such standards is required for non-emerging growth companies. Section
107 of the JOBS Act provides that the Trust&rsquo;s decision to opt out of the extended transition period for complying with new or revised
accounting standards is irrevocable.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>


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<DIV STYLE="padding: 5.4pt; border: Black 1.5pt solid"><P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center"><A NAME="a_001"></A>Prospectus
Summary</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify"><I>This is only a summary
of the prospectus and, while it contains material information about the Trust and its Shares, it does not contain or summarize all of
the information about the Trust and the Shares contained in this prospectus that is material and/or which may be important to you. You
should read this entire prospectus before making an investment decision about the Shares.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Overview of the Trust</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Bitwise Bitcoin ETF (the
&ldquo;Trust&rdquo;) is an exchange-traded product that issues common shares of beneficial interest (&ldquo;Shares&rdquo;) that are listed
on the NYSE Arca, Inc. (the &ldquo;Exchange&rdquo;) under the ticker symbol &ldquo;BITB.&rdquo; The Trust&rsquo;s investment objective
is to seek to provide exposure to the value of bitcoin held by the Trust, less the expenses of the Trust&rsquo;s operations and other
liabilities. In seeking to achieve its investment objective, the Trust holds bitcoin and establishes its net asset value (&ldquo;NAV&rdquo;)
with reference to the CME CF Bitcoin Reference Rate &ndash; New York Variant (&ldquo;BRRNY&rdquo;). The Trust is sponsored and managed
by Bitwise Investment Advisers, LLC (the &ldquo;Sponsor&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Bitcoin is a relatively new
digital asset with the potential to provide a globally exchangeable unit of value that can be transferred on a peer-to-peer basis. Bitcoin
is decentralized, meaning that the supply of bitcoin is not determined by a central government, but rather by software protocols that
limit both the total amount of bitcoin that will be produced and the rate at which such bitcoin is released into the network. In addition,
the official ledger or record of who owns what bitcoin is not maintained by any central entity, but rather, is maintained by multiple
different independent computers and entities simultaneously. Bitcoin have certain features associated with several types of assets, most
notably commodities and currencies. U.S. regulators have made limited pronouncements regarding the treatment of bitcoin and the Bitcoin
network under federal and state laws; however, the Sponsor believes that, on balance, the important features of bitcoin and other digital
assets are those that are characteristics of commodities and therefore has referred to and discussed these assets as such. This interpretation
is supported by regulatory actions and court determinations that regard bitcoin as a commodity under the Commodity Exchange Act of 1936
(the &ldquo;Commodity Exchange Act&rdquo;) and the Commodity Futures Trading Commission (&ldquo;CFTC&rdquo;) regulations thereunder.
In addition, the Sponsor is not aware of any current U.S. court or regulatory interpretation that regards bitcoin as either legal tender
&ndash; although it may be used as a medium of exchange or form of money &ndash; or a security. It is not known whether all U.S. or foreign
regulators or courts will share this view, adopt a single, different view or espouse a variety of differing views.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">As bitcoin remains a relatively
new asset, buying, holding and selling bitcoin is very different than buying, holding and selling more conventional investments like
stocks and bonds or other physical commodities. For example, bitcoin generally may be acquired through the process of &ldquo;mining,&rdquo;
purchased or received as consideration in a private transaction, or purchased on a digital asset trading platform. Private transactions
may be difficult to arrange, and involve complex and potentially risky procedures around safekeeping, transferring and holding the bitcoin.
Meanwhile there are also currently over 200 digital asset trading platforms from which to choose, the quality and regulation of which
varies significantly. Purchasing bitcoin on a trading platform generally requires choosing a platform, opening an account, and transferring
money or a different digital asset to the trading platform in order to purchase the bitcoin. Some trading platforms have been &ldquo;hacked,&rdquo;
resulting in significant losses to the platform or its users.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trust provides direct
exposure to the value of bitcoin held by the Trust with <FONT STYLE="background-color: white">Coinbase Custody Trust Company, LLC (&ldquo;Coinbase
Custody&rdquo; or </FONT>the &ldquo;Bitcoin Custodian&rdquo;). The Bitcoin Custodian is chartered as a New York State limited liability
trust company that provides custody services for digital assets. The Bitcoin Custodian is not Federal Deposit Insurance Corporation (&ldquo;FDIC&rdquo;)-insured
but carries insurance provided by private insurance carriers. The net assets of the Trust and its Shares are valued on a daily basis
with reference to the BRRNY, a standardized reference rate published by CF Benchmarks Ltd. (the &ldquo;Benchmark Provider&rdquo;) that
is designed to reflect the performance of bitcoin in U.S. dollars. The BRRNY is calculated by the Benchmark Provider based on an aggregation
of executed trade flow of major bitcoin trading platforms (&ldquo;Constituent Platforms&rdquo;). The BRRNY currently uses substantially
the same methodology as the CME CF Bitcoin Reference Rate (&ldquo;BRR&rdquo;), including utilizing the same eight Constituent Platforms,
which is the underlying rate to determine settlement of CME bitcoin futures contracts, except that the BRRNY is calculated as of 4:00
p.m. Eastern time (&ldquo;ET&rdquo;), whereas the BRR is calculated as of 4:00 p.m. London time.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

</DIV>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trust provides investors
with the opportunity to access the market for bitcoin through a traditional brokerage account without the potential barriers to entry
or risks involved with acquiring and holding bitcoin directly. The Trust will not use derivatives that could subject the Trust to additional
counterparty and credit risks. The Sponsor believes that the design of the Trust will enable certain investors to more effectively and
efficiently implement strategic and tactical asset allocation strategies that use bitcoin by investing in the Shares rather than purchasing,
holding and trading bitcoin directly.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Bitcoin and the Bitcoin Network</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Bitcoin is based on the decentralized,
open-source protocol of a peer-to-peer network (the &ldquo;Bitcoin network&rdquo;) first described in 2008 and launched in 2009. No single
entity owns or administers the Bitcoin network, and bitcoin are not issued by governments, banks or similar organizations. The infrastructure
of the Bitcoin network is collectively maintained by a decentralized user base and developers who donate their time to maintain and improve
the network. The Bitcoin network is accessed through software, and software protocols govern the creation, movement, and ownership of
bitcoin, as reflected on the distributed ledger of transactions known as the &ldquo;Bitcoin blockchain.&rdquo; The value of bitcoin is
determined, in part, by the supply of, and demand for, bitcoin in global trading markets, market expectations for the adoption of bitcoin
as a decentralized store of value, the number of merchants and/or institutions that accept bitcoin as a form of payment and the volume
of private end-user-to-end-user transactions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Bitcoin transaction and ownership
records are reflected on the Bitcoin blockchain, which is a digital public record or ledger of all transactions completed on the Bitcoin
network. This ledger is decentralized, meaning that a copy is stored and updated continuously on the computers of each Bitcoin network
node (a node is a computer or other device running a version of the Bitcoin network software that maintains a copy of the Bitcoin blockchain
and directly communicates transactions to other nodes on the Bitcoin network). Commentators have identified Bitcoin&rsquo;s primary innovation
as the ability to trust that the Bitcoin blockchain is updated properly for each node without having to trust any single party to ensure
the integrity of the ledger or the network. Transaction data is permanently recorded on the Bitcoin blockchain in files called &ldquo;blocks,&rdquo;
which reflect transactions that have been recorded and authenticated by Bitcoin network participants. The Bitcoin network software includes
protocols that govern the creation of bitcoin and the cryptographic system that secures and verifies bitcoin transactions. By operating
Bitcoin network software, users agree to and contribute to consensus around such software protocols.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">While the Bitcoin network
and trading markets for bitcoin are still new, the Sponsor believes that various objective factors indicate that the Bitcoin ecosystem
has matured, including, without limitation, the following:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">increased
                                            certainty regarding the regulation of the Bitcoin network and the uses thereof;</TD>
</TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">the launch
                                            of futures contracts for bitcoin on major, established and regulated commodity futures exchanges
                                            in the United States (&ldquo;U.S.&rdquo;);</TD>
</TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">the subsequent
                                            growth of significant trading volume in bitcoin futures;</TD>
</TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">increased participation by
                                            institutional investors;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">the arrival of major, established
                                            market makers that rely on sophisticated and technologically enabled trading systems to arbitrage
                                            bitcoin price discrepancies that may appear between different trading platforms;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">the development of a robust
                                            bitcoin lending market;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">a significant expansion in
                                            the availability of institutional-quality custody services from regulated third-party custodians;
                                            and</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">the advent and increasing
                                            ubiquity of significant insurance on custodied assets held at third-party custodians.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Sponsor believes that
these factors have combined to improve the efficiency of the bitcoin market, creating a dynamic, institutional-quality, two-sided market
(discussed below). For more information on bitcoin and the Bitcoin network, see &ldquo;Bitcoin, Bitcoin Market, Bitcoin Exchanges and
Regulation of Bitcoin&rdquo; below.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Trust&rsquo;s Investment Objective and
Strategies</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trust&rsquo;s investment
objective is to seek to provide exposure to the value of bitcoin held by the Trust, less the expenses of the Trust&rsquo;s operations.
In seeking to achieve its investment objective, the Trust holds bitcoin and accrues the Sponsor&rsquo;s management fee (the &ldquo;Sponsor
Fee&rdquo;) in U.S. dollars. The Trust values its bitcoin holdings, net assets and the Shares daily based on the BRRNY. The Trust is
passively managed and does not pursue active management investment strategies, and the Sponsor does not actively manage the bitcoin held
by the Trust. This means that the Sponsor does not sell bitcoin at times when its price is high or acquire bitcoin at low prices in the
expectation of future price increases. It also means that the Sponsor does not make use of any of the hedging techniques available to
professional bitcoin investors to attempt to reduce the risks of losses resulting from price decreases. The Trust will not utilize leverage
or any similar arrangements in seeking to meet its investment objective. Bitcoin will be the only digital asset held by the Trust.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

</DIV>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trust may either create
and redeem Shares in-kind for bitcoin (&ldquo;In-Kind Creations&rdquo; and &ldquo;In-Kind Redemptions,&rdquo; respectively) or for cash
(&ldquo;Cash Creations&rdquo; and &ldquo;Cash Redemptions,&rdquo; respectively). When the Trust creates or redeems its Shares, it does
so in blocks of 10,000 Shares (each, a &ldquo;Basket&rdquo;) 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 (10,000) comprising a Basket (the &ldquo;Basket
Amount&rdquo;). For an order to purchase (create) a Basket, the purchase shall be in the amount of bitcoin represented by the Basket
Amount (in the case of an In-Kind Creation) or the amount of U.S. dollars needed to purchase the Basket Amount (plus a per-order transaction
fee), as calculated by the Administrator (as defined below) (in the case of a Cash Creation). For an order to redeem a Basket, the Sponsor
shall either arrange for the Basket Amount of bitcoin to be distributed in-kind (in the case of an In-Kind Redemption) or sold and the
cash proceeds (minus a per-order transaction fee) distributed (in the case of a Cash Redemption). The Trust only creates and redeems
Baskets in transactions with financial firms that are authorized to purchase or redeem Shares with the Trust (each, an &ldquo;Authorized
Participant&rdquo;). In the case of In-Kind Creations and In-Kind Redemptions, an Authorized Participant or an Authorized Participant&rsquo;s
designee (&ldquo;Authorized Participant Designee&rdquo;) deposits bitcoin directly with the Trust or receives bitcoin directly from the
Trust. Shares initially comprising the same Basket but offered by the Authorized Participants to the public at different times may have
different offering prices that depend on various factors, including the supply and demand for Shares, the value of the Trust&rsquo;s
assets, and market conditions at the time of a transaction.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Basket Amount required
to create each Basket changes from day to day. On each day that the Exchange is open for regular trading, the Administrator adjusts the
quantity of bitcoin constituting the Basket Amount as appropriate to reflect accrued expenses and any loss of bitcoin that may occur.
The computation is made by the Administrator each business day prior to the commencement of trading on the Exchange. The Administrator
determines the Basket Amount for a given day by dividing the number of bitcoin held by the Trust as of the opening of business on that
business day, adjusted for the amount of bitcoin constituting estimated accrued but unpaid fees and expenses of the Trust as of the opening
of business on that business day, by the quotient of the number of Shares outstanding at the opening of business divided by 10,000. Fractions
of a bitcoin smaller than a satoshi (0.00000001 bitcoin) are disregarded for purposes of the computation of the Basket Amount. The Basket
Amount so determined is communicated via electronic mail message to all Authorized Participants and made available on the Sponsor&rsquo;s
website for the Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">Purchases and Sales of
Bitcoin</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">When the Trust conducts Cash
Creations or Cash Redemptions, it is responsible for purchasing and selling bitcoin. The Trust may also be required to sell bitcoin to
pay certain extraordinary, non-recurring expenses that are not assumed by the Sponsor. Under such circumstances, the Sponsor, on behalf
of the Trust, typically seeks to buy and sell bitcoin at a price as close to the BRRNY as practical. Such purchase and sale transactions
may be conducted pursuant to two models: (i) the &ldquo;Trust-Directed Trade Model&rdquo;; or the (ii)&nbsp;&ldquo;Agent Execution Model.&rdquo;
The Trust intends to utilize the Trust-Directed Trade Model for all purchases and sales of bitcoin and will only utilize the Agent Execution
Model in the event that no Bitcoin Trading Counterparty is willing or able to effectuate the Trust&rsquo;s purchase or sale of bitcoin.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

</DIV>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Under the Trust-Directed
Trade Model, the Sponsor, on behalf of the Trust, is responsible for acquiring bitcoin from a bitcoin trading counterparty that has been
approved by the Sponsor (each, a &ldquo;Bitcoin Trading Counterparty&rdquo;). As of May 23, 2025, Coinbase Inc., B2C2 USA Inc., Cumberland
DRW LLC, FalconX (d/b/a Solios, Inc.), Wintermute Trading Ltd, Flow Traders B.V., JSCT, LLC, and Nonco LLC have been approved as Bitcoin
Trading Counterparties. JSCT, LLC is an affiliate of Jane Street Capital, LLC, which is an Authorized Participant to the Trust. The Sponsor
has entered into contractual agreements with the Bitcoin Trading Counterparties, and these agreements set forth the general parameters
under which a transaction in bitcoin will be effectuated, should any transaction with a Bitcoin Trading Counterparty occur. These agreements
do not require the Sponsor to utilize any particular Bitcoin Trading Counterparty, and do not create any contractual obligations on the
part of any Bitcoin Trading Counterparty to participate in cash or in-kind orders for creations or redemptions. All transactions between
the Sponsor, on behalf of the Trust, and a Bitcoin Trading Counterparty will be done on an arm&rsquo;s-length basis.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Under the Agent Execution
Model, Coinbase, Inc. (&ldquo;Coinbase Inc.&rdquo; or the &ldquo;Prime Execution Agent&rdquo;, which is an affiliate of the Bitcoin Custodian),
acting in an agency capacity, conducts bitcoin purchases and sales on behalf of the Trust with third parties through its Coinbase Prime
service pursuant to an agreement (the &ldquo;Prime Execution Agreement&rdquo;). To utilize the Agent Execution Model, the Trust may maintain
some bitcoin or cash in a trading account (the &ldquo;Trading Balance&rdquo;) with the Prime Execution Agent. To avoid having to pre-fund
purchases or sales of bitcoin in connection with cash creations and redemptions and sales of bitcoin to pay Trust expenses not assumed
by the Sponsor, to the extent applicable, the Trust may borrow bitcoin or cash as trade credit (&ldquo;Trade Credit&rdquo;) from Coinbase
Credit, Inc. (the &ldquo;Trade Credit Lender&rdquo;) on a short-term basis pursuant to the Coinbase Credit Committed Trade Financing
Agreement (the &ldquo;Trade Financing Agreement&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The CME CF Bitcoin Reference Rate &ndash;
New York Variant</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The BRRNY was designed to
provide a daily, 4:00 p.m. New York time reference rate of the U.S. dollar price of one bitcoin that may be used to develop financial
products. The BRRNY uses the same methodology as the BRR, which was designed by the CME Group and CF Benchmarks Ltd. to facilitate the
cash settlement of Bitcoin Futures traded on the Chicago Mercantile Exchange (&ldquo;CME&rdquo;). The only material difference between
the BRRNY and BRR is that the BRR measures the U.S. dollar price of one bitcoin as of 4:00 p.m. London time and the BRRNY measure the
U.S. dollar price of one bitcoin as of 4:00 pm Eastern time. The CME Group also publishes the CME CF Bitcoin Real Time Index (the &ldquo;CME
Bitcoin Real Time Price&rdquo;), which is a continuous measure of the U.S. dollar price of one bitcoin calculated once per second. Each
of the BRRNY, BRR and the CME Bitcoin Real Time Price are representative of the bitcoin trading activity on the Constituent Platforms,
which include, as of the date of this Prospectus, Bitstamp, Bullish Exchange, Coinbase, Crypto.com, Gemini, itBit, LMAX and Kraken. For
more information on the BRRNY, BRR and CME Bitcoin Real Time Price, see &ldquo;The Trust and Bitcoin Prices&rdquo; below.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trust uses the BRRNY
to calculate its daily NAV and utilizes the CME Bitcoin Real Time Price to calculate an Indicative Trust Value (&ldquo;ITV&rdquo;). The
ITV is intended to provide additional information not otherwise available to the public that may be useful to investors and market professionals
in connection with the trading of the Shares on the Exchange. It is calculated by using the prior day&rsquo;s holdings at close of business
and the most recently reported price level of the CME Bitcoin Real Time Price. The ITV will be disseminated on a per Share basis every
15 seconds during regular Exchange trading hours of 9:30 a.m. to 4:00 p.m. New York time.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Trust&rsquo;s Legal Structure</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trust is a Delaware statutory
trust, formed pursuant to the Delaware Statutory Trust Act (&ldquo;DSTA&rdquo;). The Trust continuously issues common shares representing
units of undivided beneficial ownership of the Trust that may be purchased and sold on the Exchange. The Trust operates pursuant to the
Amended and Restated Declaration of Trust and Trust Agreement (the &ldquo;Trust Agreement&rdquo;), dated as of December 27, 2023. Delaware
Trust Company, a Delaware trust company, is the Delaware trustee of the Trust (the &ldquo;Trustee&rdquo;). The Trust is managed and controlled
by the Sponsor pursuant to the terms of the Trust Agreement and the Sponsor Agreement, dated as of January 5, 2024, between the Trust
and the Sponsor. The Sponsor is a limited liability company formed in the state of Delaware on June 4, 2018. Except as required under
applicable federal law or under the rules or regulations of an Exchange, shareholders of the Trust (&ldquo;Shareholders&rdquo;) do not
have any voting rights, take no part in the management or control, and have no voice in, the Trust&rsquo;s operations or business.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

</DIV>


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<DIV STYLE="padding: 5.4pt; border: Black 1.5pt solid"><P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Trust&rsquo;s Service Providers</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The Sponsor</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Bitwise Investment Advisers,
LLC 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.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The Trustee</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Delaware Trust Company serves
as the Trustee, as required to create a Delaware statutory trust in accordance with the Trust Agreement and the DSTA.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The Administrator</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Bank of New York Mellon
(&ldquo;BNY Mellon&rdquo;) serves as the Trust&rsquo;s administrator (in such capacity, the &ldquo;Administrator&rdquo;). 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. In addition, the Administrator makes available the office space, equipment,
personnel and facilities required to provide such services. The Administrator&rsquo;s principal address is 240 Greenwich Street, New
York, New York 10286.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The Transfer Agent</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">BNY Mellon serves as the
transfer agent for the Trust (in such capacity, the &ldquo;Transfer Agent&rdquo;). The Transfer Agent: (1) issues and redeems Shares
of the Trust; (2) responds to correspondence by Shareholders and others relating to its duties; (3) maintains Shareholder accounts; and
(4) makes periodic reports to the Trust.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The Bitcoin Custodian</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="background-color: white">Coinbase
Custody Trust Company, LLC</FONT> serves as the Trust&rsquo;s Bitcoin Custodian pursuant to an agreement between it and the Trust (the
&ldquo;Bitcoin Custody Agreement&rdquo;). The Bitcoin Custodian is a fiduciary under &sect; 100 of the New York Banking Law. Under the
Bitcoin Custody Agreement, the Bitcoin Custodian is responsible for safekeeping the bitcoin owned by the Trust. The Bitcoin Custodian
was selected by the Sponsor. The Bitcoin Custodian has responsibility for opening a special account that holds the Trust&rsquo;s bitcoin
(the &ldquo;Trust Bitcoin Account&rdquo;) and implementing the controls designed by the Sponsor for the account, as well as facilitating
the transfer of bitcoin required for the operation of the Trust. The Bitcoin Custodian also entered into an agreement with the Sponsor
to open a custody account to receive payment of the Sponsor Fee (the &ldquo;Sponsor Bitcoin Account&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Bitcoin Custodian is
a third-party limited purpose trust company that was chartered in 2018 upon receiving a trust charter from the New York Department of
Financial Services. The Bitcoin Custodian has among the longest track records in the industry of providing custodial services for digital
asset private keys. The Sponsor believes that the Bitcoin Custodian&rsquo;s policies, procedures, and controls for safekeeping, exclusively
possessing, and controlling the Trust&rsquo;s bitcoin holdings are consistent with industry best practices to protect against theft,
loss, and unauthorized and accidental use of the private keys. The Trust Bitcoin Account and Sponsor Bitcoin Account are segregated accounts
and are therefore not commingled with corporate or other customer assets.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trust may retain additional
bitcoin custodians from time to time pursuant to a bitcoin custodian agreement to perform certain services that are typical of a bitcoin
custodian. The Sponsor may, in its sole discretion, add or terminate bitcoin custodians at any time.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The Cash Custodian</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Bank of New York Mellon
also serves as the Cash Custodian pursuant to an agreement between it and the Trust (the &ldquo;Cash Custody Agreement&rdquo;). The Cash
Custodian is the custodian for the Trust&rsquo;s cash holdings. The Trust may retain additional cash custodians from time to time pursuant
to a cash custodian agreement to perform certain services that are typical of a cash custodian. The Sponsor may, in its sole discretion,
add or terminate cash custodians at any time.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

</DIV>


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<DIV STYLE="padding: 5.4pt; border: Black 1.5pt solid"><P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The Marketing Agent</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Foreside Fund Services, LLC
(the &ldquo;Marketing Agent&rdquo;) is responsible for: (1) working with the Transfer Agent to review and approve, or reject, purchase
and redemption orders of Shares placed by Authorized Participants with the Transfer Agent; and (2) reviewing and approving the marketing
materials prepared by the Trust for compliance with applicable U.S. Securities and Exchange Commission (&ldquo;SEC&rdquo;) and Financial
Industry Regulatory Authority (&ldquo;FINRA&rdquo;) advertising laws, rules, and regulations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Except for the specific,
limited circumstance and time in which the Trust is using the Agent Execution Model, the Trust, the Sponsor and the service providers
will not loan or pledge the Trust&rsquo;s assets, nor will the Trust&rsquo;s assets serve as collateral for any loan or similar arrangement.
During the specific, limited circumstance and time when the Trust is using the Agent Execution Model, the Trust&rsquo;s bitcoin may be
subject to a lien to secure outstanding Trade Credits in favor the Trade Credit Lender, as is discussed in further detail below.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Trust&rsquo;s Fees and Expenses</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trust pays a unitary
Sponsor Fee of 0.20% per annum of the Trust&rsquo;s bitcoin holdings.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">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
during which 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&rsquo;s total
bitcoin holdings, and the amount of bitcoin payable in respect of each daily accrual shall be determined by reference to the BRRNY.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The NAV of the Trust is reduced
each day by the amount of the Sponsor Fee calculated each day. On or about the last day of each month, an amount of bitcoin is 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. The Sponsor, from time to time, may temporarily waive all or a portion of the Sponsor Fee in
its sole discretion. To the extent not already disclosed in the prospectus, the Sponsor may notify Shareholders of its intent to commence,
or cease, waiving the Sponsor Fee on the Trust&rsquo;s website, in a prospectus supplement, through a current report on Form 8-K and/or
in the Trust&rsquo;s annual or quarterly reports.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">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&rsquo;s monthly fee
and out-of-pocket expenses, the fees of the Trust&rsquo;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 paid the costs of the
Trust&rsquo;s organization.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">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 (as defined below) and any IR Asset (as defined
below)), 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. The Administrator and/or the Sponsor will direct
the Bitcoin Custodian to transfer bitcoin from the Trust Bitcoin Account to the Sponsor Bitcoin Account to pay the Sponsor Fee and any
other Trust expenses not assumed by the Sponsor. To pay for expenses not assumed by the Sponsor that are denominated in U.S. dollars,
the Sponsor, on behalf of the Trust, may sell the Trust&rsquo;s bitcoin as necessary to pay such expenses.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Custody of the Trust&rsquo;s Assets</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trust&rsquo;s Bitcoin
Custodian maintains custody of all of the Trust&rsquo;s bitcoin, other than that which is maintained in a trading account (the &ldquo;Trading
Balance&rdquo;) with Coinbase, Inc. (&ldquo;Coinbase Inc.&rdquo; or the &ldquo;Prime Execution Agent&rdquo;, which is an affiliate of
the Bitcoin Custodian), in the Trust Bitcoin Account. The Trading Balance will only be used in the limited circumstances in which the
Trust is using the Agent Execution Model to effectuate the purchases and sales of bitcoin. The Bitcoin Custodian provides safekeeping
of digital assets using a multi-layer cold storage security platform designed to provide offline security of the digital assets held
by the Bitcoin Custodian. However, the Bitcoin Custodian is not a banking institution or otherwise a member of the Federal Deposit Insurance
Corporation (&ldquo;FDIC&rdquo;) and, therefore, deposits held with or assets held by the Bitcoin Custodian are not FDIC-insured. In
addition, neither the Trust nor the Sponsor insure the Trust&rsquo;s bitcoins. The Bitcoin Custodian has insurance coverage as a subsidiary
under its parent company, Coinbase Global, Inc., which procures fidelity (<I>e.g.</I>, crime) insurance to protect the organization from
risks such as theft of funds. Specifically, the fidelity program provides coverage for the theft of funds held in hot or cold storage.
The insurance program is provided by a syndicate of industry-leading insurers. The insurance program does not cover, insure or guarantee
the performance of the Trust.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

</DIV>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<DIV STYLE="padding: 5.4pt; border: Black 1.5pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The bitcoin in the Trust
Bitcoin Account may be held across multiple wallets, any of which will feature the following safety and security measures to be implemented
by the Bitcoin Custodian:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify"><I>Cold Storage</I>: Cold
                                            storage in the context of bitcoin means keeping the reserve of bitcoin offline, which is
                                            a widely-used security precaution, especially when dealing with large amount of bitcoin.
                                            Bitcoin held under custodianship with the Bitcoin Custodian will be kept in high-security,
                                            offline, multi-layer cold storage vaults. This means that the private keys, the cryptographic
                                            component that allows a user to access bitcoin, are stored offline on hardware that has never
                                            been connected to the internet. Storing the private key offline minimizes the risk of the
                                            bitcoin being stolen. The Sponsor expects that all of the Trust&rsquo;s bitcoin will be held
                                            in cold storage of the Bitcoin Custodian on an ongoing basis. In connection with creations
                                            or redemptions, the Trust will, under most circumstances, process redemptions by selling
                                            bitcoin from the portion of its bitcoin held in cold storage.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify"><I>Private Keys</I>: All private
                                            keys are securely stored using multiple layers of high-quality encryption and in Bitcoin
                                            Custodian-owned offline hardware vaults in secure environments. No customers or third parties
                                            are given access to the Bitcoin Custodian&rsquo;s private keys.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify"><I>Whitelisting</I>: Transactions
                                            are only sent to vetted, known addresses. The Bitcoin Custodian&rsquo;s platform supports
                                            pre-approval and test transactions. The Bitcoin Custodian requires authentication when adding
                                            or removing addresses for whitelisting. All instructions to initiate a whitelist addition
                                            or removal must be submitted via the Coinbase Custody platform. When a whitelist addition
                                            or removal request is initiated, the initiating user will be prompted to authenticate their
                                            request using a two-factor authentication key. A consensus mechanism on the Coinbase Custody
                                            platform dictates how many approvals are required in order for the consensus to be achieved
                                            to add or remove a whitelisted address. Only when the consensus is met is the underlying
                                            transaction considered officially approved. An account&rsquo;s roster and user roles are
                                            maintained by the Bitcoin Custodian in a separate log, an Authorized User List (&ldquo;AUL&rdquo;).
                                            Any changes to the account&rsquo;s roster must be reflected on an updated AUL first and executed
                                            by an authorized signatory.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify"><I>Audit Trails</I>: Audit
                                            trails exist for all movement of bitcoin within Bitcoin Custodian-controlled bitcoin wallets
                                            and are audited annually for accuracy and completeness by an independent external audit firm.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In addition to the above
measures, in accordance with the Bitcoin Custody Agreement, bitcoin held in custody with the Bitcoin Custodian is segregated from both
the proprietary property of the Bitcoin Custodian and the assets of any other customer in accounts that clearly identify the Trust as
the owner of the accounts.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Under the rare and limited
circumstances when the Trust is utilizing the Agent Execution Model to acquire bitcoin pursuant to a Cash Creation, a portion of the
Trust&rsquo;s bitcoin holdings and cash holdings may be held with the Prime Execution Agent in the Trading Balance. The Trust will only
utilize the Agent Execution Model when the Trust-Directed Trading Model is unavailable. Within the Trust&rsquo;s Trading Balance, the
Prime Execution Agreement provides that the Trust does not have an identifiable claim to any particular bitcoin (and cash). Instead,
the Trust&rsquo;s Trading Balance represents an entitlement to a pro rata share of the bitcoin (and cash) the Prime Execution Agent holds
on behalf of customers who hold similar entitlements against the Prime Execution Agent. In this way, the Trust&rsquo;s Trading Balance
represents an omnibus claim on the Prime Execution Agent&rsquo;s bitcoins (and cash) held on behalf of the Prime Execution Agent&rsquo;s
customers. The Prime Execution Agent holds the bitcoin associated with customer entitlements across a combination of omnibus cold wallets,
omnibus &ldquo;hot wallets&rdquo; (meaning wallets whose private keys are generated and stored online, in Internet-connected computers
or devices) or in omnibus accounts in the Prime Execution Agent&rsquo;s name on a trading venue (including third-party venues and the
Prime Execution Agent&rsquo;s own execution venue) where the Prime Execution Agent executes orders to buy and sell bitcoin on behalf
of its clients. Within such omnibus hot and cold wallets and accounts, the Prime Execution Agent has represented to the Sponsor that
it keeps the majority of assets in cold wallets, to promote security, while the balance of assets is kept in hot wallets to facilitate
rapid withdrawals. However, the Sponsor has no control over, and for security reasons the Prime Execution Agent does not disclose to
the Sponsor, the percentage of bitcoin that the Prime Execution Agent holds for customers holding similar entitlements as the Trust which
are kept in omnibus cold wallets, as compared to omnibus hot wallets or omnibus accounts in the Prime Execution Agent&rsquo;s name on
a trading venue. The Prime Execution Agent has represented to the Sponsor that the percentage of assets maintained in cold versus hot
storage is determined by ongoing risk analysis and market dynamics, in which the Prime Execution Agent attempts to balance anticipated
liquidity needs for its customers as a class against the anticipated greater security of cold storage.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

</DIV>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">To the extent that the Trust
engages an additional Bitcoin Custodian in the future (a &ldquo;Future Bitcoin Custodian,&rdquo; and with Coinbase Custody, the &ldquo;Bitcoin
Custodians&rdquo;), other than the bitcoin held with the Prime Execution Agent in the Trust&rsquo;s Trading Balance, the Sponsor will
allocate the Trust&rsquo;s bitcoin between the Trust Bitcoin Account at Coinbase Custody and the special account that holds the Trust&rsquo;s
bitcoin at the Future Bitcoin Custodian (the &ldquo;Future Trust Bitcoin Account,&rdquo; and with the Trust Bitcoin Account, the &ldquo;Trust
Bitcoin Accounts&rdquo;). In selecting a Future Bitcoin Custodian, the Sponsor, on behalf of the Trust, will consider a number of factors,
including, but not limited to, regulatory compliance, operational security, insurance coverage, institutional reputation, and demonstrated
experience safely storing large digital asset holdings. In determining the amount and percentage of the Trust&rsquo;s bitcoin to allocate
to each Trust Bitcoin Account, the Sponsor will consider (i) the concentration of the Trust&rsquo;s bitcoin at each Bitcoin Custodian,
(ii) the Sponsor&rsquo;s assessment of the safety and security policies and procedures of each Bitcoin Custodian, (iii) the insurance
policies of each Bitcoin Custodian, (iv) the fees and expenses associated with the storage of the Trust&rsquo;s bitcoin at each Bitcoin
Custodian, (v)&nbsp;the fees and expenses associated with the transfer to or from the Trust Bitcoin Account at each Bitcoin Custodian,
and (vi) any other factor the Sponsor deems relevant in making the allocation determination. The Sponsor does not intend to disclose
the amount or percentage of the Trust&rsquo;s bitcoin held at either Coinbase Custody or the Future Bitcoin Custodian, and the Sponsor
may change the allocation between the Bitcoin Custodians at any time and without notice to Shareholders. The fees and expenses associated
with the transfer of bitcoin between the Trust Bitcoin Account at each Bitcoin Custodian will be borne by the Sponsor, not the Trust
or the Shareholders. Any transfer of bitcoin between the Trust Bitcoin Accounts at each Bitcoin Custodian will occur &ldquo;on-chain&rdquo;
over the Bitcoin network. On-chain transactions are subject to all of the risks of the Bitcoin network, including the risk that transactions
will be made erroneously and are generally irreversible.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trust relies on the Cash
Custodian to hold any cash related to the Cash Creation and Cash Redemption of Shares, purchase or sale of bitcoin or held for payment
of expenses not assumed by the Sponsor.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Transfer Agent will facilitate
the settlement of Shares in response to the placement of purchase and redemption orders from Authorized Participants.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Plan of Distribution</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">When the Trust sells or redeems
its Shares, it does so in Baskets. The Trust only creates and redeems Baskets in transactions with Authorized Participants. In connection
with an order to purchase Shares pursuant to an In-Kind Creation (an &ldquo;In-Kind Creation Order&rdquo;), an Authorized Participant
shall deliver or cause to be delivered by an Authorized Participant Designee to the Bitcoin Custodian the amount of bitcoin represented
by the Basket Amount. In connection with an order to purchase Shares pursuant to a Cash Creation (a &ldquo;Cash Creation Order,&rdquo;
and, with In-Kind Creation Orders, &ldquo;Creation Orders&rdquo;), an Authorized Participant shall deliver to the Transfer Agent the
amount of U.S. dollars needed to purchase the Basket Amount of bitcoin, as well as the per-order transaction fee. In connection with
an order to redeem Shares, an Authorized Participant shall deliver or cause to be delivered to the Trust&rsquo;s account at DTC the Basket(s)
to be redeemed. To the extent such redemption order indicated that the redemption was to be done as an In-Kind Redemption (an &ldquo;In-Kind
Redemption Order&rdquo;), the Sponsor shall arrange for a Basket Amount of bitcoin to distributed to a bitcoin account designated by
the Authorized Participant or Authorized Participant Designee. To the extent such redemption order indicated that the redemption was
to be done as a Cash Redemption (a &ldquo;Cash Redemption Order,&rdquo; and, with In-Kind Redemption Orders, &ldquo;Redemption Orders&rdquo;),
the Sponsor shall arrange for the Basket Amount of bitcoin to be sold and the resulting U.S. dollars to be distributed to the Authorized
Participant. BNY Mellon will facilitate the processing of creation and redemption orders in Baskets from the Trust in its capacity as
Transfer Agent and will custody the Trust&rsquo;s cash holdings in its capacity as Cash Custodian.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Authorized Participants may
then offer Shares to the public at prices that depend on various factors, including the supply and demand for Shares, the value of the
Trust&rsquo;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.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Investors who decide to buy
or sell Shares will place their trade orders through their brokers and may incur customary brokerage commissions and charges. The Shares
are listed for trading on the Exchange under the ticker symbol &ldquo;BITB.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

</DIV>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<DIV STYLE="padding: 5.4pt; border: Black 1.5pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Federal Income Tax Considerations</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Owners of Shares are treated,
for U.S. federal income tax purposes, as if they owned a proportionate share of the assets of the Trust. They are also viewed as if they
directly received a proportionate share of any income of the Trust, or as if they had incurred a proportionate share of the expenses
of the Trust. Consequently, each sale of bitcoin by the Trust (which includes under current Internal Revenue Service (&ldquo;IRS&rdquo;)
guidance using bitcoin to pay expenses of the Trust) constitutes a taxable event to Shareholders. See &ldquo;United States Federal Income
Tax Consequences&mdash;Taxation of U.S. Shareholders.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Use of Proceeds</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Proceeds received by the
Trust in connection with the issuance of Baskets consist of bitcoin and cash. Deposits of bitcoin received by the Trust pursuant to an
In-Kind Creation are held by the Bitcoin Custodian on behalf of the Trust until (i) delivered out in connection with an In-Kind Redemption
of Baskets or (ii) caused to be transferred or sold by the Sponsor to pay fees due to the Sponsor and Trust expenses and liabilities
not assumed by the Sponsor. Deposits of cash proceeds received by the Trust in connection with Cash Creation Orders will be used to acquire
bitcoin. Such deposits of cash are held by the Cash Custodian on behalf of the Trust until (i) used to acquire bitcoin, (ii) accrued
and distributed to pay Trust expenses and liabilities not assumed by the Sponsor, (iii) distributed to Authorized Participants in connection
with Cash Redemptions of Baskets, or (iv) disposed of in a liquidation of the Trust.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Principal Investment Risks of an Investment
in the Trust</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">An investment in the Trust
involves risks. Investors may choose to use the Trust as means of investing indirectly in bitcoin. Because the value of the Shares is
correlated with the value of the bitcoin held by the Trust, it is important to understand the investment attributes of, and the market
for, bitcoin. As noted, there are significant risks and hazards inherent in the bitcoin market that may cause the price of bitcoin to
widely fluctuate. Investors considering a purchase of Shares should carefully consider how much of their total assets should be exposed
to the bitcoin market, and should fully understand, be willing to assume, and have the financial resources necessary to withstand, the
risks involved in the Trust&rsquo;s investment strategy, and be in a position to bear the potential loss of their entire investment in
the Trust.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Bitcoin is a relatively new
technological innovation with a limited history. There is no assurance that usage of the Bitcoin network or bitcoin will continue to
grow. A contraction in use or adoption of bitcoin may result in increased volatility or a reduction in the price of bitcoin, which could
adversely impact the value of the Shares. Sales of newly created or &ldquo;mined&rdquo; bitcoin may cause the price of bitcoin to decline,
which could negatively affect an investment in the Shares. Bitcoin markets have a limited history, bitcoin trading prices have exhibited
high levels of volatility, and in some cases such volatility has been sudden and extreme. Because of such volatility, Shareholders could
lose all or substantially all of their investment in the Trust. Regulation of the use of bitcoin and the Bitcoin network continues to
evolve in both the U.S. and foreign jurisdictions, which may restrict the use of bitcoin or otherwise impact the demand for bitcoin.
Disruptions at digital asset trading platforms could adversely affect the availability of bitcoin and the ability of Authorized Participants
to purchase or sell bitcoin and, therefore, their ability to create and redeem Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Custody of digital assets
such as bitcoin include unique risks of loss. The loss or destruction of private keys could prevent the Trust from accessing its bitcoin.
Loss of these private keys may be irreversible and could result in the loss of all or substantially all of an investment in the Trust.
Similarly, transactions on the Bitcoin network generally may not be reversed or corrected, meaning that errors in transactions from the
Trust Bitcoin Account could result in the loss of all or substantially all of an investment in the Trust.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">There is no assurance as
to whether the Trust will be profitable or meet its expenses and liabilities. Any investment made in the Trust may result in a total
loss of the investment.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trust&rsquo;s return
may not match the performance of the BRRNY because the Trust incurs operating expenses. The NAV of the Trust may not always correspond
to the market price of its Shares for a number of reasons, including price volatility, trading activity, normal trading hours for the
Trust, the calculation methodology of the NAV, and/or the closing of digital asset trading platforms due to fraud, failure, security
breaches or otherwise. As a result, Baskets may be created or redeemed at a U.S. dollar value that differs from the market price of the
Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

</DIV>


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<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center"><A NAME="a_002"></A>Risk
Factors</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><I>You should consider carefully
the risks described below before making an investment decision. You should also refer to the other information included in this prospectus,
as well as information found in documents incorporated by reference in this prospectus, before you decide to purchase any Shares. These
risk factors may be amended, supplemented or superseded from time to time by risk factors contained in any periodic report, prospectus
supplement, post-effective amendment or in other reports filed with the SEC in the future.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Risks Associated with Bitcoin and the Bitcoin
Network</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The trading prices
of many digital assets, including bitcoin, have experienced extreme volatility in recent periods and may continue to do so. Extreme volatility
in the future, including further declines in the trading price 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.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-weight: normal">The
trading prices of many digital assets, including bitcoin, have experienced extreme volatility in recent periods and may continue to do
so. For instance, there were steep increases in the value of certain digital assets, including bitcoin, over the course of 2017, followed
by steep drawdowns throughout 2018 in digital asset trading prices, including for bitcoin. These drawdowns notwithstanding, digital asset
prices, including bitcoin, increased significantly again during 2019, decreased significantly again in the first quarter of 2020 amidst
broader market declines as a result of the novel coronavirus outbreak, and increased significantly again over the remainder of 2020 and
the first quarter of 2021. Digital asset prices, including bitcoin, experienced significant and sudden changes throughout 2021 followed
by steep drawdowns in the fourth quarter of 2021 and throughout 2022. Digital asset prices again experienced steep increases in value
in 2024 before suffering steep drawdowns in early 2025.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-weight: normal">Extreme
volatility in the future, including further declines in the trading price 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. Furthermore, negative perception and a lack of stability
and standardized regulation in the digital asset economy may reduce confidence in the digital asset economy and may result in greater
volatility in the price of bitcoin and other digital assets, including a depreciation in value. The Trust is not actively managed and
will not take any actions to take advantage, or mitigate the impacts, of volatility in the price of bitcoin.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The further development
and acceptance of the Bitcoin network and other digital asset networks, which represent a new and rapidly changing industry, are subject
to a variety of factors that are difficult to evaluate. The slowing or stopping of the development or acceptance of the Bitcoin network
may adversely affect an investment in the Shares.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Digital assets such as bitcoin
may be used, among other things, to buy and sell goods and services or to transfer and store value by users. The Bitcoin network and
other digital asset networks are a new and rapidly evolving industry of which the Bitcoin network is a prominent, but not unique, part.
The growth of the digital asset industry in general, and the Bitcoin network in particular, is subject to a high degree of uncertainty.
The factors affecting the further development of the digital asset industry, as well as the Bitcoin network, include:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">continued worldwide growth
                                            in the adoption and use of bitcoin and other digital assets, including those competitive
                                            with bitcoin;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">government and quasi-government
                                            regulation of bitcoin and other digital assets and their use, or restrictions on or regulation
                                            of access to and operation of the Bitcoin network or similar digital asset systems;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">the maintenance and development
                                            of the open-source software protocol of the Bitcoin network;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">changes in consumer demographics
                                            and public tastes and preferences;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">the availability and popularity
                                            of other forms or methods of buying and selling goods and services, including new means of
                                            using fiat currencies; and</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">general economic conditions
                                            and the regulatory environment relating to digital assets and digital asset service providers.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trust is not actively
managed and will not employ any strategy relating to the development of the Bitcoin network. Furthermore, the Sponsor cannot be certain
as to the impact of the listing of the Trust and the expansion of its bitcoin holdings on the digital asset industry and the Bitcoin
network. A decline in the popularity or acceptance of the Bitcoin network may harm the price of the Shares. There is no assurance that
the Bitcoin network, or the service providers necessary to accommodate it, will continue in existence or grow. Furthermore, there is
no assurance that the availability of and access to digital asset service providers will not be negatively affected by government regulation
or supply and demand of bitcoin.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Bitcoin is a
technological innovation with a limited operating history, and the medium-to-long term value of the Shares is subject to a number of
factors relating to the capabilities and development of blockchain technologies and to the fundamental investment characteristics of
digital assets.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The value of the Shares is
directly related to the value of bitcoin held by the Trust. Bitcoin has a limited history of operations. The Bitcoin network launched
in 2009 and priced transactions in bitcoin began in approximately 2011. As a result, there is a limited performance record for the price
of bitcoin on the bitcoin market that can provide an adequate basis for evaluating an investment in bitcoin. Although past performance
is not necessarily indicative of future results, if bitcoin markets had a more established history, such history might (or might not)
provide investors with more information on which to evaluate an investment in the Trust.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The price of bitcoin has
fluctuated significantly. Several factors may impact the price of bitcoin, including, but not limited to the following:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">Global bitcoin demand, which
                                            is influenced numerous factors including the growth of retail merchants&rsquo; and commercial
                                            businesses&rsquo; acceptance of bitcoin as payment, the security of digital asset trading
                                            platforms and public Bitcoin addresses that hold bitcoin, the perception that the use and
                                            holding of bitcoin is safe and secure, the lack of regulatory restrictions on their use,
                                            and the reputation regarding the use of bitcoin for illicit purposes;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">Global bitcoin supply, which
                                            is influenced by the total bitcoin in existence and similar factors as global bitcoin demand,
                                            in addition to fiat currency needs by miners and taxpayers who may liquidate bitcoin holdings
                                            to meet tax obligations;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">Investors&rsquo; expectations
                                            with respect to the rate of inflation of fiat currencies;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">Interest rates;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">Currency exchange rates, including
                                            the rates at which bitcoin may be exchanged for fiat currencies;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">Interruptions in service from,
                                            theft at or failures of the digital asset trading platforms, digital asset custodians and
                                            other digital asset service providers;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">Investment and trading activities
                                            of large investors, including private and registered funds, that may directly or indirectly
                                            invest in bitcoin;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">Monetary policies of governments,
                                            trade restrictions, currency devaluations and revaluations;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">Regulatory measures, if any,
                                            that restrict the use of bitcoin or the Bitcoin network;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">The availability of companies
                                            providing bitcoin-related services;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">The maintenance and development
                                            of the open-source software protocol of the Bitcoin network;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">Contentious hard forks of
                                            the Bitcoin network;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">Increased competition from
                                            other forms of digital assets or means of payments;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">Global or regional political,
                                            economic or financial events and situations, including, without limitation, major market
                                            disruptions in equity or commodity markets;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">Expectations among Bitcoin
                                            economy participants that the value of bitcoin will soon change; and</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">Fees, including miners&rsquo;
                                            fees, associated with processing bitcoin transactions.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In addition, investors should
be aware that there is no assurance that bitcoin will maintain its long-term value in terms of purchasing power in the future or that
the acceptance of bitcoin for payments by mainstream retail merchants and commercial businesses will continue to grow. In the event that
the price of bitcoin declines, the Sponsor expects the value of an investment in the Shares to decline proportionately.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The platforms
on which users trade bitcoin are relatively new and, in some cases, largely unregulated, or to the extent that such platforms are regulated,
may be operating out of compliance with applicable regulations. Therefore, such platforms may be more exposed to fraud and security breaches
than established, regulated exchanges for other financial assets or instruments, which could have a negative impact on the performance
of the Trust.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Over the past several years,
a number of digital asset trading platforms have been closed or faced issues due to fraud, failure, security breaches or governmental
regulations. Particularly for operators outside of the U.S., digital asset trading platforms are not regulated in ways similar to national
securities exchanges and other highly-regulated trading environments. As a result, capital requirements, clearing infrastructure and
technical and operational security requirements may vary. The nature of the assets held at digital asset trading platforms makes them
appealing targets for hackers and a number of digital asset trading platforms have been victims of cybercrimes. In many of these instances,
the customers of such digital asset trading platforms were not compensated or made whole for the partial or complete losses of their
account balances in such trading platforms. No digital asset trading platform is immune from these risks. While the Trust itself does
not buy or sell bitcoin on digital asset trading platforms, the loss of confidence in digital asset trading platforms and in the bitcoin
market overall can reduce the mass adoption of bitcoin. Further, the failure of the bitcoin market, major digital asset trading platforms
or any other major component of the overall bitcoin ecosystem can have an adverse effect on the liquidity and price of bitcoin and could
therefore have a negative impact on the performance of the Trust.</P>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">A decline in
the adoption of bitcoin and the Bitcoin network could negatively impact the performance of the Trust.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Bitcoin&rsquo;s adoption
has been increasing since bitcoin first gained mass media attention in 2013. It is increasingly accepted as a form of payment in the
U.S. and abroad, and is gaining widespread use as a non-sovereign store of value for investors. Adoption, however, has been limited in
some respects when compared with the increase in the price of bitcoin. The continued adoption of bitcoin will require growth in its usage
and in the usage of the Bitcoin network for various applications, as well as an accommodating regulatory environment, including with
respect to the tax treatment of transactions denominated in bitcoin. In addition, alternative forms of digital assets and innovations
in legacy payments systems may reduce use of the Bitcoin network and demand for bitcoin. A lack of expansion in usage of bitcoin and
the Bitcoin network could adversely affect the market for bitcoin and may have a negative impact on an investment in the Shares. Even
if growth in bitcoin adoption continues in the near or medium-term, there is no assurance that bitcoin usage will continue to grow over
the long-term. A contraction in use of bitcoin may result in increased volatility or a reduction in the price of bitcoin, which could
adversely impact the value of an investment in the Trust.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The open-source
and decentralized nature of the Bitcoin network development reduces certainty in the development of Bitcoin network protocols and software.
In addition, the lack of direct compensation for core developers and general difficulty of achieving decentralized consensus around protocol
upgrades may hinder the development of beneficial upgrades to the Bitcoin network. Development uncertainty and inflexibility in respect
of improving or proposing fixes to the Bitcoin network could negatively impact the performance of the Trust.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Bitcoin network is an
open-source decentralized project without a controlling issuer or administrator of software development. As a result, core developers
contribute their time and propose upgrades and improvements to the Bitcoin network protocols and various software implementations thereof,
often on the Bitcoin repository on the website Github. Core developers&rsquo; roles evolve over time, largely based on self-determined
participation. Core developers are not generally compensated for their work on the Bitcoin network, and such developers may cease to
provide services or migrate to alternate digital asset networks. In addition, a lack of resources may result in an inability of the Bitcoin
network community to address novel technical issues or to achieve consensus around solutions therefor.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">As with other digital asset
networks, the Bitcoin network faces significant scaling challenges due to the fact that public blockchains generally face a tradeoff
between security and scalability. One means through which public blockchains achieve security is decentralization, meaning that no intermediary
is responsible for securing and maintaining these systems. For example, a greater degree of decentralization generally means a given
digital asset network is less susceptible to manipulation or capture. In practice, this typically means that every single node on a given
digital asset network is responsible for securing the system by processing every transaction and maintaining a copy of the entire state
of the network. As a result, a digital asset network may be limited in the number of transactions it can process by the capabilities
of each single fully participating node. The Bitcoin network community has failed to achieve consensus around the scaling of the Bitcoin
network to increase transaction throughput and reduce Bitcoin blockchain bloat. In 2017, the scaling debate resulted in a material, contentious
&ldquo;hard fork&rdquo; (as described below) and a variety of proposals for upgrades to the Bitcoin network protocols to allow for more
efficient transaction recording. Both hard forks and software upgrades to address scaling may cause confusion or may not result in needed
improvements, each of which could have a negative impact on the value of an investment in the Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Moreover, in the past, flaws
in the source code for digital assets have been exposed and exploited, including flaws that disabled some functionality for users, exposed
users&rsquo; personal information and/or resulted in the theft of users&rsquo; digital assets. The cryptography underlying bitcoin could
prove to be flawed or ineffective, or developments in mathematics and/or technology, including advances in digital computing, algebraic
geometry and quantum computing, could result in such cryptography becoming ineffective. In any of these circumstances, a malicious actor
may be able to take the Trust&rsquo;s bitcoin, which would adversely impact the value of the Shares. Moreover, functionality of the bitcoin
network may be negatively affected such that it is no longer attractive to users, thereby dampening demand for bitcoin. Even if another
digital asset other than bitcoin were affected by similar circumstances, any reduction in confidence in the source code or cryptography
underlying digital assets generally could negatively affect the demand for digital assets and therefore adversely affect the value of
the Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Finally, as there is no centralized
party controlling the development of the Bitcoin network, there can be no assurance that the community as a whole will not implement
changes to the Bitcoin network protocols that have an adverse impact on the Trust or an investment in the Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><I>Recent developments
in the digital asset economy have led to extreme volatility and disruption in digital asset markets, a loss of confidence in participants
of the digital asset ecosystem, significant negative publicity surrounding digital assets broadly and market-wide declines in liquidity.</I></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-weight: normal">Beginning
in the fourth quarter of 2021 and continuing to date, digital asset prices have fluctuated widely. This has led to volatility and disruption
in the digital asset markets and financial difficulties for several prominent industry participants, including digital asset trading
platforms, hedge funds and lending platforms. For example, in the first half of 2022, digital asset lenders Celsius Network LLC and Voyager
Digital Ltd. and digital asset hedge fund Three Arrows Capital each declared bankruptcy, and the stablecoin TerraUSD collapsed. These
events caused a loss of confidence in participants in the digital asset ecosystem, negative publicity surrounding digital assets more
broadly and market-wide declines in digital asset trading prices and liquidity.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-weight: normal">Thereafter,
in November 2022, FTX, the third largest digital asset trading platform by volume at the time, halted customer withdrawals amid rumors
of the company&rsquo;s liquidity issues and likely insolvency. Shortly thereafter, FTX&rsquo;s CEO resigned and FTX and numerous affiliates
of FTX filed for bankruptcy. The U.S. Department of Justice subsequently brought criminal charges, including charges of fraud, violations
of federal securities laws, money laundering, and campaign finance offenses, against FTX&rsquo;s former CEO and others. In November 2023,
FTX&rsquo;s former CEO was convicted of fraud and money laundering. Similar charges related to violations of anti-money laundering laws
were brought in November 2023 against Binance and its former CEO. FTX is also under investigation by the SEC, the Justice Department,
and the Commodity Futures Trading Commission, as well as by various regulatory authorities in the Bahamas, Europe and other jurisdictions.
In response to these events, the digital asset markets have experienced extreme price volatility and declines in liquidity, and regulatory
and enforcement scrutiny has increased, including from the DOJ, the SEC, the CFTC, the White House and Congress. In addition, several
other entities in the digital asset industry filed for bankruptcy following FTX&rsquo;s bankruptcy filing, such as BlockFi Inc. and Genesis
Global Capital, LLC. The SEC also brought charges against Genesis Global Capital, LLC and Gemini Trust Company, LLC on January 12, 2023
for their alleged unregistered offer and sale of securities to retail investors. In October 2023, the New York Attorney General brought
charges against Gemini, Genesis Global Capital and numerous affiliates of Genesis Global Capital, and Digital Currency Group alleging
violations of law relating to the Gemini Earn program. In May 2024, the Bankruptcy Court of the Southern District of New York approved
a settlement of the charges with the Genesis entities.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-weight: normal">These
events have resulted in calls for heightened scrutiny and regulation of the digital asset industry, with a specific focus on digital
asset trading platforms, and custodians. For example, in June 2023, the SEC brought charges against Binance (the &ldquo;Binance Complaint&rdquo;)
and Coinbase (the &ldquo;Coinbase Complaint&rdquo;), two of the largest digital asset trading platforms, alleging that they solicited
U.S. investors to buy, sell, and trade &ldquo;crypto asset securities&rdquo; through their unregistered trading platforms and operated
unregistered securities exchanges, brokerages and clearing agencies. Binance subsequently announced that it would be suspending USD deposits
and withdrawals on Binance.US and that it plans to delist its USD trading pairs. In addition, in November 2023, the SEC brought similar
charges against Kraken (the &ldquo;Kraken Complaint&rdquo;), alleging that it operated as an unregistered securities exchange, brokerage
and clearing agency. The Binance Complaint, the Coinbase Complaint and the Kraken Complaint have led, and may in the future lead, to
further volatility in digital asset prices. In January 2025, the SEC launched the Crypto Task Force dedicated to developing a comprehensive
and clear regulatory framework for digital assets led by Commissioner Hester Peirce. Subsequently, Commissioner Peirce announced a list
of specific priorities to further that initiative, which included pursuing final rules related to a digital asset&rsquo;s security status,
a revised path to registered offerings and listings for digital asset-based investment vehicles, and clarity regarding digital asset
custody, lending and staking. In February 2025, a 60-day stay was granted in the SEC&rsquo;s lawsuit against Binance in response to a
joint request by both the SEC and Binance, which acknowledged that the SEC&rsquo;s newly formed Crypto Task Force&rsquo;s focus on developing
a federal securities law framework for digital assets may resolve the case. In February 2025, Coinbase and the SEC entered into a joint
stipulation to dismiss the SEC&rsquo;s lawsuit with prejudice, subject to the court&rsquo;s approval. Kraken has also announced that
it reached an agreement in principle with the SEC to dismiss the SEC&rsquo;s lawsuit, subject to formal approval by the SEC&rsquo;s Commissioners.
Several other digital asset market participants have also announced that the SEC informed them that the SEC was terminating its investigation
or enforcement action into their firm. The final outcome of these lawsuits (to the extent not yet dismissed), their effect on the broader
digital asset ecosystem and the reputational impact on industry participants, remain uncertain.</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-weight: normal">The
U.S. regulatory regime &ndash; namely the Federal Reserve Board, U.S. Congress and certain U.S. agencies (e.g., the SEC, the CFTC, FinCEN,
the Office of the Comptroller of the Currency, the FDIC and the Federal Bureau of Investigation) as well as the White House have issued
reports and releases concerning digital assets, including bitcoin and digital asset markets. However, the extent and content of any forthcoming
laws and regulations are not yet ascertainable with certainty, and it may not be ascertainable in the near future. It is possible that
new laws and increased regulation and regulatory scrutiny may require the Trust to comply with certain regulatory regimes, which could
result in new costs for the Trust. The Trust may have to devote increased time and attention to regulatory matters, which could increase
costs to the Trust. New laws, regulations and regulatory actions could significantly restrict or eliminate the market for, or uses of,
digital assets including bitcoin, which could have a negative effect on the value of bitcoin, which in turn would have a negative effect
on the value of the Trust&rsquo;s Shares.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-weight: normal">These
events are continuing to develop at a rapid pace and it is not possible to predict at this time all of the risks that they may pose to
the Sponsor, the Trust, their affiliates and/or the Trust&rsquo;s third-party service providers, or to the digital asset industry as
a whole.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Continued disruption and
instability in the digital asset markets as these events develop, including further declines in the trading prices and liquidity 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.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>Mathematical or technological
advances could undermine the Bitcoin network&rsquo;s consensus mechanism. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Bitcoin network is premised
on several persons competing to solve cryptographic puzzles rapidly. It is possible that mathematical or technological advances, such
as the development of quantum computers with significantly more power than computers presently available, could undermine or destroy
the cryptographic consensus mechanism underpinning the Bitcoin blockchain. Quantum computing technology is an emerging phenomenon and
is still developing which makes it difficult to predict its ultimate effect on the future value of bitcoin and other digital assets.
Nonethless, recent announcements by computer technology companies have suggested that quantum computing technology may be advancing faster
than previously anticipated. For example, in February 2025, Microsoft announced its Majorana 1 chip, which is claimed to have the potential
to support a one-million-qubit quantum computer. If quantum computing technology is able to advance and significantly increase its capacity
relative to the capacity of today&rsquo;s leading quantum computers, it could potentially undermine the viability of many of the cryptographic
algorithms used across the world&rsquo;s information technology infrastructure, including the cryptographic algorithms used for digital
assets like bitcoin. If quantum computing is able to advance in that way, there is a risk that quantum computing could result in the
cryptography underlying the Bitcoin network becoming ineffective, which, if realized, could compromise the security of the Bitcoin network,
or allow a malicious actor to compromise the wallets holding bitcoin owned by the Trust or others on the Bitcoin network, which would
result in losses to Shareholders. While various actors in the Bitcoin community are taking steps to enable the uses of cryptographic
algorithms that would be resistant to advanced quantum computers, there is no guarantee that new quantum-proof architectures will be
built and appropriate transitions will be implemented across the network at scale in a timely manner; any such changes could require
the achievement of broad consensus within the Bitcoin network community and a fork (or multiple forks), and there can be no assurance
that such consensus would be achieved or the changes implemented successfully. If any of the foregoing were to occur, it could result
in losses to Shareholders. In any of these circumstances, a malicious actor may be able to compromise the security of the Bitcoin network
or take the Trust&rsquo;s bitcoin, which would adversely affect the value of the Shares. Moreover, the functionality of the Bitcoin network
may be negatively affected such that it is no longer attractive to users, thereby dampening demand for bitcoin. Even if another digital
asset other than bitcoin were affected by similar circumstances, any reduction in confidence in the source code or cryptography underlying
digital assets generally could negatively affect the demand for digital assets and therefore adversely affect the value of the Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">A disruption
of the Internet may affect the operation of the Bitcoin network, which may adversely affect the digital asset industry and an investment
in the Trust.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Bitcoin network relies
on the Internet. A significant disruption of Internet connectivity could disrupt the Bitcoin network&rsquo;s functionality until such
disruption is resolved. A disruption in the Internet could adversely affect an investment in the Trust or the ability of the Trust to
operate. In particular, some variants of digital assets have experienced a number of denial-of-service attacks, which have led to temporary
delays in block creation and digital asset transfers.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Digital assets are also susceptible
to border gateway protocol hijacking (&ldquo;BGP hijacking&rdquo;). Such an attack can be a very effective way for an attacker to intercept
traffic en route to a legitimate destination. BGP hijacking impacts the way different nodes and miners are connected to one another to
isolate portions of them from the remainder of the network, which could lead to a risk of the network allowing double-spending and other
security issues. If BGP hijacking occurs on the Bitcoin network, participants may lose faith in the security of Bitcoin, which could
affect bitcoin&rsquo;s value and consequently the value of the Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Any Internet failures or
Internet connectivity-related attacks that impact the ability to transfer bitcoin could have a material adverse effect on the price of
bitcoin and the value of an investment in the Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The scheduled
creation of newly mined bitcoin and their subsequent sale may cause the price of bitcoin to decline, which could negatively affect an
investment in the Trust.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Newly created bitcoin (&ldquo;newly
mined bitcoin&rdquo;) are generated through a process referred to as &ldquo;mining.&rdquo; As of the date of this prospectus, the Bitcoin
network creates 3.125 bitcoin with each block added to the Bitcoin blockchain; these newly mined bitcoin are awarded to the bitcoin miner
that has added the block to the Bitcoin blockchain, which occurs on average approximately every 10 minutes. When the recipient makes
newly mined bitcoin available for sale, there can be downward pressure on the price of bitcoin as the new supply is introduced into the
Bitcoin market. A bitcoin mining operation may be more likely to sell a higher percentage of its newly created bitcoin, and more rapidly
so, if it is operating at a low profit margin, thus reducing the price of bitcoin. Lower bitcoin prices may result in further tightening
of profit margins for miners and decreasing profitability, thereby potentially causing even further selling pressure. Diminishing profit
margins and increasing sales of newly mined bitcoin could result in a reduction in the price of bitcoin, which could adversely impact
an investment in the Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In addition, bitcoin mining
is highly sensitive to energy prices and bitcoin market prices. To mine bitcoin, a bitcoin miner acquires specialized computers that
consume significant amounts of energy. As energy prices fluctuate, the marginal cost of bitcoin mining increases and decreases. Conversely,
the price of bitcoin and amount of &ldquo;hashrate&rdquo; being expended by other bitcoin miners will impact the profitability and likelihood
of solving a block and receiving newly mined bitcoin. If the marginal cost of bitcoin mining exceeds the expected profit, miners may
cease to expend energy to mine bitcoin. If a material number of miners turn off their mining hardware, the speed of transaction processing
on the Bitcoin network may experience a temporary slowdown and the overall security of the Bitcoin network against a 51% attack (as described
below) may be reduced.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The loss or destruction
of a private key required to access bitcoin may be irreversible. The Bitcoin Custodian&rsquo;s loss of access to a private key associated
with the Trust&rsquo;s bitcoin could adversely affect an investment in the Shares.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Transfers of bitcoin among
users are accomplished via bitcoin transactions (i.e., sending bitcoin from one user to another). The creation of a bitcoin transaction
requires the use of a unique numerical code known as a &ldquo;private key.&rdquo; In the absence of the correct private key corresponding
to a holder&rsquo;s particular bitcoin, the bitcoin is inaccessible. The custody of the Trust&rsquo;s bitcoin is handled by the Bitcoin
Custodian, and the transfer of bitcoin to and from Authorized Participants is directed by the Sponsor. The Sponsor has evaluated the
procedures and internal controls of the Trust&rsquo;s Bitcoin Custodian to safeguard the Trust&rsquo;s bitcoin holdings. If the Bitcoin
Custodian&rsquo;s internal procedures and controls are inadequate to safeguard the Trust&rsquo;s bitcoin holdings, and the Trust&rsquo;s
private key(s) is (are) lost, destroyed or otherwise compromised and no backup of the private key(s) is (are) accessible, the Trust will
be unable to access its bitcoin, which could adversely affect an investment in the Shares. In addition, if the Trust&rsquo;s private
key(s) is (are) misappropriated and the Trust&rsquo;s bitcoin holdings are stolen, the Trust could lose some or all of its bitcoin holdings,
which could adversely impact an investment in the Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">New competing
digital assets may pose a challenge to bitcoin&rsquo;s current market dominance, resulting in a reduction in demand for bitcoin, which
could have a negative impact on the price of bitcoin and may have a negative impact on the performance of the Trust.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Bitcoin network and bitcoin,
as an asset, hold a &ldquo;first-to-market&rdquo; advantage over other digital assets. This first-to-market advantage has resulted in
the Bitcoin network having the broadest adoption and the estimated value of existing bitcoin is greater than the aggregate value of any
digital asset. The Bitcoin network enjoys the largest user base and has more mining power in use to secure the Bitcoin blockchain than
any other digital asset network. Having a large mining network provides users greater confidence in the security and long-term stability
of the Bitcoin network. This greater security may create a snowball effect that inures to the benefit of the Bitcoin network &ndash;
namely, the advantage of more users and miners makes a digital asset more secure, which potentially makes it more attractive to new users
and miners, resulting in a network effect that potentially strengthens the first-to-market advantage. However, despite the marked first-mover
advantage of the Bitcoin network over other digital assets, it is possible that real or perceived shortcomings in the Bitcoin network,
or technological, regulatory or other developments, could result in a decline in popularity and acceptance of bitcoin and the Bitcoin
network, and other digital assets and digital asset networks could become more widely accepted and used than the Bitcoin network. In
addition, central bank digital currencies may be attractive to some users due to lesser perceived volatility, greater trustworthiness
and/or any applicable federal insurance.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">For example, the Bitcoin
network relies on a distributed group of core developers to propose upgrades to the Bitcoin software and protocols. Some proposed upgrades
that might result in a &ldquo;hard fork&rdquo; of the Bitcoin network require overwhelming consensus and upgrade acceptance in order
to deploy successfully. As a result, changes in the Bitcoin software have been conservative or slow to gain traction. For example, a
delay in the integration of protocol upgrades that might facilitate the use of more complex &ldquo;smart contract&rdquo; programming
language in Bitcoin led to certain developers launching the newer Ethereum virtual machine network in 2015. Similarly, a delay in the
integration and inability to reach consensus on scaling solutions led to several hard forks of digital asset networks that had greater
block sizes on their blockchains (e.g., Bitcoin Cash in 2017). While projects such as Rootstock and Blockstream have sought to augment
the slow pace of core software upgrades with &ldquo;second-layer&rdquo; or &ldquo;side-chain&rdquo; solutions for the Bitcoin network,
digital asset networks with features that are differentiated from Bitcoin may attract developers, investors and users, which may have
a negative impact on an investment in the Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Competition from
central bank digital currencies (&ldquo;CBDCs&rdquo;) and emerging payments initiatives involving financial institutions could adversely
affect the value of bitcoins and other digital assets.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Central banks in various
countries have introduced digital forms of legal tender (CBDCs). Whether or not they incorporate blockchain or similar technology, CBDCs,
as legal tender in the issuing jurisdiction, could have an advantage in competing with, or replace, bitcoin and other cryptocurrencies
as a medium of exchange or store of value. Central banks and other governmental entities have also announced cooperative initiatives
and consortia with private sector entities, with the goal of leveraging blockchain and other technology to reduce friction in cross-border
and interbank payments and settlement, and commercial banks and other financial institutions have also recently announced a number of
initiatives of their own to incorporate new technologies, including blockchain and similar technologies, into their payments and settlement
activities, which could compete with, or reduce the demand for, bitcoin. As a result of any of the foregoing factors, the value of bitcoin
could decrease, which could adversely affect an investment in the Trust.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Prices of bitcoin
may be affected due to stablecoins (including Tether and USDC), the activities of stablecoin issuers and their regulatory treatment.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">While the Trust does not
invest in stablecoins, it may nonetheless be exposed to risks that stablecoins pose for the bitcoin market and other digital asset markets.
Stablecoins are digital assets designed to have a stable value over time as compared to typically volatile digital assets, and are typically
marketed as being pegged to a fiat currency, such as the U.S. dollar, at a certain value. Although the prices of stablecoins are intended
to be stable, their market value may fluctuate. This volatility has in the past apparently impacted the price of bitcoin. Stablecoins
are a relatively new phenomenon, and it is impossible to know all of the risks that they could pose to participants in the bitcoin market.
In addition, some have argued that some stablecoins, particularly Tether, are improperly issued without sufficient backing in a way that,
when the stablecoin is used to pay for bitcoin, could cause artificial rather than genuine demand for bitcoin, artificially inflating
the price of bitcoin, and also argue that those associated with certain stablecoins may be involved in laundering money. On February
17, 2021, the New York Attorney General entered into an agreement with Tether&rsquo;s operators, requiring them to cease any further
trading activity with New York persons and pay $18.5 million in penalties for false and misleading statements made regarding the assets
backing Tether. On October 15, 2021, the CFTC announced a settlement with Tether&rsquo;s operators in which they agreed to pay $42.5
million in fines to settle charges that, among others, Tether&rsquo;s claims that it maintained sufficient U.S. dollar reserves to back
every Tether stablecoin in circulation with the &ldquo;equivalent amount of corresponding fiat currency&rdquo; held by Tether were untrue.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">USDC is a reserve-backed
stablecoin issued by Circle Internet Financial that is commonly used as a method of payment in digital asset markets, including the bitcoin
market. An affiliate of the Sponsor acts as investment manager to a money market fund, the Circle Reserve Fund, which the issuer of USDC
uses to hold cash, U.S. Treasury bills, notes and other obligations issued or guaranteed as to principal and interest by the U.S. Treasury,
and repurchase agreements secured by such obligations or cash, which serve as reserves backing USDC stablecoins. While USDC is designed
to maintain a stable value at 1 U.S. dollar at all times, on March 10, 2023, the value of USDC fell below $1.00 for multiple days after
Circle Internet Financial disclosed that US$3.3 billion of the USDC reserves were held at Silicon Valley Bank, which had entered FDIC
receivership earlier that day. Stablecoins are reliant on the U.S. banking system and U.S. treasuries, and the failure of either to function
normally could impede the function of stablecoins, and therefore could adversely affect the value of the Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Given the foundational role
that stablecoins play in global digital asset markets, their fundamental liquidity can have a dramatic impact on the broader digital
asset market, including the market for bitcoin. Because a large portion of the digital asset market still depends on stablecoins such
as Tether and USDC, there is a risk that a disorderly de-pegging or a run on Tether or USDC could lead to dramatic market volatility
in digital assets more broadly. Volatility in stablecoins, operational issues with stablecoins (for example, technical issues that prevent
settlement), concerns about the sufficiency of any reserves that support stablecoins or potential manipulative activity when unbacked
stablecoins are used to pay for other digital assets (including bitcoin), or regulatory concerns about stablecoin issuers or intermediaries,
such as exchanges, that support stablecoins, could impact individuals&rsquo; willingness to trade on trading venues that rely on stablecoins,
reduce liquidity in the bitcoin market, and affect the value of bitcoin, and in turn impact an investment in the Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Anonymity and
illicit financing risk.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Although transaction details
of peer-to-peer transactions are recorded on the Bitcoin blockchain, a buyer or seller of digital assets on a peer-to-peer basis directly
on the Bitcoin network may never know to whom the public key belongs or the true identity of the party with whom it is transacting. Public
key addresses are randomized sequences of alphanumeric characters that, standing alone, do not provide sufficient information to identify
users. In addition, certain technologies may obscure the origin or chain of custody of digital assets. The opaque nature of the market
poses asset verification challenges for market participants, regulators and auditors and gives rise to an increased risk of manipulation
and fraud, including the potential for Ponzi schemes, bucket shops and pump and dump schemes. Digital assets have in the past been used
to facilitate illicit activities. If a digital asset was used to facilitate illicit activities, businesses that facilitate transactions
in such digital assets could be at increased risk of potential criminal or civil liability or lawsuits, or of having banking or other
services cut off, and such digital asset could be removed from digital asset platforms. Any of the aforementioned occurrences could adversely
affect the price of the relevant digital asset, the attractiveness of the respective blockchain network and an investment in the Shares.
If the Trust or the Sponsor were to transact with a sanctioned entity, the Trust or the Sponsor would be at risk of potential criminal
or civil lawsuits or liability.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trust takes measures
with the objective of reducing illicit financing risks in connection with the Trust&rsquo;s activities. However, illicit financing risks
are present in the digital asset markets, including markets for bitcoin. There can be no assurance that the measures employed by the
Trust will prove successful in reducing illicit financing risks, and the Trust is subject to the complex illicit financing risks and
vulnerabilities present in the digital asset markets. If such risks eventuate, the Trust, the Sponsor or their affiliates could face
civil or criminal liability, fines, penalties, or other punishments, be subject to investigation, have their assets frozen, lose access
to banking services or services provided by other service providers, or suffer disruptions to their operations, any of which could negatively
affect the Trust&rsquo;s ability to operate or cause losses in value of the Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trust and Sponsor have
adopted and implemented policies and procedures that are designed to comply with applicable anti-money laundering laws and sanctions
laws and regulations, including applicable know-your-customer (&ldquo;KYC&rdquo;) laws and regulations. The Sponsor and the Trust will
only interact with known third-party service providers with respect to whom the Sponsor or its affiliates have engaged in a thorough
due diligence process and or a thorough KYC process, such as the Authorized Participants, Bitcoin Trading Counterparties, Prime Execution
Agent and Bitcoin Custodian. The Prime Execution Agent and Bitcoin Custodian must undergo counterparty due diligence by the Sponsor.
Each Authorized Participant must undergo onboarding by the Sponsor prior to placing creation or redemption orders with respect to the
Trust.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Furthermore, Authorized Participants,
as broker-dealers, and the Prime Execution Agent and Bitcoin Custodian, as entities licensed to conduct virtual currency business activity
by the New York Department of Financial Services and a limited purpose trust company subject to New York Banking Law, respectively, are
&ldquo;financial institutions&rdquo; subject to the U.S. Bank Secrecy Act, as amended (&ldquo;BSA&rdquo;), and U.S. economic sanctions
laws. The Trust will only accept creation and redemption requests from Authorized Participants who have represented to the Trust that
they have implemented compliance programs that are designed to ensure compliance with applicable sanctions and anti-money laundering
laws. The Trust will not hold any bitcoin except those that have been delivered by approved Bitcoin Trading Counterparties or by execution
through the Prime Execution Agent, in connection with Authorized Participant creation requests. Moreover, the Prime Execution Agent has
represented to the Trust that it has implemented and will maintain and follow compliance programs that are designed to comply with applicable
sanctions and anti-money laundering laws and that it performs both initial and ongoing due diligence on each of its customers as well
as ongoing transaction monitoring that is designed to identify and report suspicious activity conducted through customer accounts, including
those opened by the Authorized Participants or their agents/partners for purposes of facilitating bitcoin deposits to, and withdrawals
from, the Trust&rsquo;s Trading Balance, as required by law.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Prime Execution Agent
and Bitcoin Custodian have adopted and implemented anti-money laundering and sanctions compliance programs, which provides additional
protections to ensure that the Sponsor and the Trust do not transact with a sanctioned party. Notably, the Prime Execution Agent and
Bitcoin Custodian perform screening using blockchain analytics to identify, detect, and mitigate the risk of transacting with a sanctioned
or other unlawful actor. Pursuant to the Bitcoin Custodian&rsquo;s and Prime Execution Agent&rsquo;s blockchain analytics screening program,
any bitcoin that is delivered to the Trust Bitcoin Account or the Trust&rsquo;s Trading Balance will undergo screening designed to assess
whether the origins of that bitcoin are illicit.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Prime Execution Agreement
provides, among others, that if the Prime Execution Agent conducts blockchain analytics screening on a bitcoin transaction deposited
by an Authorized Participant and such screening results in the bitcoin transaction being suspected or determined to be in violation of
certain applicable sanctions laws, the Prime Execution Agent and its affiliates, including the Bitcoin Custodian, will (a) block or reject
the deposit of such bitcoin into the Trust&rsquo;s Trading Account, where required by applicable sanctions laws, and (b) agree to promptly
inform the Trust if any fund movement between an Authorized Participant&rsquo;s account at the Prime Execution Agent and the Trust&rsquo;s
account(s) involves such bitcoin, so long as permitted by applicable law.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">However, there is no guarantee
that such procedures will always prove to be effective or that the Prime Execution Agent and its affiliates will always perform their
obligations. Such screening may also result in the bitcoin identified by such screening being blocked or frozen by the Prime Execution
Agent, and thus made unavailable to the Trust. Moreover, the Prime Execution Agreement and Bitcoin Custody Agreement require the Trust
to attest that it has performed its own due diligence on the Bitcoin Trading Counterparties it has contracted with to source bitcoin
from and has confirmed that the Bitcoin Trading Counterparties have implemented policies, procedures and controls designed to comply
with applicable anti-money laundering and applicable sanctions laws. Although the Sponsor arranges for such diligence to be performed,
including by the Trust&rsquo;s service providers, there is no guarantee such diligence will prove effective in identifying all possible
sources of illicit financing risks. Bitcoin Trading Counterparties represent to the Sponsor that they conduct due diligence on their
own counterparties from whom they source the bitcoin they deposit with the Trust, and that they have formed a reasonable belief that
such bitcoin being transferred by the Bitcoin Trading Counterparty to the Trust were not derived from, or associated with, unlawful or
criminal activity. However, there is the risk that Bitcoin Trading Counterparties may not conduct sufficient due diligence processes
on the sources of their bitcoin or that their representations to the Sponsor may turn out to be inaccurate, which could cause the Trust
to suffer a loss. If the Authorized Participants or Bitcoin Trading Counterparties have inadequate policies, procedures and controls
for complying with applicable anti-money laundering and applicable sanctions laws or the Trust&rsquo;s procedures or diligence prove
to be ineffective, violations of such laws could result, which could result in regulatory liability for the Trust or the Sponsor under
such laws, including governmental fines, penalties, and other punishments, as well as potential liability to or cessation of services
by the Prime Execution Agent and its affiliates, including the Bitcoin Custodian, under the Prime Execution Agreement and Bitcoin Custody
Agreement. Any of the foregoing could result in losses to the Shareholders or negatively affect the Trust&rsquo;s ability to operate.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Environmental
concerns could slow or curtail the supply of bitcoin or the acceptance of bitcoin in payment.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Mining for the Bitcoin network
is an energy-consuming process involving the use of many thousands of high-powered purpose-built computers. Estimates and data vary widely,
but several surveys have compared the bitcoin mining community&rsquo;s energy consumption to that of several small countries. In addition,
bitcoin mining also generates electronic waste, as existing computer chips become obsolete ever more quickly and are discarded as they
are replaced with faster models. Increased awareness of these issues has led some companies, notably Tesla and Greenpeace, to refuse
acceptance of bitcoin in payment. Certain localities, such as China, have recently banned mining altogether, while others seek to halt
mining temporarily until environmental impact studies can be conducted. These concerns could result in increased mining bans, as well
as a slowing or decrease in bitcoin payment acceptance, affecting both the supply of, and demand for, bitcoin.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Bitcoin network
requires significant electricity to mine and it is possible that certain jurisdictions will implement regulations regarding the energy
consumption of the Bitcoin network, which could result in a significant reduction in mining activity and adversely affect the security
of the Bitcoin network.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In addition to financial
regulation, concerns have been raised about the electricity required to secure and maintain the Bitcoin network. The &ldquo;proof of
work&rdquo; validation mechanism used to verify transactions on the Bitcoin network necessitates that bitcoin miners maintain high levels
of computing power, which can require extremely high energy usage. Although measuring the electricity consumed by this process is difficult
because these operations are performed by various machines with varying levels of efficiency, the process consumes a significant amount
of energy. Further, in addition to the direct energy costs of performing these calculations, there are indirect costs that impact the
Bitcoin network&rsquo;s total energy consumption, including the costs of cooling the machines that perform these calculations. The availability
and cost of electricity will restrict the geographic locations of mining activities. High costs of electricity may incentivize miners
to redirect their resources to other validation protocols, such as proof-of-stake blockchains, or abandon their validation activities
entirely. A significant decrease in the computational resources dedicated to the Bitcoin network&rsquo;s validation protocol could reduce
the security of the network which may erode bitcoin&rsquo;s viability as a store of value or means of exchange.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Due to concerns around energy
consumption and associated environmental concerns, particularly as such concerns relate to public utilities companies, various countries,
states and cities have implemented, or are considering implementing, moratoriums on Bitcoin mining in their jurisdictions. Such moratoriums
would impede bitcoin mining and/or bitcoin use more broadly. For example, in November 2022, New York imposed a two-year moratorium on
new proof-of-work mining permits at fossil fuel plants in the state and, on May 26, 2021, Iran placed a temporary ban on bitcoin mining
in an attempt to decrease energy usage and help alleviate blackouts.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Depending on how futures
regulations are formulated and applied, such policies could have the potential to negatively affect the price of bitcoin, and, in turn,
the value of the Shares. Increased regulation and the corresponding compliance cost of these regulations could additionally result in
higher barriers to entry for bitcoin miners, which could increase the concentration of the hash rate, potentially having a negative impact
on the price of bitcoin.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">A temporary or
permanent &ldquo;fork&rdquo; of the Bitcoin blockchain could adversely affect an investment in the Trust.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Bitcoin software is open
source. Any user can download the software, modify it and then propose that bitcoin users and miners adopt the modification. Bitcoin
software updates are user driven, meaning they are adopted when users of the software choose to update their software, in contrast to
centralized software solutions where a development company might &ldquo;push&rdquo; out mandatory software updates to the user community.
When a change is proposed that modifies the operation of the Bitcoin network and a substantial majority of users and miners consent to
the modification, the change is implemented and the Bitcoin network remains uninterrupted. However, if less than a substantial majority
of users and miners consent to the proposed modification, and the modification is nonetheless implemented by some users and miners and
the modification is not compatible or fully interoperable with the software prior to its modification, the consequence would be what
is known as a &ldquo;fork&rdquo; (<I>i.e.</I>, &ldquo;split&rdquo;) of the Bitcoin network (and the Bitcoin blockchain), with one version
running the pre-modified software and the other running the modified software. The effect of such a fork would be the existence of two
(or more) versions of the Bitcoin network running in parallel, but with each version&rsquo;s bitcoin tokens lacking interchangeability
across the respective networks. A party owning bitcoin at the time of the fork would hold equal amounts of both bitcoin and the alternative
forked digital asset (a &ldquo;Forked Asset&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Forks have occurred already
to the Bitcoin network, including a fork in August 2017 relating to a several-year dispute over how to increase the rate of transactions
that the Bitcoin network can process. This fork resulted in the creation of the &ldquo;Bitcoin Cash&rdquo; network and a new Forked Asset
(bitcoin cash). Bitcoin Cash is an example of an intentional fork to create a new digital asset network with differentiated features.
To the extent such digital assets compete with Bitcoin, such competition could impact demand for Bitcoin and could adversely impact the
value of the Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Forks may also occur as a
network community&rsquo;s response to a significant security breach. For example, in June 2016, an anonymous hacker exploited a smart
contract running on the Ethereum network to syphon approximately $60 million of ETH held by The DAO, a distributed autonomous organization,
into a segregated account. In response to the hack, most participants in the Ethereum community elected to adopt a &ldquo;fork&rdquo;
that effectively reversed the hack. However, a minority of users continued to develop the original blockchain, now referred to as &ldquo;Ethereum
Classic&rdquo; with the digital asset on that blockchain now referred to as Ether Classic, or ETC. Both ether and ether classic are traded
on trading platforms and the Ethereum and Ethereum Classic networks feature independent development communities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">A fork may also occur as
a result of an unintentional or unanticipated software flaw in the various versions of otherwise compatible software that users run.
Such a fork could lead to users and miners abandoning the digital asset with the flawed software. It is possible, however, that a substantial
number of users and miners could adopt an incompatible version of the digital asset while resisting community-led efforts to merge the
two chains. This could result in a permanent fork, as in the case of Ether and Ether Classic.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trust has adopted procedures
to address situations involving a fork that result in the creation of Forked Assets that the Trust has a right to claim. Typically, the
holder of bitcoin has no discretion with respect to a hard fork; it merely has the right to claim the Forked Asset on a pro rata basis
while it continues to hold the same number of bitcoin. Pursuant to the Trust Agreement and Sponsor Agreement, Forked Assets and other
Incidental Rights and IR Assets (as defined and discussed in greater detail below) do not constitute property of the Trust, as the Trust
has disclaimed ownership of such assets in favor of the Sponsor. Accordingly, the Trust will take no affirmative action to claim the
Forked Asset. The Trust Agreement stipulates that, if the Trust nonetheless comes into possession of a Forked Asset, (i) the Sponsor
will promptly make a good faith determination (x) as to which digital asset network is regarded by the community as the Bitcoin network
and which is the &ldquo;forked&rdquo; network and (y) that the Trust shall as soon as practicable, and, if possible, immediately, distribute
such assets to the Sponsor. See: <I>&ldquo;Shareholders may not receive the benefits of any forks or &lsquo;airdrops,&rsquo;&rdquo; below</I>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">A fork of any kind could
adversely affect an investment in the Trust or the ability of the Trust to operate and the Trust&rsquo;s procedures may be inadequate
to address the effects of a fork.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>


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<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In the event
of a hard fork of the Bitcoin network, the Sponsor will, if permitted by the terms of the Trust Agreement, use its discretion to determine
which network should be considered the appropriate network for the Trust&rsquo;s purposes, and in doing so may adversely affect the value
of the Shares.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In the event of a hard fork
of the Bitcoin network, the Sponsor will use its discretion to determine, promptly and in good faith, which digital asset network, among
a group of incompatible forks of the Bitcoin network, is generally accepted as the Bitcoin network and should therefore be considered
the appropriate network for the Trust&rsquo;s purposes. The Sponsor will base its determination on a variety of then relevant factors,
including, but not limited to, the Sponsor&rsquo;s beliefs regarding expectations of the core developers of bitcoin, users, services,
businesses, miners and other constituencies, as well as the actual continued acceptance of, mining power on, and community engagement
with, the Bitcoin network. There is no guarantee that the Sponsor will choose the cryptocurrency that is ultimately the most valuable
fork, and the Sponsor&rsquo;s decision may adversely affect the value of the Shares as a result. The Sponsor may also disagree with Shareholders,
the Bitcoin Custodian, security vendors and the Benchmark Provider on what is generally accepted as bitcoin and should therefore be considered
&ldquo;bitcoin&rdquo; for the Trust&rsquo;s purposes, which may also adversely affect the value of the Shares as a result.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In the event
of a hard fork of the Bitcoin network, the Bitcoin Custodian&rsquo;s operations may be interrupted or subject to additional security
risks that could disrupt the Trust&rsquo;s ability to process creations and redemptions of Shares or otherwise threaten the security
of the Trust&rsquo;s bitcoin holdings.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In the event of a hard fork
of the Bitcoin network, the Bitcoin Custodian may temporarily halt the ability of customers (including the Trust) to deposit, withdraw
or transfer bitcoin on the Bitcoin Custodian&rsquo;s platform. Such a delay may be intended to permit the Bitcoin Custodian to assess
the resulting versions of the Bitcoin network, to determine how best to securely &ldquo;split&rdquo; the bitcoin from the Forked Asset,
and to prevent malicious users from conducting &ldquo;replay attacks&rdquo; (<I>i.e.</I>, broadcasting transactions on both versions
of the forked networks to put Bitcoin Custodian assets at risk). As a result, the Trust is likely to suspend creations and redemptions
during a period in which the Bitcoin Custodian&rsquo;s operations are halted.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In addition, any losses experienced
by the Bitcoin Custodian due to a hard fork, including due to replay attacks or technological errors in assessing the fork could have
a materially adverse impact on an investment in the Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Shareholders
may not receive the benefits of any forks or &ldquo;airdrops.&rdquo;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In addition to forks, a digital
asset, including bitcoin, may become subject to a similar occurrence known as an &ldquo;airdrop.&rdquo; In an airdrop, the promotors
of a new digital asset announce to holders of another digital asset that such holders will be entitled to claim a certain amount of the
new digital asset for free, based on the fact that they hold such other digital asset. Such airdrops are common on the Ethereum network,
but have also occurred (and may continue to occur) on the Bitcoin network. Airdrops may be conducted by sending a token to the holders
of set amounts of bitcoin or to particular public addresses on the Bitcoin network. Or airdrops may involve a user being entitled to
claim tokens on a decentralized application, second-layer network or entirely separate digital asset network. As such, a user entitled
to receive airdrops may be required to take little or significant actions in order to receive such airdropped tokens. Shareholders may
not receive the benefits of any forks, the Trust may not choose, or be able, to participate in an airdrop, and the timing of receiving
any benefits from a fork, airdrop or similar event is uncertain.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">A right to receive any such
benefit of a fork or airdrop is referred to as an &ldquo;Incidental Right&rdquo; and any digital asset acquired through an Incidental
Right as &ldquo;IR Assets.&rdquo; Pursuant to the Trust Agreement, the Trust has explicitly disclaimed all Incidental Rights and IR Assets.
Such assets are not considered assets of the Trust at any point in time and will not be taken into account for purposes of determining
the Trust&rsquo;s NAV and the NAV per Share.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Pursuant to the Trust Agreement,
to the extent that the Trust involuntarily receives such assets in a Trust wallet, it will, as soon as practicable, and, if possible,
immediately, distribute such assets to the Sponsor. Once acquired, the Sponsor may take any lawful action necessary or desirable in connection
with its acquisition of such assets. In the event that the Sponsor decides to sell the Incidental Right(s) and/or IR Asset(s), it will
seek to do so for cash. This may be a sale of the Incidental Right(s) and/or IR Asset(s) directly in exchange for cash, or in exchange
for another digital asset which may subsequently be exchanged for cash. The Sponsor would then contribute that cash back to the Trust,
which in turn would distribute the cash to the Depository Trust Company (&ldquo;DTC&rdquo;) to be distributed to Shareholders in proportion
to the number of Shares owned.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Although the Sponsor intends,
if possible, to arrange for the sale of any Incidental Right(s) and/or IR Asset(s) it receives from the Trust and subsequently contribute
such cash proceeds back to the Trust, it is under no obligation to do so. There are likely to be operational, tax, securities law, regulatory,
legal and practical issues that significantly limit, or prevent entirely, the Sponsor&rsquo;s ability to realize a benefit from any such
Incidental Right(s) and/or IR Asset(s). The Sponsor may choose to evaluate any such fork, airdrop or similar occurrence on a case-by-case
basis in consultation with its legal advisors, tax consultants and custodian. In determining whether to attempt to acquire and/or retain
any Incidental Right(s) and/or IR Asset(s), the Sponsor expects to take into consideration whatever factors it deems relevant in its
discretion, including, without limitation:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">the availability
                                            of a safe and practical way to custody the Incidental Right or IR Asset;</TD>
</TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">the costs
                                            or operational burden of taking possession and/or maintaining ownership of the Incidental
                                            Right or IR Asset and whether such costs or burden exceed the benefits of owning such Incidental
                                            Rights or IR Asset or the proceeds that would be realized from a sale thereof;</TD>
</TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">whether
                                            there are any legal or regulatory restrictions on or risks or consequences arising from,
                                            or tax implications with respect to, the acceptance, retention, ownership, sale, transfer,
                                            abandonment, distribution or disposal or disposition of the Incidental Right or IR Asset,
                                            regardless of whether there is a safe and practical way to custody and secure such Incidental
                                            Right or IR Asset;</TD>
</TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">the existence
                                            of a suitable market into which the Incidental Right or IR Asset may be sold; and</TD>
</TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">whether
                                            claiming, owning, selling, or otherwise taking any action in respect of Incidental Rights
                                            or IR Asset may create legal or regulatory risks, liability, or burdens of any kind for the
                                            Sponsor (including, without limitation, if such Incidental Rights or IR Asset is, or may
                                            be, a security under federal securities laws or a commodity interest under the Commodity
                                            Exchange Act).</TD>
</TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Sponsor is under no obligation
to realize any economic benefit from any Incidental Right(s) and/or IR Asset(s) it receives from the Trust. The Sponsor may instead determine,
in its sole discretion, to abandon such Incidental Rights or IR Assets permanently and irrevocably for no consideration. Before the Trust
claims any Incidental Right(s) and/or IR Asset(s) resulting from a fork or airdrop in the Bitcoin network (other than bitcoin), the Trust
would need to seek and obtain certain regulatory approvals, including an amendment to the Trust&rsquo;s registration statement of which
this prospectus is a part and approval of an application by the Exchange to amend its listing rules.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The prevailing
level of transaction fees may adversely affect the usage of the Bitcoin network.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Bitcoin miners collect fees
for each transaction they confirm. Miners validate unconfirmed transactions by adding the previously unconfirmed transactions to new
blocks in the Bitcoin blockchain. Miners are not forced to confirm any specific transaction, but they are economically incentivized to
confirm valid transactions as a means of collecting fees. Miners have historically accepted relatively low transaction confirmation fees,
because miners have a very low marginal cost of validating unconfirmed transactions. In addition, most iterations of mining software
will prioritize transaction recorded based on (i) thresholds selected by the user, (ii) the transaction fee paid with the transaction,
(iii) the value attached to the transaction and (iv) the time the transaction was received by the mining software.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Transaction fees on the Bitcoin
network have fluctuated over time. As of March 31, 2025, the average fee per transaction was $1.27 per transaction. High fees may discourage
users from undertaking transactions, thus reducing the attractiveness of the Bitcoin network. Any extended period with high network transaction
fees may therefore adversely impact an investment in the Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">If miners collude in an anticompetitive
manner to not record transactions that pay low transaction fees, then bitcoin users would be required to wait for their transaction to
be included in a block by a miner not requiring such transaction fees. Such a scenario would require that users pay higher fees to ensure
their transactions are recorded promptly, thus reducing the attractiveness of the bitcoin network. Bitcoin mining occurs globally and
it may be difficult for authorities to apply antitrust regulations across multiple jurisdictions. Any collusion among miners may adversely
impact an investment in the Shares or the ability of the Trust to operate.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">If the number of outstanding
transactions yet to be recorded in the Bitcoin blockchain (commonly referred to as &ldquo;transactions in the mempool&rdquo;) are significantly
above the capacity which can be recorded in any single block, miners are likely to prioritize recording transactions that pay significant
transaction fees. This would result in transactions with low or no fees remaining in the mempool for extended periods. Such a scenario
would require that users pay higher fees to ensure their transactions are recorded promptly, thus reducing the attractiveness of the
Bitcoin network. An extended period of large numbers of transaction in the mempool could result from high levels of use of the Bitcoin
network or from a malicious spam attack intending to increase the transactions in the mempool. Any extended period with large numbers
of transaction in the mempool may adversely impact an investment in the Shares or the ability of the Trust to operate.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Additionally, the reward
for successfully mining transactions (called the &ldquo;block reward&rdquo; or &ldquo;coinbase&rdquo;) will decrease over time. In April
2024, the block reward was reduced from 6.25 to 3.125 bitcoin, and will further be reduced by half approximately every four years. As
the block reward continues to decrease over time, the mining incentive structure may transition to a higher reliance on transaction confirmation
fees in order to incentivize miners to continue to dedicate processing power to the blockchain. If transaction confirmation fees become
too high, the marketplace may be reluctant to use bitcoin. Conversely, if the combination of the block reward and transaction fees are
too low, miners may not be incentivized to expend processing power to solve blocks and confirmations of transactions on the Bitcoin blockchain
could be temporarily slowed. A reduction in the processing power expended by miners on the Bitcoin network could increase the likelihood
of a malicious actor or botnet obtaining control. Any reduction in infrastructure security may reduce confidence in the Bitcoin network
or expose the Bitcoin network to a malicious actor or botnet obtaining a majority of processing power on the Bitcoin network, reducing
the confidence in and security of the Bitcoin blockchain. Decreased demand for bitcoin or reduced security on the Bitcoin network may
adversely impact an investment in the Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">If a malicious
actor or botnet obtains control of more than 50% of the processing power on the Bitcoin network, or otherwise obtains control over the
Bitcoin network through its influence over core developers or otherwise, such actor or botnet could manipulate how data is recorded the
Bitcoin blockchain to adversely affect the value of the Shares or the ability of the Trust to operate.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">If a malicious actor or botnet
(a volunteer or hacked collection of computers controlled by networked software coordinating the actions of the computers) obtains a
majority of the processing power dedicated to mining on the Bitcoin network, it may be able to alter the Bitcoin blockchain on which
transactions in bitcoin rely by constructing fraudulent blocks or preventing certain transactions from completing in a timely manner,
or at all. The malicious actor or botnet could also control, exclude or modify the ordering of transactions. Although the malicious actor
or botnet would not be able to generate new tokens or transactions using such control, it could &ldquo;double-spend&rdquo; its own tokens
(i.e., spend the same tokens in more than one transaction) and prevent the confirmation of other users&rsquo; transactions for so long
as it maintained control. To the extent that such malicious actor or botnet did not yield its control of the processing power on the
Bitcoin network or the Bitcoin community did not reject the fraudulent blocks as malicious, reversing any changes made to the Bitcoin
blockchain may not be possible. Further, a malicious actor or botnet could create a flood of transactions in order to slow down the Bitcoin
network or cause an increase in the transaction fees paid by users to confirm transactions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Although there are no known
reports of malicious activity on, or control of, the Bitcoin network, it is believed that certain mining pools may have exceeded the
50% threshold on the Bitcoin network on a temporary basis. The possible crossing of the 50% threshold indicates a greater risk that a
single mining pool could exert authority over the validation of Bitcoin transactions, and this risk is heightened if over 50% of the
processing power on the network falls within the jurisdiction of a single governmental authority. For example, it is believed that more
than 50% of the processing power on the Bitcoin network is located in China. Because the Chinese government has subjected digital assets
to heightened levels of scrutiny recently, reportedly forcing several digital asset trading platforms to shut down, there is a risk that
the Chinese government could also achieve control over more than 50% of the processing power on the Bitcoin network. If network participants,
including the core developers and the administrators of mining pools, do not act to ensure greater decentralization of bitcoin mining
processing power, the feasibility of a malicious actor obtaining control of the processing power on the Bitcoin network will increase,
which may adversely affect the value of the Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">A malicious actor may also
obtain control over the Bitcoin network through its influence over core developers by gaining direct control over a core developer or
an otherwise influential programmer. To the extent that the bitcoin ecosystem does not grow, the possibility that a malicious actor may
be able to obtain control of the processing power on the Bitcoin network in this manner will remain heightened.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>


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<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Risks Associated with the Market for Bitcoin</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The digital asset
trading platforms on which bitcoin trades are relatively new and largely unregulated or may not be complying with existing regulations.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Digital asset markets, including
spot markets for bitcoin, are growing rapidly. The digital asset trading platforms through which bitcoin and other digital assets trade
are new and largely unregulated or may not be complying with existing regulations. These markets are local, national and international
and include a broadening range of digital assets and participants. Significant trading may occur on systems and platforms with minimum
predictability. Spot markets may impose daily, weekly, monthly or customer-specific transaction or withdrawal limits or suspend withdrawals
entirely, rendering the exchange of bitcoin for fiat currency difficult or impossible. Participation in spot markets requires users to
take on credit risk by transferring bitcoin from a personal account to a third-party&rsquo;s account.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Digital asset trading platforms
do not appear to be subject to, or may not comply with, regulation in a manner similar to other regulated trading platforms, such as
national securities exchanges or designated contract markets. Many digital asset trading platforms are unlicensed, are unregulated, operate
without extensive supervision by governmental authorities, and do not provide the public with significant information regarding their
ownership structure, management team, corporate practices, cybersecurity, and regulatory compliance. In particular, those located outside
the United States may be subject to significantly less stringent regulatory and compliance requirements in their local jurisdictions.
Digital asset trading platforms may be out of compliance with existing regulations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">As a result, trading activity
on or reported by these digital asset trading platforms is generally significantly less regulated than trading in regulated U.S. securities
and commodities markets and may reflect behavior that would be prohibited in regulated U.S. trading venues. Furthermore, many digital
asset trading platforms lack certain safeguards put in place by more traditional exchanges to enhance the stability of trading on the
platform and prevent flash crashes, such as limit-down circuit breakers. As a result, the prices of digital assets such as bitcoin on
digital asset trading platforms may be subject to larger and/or more frequent sudden declines than assets traded on more traditional
exchanges. Tools to detect and deter fraudulent or manipulative trading activities (such as market manipulation, front-running of trades,
and wash-trading) may not be available to or employed by digital asset trading platforms or may not exist at all. As a result, the marketplace
may lose confidence in, or may experience problems relating to, these venues.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">No digital asset trading
platform on which bitcoin trades is immune from these risks. The closure or temporary shutdown of digital asset trading platforms due
to fraud, business failure, hackers or malware, or government-mandated regulation may reduce confidence in the Bitcoin network and can
slow down the mass adoption of bitcoin. Further, digital asset trading platform failures or that of any other major component of the
overall bitcoin ecosystem can have an adverse effect on bitcoin markets and the price of bitcoin and could therefore have a negative
impact on the performance of the Trust.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Negative perception, a lack
of stability in the digital asset trading platforms, manipulation of bitcoin trading platforms by customers and/or the closure or temporary
shutdown of such trading platforms due to fraud, business failure, hackers or malware, or government-mandated regulation may reduce confidence
in bitcoin generally and result in greater volatility in the market price of bitcoin and the Shares of the Trust. Furthermore, the closure
or temporary shutdown of a bitcoin trading platforms may impact the Trust&rsquo;s ability to determine the value of its bitcoin holdings
or for the Trust&rsquo;s Authorized Participants to effectively arbitrage the Trust&rsquo;s Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Digital asset
trading platforms may be exposed to security breaches.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The nature of the assets
held at bitcoin trading platforms makes them appealing targets for hackers and a number of bitcoin trading platforms have been victims
of cybercrimes. Over the past several years, some digital asset trading platforms have been closed due to security breaches. In many
of these instances, the customers of such digital asset trading platforms were not compensated or made whole for the partial or complete
losses of their account balances in such digital asset trading platforms. While, generally speaking, smaller digital asset trading platforms
are less likely to have the infrastructure and capitalization that make larger digital asset trading platforms more stable, larger digital
asset trading platforms are more likely to be appealing targets for hackers and malware. For example, the collapse of Mt. Gox, which
filed for bankruptcy protection in Japan in late February 2014, demonstrated that even the largest digital asset trading platforms could
be subject to abrupt failure with consequences for both users of digital asset trading platforms and the digital asset industry as a
whole. In particular, in the two weeks that followed the February 7, 2014, halt of bitcoin withdrawals from Mt. Gox, the value of one
bitcoin fell on other exchanges from around $795 on February 6, 2014, to $578 on February 20, 2014. Additionally, in January 2015, Bitstamp
announced that approximately 19,000 bitcoin had been stolen from its operational or &ldquo;hot&rdquo; wallets. Further, in August 2016,
it was reported that almost 120,000 bitcoins worth around $78 million were stolen from Bitfinex, a large digital asset exchange. The
value of bitcoin and other digital assets immediately decreased over 10% following reports of the theft at Bitfinex. In July 2017, FinCEN
assessed a $110 million fine against BTC-E, a now defunct digital asset exchange, for facilitating crimes such as drug sales and ransomware
attacks. In addition, in December 2017, Yapian, the operator of Seoul-based cryptocurrency exchange Youbit, suspended digital asset trading
and filed for bankruptcy following a hack that resulted in a loss of 17% of Yapian&rsquo;s assets. Following the hack, Youbit users were
allowed to withdraw approximately 75% of the digital assets in their exchange accounts, with any potential further distributions to be
made following Yapian&rsquo;s pending bankruptcy proceedings. In addition, in January 2018, the Japanese digital asset trading platform,
Coincheck, was hacked, resulting in losses of approximately $535 million, and in February 2018, the Italian digital asset trading platform,
Bitgrail, was hacked, resulting in approximately $170 million in losses. In May 2019, one of the world&rsquo;s largest digital asset
trading platform, Binance, was hacked, resulting in losses of approximately $40 million.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Digital asset
trading platforms may be exposed to fraud and market manipulation.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The blockchain infrastructure
could be used by certain market participants to exploit arbitrage opportunities through schemes such as front-running, spoofing, pump-and-dump
and fraud across different systems, platforms or geographic locations. As a result of reduced oversight, these schemes may be more prevalent
in digital asset markets than in the general market for financial products.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The SEC has identified possible
sources of fraud and manipulation in the bitcoin market generally, including, among others (1) &ldquo;wash trading&rdquo;; (2) persons
with a dominant position in bitcoin manipulating bitcoin pricing; (3) hacking of the Bitcoin network and trading platforms; (4) malicious
control of the Bitcoin network; (5) trading based on material, non-public information (for example, plans of market participants to significantly
increase or decrease their holdings in bitcoin, new sources of demand for bitcoin, etc.) or based on the dissemination of false and misleading
information; (6) manipulative activity involving purported &ldquo;stablecoins,&rdquo; including Tether; and (7) fraud and manipulation
at bitcoin trading platforms.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Over the past several years,
a number of bitcoin trading platforms have been closed or faced issues due to fraud. In many of these instances, the customers of such
bitcoin trading platforms were not compensated or made whole for the partial or complete losses of their account balances in such bitcoin
trading platforms.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In 2019, there were reports
claiming that 80.95% of bitcoin trading volume on digital asset trading platforms was false or noneconomic in nature, with specific focus
on unregulated exchanges located outside of the United States. Such reports alleged that certain overseas exchanges have displayed suspicious
trading activity suggestive of a variety of manipulative or fraudulent practices. Other academics and market observers have put forth
evidence to support claims that manipulative trading activity has occurred on certain bitcoin exchanges. For example, in a 2017 paper
titled &ldquo;Price Manipulation in the Bitcoin Ecosystem&rdquo; sponsored by the Interdisciplinary Cyber Research Center at Tel Aviv
University, a group of researchers used publicly available trading data, as well as leaked transaction data from a 2014 Mt. Gox security
breach, to identify and analyze the impact of &ldquo;suspicious trading activity&rdquo; on Mt. Gox between February and November 2013,
which, according to the authors, caused the price of bitcoin to increase from around $150 to more than $1,000 over a two-month period.
In August 2017, it was reported that a trader or group of traders nicknamed &ldquo;Spoofy&rdquo; was placing large orders on Bitfinex
without actually executing them, presumably in order to influence other investors into buying or selling by creating a false appearance
that greater demand existed in the market. In December 2017, an anonymous blogger (publishing under the pseudonym Bitfinex&rsquo;d) cited
publicly available trading data to support his or her claim that a trading bot nicknamed &ldquo;Picasso&rdquo; was pursuing a paint-the-tape-style
manipulation strategy by buying and selling bitcoin and bitcoin cash between affiliated accounts in order to create the appearance of
substantial trading activity and thereby influence the price of such assets.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In November 2022, FTX, one
of the largest digital asset trading platforms by volume at the time, halted customer withdrawals amid rumors of the company&rsquo;s
liquidity issues and likely insolvency, which were subsequently corroborated by its CEO. Shortly thereafter, FTX&rsquo;s CEO resigned
and FTX and many of its affiliates filed for bankruptcy in the United States, while other affiliates have entered insolvency, liquidation,
or similar proceedings around the globe, following which the U.S. Department of Justice brought criminal fraud and other charges, and
the SEC and CFTC brought civil securities and commodities fraud charges, against certain of FTX&rsquo;s and its affiliates&rsquo; senior
executives, including its former CEO. Around the same time, there were reports that approximately $300-600 million of digital assets
were removed from FTX, and the full facts remain unknown, including whether such removal was the result of a hack, theft, insider activity,
or other improper behavior. In February 2025, approximately $1.5 billion of ether was stolen from the Dubai-based Bybit exchange. Bybit
claims the hack occurred when the company was making a routine transfer of ether from an offline &ldquo;cold&rdquo; wallet to a hot wallet,
with the attacker suspected to be agents of North Korea exploiting security controls to gain control of the assets.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The potential consequences
of a digital asset trading platform&rsquo;s failure or failure to prevent market manipulation could adversely affect the value of the
Shares. Any market abuse, and a loss of investor confidence in bitcoin, may adversely impact pricing trends in bitcoin markets broadly,
as well as an investment in Shares of the Trust.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Digital asset
trading platforms may be exposed to wash trading.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Digital asset trading platforms
on which bitcoin trades may be susceptible to wash trading. Wash trading occurs when offsetting trades are entered into for other than
bona fide reasons, such as the desire to inflate reported trading volumes. Wash trading may be motivated by non-economic reasons, such
as a desire for increased visibility on popular websites that monitor markets for digital assets so as to improve their attractiveness
to investors who look for maximum liquidity, or it may be motivated by the ability to attract listing fees from token issuers who seek
the most liquid and high-volume exchanges on which to list their coins. Results of wash trading may include unexpected obstacles to trade
and erroneous investment decisions based on false information.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Even in the United States,
there have been allegations of wash trading even on regulated trading venues. Any actual or perceived false trading in the digital asset
trading venue market, and any other fraudulent or manipulative acts and practices, could adversely affect the value of bitcoin and/or
negatively affect the market perception of bitcoin.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">To the extent that wash trading
either occurs or appears to occur on trading platforms on which bitcoin trades, investors may develop negative perceptions about bitcoin
and the digital assets industry more broadly, which could adversely impact the price bitcoin and, therefore, the price of Shares. Wash
trading also may place more legitimate digital asset exchanges at a relative competitive disadvantage.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Digital asset
trading platforms may be exposed to front-running.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Digital asset trading platforms
on which bitcoin trades may be susceptible to &ldquo;front-running,&rdquo; which refers to the process when someone uses technology or
market advantage to get prior knowledge of upcoming transactions. Front-running is a frequent activity on centralized as well as decentralized
digital asset trading platforms. By using bots functioning on a millisecond-scale timeframe, bad actors are able to take advantage of
the forthcoming price movement and make economic gains at the cost of those who had introduced these transactions. The objective of a
front runner is to buy a chunk of tokens at a low price and later sell them at a higher price while simultaneously exiting the position.
Front-running happens via manipulations of gas prices or timestamps, also known as slow matching. To extent that front-running occurs,
it may result in investor frustrations and concerns as to the price integrity of digital asset exchanges and digital assets more generally.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Momentum pricing.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The market value of bitcoin
is not based on any kind of claim, nor backed by any physical asset. Instead, the market value depends on the expectation of being usable
in future transactions and continued interest from investors. This strong correlation between an expectation and market value is the
basis for the current (and probable future) volatility of the market value of bitcoin and may increase the likelihood of momentum pricing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Momentum pricing typically
is associated with growth stocks and other assets whose valuation, as determined by the investing public, is impacted by appreciation
in value. Momentum pricing may result in speculation regarding future appreciation in the value of digital assets, which inflates prices
and leads to increased volatility. As a result, bitcoin may be more likely to fluctuate in value due to changing investor confidence
in future appreciation or depreciation in prices, which could adversely affect the price of bitcoin, and, in turn, an investment in the
Trust.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The value of a bitcoin as
represented by the BRRNY may also be subject to momentum pricing due to speculation regarding future appreciation in value, leading to
greater volatility that could adversely affect the value of the Shares. Momentum pricing of bitcoin has previously resulted, and may
continue to result, in speculation regarding future appreciation or depreciation in the value of bitcoin, further contributing to volatility
and potentially inflating prices at any given time. These dynamics may impact the value of an investment in Trust.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Some market observers have
asserted that in time, the value of bitcoin will fall to a fraction of its current value, or even to zero. Bitcoin has not been in existence
long enough for market participants to assess these predictions with any precision, but if these observers are even partially correct,
an investment in the Shares may turn out to be substantially worthless.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Political or
economic crises may motivate large-scale sales of bitcoin, which could result in a reduction in the prices of bitcoin and adversely affect
an investment in the Shares.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">As an alternative to fiat
currencies that are backed by central governments, bitcoin is subject to supply and demand forces based upon the desirability of an alternative,
decentralized means of buying and selling goods and services, and it is unclear how such supply and demand will be impacted by geopolitical
events. Nevertheless, political or economic crises may motivate large-scale acquisitions or sales of bitcoin, either globally or locally.
Large-scale sales of bitcoin would result in a reduction in its price and adversely affect an investment in the Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Ownership of
bitcoin is pseudonymous, and the supply of accessible bitcoin is unknown. Entities with substantial holdings in bitcoin may engage in
large-scale sales or distributions, either on nonmarket terms or in the ordinary course, which could result in a reduction in the price
of bitcoin and adversely affect an investment in the Shares.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">There is no registry showing
which individuals or entities own bitcoin or the quantity of bitcoin that is owned by any particular person or entity. It is possible,
and in fact, reasonably likely, that a small group of early bitcoin adopters hold a significant proportion of the bitcoin that has been
created to date. There are no regulations in place that would prevent a large holder of bitcoin from selling bitcoin it holds. To the
extent such large holders of bitcoin engage in large-scale sales or distributions, either on nonmarket terms or in the ordinary course,
it could result in a reduction in the price of bitcoin and adversely affect an investment in the Shares. For example, in March 2018,
it was reported that the trustee overseeing the bankruptcy of the Mt. Gox exchange had sold roughly $400 million worth of bitcoin and
bitcoin cash belonging to the Mt. Gox bankruptcy estate. While the trustee has publicly stated that the sale was conducted in a manner
that would avoid affecting the market price, others have speculated that corresponding reductions in the trading price of bitcoin were
a result of these large sales. A significant quantity of bitcoin and bitcoin cash remain in the Mt. Gox bankruptcy estate, and the process
for selling the estate&rsquo;s remaining bitcoin and bitcoin cash has not yet been determined. Further large-scale sales or distributions,
either by the Mt. Gox bankruptcy estate or other entities with substantial holdings, could result in selling pressure that may reduce
the price of bitcoin and adversely affect an investment in the Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Risks Associated with the BRRNY, BRR and
CME Bitcoin Real Time Price</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The BRRNY, BRR
and CME Bitcoin Real Time Price each have a limited history.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The BRRNY, which was introduced
on February 28, 2022, is based on materially the same methodology (except calculation time) as the BRR, which was first introduced on
November 14, 2016, and is the rate on which bitcoin futures contracts are cash-settled in U.S. dollars at the CME. The BRRNY and the
BRR have a limited history and their value is an average composite reference rate calculated using volume-weighted trading price data
from the Constituent Platforms. A longer history of actual performance through various economic and market conditions would provide greater
and more reliable information for an investor to assess BRRNY&rsquo;s performance. The Benchmark Provider has substantial discretion
at any time to change the methodology used to calculate the BRRNY, including the Constituent Platforms that contribute prices to the
Trust&rsquo;s NAV. The Benchmark Provider does not have any obligation to take the needs of the Trust, the Shareholders, or anyone else
into consideration in connection with such changes. There is no guarantee that the methodology currently used in calculating the BRRNY
will appropriately track the price of bitcoin in the future. Neither the CME Group nor the Benchmark Provider has any obligation to take
the needs of the Trust or the Shareholders into consideration in determining, composing, or calculating the BRRNY or in the selection
of the Constituent Platforms used. The Constituent Platforms are chosen by the Benchmark Provider, under the oversight of the CME CF
Cryptocurrency Pricing Products Oversight Committee.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Although the BRRNY is intended
to accurately capture the market price of bitcoin, third parties may be able to purchase and sell bitcoin on public or private markets
not included among the Constituent Platforms, and such transactions may take place at prices materially higher or lower than the BRRNY
price. Moreover, there may be variances in the prices of bitcoin on the various Constituent Platforms, including as a result of differences
in fee structures or administrative procedures on different Constituent Platforms. While the BRRNY provides a U.S. dollar-denominated
price of bitcoin based on the volume-weighted price of a bitcoin the certain Constituent Platforms, at any given time, the prices on
each such Constituent Platform may not be equal to the value of a bitcoin as represented by the BRRNY. It is possible that the price
of bitcoins on the Constituent Platforms could be materially higher or lower than the BRRNY price. To the extent the BRRNY price differs
materially from the actual prices available on a Constituent Platform, or the global market price of bitcoin, the price of the Shares
may no longer track, whether temporarily or over time, the global market price of bitcoin, which could adversely affect an investment
in the Trust by reducing investors&rsquo; confidence in the Shares&rsquo; ability to track the market price of bitcoins. To the extent
such prices differ materially from the BRRNY price, investors may lose confidence in the Shares&rsquo; ability to track the market price
of bitcoins, which could adversely affect the value of the Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The pricing sources (Constituent
Platforms) used by the BRRNY are digital asset trading venues that facilitate the buying and selling of bitcoin and other digital assets.
Although many pricing sources refer to themselves as &ldquo;exchanges,&rdquo; they are not registered with, or supervised by, the SEC
or CFTC and do not meet the regulatory standards of a national securities exchange or designated contract market. For these reasons,
among others, purchases and sales of bitcoin may be subject to temporary distortions or other disruptions due to various factors, including
the lack of liquidity in the markets and government regulation and intervention. These circumstances could affect the price of bitcoin
used in BRRNY calculations and, therefore, could adversely affect the bitcoin price as reflected by the BRRNY.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Constituent Platforms
have changed over time. For example, effective April 2017, Bitfinex and OKcoin were removed from the BRR due to trading restrictions.
On January 25, 2019, itBit was suspended from the BRR due to data quality issues, which suspension was lifted on February 1, 2019 after
the Benchmark Provider confirmed that data quality assurance measures were in place to identify the errors that the itBit data contained
through a full match of parameters. On August 30, 2019, Gemini was added to the BRR. LMAX Digital wadded to the BRR on May 3, 2021, Bullish
Exchange was added on December 30, 2024 and Crypto.com was added on March 31, 2025.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Benchmark Provider, under
the oversight of the CME CF Cryptocurrency Pricing Products Oversight Committee, may remove or add Constituent Platforms in the future
at its discretion. For more information on the inclusion criteria for Constituent Platforms in the BRRNY, see &ldquo;The Trust and Bitcoin
Prices &mdash; CME CF Bitcoin Reference Rate &ndash; New York Variant&rdquo;.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The BRRNY is based on various
inputs which may include price data from various third-party digital asset trading platforms. Neither the CME Group nor the Benchmark
Provider guarantee the validity of any of these inputs, which may be subject to technological error, manipulative activity, or fraudulent
reporting from their initial source.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trust utilizes the BRRNY
to establish its NAV and NAV per Share. In the event that the BRRNY is incorrectly calculated, is not timely calculated or changes its
calculation methodology in the future, such an occurrence may adversely impact an investment in the Shares or the Trust&rsquo;s operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The CME Bitcoin Real Time
Price also has a limited history and shares some of the same structural and methodological features and risks as the BRRNY. The Trust
utilizes the CME Bitcoin Real Time Price to establish its ITV. While investors are capable of assessing the intra-day movement of the
price of the Shares and the bitcoin market price of bitcoin, Shareholders may use the ITV as a data point in their assessment of the
value of the Shares. In the event that the CME Bitcoin Real Time Price is incorrectly calculated, is not timely calculated or changes
its calculation methodology in the future, such an occurrence may adversely impact the utility of the ITV to Shareholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Although the BRRNY and CME
Bitcoin Real Time Price are designed to accurately capture the market price of bitcoin, third parties may be able to purchase and sell
bitcoin on public or private markets not included among the Constituent Platforms of the BRRNY and CME Bitcoin Real Time Price, and such
transactions may take place at prices materially higher or lower than the level of the BRRNY used to establish the NAV. To the extent
such prices differ materially from the level of the BRRNY used to establish the NAV, investors may lose confidence in the Shares&rsquo;
ability to track the market price of bitcoin, which could adversely affect an investment in the Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>


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<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Benchmark
Provider could experience systems failures or errors.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">If the computers or other
facilities of the Benchmark Provider, data providers and/or relevant stock exchange malfunction for any reason, calculation and dissemination
of the BRRNY may be delayed. Errors in BRRNY data, the BRRNY computations and/or construction may occur from time to time and may not
be identified and/or corrected for a period of time or at all, which may have an adverse impact on the Trust and the Shareholders. Any
of the foregoing may lead to the errors in the BRRNY, which may lead to a different investment outcome for the Trust and its Shareholders
than would have been the case had such events not occurred. The BRRNY is the reference price for calculating the Trust&rsquo;s NAV. Consequently,
losses or costs associated with the BRRNY&rsquo;s errors or other risks described above will generally be borne by the Trust and the
Shareholders and neither the Sponsor nor its affiliates or agents make any representations or warranties regarding the foregoing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">If the BRRNY is not available,
the Trust&rsquo;s holdings may be fair valued in accordance with the policy approved by the Sponsor. If the BRRNY is not available, or
if the Sponsor determines, in its sole discretion, that the BRRNY does not reflect an accurate bitcoin price, the Trust&rsquo;s holdings
may be &ldquo;fair valued&rdquo; in accordance with the valuation policies approved by the Sponsor. Those valuation policies stipulate
that when seeking to fair value bitcoin, the Sponsor may apply all available factors the Sponsor deems relevant at the time of the determination,
and may be based on analytical values determined by the Sponsor using third-party valuation models. Pursuant thereto, the Sponsor expects
to utilize a volume weighted average price or volume weighted median price of bitcoin provided by a secondary pricing source (&ldquo;Secondary
Source&rdquo;). If a Secondary Source is not available or the Sponsor in its sole discretion determines the Secondary Sources are unreliable,
the price set by the Trust&rsquo;s principal market as of 4:00 p.m. ET, on the valuation date would be considered for utilization. In
the event the principal market price is not available or the Sponsor in its sole discretion determines the principal market valuation
is unreliable the Sponsor will use its best judgment to determine a good faith estimate of fair value based upon all available factors.
The Sponsor does not anticipate that the need to &ldquo;fair value&rdquo; bitcoin will be a common occurrence.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">To the extent the valuation
determined in accordance with the policy approved by the Sponsor differs materially from the actual market price of bitcoin, the price
of the Shares may no longer track, whether temporarily or over time, the global market price of bitcoin, which could adversely affect
an investment in the Trust by reducing investors&rsquo; confidence in the Shares&rsquo; ability to track the global market price of bitcoin.
To the extent such prices differ materially from the market price for bitcoin, investors may lose confidence in the Shares&rsquo; ability
to track the market price of bitcoins, which could adversely affect the value of the Shares. The Sponsor does not anticipate that the
need to &ldquo;fair value&rdquo; bitcoin will be a common occurrence.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The BRRNY could
fail to track the global bitcoin price and a failure of the BRRNY could adversely affect the value of the Shares.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Although the BRRNY is intended
to accurately capture the market price of bitcoin, third parties may be able to purchase and sell bitcoin on public or private markets
not included among the Constituent Platforms, and such transactions may take place at prices materially higher or lower than the BRRNY
price. Moreover, there may be variances in the prices of bitcoin on the various Constituent Platforms, including as a result of differences
in fee structures or administrative procedures on different Constituent Platforms. While the BRRNY provides a U.S. dollar-denominated
composite for the price of bitcoin based on the volume-weighted price of a bitcoin on certain Constituent Platforms, at any given time,
the prices on each such Constituent Platform or pricing source may not be equal to the value of a bitcoin as represented by the BRRNY.
It is possible that the price of bitcoins on the Constituent Platforms could be materially higher or lower than the BRRNY price. To the
extent the BRRNY price differs materially from the actual prices available on a Constituent Platform, or the global market price of bitcoin,
the price of the Shares may no longer track, whether temporarily or over time, the global market price of bitcoin, which could adversely
affect an investment in the Trust by reducing investors&rsquo; confidence in the Shares&rsquo; ability to track the market price of bitcoin.
To the extent such prices differ materially from the BRRNY price, investors may lose confidence in the Shares&rsquo; ability to track
the market price of bitcoins, which could adversely affect the value of the Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Sponsor can
discontinue using the BRRNY and use a different pricing or valuation methodology instead.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Sponsor, in its sole
discretion, may cause the Trust to price its portfolio based upon an index, benchmark or standard other than the BRRNY at any time, with
prior notice to the Shareholders, if investment conditions change or the Sponsor believes that another index, benchmark or standard better
aligns with the Trust&rsquo;s investment objective and strategy. The Sponsor may make this decision for a number of reasons, including,
but not limited to, a determination that the BRRNY price of bitcoin differs materially from the global market price of bitcoin and/or
that third parties are able to purchase and sell bitcoin on public or private markets not included among the Constituent Platforms, and
such transactions may take place at prices materially higher or lower than the BRRNY price. The Sponsor, however, is under no obligation
whatsoever to make such changes in any circumstance. In the event that the Sponsor intends to establish the Trust&rsquo;s NAV by reference
to an index, benchmark or standard other than the BRRNY, it will provide Shareholders with notice in a prospectus supplement and/or through
a current report on Form 8-K or in the Trust&rsquo;s annual or quarterly reports.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The BRRNY price
used to calculate the value of the Trust&rsquo;s bitcoin may be volatile, adversely affecting the value of the Shares.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The price of bitcoin on public
digital asset trading platforms has a limited history, and during this history, bitcoin prices on the digital asset markets more generally,
and on digital asset trading platforms individually, have been volatile and subject to influence by many factors, including operational
interruptions. While the BRRNY is designed to limit exposure to the interruption of individual digital asset trading platforms, the BRRNY
price, and the price of bitcoin generally, remains subject to volatility experienced by digital asset exchanges, and such volatility
could adversely affect the value of the Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Furthermore, because the
number of liquid and credible digital asset trading platforms is limited, the BRRNY will necessarily be composed of a limited number
of digital asset trading platforms. If a digital asset trading platform were subjected to regulatory, volatility or other pricing issues,
the Benchmark Provider would have limited ability to remove such digital asset trading platform from the BRRNY, which could skew the
price of bitcoin as represented by the BRRNY. Trading on a limited number of digital asset trading platforms may result in less favorable
prices and decreased liquidity of bitcoin and, therefore, could have an adverse effect on the value of the Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The BRRNY price
being used to determine the NAV of the Trust may not be consistent with GAAP. To the extent that the Trust&rsquo;s financial statements
are determined using a different pricing source that is consistent with GAAP, the NAV reported in the Trust&rsquo;s periodic financial
statements may differ, in some cases significantly, from the Trust&rsquo;s NAV determined using the BRRNY pricing.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trust will determine
the NAV of the Trust on each business day based on the value of bitcoin as reflected by the BRRNY. The methodology used to calculate
the BRRNY price to value bitcoin in determining the NAV of the Trust may not be deemed consistent with GAAP. To the extent the methodology
used to calculate the BRRNY is deemed inconsistent with GAAP, the Trust will utilize an alternative GAAP-consistent pricing source for
purposes of the Trust&rsquo;s periodic financial statements. Creation and redemption of Baskets, the Sponsor Fee and other expenses borne
by the Trust will be determined using the Trust&rsquo;s NAV determined daily based on the BRRNY. Such NAV of the Trust determined using
the BRRNY price may differ, in some cases significantly, from the NAV reported in the Trust&rsquo;s periodic financial statements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">Risks Related to Pricing.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trust&rsquo;s portfolio
will be priced, including for purposes of determining the NAV, based upon the BRRNY. The price of bitcoin in U.S. dollars or in other
currencies available from other data sources may not be equal to the prices used to calculate the NAV.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The NAV of the Trust will
change as fluctuations occur in the market price of the Trust&rsquo;s bitcoin holdings as reflected in the BRRNY. Shareholders should
be aware that the public trading price per Share may be different from the NAV for a number of reasons, including price volatility, trading
activity, the closing of bitcoin trading platforms due to fraud, failure, security breaches or otherwise, and the fact that supply and
demand forces at work in the secondary trading market for Shares are related, but not identical, to the supply and demand forces influencing
the market price of bitcoin.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Shareholders also should
note that the size of the Trust in terms of total bitcoin held may change substantially over time and as Baskets are created and redeemed.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In the event that the value
of the Trust&rsquo;s bitcoin holdings or bitcoin holdings per Share is incorrectly calculated, neither the Sponsor nor the Administrator
will be liable for any error and such misreporting of valuation data could adversely affect the value of the Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Risks Associated with Investing in the Trust</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trust is
subject to market risk.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Market risk refers to the
risk that the market price of bitcoin held by the Trust will rise or fall, sometimes rapidly or unpredictably. An investment in the Shares
is subject to market risk, including the possible loss of the entire principal of the investment.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trust is
a passive investment vehicle. The Trust is not actively managed and will be affected by a general decline in the price of bitcoin.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Sponsor does not actively
manage the bitcoin held by the Trust. This means that the Sponsor does not sell bitcoin at times when its price is high, or acquire bitcoin
at low prices in the expectation of future price increases. It also means that the Sponsor does not make use of any of the hedging techniques
available to professional bitcoin investors to attempt to reduce the risks of losses resulting from price decreases. Any losses sustained
by the Trust will adversely affect the value of the Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The NAV may not
always correspond to the market price of bitcoin and, as a result, Baskets may be created or redeemed at a value that is different from
the market price of the Shares.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The NAV of the Trust will
change as fluctuations occur in the market price of the Trust&rsquo;s bitcoin holdings. Shareholders should be aware that the public
trading price per Share may be different from the NAV for a number of reasons, including price volatility, trading activity, the closing
of digital asset trading platforms due to fraud, failure, security breaches or otherwise, and the fact that supply and demand forces
at work in the secondary trading market for Shares are related, but not identical, to the supply and demand forces influencing the market
price of bitcoin.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">An Authorized Participant
may be able to create or redeem a Basket at a discount or a premium to the public trading price per Share, although some creations or
redemptions may take place in kind, and the Trust will therefore maintain its intended fractional exposure to a specific amount of bitcoin
per Share.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Shareholders also should
note that the size of the Trust in terms of total bitcoin held may change substantially over time and as Baskets are created and redeemed.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">When acquiring bitcoin in
connection with a Cash Creation Order, it is possible that the Trust will pay a higher price for bitcoin than the value ascribed to bitcoin
by the BRRNY, the rate used to calculate the Trust&rsquo;s NAV. This is known as &ldquo;slippage.&rdquo; While transactions in any asset
are subject to the risk of slippage, it is possible that transactions in digital assets may be more susceptible. The Trust seeks to minimize
the risk of slippage by basing the amount of cash an Authorized Participant is required to deposit to consummate a Cash Creation Order
for Baskets on the price the Trust actually paid for the bitcoin rather than on the value of bitcoin ascribed by the BRRNY. Nonetheless,
there can be no guarantee that the Trust will not be negatively affected by slippage from time to time.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Shares may
trade at a discount or premium in the trading price relative to the NAV as a result of non-concurrent trading hours between the Exchange
and digital asset trading platforms. Non-concurrent trading hours may also result in the Shares gapping at the open of trading on the
Exchange.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The value of a Share may
be influenced by non-concurrent trading hours between the Exchange and various digital asset trading platforms, including the Constituent
Platforms of the BRRNY. Additionally, Shares may be traded at other times and in other venues. While U.S. equity markets are open for
trading in the Shares for a limited period each day, the bitcoin market is a 24-hour marketplace; however, trading volume and liquidity
on the bitcoin market is not consistent throughout the day and digital asset trading platforms, including the larger-volume markets,
have been known to shut down temporarily or permanently due to security concerns, directed denial of service attacks and other reasons.
As a result, during periods when U.S. equity markets is open but large portions of the bitcoin market are either lightly traded or are
closed, trading spreads and the resulting premium or discount on the Shares may widen and, therefore, increase the difference between
the price of the Shares and the NAV. Premiums or discounts may have an adverse effect on an investment in the Shares if a Shareholder
sells or acquires its Shares during a period of discount or premium, respectively.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">During periods when U.S.
equity markets are closed but digital asset trading platforms are open, significant changes in the price of bitcoin could result in a
difference in performance between the price of bitcoin and the most recent Share price. To the extent that the price of bitcoin moves
significantly in a negative direction after the close of U.S. equity markets, the trading price of the Shares may &ldquo;gap&rdquo; down
to the full extent of such negative price shift when U.S. equity markets reopen. To the extent that the price of bitcoin drops significantly
during hours in which U.S. equity markets are closed, investors may not be able to sell their Shares until after the &ldquo;gap&rdquo;
down has been fully realized, resulting in an inability to mitigate losses in a rapidly negative market.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Sponsor&rsquo;s,
an Authorized Participant&rsquo;s or an Authorized Participant Designee&rsquo;s buying and selling activity associated with the creation
and redemption of Baskets may adversely affect an investment in the Shares.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Buying activity associated
with purchases of bitcoin by the Sponsor, an Authorized Participant or Authorized Participant Designee in connection with Cash Creation
Orders may cause the price of bitcoin to increase, which will result in higher prices for the Shares. Increases in the bitcoin prices
may also occur as a result of bitcoin purchases by other market participants who attempt to benefit from an increase in the market price
of bitcoin when Baskets are created. The market price of bitcoin may therefore decline immediately after Baskets are created.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Selling activity associated
with sales of bitcoin by the Sponsor, an Authorized Participant or Authorized Participant Designee in connection with Cash Redemption
Orders may decrease the bitcoin prices, which will result in lower prices for the Shares. Decreases in bitcoin prices may also occur
as a result of selling activity by other market participants.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In addition to the effect
that purchases and sales of bitcoin by the Sponsor, Authorized Participant, Authorized Participant Designee, and other market participants
may have on the price of bitcoin, other exchange-traded products or large private investment vehicles with similar investment objectives
(if developed) could represent a substantial portion of demand for bitcoin at any given time and the sales and purchases by such investment
vehicles may impact the price of bitcoin. If the price of bitcoin declines, the trading price of the Shares will generally also decline.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The inability
of Authorized Participants and market makers to hedge their bitcoin exposure may adversely affect the liquidity of Shares and the value
of an investment in the Shares.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Authorized Participants and
market makers will generally want to hedge their exposure in connection with Basket creation and redemption orders. To the extent Authorized
Participants and market makers are unable to hedge their exposure due to market conditions (e.g., insufficient bitcoin liquidity in the
market, inability to locate an appropriate hedge counterparty, extreme volatility in the price of bitcoin, wide spreads between prices
quotes on different bitcoin trading platforms, the closing of bitcoin trading platforms due to fraud, failures, security breaches or
otherwise etc.), such conditions may make it difficult to create or redeem Baskets or cause them to not create or redeem Baskets. In
addition, the hedging mechanisms employed by Authorized Participants and market makers to hedge their exposure to bitcoin may not function
as intended, which may make it more difficult for them to enter into such transactions. Such events could negatively impact the market
price of Shares and the spread at which Shares trade on the open market. To the extent Authorized Participants wish to use futures to
hedge their exposure, note that while growing in recent years, the market for exchange-traded bitcoin futures has a limited trading history
and operational experience and may be less liquid, more volatile and more vulnerable to economic, market and industry changes than more
established futures markets. The liquidity of the market will depend on, among other things, the adoption of bitcoin and the commercial
and speculative interest in the market.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Arbitrage transactions
intended to keep the price of Shares closely linked to the price of bitcoin may be problematic if the process for the creation and redemption
of Baskets encounters difficulties, which may adversely affect an investment in the Shares.</P>
<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">If the processes of creation
and redemption of Shares (which depend on timely transfers of bitcoin to and by the Bitcoin Custodian) encounter any unanticipated difficulties
due to, for example, the price volatility of bitcoin, the insolvency, business failure or interruption, default, failure to perform,
security breach, or other problems affecting the Prime Execution Agent, Bitcoin Custodian, an Authorized Participant or Authorized Participant
Designee, the closing of bitcoin trading platforms due to fraud, failures, security breaches or otherwise, or network outages or congestion,
spikes in transaction fees demanded by miners, or other problems or disruptions affecting the Bitcoin network, then potential market
participants, such as the Authorized Participants and their customers, who would otherwise be willing to create or redeem Baskets to
take advantage of any arbitrage opportunity arising from discrepancies between the price of the Shares and the price of the underlying
bitcoin may not take the risk that, as a result of those difficulties, they may not be able to realize the profit they expect.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Alternatively, in the case
of a network outage or other problems affecting the Bitcoin network, the processing of transactions on the Bitcoin network may be disrupted,
which in turn may prevent Bitcoin Trading Counterparties, Authorized Participants, Authorized Participant Designees or other market participants
from depositing or withdrawing bitcoin from their custody accounts, which in turn could affect the creation or redemption of Baskets.
If this is the case, the liquidity of the Shares may decline and the price of the Shares may fluctuate independently of the price of
bitcoin and may fall or otherwise diverge from NAV. Furthermore, in the event that the market for bitcoin should become relatively illiquid
and thereby materially restrict opportunities for arbitraging by delivering bitcoin in return for Baskets, the price of Shares may diverge
from the value of bitcoin.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Investors may
be adversely affected by Creation Orders or Redemption Orders that are subject to postponement, suspension or rejection under certain
circumstances.</P>
<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trust may, in its discretion,
suspend the right of creation or redemption or may postpone the redemption or creation settlement date, for (1) for any period during
which the Exchange is closed other than customary weekend or holiday closings, or trading on the Exchange is suspended or restricted,
(2) any period during which an emergency exists as a result of which the fulfillment of a Creation Order or the redemption distribution
is not reasonably practicable (for example, as a result of an interruption in services or availability of the Prime Execution Agent,
Bitcoin Custodian, Cash Custodian, Administrator, or other service providers to the Trust, act of God, catastrophe, civil disturbance,
government prohibition, war, terrorism, strike or other labor dispute, fire, force majeure, interruption in telecommunications, Internet
services, or network provider services, unavailability of Fedwire, SWIFT or banks&rsquo; payment processes, significant technical failure,
bug, error, disruption or fork of the Bitcoin network, hacking, cybersecurity breach, or power, Internet, or Bitcoin network outage,
or similar event), or (3) such other period as the Sponsor determines to be necessary for the protection of the Shareholders of the Trust
(for example, where acceptance of bitcoin or the U.S. dollars needed to create each Basket would have certain adverse tax consequences
to the Trust or its Shareholders). In addition, the Trust may reject a redemption order if the order is not in proper form as described
in the Authorized Participant Agreement or if the fulfillment of the order might be unlawful. Any such postponement, suspension or rejection
could adversely affect a redeeming Authorized Participant. Suspension of creation privileges may adversely impact how the Shares are
traded and arbitraged in the secondary market, which could cause Shares to trade at levels materially different (premiums and discounts)
from the value of their underlying bitcoin.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Investors may
be adversely affected by an overstatement or understatement of the NAV calculation of the Trust due to the valuation method employed
on the date of the NAV calculation.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In certain circumstances,
the Trust&rsquo;s bitcoin investments may be valued using techniques other than reliance on the price established by the BRRNY. The value
established by using the BRRNY may be different from what would be produced through the use of another methodology. The value of bitcoin
or other digital asset investments valued using techniques other than those employed by the BRRNY, including &ldquo;fair valuation measures,&rdquo;
may differ from the value of bitcoin determined by reference to the BRRNY.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">If the BRRNY is not available,
or if the Sponsor determines, in its sole discretion, that the BRRNY does not reflect an accurate bitcoin price, the Trust&rsquo;s holdings
may be &ldquo;fair valued&rdquo; in accordance with the valuation policies approved by the Sponsor. Those valuation policies stipulate
that when seeking to fair value bitcoin, the Sponsor may apply all available factors the Sponsor deems relevant at the time of the determination,
and may be based on analytical values determined by the Sponsor using third-party valuation models. Pursuant thereto, the Sponsor expects
to utilize a volume weighted average price or volume weighted median price of bitcoin provided by a Secondary Source. If a Secondary
Source is not available or the Sponsor in its sole discretion determines the Secondary Sources are unreliable, the price set by the Trust&rsquo;s
principal market as of 4:00 p.m. ET, on the valuation date would be considered for utilization. In the event the principal market price
is not available or the Sponsor in its sole discretion determines the principal market valuation is unreliable the Sponsor will use its
best judgment to determine a good faith estimate of fair value based upon all available factors. The Sponsor does not anticipate that
the need to &ldquo;fair value&rdquo; bitcoin will be a common occurrence.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>


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    <!-- Field: /Page -->

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">As an owner of
Shares, you will not have the rights normally associated with ownership of other types of shares.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Shares are not entitled to
the same rights as shares issued by a corporation. By acquiring Shares, you are not acquiring the right to elect directors, to receive
dividends, to vote on certain matters regarding the issuer of the Shares or to take other actions normally associated with the ownership
of shares. You will only have the limited rights described under &ldquo;Description of the Shares and the Trust Agreement.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Sponsor and
the Trustee may agree to amend the Trust Agreement or Sponsor Agreement without the consent of the Shareholders.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Sponsor and the Trustee
may agree to amend the Trust Agreement or Sponsor Agreement without Shareholder consent. The Sponsor shall determine the contents and
manner of delivery of any notice of any Trust Agreement amendment. Such notice may be provided on the Trust&rsquo;s website, in a prospectus
supplement, through a current report on Form 8-K and/or in the Trust&rsquo;s annual or quarterly reports. If an amendment to the Trust
Agreement or Sponsor Agreement imposes new fees and charges or increases existing fees or charges, including the Sponsor Fee (except
for taxes and other governmental charges, registration fees or other such expenses), or prejudices a substantial right of Shareholders,
it will become effective for outstanding Shares 30 days after notice of such amendment is given to registered owners. Shareholders that
are not registered owners (which most Shareholders will not be) may not receive specific notice of a fee increase other than through
an amendment to the prospectus. Moreover, at the time an amendment becomes effective, by continuing to hold Shares, Shareholders are
deemed to agree to the amendment and to be bound by the Trust Agreement and Sponsor Agreement as amended without specific agreement to
such increase.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trust is
subject to risks due to its concentration of investments in a single asset class.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Unlike other funds that may
invest in diversified assets, the Trust&rsquo;s investment strategy is concentrated in a single asset class: bitcoin. This concentration
maximizes the degree of the Trust&rsquo;s exposure to a variety of market risks associated with bitcoin. 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 and will not be offset by other gains if the Trust were to invest in underlying assets that were diversified.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">A possible &ldquo;short
squeeze&rdquo; due to a sudden increase in demand for the Shares that largely exceeds supply may lead to price volatility in the Shares.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Investors may purchase Shares
to hedge existing bitcoin or other digital asset, commodity or currency exposure or to speculate on the price of bitcoin. Speculation
on the price of bitcoin may involve long and short exposures. To the extent that aggregate short exposure exceeds the number of Shares
available for purchase (for example, in the event that large redemption requests by Authorized Participants dramatically affect Share
liquidity), investors with short exposure may have to pay a premium to repurchase Shares for delivery to Share lenders. Those repurchases
may, in turn, dramatically increase the price of the Shares until additional Shares are created through the creation process. This is
often referred to as a &ldquo;short squeeze.&rdquo; A short squeeze could lead to volatile price movements in the Shares that are not
directly correlated to the price of bitcoin.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">As the Sponsor
and its management have a limited history of operating an investment vehicle like the Trust, their experience may be inadequate or unsuitable
to manage the Trust.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Sponsor has no history
of past performance in managing a bitcoin exchange-traded product, which is a novel type of investment product. In addition, the Sponsor
is not, and the Sponsor believes it is not required to be, registered as an investment adviser under the Investment Advisers Act of 1940
(the &ldquo;Advisers Act&rdquo;) or a commodity pool operator or commodity trading adviser under the Commodity Exchange Act. The past
performances of the Sponsor&rsquo;s management in other positions, including their experiences in private funds that hold bitcoin and
traditional exchange-traded funds investing in securities, are an imperfect indication of their ability to manage an investment vehicle
such as the Trust. If the experience of the Sponsor and its management is inadequate or unsuitable to manage an investment vehicle such
as the Trust, the operations of the Trust may be adversely affected.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>


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<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Security threats
and cyber-attacks could result in the halting of Trust operations and a loss of Trust assets or damage to the reputation of the Trust,
each of which could result in a reduction in the price of the Shares.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Security breaches, cyber-attacks,
computer malware and computer hacking attacks have been a prevalent concern in relation to digital assets. Multiple thefts of bitcoin
and other digital assets from other holders have occurred in the past. Because of the pseudonymous nature of the Bitcoin blockchain,
thefts can be difficult to trace, which may make bitcoin a particularly attractive target for theft. Cyber security failures or breaches
of one or more of the Trust&rsquo;s service providers (including but not limited to, the Transfer Agent, the Marketing Agent, the Administrator,
Cash Custodian, the Bitcoin Custodian or Authorized Participant) have the ability to cause disruptions and impact business operations,
potentially resulting in financial losses, violations of applicable privacy and other laws, regulatory fines, penalties, reputational
damage, reimbursement or other compensation costs, and/or additional compliance costs.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trust and its service
providers&rsquo; use of internet, technology and information systems (including mobile devices and cloud-based service offerings) may
expose the Trust to potential risks linked to cyber-security breaches of those technological or information systems. The Sponsor believes
that the Trust&rsquo;s bitcoins held in the Trust Bitcoin Account at the Bitcoin Custodian or Trading Balance held with the Prime Execution
Agent will be an appealing target to hackers or malware distributors seeking to destroy, damage or steal the Trust&rsquo;s bitcoins and
will only become more appealing as the Trust&rsquo;s assets grow. To the extent that the Trust, Sponsor, Bitcoin Custodian or Prime Execution
Agent is unable to identify and mitigate or stop new security threats or otherwise adapt to technological changes in the digital asset
industry, the Trust&rsquo;s bitcoins may be subject to theft, loss, destruction or other attack.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Sponsor believes that
the security procedures in place for the Trust, including but not limited to, offline storage, or cold storage, multiple encrypted private
key &ldquo;shards&rdquo;, and other measures, are reasonably designed to safeguard the Trust&rsquo;s bitcoins. Nevertheless, the security
procedures cannot guarantee the prevention of any loss due to a security breach, software defect or act of God that may be borne by the
Trust and the security procedures may not protect against all errors, software flaws or other vulnerabilities in the Trust&rsquo;s technical
infrastructure, which could result in theft, loss or damage of its assets. The Sponsor does not control the Bitcoin Custodian&rsquo;s
or Prime Execution Agent&rsquo;s operations or their implementation of such security procedures and there can be no assurance that such
security procedures will actually work as designed or prove to be successful in safeguarding the Trust&rsquo;s assets against all possible
sources of theft, loss or damage. Assets not held in cold storage, such as assets held in a trading account, may be more vulnerable to
security breach, hacking or loss than assets held in cold storage. Furthermore, assets held in a trading account, including the Trust&rsquo;s
Trading Balance at the Prime Execution Agent, are held on an omnibus, rather than segregated basis, which creates greater risk of loss.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The security procedures and
operational infrastructure may be breached due to the actions of outside parties, error or malfeasance of an employee of the Sponsor,
Prime Execution Agent, Bitcoin Custodian, or otherwise, and, as a result, an unauthorized party may obtain access to the Trust Bitcoin
Account with the Bitcoin Custodian or the Trust&rsquo;s Trading Balance with the Prime Execution Agent, the private keys (and therefore
bitcoin) or other data of the Trust. Additionally, outside parties may attempt to fraudulently induce employees of the Sponsor, Bitcoin
Custodian, Prime Execution Agent or the Trust&rsquo;s other service providers to disclose sensitive information in order to gain access
to the Trust&rsquo;s infrastructure. As the techniques used to obtain unauthorized access, disable or degrade service, or sabotage systems
change frequently, or may be designed to remain dormant until a predetermined event and often are not recognized until launched against
a target, the Sponsor, Bitcoin Custodian or Prime Execution Agent may be unable to anticipate these techniques or implement adequate
preventative measures.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">An actual or perceived breach
of the Trust Bitcoin Account with the Bitcoin Custodian or the Trust&rsquo;s Trading Balance with the Prime Execution Agent could harm
the Trust&rsquo;s operations, result in partial or total loss of the Trust&rsquo;s assets, damage the Trust&rsquo;s reputation and negatively
affect the market perception of the effectiveness of the Trust, all of which could in turn reduce demand for the Shares, resulting in
a reduction in the price of the Shares. The Trust may also cease operations, the occurrence of which could similarly result in a reduction
in the price of the Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">While the Sponsor and the
Trust&rsquo;s service providers have established business continuity plans and systems that they respectively believe are reasonably
designed to prevent cyber attacks, there are inherent limitations in such plans and systems including the possibility that certain risks
have not been, or cannot be, identified. Service providers may have limited indemnification obligations to the Trust, which could be
negatively impacted as a result.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">If the Trust&rsquo;s holdings
of bitcoin are lost, stolen or destroyed under circumstances rendering a party liable to the Trust, the responsible party may not have
the financial resources sufficient to satisfy the Trust&rsquo;s claim. For example, as to a particular event of loss, the only source
of recovery for the Trust may be limited to the relevant custodian or, to the extent identifiable, other responsible third parties (for
example, a thief or terrorist), any of which may not have the financial resources (including liability insurance coverage) to satisfy
a valid claim of the Trust. Similarly, as noted below, the Bitcoin Custodian and Prime Execution Agent have limited liability to the
Trust, which could adversely affect the Trust&rsquo;s ability to seek recovery from them, even when the Bitcoin Custodian&rsquo;s or
Prime Execution Agent&rsquo;s actions or failure to act are the cause of the Trust&rsquo;s loss.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">It may not be possible, either
because of a lack of available policies or because of prohibitive cost, for the Trust to obtain insurance that would cover losses of
the Trust&rsquo;s bitcoin. If an uninsured loss occurs or a loss exceeds policy limits, the Trust could lose all of its assets.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trust&rsquo;s
risk management processes and policies may prove to not be adequate to prevent any loss of the Trust&rsquo;s bitcoin.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Sponsor is continuing
to monitor and evaluate the Trust&rsquo;s risk management processes and policies and believes that the current risk management processes
and procedures are reasonably designed and effective. The Sponsor believes that the security procedures that the Sponsor, Bitcoin Custodian
and Prime Execution Agent utilize, such as hardware redundancy, segregation and offline data storage (<I>i.e.</I>, the maintenance of
data on computers and/or storage media that is not directly connected to or accessible from the internet and/or networked with other
computers, also known as &ldquo;cold storage&rdquo;) protocols are reasonably designed to safeguard the Trust&rsquo;s bitcoin from theft,
loss, destruction or other issues relating to hackers and technological attack. Despite the number of security procedures that the Sponsor,
Bitcoin Custodian and Prime Execution Agent employ, it is impossible to guarantee the prevention of any loss due to a security breach,
software defect, act of God, pandemic or riot that may be borne by the Trust. Notwithstanding the above, the Sponsor, Bitcoin Custodian
and Prime Execution Agent are responsible for their own gross negligence, willful misconduct or bad faith. In the event that the Trust&rsquo;s
risk management processes and policies prove to not be adequate to prevent any loss of the Trust&rsquo;s bitcoin and such loss is not
covered by insurance or is otherwise recoverable, the value of the Shares will decrease as a result and investors would experience a
decrease in the value of their investment.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The development
and commercialization of the Trust is subject to competitive pressures.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trust and the Sponsor
face competition with respect to the creation of competing products. The Sponsor&rsquo;s competitors may have greater financial, technical
and human resources than the Sponsor. These competitors may also compete with the Sponsor in recruiting and retaining qualified personnel.
Smaller or early-stage companies may also prove to be effective competitors, particularly through collaborative arrangements with large
and established companies. While the Trust currently has a commercially viable amount of assets, there is no guarantee that the Trust
will continue to maintain that level into the future. The Trust&rsquo;s competitors may also charge a substantially lower fee than the
Sponsor Fee in order to achieve initial market acceptance and scale. Accordingly, the Sponsor&rsquo;s competitors may commercialize a
competing product more rapidly or effectively than the Sponsor is able to, which could adversely affect the Sponsor&rsquo;s competitive
position and could have a detrimental effect on the scale and sustainability of the Trust. If the Trust fails to maintain sufficient
scale due to competition, the Sponsor may have difficulty raising sufficient revenue to cover the costs associated with launching and
maintaining the Trust and such shortfalls could impact the Sponsor&rsquo;s ability to properly invest in robust ongoing operations and
controls of the Trust to minimize the risk of operating events, errors, or other forms of losses to the Shareholders. The Trust may also
fail to continue to attract adequate liquidity in the secondary market due to such competition, resulting in a substandard number of
Authorized Participants willing to make a market in the Shares, which in turn could result in a significant premium or discount in the
Shares for extended periods and the Trust&rsquo;s failure to reflect the performance of the price of bitcoin.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In addition, the Trust will
compete with direct investments in bitcoin, bitcoin futures-based products, other digital assets and other potential financial vehicles,
possibly including securities backed by or linked to digital assets and other investment vehicles that focus on other digital assets.
Market and financial conditions, and other conditions beyond the Trust&rsquo;s control, may make it more attractive to invest directly
or in other vehicles, which could adversely affect the performance of the Trust.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>


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    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">To the extent that the Trust
incurs transaction expenses in connection with the creation and redemption process, litigation expenses, indemnification obligations
under the Trust&rsquo;s service provider agreements and other extraordinary expenses that are not borne by the Sponsor, such expenses
will be borne by the Trust. To the extent that the Trust fails to attract a sufficiently large amount of investors, the effect of such
expenses on the value of the Shares may be significantly greater than would be the case if the Trust had attracted more assets.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The lack of active
trading markets for the Shares may result in losses on investors&rsquo; investments at the time of disposition of Shares.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Although Shares are expected
to be publicly listed and traded on the Exchange, there can be no guarantee that an active trading market for the Trust will develop
or be maintained. If investors need to sell their Shares at a time when no active market for them exists, the price investors receive
for their Shares, assuming that investors are able to sell them, likely will be lower than the price that investors would receive if
an active market did exist and, accordingly, a Shareholder may suffer losses.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Possible illiquid
markets may exacerbate losses or increase the variability between the Trust&rsquo;s NAV and its market price.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Bitcoin is a novel asset
with a very limited trading history. Therefore, the markets for bitcoin may be less liquid and more volatile than other markets for more
established products, such as futures contracts for traditional physical commodities. It may be difficult to execute a bitcoin trade
at a specific price when there is a relatively small volume of buy and sell orders in the bitcoin market. A market disruption can also
make it more difficult to liquidate a position or find a suitable counterparty at a reasonable cost.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Market illiquidity may cause
losses for the Trust. The large size of the positions that the Trust may acquire will increase the risk of illiquidity by both making
the positions more difficult to liquidate and increasing the losses incurred while trying to do so should the Trust need to liquidate
its bitcoin. Any type of disruption or illiquidity will potentially be exacerbated due to the fact that the Trust will typically invest
in bitcoin, which is highly concentrated.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trust&rsquo;s
bitcoin may be subject to loss, damage, theft or restriction on access.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">There is a risk that part
or all of the Trust&rsquo;s bitcoin could be lost, stolen or destroyed, potentially by the loss or theft of the private keys held by
the Bitcoin Custodian or Prime Execution Agent associated with Trust&rsquo;s bitcoin. The Sponsor believes that the Bitcoin Custodian&rsquo;s
and Prime Execution Agent&rsquo;s operations are an appealing target to hackers or malware distributors seeking to destroy, damage or
steal bitcoin or private keys. Although the Bitcoin Custodian and Prime Execution Agent use multiple means and layers of security to
minimize the risk of loss, damage and theft, neither the Bitcoin Custodian, Prime Execution Agent nor the Sponsor can guarantee that
such security will prevent such loss, damage or theft, whether caused intentionally, accidentally or by act of God. Access to the Trust&rsquo;s
bitcoin could also be restricted by natural events (such as an earthquake or flood), human actions (such as a terrorist attack) or security
or compliance measures (such as in response to a hard fork). Any of these events may adversely affect the operations of the Trust and,
consequently, an investment in the Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Several factors
may affect the Trust&rsquo;s ability to achieve its investment objective on a consistent basis.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">There is no guarantee that
the Trust will meet its investment objectives. Factors that may affect the Trust&rsquo;s ability to meet its investment objective include:
(1) the Sponsor&rsquo;s, an Authorized Participant&rsquo;s or Authorized Participant Designee&rsquo;s ability to purchase and sell bitcoin
in an efficient manner to effectuate Creation Orders and Redemption Orders; (2) transaction fees associated with the Bitcoin network;
(3) the bitcoin market becoming illiquid or disrupted; (4) the Share prices being rounded to the nearest cent and/or valuation methodologies;
(5) the need to conform the Trust&rsquo;s portfolio holdings to comply with investment restrictions or policies or regulatory or tax
law requirements; (6) early or unanticipated closings of the markets on which bitcoin trades, resulting in the inability of an Authorized
Participant&rsquo;s, or its Authorized Participant Designee&rsquo;s, to execute intended portfolio transactions; (7) operational or methodological
issues with the BRRNY that result in the benchmark used by the Trust not accurately representing the true value of the Trust&rsquo;s
bitcoin holdings; and (8) accounting standards.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The amount of
bitcoin represented by a Share will decline over time.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The amount of bitcoin represented
by a Share will continue to be reduced during the life of the Trust due to the transfer of the Trust&rsquo;s bitcoin to pay the Sponsor
Fee and to pay for extraordinary, non-recurring expenses not assumed by the Sponsor. This dynamic will occur irrespective of whether
the trading price of the Shares rises or falls in response to changes in the price of bitcoin. In addition, in the very rare event that
Trade Credits (as defined below) are utilized in connection with the payment of Trust expenses not assumed by the Sponsor, any interest
payable on the Trade Credits will be the responsibility of the Trust.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Each outstanding Share represents
a unit of undivided beneficial ownership of the Trust. The Trust does not generate any income and transfers bitcoin to pay for the Sponsor
Fee, and to pay for extraordinary, non-recurring expenses not assumed by the Sponsor. Therefore, the amount of bitcoin represented by
each Share will gradually decline over time. This is also true with respect to Shares that are issued in exchange for additional deposits
of bitcoin or cash used to acquire bitcoin over time, as the amount of bitcoin required to create Shares proportionally reflects the
amount of bitcoin represented by the Shares outstanding at the time of such Basket being created. Assuming a constant bitcoin price,
the trading price of the Shares is expected to gradually decline relative to the price of bitcoin as the amount of bitcoin represented
by the Shares gradually declines.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Investors should be aware
that the gradual decline in the amount of bitcoin represented by the Shares will occur regardless of whether the trading price of the
Shares rises or falls in response to changes in the price of bitcoin.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Extraordinary
expenses resulting from unanticipated events may become payable by the Trust, adversely affecting an investment in the Shares.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In consideration for the
Sponsor Fee, the Sponsor has contractually assumed certain operational and periodic expenses of the Trust. See &ldquo;Business of the
Trust&mdash;Trust Expenses.&rdquo; Extraordinary, non-recurring expenses that are not assumed by the Sponsor are borne by the Trust and
paid through the sale of the Trust&rsquo;s bitcoin. Any incurring of extraordinary expenses by the Trust could adversely affect an investment
in the Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The value of
the Shares will be adversely affected if the Trust is required to indemnify the Trustee, the Administrator, the Transfer Agent, the Bitcoin
Custodian, Prime Execution Agent or the Cash Custodian.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Under the Trust Agreement
and the Trust&rsquo;s service provider agreements, each of the Trustee, Administrator, Transfer Agent, Bitcoin Custodian, Prime Execution
Agent, Cash Custodian and Sponsor has a right to be indemnified by the Trust for any liability or expense it incurs, subject to certain
exceptions. Therefore, the Trustee, Administrator, Transfer Agent, Bitcoin Custodian, Prime Execution Agent, Cash Custodian or Sponsor
may require that the assets of the Trust be sold in order to cover losses or liability suffered by it. Any sale of that kind would reduce
the net assets of the Trust and the NAV.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>WHFIT reporting
risks</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In general, the widely held
fixed investment trust (&ldquo;WHFIT&rdquo;) regulations require asset-by-asset reporting. This can result in large and complex information
statements to Shareholders. To qualify for certain simplified reporting rules under the WHFIT regulations, the Trust intends to manage
its annual expenses and sales proceeds (other than proceeds from pro rata sales to fund redemptions) to no more than five percent of
the net asset value of the Trust. However, the Trust is not required to meet this limitation. If the Trust were to fail the five percent
test, the general asset-by-asset rules would apply, and the information statements given to Shareholders would be complex.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In the final year of the
Trust, it would not be unusual for expenses and sales proceeds and to exceed five percent of the Trust&rsquo;s net asset value. The WHFIT
regulations provide a special exception to the five percent test in the final year of the Trust. To meet this exception, Shareholders
receiving a distribution in kind on the termination of the Trust would be required to be treated as exchanging their Shares for cash.
The Trust currently has no scheduled termination date. If a termination date is established and in-kind redemptions are then permitted,
the Trust will stop in-kind redemptions at least 30 days prior to the scheduled termination in order to qualify for the final year exception.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Regulatory Risk</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Regulatory Risk.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">As bitcoin and digital assets
have grown in both popularity and market size, the U.S. Congress and a number of U.S. federal and state agencies have been examining
the operations of digital asset networks, digital asset users and the digital asset spot market. Many of these state and federal agencies
have brought enforcement actions and issued advisories and rules relating to digital asset markets. The SEC has recently charged certain
large U.S. digital asset trading platforms of supporting trading and settlement of securities in violation of the U.S. federal securities
laws. Specifically, the SEC has alleged that these exchanges are operating as unregistered securities exchanges, brokers and clearing
agencies. For example, on June 5, 2023, the SEC filed lawsuits against cryptocurrency exchanges Coinbase and Binance alleging, among
other things, their operation of an unlicensed securities exchange. Although the SEC has not alleged that bitcoin is a security, the
outcome of these enforcement actions and others may result in the substantial restructuring of the digital asset market in the United
States. Moreover, until these actions are resolved, the structure of the digital asset market in the United States will remain subject
to substantial regulatory risk, which may impact the demand for digital assets and the continued availability of existing exchanges and
offerings. The U.S. Congress is also actively preparing new legislation to address certain market structure issues relating to digital
assets and stablecoins. The outcome of this legislation is unknown. Both the outcome of the pending SEC enforcement actions and federal
legislation are highly uncertain and may alter, perhaps to a materially adverse extent, the nature of an investment in the Shares and/or
the ability of the Trust to continue to operate.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Although neither the SEC
nor the CFTC has exerted direct authority over bitcoin or bitcoin spot trading activity, the SEC and CFTC have broad authority over the
regulation of issuances of securities (including digital asset securities) and commodity interests (including derivative instruments
utilizing or referencing digital assets). The SEC and CFTC&rsquo;s engagement with the digital asset industry has had a material impact
on the development of digital asset markets, including initial coin offerings, margin trading, regulated and unregulated derivatives
markets, and decentralized finance markets. For example, the SEC has issued guidance as to the application of the securities laws to
digital assets and initiated enforcement actions against certain digital asset issuers and offerings on the basis that such digital assets
and offerings are securities under U.S. securities laws. In these actions, the SEC reasoned that the unregistered offer and sale of digital
assets can, in certain circumstances, including ICOs, be considered an illegal public offering of securities. Similarly, the CFTC, together
with the Department of Justice, has initiated enforcement actions against digital asset trading platforms relating to violations of the
CEA, on the basis that such platforms engaged in illegal, off-exchange retail commodity transactions in digital assets and digital asset
derivative transactions. Further enforcement actions against participants in the digital asset industry could have negative impacts the
price of digital assets, including bitcoin.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In August 2021, the previous
chair of the SEC stated that he believed investors using digital asset trading platforms are not adequately protected, and that activities
on the platforms can implicate the securities laws, commodities laws and banking laws, raising a number of issues related to protecting
investors and consumers, guarding against illicit activity, and ensuring financial stability. It is not possible to predict whether the
U.S. Congress will grant additional authorities to the SEC or other regulators, what the nature of such additional authorities might
be, how they might impact the ability of digital assets markets to function or how any new regulations that may flow from such authorities
might impact the value of digital assets generally and bitcoin held by the Trust specifically.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">On January 21, 2025, the
SEC&rsquo;s acting Chairman Mark T. Uyeda announced the SEC Crypto Task Force. The task force has an objective of developing a comprehensive
and clear regulatory framework for crypto assets. Following the task force announcement, on January 23, 2025, President Trump executed
the Strengthening American Leadership in Digital Financial Technology Executive Order. It is currently unknown how the actions or recommendations
of the task force and this Executive Order or future governmental actions may impact the status of bitcoin or any other digital asset
as a &ldquo;security&rdquo; or how bitcoin or the Trust would be treated under any new or revised regulatory framework.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In addition to the SEC&rsquo;s
actions targeting digital assets and trading platforms directly, the SEC has also targeted regulated investments that provide exposure
to digital assets indirectly. For example, in a recent letter regarding the SEC&rsquo;s review of proposed rule changes to list and trade
shares of certain bitcoin-related investment vehicles on public markets, the SEC staff stated that it has significant investor protection
concerns regarding the markets for digital assets, including the potential for market manipulation and fraud. In March 2018, it was reported
that the SEC was examining as many as 100 investment funds with strategies focused on digital assets. The reported focus of the examinations
is on the accuracy of risk disclosures to investors in these funds, digital asset pricing practices, and compliance with rules meant
to prevent the theft of investor funds, as well as on information gathering so that the SEC can better understand new technologies and
investment products. It has further been reported that some of these funds have received subpoenas from the SEC&rsquo;s Enforcement Division.
Additionally, the SEC&rsquo;s Division of Examinations (then the Office of Compliance Inspections and Examinations (&ldquo;OCIE&rdquo;))
stated that digital assets remained an examination priority for 2024. In particular, the Division of Examinations stated it intended
to focus its examinations on the offer, sale, recommendation of, advice regarding, trading in, and other activities in crypto assets
or related products.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">OFAC has added digital currency
addresses to the list of Specially Designated Nationals whose assets are blocked, and with whom U.S. persons are generally prohibited
from dealing. Such actions by OFAC, or by similar organizations in other jurisdictions, may introduce uncertainty in the market as to
whether bitcoin that has been associated with such addresses in the past can be easily sold. This &ldquo;tainted&rdquo; bitcoin may trade
at a substantial discount to untainted bitcoin. Reduced fungibility in the bitcoin markets may reduce the liquidity of bitcoin and therefore
adversely affect its price.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In December 2020, FinCEN,
a bureau within the U.S. Treasury Department, proposed a rule that would require financial institutions to submit reports, keep records,
and verify the identity of customers for certain transactions to or from so-called &ldquo;unhosted&rdquo; wallets, also commonly referred
to as self-hosted wallets. In May 2021, the U.S. Department of Treasury proposed new rules potentially requiring businesses to record
transactions in digital assets that exceed $10,000 in value. It remains unclear if these proposed rules will ultimately be adopted.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">President Trump&rsquo;s January
23, 2025 Executive Order, titled &ldquo;Strengthening American Leadership in Digital Financial Technology, aimed to reorient the federal
governments approach to digital assets. The Executive Order emphasized the importance of the digital asset industry in innovation and
economic development, and outlined policies to support the growth and use of digital assets, blockchain technology and related technologies.
President Trump&rsquo;s order also revoked former President Biden&rsquo;s March 9, 2022 Executive Order, titled, &ldquo;Responsible Development
of Digital Assets&rdquo; and the U.S. Department of Treasury&rsquo;s July 7, 2022 &ldquo;Framework for International Engagement of Digital
Assets&rdquo; and all policies, directives and guidance issued pursuant to those items produced by the previous administration. The consequences
of federal regulation of digital assets and digital asset activities could have a material adverse effect on the Trust and the Shares.
If the Sponsor determines not to comply with such regulatory and registration requirements, it may seek to cease certain or all of the
Trust&rsquo;s operations. Any such action could have a material adverse effect on our business, financial condition and results of operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Under regulations from the
New York State Department of Financial Services (&ldquo;NYDFS&rdquo;), businesses involved in certain digital asset business activity
involving New York or a New York resident must apply for a license, commonly known as a BitLicense, from the NYDFS and must comply with
anti-money laundering, cyber security, consumer protection, and financial and reporting requirements, among others. As an alternative
to a BitLicense, a firm can apply for a charter to become a limited purpose trust company under New York law qualified to engage in digital
asset business activity. Other states have considered or approved digital asset business activity statutes or rules, passing, for example,
regulations or guidance indicating that certain digital asset business activities constitute money transmission requiring licensure.
The regulation of digital asset activity under state money transmission laws varies substantially. Differences between state regimes
increase the complexity and compliance burden of operating digital asset businesses across the U.S., which may affect consumer adoption
of bitcoin and its price. In an attempt to address these issues, the Uniform Law Commission passed a model law in July 2017, the Uniform
Regulation of Virtual Currency Businesses Act, which has many similarities to the BitLicense and features a multistate reciprocity licensure
feature, wherein a business licensed in one state could apply for accelerated licensure procedures in other states. As of May 2025, only
California, Louisiana and Rhode Island have adopted the model law, while Iowa has introduced the model law. It is still unclear; however,
how many states will ultimately adopt some or all of the model legislation.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">On February 15, 2022, Representative
Warren Davidson introduced the &ldquo;Keep Your Coins Act,&rdquo; which is intended &ldquo;[t]o prohibit Federal agencies from restricting
the use of convertible virtual currency by a person to purchase goods or services for the person&rsquo;s own use, and for other purposes.&rdquo;
That same day, Congressman Josh Gottheimer also announced a discussion draft of the &ldquo;Stablecoin Innovation and Protection Act,&rdquo;
which is intended to define &ldquo;qualified stablecoins&rdquo; to differentiate them from &ldquo;more volatile cryptocurrencies.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">On March 17, 2022, Senators
Elizabeth Warren, Jack Reed, Mark Warner, and Jon Tester introduced the Digital Asset Sanctions Compliance Enhancement Act in an attempt
to ensure blacklisted Russian individuals and businesses do not use cryptocurrency to evade economic sanctions. The bill does not come
without controversy, however, as it &ldquo;would place sweeping restrictions on persons who build, operate and use cryptocurrency networks
even if they have no knowledge or intent to help anyone evade sanctions,&rdquo; according to policy group Coin Center.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">On March 28, 2022, Representative
Stephen Lynch, along with co-sponsors Jes&uacute;s G. Garc&iacute;a, Rashida Tlaib, Ayanna Pressley, and Alma Adams, introduced H.R.
7231, the Electronic Currency and Secure Hardware Act (ECASH Act), which would direct the secretary of the U.S. Department of the Treasury
(not the Federal Reserve) to develop and issue a digital analogue to the U.S. dollar, or &ldquo;e-cash,&rdquo; which is intended to &ldquo;replicate
and preserve the privacy, anonymity-respecting, and minimal transactional data-generating properties of physical currency instruments
such as coins and notes to the greatest extent technically and practically possible,&rdquo; all without requiring a bank account. E-cash
would be legal tender, payable to the bearer and functionally identical to physical U.S. coins and notes, &ldquo;capable of instantaneous,
final, direct, peer-to-peer, offline transactions using secured hardware devices that do not involve or require subsequent or final settlement
on or via a common or distributed ledger, or any other additional approval or validation by the United States Government or any other
third-party payments processing intermediary,&rdquo; including fully anonymous transactions, and &ldquo;interoperable with all existing
financial institutions and payment systems and generally accepted payments standards and network protocols, as well as other public payments
programs.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">On April 6, 2022, Senator
Pat Toomey released a draft of his Stablecoin Transparency of Reserves and Uniform Safe Transactions Act, or Stablecoin TRUST Act. The
draft bill contemplates a &ldquo;payment stablecoin,&rdquo; which is convertible directly to fiat currency by the issuer. Only an insured
depositary institution, a money transmitting business (authorized by its respective state authority) or a new &ldquo;national limited
payment stablecoin issuer&rdquo; would be eligible to issue payment stablecoins. Additionally, payment stablecoins would be exempt from
the federal securities requirements, including the 1933 Act, the 1934 Act, and the Investment Company Act of 1940 (the &ldquo;1940 Act&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">On June 7, 2022, Senators
Kirsten Gillibrand and Cynthia Lummis introduced the &ldquo;Responsible Financial Innovation Act,&rdquo; which was drafted to &ldquo;create
a complete regulatory framework for digital assets that encourages responsible financial innovation, flexibility, transparency and robust
consumer protections while integrating digital assets into existing law.&rdquo; Importantly, the legislation would assign regulatory
authority over digital asset spot markets to the CFTC and codify that digital assets that meet the definition of a commodity, such as
bitcoin, would be regulated by the CFTC.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In 2023, Congress continued
to consider several stand-alone digital asset bills, including a formal process to determine when digital assets will be treated as either
securities to be regulated by the SEC or commodities under the purview of the CFTC, what type of federal/state regulatory regime will
exist for payment stablecoins and the how the Bank Secrecy Act (&ldquo;BSA&rdquo;) will apply to cryptocurrency providers. The Financial
Innovation and Technology for the 21st Century Act (&ldquo;FIT for the 21st Century Act&rdquo;) advanced through the House and was ultimately
passed on May 22, 2024 in a vote along bipartisan lines. The FIT for the 21st Century Act would require the SEC and the CFTC to jointly
issue rules or guidance that would outline their process in delisting a digital asset that they deem inconsistent with the CEA, federal
securities laws and the FIT for the 21st Century Act. The bill, in part, would also provide a certification process for blockchains to
be recognized as decentralized, which would allow the SEC to challenge claims made by token issuers about meeting the outlined standards.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Legislative efforts have
also focused on setting criteria for stablecoin issuers and what rules will govern redeemability and collateral. The Clarity for Payment
Stablecoins Act of 2023, as introduced by House Finance Committee Chair Patrick McHenry (the &ldquo;McHenry bill&rdquo;), would make
it unlawful for any entity other than a permitted payment stablecoin issuer to issue a payment stablecoin. The McHenry bill would establish
bank-like regulation and supervision for federal qualified nonbank payment stablecoin issuers. These requirements include capital, liquidity
and risk management requirements, application of the Bank Secrecy Act and the Gramm-Leach-Bliley Act&rsquo;s customer privacy requirements,
certain activities limits, and broad supervision and enforcement authority. The McHenry bill would grant state regulators primary supervision,
examination and enforcement authority over state stablecoin issuers, leaving the Federal Reserve Board with secondary, backup enforcement
authority for &ldquo;exigent&rdquo; circumstances. The McHenry bill would also amend the Investment Advisers Act of 1940, the 1940 Act,
the 1933 Act, the 1934 Act and the Securities Investor Protection Act of 1970 to specify that payment stablecoins are not securities
for purposes of those federal securities laws.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Several other bills have
advanced through Congress to curb crypto as a payment gateway for illicit activity and money laundering. The &ldquo;Blockchain Regulatory
Clarity Act&rdquo; would provide clarity to the regulatory classification of digital assets, providing market certainty for innovators
and clear jurisdictional boundaries for regulators by affirming that blockchain developers and other related service providers that do
not custody customer funds are not money transmitters. The &ldquo;Financial Technology Protection Act,&rdquo; another bipartisan measure,
would set up an independent Financial Technology Working Group to combat terrorism and illicit financing in cryptocurrency. The &ldquo;Blockchain
Regulatory Certainty Act&rdquo; aims to protect certain blockchain platforms from being designated as money-services businesses. Both
acts advanced through the House with bipartisan support.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In a similar effort to prevent
money laundering and stop crypto-facilitated crime and sanctions violations, bipartisan legislation was introduced to require DeFi services
to meet the same anti-money laundering and economic sanctions compliance obligations as other financial companies. DeFi generally refers
to applications that facilitate peer-to-peer financial transactions that are recorded on blockchains. By design, DeFi provides anonymity,
which can allow malicious and criminal actors to evade traditional financial regulatory tools. Noting that transparency and sensible
rules are vital for protecting the financial system from crime, the &ldquo;Crypto-Asset National Security Enhancement and Enforcement
(CANSEE) Act&rdquo; was introduced. The CANSEE Act would end special treatment for DeFi by applying the same national security laws that
apply to banks and securities brokers, casinos and pawn shops, and other cryptocurrency companies like centralized trading platforms.
DeFi services would be forced to meet basic obligations, most notably to maintain anti-money laundering programs, conduct due diligence
on their customers, and report suspicious transactions to FinCEN.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-style: normal; font-weight: normal">The
continued evolution of federal, state and foreign government regulators and policymakers will continue to impact the viability and success
of digital asset markets, broadly, and bitcoin, specifically.</FONT></P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Future and current
regulations by a U.S. or foreign government or quasi-governmental agency could have an adverse effect on an investment in the Trust.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The regulation of bitcoin
and related products and services continues to evolve, may take many different forms and will, therefore, impact bitcoin and its usage
in a variety of manners. The inconsistent, unpredictable, and sometimes conflicting regulatory landscape may make it more difficult for
bitcoin businesses to provide services, which may impede the growth of the bitcoin economy and have an adverse effect on consumer adoption
of bitcoin. There is a possibility of future regulatory change altering, perhaps to a material extent, the nature of an investment in
the Trust or the ability of the Trust to continue to operate. Additionally, changes to current regulatory determinations of bitcoin&rsquo;s
status as not being a security, changes to regulations surrounding bitcoin futures or related products, or actions by a United States
or foreign government or quasi-governmental agencies exerting regulatory authority over bitcoin, the Bitcoin network, bitcoin trading,
or related activities impacting other parts of the digital asset market, may adversely impact bitcoin and therefore may have an adverse
effect on the value of your investment in the Trust.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Bitcoin and other digital
assets currently face an uncertain regulatory landscape in many foreign jurisdictions such as the European Union, China, the United Kingdom,
Australia, Japan, Russia, Israel, Poland, India, Hong Kong, Canada and Singapore. Cybersecurity attacks by state actors, particularly
for the purpose of evading international economic sanctions, are likely to attract additional regulatory scrutiny to the acquisition,
ownership, sale and use of digital assets, including bitcoin. The effect of any existing regulation or future regulatory change on the
Trust or bitcoin is impossible to predict, but such change could be substantial and adverse to the Trust and the value of the Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Various foreign jurisdictions
have adopted, and may continue to adopt in the near future, laws, regulations or directives that affect bitcoin, particularly with respect
to bitcoin spot markets, trading venues and service providers that fall within such jurisdictions&rsquo; regulatory scope. Such laws,
regulations or directives may conflict with those of the United States and may negatively impact the acceptance of bitcoin by users,
merchants and service providers outside the United States and may therefore impede the growth or sustainability of the bitcoin economy
in these jurisdictions as well as in the United States and elsewhere, or otherwise negatively affect the value of bitcoin, and, in turn,
the value of the Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Shareholders
do not have the protections associated with ownership of shares in an investment company registered under the 1940 Act or commodity pools
under the Commodity Exchange Act.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Investment Company Act
of 1940 (the &ldquo;1940 Act&rdquo;) establishes a comprehensive federal regulatory framework for investment companies. Regulation of
investment companies under the 1940 Act is designed to, among other things: prevent insiders from managing the companies to their benefit
and to the detriment of public investors; prevent the inequitable or discriminate issuance of investment company securities and prevent
the use of unsound or misleading methods of computing asset values. For example, registered investment companies subject to the 1940
Act must have a board of directors, a certain minimum percentage of whom must be independent (generally, at least a majority). Further,
after an initial two-year period, such registered investment companies&rsquo; advisory and sub-advisory contracts must be annually reapproved
by a majority of (1) the entire board of directors and (2) the independent directors. Additionally, such registered investment companies
are subject to prohibitions and restrictions on transactions with their affiliates and required to maintain fund assets with special
types of custodians (generally, banks or broker-dealers). Moreover, such registered investment companies are subject to significant limits
on the use of leverage, as well as limits on the form of capital structure and the types of securities a registered fund can issue.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trust is not registered
as an investment company under the 1940 Act, and the Sponsor believes that the Trust is not permitted or required to register under such
act. Consequently, Shareholders do not have the regulatory protections provided to investors in investment companies.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trust will not hold or
trade in commodity interests regulated by the Commodity Exchange Act (&ldquo;CEA&rdquo;), as administered by the CFTC. Furthermore, the
Sponsor believes that the Trust is not a commodity pool for purposes of the CEA, and that neither the Sponsor nor the Trustee is subject
to regulation by the CFTC as a commodity pool operator or a commodity trading advisor in connection with the operation of the Trust.
Consequently, Shareholders will not have the regulatory protections provided to investors in CEA-regulated instruments or commodity pools.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Trading on digital
asset trading platforms outside the U.S. is not subject to U.S. regulation and may be less reliable than U.S. trading platforms.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">To the extent any of the
Trust&rsquo;s trading is conducted on digital asset trading platforms outside the U.S., trading on such trading platforms is not regulated
by any U.S. governmental agency and may involve certain risks not applicable to trading on U.S. trading platforms. Certain foreign markets
may be more susceptible to disruption than U.S. trading platforms. These factors could adversely affect the performance of the Trust.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>If regulatory changes
or interpretations of an Authorized Participant&rsquo;s, the Trust&rsquo;s or the Sponsor&rsquo;s activities require the regulation of
an Authorized Participant, the Trust or the Sponsor as a money services business under the regulations promulgated by FinCEN under the
authority of the U.S. Bank Secrecy Act or as a money transmitter or digital asset business under state regimes for the licensing of such
businesses, an Authorized Participant, the Trust or the Sponsor may be required to register and comply with such regulations, which could
result in extraordinary, recurring and/or nonrecurring expenses to the Authorized Participant, Trust or Sponsor or increased commissions
for the Authorized Participant&rsquo;s clients, thereby reducing the liquidity of the Shares.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">To the extent that the activities
of any Authorized Participant, the Trust or the Sponsor cause it to be deemed a &ldquo;money services business&rdquo; under the regulations
promulgated by FinCEN under the authority of the U.S. Bank Secrecy Act, such Authorized Participant, the Trust or the Sponsor may be
required to comply with FinCEN regulations, including those that would mandate the implementation of an anti-money laundering program,
the submission of certain reports to FinCEN and the maintenance of certain records. Similarly, the activities of an Authorized Participant,
the Trust or the Sponsor may require it to be licensed as a money transmitter or as a digital asset business, such as under NYDFS&rsquo;
BitLicense regulation.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Such additional regulatory
obligations may cause the Authorized Participant, the Trust or the Sponsor to incur extraordinary expenses. If the Authorized Participant,
the Trust or the Sponsor decide to seek the required licenses, there is no guarantee that they will receive them in a timely manner.
In addition, to the extent an Authorized Participant, the Trust, or the Sponsor is found to have operated without appropriate state or
federal licenses, it may be subject to investigation, administrative or court proceedings, and civil or criminal monetary fines and penalties,
all of which could harm the reputation of the Authorized Participant, the Trust or the Sponsor and affect the value of the Shares. Furthermore,
an Authorized Participant, the Trust, or the Sponsor may not be able to acquire necessary state licenses or be capable of complying with
certain federal or state regulatory obligations applicable to money services businesses, money transmitters, and businesses engaged in
digital asset activity in a timely manner. The Authorized Participant may also instead decide to terminate its role as Authorized Participant
of the Trust, or the Sponsor may decide to terminate the Trust. Termination by the Authorized Participant may decrease the liquidity
of the Shares, which may adversely affect the value of the Shares, and any termination of the Trust in response to the changed regulatory
circumstances may be at a time that is disadvantageous to the Shareholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>


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<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">It may be illegal
now, or in the future, to acquire, own, hold, sell or use bitcoin in one or more countries, and ownership of, holding or trading in the
Shares may also be considered illegal and subject to sanction.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Although currently bitcoin
is not regulated or is lightly regulated in most countries, including the United States, one or more countries such as China, India or
Russia may take regulatory actions in the future that severely restricts the right to acquire, own, hold, sell or use bitcoin or to exchange
bitcoin for fiat currency. Such an action may also result in the restriction of ownership, holding or trading in the Shares. Such a restriction
could result in the termination and liquidation of the Trust at a time that is disadvantageous to Shareholders, or may adversely affect
an investment in the Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Tax Risk</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The ongoing activities
of the Trust may generate tax liabilities for Shareholders.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-style: normal; font-weight: normal">It
is expected that each Shareholder will include in the computation of their taxable income their proportionate share of the taxable income
and expenses of the Trust and amounts realized in connection with the use of bitcoin or the sale of bitcoin to pay Trust expenses or
facilitate redemption transactions. The Trust does not anticipate making distributions to Shareholders, so any tax liability that a Shareholder
incurs as a result of holding Shares will need to be satisfied from some other source of funds. For some purposes, redemptions will count
as distributions, so Shareholders receiving redemption proceeds after a sale to fund a redemption in cash may be allocated a larger portion
of income or gain than those that do not. Shareholders receiving a redemption in-kind will not generally be taxed on the distribution
in-kind. Sales of bitcoin to fund Cash Redemptions are expected to result in gains and losses, with such gains and losses expected to
be treated as incurred by the Shareholder that is being redeemed. These gains or losses generally would equal the difference between
the amount realized from the sale of the bitcoin and the Shareholder&rsquo;s tax basis for the portion of the Shareholder&rsquo;s pro
rata share of the bitcoin held in the Trust that is sold to fund the redemption, as determined in the manner described above. A redemption
of some or all of a Shareholder&rsquo;s Shares in exchange for the cash received from such sale is not expected to be treated as a separate
taxable event for the Shareholder. Shareholders receiving a redemption in-kind will not generally be taxable on the distribution in-kind.
If a Shareholders sells Shares in order to raise funds to satisfy such a tax liability, the sale itself may generate additional taxable
gain or loss.</FONT></P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The IRS may disagree
with or seek to challenge the Trust&rsquo;s treatment as a grantor trust.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">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. 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&rsquo;s assets and a pro rata portion of the Trust&rsquo;s
income, gain, losses and deductions will &ldquo;flow through&rdquo; to each beneficial owner of Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Shareholders
could incur a tax liability without an associated distribution of the Trust.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In the normal course of business,
it is possible that the Trust could incur a taxable gain in connection with the sale of bitcoin (including deemed sales of bitcoin as
a result of the Trust using bitcoin to pay its expenses, including the Sponsor Fee) that is otherwise not associated with a distribution
to Shareholders, or in connection with the receipt cash from the Sponsor in connection with the Sponsor&rsquo;s sale of Incidental Right(s)
and/or IR Asset(s). Shareholders may be subject to tax due to the grantor trust status of the Trust even though there is not a corresponding
distribution from the Trust.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The tax treatment
of bitcoin and transactions involving bitcoin for U.S. federal income tax purposes may change.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The tax treatment of digital
assets is still evolving and subject to change. Current IRS guidance indicates that bitcoin should be treated as property for federal
income tax purposes and that transactions involving the exchange of bitcoin in return for goods and services should be treated as barter
exchanges. Such guidance allows transactions in bitcoin to qualify for beneficial capital gains treatment. However, because bitcoin is
a new technological innovation, the U.S. federal income tax treatment of an investment in bitcoin or in transactions relating to investments
in bitcoin, including without limitation the tax treatment of a fork or airdrop, may evolve and change from those described in this prospectus,
possibly with retroactive effect. For example, current guidance indicates that digital asset currencies are neither collectibles nor
currencies for the purposes of determining the applicable tax rate; however, the IRS has statutory authority to change its position.
If the IRS were to determine that digital assets were collectibles or a currency, the tax rate incurred by investors would be higher.
Additional disclosure requirements may also apply to an investment in digital assets. Investors should consult their individual tax advisors
to determine if such disclosure requirements apply to them.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Any change in the U.S. federal
income tax treatment of bitcoin may have a negative effect on prices of bitcoin and may adversely affect the value of the Shares. Whether
any additional guidance will adversely affect the U.S. federal income tax treatment of an investment in bitcoin or in transactions relating
to investments in bitcoin is unknown. There can be no assurance that the IRS will not alter its position with respect to digital assets
in the future or that a court would uphold the treatment set forth in the Notice and the Ruling &amp; FAQs.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The tax treatment
of bitcoin and transactions involving bitcoin for state and local tax purposes is not settled.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Because bitcoin is a new
technological innovation, the tax treatment of bitcoin for state and local tax purposes, including without limitation state and local
income and sales and use taxes, is not settled. It is uncertain what guidance, if any, on the treatment of bitcoin for state and local
tax purposes may be issued in the future. A state or local government authority&rsquo;s treatment of bitcoin may have negative consequences,
including the imposition of a greater tax burden on investors in bitcoin or the imposition of a greater cost on the acquisition and disposition
of bitcoin generally. Any such treatment may have a negative effect on prices of bitcoin and may adversely affect the value of the Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">A &ldquo;fork&rdquo;
of the Bitcoin blockchain or an airdrop could result in Shareholders incurring a tax liability.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">If a fork occurs in the Bitcoin
blockchain, the Trust Agreement requires that the Sponsor analyze the transaction according to several criteria and promptly determine
which digital asset network is generally accepted as the Bitcoin network and should therefore be considered the appropriate network for
the Trust&rsquo;s purposes. The Sponsor will base its determination on a variety of then relevant factors, including, but not limited
to, the Sponsor&rsquo;s beliefs regarding expectations of the core developers of Bitcoin, users, services, businesses, miners and other
constituencies, as well as the actual continued acceptance of, mining power on, and community engagement with, the Bitcoin network. The
outcome of such determination shall determine which asset is &ldquo;bitcoin&rdquo; and which is the Forked Asset, an IR Asset. Pursuant
to the Trust Agreement, the Trust has explicitly disclaimed all Incidental Rights and IR Assets, including Forked Assets. Such assets
are not considered assets of the Trust at any point in time. Once it has been determined by the Sponsor which asset is bitcoin and which
is the Forked Asset, the Sponsor will, as soon as practicable, and, if possible, immediately, distribute the Forked Asset to the Sponsor.
Once acquired, the Sponsor may take any lawful action necessary or desirable in connection with its acquisition of such asset. In the
event that the Sponsor decides to sell the Forked Asset, it will seek to do so for cash. This may be a sale of the Forked Asset directly
in exchange for cash, or in exchange for another digital asset which may subsequently be exchanged for cash. The Sponsor would then contribute
that cash back to the Trust, which in turn would distribute the cash to DTC to be distributed to Shareholders in proportion to the number
of Shares owned. The receipt of cash in connection with this distribution may cause Shareholders to incur a U.S. federal, state, local,
or foreign tax liability. In addition, the IRS may not accept the Trust&rsquo;s position that disclaimed Incidental Rights or IR Assets
do not represent a taxable incident. Any tax liability could adversely impact an investment in the Shares and may require Shareholders
to prepare and file tax returns. Any tax liability could adversely impact an investment in the Shares and may require Shareholders to
prepare and file tax returns.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Under the IRS guidance on
digital assets, hard forks, airdrops and similar occurrences with respect to digital assets will under certain circumstances be treated
as taxable events giving rise to ordinary income. In the absence of guidance to the contrary, it is possible that any such income recognized
by a U.S. tax-exempt Shareholder would constitute &ldquo;unrelated business taxable income&rdquo; (&ldquo;UBTI&rdquo;). A tax-exempt
Shareholder should consult its tax advisor regarding whether such Shareholder may recognize UBTI as a consequence of an investment in
Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Non-U.S. Holders
may be subject to U.S. federal withholding tax on income derived from forks, airdrops and similar occurrences.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">IRS guidance on digital assets
does not address whether income recognized by a non-U.S. person as a result of a fork, airdrop or similar occurrence could be subject
to the 30% withholding tax imposed on U.S.-source &ldquo;fixed or determinable annual or periodical&rdquo; income. Non-U.S. Shareholders
should assume that, in the absence of guidance, a withholding agent (including the Sponsor) is likely to withhold 30% of any such income
recognized by a non-U.S. Shareholder in respect of its Shares, including by deducting such withheld amounts from proceeds that such non-U.S.
Shareholder would otherwise be entitled to receive in connection with a distribution of cash in connection with the Sponsor&rsquo;s sale
of an IR Right and/or IR Asset and contributing such cash back to the Trust.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>WHFIT reporting Risks.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In general, the widely held
fixed investment trust (&ldquo;WHFIT&rdquo;) regulations require asset-by-asset reporting. This can result in large and complex information
statements to Shareholders. To qualify for certain simplified reporting rules under the WHFIT regulations, the Trust intends to manage
its annual expenses and sales proceeds (other than proceeds from pro rata sales to fund redemptions) to no more than five percent of
the net asset value of the Trust. However, the Trust is not required to meet this limitation. If the Trust were to fail the five percent
test, the general asset-by-asset rules would apply, and the information statements given to Shareholders would be complex.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In the final year of the
Trust, it would not be unusual for expenses and sales proceeds and to exceed five percent of the Trust&rsquo;s net asset value. The WHFIT
regulations provide a special exception to the five percent test in the final year of the Trust. To meet this exception, Shareholders
receiving a distribution in kind on the termination of the Trust would be required to be treated as exchanging their Shares for cash.
The Trust currently has no scheduled termination date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Other Risks</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">There is no guarantee
that an active trading market for the Shares will be maintained. To the extent that an active trading market for Shares cannot be maintained
and the assets of the Trust do not remain at a viable size, the liquidity of the Shares may be limited or the Trust may be terminated
at the option of the Sponsor.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">There can be no assurance
that the Trust will continue to maintain an economically viable size, in which case the Sponsor may elect to terminate the Trust, which
could result in the liquidation of the Trust&rsquo;s bitcoin at a time that is disadvantageous to an investor in the Shares. If the Trust
fails to maintain sufficient scale due to competition, the Sponsor may have difficulty raising sufficient revenue to cover the costs
associated with maintaining the Trust, and such shortfalls could impact the Sponsor&rsquo;s ability to properly invest in robust ongoing
operations and controls of the Trust to minimize the risk of operating events, errors, or other forms of losses to the Shareholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In addition, the Trust may
also fail to continue to attract adequate liquidity in the secondary market due to such competition, resulting in a sub-standard number
of Authorized Participants willing to make a market in the Shares, which in turn could result in a significant premium or discount in
the Shares for extended periods and the Trust&rsquo;s failure to reflect the performance of the price of bitcoin.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trust may
be required to terminate and liquidate at a time that is disadvantageous to Shareholders.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">If the Trust is required
to terminate and liquidate, such termination and liquidation could occur at a time that is disadvantageous to Shareholders, such as when
the price of bitcoin is lower than it was at the time when Shareholders purchased their Shares. In such a case, when the Trust&rsquo;s
bitcoin is sold as part of the Trust&rsquo;s liquidation, the resulting proceeds distributed to Shareholders will be less than if the
price of bitcoin were higher at the time of sale. See &ldquo;Additional Information About the Trust&mdash;Termination of the Trust&rdquo;
for more information about the termination of the Trust, including when the termination of the Trust may be triggered by events outside
the direct control of the Sponsor, the Trustee or Shareholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Exchange
on which the Shares are listed may halt trading in the Shares, which would adversely impact an investor&rsquo;s ability to sell Shares.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Shares are listed for
trading on the Exchange under the market symbol &ldquo;BITB.&rdquo; Trading in Shares may be halted due to market conditions or, in light
of the Exchange rules and procedures, for reasons that, in the view of the Exchange, make trading in Shares inadvisable. In addition,
trading is subject to trading halts caused by extraordinary market volatility pursuant to &ldquo;circuit breaker&rdquo; rules that require
trading to be halted for a specified period based on a specified market decline. Additionally, there can be no assurance that the requirements
necessary to maintain the listing of the Shares will continue to be met or will remain unchanged.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>


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<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The liquidity
of the Shares may also be affected by the withdrawal from participation of Authorized Participants, which could adversely affect the
market price of the Shares.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In the event that one or
more Authorized Participants or market makers that have substantial interests in the Shares withdraw or &ldquo;step away&rdquo; from
participation in the creation or redemption of Shares, the liquidity of Shares will likely decrease, which could adversely affect the
market price of the Shares and result in investors incurring a loss on their investment.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The market infrastructure
of the bitcoin spot market could result in the absence of active Authorized Participants able to support the trading activity of the
Trust.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Bitcoin is extremely volatile,
and concerns exist about the stability, reliability and robustness of many digital asset trading platforms where bitcoin trade. In a
highly volatile market, or if one or more digital asset trading platforms supporting the bitcoin market faces an issue, it could be extremely
challenging for any Authorized Participants to provide continuous liquidity in the Shares. There can be no guarantee that the Sponsor
will be able to find an Authorized Participant to actively and continuously support the Trust.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Digital asset
trading platforms are not subject to same regulatory oversight as traditional equity exchanges, which could negatively impact the ability
of Authorized Participants to implement arbitrage mechanisms.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The trading for bitcoin occurs
on multiple digital asset trading platforms that have various levels and types of regulation, but are not regulated in the same manner
as traditional stock and bond exchanges. If these digital asset trading platforms do not operate smoothly or face technical, security
or regulatory issues, that could impact the ability of Authorized Participants to make markets in the Shares. In such an event, trading
in the Shares could occur at a material premium or discount against the NAV. Digital asset trading platforms may also be out of compliance
with existing regulations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Authorized
Participants serve in such capacity for several competing exchange-traded bitcoin products, which could adversely affect the market for
the Shares.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Only an Authorized Participant
may engage in creation or redemption transactions directly with the Trust. Some or all of the Trust&rsquo;s Authorized Participants are
expected to serve as authorized participants or market makers for one or more exchange-traded bitcoin products that compete with the
Trust. This may make it more difficult to engage or retain Authorized Participants for the Trust. Furthermore, because there is no obligation
on the part of the Authorized Participants to engage in creation and redemption or market making activities with respect to the Trust&rsquo;s
Shares, decisions by the Authorized Participants to not engage with the Trust or its Shares may result in a decline in the liquidity
of the Shares and the price of the Shares may fluctuate independently of the price of Trust&rsquo;s bitcoin (i.e., at a greater premium
or discount to the Trust&rsquo;s NAV).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Shareholders
that are not Authorized Participants may only purchase or sell their Shares in secondary trading markets, and the conditions associated
with trading in secondary markets may adversely affect investors&rsquo; investment in the Shares.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Only Authorized Participants
may create or redeem Baskets. All other investors that desire to purchase or sell Shares must do so through the Exchange or in other
markets, if any, in which the Shares may be traded. Shares may trade at a premium or discount to the NAV per Share.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Sponsor is
leanly staffed and relies heavily on key personnel to manage its activities.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Sponsor is leanly staffed
and relies heavily on key personnel to manage its activities. These key personnel intend to allocate their time managing the Trust in
a manner that they deem appropriate. If such key personnel were to leave or be unable to carry out their present responsibilities, it
may have an adverse effect on the management of the Sponsor.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The use of cash
creations and redemptions has drawbacks.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trust may effect some
or all of its creations and redemptions for cash, rather than in-kind. The use of Cash Creations and Cash Redemptions may cause Shares
to trade in the market at greater bid-ask spreads or greater premiums or discounts to their NAV per Share. The use of cash for redemptions
will also limit the tax efficiency of the Trust. Additionally, the Trust&rsquo;s need to purchase bitcoin in connection with Cash Creation
Orders introduces the possibility that the Trust will pay a higher price for bitcoin than the value ascribed to bitcoin by the BRRNY,
the rate used to calculate the Trust&rsquo;s NAV. This is known as &ldquo;slippage.&rdquo; While transactions in any asset are subject
to the risk of slippage, it is possible that transactions in digital assets may be more susceptible. The Trust seeks to minimize the
risk of slippage by basing the amount of cash an Authorized Participant is required to deposit to consummate a Cash Creation Order for
Baskets on the price the Trust actually paid for the bitcoin rather than on the value of bitcoin ascribed by the BRRNY. Nonetheless,
there can be no guarantee that the Trust will not be negatively affected by slippage from time to time. The Trust will also incur transaction
costs it would not otherwise have incurred if it received and distributed bitcoin in-kind and was not required to purchase and sell bitcoin
in connection with Cash Creation Orders and Cash Redemption Orders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Potential conflicts
of interest may arise among the Sponsor or its affiliates and the Trust.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trust operations will
be managed by the Sponsor. It is possible that conflicts may arise between the Sponsor, affiliates, the Trust and its Shareholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In resolving conflicts of
interest, the Sponsor is allowed to take into account the interests of other parties. Conflicts of interest may arise as a result of:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">Sponsor
                                            and its affiliates will be indemnified pursuant to the Trust Agreement;</TD>
</TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">The Sponsor&rsquo;s
                                            allocation of resources (including the time and attention of management and business development)
                                            among different clients and potential future business ventures, to each of which they may
                                            owe fiduciary duties, the determination of which is the responsibility of the Sponsor and
                                            its affiliates;</TD>
</TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">The staff
                                            of the Sponsor may also directly or indirectly serve affiliates and clients of the Sponsor;</TD>
</TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">The Trust
                                            Agreement does not prohibit the Sponsor, its respective affiliates and their respective officers
                                            and employees from engaging in other businesses or activities that might be in direct competition
                                            with the Trust;</TD>
</TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">The Sponsor
                                            and its staff may take direct positions in bitcoin or in other investments, or may advise
                                            other clients to take such positions, that may be in conflict with the investment objective
                                            of the Shares or that may be of a size that could impact the price of bitcoin;</TD>
</TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">There has
                                            been no independent due diligence conducted with respect to this offering, where applicable,
                                            and there is an absence of arm&rsquo;s-length negotiation with respect to certain terms of
                                            the Trust;</TD>
</TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">The Sponsor
                                            decides whether to obtain third-party services for the Trust.</TD>
</TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">By investing in the Shares,
investors agree and consent to the provisions set forth in the Trust Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">For a further discussion
of the conflicts of interest among the Sponsor, Bitcoin Custodian, Cash Custodian, Trust and others, see &ldquo;Conflicts of Interest.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trust is
new, and if it is not profitable, the Trust may terminate and liquidate at a time that is disadvantageous to Shareholders.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trust is new. If the
Trust does not attract sufficient assets to remain open, then the Trust could be terminated and liquidated at the direction of the Sponsor.
Termination and liquidation of the Trust could occur at a time that is disadvantageous to Shareholders. When the Trust&rsquo;s assets
are sold as part of the Trust&rsquo;s liquidation, the resulting proceeds distributed to Shareholders may be less than those that may
be realized in a sale outside of a liquidation context. Investors may be adversely affected by redemption or creation orders that are
subject to postponement, suspension or rejection under certain circumstances.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Sponsor may
discontinue its services, which may be detrimental to the Trust.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Sponsor may be unwilling
or unable to continue to serve as sponsor to the Trust for any length of time. If the Sponsor discontinues its activities and is unable
to be replaced, the Trust may have to terminate and liquidate the bitcoin held by the Trust. A substitute sponsor&rsquo;s appointment
will not guarantee the Trust&rsquo;s continued operation even if a substitute sponsor is found, the appointment of a substitute sponsor
may not necessarily be beneficial to the Trust or an investment in the Shares and the Trust may terminate.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>


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<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Any of the service
providers could resign or be removed by the Trust, which could trigger early termination of the Trust.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Any service provider may
resign or be removed under its respective governing agreement. The Trust may dissolve in accordance with the terms of the Trust Agreement
if any service provider resigns or is removed and is unable to be replaced.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The lack of independent
advisers representing investors in the Trust may cause Shareholders to be adversely affected.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Counsel, accountants and
other advisers have been consulted by the Sponsor regarding the formation and operation of the Trust. Potential investors should consult
their own legal, tax and financial advisers regarding the desirability of an investment in the Shares. No counsel has been appointed
to represent an investor in connection with the offering of the Shares. Failure to consult with their own legal, tax and financial advisers
may lead to Shareholders making an undesirable investment decision with respect to investment in the Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">No separate counsel;
no responsibility or independent verification.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Chapman and Cutler LLP represents
the Sponsor. The Trust does not have counsel separate and independent from counsel to the Sponsor. Chapman and Cutler LLP does not represent
Shareholders, and no independent counsel has been retained to represent Shareholders. Chapman and Cutler LLP is not responsible for any
acts or omissions of the Sponsor, the Administrator, the Trustee, the Bitcoin Custodian, the Cash Custodian, the Prime Execution Agent,
a Bitcoin Trading Counterparty, the Transfer Agent or the Trust (including their compliance with any guidelines, policies, restrictions
or applicable law, or the selection, suitability or advisability of their investment activities) or any administrator, accountant, custodian
or other service provider to the Sponsor, Trustee or the Trust. This Prospectus was prepared based on information provided by the Sponsor,
the Administrator, the Bitcoin Custodian, the Cash Custodian, the Prime Execution Agent, the Transfer Agent, and the Trustee, in good
faith and based on reasonable best efforts to ensure the information is accurate as of the date of this Prospectus, and Chapman and Cutler
LLP has not independently verified such information.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Shareholders
do not have the rights enjoyed by investors in certain other vehicles and may be adversely affected by a lack of statutory rights and
by limited voting and distribution rights.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Shares have limited voting
and distribution rights under the Trust Agreement. For example, except as required under applicable federal law or under the rules or
regulations of an Exchange, Shareholders do not have any voting rights, take no part in the management or control, and have no voice
in, the Trust&rsquo;s operations or business. The Trust may enact splits or reverse splits without Shareholder approval and the Trust
is not required to pay regular distributions. The Trust will not have regular Shareholder meetings. The right to authorize actions, appoint
service providers or take other actions will not be held by Shareholders, as may be taken by shareholders of other trusts.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">An investment
in the Trust may be adversely affected by competition from other investment vehicles focused on bitcoin or other digital assets.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trust will compete with
direct investments in bitcoin, other digital assets and other potential financial vehicles, possibly including securities backed by or
linked to digital assets and other investment vehicles that focus on other digital assets. Market and financial conditions, and other
conditions beyond the Trust&rsquo;s control, may make it more attractive to invest in other vehicles, which could adversely affect the
performance of the Trust.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Investors cannot
be assured of the Sponsor&rsquo;s continued services, the discontinuance of which may be detrimental to the Trust.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Investors cannot be assured
that the Sponsor will be able to continue to service the Trust for any length of time. If the Sponsor discontinues its activities on
behalf of the Trust, the Trust may be adversely affected, as there may be no entity servicing the Trust for a period of time. Such an
event could result in termination of the Trust.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The liability
of the Sponsor and the Trustee is limited, and the value of the Shares will be adversely affected if the Trust is required to indemnify
the Trustee or the Sponsor.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Under the Trust Agreement,
the Trustee and the Sponsor are not liable, and have the right to be indemnified, for any liability or expense incurred absent gross
negligence or willful misconduct on the part of the Trustee or the Sponsor or breach by the Sponsor of the Trust Agreement, as the case
may be. As a result, the Sponsor may require the assets of the Trust to be sold in order to cover losses or liability suffered by it.
Any sale of that kind would reduce the NAV of the Trust and the value of its Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Shareholders&rsquo;
limited rights of legal recourse against the Trust, Sponsor, Administrator, Transfer Agent, Cash Custodian, Prime Execution Agent and
Bitcoin Custodian and the Trust&rsquo;s lack of direct insurance protection expose the Trust and its Shareholders to the risk of loss
of the Trust&rsquo;s bitcoin for which no person is liable.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trust is not a banking
institution and is not a member of the FDIC or Securities Investor Protection Corporation (&ldquo;SIPC&rdquo;) and, therefore, investments
in the Trust are not subject to the protections enjoyed by depositors with FDIC or SIPC member institutions. Likewise, the Bitcoin Custodian
is not a depository institution and is not a member of the FDIC or SIPC and, therefore, the Trust&rsquo;s assets held with the Bitcoin
Custodian are not subject to FDIC or SIPC insurance coverage. In addition, neither the Trust nor the Sponsor insure the Trust&rsquo;s
bitcoins. The Bitcoin Custodian&rsquo;s parent, Coinbase Global, Inc. (&ldquo;Coinbase Global&rdquo;) maintains a commercial crime insurance
policy of up to $320 million, which is intended to cover the loss of client assets held by Coinbase Global and all of its subsidiaries,
including the Bitcoin Custodian and the Prime Execution Agent (collectively, Coinbase Global and its subsidiaries are referred to as
the &ldquo;Coinbase Insureds&rdquo;), including from employee collusion or fraud, physical loss including theft, damage of key material,
security breach or hack, and fraudulent transfer. The insurance maintained by the Coinbase Global is shared among all of Coinbase&rsquo;s
customers, is not specific to the Trust or to customers holding bitcoin with the Bitcoin Custodian or Prime Execution Agent and may not
be available or sufficient to protect the Trust from all possible losses or sources of losses. Coinbase Global&rsquo;s insurance may
not cover the type of losses experienced by the Trust. Alternatively, the Trust may be forced to share such insurance proceeds with other
clients or customers of the Coinbase Insureds, which could reduce the amount of such proceeds that are available to the Trust. In addition,
the bitcoin insurance market is limited, and the level of insurance maintained by Coinbase Global may be substantially lower than the
assets of the Trust. While the Bitcoin Custodian maintains certain capital reserve requirements depending on the assets under custody,
and such capital reserves may provide additional means to cover client asset losses, the Trust cannot be assured that the Bitcoin Custodian
will maintain capital reserves sufficient to cover actual or potential losses with respect to the Trust&rsquo;s digital assets.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Furthermore, under the Bitcoin
Custody Agreement, the Bitcoin Custodian&rsquo;s liability is limited as follows, among others: (i) other than with respect to claims
and losses arising from spot trading of bitcoin, or fraud or willful misconduct, the Mutually Capped Liabilities (defined below), the
Bitcoin Custodian&rsquo;s aggregate liability under the Bitcoin Custody Agreement shall not exceed the greater of (A) the greater of
(x) $5 million and (y) the aggregate fees paid by the Trust to the Bitcoin Custodian in the 12 months prior to the event giving rise
to the Bitcoin Custodian&rsquo;s liability, and (B) the value of the affected bitcoin or cash giving rise to the Bitcoin Custodian&rsquo;s
liability; (ii) in respect of the Bitcoin Custodian&rsquo;s obligations to indemnify the Trust and its affiliates against third-party
claims and losses to the extent arising out of or relating to, among others, the Bitcoin Custodian&rsquo;s gross negligence, violation
of its confidentiality, data protection and/or information security obligations, or violation of any law, rule or regulation with respect
to the provision of its services (the &ldquo;Mutually Capped Liabilities&rdquo;), the Bitcoin Custodian&rsquo;s liability shall not exceed
the greater of (A) $5 million and (B) the aggregate fees paid by the Trust to the Bitcoin Custodian in the 12 months prior to the event
giving rise to the Bitcoin Custodian&rsquo;s liability; and (iii) in respect of any incidental, indirect, special, punitive, consequential
or similar losses, the Bitcoin Custodian is not liable, even if the Bitcoin Custodian has been advised of or knew or should have known
of the possibility thereof. In general, the Bitcoin Custodian is not liable under the Bitcoin Custody Agreement unless in the event of
its negligence, fraud, material violation of applicable law or willful misconduct. The Bitcoin Custodian is not liable for delays, suspension
of operations, failure in performance, or interruption of service to the extent it is directly due to a cause or condition beyond the
reasonable control of the Bitcoin Custodian. In the event of potential losses incurred by the Trust as a result of the Bitcoin Custodian
losing control of the Trust&rsquo;s bitcoins or failing to properly execute instructions on behalf of the Trust, the Bitcoin Custodian&rsquo;s
liability with respect to the Trust will be subject to certain limitations which may allow it to avoid liability for potential losses
or may be insufficient to cover the value of such potential losses, even if the Bitcoin Custodian directly caused such losses.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Similarly, under the Prime
Execution Agreement, the Prime Execution Agent&rsquo;s liability is limited as follows, among others: (i) other than with respect to
claims and losses arising from spot trading of bitcoin, or fraud or willful misconduct, or the PB Mutually Capped Liabilities (defined
below), the Prime Execution Agent&rsquo;s aggregate liability shall not exceed the greater of (A) the greater of (x) $5 million and (y)
the aggregate fees paid by the Trust to the Prime Execution Agent in the 12 months prior to the event giving rise to the Prime Execution
Agent&rsquo;s liability, and (B) the value of the cash or affected bitcoin giving rise to the Prime Execution Agent&rsquo;s liability;
(ii) in respect of the Prime Execution Agent&rsquo;s obligations to indemnify the Trust and its affiliates against third-party claims
and losses to the extent arising out of or relating to, among others, the Prime Execution Agent&rsquo;s gross negligence, violation of
its confidentiality, data protection and/or information security obligations, violation of any law, rule or regulation with respect to
the provision of its services, or the full amount of the Trust&rsquo;s assets lost due to the insolvency of or security event at a Connected
Trading Venue (as defined below) (the &ldquo;PB Mutually Capped Liabilities&rdquo;), the Prime Execution Agent&rsquo;s liability shall
not exceed the greater of (A) $5 million and (B) the aggregate fees paid by the Trust to the Prime Execution Agent in the 12 months prior
to the event giving rise to the Prime Execution Agent&rsquo;s liability; and (iii) in respect of any incidental, indirect, special, punitive,
consequential or similar losses, the Prime Execution Agent is not liable, even if the Prime Execution Agent has been advised of or knew
or should have known of the possibility thereof. In general, with limited exceptions (such as for failing to execute an order), the Prime
Execution Agent is not liable under the Prime Execution Agreement unless in the event of its gross negligence, fraud, material violation
of applicable law or willful misconduct. The Prime Execution Agent is not liable for delays, suspension of operations, failure in performance,
or interruption of service to the extent it is directly due to a cause or condition beyond the reasonable control of the Prime Execution
Agent. These and the other limitations on the Prime Execution Agent&rsquo;s liability may allow it to avoid liability for potential losses
or may be insufficient to cover the value of such potential losses, even if the Prime Execution Agent directly caused such losses. Both
the Trust and the Prime Execution Agent and its affiliates (including the Bitcoin Custodian) are required to indemnify each other under
certain circumstances.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Moreover, in the event of
an insolvency or bankruptcy of the Prime Execution Agent (in the case of the Trading Balance) or the Bitcoin Custodian (in the case of
the Trust Bitcoin Account) in the future, given that the contractual protections and legal rights of customers with respect to digital
assets held on their behalf by third parties are relatively untested in a bankruptcy of an entity such as the Bitcoin Custodian or Prime
Execution Agent in the virtual currency industry, there is a risk that customers&rsquo; assets &ndash; including the Trust&rsquo;s assets
&ndash; may be considered the property of the bankruptcy estate of the Prime Execution Agent (in the case of the Trading Balance) or
the Bitcoin Custodian (in the case of the Trust Bitcoin Account), and customers &ndash; including the Trust &ndash; may be at risk of
being treated as general unsecured creditors of such entities and subject to the risk of total loss or markdowns on value of such assets.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Bitcoin Custody Agreement
contains an agreement by the parties to treat the bitcoin credited to the Trust Bitcoin Account as financial assets under Article 8 of
the New York Uniform Commercial Code (&ldquo;Article 8&rdquo;), in addition to stating that the Bitcoin Custodian will serve as fiduciary
and custodian on the Trust&rsquo;s behalf. The Bitcoin Custodian&rsquo;s parent, Coinbase Global, Inc., has stated in its most recent
public securities filings that in light of the inclusion in its custody agreements of provisions relating to Article 8 it believes that
a court would not treat custodied digital assets as part of its general estate in the event the Bitcoin Custodian were to experience
insolvency. However, due to the novelty of digital asset custodial arrangements courts have not yet considered this type of treatment
for custodied digital assets and it is not possible to predict with certainty how they would rule in such a scenario. If the Bitcoin
Custodian became subject to insolvency proceedings and a court were to rule that the custodied bitcoin were part of the Bitcoin Custodian&rsquo;s
general estate and not the property of the Trust, then the Trust would be treated as a general unsecured creditor in the Bitcoin Custodian&rsquo;s
insolvency proceedings and the Trust could be subject to the loss of all or a significant portion of its assets. Moreover, in the event
of the bankruptcy of the Bitcoin Custodian, an automatic stay could go into effect and protracted litigation could be required in order
to recover the assets held with the Bitcoin Custodian, all of which could significantly and negatively impact the Trust&rsquo;s operations
and the value of the Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">With respect to the Prime
Execution Agreement, there is a risk that the Trading Balance, in which the Trust&rsquo;s bitcoin and cash is held in omnibus accounts
by the Prime Execution Agent (in the latter case, as described below in &ldquo;&mdash;Loss of a critical banking relationship for, or
the failure of a bank used by, the Prime Execution Agent could adversely impact the Trust&rsquo;s ability to create or redeem Baskets,
or could cause losses to the Trust&rdquo;), could be considered part of the Prime Execution Agent&rsquo;s bankruptcy estate in the event
of the Prime Execution Agent&rsquo;s bankruptcy. The Prime Execution Agreement contains an Article 8 opt-in clause with respect to the
Trust&rsquo;s assets held in the Trading Balance.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Prime Execution Agent
is not required to hold any of the bitcoin or cash in the Trust&rsquo;s Trading Balance in segregation. Within the Trading Balance, the
Prime Execution Agreement provides that the Trust does not have an identifiable claim to any particular bitcoin (and cash). Instead,
the Trust&rsquo;s Trading Balance represents an entitlement to a pro rata share of the bitcoin (and cash) the Prime Execution Agent has
allocated to the omnibus wallets the Prime Execution Agent holds, as well as the accounts in the Prime Execution Agent&rsquo;s name that
the Prime Execution Agent maintains at Connected Trading Venues (the &ldquo;Connected Trading Venue&rdquo;) (which are typically held
on an omnibus, rather than segregated, basis). If the Prime Execution Agent suffers an insolvency event, there is a risk that the Trust&rsquo;s
assets held in the Trading Balance could be considered part of the Prime Execution Agent&rsquo;s bankruptcy estate and the Trust could
be treated as a general unsecured creditor of the Prime Execution Agent, which could result in losses for the Trust and Shareholders.
Moreover, in the event of the bankruptcy of the Prime Execution Agent, an automatic stay could go into effect and protracted litigation
could be required in order to recover the assets held with the Prime Execution Agent, all of which could significantly and negatively
impact the Trust&rsquo;s operations and the value of the Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Under the Trust Agreement,
the Sponsor will not be liable for any liability or expense incurred, including, without limitation, as a result of any loss of bitcoin
by the Bitcoin Custodian or Prime Execution Agent, absent gross negligence, bad faith or willful misconduct on the part of the Sponsor.
As a result, the recourse of the Trust or the Shareholders to the Sponsor, including in the event of a loss of bitcoin by the Bitcoin
Custodian or Prime Execution Agent, is limited.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Shareholders&rsquo; recourse
against the Sponsor and the Trust&rsquo;s other service providers for the services they provide to the Trust, including, without limitation,
those relating to the holding of bitcoin or the provision of instructions relating to the movement of bitcoin, is limited. For the avoidance
of doubt, neither the Sponsor, the Trustee, nor any of their affiliates, nor any other party has guaranteed the assets or liabilities,
or otherwise assumed the liabilities, of the Trust, or the obligations or liabilities of any service provider to the Trust, including,
without limitation, the Bitcoin Custodian and Prime Execution Agent. The Prime Execution Agreement and Bitcoin Custody Agreement provide
that neither the Sponsor nor its affiliates shall have any obligation of any kind or nature whatsoever, by guaranty, enforcement or otherwise,
with respect to the performance of any the Trust&rsquo;s obligations, agreements, representations or warranties under the Prime Execution
Agreement or Bitcoin Custody Agreement or any transaction thereunder. Consequently, a loss may be suffered with respect to the Trust&rsquo;s
bitcoin that is not covered by Coinbase Global&rsquo;s insurance and for which no person is liable in damages. As a result, the recourse
of the Trust or the Shareholders, under applicable law, is limited.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">During the rare
and limited circumstances when the Trust utilizes the Agent Execution Model pursuant to a Cash Creation Order, it may utilize Trade Credits.
If the Trade Credits are not available or become exhausted, the Trust may face delays in buying or selling bitcoin that may adversely
impact Shareholders; if the Trust does not repay the Trade Credits on time, its assets may be liquidated by the Trade Credit Lender and
its affiliates.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">During the rare and limited
circumstances when the Trust utilizes the Agent Execution Model pursuant to a Cash Creation Order, it may utilize Trade Credits (defined
below). To avoid having to pre-fund purchases or sales of bitcoin, the Trust may borrow bitcoin or cash as trade credit (&ldquo;Trade
Credit&rdquo;) from Coinbase Credit, Inc. (the &ldquo;Trade Credit Lender&rdquo;) on a short-term basis pursuant to the Coinbase Credit
Committed Trade Financing Agreement (the &ldquo;Trade Financing Agreement&rdquo;). The Trade Credit Lender is only required to extend
Trade Credits to the Trust to the extent such bitcoin or cash is actually available to the Trade Credit Lender. To the extent that Trade
Credits are not available or become exhausted, (1) there may be delays in the buying and selling of bitcoin related to cash creations
and redemptions or the selling of bitcoin related to paying Trust expenses not assumed by the Sponsor, to the extent applicable, (2)
Trust assets may be in held the Trading Balance for a longer duration than if Trade Credits were available, and (3) the execution price
associated with such trades may deviate significantly from the BRRNY price used to determine the net asset value of the Trust. To the
extent that the execution price for purchases and sales of bitcoin deviate significantly from the BRRNY price used to determine the Trust&rsquo;s
NAV, Shareholders may be negatively impacted because the added costs of such price deviations would be incurred by the Authorized Participants
and may be passed onto the Shareholders in the secondary market.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>To the extent the Trust
utilizes Trade Credits when using the Agent Execution Model, such Trade Credits are secured by the Trust&rsquo;s assets, including any
cash and bitcoin held in the Trading Balance with the Prime Execution Agent and the Trust Bitcoin Account held with the Bitcoin Custodian,
and such assets may be liquidated by the Trade Credit Lender to repay Trade Credit debt owed by the Trust in the event the Trust fails
to repay the Trade Credit debt.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">During the rare and limited
circumstances when the Trust utilizes the Agent Execution Model pursuant to a Cash Creation Order, it may utilize Trade Credits. The
Trust generally must repay Trade Credits by 6:00 p.m. ET on the calendar day immediately following the day the Trade Credit was extended
by the Trade Credit Lender to the Trust (or, if such day is not a business day, on the next business day). Pursuant to the Trade Financing
Agreement, the Trust has granted a security interest, lien on, and right of set off against all of the Trust&rsquo;s right, title and
interest, in the Trust&rsquo;s Trading Balance and Trust Bitcoin Account established pursuant to the Prime Execution Agreement and Bitcoin
Custody Agreement, in order to secure the repayment by the Trust of the Trade Credits and financing fees to the Trade Credit Lender.
Upon a Termination for Cause, as defined in the Prime Execution Agreement, which includes a failure by the Trust to pay and settle in
full its obligations to the Trade Credit Lender in respect of the financing it provides to the Trust in the form of Trade Credits, the
Bitcoin Custodian and the Prime Execution Agent have agreed to comply with instructions from the Trade Credit Lender with respect to
the disposition of the assets in the Trust Bitcoin Account and Trading Balance respectively without further consent by the Trust. If
the Trust fails to repay the Trade Credits to the Trade Credit Lender on time and in full, the Trade Credit Lender can take control of
the Trust&rsquo;s assets and liquidate them to repay the Trade Credit debt owed by the Trust to the Trade Credit Lender.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Loss of a critical
banking relationship for, or the failure of a bank used by, the Prime Execution Agent could adversely impact the Trust&rsquo;s ability
to create or redeem Baskets, or could cause losses to the Trust, in the limited circumstances when the Trust utilizes the Agent Execution
Model.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Prime Execution Agent
relies on bank accounts to provide its trading platform services and including temporarily holding any cash related to a customer&rsquo;s
purchase or sale of bitcoin. In particular, the Prime Execution Agent has disclosed that customer cash held by the Prime Execution Agent,
including the cash associated with the Trust&rsquo;s Trading Balance, is held in one or more banks&rsquo; accounts for the benefit of
the Prime Execution Agent&rsquo;s customers, or in money market funds in compliance with Rule 2a-7 under the Investment Company Act and
rated &ldquo;AAA&rdquo; by S&amp;P (or the equivalent from any eligible rating service), provided that such investments are held in accounts
in Coinbase&rsquo;s name for the benefit of customers and are permitted and held in accordance with state money transmitter laws (&ldquo;Money
Market Funds&rdquo;). The Prime Execution Agent has represented to the Sponsor that it has implemented the following policy with respect
to the cash associated with the Trust&rsquo;s Trading Balance. First any cash related to the Trust&rsquo;s purchase or sale of bitcoin
will be held in an omnibus account in the Prime Execution Agent&rsquo;s name for the benefit of (&ldquo;FBO&rdquo;) its customers at
each of multiple FDIC-insured banks (an &ldquo;FBO Account&rdquo;), or in a Money Market Fund. The amount of Trust cash held at each
FBO Account shall be in an amount at each bank that is the lower of (i) the FDIC insurance limit for deposit insurance and (ii) any bank-specific
limit set by the Prime Execution Agent for the applicable bank. Deposit insurance does not apply to cash held in a Money Market Fund.
The Prime Execution Agent has agreed to title the accounts in a manner designed to enable receipt of FDIC deposit insurance where applicable
on a pass-through basis, but does not guarantee that pass-through insurance will apply since such insurance is dependent on the compliance
of the bank. Second, to the extent the Trust&rsquo;s cash in the Trading Balance in aggregate exceeds the amounts that can be maintained
at the banks on the foregoing basis, the Prime Execution Agent has represented that it currently conducts an overnight sweep of the excess
into U.S. government money market funds. The Sponsor has not independently verified the Prime Execution Agent&rsquo;s representations.
To the extent that the Prime Execution Agent faces difficulty establishing or maintaining banking relationships, the loss of the Prime
Execution Agent&rsquo;s banking partners or the imposition of operational restrictions by these banking partners and the inability for
the Prime Execution Agent to utilize other financial institutions may result in a disruption of creation and redemption activity of the
Trust, or cause other operational disruptions or adverse effects for the Trust. In the future, it is possible that the Prime Execution
Agent could be unable to establish accounts at new banking partners or establish new banking relationships, or that the banks with which
the Prime Execution Agent is able to establish relationships may not be as large or well-capitalized or subject to the same degree of
prudential supervision as the existing providers.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trust could also suffer
losses in the event that a bank in which the Prime Execution Agent holds customer cash, including the cash associated with the Trust&rsquo;s
Trading Balance (which is used by the Prime Execution Agent to move cash flows associated with the Trust&rsquo;s orders to sell bitcoin
in connection with payment of Trust expenses not assumed by the Sponsor), fails, becomes insolvent, enters receivership, is taken over
by regulators, enters financial distress, or otherwise suffers adverse effects to its financial condition or operational status. Recently,
some banks have experienced financial distress. For example, on March 8, 2023, the California Department of Financial Protection and
Innovation (&ldquo;DFPI&rdquo;) announced that Silvergate Bank had entered voluntary liquidation, and on March 10, 2023, Silicon Valley
Bank, (&ldquo;SVB&rdquo;), was closed by the DFPI, which appointed the FDIC, as receiver. Similarly, on March 12, 2023, the New York
Department of Financial Services took possession of Signature Bank and appointed the FDIC as receiver. A joint statement by the Department
of the Treasury, the Federal Reserve and the FDIC on March 12, 2023, stated that depositors in Signature and SVB will have access to
all of their funds, including funds held in deposit accounts, in excess of the insured amount. On May 1, 2023, First Republic Bank was
closed by the California Department of Financial Protection and Innovation, which appointed the FDIC as receiver. Following a bidding
process, the FDIC entered into a purchase and assumption agreement with JPMorgan Chase Bank, National Association, to acquire the substantial
majority of the assets and assume certain liabilities of First Republic Bank from the FDIC.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Prime Execution Agent
has historically maintained banking relationships with Silvergate Bank and Signature Bank. While the Sponsor does not believe there is
a direct risk to the Trust&rsquo;s assets from the failures of Silvergate Bank or Signature Bank, in the future, changing circumstances
and market conditions, some of which may be beyond the Trust&rsquo;s or the Sponsor&rsquo;s control, could impair the Trust&rsquo;s ability
to access the Trust&rsquo;s cash held with the Prime Execution Agent in the Trust&rsquo;s Trading Balance or associated with the Trust&rsquo;s
orders to sell bitcoin in connection with payment of Trust expenses not assumed by the Sponsor. If the Prime Execution Agent were to
experience financial distress or its financial condition is otherwise affected by the failure of its banking partners, the Prime Execution
Agent&rsquo;s ability to provide services to the Trust could be affected. Moreover, the future failure of a bank at which the Prime Execution
Agent maintains customer cash, in the Trust&rsquo;s Trading Balance associated with the Trust&rsquo;s orders to sell bitcoin in connection
with payment of Trust expenses not assumed by the Sponsor, could result in losses to the Trust, to the extent the balances are not subject
to deposit insurance, notwithstanding the regulatory requirements to which the Prime Execution Agent is subject or other potential protections.
Although the Prime Execution Agent has made certain representations to the Sponsor regarding the Prime Execution Agent&rsquo;s maintenance
of records in a manner reasonably designed to qualify for FDIC insurance on a pass-through basis in connection with the accounts in which
the Prime Execution Agent maintains cash on behalf of its customers (including the Trust), there can be no assurance that such pass-through
insurance will ultimately be made available. In addition, the Trust may maintain cash balances with the Prime Execution Agent that are
not insured or are in excess of the FDIC&rsquo;s insurance limits, or which are maintained by the Prime Execution Agent at Money Market
Funds and subject to the attendant risks (e.g., &ldquo;breaking the buck&rdquo;). As a result, the Trust could suffer losses.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Prime Execution
Agent routes orders through Connected Trading Venues in connection with trading services under the Prime Execution Agreement. The loss
or failure of any such Connected Trading Venues may adversely affect the Prime Execution Agent&rsquo;s business and cause losses for
the Trust.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In connection with trading
services under the Prime Execution Agreement, the Prime Execution Agent routinely routes customer orders to Connected Trading Venues,
which are third-party platforms or other trading venues (including the trading venue operated by the Prime Execution Agent). In connection
with these activities, the Prime Execution Agent may hold bitcoin with such Connected Trading Venues in order to effect customer orders,
including the Trust&rsquo;s orders. However, the Prime Execution Agent has represented to the Sponsor that no customer cash is held at
Connected Trading Venues. If the Prime Execution Agent were to experience a disruption in the Prime Execution Agent&rsquo;s access to
these Connected Trading Venues, the Prime Execution Agent&rsquo;s trading services under the Prime Execution Agreement could be adversely
affected to the extent that the Prime Execution Agent is limited in its ability to execute order flow for its customers, including the
Trust. In addition, while the Prime Execution Agent has policies and procedures to help mitigate the Prime Execution Agent&rsquo;s risks
related to routing orders through third-party trading venues, if any of these third-party trading venues experience any technical, legal,
regulatory or other adverse events, such as shutdowns, delays, system failures, suspension of withdrawals, illiquidity, insolvency, or
loss of customer assets, the Prime Execution Agent might not be able to fully recover the customer&rsquo;s bitcoin that the Prime Execution
Agent has deposited with these third parties. As a result, the Prime Execution Agent&rsquo;s business, operating results and financial
condition could be adversely affected, potentially resulting in its failure to provide services to the Trust or perform its obligations
under the Prime Execution Agreement, and the Trust could suffer resulting losses or disruptions to its operations. The failure of a Connected
Trading Venue at which the Prime Execution Agent maintains customer bitcoin, including bitcoin associated with the Trust, could result
in losses to the Trust, notwithstanding the regulatory requirements to which the Prime Execution Agent is subject or other potential
protections.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>


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<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">A loss of confidence
or breach of the Bitcoin Custodian may adversely affect the Trust and the value of an investment in the Shares.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Custody and security services
for the Trust&rsquo;s bitcoin are provided by Coinbase Custody, although the Trust may retain one or more additional custodians at a
later date. Bitcoin held by the Trust may be custodied or secured in different ways (for example, a portion of the Trust&rsquo;s bitcoin
holdings may be custodied by Coinbase Custody and another portion by another third-party custodian). Over time, the Trust may change
the custody or security arrangement for all or a portion of its holdings. The Sponsor will decide the appropriate custody and arrangements
based on, among other factors, the availability of experienced custodians and the Trust&rsquo;s ability to securely safeguard the bitcoin.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">If the Bitcoin
Custody Agreement or Prime Execution Agreement is terminated or the Bitcoin Custodian or Prime Execution Agent fails to provide services
as required, the Sponsor may need to find and appoint a replacement custodian or prime broker, which could pose a challenge to the safekeeping
of the Trust&rsquo;s bitcoins, and the Trust&rsquo;s ability to continue to operate may be adversely affected.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trust is dependent on
the Bitcoin Custodian, which is Coinbase Custody, and to a lesser extent, the Prime Execution Agent, Coinbase Inc. to operate. Coinbase
Custody performs essential functions in terms of safekeeping the Trust&rsquo;s bitcoin in the Trust Bitcoin Account, and its affiliate,
Coinbase Inc., in its capacity as Prime Execution Agent under the Agent Execution Model. If Coinbase Custody or Coinbase Inc. fails to
perform the functions they perform for the Trust, the Trust may be unable to operate or create or redeem Baskets, which could force the
Trust to liquidate or adversely affect the price of the Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">On March 22, 2023, the Prime
Execution Agent and its parent (such parent, &ldquo;Coinbase Global&rdquo; and together with Coinbase Inc., the &ldquo;Relevant Coinbase
Entities&rdquo;) received a &ldquo;Wells Notice&rdquo; from the SEC staff stating that the SEC staff made a &ldquo;preliminary determination&rdquo;
to recommend that the SEC file an enforcement action against the Relevant Coinbase Entities alleging violations of the federal securities
laws, including the Exchange Act and the 1933 Act. According to Coinbase Global&rsquo;s public reporting company disclosure, based on
discussions with the SEC staff, the Relevant Coinbase Entities believe these potential enforcement actions would relate to aspects of
the Relevant Coinbase Entities&rsquo; Coinbase Prime service, spot market, staking service Coinbase Earn, and Coinbase Wallet, and the
potential civil action may seek injunctive relief, disgorgement, and civil penalties. On June 6, 2023, the SEC filed a complaint against
the Relevant Coinbase Entities in federal district court in the Southern District of New York, alleging, inter alia: (i) that Coinbase
Inc. has violated the Exchange Act by failing to register with the SEC as a national securities exchange, broker-dealer, and clearing
agency, in connection with activities involving certain identified digital assets that the SEC&rsquo;s complaint alleges are securities,
(ii) that Coinbase Inc. has violated the 1933 Act by failing to register with the SEC the offer and sale of its staking program, and
(iii) that Coinbase Global is jointly and severally liable as a control person under the Exchange Act for Coinbase Inc.&rsquo;s violations
of the Exchange Act to the same extent as Coinbase Inc. The SEC&rsquo;s complaint against the Relevant Coinbase Entities does not allege
that bitcoin is a security nor does it allege that Coinbase Inc&rsquo;s activities involving bitcoin caused the alleged registration
violations, and the Bitcoin Custodian was not named as a defendant. The SEC&rsquo;s complaint seeks a permanent injunction against the
Relevant Coinbase Entities to prevent them from violations of the Exchange Act or 1933 Act, disgorgement, civil monetary penalties, and
such other relief as the court deems appropriate or necessary. Coinbase Inc., as Prime Execution Agent, could be required, as a result
of a judicial determination, or could choose, to restrict or curtail the services it offers, or its financial condition and ability to
provide services to the Trust could be affected. If the Prime Execution Agent were to be required or choose, as a result of a regulatory
action (including, for example, the litigation initiated by the SEC), to restrict or curtail the services it offers, it could negatively
affect the Trust&rsquo;s ability to operate or process creations or redemptions of Baskets, which could force the Trust to liquidate
or adversely affect the price of the Shares. While the Bitcoin Custodian is not named in the complaint, if Coinbase Global, as the parent
of the Bitcoin Custodian, is required, as a result of a judicial determination, or could choose, to restrict or curtail the services
its subsidiaries provide to the Trust, or its financial condition is negatively affected, it could negatively affect the Trust&rsquo;s
ability to operate.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Alternatively, the Trustee
could decide to replace Coinbase Custody as the Bitcoin Custodian with custody of the Trust&rsquo;s bitcoins, pursuant to the Bitcoin
Custody Agreement. Similarly, Coinbase Custody or Coinbase Inc. could terminate services under the Bitcoin Custody Agreement or the Coinbase
Prime Broker Agreement (the &ldquo;Prime Execution Agreement&rdquo;) respectively upon providing the applicable notice to the Trust for
any reason, or immediately for Cause (a &ldquo;Termination for Cause&rdquo; is defined in the Bitcoin Custody Agreement as (i) the Trust
materially breaching any provision of the Bitcoin Custody Agreement; (ii) the Trust becomes bankrupt or insolvent; or (iii) the Trust
fails to pay and settle in full its obligations to Coinbase Custody&rsquo;s affiliate, the Trade Credit Lender (as defined below), which
may, from time to time, provide financing to the Trust in the form of Trade Credits). Transferring maintenance responsibilities of the
Trust Bitcoin Account at the Bitcoin Custodian to another custodian will likely be complex and could subject the Trust&rsquo;s bitcoin
to the risk of loss during the transfer, which could have a negative impact on the performance of the Shares or result in loss of the
Trust&rsquo;s assets. As Prime Execution Agent, Coinbase Inc. does not guarantee uninterrupted access to the Trading Platform or the
services it provides to the Trust as Prime Execution Agent. Under certain circumstances, Coinbase Inc. is permitted to halt or suspend
trading on its trading platform, or impose limits on the amount or size of, or reject, the Trust&rsquo;s orders, including in the event
of, among others, (a) delays, suspension of operations, failure in performance, or interruption of service that are directly due to a
cause or condition beyond the reasonable control of Coinbase Inc, (b) the Trust has engaged in unlawful or abusive activities or fraud,
(c) the acceptance of the Trust&rsquo;s order would cause the amount of Trade Credits extended to exceed the maximum amount of Trade
Credit (as defined below) that the Trust&rsquo;s agreement with the Trade Credit Lender permits to be outstanding at any one time, or
(d) a security or technology issue occurred and is continuing that results in Coinbase Inc. being unable to provide trading services
or accept the Trust&rsquo;s order, in each case, subject to certain protections for the Trust. Also, if Coinbase Custody or Coinbase
Inc. become insolvent, suffer business failure, cease business operations, default on or fail to perform their obligations under their
contractual agreements with the Trust, or abruptly discontinue the services they provide to the Trust for any reason, the Trust&rsquo;s
operations would be adversely affected.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Sponsor may not be able
to find a party willing to serve as the custodian of the Trust&rsquo;s bitcoin or as the Trust&rsquo;s prime execution agent under the
same terms as the current Bitcoin Custody Agreement or Prime Execution Agreement or at all. To the extent that Trustee is not able to
find a suitable party willing to serve as the custodian or prime execution agent, the Trustee may be required to terminate the Trust
and liquidate the Trust&rsquo;s bitcoin. In addition, to the extent that the Trustee finds a suitable party but must enter into a modified
Bitcoin Custody Agreement or Prime Execution Agreement that is less favorable for the Trust, the value of the Shares could be adversely
affected. If the Trust is unable to find a replacement prime execution agent, its operations could be adversely affected.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Coinbase Custody
serves as the bitcoin custodian and Coinbase Inc. serves as the prime broker for several competing exchange-traded bitcoin products,
which could adversely affect the Trust&rsquo;s operations and ultimately the value of the Shares.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Bitcoin Custodian and
Prime Execution Agent are both affiliates of Coinbase Global. As of the date hereof, Coinbase Global is the largest publicly traded crypto
asset company in the world by market capitalization and is also the largest crypto asset custodian in the world by assets under custody.
By virtue of its leading market position and capabilities, and the relatively limited number of institutionally-capable providers of
crypto asset brokerage and custody services, Coinbase Custody serves as the bitcoin custodian and Coinbase Inc. serves as prime broker
for several competing exchange-traded bitcoin products. Therefore, Coinbase Global has a critical role in supporting the U.S. spot bitcoin
exchange-traded product ecosystem, and its size and market share creates the risk that Coinbase Global may fail to properly resource
its operations to adequately support all such products that use its services that could harm the Trust, the Shareholders and the value
of the Shares. If the Trust needed to utilize the Agent Execution Model to buy or sell bitcoin because no Bitcoin Trading Counterparties
were willing or able to effectuate the Trust&rsquo;s transactions, and the Prime Execution Agent were to favor the interests of certain
products over others, it could result in inadequate attention or comparatively unfavorable commercial terms to less favored products,
which could adversely affect the Trust&rsquo;s operations and ultimately the value of the Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Sponsor may
need to find and appoint a replacement Bitcoin Custodian or Cash Custodian quickly, which could pose a challenge to the safekeeping of
the Trust&rsquo;s bitcoin and cash.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Sponsor may need to replace
the Bitcoin Custodian of the Trust&rsquo;s bitcoin or the Cash Custodian of the Trust&rsquo;s cash and cash equivalents as a result of
the insolvency, business failure or interruption, default, failure to perform, security breach or other problems. Transferring maintenance
responsibilities of the Trust&rsquo;s accounts with the Bitcoin Custodian and/or Cash Custodian to another party will likely be complex
and could subject the Trust&rsquo;s bitcoin to the risk of loss during the transfer, which could have a negative impact on the performance
of the Shares or result in loss of the Trust&rsquo;s assets. The Sponsor may not be able to find a party willing to serve as the Bitcoin
Custodian or Cash Custodian under the same terms as the current Bitcoin Custody Agreement or Cash Custody Agreement, respectively. To
the extent that Sponsor is not able to find a suitable party willing to serve as the Bitcoin Custodian or Cash Custodian, as applicable,
the Sponsor may be required to terminate the Trust and liquidate the Trust&rsquo;s bitcoin. In addition, to the extent that the Sponsor
finds a suitable party but must enter into modified custodial services agreements that cost more, the value of the Shares could be adversely
affected.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Bitcoin Custodian
could become insolvent.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trust&rsquo;s assets
will be held in one or more accounts maintained for the Trust by the Bitcoin Custodian and Cash Custodian. The Bitcoin Custodian is not
a depository institution as it not insured by the FDIC. The insolvency of the Bitcoin Custodian or of any broker, custodian bank or clearing
corporation used by the Bitcoin Custodian, may result in the loss of all or a substantial portion of the Trust&rsquo;s assets or in a
significant delay in the Trust having access to those assets. Additionally, custody of digital assets presents inherent and unique risks
relating to access loss, theft and means of recourse in such scenarios. These risks are applicable to the Trust&rsquo;s use of Coinbase
Custody.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Bitcoin held
by the Trust are not subject to FDIC or SIPC protections.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trust is not a banking
institution or otherwise a member of the FDIC or SIPC and, therefore, deposits held with or assets held by the Trust are not subject
to the protections enjoyed by depositors with FDIC or SIPC member institutions. The undivided interests in the Trust&rsquo;s bitcoin
represented by the Shares in the Trust are not insured.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Third parties
may infringe upon or otherwise violate intellectual property rights or assert that the Sponsor has infringed or otherwise violated their
intellectual property rights, which may result in significant costs and diverted attention.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">It is possible that third
parties might utilize the Trust&rsquo;s intellectual property or technology, including the use of its business methods and trademarks,
without permission. However, the Trust may not have adequate resources to implement procedures for monitoring unauthorized uses of their
trademarks, proprietary software and other technology. Also, third parties may independently develop business methods, trademarks or
proprietary software and other technology similar to that of the Trust or claim that the Trust has violated their intellectual property
rights, including their copyrights, trademark rights, trade names, trade secrets and patent rights. As a result, the Trust may have to
litigate in the future to protect its trade secrets, determine the validity and scope of other parties&rsquo; proprietary rights, defend
itself against claims that it has infringed or otherwise violated other parties&rsquo; rights, or defend itself against claims that its
rights are invalid. Any litigation of this type, even if the Trust is successful and regardless of the merits, may result in significant
costs, divert its resources from the Trust, or require it to change its proprietary software and other technology or enter into royalty
or licensing agreements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Due to the increased
use of technologies, intentional and unintentional cyber-attacks pose operational and information security risks.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">With the increased use of
technologies such as the internet and the dependence on computer systems to perform necessary business functions, the Trust is susceptible
to operational and information security risks. In general, cyber incidents can result from deliberate attacks or unintentional events.
Cyber-attacks include, but are not limited to, gaining unauthorized access to digital systems for purposes of misappropriating assets
or sensitive information, corrupting data, or causing operational disruption. Cyber-attacks may also be carried out in a manner that
does not require gaining unauthorized access, such as causing denial-of-service attacks on websites. Cyber security failures or breaches
of one or more of the Trust&rsquo;s third-party service providers (including, but not limited to, the Administrator, Transfer Agent,
the Sponsor, the Bitcoin Custodian and the Cash Custodian) have the ability to cause disruptions and impact business operations, potentially
resulting in financial losses, the inability of the Shareholders to transact business, violations of applicable privacy and other laws,
regulatory fines, penalties, reputational damage, reimbursement or other compensation costs, and/or additional compliance costs.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In addition, substantial
costs may be incurred in order to prevent any cyber incidents in the future. The Trust and its Shareholders could be negatively impacted
as a result. While the Trust has established business continuity plans, there are inherent limitations in such plans.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>


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<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trust faces
risks related to the outbreak of infectious diseases or other public health issues, which could negatively impact the value of the Trust&rsquo;s
holdings and significantly disrupt its operations.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Health crises caused by the
outbreak of infectious diseases or other public health issues, may exacerbate other pre-existing political, social, economic, market
and financial risks. The impact of any such events, could negatively affect the global economy, as well as the economies of individual
countries or regions, the financial performance of individual companies, sectors and industries, and the markets in general in significant
and unforeseen ways. Any such impact could adversely affect the prices and liquidity of the Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">For example, an outbreak
of a respiratory disease designated as COVID-19 was first detected in China in December 2019 and subsequently spread internationally.
The transmission of COVID-19 and efforts to contain its spread have resulted in international, national and local border closings and
other significant travel restrictions and disruptions, significant disruptions to business operations, supply chains and customer activity,
event cancellations and restrictions, service cancellations, reductions and other changes, significant challenges in healthcare service
preparation and delivery, and quarantines, as well as general concern and uncertainty that has negatively affected the economic environment.
These impacts also have caused significant volatility and declines in global financial markets, including increased volatility and uncertainty
in crypto markets, which have caused losses for investors. The impact of this COVID-19 pandemic may be short term or may last for an
extended period of time, and in either case could result in a substantial economic downturn or recession.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In addition, the operations
of the Trust, the Sponsor and other service providers may be significantly impacted, or even temporarily or permanently halted, as a
result of government quarantine measures, voluntary and precautionary restrictions on travel or meetings and other factors related to
a public health emergency, including its potential adverse impact on the health of any such entity&rsquo;s personnel. Any disruption
of operations could adversely impact the price and liquidity of the Shares, including, without limitation, the Trust&rsquo;s ability
to process creation or redemption orders for Baskets.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center"><A NAME="a_003"></A>BITCOIN,
BITCOIN MARKET AND REGULATION OF BITCOIN</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">This section of the prospectus
provides a more detailed description of bitcoin, including information about the historical development of bitcoin, how a person holds
bitcoin, how to use bitcoin in transactions, how to trade bitcoin, the &ldquo;spot&rdquo; trading platform market where bitcoin can be
bought, held and sold, the bitcoin over-the-counter (&ldquo;OTC&rdquo;) trading market and bitcoin mining. In this prospectus, Bitcoin
with an upper case &ldquo;B&rdquo; is used to describe the system as a whole that is involved in maintaining the ledger of bitcoin ownership
and facilitating the transfer of bitcoin among parties. When referring to the cryptocurrency of the bitcoin network, bitcoin is written
with a lower case &ldquo;b&rdquo; (except, of course, at the beginning of sentences or paragraph sections, as below).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Bitcoin</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Bitcoin is the digital asset
that is native to, and created and transmitted through the operations of, the peer-to-peer Bitcoin network, a decentralized network of
computers that operates on cryptographic protocols. No single entity owns or operates the Bitcoin network, the infrastructure of which
is collectively maintained by a decentralized user base. The Bitcoin network allows people to exchange tokens of value, called bitcoin,
which are recorded on a public transaction ledger known as the Bitcoin blockchain. Bitcoin can be used to pay for goods and services,
or it can be converted to fiat currencies, such as the U.S. dollar, at rates determined on digital asset trading platforms or in individual
end-user-to-end-user transactions under a barter system. Although nascent in use, bitcoin may be used as a medium of exchange, unit of
account or store of value.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Bitcoin network is decentralized
and does not require governmental authorities or financial institution intermediaries to create, transmit or determine the value of bitcoin.
In addition, no party may easily censor transactions on the Bitcoin network. As a result, the Bitcoin network is often referred to as
decentralized and censorship resistant.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The value of bitcoin is determined
by the supply of and demand for bitcoin. New bitcoin are created and rewarded to the parties providing the Bitcoin network&rsquo;s infrastructure
(&ldquo;miners&rdquo;) in exchange for their expending computational power to verifying transactions and add them to the Bitcoin blockchain.
The Bitcoin blockchain is effectively a decentralized database that includes all blocks that have been solved by miners and it is updated
to include new blocks as they are solved. Each bitcoin transaction is broadcast to the Bitcoin network and, when included in a block,
recorded in the Bitcoin blockchain. As each new block records outstanding bitcoin transactions, and outstanding transactions are settled
and validated through such recording, the Bitcoin blockchain represents a complete, transparent and unbroken history of all transactions
of the Bitcoin network.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Bitcoin Network</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Bitcoin was first described
in a white paper released in 2008 and published under the name &ldquo;Satoshi Nakamoto.&rdquo; The protocol underlying Bitcoin was subsequently
released in 2009 as open source software and currently operates on a worldwide network of computers. The Bitcoin network and its software
has been under active development since that time by a group of computer engineers known as core developers, each of whom operates under
a volunteer basis and without strict hierarchical administration.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Bitcoin network utilizes
a digital asset known as &ldquo;bitcoin,&rdquo; which can be transferred among parties via the Internet. Unlike other means of electronic
payments such as credit card transactions, one of the advantages of bitcoin is that it can be transferred without the use of a central
administrator or clearing agency. As a central party is not necessary to administer bitcoin transactions or maintain the bitcoin ledger,
the term decentralized is often used in descriptions of bitcoin. Unless it is using a third-party service provider, a party transacting
in bitcoin is generally not afforded some of the protections that may be offered by intermediaries.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The first step in directly
using the Bitcoin network for transactions is to download specialized software referred to as a &ldquo;bitcoin wallet.&rdquo; A user&rsquo;s
bitcoin wallet can run on a computer or smartphone, and can be used both to send and to receive bitcoin. Within a bitcoin wallet, a user
can generate one or more unique &ldquo;bitcoin addresses,&rdquo; which are conceptually similar to bank account numbers. After establishing
a bitcoin address, a user can send or receive bitcoin from his or her bitcoin address to another user&rsquo;s bitcoin address. Sending
bitcoin from one bitcoin address to another is similar in concept to sending a bank wire from one person&rsquo;s bank account to another
person&rsquo;s bank account; however, such transactions are not managed by an intermediary and erroneous transactions generally may not
be reversed or remedied once sent.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The amount of bitcoin associated
with each bitcoin address, as well as each bitcoin transaction to or from such bitcoin address, is transparently reflected in the Bitcoin
blockchain and can be viewed by websites that operate as &ldquo;Bitcoin blockchain explorers.&rdquo; Copies of the Bitcoin blockchain
exist on thousands of computers on the Bitcoin network throughout the Internet. A user&rsquo;s bitcoin wallet will either contain a copy
of the Bitcoin blockchain or be able to connect with another computer that holds a copy of the Bitcoin blockchain. The innovative design
of the Bitcoin network protocol allows each Bitcoin user to trust that their copy of the Bitcoin blockchain will generally be updated
consistent with each other user&rsquo;s copy.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">When a Bitcoin user wishes
to transfer bitcoin to another user, the sender must first request a Bitcoin address from the recipient. The sender then uses his or
her Bitcoin wallet software to create a proposed transaction that is confirmed and settles when included in the Bitcoin blockchain. The
transaction would reduce the amount of bitcoin allocated to the sender&rsquo;s address and increase the amount allocated to the recipient&rsquo;s
address, in each case by the amount of bitcoin desired to be transferred. The transaction is completely digital in nature, similar to
a file on a computer, and it can be sent to other computers participating in the Bitcoin network; however, the use of cryptographic verification
is believed to prevent the ability to duplicate or counterfeit bitcoin.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Bitcoin Protocol</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Bitcoin protocol is built
using open source software allowing for any developer to review the underlying code and suggest changes. There is no official company
or group that is responsible for making modifications to Bitcoin. There are, however, a number of individual developers that regularly
contribute to the reference software known as &ldquo;Bitcoin Core,&rdquo; a specific distribution of Bitcoin software that provides the
de-facto standard for the Bitcoin protocol.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Significant changes to the
Bitcoin protocol are typically accomplished through a so-called &ldquo;Bitcoin Improvement Proposal&rdquo; or BIP. Such proposals are
generally posted on websites, and the proposals explain technical requirements for the protocol change as well as reasons why the change
should be accepted by users. Because Bitcoin has no central authority, updating the reference software&rsquo;s Bitcoin protocol will
not immediately change the Bitcoin network&rsquo;s operations. Instead, the implementation of a change is achieved by users (including
transaction validators known as &ldquo;miners&rdquo;) downloading and running the updated versions of Bitcoin Core or other Bitcoin software
that abides by the new Bitcoin protocol. Users and miners must accept any changes made to the Bitcoin source code by downloading a version
of their Bitcoin software that incorporates the proposed modification of the Bitcoin network&rsquo;s source code. A modification of the
Bitcoin network&rsquo;s source code or protocol is only effective with respect to those Bitcoin users and miners who download it. If
an incompatible modification is accepted by a less than overwhelming percentage of users and miners, a division in the Bitcoin network
will occur such that one network will run the pre-modification source code and the other network will run the modified source code. Such
a division is known as a &ldquo;fork&rdquo; in the Bitcoin network.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Recent development on the
Bitcoin network has enabled some functionality other than the transfer of value on the Bitcoin blockchain. Following the recent activation
of Segregated Witness on the Bitcoin network, an alpha version of the Lightning Network was released. The Lightning Network is an open-source
decentralized network that enables instant off-blockchain transfers of the ownership of bitcoin without the need of a trusted third-party.
In 2021, the Bitcoin protocol implemented the Taproot upgrade to add enhanced support for complex transactions on the network such as
multi-signature transactions, which require two or more parties to execute a transaction on the Bitcoin network. Prior to the upgrade,
multi-signature transactions were historically slow, expensive, and easily identifiable. Taproot is intended to reduce the amount of
data written to a block and makes multi-signature transactions indistinguishable from regular transactions, adding an enhanced layer
of privacy. However, Taproot also relaxed certain types of data requirements enforced by the Bitcoin blockchain to facilitate these changes
which led to the launch of the &ldquo;ordinal protocol.&rdquo; The ordinal protocol takes advantage of Taproot&rsquo;s relaxed data requirements
to allow users to add graphic images and other data files to Bitcoin transactions (&ldquo;Ordinals&rdquo;). By mid-2023, nearly 63 million
Ordinals had been inscribed to the Bitcoin blockchain.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Other efforts include increased
use of smart contracts and distributed registers built into, built atop or pegged alongside the Bitcoin blockchain. The Trust&rsquo;s
activities will not directly relate to such projects, though such projects may utilize bitcoin as tokens for the facilitation of their
non-financial uses, thereby potentially increasing the utility of the Bitcoin network as a whole. Conversely, projects that operate and
are built within the Bitcoin blockchain may increase the data flow on the Bitcoin network and could either &ldquo;bloat&rdquo; the size
of the Bitcoin blockchain or slow confirmation times. At this time, such projects remain in early stages.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Bitcoin Transactions</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">A bitcoin transaction is
similar in concept to an irreversible digital check. The transaction contains the sender&rsquo;s bitcoin address, the recipient&rsquo;s
bitcoin address, the amount of bitcoin to be sent, a transaction fee and the sender&rsquo;s digital signature. Bitcoin transactions are
secured by cryptography known as &ldquo;public-private key cryptography,&rdquo; represented by the bitcoin addresses and digital signature
in a transaction&rsquo;s data file. Each Bitcoin network address, or wallet, is associated with a unique &ldquo;public key&rdquo; and
&ldquo;private key&rdquo; pair, both of which are lengthy alphanumeric codes, derived together and possessing a unique relationship.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The use of key pairs is a
cornerstone of the Bitcoin network technology. This is because the use of a private key is the only mechanism by which a bitcoin transaction
can be signed. If a private key is lost, the corresponding bitcoin is thereafter permanently non-transferable. Moreover, the theft of
a private key provides the thief immediate and unfettered access to the corresponding bitcoin. Bitcoin users must therefore understand
that in this regard, bitcoin is similar to cash: that is, the person or entity in control of the private key corresponding to a particular
quantity of bitcoin has de facto control of the bitcoin. For large quantities of bitcoin, holders often embrace sophisticated security
measures. For a discussion of how the Trust secures its bitcoin, see &ldquo;The Bitcoin Custodian&rdquo; below.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The public key is visible
to the public and analogous to the Bitcoin network address. The private key is a secret and is used to digitally sign a transaction in
a way that proves the transaction has been signed by the holder of the public-private key pair, and without having to reveal the private
key. A user&rsquo;s private key must be kept safe in accordance with appropriate controls and procedures to ensure it is used only for
legitimate and intended transactions. If an unauthorized third person learns of a user&rsquo;s private key, that third person could apply
the user&rsquo;s digital signature without authorization and send the user&rsquo;s bitcoin to their or another bitcoin address, thereby
stealing the user&rsquo;s bitcoin. Similarly, if a user loses his private key and cannot restore such access (e.g., through a backup),
the user may permanently lose access to the bitcoin associated with that private key and bitcoin address.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">To prevent the possibility
of double-spending of bitcoin, each validated transaction is recorded, time stamped and publicly displayed in a &ldquo;block&rdquo; in
the Bitcoin blockchain, which is publicly available. Thus, the Bitcoin network provides confirmation against double-spending by memorializing
every transaction in the Bitcoin blockchain, which is publicly accessible and downloaded in part or in whole by all users of the Bitcoin
network software program. Any user may validate, through their Bitcoin wallet or a blockchain explorer, that each transaction in the
Bitcoin network was authorized by the holder of the applicable private key, and Bitcoin network mining software consistent with reference
software requirements validates each such transaction before including it in the Bitcoin blockchain. This cryptographic security ensures
that bitcoin transactions may not generally be counterfeited, although it does not protect against the &ldquo;real world&rdquo; theft
or coercion of use of a Bitcoin user&rsquo;s private key, including the hacking of a Bitcoin user&rsquo;s computer or a service provider&rsquo;s
systems.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">A Bitcoin transaction between
two parties is recorded if included in a valid block added to the Bitcoin blockchain, when that block is accepted as valid through consensus
formation among Bitcoin network participants. Validation of a block is achieved by confirming the cryptographic hash value included in
the block&rsquo;s data and by the block&rsquo;s addition to the longest confirmed Bitcoin blockchain on the Bitcoin network. For a transaction,
inclusion in a block in the Bitcoin blockchain constitutes a &ldquo;confirmation&rdquo; of validity. As each block contains a reference
to the immediately preceding block, additional blocks appended to and incorporated into the Bitcoin blockchain constitute additional
confirmations of the transactions in such prior blocks, and a transaction included in a block for the first time is confirmed once against
double-spending. This layered confirmation process makes changing historical blocks (and reversing transactions) exponentially more difficult
the further back one goes in the Bitcoin blockchain.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">To undo past transactions
in a block recorded on the Bitcoin blockchain, a malicious actor would have to exert tremendous hashrate in re-solving each block in
the Bitcoin blockchain starting with and after the target block and broadcasting all such blocks to the Bitcoin network. The Bitcoin
network is generally programmed to consider the longest Bitcoin blockchain containing solved and valid blocks to be the most accurate
Bitcoin blockchain. In order to undo multiple layers of confirmation and alter the Bitcoin blockchain, a malicious actor must re-solve
all of the old blocks sought to be regenerated and be able to continuously add new blocks to the Bitcoin blockchain at a speed that would
have to outpace that of all of the other miners on the Bitcoin network, who would be continuously solving for and adding new blocks to
the Bitcoin blockchain. Given the size and speed of the Bitcoin network, it is generally agreed that the cost of amassing such computational
power exceeds the profit to be obtained by double-spending or attempting to fabricate prior blocks.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">If a malicious actor is able
to amass ten (10) percent of the Bitcoin network&rsquo;s aggregate hashrate, there is estimated to be a 0.1 percent chance that it would
be able to overcome six (6) confirmations. Therefore, given the difficulty in amassing such hashrate, six (6) confirmations is an often-cited
standard for the validity of transactions. The Trust has adopted a policy whereby a transaction will be deemed confirmed upon this industry
standard of six (6) confirmations (the &ldquo;Confirmation Protocol&rdquo;). As one (1) block is added to the Bitcoin blockchain approximately
every six (6) to twelve (12) minutes, a Bitcoin transaction will be, on average, confirmed using the Confirmation Protocol beyond a reasonable
doubt in approximately one (1) hour. Merchants selling high-value goods and services, as well as bitcoin trading platforms and many experienced
users, are believed to generally use the six (6) confirmations standard. This confirmation system, however, does not mean that merchants
must always wait for multiple confirmations for transactions involving low-value goods and services. As discussed below, the value of
a successful double-spending attack involving a low-value transaction may, and perhaps likely will, be significantly less than the cost
involved in arranging and executing such double-spending attacks. Furthermore, merchants engaging in low-value transactions may then
view the reward of quicker transaction settlements with limited or no Bitcoin blockchain confirmation as greater than the related risk
of not waiting for six (6) confirmations with respect to low-value transactions at points of sale. Conversely, for high-value transactions
that are not time sensitive, additional settlement security can be provided by waiting for more than six (6) confirmations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Bitcoin Mining</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The process by which bitcoin
are created and bitcoin transactions are verified is called &ldquo;mining.&rdquo; To begin mining, a user, or &ldquo;miner,&rdquo; can
download and run a mining &ldquo;client,&rdquo; which, like regular Bitcoin network software programs, turns the user&rsquo;s computer
into a &ldquo;node&rdquo; on the Bitcoin network, and in this case has the ability to validate transactions and add new blocks of transactions
to the Bitcoin blockchain.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Miners, through the use of
the bitcoin software program, engage in a set of prescribed complex mathematical calculations in order to verify transactions and compete
for the right to add a block of verified transactions to the Bitcoin blockchain and thereby confirm bitcoin transactions included in
that block&rsquo;s data. The miner who successfully &ldquo;solves&rdquo; the complex mathematical calculations has the right to add a
block of transactions to the Bitcoin blockchain and is then rewarded by a grant of bitcoin, known as a &ldquo;coinbase,&rdquo; plus any
transaction fees paid for the transactions included in such block.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Confirmed and validated bitcoin
transactions are recorded in blocks added to the Bitcoin blockchain. Each block contains the details of some or all of the most recent
transactions that are not memorialized in prior blocks, as well as a record of the award of bitcoin to the miner who added the new block.
Each unique block can only be solved and added to the Bitcoin blockchain by one miner; therefore, all individual miners and mining pools
on the Bitcoin network must engage in a competitive process of constantly increasing their computing power to improve their likelihood
of solving for new blocks. As more miners join the Bitcoin network and its processing power increases, the Bitcoin network adjusts the
complexity of a block-solving equation to maintain a predetermined pace of adding a new block to the Bitcoin blockchain approximately
every ten minutes.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Mathematically Controlled Supply</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The method for creating new
bitcoin is mathematically controlled in a manner so that the supply of bitcoin grows at a limited rate pursuant to a pre-set schedule.
The number of bitcoin awarded for solving a new block is automatically halved every 210,000 blocks. Thus, the current fixed reward for
solving a new block is 3.125 bitcoin per block; the reward decreased from 6.25 bitcoin to 3.125 bitcoin in April 2024. It is estimated
to halve again in 2028. This deliberately controlled rate of bitcoin creation means that the number of bitcoin in existence will never
exceed twenty-one (21) million and that bitcoin cannot be devalued through excessive production unless the Bitcoin network&rsquo;s source
code (and the underlying protocol for bitcoin issuance) is altered. As of December&nbsp;2024, it was estimated that over 19.8 million
bitcoins were outstanding and the date when the 21 million Bitcoin limitation will be reached is estimated to be the year 2140.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Bitcoin Market and Digital Asset Trading
Platforms</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In addition to using bitcoin
to engage in transactions, investors may purchase and sell bitcoin to speculate as to the value of bitcoin in the bitcoin market, or
as a long-term investment to diversify their portfolio. The value of bitcoin within the market is determined, in part, by (i) the supply
of and demand for bitcoin in the bitcoin market, (ii) market expectations for the expansion of investor interest in bitcoin and the adoption
of bitcoin by users, (iii) the number of merchants that accept bitcoin as a form of payment, and (iv) the volume of private end-user-to-end-user
transactions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Although the value of bitcoin
is determined by the value that two transacting market participants place on bitcoin through their transaction, the most common means
of determining a reference value is by surveying one or more trading platforms where secondary markets for bitcoin exist. The most prominent
digital asset trading platforms are often referred to as &ldquo;exchanges&rdquo;, although they neither report trade information nor
are they regulated in the same way as a national securities exchange. As such, there is some difference in the form, transparency and
reliability of trading data from digital asset trading platforms. Generally speaking, bitcoin data is available from these trading platforms
with publicly disclosed valuations for each executed trade, measured by one or more fiat currencies such as the U.S. dollar or Euro (such
as the USD-BTC Pair) or another digital asset such as ether. OTC dealers or market makers do not typically disclose their trade data.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Currently, there are many
digital asset trading platforms operating worldwide and trading platforms represent a substantial percentage of bitcoin buying and selling
activity, and, therefore, provide large data sets for market valuation of bitcoin. A digital asset trading platform provides investors
with a way to purchase and sell bitcoin, similar to stock exchanges like the New York Stock Exchange or NASDAQ, which provide ways for
investors to buy stocks and bonds in the so-called &ldquo;secondary market.&rdquo; Unlike stock exchanges, which are regulated to monitor
securities trading activity, digital asset trading platforms are largely regulated as money services businesses (or a foreign regulatory
equivalent) and are required to monitor for and detect money-laundering and other illicit financing activities that may take place on
the platform. Digital asset trading platforms operate websites designed to permit investors to open accounts with the trading platform
and then purchase and sell bitcoin.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">As with conventional stock
exchanges, an investor opening a trading account and wishing to transact at a digital asset trading platform must deposit an accepted
government-issued currency into their account, or a previously acquired digital asset. The process of establishing an account with a
digital asset trading platform and trading bitcoin is different from, and should not be confused with, the process of users sending bitcoin
from one bitcoin address to another bitcoin address, such as to pay for goods and services. This latter process is an activity that occurs
wholly within the confines of the Bitcoin network, while the former is an activity that occurs largely on private websites and databases
owned by the trading platform.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Although bitcoin was the
first cryptocurrency, since 2009, the number of digital assets, market participants and companies in the space has increased dramatically.
In addition to bitcoin, other well-known digital assets include ether, bitcoin cash, and litecoin. The digital asset marketplace is still
being defined and evolving, including the practices of exchanges, behavior of investors, and the protocols and prominence of particular
digital assets. Prior to 2017, bitcoin accounted for approximately 85% or more of the total market capitalization of all digital assets.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Authorized Participants and
the Trust have the option of purchasing and selling bitcoin used in Basket transactions either on digital asset trading platforms, in
the OTC markets or in direct bilateral transactions. OTC trading of bitcoin is generally accomplished via bilateral agreements on a principal-to-principal
basis. All risks and issues related to creditworthiness are between the parties directly involved in the transaction.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The bitcoin OTC market demonstrates
flexibility in terms of quotes, price, size, and other factors. The OTC market has no formal structure and no open-outcry meeting place,
and typically involves bilateral agreements on a principal-to-principal basis. Parties engaging in OTC transactions will agree upon a
price &ndash; often via phone, email, or chat &ndash; and then one of the two parties will initiate the transaction. For example, a seller
of bitcoin could initiate the transaction by sending the bitcoin to the buyer&rsquo;s bitcoin address. The buyer would then wire US Dollars
to the seller&rsquo;s bank account. OTC trading tends to occur in large blocks of bitcoin. All risks and issues related to creditworthiness
are between the parties directly involved in the transaction. OTC market participants include institutional entities, such as hedge funds,
family offices, private wealth managers, high-net-worth individuals that trade bitcoin on a proprietary basis, and brokers that offer
two-sided liquidity for bitcoin.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Bitcoin futures contracts
are traded on CME, the Intercontinental Exchange and smaller regulated platforms such as ErisX and LedgerX. Authorized Participants may
utilize bitcoin futures contracts to hedge bitcoin exposure relating to the creation and redemption of Baskets. Since their launch in
2017, bitcoin futures contracts on the CME have seen significant growth in average daily volume traded, open interest, and the number
of large participants. Bitcoin futures contracts on the CME are cash-settled based on the BRR, which shares the same methodology as the
BRRNY.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Market Participants</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Miners</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Miners range from Bitcoin
enthusiasts to professional mining operations that design and build dedicated machines and data centers, but the vast majority of mining
is now undertaken by parties with access to high grade hardware, favorable electric prices, and industrial data centers. In addition,
most mining hashrate is directed by participants in mining pools.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Investment and Speculative Sector</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">This sector includes the
investment and trading activities of both private and professional investors and speculators. These participants range from exchange-traded
products, hedge funds, and day-traders who invest in bitcoin by trading on digital asset trading platforms.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Historically, larger financial
services institutions are publicly reported to have limited involvement in investment and trading in bitcoin; however, this trend appears
to be eroding and more platforms seek to offer exposure to digital assets and more institutional investors seek to deploy capital in
the space. Major financial institutions have cited advisory client demand in adding direct, equity or synthetic means of obtaining digital
asset exposure.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Retail Sector</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The retail sector includes
users transacting in direct peer-to-peer Bitcoin transactions through the direct sending of bitcoin over the Bitcoin network. The retail
sector also includes transactions between consumers paying for goods or services from commercial or service businesses through direct
transactions or third-party service providers such as BitPay, which provides a merchant platform for instantaneous transactions whereby
the consumer sends bitcoin to BitPay, which then provides either the bitcoin or the cash value thereof to the commercial or service business
utilizing the platform. PayPal, Square and Shopify are examples of traditional merchant payment processors or merchant platforms that
have also added Bitcoin payment options for their merchant customers. Payment processing through the Bitcoin network may reduce the transaction
cost for merchants, relative to the costs paid for credit card transaction processing, and eliminates the potential for consumer chargebacks.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Service Sector</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">This sector includes companies
that provide a variety of services including the buying, selling, payment processing and storing of bitcoin. Coinbase and Fidelity are
examples of multi-service financial institutions that provide wallets that store bitcoin for users and also serve as a retail or exchange
gateway whereby users can purchase bitcoin for fiat currency. BitPay is an example of Bitcoin payment processors that allow merchants
to accept bitcoin as payment. As the Bitcoin network continues to grow in acceptance, it is anticipated that service providers will expand
the currently available range of services and that additional parties will enter the service sector for the Bitcoin network.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Government Oversight, Though Increasing,
Remains Limited</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="background-color: white">As
digital assets have grown in both popularity and market size, the U.S. Congress and a number of U.S. federal and state agencies (including
FinCEN, SEC, CFTC, the Financial Industry Regulatory Authority (&ldquo;FINRA&rdquo;), the Consumer Financial Protection Bureau (&ldquo;CFPB&rdquo;),
the Department of Justice, the Department of Homeland Security, the Federal Bureau of Investigation, the IRS and state financial institution
and securities regulators) have been examining the operations of digital asset networks, digital asset users and the digital asset markets,
with particular focus on the extent to which digital assets can be used to launder the proceeds of illegal activities or fund criminal
or terrorist enterprises, and the safety and soundness of exchanges or other service providers that hold or have custody of digital assets
for users. Many of these state and federal agencies have issued consumer advisories regarding the risks posed to investors by digital
assets. President Trump&rsquo;s January 23, 2025 Executive Order, titled &ldquo;Strengthening American Leadership in Digital Financial
Technology, aimed to reorient the federal governments approach to digital assets. The Executive Order emphasized the importance of the
digital asset industry in innovation and economic development, and outlined policies to support the growth and use of digital assets,
blockchain technology and related technologies. President Trump&rsquo;s order also revoked former President Biden&rsquo;s March 9, 2022
Executive Order, titled, &ldquo;Responsible Development of Digital Assets&rdquo; and the U.S. Department of Treasury&rsquo;s July 7,
2022 &ldquo;Framework for International Engagement of Digital Assets&rdquo; and all policies, directives and guidance issued pursuant
to those items produced by the previous administration.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">On January 21, 2025, the
SEC&rsquo;s acting Chairman Mark T. Uyeda announced the SEC Crypto Task Force. The task force has an objective of developing a comprehensive
and clear regulatory framework for crypto assets. The task force also seeks to establish a practical and achievable process for registration
of digital assets and design clearly defined disclosure requirements and frameworks.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="background-color: white">In
addition, the previous chair of the SEC has stated that the SEC has authority under existing laws to regulate the digital asset sector
and the SEC, U.S. state securities regulators and several foreign governments have issued warnings and instituted legal proceedings in
which they argue that certain digital assets may be classified as securities and that both those digital assets and any related initial
coin offerings are subject to securities regulations. The outcomes of these proceedings, as well as ongoing and future regulatory actions,
may alter, perhaps to a materially adverse extent, the nature of an investment in the Shares or the ability of the Trust to continue
to operate. Additionally, U.S. state and federal, and foreign, regulators and legislatures have taken action against virtual currency
businesses or enacted restrictive regimes in response to adverse publicity arising from hacks, consumer harm, or criminal activity stemming
from virtual currency activity.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="background-color: white">The
CFTC has regulatory jurisdiction over the bitcoin futures markets. In addition, because the CFTC has determined that bitcoin is a &ldquo;commodity&rdquo;
under the CEA and the rules thereunder, it has jurisdiction to prosecute fraud and manipulation in the cash, or spot, market for bitcoin.
The CFTC has pursued enforcement actions relating to fraud and manipulation involving bitcoin and bitcoin markets. Beyond instances of
fraud or manipulation, the CFTC generally does not oversee cash or spot market exchanges or transactions involving bitcoin that do not
use collateral, leverage, or financing.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="background-color: white">In
December 2017, the CME, a designated contract market (&ldquo;DCM&rdquo;) registered with the CFTC, launched new contracts for bitcoin
futures products. DCMs are boards of trades (or exchanges) that operate under the regulatory oversight of the CFTC, pursuant to Section
5 of the Commodity Exchange Act. To obtain and maintain designation as a DCM, an exchange must comply on an initial and ongoing basis
with twenty-three Core Principles established in Section 5(d) of the CEA. Among other things, DCMs are required to establish self-regulatory
programs designed to </FONT>enforce their rules, prevent market manipulation and customer and market abuses, and ensure the recording
and safe storage of trade information. The CFTC engaged in a &ldquo;heightened review&rdquo; of the self-certification of bitcoin futures,
which required DCMs to enter direct or indirect information sharing agreements with spot market platforms to allow access to trade and
trader data; to monitor data from cash markets with respect to price settlements and other bitcoin prices more broadly, and to identify
anomalies and disproportionate moves in the cash markets compared to the futures markets; to engage in inquiries, including at the trade
settlement level when necessary; and to agree to regular coordination with CFTC surveillance staff on trade activities, including providing
the CFTC surveillance team with trade settlement data upon request.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="background-color: white">The
SEC has also recently proposed amendments to the custody rules under Rule 406(4)-2 of the Investment Advisers Act. The proposed rule
changes would amend the definition of a &ldquo;qualified custodian&rdquo; under Rule&nbsp;206(4)-2(d)(6) and expand the current custody
rule under Rule 406(4)-2 to cover digital assets and related advisory activities. If enacted as proposed, these rules would likely impose
additional regulatory requirements with respect to the custody and storage of digital assets and could lead to additional regulatory
oversight of the digital asset ecosystem more broadly. In addition, it is possible the market turbulence in late 2022, which led to the
failure of FTX Trading Ltd. (&ldquo;FTX&rdquo;) in November 2022 and the resulting market turmoil, could lead to increased SEC, CFTC,
or other governmental investigations, enforcement, and/or other regulatory activity across the digital asset ecosystem.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="background-color: white">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="background-color: white">Various
foreign jurisdictions have adopted and may continue in the near future to adopt laws, regulations or directives that affect a digital
asset network, the digital asset markets, and their users, particularly digital asset exchanges and service providers that fall within
such jurisdictions&rsquo; regulatory scope. For example:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">China has
                                            made transacting in cryptocurrencies illegal for Chinese citizens in mainland China, and
                                            additional restrictions may follow. China has banned initial coin offerings and there have
                                            been reports that Chinese regulators have taken action to shut down a number of China-based
                                            digital asset exchanges.</TD>
</TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">South Korea
                                            determined to amend its Financial Information Act in March 2020 to require virtual asset
                                            service providers to register and comply with its AML and counter-terrorism funding framework.
                                            These measures also provide the government with the authority to close digital asset exchanges
                                            that do not comply with specified processes. South Korea has also banned initial coin offerings.</TD>
</TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">The Reserve
                                            Bank of India in April 2018 banned the entities it regulates from providing services to any
                                            individuals or business entities dealing with or selling digital assets. In March 2020, this
                                            ban was overturned in the Indian Supreme Court, although the Reserve Bank of India is currently
                                            challenging this ruling.</TD>
</TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">The United
                                            Kingdom&rsquo;s Financial Conduct Authority published final rules in October 2020 banning
                                            the sale of derivatives and exchange-traded notes that reference certain types of digital
                                            assets, contending that they are &ldquo;ill-suited&rdquo; to retail investors citing extreme
                                            volatility, valuation challenges and association with financial crime. A new bill, the Financial
                                            Services and Markets Bill (the &ldquo;FSMB&rdquo;), has made its way through the House of
                                            Commons and is expected to work through the House of Lords and become law in 2023. The FSMB
                                            would bring digital asset activities within the scope of existing laws governing financial
                                            institutions, markets and assets.</TD>
</TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">The European
                                            Council of the European Union approved the text of the Markets in Crypto-Assets Regulation
                                            (&ldquo;MiCA&rdquo;) in October 2022, establishing a regulatory framework for digital asset
                                            services across the European Union. MiCA is intended to serve as a comprehensive regulation
                                            of digital asset markets and imposes various obligations on digital asset issuers and service
                                            providers. The main aims of MiCA are industry regulation, consumer protection, prevention
                                            of market abuse and upholding the integrity of digital asset markets. MiCA was ratified by
                                            the European Parliament on April 20, 2023, and went into full effect at the end of 2024.</TD>
</TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">There remains
                                            significant uncertainty regarding foreign governments&rsquo; future actions with respect
                                            to the regulation of digital assets and digital asset exchanges. Such laws, regulations or
                                            directives may conflict with those of the United States and may negatively impact the acceptance
                                            of bitcoin by users, merchants and service providers outside the United States and may therefore
                                            impede the growth or sustainability of the bitcoin ecosystem in the United States and globally,
                                            or otherwise negatively affect the value of bitcoin held by the Trust.</TD>
</TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The effect of any future
regulatory change on the Trust or the bitcoin held by the Trust is impossible to predict, but such change could be substantial and adverse
to the Trust and the value of the Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>


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<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center"><A NAME="a_004"></A>THE
TRUST AND BITCOIN PRICES</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Overview of the Trust</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trust&rsquo;s investment
objective is to seek to provide exposure to the value of bitcoin held by the Trust, less the expenses of the Trust&rsquo;s operations.
In seeking to achieve its investment objective, the Trust holds bitcoin and values its net assets and the Shares daily based on the BRRNY.
Bitcoin will be the only digital asset held by the Trust.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Sponsor believes that
the Trust provides a cost-efficient way for investors to implement strategic and tactical asset allocation strategies that use bitcoin
by investing in the Shares rather than purchasing, holding and trading bitcoin directly. The latter alternative would require an investor
to acquire bitcoin by selecting a digital asset trading platform and opening an account or arranging a private transaction, and initiating
a fiat transaction to initiate or settle such acquisition. An investor would then also be required to custody such bitcoin by selecting
a retail or institutional custodial platform or establishing a personal computer or hardware security module based system capable of
transacting directly on the blockchain, and incurring the risk associated with cybersecurity and maintaining a private key that is irrecoverable
if lost, among other difficulties.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Purchase and Sale of Bitcoin</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">When the Trust conducts Cash
Creations or Cash Redemptions, it is responsible for purchasing and selling bitcoin. The Trust may also be required to sell bitcoin to
pay certain extraordinary, non-recurring expenses that are not assumed by the Sponsor. Under such circumstances, the Sponsor, on behalf
of the Trust, typically seeks to buy and sell bitcoin at a price as close to the BRRNY as practical. When choosing between potential
counterparties, the Sponsor may consider factors other than simply the most favorable price. However, the most favorable price is the
predominant factor in determining the counterparty with which the Sponsor effectuates the contemplated transaction. Other factors that
the Sponsor may consider include the size of the proposed order, as well as a counterparty&rsquo;s execution capabilities, reliability
and responsiveness.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trust&rsquo;s purchase
and sale of bitcoin may be conducted pursuant to two models: (i) the &ldquo;Trust-Directed Trade Model&rdquo;; or the (ii) &ldquo;Agent
Execution Model.&rdquo; The Trust intends to utilize the Trust-Directed Trade Model for all purchases and sales of bitcoin and will only
utilize the Agent Execution Model in the event that no Bitcoin Trading Counterparty is able or willing to effectuate the Trust&rsquo;s
purchase or sale of bitcoin.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">As of the date of this prospectus,
whether utilizing either the Trust-Directed Trade Model or the Agent Execution Model, an Authorized Participant will deliver only cash
to create Shares and will receive only cash when redeeming Shares. Currently, Authorized Participants will not directly or indirectly
purchase, hold, deliver, or receive bitcoin as part of the creation or redemption process or otherwise direct the Trust or a third-party
with respect to purchasing, holding, delivering, or receiving bitcoin as part of the creation or redemption process. Nevertheless, subject
to the Exchange receiving the In-Kind Regulatory Approval, the Trust may also create and redeem Baskets through in-kind orders, pursuant
to which an Authorized Participant, or its Authorized Participant Designee, would deposit bitcoin directly with the Trust or receive
bitcoin directly from the Trust. The timing of the In-Kind Regulatory Approval is unknown, and there is no guarantee that the Exchange
will receive the In-Kind Regulatory Approval at any point in the future. If the Exchange receives the In-Kind Regulatory Approval and
if the Sponsor chooses to allow in-kind creations and redemptions, the Trust will notify Shareholders in a Prospectus supplement, in
the Trust&rsquo;s periodic reports and on the Trust&rsquo;s website.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Trust-Directed Trade Model</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Under the Trust-Directed
Trade Model, the Sponsor, on behalf of the Trust, is responsible for acquiring bitcoin from a bitcoin trading counterparty that has been
approved by the Sponsor (each, a Bitcoin Trading Counterparty). There is no contractual relationship between the Trust, the Sponsor or
the Bitcoin Trading Counterparties and all transactions will be done on an arms-length basis. While it is expected and intended that
the Bitcoin Trading Counterparties are unaffiliated third-parties it is possible that a Bitcoin Trading Counterparty may on any given
day be or become considered an affiliate of the Trust if it acquired Shares in an amount that would cause it to become considered an
affiliate of the Trust, as the Shares are publicly traded. Bitcoin Trading Counterparties are not required to have a custody account
with the Bitcoin Custodian. When seeking to purchase or sell bitcoin on behalf of the Trust, the Sponsor will typically seek to buy and
sell bitcoin at a price as close to the BRRNY as practical from any of the approved Bitcoin Trading Counterparties. Upon notification
that the Trust needs to purchase or sell bitcoin, the Sponsor will obtain indicative prices from multiple Bitcoin Trading Counterparties
at which they would be willing to execute the contemplated transaction. The Sponsor then determines the Bitcoin Trading Counterparty
with which it wishes to transact and records the rationale for that determination. Once agreed upon, the transaction will generally occur
on an &ldquo;over-the-counter&rdquo; basis. Transfers of bitcoin to and from the Trust Bitcoin Account to the Bitcoin Trading Counterparty
are &ldquo;on-chain&rdquo; transactions represented on the Bitcoin blockchain. Transfer fees with respect to this on-chain transfer of
bitcoin will be paid by the Bitcoin Custodian.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Sponsor maintains a process
for approving and monitoring Bitcoin Trading Counterparties, which is overseen by the Bitwise Portfolio Oversight Committee, which is
responsible for investment activities and related risk, as well as counterparty risk. All Bitcoin Trading Counterparties must be approved
by the Bitwise Portfolio Oversight Committee before the Sponsor, on behalf of the Trust, will engage in transactions with the entity.
The Bitwise Portfolio Oversight Committee continuously reviews all approved Bitcoin Trading Counterparties at its quarterly meetings
and will reject the approval of any previously approved Bitcoin Trading Counterparty if new information arises regarding the entity that
puts the appropriateness of that entity as an approved bitcoin trading counterparty in doubt. In considering which Bitcoin Trading Counterparties
to approve, the Bitwise Portfolio Oversight Committee has instituted rigorous policies and procedures that include, but are not limited
to, (i) a review of all sanctioned entities, including but not limited to, the various categories of sanctioned persons and entities
identified by the Office of Foreign Assets Control; (ii) a review of all publicly available information regarding the entity, including
a review of all information that has been filed pursuant to the requirements of U.S. or non-U.S. regulators, with a particular emphasis
on the identity of the entity&rsquo;s owners, disclosure events and reports of disciplinary action; and (iii) a review of the entity&rsquo;s
policies and procedures regarding various topics, including, but not limited to, anti-money laundering and &ldquo;know-your-customer&rdquo;
requirements, trade surveillance, auditing and testing and cybersecurity capabilities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">As of May 23, 2025, Coinbase
Inc., B2C2 USA Inc., Cumberland DRW LLC, FalconX (d/b/a Solios, Inc.), Wintermute Trading Ltd, Flow Traders B.V., JSCT, LLC, and Nonco
LLC have been approved as Bitcoin Trading Counterparties. JSCT, LLC is an affiliate of Jane Street Capital, LLC, which is an Authorized
Participant to the Trust.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Agent Execution Model</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In the event that every Bitcoin
Trading Counterparty is either unable or unwilling to effectuate the Trust&rsquo;s purchase or sale of bitcoin, the Sponsor, on behalf
of the Trust, may execute the trade using the Agent Execution Model.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Under the Agent Execution
Model, the Prime Execution Agent, an affiliate of the Bitcoin Custodian, acting in an agency capacity, conducts bitcoin purchases and
sales on behalf of the Trust with third parties through its Coinbase Prime service pursuant to the Prime Execution Agreement. To avoid
having to pre-fund purchases or sales of bitcoin, the Trust may borrow bitcoin or cash as Trade Credit from the Trade Credit Lender on
a short-term basis pursuant to the Trade Financing Agreement. As the Trust intends to conduct nearly all purchases and sales of bitcoin
pursuant to the Trust-Directed Trade Model, under normal conditions, it expects to keep very little or no bitcoin in the Trading Balance
with the Prime Execution Agent.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In the case of a purchase
of bitcoin, the extension of Trade Credits allows the Trust to purchase bitcoin through the Prime Execution Agent on the date the Trust
wishes to effectuate the transaction (for instance, on the evening of day when an order to create Shares is received), with such bitcoin
being deposited in the Trust&rsquo;s Trading Balance. On the day following a trade when Trade Credits have been utilized, the Trust uses
cash (for instance, from the Authorized Participant who submitted the creation order) to repay the Trade Credits borrowed from the Trade
Credit Lender. The bitcoin purchased by the Trust is then swept from the Trust&rsquo;s Trading Balance with the Prime Execution Agent
to the Trust Bitcoin Account with the Bitcoin Custodian pursuant to a regular end-of-day sweep process. Transfers of bitcoin into the
Trust&rsquo;s Trading Balance are off-chain transactions and transfers from the Trust&rsquo;s Trading Balance to the Trust Bitcoin Account
are &ldquo;on-chain&rdquo; transactions represented on the Bitcoin blockchain. Any financing fee owed to the Trade Credit Lender is deemed
part of trade execution costs and embedded in the trade price for each transaction.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In the case of a sale of
bitcoin, the Trust enters into a transaction to sell bitcoin through the Prime Execution Agent for cash. The Trust&rsquo;s Trading Balance
with the Prime Execution Agent may not be funded with bitcoin on the date the Trust wishes to effectuate the transaction (for instance,
on the evening a day when an order to redeem Shares is received) because the bitcoin remains in the Trust Bitcoin Account with the Bitcoin
Custodian. In those circumstances the Trust may borrow Trade Credits in the form of bitcoin from the Trade Credit Lender, which allows
the Trust to sell bitcoin through the Prime Execution Agent at the desired time, and the cash proceeds are deposited in the Trust&rsquo;s
Trading Balance with the Prime Execution Agent. On the business day following the trade, the Trust will use the bitcoin that is moved
from the Trust Bitcoin Account with the Bitcoin Custodian to the Trading Balance with the Prime Execution Agent to repay the Trade Credits
borrowed from the Trade Credit Lender. Transfers of bitcoin from the Trust Bitcoin Account to the Trust&rsquo;s Trading Balance are &ldquo;on-chain&rdquo;
transactions represented on the Bitcoin blockchain. Any financing fee owed to the Trade Credit Lender is deemed part of trade execution
costs and embedded in the trade price for each transaction.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The CME CF Bitcoin Reference Rate &ndash;
New York Variant</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Bitcoin is a globally traded
commodity with prices ostensibly quoted on over 200 trading platforms with substantial, if fragmented, liquidity; nevertheless, there
has not appeared to be a single unified reported price for bitcoin on such trading platforms, and the reported differences on such trading
platforms between what bitcoin costs, and what an investor can subsequently sell their bitcoin holdings, range from a few cents to, at
certain points, hundreds of dollars. In designing the Trust, the Sponsor considered how to accurately price the Trust&rsquo;s NAV, such
that said NAV would be reflective of the globally integrated price of bitcoin.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The net assets of the Trust
and its Shares are valued on a daily basis with reference to the CME CF Bitcoin Reference Rate &ndash; New York Variant, the BRRNY, a
standardized reference rate published by CF Benchmarks Ltd., the Benchmark Provider, that is designed to reflect the performance of bitcoin
in U.S. dollars. The BRRNY was created to facilitate financial products based on bitcoin. It serves as a once-a-day benchmark rate of
the U.S. dollar price of bitcoin (USD/BTC), calculated as of 4:00 p.m. ET. The BRRNY aggregates the trade flow of several major bitcoin
trading venues, during an observation window between 3:00 p.m. and 4:00 p.m. ET into the U.S. dollar price of one bitcoin at 4:00 p.m.
ET. The BRRNY currently uses substantially the same methodology as the CME CF Bitcoin Reference Rate, the BRR, including utilizing the
same eight bitcoin exchanges, which is the underlying rate to determine settlement of CME bitcoin futures contracts, except that the
BRRNY is calculated as of 4:00 p.m. ET, whereas the BRR is calculated as of 4:00 p.m. London time. The BRRNY, which was introduced on
February 28, 2022, is based on materially the same methodology (except calculation time) as the BRR, which was first introduced on November&nbsp;14,
2016.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The BRRNY is designed based
on the IOSCO Principals for Financial Benchmarks. The Trust uses the BRRNY to calculate its NAV, which is the aggregate U.S. dollar value
of bitcoins in the Trust, based on the BRRNY, less its liabilities and expenses. &ldquo;NAV per Share&rdquo; is calculated by dividing
NAV by the number of Shares currently outstanding. NAV and NAV per Share are not measures calculated in accordance with GAAP. NAV is
not intended to be a substitute for the Trust&rsquo;s Principal Market NAV calculated in accordance with GAAP, and NAV per Share is not
intended to be a substitute for the Trust&rsquo;s Principal Market NAV per Share calculated in accordance with GAAP.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Sponsor, in its sole
discretion, may cause the Trust to price its portfolio based upon an index, benchmark or standard other than the BRRNY at any time, with
prior notice to the Shareholders, if investment conditions change or the Sponsor believes that another index, benchmark or standard better
aligns with the Trust&rsquo;s investment objective and strategy. The Sponsor may make this decision for a number of reasons, including,
but not limited to, a determination that the BRRNY price of bitcoin differs materially from the global market price of bitcoin and/or
that third parties are able to purchase and sell bitcoin on public or private markets not included among the Constituent Platforms, and
such transactions may take place at prices materially higher or lower than the BRRNY price. The Sponsor, however, is under no obligation
whatsoever to make such changes in any circumstance. In the event that the Sponsor intends to establish the Trust&rsquo;s NAV by reference
to an index, benchmark or standard other than the BRRNY, it will provide Shareholders with notice in a prospectus supplement and/or through
a current report on Form 8-K or in the Trust&rsquo;s annual or quarterly reports.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">BRRNY Methodology</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The BRRNY is calculated based
on the &ldquo;Relevant Transactions&rdquo; (as defined below) of all of its constituent bitcoin trading venues (the &ldquo;Constituent
Platforms&rdquo;) as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">All Relevant
                                            Transactions are added to a joint list, recording the time of execution, trade price and
                                            size for each transaction.</TD>
</TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>


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<P STYLE="font-size: 10pt; margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">The list
                                            is partitioned by timestamp into 12 equally-sized time intervals of 5 (five) minute length.</TD>
</TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">For each
                                            partition separately, the volume-weighted median trade price is calculated from the trade
                                            prices and sizes of all Relevant Transactions, i.e., across all Constituent Platforms. A
                                            volume-weighted median differs from a standard median in that a weighting factor, in this
                                            case trade size, is factored into the calculation.</TD>
</TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">The BRRNY
                                            is then determined by the equally-weighted average of the volume medians of all partitions.</TD>
</TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">As of March 31, 2025, the
Constituent Platforms included in the BRRNY are Bitstamp, Bullish Exchange, Coinbase, Crypto.com, Gemini, itBit, Kraken and LMAX Digital.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify"><I>Bitstamp</I>:
                                            A U.K.-based exchange registered as an MSB with FinCEN and licensed as a virtual currency
                                            business under the NYDFS BitLicense as well as money transmitter in various U.S. states.
                                            It is also regulated as a Payments Institution within the European Union and is registered
                                            as a Crypto Asset business with the UK FCA.</TD>
</TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify"><I>Bullish
                                            Exchange</I>: a Gibraltar based platform operated by Bullish (GI) Limited and regulated by
                                            the Gibraltar Financial Services Commission (&ldquo;GFSC&rdquo;) as a DLT.</TD>
</TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify"><I>Coinbase</I>:
                                            A U.S.-based exchange registered as an MSB with FinCEN and licensed as a virtual currency
                                            business under the NYDFS BitLicense as well as a money transmitter in various U.S. states.
                                            Subsidiaries operating internationally are further regulated as an e-money provider (Republic
                                            of Ireland, Central Bank of Ireland) and Major Payment Institution (Singapore, Monetary Authority
                                            of Singapore).</TD>
</TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify"><I>Crypto.com:
                                            </I>A cryptocurrency trading platform headquartered in Singapore. It provides a platform
                                            for trading, investing, and using cryptocurrencies. In North America, Crypto.com is registered
                                            as a Money Services Business with FINTRAC in Canada and FinCEN in the United States. It also
                                            holds Money Transmitter Licenses across various U.S. states. In Europe, the company received
                                            approval from the UK&rsquo;s Financial Conduct Authority in August 2022 and operates under
                                            the Electronic Money Institution license in several European Economic Area countries.</TD>
</TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify"><I>Gemini</I>:
                                            A U.S.-based exchange that is licensed as a virtual currency business under the NYDFS BitLicense.
                                            It is also registered with FinCEN as an MSB and is licensed as a money transmitter in various
                                            U.S. states. It is also registered with the FCA as a Crypto Asset Business.</TD>
</TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify"><I>itBit</I>:
                                            A U.S.-based exchange that is licensed as a virtual currency business under the NYDFS BitLicense.
                                            It is also registered FinCEN as an MSB and is licensed as a money transmitter in various
                                            U.S. states.</TD>
</TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify"><I>Kraken</I>:
                                            A U.S.-based exchange that is registered as an MSB with FinCEN in various U.S. states, Kraken
                                            is registered with the FCA as a Crypto Asset Business and is authorized by the Central Bank
                                            of Ireland as a Virtual Asset Service Provider (&ldquo;VASP&rdquo;). Kraken also holds a
                                            variety of other licenses and regulatory approvals, including from the Canadian Securities
                                            Administrators (&ldquo;CSA&rdquo;).</TD>
</TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify"><I>LMAX
                                            Digital</I>: A Gibraltar based exchange regulated by the GFSC as a DLT provider for execution
                                            and custody services. LMAX Digital does not hold a BitLicense and is part of LMAX Group,
                                            a U.K.-based operator of a FCA regulated Multilateral Trading Facility and Broker-Dealer.</TD>
</TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">An oversight function is
implemented by the Benchmark Provider in seeking to ensure that the BRRNY is administered through the Benchmark Provider&rsquo;s codified
policies for index integrity. The BRRNY is administered through the Benchmark Provider&rsquo;s codified policies for index integrity,
including a conflicts of interest policy, a control framework, an accountability framework, and an input data policy. It is also subject
to the UK BMR regulations, compliance with which regulations has been subject to a Limited Assurance Audit under the ISAE 3000 standard
as of September 12, 2022, which is publicly available.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The BRRNY is subject to oversight
by the CME CF Oversight Committee. The CME CF Oversight Committee shall be comprised of at least five members, including at least: (i)
two who are representatives of CME (&ldquo;CME Members&rdquo;); (ii) one who is a representative of CF Benchmarks Ltd.; and (iii) two
who bring expertise and industry knowledge relating to benchmark determination, issuance and operations. The CME CF Oversight Committee
meets no less frequently than quarterly. The CME CF Oversight Committee&rsquo;s Founding Charter and quarterly meeting minutes are publicly
available.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In the event that there are
errors or irregularities in the calculation and publication of the BRRNY, including delayed, missing data or erroneous data, the Benchmark
Provider will apply the &ldquo;Contingency Calculation Rules&rdquo; as it relates to the BRRNY that are set forth on the Benchmark Provider&rsquo;s
website. Such rules dictate how the Benchmark Provider will calculate the BRRNY, depending upon the type of error or irregularity. For
instance, in the event that no Relevant Transaction occurs on a Constituent Platform on a given day, or one or more Relevant Transactions
do occur on the Constituent Platform but cannot be retrieved by the Benchmark Provider, the Constituent Platform is disregarded in the
calculation of the BRRNY for that day. In addition, all Relevant Transactions are subject to automated screening for erroneous data.
Relevant Transactions that have been flagged as erroneous pursuant to the automated screening and the Contingency Calculation Rules are
disregarded in the calculation of the BRRNY for a given day. If, for whatever reason, the Benchmark Provider is unable to calculate and
publish the BRRNY by the stipulated dissemination time, it shall publish a notification on its website informing BRRNY users, including
the Trust, the calculation and publication has been delayed.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Since the creation of the
BRRNY, there have been several changes to Constituent Platforms comprising the BRRNY, most recently in March 2025.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">A trading venue is eligible
as a &ldquo;Constituent Platform&rdquo; in any of the CME CF Cryptocurrency Pricing Products if it offers a market that facilitates the
spot trading of the relevant cryptocurrency base asset against the corresponding quote asset, including markets where the quote asset
is made fungible with Accepted Assets (the &ldquo;Relevant Pair&rdquo;) and makes trade data and order data available through an Automatic
Programming Interface (&ldquo;API&rdquo;) with sufficient reliability, detail and timeliness. The CME CF Oversight Committee considers
a trading venue to offer sufficiently reliable, detailed and timely trade data and order data through an API when: (i) the API for the
&ldquo;Constituent Platform&rdquo; does not fall or become unavailable to a degree that impacts the integrity of the BRRNY given the
frequency of calculation; (ii) the data published is at the resolution required so that the benchmark can be calculated, with the frequency
and dissemination precision required; and (iii) the data is broadcast and available for retrieval at the required frequency (and not
negatively impacted by latency) to allow the methodologies to be applied as intended.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Furthermore, it must, in
the opinion of the CME CF Oversight Committee, fulfill the following criteria:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">1.</TD><TD STYLE="text-align: justify">The venue&rsquo;s Relevant Pair
                                            spot trading volume for an index must meet the minimum thresholds as detailed below for it
                                            to be admitted as a Constituent Platform: The average daily volume the venue would have contributed
                                            during the observation window for the Reference Rate of the Relevant Pair exceeds 3% for
                                            two consecutive calendar quarters.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">2.</TD><TD STYLE="text-align: justify">The venue has policies to ensure
                                            fair and transparent market conditions at all times and has processes in place to identify
                                            and impede illegal, unfair or manipulative trading practices.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">3.</TD><TD STYLE="text-align: justify">The venue does not impose undue
                                            barriers to entry or restrictions on market participants, and utilizing the venue does not
                                            expose market participants to undue credit risk, operational risk, legal risk or other risks.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">4.</TD><TD STYLE="text-align: justify">The venue complies with applicable
                                            law and regulation, including, but not limited to, capital markets regulations, money transmission
                                            regulations, client money custody regulations, KYC and AML regulations.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">5.</TD><TD STYLE="text-align: justify">The venue cooperates with inquiries
                                            and investigations of regulators and the Administrator upon request and must execute data
                                            sharing agreements with CME Group. Once admitted, a Constituent Platform must demonstrate
                                            that it continues to fulfill criteria 2 to 5 inclusive. Should the average daily contribution
                                            of a Constituent Platform fall below 3% for any Reference Rate, then the continued inclusion
                                            of the venue as a Constituent Platform to the Relevant Pair shall be assessed by the CME
                                            CF Oversight Committee.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Additionally, a trading venue
may be nominated for addition to the list of Constituent Platforms by any member of the public, exchange or the Oversight Committee.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">BRRNY data and the description
of the BRRNY are based on information made publicly available by the Benchmark Provider on its website at https://www.cfbenchmarks.com.
None of the information on the Benchmark Provider&rsquo;s website is incorporated by reference into this Prospectus.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The eight Constituent Platforms
that contribute transaction data to the BRRNY with the aggregate volumes traded on their respective BTC-USD markets over the preceding
four calendar quarters are listed in the table below:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD COLSPAN="33" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Aggregate Trading Volume of BTC-USD
    Markets of BRRNY Constituent Platforms**</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="white-space: nowrap; font-weight: bold; text-align: left; border-bottom: Black 1.5pt solid">Period</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Bitstamp</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; border-bottom: Black 1.5pt solid">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Bullish</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; border-bottom: Black 1.5pt solid">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Coinbase</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; border-bottom: Black 1.5pt solid">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Crypto.com*</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; border-bottom: Black 1.5pt solid">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Gemini</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; border-bottom: Black 1.5pt solid">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">itBit</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; border-bottom: Black 1.5pt solid">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Kraken</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; border-bottom: Black 1.5pt solid">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">LMAX</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="white-space: nowrap; width: 20%; text-align: left; padding-bottom: 1.5pt">2024 Q2</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 7%; text-align: right">12,745,481,874</TD><TD STYLE="width: 1%; padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 7%; text-align: right"><FONT STYLE="font-size: 10pt">N/A</FONT></TD><TD STYLE="width: 1%; padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 7%; text-align: right">81,871,129,923</TD><TD STYLE="width: 1%; padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 7%; text-align: right"><FONT STYLE="font-size: 10pt">N/A</FONT></TD><TD STYLE="width: 1%; padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 7%; text-align: right">4,460,975,011</TD><TD STYLE="width: 1%; padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 7%; text-align: right">1,103,291,739</TD><TD STYLE="width: 1%; padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 7%; text-align: right">15,942,525,422</TD><TD STYLE="width: 1%; padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 7%; text-align: right">11,280,822,955</TD><TD STYLE="width: 1%; padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="white-space: nowrap; text-align: left; padding-bottom: 1.5pt">2024 Q3</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">11,788,598,149</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">N/A</FONT></TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">58,463,571,026</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">N/A</FONT></TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">3,343,922,945</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">742,961,240</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">10,944,408,968</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">7,674,154,200</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="white-space: nowrap; text-align: left; padding-bottom: 1.5pt">2024 Q4</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">19,041,512,220</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">171,943,974</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">106,998,253,547</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">N/A</FONT></TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">7,762,251,106</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">1,196,003,201</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">19,039,509,976</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">15,679,729,421</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="white-space: nowrap; text-align: left; padding-bottom: 1.5pt">2025 Q1</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">14,477,591,026</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">15,621,692,912</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">94,635,582,496</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">437,228,895</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">7,306,366,610</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">1,101,275,922</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">17,525,260,799</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">9,804,590,131</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  </TABLE>


<P STYLE="margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left">*</TD><TD STYLE="text-align: justify">Crypto.com became
                                            a BRRNY Constituent Platform on March 31, 2025 and its aggregate volume is based on a single
                                            day.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left">**</TD><TD STYLE="text-align: justify">Source: CF Benchmarks
                                            Ltd.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The market share for BTC-USD
trading of the eight Constituent Platforms over the past four calendar quarters is shown in the table below:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD COLSPAN="33" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Bitcoin Trading Platform Market
    Share of BTC-USD Trading*</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">Period</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Bitstamp</TD><TD STYLE="font-weight: bold">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Bullish</TD><TD STYLE="font-weight: bold">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Coinbase</TD><TD STYLE="font-weight: bold">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Crypto.com</TD><TD STYLE="font-weight: bold">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Gemini</TD><TD STYLE="font-weight: bold">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">itBit</TD><TD STYLE="font-weight: bold">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Kraken</TD><TD STYLE="font-weight: bold">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">LMAX</TD><TD STYLE="font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 20%; text-align: left">2024 Q2</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 7%; text-align: right">7.97</TD><TD STYLE="width: 1%; text-align: left">%</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 7%; text-align: right"><FONT STYLE="font-size: 10pt">N/A</FONT></TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 7%; text-align: right">51.17</TD><TD STYLE="width: 1%; text-align: left">%</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 7%; text-align: right"><FONT STYLE="font-size: 10pt">N/A</FONT></TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 7%; text-align: right">2.79</TD><TD STYLE="width: 1%; text-align: left">%</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 7%; text-align: right">0.69</TD><TD STYLE="width: 1%; text-align: left">%</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 7%; text-align: right">7.05</TD><TD STYLE="width: 1%; text-align: left">%</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 7%; text-align: right">7.05</TD><TD STYLE="width: 1%; text-align: left">%</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">2024 Q3</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">7.26</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">N/A</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">36.01</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">N/A</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2.06</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0.46</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4.73</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4.73</TD><TD STYLE="text-align: left">%</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">2024 Q4</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5.33</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0.05</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">29.95</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">N/A</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2.17</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0.33</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4.39</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4.39</TD><TD STYLE="text-align: left">%</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">2025 Q1</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4.67</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5.04</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">30.55</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0.14</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2.36</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0.36</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3.17</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3.17</TD><TD STYLE="text-align: left">%</TD></TR>
  </TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left">*</TD><TD STYLE="text-align: justify">Source: CF Benchmarks
                                            Ltd.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>CF BENCHMARKS LTD. DATA
IS USED UNDER LICENSE AS A SOURCE OF INFORMATION FOR THE TRUST&rsquo;S PRODUCTS. CF BENCHMARKS LTD., ITS AGENTS AND LICENSORS HAVE NO
OTHER CONNECTION TO THE TRUST&rsquo;S PRODUCTS AND SERVICES AND DOES NOT SPONSOR, ENDORSE, RECOMMEND OR PROMOTE ANY OF THE TRUST&rsquo;S
PRODUCTS OR SERVICES. CF BENCHMARKS LTD., ITS AGENTS AND LICENSORS HAVE NO OBLIGATION OR LIABILITY IN CONNECTION WITH THE TRUST&rsquo;S
PRODUCTS AND SERVICES. CF BENCHMARKS LTD., ITS AGENTS AND LICENSORS DO NOT GUARANTEE THE ACCURACY AND/OR THE COMPLETENESS OF ANY INDEX
LICENSED TO THE TRUST AND SHALL NOT HAVE ANY LIABILITY FOR ANY ERRORS, OMISSIONS, OR INTERRUPTIONS THEREIN.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Trust Structure</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trust is a statutory
trust formed under the Delaware Statutory Trust Act, and the Trust Agreement constitutes the &ldquo;governing instrument&rdquo; of the
Trust under the laws of the State of Delaware relating to statutory trusts. The Trust holds bitcoin and is expected from time to time
to issue Baskets in exchange for deposits of bitcoin or cash and to distribute bitcoin or cash in connection with redemptions of Baskets.
The Trust&rsquo;s investment objective is to seek to provide exposure to the value of bitcoin held by the Trust, less the expenses of
the Trust&rsquo;s operations and other liabilities. In seeking to achieve its investment objective, the Trust holds bitcoin and establishes
its NAV by reference to the BRRNY.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Sponsor believes the
Trust&rsquo;s is a straight-forward solution to seek its investment objective. Besides cash received in connection with Cash Creation
Orders of Baskets, the Trust&rsquo;s sole asset is expected to be bitcoin held with the Bitcoin Custodian. The Sponsor believes that
the BRRNY is a representative value for the USD-BTC price of bitcoin, based on the methodology administered by the Benchmark Provider.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trust processes pays
its only ordinary expense (the Sponsor Fee) in bitcoin. The Trust will only sell bitcoin (1) in connection with the redemption of Baskets
for cash (2) on an as-needed basis to pay Trust expenses not assumed by the Sponsor, (3) in the event the Trust terminates and liquidates
its assets, or (4) as otherwise required by law or regulation. This restriction provides protections against potential attempts by bad
actors to manipulate the operation of the Trust based on how the Trust calculates its NAV.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Investors may obtain on a
24-hour basis bitcoin pricing information based on the spot and Bitcoin Futures price for one bitcoin from various financial information
service providers. Current spot prices are also generally available with bid/ask spreads from digital asset trading platforms, including
the Constituent Platforms. Market prices for the Shares are available from a variety of sources including brokerage firms, information
websites and other information service providers. The NAV of the Trust is published by the Sponsor at the Trust&rsquo;s website (www.BITBetf.com)
on each day that the Exchange is open for regular trading and is posted on the Trust&rsquo;s website.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center"><A NAME="a_005"></A>Calculation
of NAV</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Under normal circumstances,
the Trust&rsquo;s only asset will be bitcoin and, under limited circumstances, cash. The Trust&rsquo;s bitcoin are carried, for financial
statement purposes, at fair value, as required by the U.S. generally accepted accounting principles (&ldquo;GAAP&rdquo;). The Trust&rsquo;s
NAV is determined by the Administrator once each Exchange trading day at 4:00 p.m. (New York time), or as soon thereafter as practicable.
The NAV for a normal trading day will be released after 4:00 p.m. Eastern Standard Time (&ldquo;EST&rdquo;). Trading during the core
trading session on the Exchange typically closes at 4:00 p.m. EST. However, NAVs are not officially struck until later in the day (often
by 5:30 p.m. and almost always by 8:00 p.m.). The pause between 4:00 p.m. and 5:30 p.m. (or later) provides an opportunity for the Sponsor
to algorithmically detect, flag, investigate, and correct unusual pricing should it occur.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Administrator calculates
the NAV of the Trust by multiplying the number of bitcoin held by the Trust by the BRRNY for such day, adding any additional receivables
and subtracting the accrued but unpaid expenses and liabilities of the Trust. The Trust&rsquo;s NAV per Share is calculated by dividing
the Trust&rsquo;s NAV by the number of Shares then outstanding. The Administrator determines the price of the Trust&rsquo;s bitcoin by
reference to the BRRNY, which is published between 4:00 p.m. and 4:30 p.m. (New York time) on every calendar day. The methodology used
to calculate the BRRNY price to value bitcoin in determining the NAV of the Trust may not be deemed consistent with GAAP. To the extent
the methodology used to calculate the BRRNY is deemed inconsistent with GAAP, the Trust will utilize an alternative GAAP-consistent pricing
source for purposes of the Trust&rsquo;s periodic financial statements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Sponsor has the exclusive
authority to determine the NAV of the Trust. The Sponsor has delegated to the Administrator the responsibility to calculate the NAV of
the Trust and the NAV, based on a pricing source selected by the Sponsor (the BRRNY). The Administrator determines the NAV of the Trust
each business day. In determining the NAV of the Trust, the Administrator values the bitcoin held by the Trust based on the BRRNY, unless
otherwise determined by the Sponsor in its sole discretion. If the BRRNY is not available or the Sponsor in its sole discretion determines
that the BRRNY should not be used, the Trust&rsquo;s holdings may be fair valued in accordance with the policy approved by the Sponsor.
The Sponsor does not anticipate that the need to &ldquo;fair value&rdquo; bitcoin will be a common occurrence.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The ITV is calculated by
using the prior day&rsquo;s closing NAV per Share of the Trust as a base and updating that value throughout the trading day to reflect
changes in the most recently reported price level of the CME Bitcoin Real Time Price. The ITV disseminated during the Exchange core trading
session hours should not be viewed as an actual real time update of the NAV, because per Share NAV is calculated only once at the end
of each trading day based upon the relevant end of day values of the Trust&rsquo;s investments. The ITV is disseminated on a per Share
basis every 15 seconds during regular Exchange core trading session hours of 9:30 a.m. EST to 4:00 p.m. EST. The Exchange will disseminate
the ITV value through the facilities of CTA/CQ High Speed Lines that allow for high-speed data transmission. In addition, the ITV is
published on the Exchange&rsquo;s website and is available through on-line information services such as Bloomberg and Reuters. The ITV
(which is based upon the CME Bitcoin Real Time Price) may differ from the NAV (which is based upon the BRRNY) due to differences in how
the CME Bitcoin Real Time Price and BRRNY are calculated. While the BRRNY is calculated as described in the section above entitled &ldquo;The
Trust and Bitcoin Prices &ndash; The CME CF Bitcoin Reference Rate &ndash; New York Variant,&rdquo; the CME Bitcoin Real Time Price is
calculated once per second, in real time by utilizing the Order Books of bitcoin &ndash; U.S. dollar trading pairs operated by all Constituent
Platforms. An &ldquo;Order Book&rdquo; is a list of buy and sell orders with associated limit prices and sizes that have not yet been
matched, that is reported and disseminated by CF Benchmarks Ltd., as the CME Bitcoin Real Time Price calculation agent. The Order Books
are aggregated into one consolidated order book by the CME Bitcoin Real Time Price calculation agent and the bid-price volume curve,
ask price-volume curve, mid-price volume curve and mid-spread volume curve are calculated. The mid-price volume curve is the average
of the bid price-volume curve (which maps transaction volume to the marginal price per cryptocurrency unit a seller is required to accept
in order to sell this volume to the consolidated order book) and the ask price-volume curve (which maps a transaction volume to the marginal
price per cryptocurrency unit a buyer is required to pay in order to purchase this volume from the consolidated order book). The mid
price-volume curve is weighted by the normalized probability density of the exponential distribution up to the utilized depth (utilized
depth being calculated as the maximum cumulative volume for which the mid spread-volume curve does not exceed a certain percentage deviation
from the mid price). The CME Bitcoin Real Time Price is then given by the sum of the weighted mid price-volume curve obtained in the
previous step.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Dissemination of the ITV
provides additional information that is not otherwise available to the public and may be useful to investors and market professionals
in connection with the trading of the Shares on the Exchange. Investors and market professionals will be able throughout the trading
day to compare the market price of the Trust and the ITV. If the market price of the Shares diverges significantly from the ITV, market
professionals will have an incentive to execute arbitrage trades. For example, if the Trust appears to be trading at a discount compared
to the ITV, a market professional could buy the Shares on the Exchange and sell short futures contracts. Such arbitrage trades can tighten
the tracking between the market price of the Trust and the ITV and thus can be beneficial to all market participants.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Sponsor reserves the
right to adjust the Share price of the Trust in the future to maintain convenient trading ranges for investors. Any adjustments would
be accomplished through stock splits or reverse stock splits. Such splits would decrease (in the case of a split) or increase (in the
case of a reverse split) the proportionate NAV per Share, but would have no effect on the net assets of the Trust or the proportionate
voting rights of Shareholders or the value of any Shareholder&rsquo;s investment.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trust&rsquo;s periodic
financial statements may not utilize the net asset value of the Trust determined by reference to the Index to the extent the methodology
used to calculate the BRRNY is deemed not to be consistent with GAAP. The Trust&rsquo;s periodic financial statements will be prepared
in accordance with the Financial Accounting Standards Board (&ldquo;FASB&rdquo;) Accounting Standards Codification Topic 820, &ldquo;Fair
Value Measurements and Disclosures&rdquo; (&ldquo;ASC Topic 820&rdquo;) and utilize an exchange-traded price from the Trust&rsquo;s principal
market for bitcoin on the Trust&rsquo;s financial statement measurement date. The Sponsor will determine in its sole discretion the valuation
sources and policies used to prepare the Trust&rsquo;s financial statements in accordance with GAAP. The Trust intends to engage a third-party
vendor to obtain a price from a principal market for bitcoin, which will be determined and designated by such third-party vendor daily
based on its consideration of several exchange characteristics, including oversight, and the volume and frequency of trades. Under GAAP,
such a price is expected to be deemed a Level 1 input in accordance with the ASC Topic 820 because it is expected to be a quoted price
in active markets for identical assets or liabilities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">To determine which market
is the Trust&rsquo;s principal market (or in the absence of a principal market, the most advantageous market) for purposes of calculating
the Trust&rsquo;s financial statements, the Trust follows ASC 820-10, which outlines the application of fair value accounting. ASC 820-10
determines fair value to be the price that would be received for bitcoin in a current sale, which assumes an orderly transaction between
market participants on the measurement date. ASC 820-10 requires the Trust to assume that bitcoin is sold in its principal market to
market participants or, in the absence of a principal market, the most advantageous market. Market participants are defined as buyers
and sellers in the principal or most advantageous market that are independent, knowledgeable, and willing and able to transact. The Trust
may transact through Bitcoin Trading Counterparties, in multiple markets, and its application of ASC 820-10 reflects this fact. The Trust
anticipates that, while multiple venues and types of markets will be available to the Bitcoin Trading Counterparties from whom the Sponsor
acquires or disposes of the Trust&rsquo;s bitcoin, the principal market in each scenario is determined by looking at the market-based
level of volume and bitcoin trading activity. Bitcoin Trading Counterparties may transact in a Brokered Market, a Dealer Market, Principal-to-Principal
Markets and Exchange Markets, each as defined in the FASB ASC Master Glossary. Based on information reasonably available to the Trust,
Exchange Markets have the greatest volume and level of activity for the asset. The Trust therefore looks to accessible Exchange Markets
as opposed to the Brokered Market, Dealer Market and Principal-to-Principal Markets to determine its principal market. As a result of
the aforementioned analysis, an Exchange Market has been selected as the Trust&rsquo;s principal market. 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.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The process that the Sponsor
has developed for identifying a principal market, as prescribed in ASC 820-10, which outlines the application of fair value accounting.
The process begins by identifying publicly available, well established and reputable bitcoin trading venues (Exchange Markets, as defined
in the FASB ASC Master Glossary), which are selected by the Sponsor and its affiliates in their sole discretion. Those markets include
Binance, Bitfinex, Bitflyer, Bitstamp, Coinbase Pro, Crypto.com, Gemini, HitBTC, Huobi, Kraken, KuCoin, OKEx, Poloniex. The Sponsor then,
through a service provider, calculates on each valuation period, the highest volume venue during the 60 minute period prior to 4:00 ET
for bitcoin. The Sponsor then identifies that market as the principal market for bitcoin during that period, and uses the price for bitcoin
from that venue at 4:00 ET as the principal market price.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center"><A NAME="a_006"></A>Additional
Information About The trust</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Trust</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trust is a Delaware statutory
trust, formed pursuant to the Delaware Statutory Trust Act. The Trust continuously issues common shares representing units of undivided
beneficial ownership of the Trust that may be purchased and sold on the Exchange. The Trust operates pursuant to the Amended and Restated
Trust Agreement dated as of December 27, 2023. Delaware Trust Company, a Delaware trust company, is the Delaware trustee of the Trust.
The Trust is managed and controlled by the Sponsor. The Sponsor is a limited liability company formed in the state of Delaware on June
4, 2018.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trust is passively managed
and does not pursue active management investment strategies. Additionally, the Sponsor does not actively manage the bitcoin held by the
Trust. This means that the Sponsor does not sell bitcoin at times when its price is high or acquire bitcoin at low prices in the expectation
of future price increases. It also means that the Sponsor does not make use of any of the hedging techniques available to professional
bitcoin investors to attempt to reduce the risks of losses resulting from price decreases. The bitcoin held by the Trust will only be
delivered to pay its only ordinary expense (the Sponsor Fee) in bitcoin. The Trust will only sell bitcoin (1) in connection with Cash
Redemptions, (2) on an as-needed basis to pay Trust expenses not assumed by the Sponsor, (3)&nbsp;in the event the Trust terminates and
liquidates its assets, or (4) as otherwise required by law or regulation. The delivery or sale of bitcoin to pay fees and expenses by
the Trust is a taxable event to Shareholders. See &ldquo;United States Federal Income Tax Consequences.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trust is not registered
as an investment company under the Investment Company Act and the Sponsor believes the Trust is not required to register under such act.
The Trust does not hold or trade in commodity futures contracts, &ldquo;commodity interests&rdquo; or any other instruments regulated
by the Commodity Exchange Act, as administered by the CFTC or National Futures Association. The Sponsor believes that the Trust is not
a commodity pool for purposes of the Commodity Exchange Act, and that neither the Sponsor nor the Trustee are subject to regulation as
a commodity pool operator or a commodity trading adviser in connection with the operation of the Trust.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The number of outstanding
Shares is expected to increase and decrease from time to time as a result of the creation and redemption of Baskets.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trust has no fixed termination
date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Trust&rsquo;s Fees and Expenses</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trust pays a unitary
Sponsor Fee of 0.20% per annum of the Trust&rsquo;s bitcoin holdings.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">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
during which 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&rsquo;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&rsquo;s monthly fee and out-of-pocket expenses, the fees
of the Trust&rsquo;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 paid the costs of the Trust&rsquo;s organization.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">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 (as defined below) and any IR Asset (as defined
below)), 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.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Sponsor, from time to
time, may temporarily waive all or a portion of the Sponsor Fee in its sole discretion. To the extent not already disclosed in the prospectus,
the Sponsor may notify Shareholders of its intent to commence, or cease, waiving the Sponsor Fee on the Trust&rsquo;s website, in a prospectus
supplement, through a current report on Form 8-K and/or in the Trust&rsquo;s annual or quarterly reports.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In addition, the Sponsor
may, in its sole discretion, agree to rebate all or a portion of the Sponsor Fee attributable to Shares held by certain institutional
investors or entities. Any such rebate will be subject to negotiation and written agreement between the Sponsor and the investor/entity
on a case-by-case basis. The Sponsor is under no obligation to provide any rebates of the Sponsor Fee. Neither the Trust nor the Trustee
will be a party to any Sponsor Fee rebate arrangements negotiated by the Sponsor.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Administrator and/or
the Sponsor will direct the Bitcoin Custodian to transfer bitcoin from the Trust Bitcoin Account to the Sponsor Bitcoin Account to pay
the Sponsor Fee and any other Trust expenses not assumed by the Sponsor. To pay for expenses not assumed by the Sponsor that are denominated
in U.S. dollars, the Sponsor, on behalf of the Trust, may sell the Trust&rsquo;s bitcoin as necessary to pay such expenses. The Sponsor,
on behalf of the Trust, will typically seek to buy and sell bitcoin at a price as close to the BRRNY as practical. Such sales will be
undertaken pursuant to the Trust-Directed Trade Model unless no Bitcoin Trading Counterparty is willing or able to effectuate the trade.
Transfers of bitcoin from the Trust Bitcoin Account to the Sponsor Bitcoin Account, and from the Sponsor Bitcoin Account to the Bitcoin
Trading Counterparty are &ldquo;on-chain&rdquo; transactions represented on the Bitcoin blockchain. Transfer fees with respect to this
on-chain transfer of bitcoin will be paid by the Bitcoin Custodian. The cash proceeds of the sale will be sent to the Sponsor, which
will use such proceeds to pay the expenses. Any remaining cash will be distributed back to the Cash Custodian. To the extent that the
Trust must utilize the Agent Execution Model to undertake bitcoin sales to pay for expenses not assumed by the Sponsor, the Prime Execution
Agent, acting in an agency capacity, would conduct the sale on behalf of the Trust with third parties through its Coinbase Prime service
pursuant to the Prime Execution Agreement. Transfers of bitcoin from the Trust Bitcoin Account to the Trust&rsquo;s Trading Balance in
connection with such sales are &ldquo;on-chain&rdquo; transactions represented on the Bitcoin blockchain. Each delivery or sale of bitcoin
by the Trust to pay the Sponsor Fee or other Trust expenses will be a taxable event to Shareholders. See &ldquo;United States Federal
Income Tax Consequences.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trust does not engage
in any activity designed to derive a profit from changes in the price of bitcoin. Bitcoin not needed to redeem Baskets, or to cover the
Sponsor Fee and Trust expenses not assumed by the Sponsor, is held by the Bitcoin Custodian or Prime Execution Agent. As a result of
the recurring deliveries of bitcoin necessary to pay the Sponsor Fee and potential sales of bitcoin to pay in cash the Trust expenses
not assumed by the Sponsor, the NAV of the Trust and, correspondingly, the amount of bitcoin represented by each Share will decrease
proportionately over the life of the Trust. New deposits of bitcoin, purchased with the cash received in connection with Cash Creations
of Baskets, will not reverse this trend.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Distributions</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Pursuant to the terms of
the Trust Agreement, the Trust may make distributions on the Shares in cash or in-kind.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">If the Trust is required
to terminate and liquidate, or the Sponsor determines in accordance with the terms of the Trust Agreement that it is appropriate to terminate
and liquidate the Trust, the Sponsor will sell the Trust&rsquo;s bitcoin and will distribute to the Shareholders any amounts of the cash
proceeds of the liquidation remaining after the satisfaction of all outstanding liabilities of the Trust and the establishment of reserves
for applicable taxes, other governmental charges and contingent or future liabilities as the Sponsor will determine. Under no circumstances
will the Trust distribute bitcoin to Shareholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">See &ldquo;Additional Information
About the Trust&mdash;Termination of the Trust.&rdquo; Shareholders of record on the record date fixed by the Transfer Agent for a distribution
will be entitled to receive their pro rata portions of any distribution.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Incidental Rights and IR Assets</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">From time to time, the Trust
may come into possession of rights incident to its ownership of bitcoin, which permit the Trust to acquire, or otherwise establish dominion
and control over, other digital assets. These rights are generally expected to be Forked Assets that arise in connection with hard forks
in the Bitcoin blockchain, airdrops offered to holders of bitcoins and digital assets arising from other similar events without any action
of the Trust or of the Sponsor or Trustee on behalf of the Trust. These rights are referred to as &ldquo;Incidental Rights&rdquo; and
any digital assets acquired through Incidental Rights are referred to as &ldquo;IR Assets.&rdquo; Pursuant to the Trust Agreement, the
Trust has explicitly disclaimed all Incidental Rights and IR Assets. Such assets are not considered assets of the Trust at any point
in time and will not be taken into account for purposes of determining the Trust&rsquo;s NAV and the NAV per Share.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Pursuant to the Trust Agreement,
to the extent that the Trust involuntarily receives such assets in a Trust wallet, it will, as soon as practicable, and, if possible,
immediately, distribute such assets to the Sponsor. At such time, the Incidental Right(s) and/or IR Asset(s) will be the property of
the Sponsor. Once acquired, the Sponsor, subject a reasonable, good faith determination, may take any lawful action necessary or desirable
in connection with its acquisition of such assets. In the event that the Sponsor decides to sell the Incidental Right(s) and/or IR Asset(s),
it will seek to do so for cash. This may be a sale of the Incidental Right(s) and/or IR Asset(s) directly in exchange for cash, or in
exchange for another digital asset which may subsequently be exchanged for cash. The Sponsor would then contribute that cash back to
the Trust, which in turn would distribute the cash to the Depository Trust Company (&ldquo;DTC&rdquo;) to be distributed to Shareholders
in proportion to the number of Shares owned.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Although the Sponsor intends,
if possible, to arrange for the sale of any Incidental Right(s) and/or IR Asset(s) it receives from the Trust and subsequently contribute
such cash proceeds back to the Trust, it is under no obligation to do so. There are likely to be operational, tax, securities law, regulatory,
legal and practical issues that significantly limit, or prevent entirely, the Sponsor&rsquo;s ability to realize a benefit from any such
Incidental Right(s) and/or IR Asset(s). The Sponsor may choose to evaluate any such fork, airdrop or similar occurrence on a case-by-case
basis in consultation with its legal advisors, tax consultants and custodian. In determining whether to attempt to acquire and/or retain
any Incidental Right(s) and/or IR Asset(s), the Sponsor expects to take into consideration whatever factors it deems relevant in its
discretion, including, without limitation:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">the availability
                                            of a safe and practical way to custody the Incidental Right or IR Asset;</TD>
</TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">the costs
                                            or operational burden of taking possession and/or maintaining ownership of the Incidental
                                            Right or IR Asset and whether such costs or burden exceed the benefits of owning such Incidental
                                            Rights or IR Asset or the proceeds that would be realized from a sale thereof;</TD>
</TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">whether
                                            there are any legal or regulatory restrictions on or risks or consequences arising from,
                                            or tax implications with respect to, the acceptance, retention, ownership, sale, transfer,
                                            abandonment, distribution or disposal or disposition of the Incidental Right or IR Asset,
                                            regardless of whether there is a safe and practical way to custody and secure such Incidental
                                            Right or IR Asset;</TD>
</TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">the existence
                                            of a suitable market into which the Incidental Right or IR Asset may be sold; and</TD>
</TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">whether
                                            claiming, owning, selling, or otherwise taking any action in respect of Incidental Rights
                                            or IR Asset may create legal or regulatory risks, liability, or burdens of any kind for the
                                            Sponsor (including, without limitation, if such Incidental Rights or IR Asset is, or may
                                            be, a security under federal securities laws or a commodity interest under the Commodity
                                            Exchange Act).</TD>
</TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Sponsor is under no obligation
to realize any economic benefit from any Incidental Right(s) and/or IR Asset(s) it receives from the Trust. The Sponsor may instead determine,
in its sole discretion, to abandon such Incidental Rights or IR Assets permanently and irrevocably for no consideration. Before the Trust
claims any Incidental Right(s) and/or IR Asset(s) resulting from a fork or airdrop in the Bitcoin network (other than bitcoin), the Trust
would need to seek and obtain certain regulatory approvals, including an amendment to the Trust&rsquo;s registration statement of which
this prospectus is a part and approval of an application by the Exchange to amend its listing rules.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Termination of the Trust</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Sponsor will notify Shareholders
at least 30 days before the date for termination of the Trust Agreement and the Trust if any of the following occurs:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">Shares are
                                            delisted from the Exchange and are not approved for listing on another national securities
                                            exchange within five business days of their delisting;</TD>
</TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">180 days
                                            have elapsed since the Trustee notified the Sponsor of the Trustee&rsquo;s election to resign
                                            or since the Sponsor removed the Trustee, and a successor trustee has not been appointed
                                            and accepted its appointment;</TD>
</TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">The SEC
                                            determines that the Trust is an investment company under the Investment Company Act, and
                                            the Sponsor has made the determination that termination of the Trust is advisable;</TD>
</TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">The CFTC
                                            determines that the Trust is a commodity pool under the Commodity Exchange Act, and the Sponsor
                                            has made the determination that termination of the Trust is advisable;</TD>
</TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">The Trust
                                            is determined to be a &ldquo;money services business&rdquo; under the regulations promulgated
                                            by FinCEN under the authority of the Bank Secrecy Act of 1970 and is required to comply with
                                            certain FinCEN regulations thereunder or is determined to be a &ldquo;money transmitter&rdquo;
                                            (or equivalent designation) under the laws of any state in which the Trust operates and is
                                            required to seek licensing or otherwise comply with state licensing requirements, and the
                                            Sponsor has made the determination that termination of the Trust is advisable;</TD>
</TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">A U.S. regulator
                                            requires the Trust to shut down or forces the Trust to liquidate its bitcoin;</TD>
</TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">Any ongoing
                                            event exists that either prevents the Trust from making or makes impractical the Trust&rsquo;s
                                            reasonable efforts to make a fair determination of the price of bitcoin for purposes of determining
                                            the NAV of the Trust;</TD>
</TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">The Sponsor
                                            determines that the aggregate net assets of the Trust in relation to the operating expenses
                                            of the Trust make it unreasonable or imprudent to continue the business of the Trust;</TD>
</TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">The Trust
                                            fails to qualify for treatment, or ceases to be treated, as a &ldquo;grantor trust&rdquo;
                                            under the Code or any comparable provision of the laws of any State or other jurisdiction
                                            where that treatment is sought, and the Sponsor determines that, because of that tax treatment
                                            or change in tax treatment, termination of the Trust is advisable;</TD>
</TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">60 days
                                            have elapsed since DTC or another depository has ceased to act as depository with respect
                                            to the Shares, and the Sponsor has not identified another depository that is willing to act
                                            in such capacity;</TD>
</TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">The Trustee
                                            elects to terminate the Trust after the Sponsor is conclusively deemed to have resigned effective
                                            immediately as a result of the Sponsor being adjudged bankrupt or insolvent, or a receiver
                                            of the Sponsor or of its property being appointed, or a trustee or liquidator or any public
                                            officer taking charge or control of the Sponsor or of its property or affairs for the purpose
                                            of rehabilitation, conservation or liquidation and a successor sponsor has not been appointed;
                                            or</TD>
</TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">The Sponsor
                                            elects to terminate the Trust after the Trustee, Administrator or Bitcoin Custodian (or any
                                            successor trustee, administrator or custodian) resigns or otherwise ceases to be the trustee,
                                            administrator or custodian of the Trust, as applicable, and no replacement trustee, administrator
                                            and/or custodian acceptable to the Sponsor is engaged.</TD>
</TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In addition, the Trust may
be dissolved at any time for any reason by the Sponsor in its sole discretion. In respect of termination events that rely on Sponsor
determinations to terminate the Trust (<I>e.g.</I>, if the SEC determines that the Trust is an investment company under the Investment
Company Act; the CFTC determines that the Trust is a commodity pool under the Commodity Exchange Act; the Trust is determined to be a
money transmitter under the regulations promulgated by FinCEN; the Trust fails to qualify for treatment, or ceases to be treated, as
a grantor trust for U.S. federal income tax purposes; or, following a resignation by a trustee or custodian, the Sponsor determines that
no replacement is acceptable to it), the Sponsor may consider, without limitation, the profitability to the Sponsor and other service
providers of the operation of the Trust, any obstacles or costs relating to the operation or regulatory compliance of the Trust relating
to the determination&rsquo;s triggering event, and the ability to market the Trust to investors. To the extent that the Sponsor determines
to continue operation of the Trust following a determination&rsquo;s triggering event, the Trust will be required to alter its operations
to comply with the triggering event. In the instance of a determination that the Trust is an investment company, the Trust and Sponsor
would have to comply with the regulations and disclosure and reporting requirements applicable to investment companies and investment
advisers. In the instance of a determination that the Trust is a commodity pool, the Trust and the Sponsor would have to comply with
regulations and disclosure and reporting requirements applicable to commodity pools and commodity pool operators or commodity trading
advisers. In the event that the Trust is determined to be a money transmitter, the Trust and the Sponsor will have to comply with applicable
federal and state registration and regulatory requirements for money transmitters and/or money service businesses. In the event that
the Trust ceases to qualify for treatment as a grantor trust for U.S. federal tax purposes, the Trust will be required to alter its disclosure
and tax reporting procedures and may no longer be able to operate or to rely on pass-through tax treatment. In each such case and in
the case of the Sponsor&rsquo;s determination as to whether a potential successor trustee or custodian is acceptable to it, the Sponsor
will not be liable to anyone for its determination of whether to continue or to terminate the Trust.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Upon the dissolution of the
Trust, the Sponsor (or in the event there is no Sponsor, such person (the &ldquo;Liquidating Trustee&rdquo;) as the majority of the Shareholders
may propose and approve and who agrees to serve hereunder) shall take full charge of the Trust Property. Any Liquidating Trustee so appointed
shall have and may exercise, without further authorization or approval of any of the parties hereto, all of the powers conferred upon
the Sponsor under the terms of this Trust Agreement, subject to all of the applicable limitations, contractual and otherwise, upon the
exercise of such powers, and provided that the Liquidating Trustee shall not have general liability for the acts, omissions, obligations
and expenses of the Trust. Thereafter, in accordance with Section 3808(e) of the DTSA, the affairs of the Trust shall be wound up and
all bitcoin owned by the Trust shall be liquidated as promptly as is consistent with obtaining the fair value thereof and in such a manner
so as to effectuate orderly sales and a minimal market impact. The Liquidating Trustee may thereafter hold the net proceeds of any such
sale, together with any other cash then held by it under this Trust Agreement, uninvested and without liability for interest, for the
pro rata benefit of Shareholders that had not theretofore been redeemed. The Liquidating Trustee shall not be liable for or responsible
in any way for depreciation or loss incurred by reason of any sale or sales made in accordance with the provisions of this Section 8.01.
The Liquidating Trustee may suspend its sales of bitcoin upon the occurrence of unusual or unforeseen circumstances, including, but not
limited to, a suspension in trading of bitcoin or similar market event. Upon receipt of proceeds from the sale of the last bitcoin held
hereunder, all proceeds shall be applied and distributed in the following order of priority:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">1.</TD><TD STYLE="text-align: justify">pay to Sponsor from the Trust an
                                            amount equal to the sum of (1)&nbsp;any compensation due it for extraordinary or other services,
                                            (2)&nbsp;any advances made but not yet repaid and (3)&nbsp;reimbursement of any other disbursements
                                            as provided herein;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">2.</TD><TD STYLE="text-align: justify">deduct from the Trust any amounts
                                            that the Liquidating Trustee, in its sole discretion, shall deem necessary or appropriate
                                            to pay on behalf of the Trust any applicable taxes or other governmental charges that may
                                            be payable by the Trust and any other contingent or future liabilities of the Trust; and</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">3.</TD><TD STYLE="text-align: justify">distribute each Shareholder&rsquo;s
                                            interest in the remaining assets of the Trust. Such distribution shall consist of cash. Under
                                            no circumstances will the Trust distribute bitcoin to Shareholders.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Following the dissolution
and windup of the Trust, including distribution of the assets of the Trust, the Trust shall terminate and the Sponsor or the Liquidating
Trustee, as the case may be, shall instruct the Trustee to execute and cause such certificate of cancellation of the Certificate of Trust
to be filed in accordance with the DTSA at the expense of the Sponsor or the Liquidating Trustee, as the case may be. Notwithstanding
anything to the contrary contained in this Trust Agreement, the existence of the Trust as a separate legal entity shall continue until
the filing of such certificate of cancellation. Upon the termination of the Trust, the Sponsor will be discharged from all obligations
under the Trust Agreement except for its certain obligations that survive termination of the Trust Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Amendments</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trust Agreement can be
amended by the Sponsor in its sole discretion and without the Shareholders&rsquo; consent by making an amendment, a Trust Agreement supplemental
thereto, or an amended and restated trust agreement. Any such restatement, amendment and/or supplement to the Trust Agreement will be
effective on such date as designated by the Sponsor in its sole discretion. However, any amendment to the Trust Agreement that affects
the duties, liabilities, rights or protections of the Trustee will require the Trustee&rsquo;s prior written consent, which it may grant
or withhold in its sole discretion. Every Shareholder, at the time any amendment so becomes effective, will be deemed, by continuing
to hold any Shares or an interest therein, to consent and agree to such amendment and to be bound by the Trust Agreement as amended thereby.
In no event will any amendment impair the right of Authorized Participants to surrender Baskets and receive therefor the bitcoin Baskets
represented thereby (less fees in connection with the surrender of Shares and any applicable taxes or other governmental charges), except
in order to comply with mandatory provisions of applicable law.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center"><A NAME="a_007"></A>The
Trust&rsquo;s Service Providers</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Sponsor</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Bitwise Investment Advisers,
LLC, as 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 does not exercise day-to-day oversight over the Trustee,
the Bitcoin Custodian, the Administrator, the Transfer Agent or Benchmark Provider. The Sponsor develops a marketing plan for the Trust,
prepares marketing materials regarding the Shares and exercises the marketing plan of the Trust on an ongoing basis.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The principal office of the
Sponsor is 250 Montgomery Street, Suite 200, San Francisco, CA 94104.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Officers of the Sponsor</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The following is a biographical
summary of the business experience of each of the officers, directors and other key employees of the Sponsor:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><I>Hunter Horsley</I> is
the Chief Executive Officer of Bitwise Asset Management, Inc., the parent of the Sponsor, and has served in such role since October 2016.
He serves as President and Treasurer of the Sponsor. Prior to Bitwise, Mr. Horsley was a product manager at Facebook and Instagram leading
efforts in monetization from 2015 to 2016. He graduated from the Wharton School at the University of Pennsylvania with a Bachelor of
Science in Economics in 2015. Mr. Horsley took two years off from school from 2011 to 2013 to be on the founding team of a technology
company called Lore (formerly known as CourseKit) to assist in the development of an online learning tool incorporating social networking
features. Lore raised over $6 million in equity, grew to 20 employees, and was sold to Noodle Education, Inc. in 2013.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><I>Paul &ldquo;Teddy&rdquo;
Fusaro</I> is the President of Bitwise Asset Management and has served in such capacity since January 2021. Prior to joining Bitwise
in April 2018, Mr. Fusaro was Senior Vice President and Head of Portfolio Management and Capital Markets at IndexIQ, the exchange traded
fund unit of New York Life Investment Management, a firm with over $550 billion in AUM. In this capacity he oversaw portfolio management,
trading, and operations for a suite of alternative strategy exchange-traded funds, mutual funds, and separately managed accounts. Prior
to that, from 2009 to 2013, Mr. Fusaro was Vice President of Portfolio Management and co-head of Trading and Operations at Direxion Investments,
a $13 billion alternative exchange-traded fund manager. Earlier in his career, Mr. Fusaro spent time in both equity derivatives and credit
derivatives at Goldman Sachs &amp; Co. Mr. Fusaro is a graduate of Providence College.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><I>Katherine Dowling</I>
is the General Counsel and Chief Compliance Officer of Bitwise Asset Management and has served in such capacity since March 2021. She
serves as the General Counsel, CCO and Vice President of the Sponsor. Prior to Bitwise, Ms. Dowling was the General Counsel and Chief
Compliance Officer for True Capital Management from 2019 to 2021. Before that, Ms. Dowling was a General Partner, as well as Chief Operating
Officer and Chief Compliance Officer of Luminate Capital Partners, from 2015 to 2018. Prior to 2015, Ms. Dowling spent over ten years
as an Assistant U.S. Attorney, most recently in the Economic Crimes Unit of the U.S. Attorney&rsquo;s Office for the Northern District
of California. Ms. Dowling is an Echols Scholar graduate of the University of Virginia and a graduate of Harvard Law School.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The following is a biographical
summary of the business experience of certain key officers of Bitwise Asset Management, the parent of the Sponsor:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><I>Matthew &ldquo;Matt&rdquo;
Hougan</I> is the Chief Investment Officer of Bitwise Asset Management and has served in such capacity since October 2020 after joining
Bitwise in February 2018. Prior to Bitwise, Mr. Hougan was the Chief Executive Officer of Inside ETFs and Managing Director of Global
Finance at Informa PLC, a FTSE 100 company. Before that, he was Chief Executive Officer of ETF.com, a venture-backed start-up that was
sold in three separate transactions, with the data business sold to FactSet in 2015, the Events business sold to Informa in 2015, and
the Media business sold to BATS Global Markets in early 2016. Mr. Hougan was also the editor for nine years of the Journal of Indexes.
Mr. Hougan is a three-time member of the Barron&rsquo;s ETF Roundtable and co-author of the CFA (Chartered Financial Analyst) Institute&rsquo;s
monograph on exchange-traded funds. Mr. Hougan is a graduate of Bowdoin College.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><I>Hong Kim</I> is the Chief
Technology Officer of Bitwise Asset Management and has served in such capacity since Bitwise&rsquo;s inception. Prior to Bitwise, Mr.
Kim worked in cybersecurity for the South Korean Military. He later worked on Google&rsquo;s backend infrastructure for Drive. Mr. Kim
attended the University of Pennsylvania where he graduated with a Bachelor of Science in Computer Science.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Trustee</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Delaware Trust Company, a
Delaware trust company, acts as the trustee of the Trust for the purpose of creating a Delaware statutory trust in accordance with the
Delaware Statutory Trust Act (&ldquo;DSTA&rdquo;). The Trustee is appointed to serve as the trustee of the Trust in the State of Delaware
for the sole purpose of satisfying the requirement of Section 3807(a) of the DSTA that the Trust have at least one trustee with a principal
place of business in the State of Delaware.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The principal address of
Delaware Trust Company, as Trustee is 251 Little Falls Drive, Wilmington, DE 19808.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">General Duty of Care of Trustee</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trustee is a fiduciary
under the Trust Agreement; provided, however, that the fiduciary duties and responsibilities and liabilities of the Trustee are limited
by, and are only those specifically set forth in, the Trust Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Resignation, Discharge or Removal
of Trustee; Successor Trustees</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trustee may resign at
any time by giving at least 30 days advance written notice to the Sponsor. The Sponsor may remove the Trustee at any time by giving at
least 30 days advance written notice to the Trustee. Upon effective resignation or removal, the Trustee will be discharged of its duties
and obligations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">If the Trustee resigns or
is removed, the Sponsor, acting on behalf of the Shareholders, is required to use reasonable efforts to appoint a successor trustee.
Any successor Trustee must satisfy the requirements of Section 3807 of the DSTA. Any resignation or removal of the Trustee and appointment
of a successor Trustee cannot become effective until a written acceptance of appointment is delivered by the successor Trustee to the
outgoing Trustee and the Sponsor and any fees and expenses due to the outgoing Trustee are paid or waived by the outgoing Trustee. Following
compliance with the preceding sentence, the successor will become fully vested with the rights, powers, duties and obligations of the
outgoing Trustee under the Trust Agreement, with like effect as if originally named as Trustee, and the outgoing Trustee shall be discharged
of its duties and obligations herein. If no successor Trustee shall have been appointed and shall have accepted such appointment within
forty-five (45) days after the giving of such notice of resignation or removal, the Trustee may petition any court of competent jurisdiction
for the appointment of a successor Trustee.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">If the Trustee resigns and
no successor trustee is appointed within 180 days after the date the Trustee issues its notice of resignation, the Sponsor will terminate
and liquidate the Trust and distribute its remaining assets.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Administrator</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">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. In addition, the Administrator makes available the office space, equipment, personnel and
facilities to provide such services.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The principal address of
BNY Mellon, as Administrator, Transfer Agent and Cash Custodian, is 240 Greenwich Street, New York, NY 10286.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>


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<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Transfer Agent</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Transfer Agent (1) issues
and redeems Shares of the Trust; (2) responds to correspondence by Shareholders and others relating to its duties; (3) maintains Shareholder
accounts; and (4) makes periodic reports to the Trust.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Bitcoin Custodian</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Bitcoin Custodian is
responsible for safekeeping the bitcoin owned by the Trust. The Bitcoin Custodian was selected by the Sponsor. The Bitcoin Custodian
has responsibility for opening the Trust Bitcoin Account and facilitating the transfer of bitcoin required for the operation of the Trust.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Sponsor may, in its sole
discretion, add or terminate bitcoin custodians at any time. The Sponsor may, in its sole discretion, change the custodian for the Trust&rsquo;s
bitcoin holdings, but it will have no obligation whatsoever to do so or to seek any particular terms for the Trust from other such custodians.
However, the Sponsor will only enter into bitcoin custody arrangements with custodians that meet the Sponsor&rsquo;s criteria, including
an agreement to maintain Trust assets in a segregated account, to maintain insurance and to store the Trust&rsquo;s private keys in cold
storage or in such other manner as the Sponsor determines provides reasonable protection for the Trust&rsquo;s assets from loss or theft.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Cash Custodian</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Cash Custodian is the
custodian for the Trust&rsquo;s cash holdings.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Marketing Agent</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Marketing Agent is responsible
for: (1) working with the Transfer Agent to review and approve, or reject, Creation Orders and Redemption Orders of 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 FINRA advertising laws, rules, and regulations.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center"><A NAME="a_008"></A>Custody
of the Trust&rsquo;s Assets</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trust has entered into
an agreement with the Bitcoin Custodian, the Bitcoin Custody Agreement, pursuant to which the Bitcoin Custodian will custody all of the
Trust&rsquo;s bitcoin in a segregated account from time to time (the Trust Bitcoin Account), other than the Trust&rsquo;s bitcoin which
is temporarily maintained in the Trading Balance with the Prime Execution Agent as described below in &ldquo;&mdash;The Prime Execution
Agent.&rdquo; The Bitcoin Custodian will keep a substantial portion of the private keys associated with the Trust&rsquo;s bitcoin in
&ldquo;cold storage&rdquo; or similarly secure technology (the &ldquo;Cold Bitcoin Account&rdquo;), with any remainder of the Trust Bitcoin
Account held as a &ldquo;Hot Bitcoin Account.&rdquo; The Sponsor expects that all of the Trust&rsquo;s assets and private keys will be
held in cold storage of the Bitcoin Custodian on an ongoing basis.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Custody of bitcoin typically
involves the generation, storage and utilization of private keys. These private keys are used to effect transfer transactions (<I>i.e.</I>,
transfers of bitcoin from an address associated with the private key to another address). Cold storage of private keys may involve keeping
such keys on a non-networked computer or electronic device or storing the private keys on a storage device or printed medium and deleting
the keys from all computers. Cold storage is a safeguarding method with multiple layers of protections and protocols, by which the private
key(s) corresponding to the Trust&rsquo;s bitcoin is (are) generated and stored in an offline manner. Private keys are generated in offline
computers that are not connected to the internet so that they are resistant to being hacked. By contrast, in hot storage, the private
keys are held online, where they are more accessible, leading to more efficient transfers, though they are potentially more vulnerable
to being hacked. While the Bitcoin Custodian will generally keep all of the Trust&rsquo;s bitcoin in cold storage on an ongoing basis,
it is possible that, from time to time, portions of the Trust&rsquo;s bitcoin will be held outside of cold storage temporarily as part
of trade facilitation in connection with creations and redemptions of Baskets, to sell bitcoins including to pay Trust expenses not assumed
by the Sponsor, as necessary. The Trust&rsquo;s bitcoin held in the Cold Bitcoin Account by the Bitcoin Custodian are held in segregated
wallets and therefore are not commingled with the Bitcoin Custodian&rsquo;s or other customer assets. The private key materials are stored
within secure storage facilities within the U.S. and Europe. For security reasons exact locations are never disclosed. A limited number
of employees at the Bitcoin Custodian are involved in private key management operations, and the Bitcoin Custodian has represented that
no single individual has access to full private keys. The Bitcoin Custodian carefully considers the design of the physical, operational
and cryptographic systems for secure storage of the Trust&rsquo;s private keys in an effort to lower the risk of loss or theft. No such
system is perfectly secure and loss or theft due to operational or other failure is always possible.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Bitcoin Custodian&rsquo;s
internal audit team performs periodic internal audits over custody operations, and the Bitcoin Custodian has represented that Systems
and Organizational Control attestations covering private key management controls are also performed on the Bitcoin Custodian by an external
provider.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Under the terms of the Bitcoin
Custody Agreement, the Sponsor maintains sole discretion in allocating bitcoin among the Hot Bitcoin Account and Cold Bitcoin Account.
Bitcoin custodied by the Bitcoin Custodian is not commingled with assets of Bitcoin Custodian or its affiliates or with assets of other
customers of Bitcoin Custodian. Neither the Trust, the Sponsor, nor any other entity is permitted to lend, pledge, hypothecate or rehypothecate
any of the Trust&rsquo;s bitcoin. The Bitcoin Custodian has also agreed in the Bitcoin Custody Agreement that it will not, directly or
indirectly, lend, pledge, hypothecate or rehypothecate any of the Trust&rsquo;s bitcoin, and that the Trust&rsquo;s bitcoin assets are
not treated as general assets of the Bitcoin Custodian but are instead considered custodial assets that remain the Trust&rsquo;s property.
Additionally, the Bitcoin Custodian has agreed to provide the Trust or its authorized independent public accountant with confirmation
of or access to information sufficient to confirm the bitcoin held by the Bitcoin Custodian for the Trust and that the Trust&rsquo;s
bitcoin is held in a separate, segregated account under the Trust&rsquo;s name. The Bitcoin Custody Agreement does not require that private
key information with respect to the Trust&rsquo;s bitcoin be kept in a particular physical location.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Bitcoin Custodian may
receive deposits of bitcoin but may not send bitcoin without use of the corresponding private keys. In order to send bitcoin when the
private keys are kept in cold storage, unsigned transactions must be physically transferred to the offline cold storage facility and
signed using a software/hardware utility with the corresponding offline keys. At that point, the Bitcoin Custodian can upload the fully
signed transaction to an online network and transfer the bitcoin. Because the Bitcoin Custodian may need to retrieve private keys from
offline storage prior to initiating transactions, the initiation or crediting of withdrawals or other transactions may be delayed.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Under the Bitcoin Custody
Agreement, the Bitcoin Custodian&rsquo;s liability is limited as follows, among others: (i) other than with respect to claims and losses
arising from spot trading of bitcoin, or fraud or willful misconduct, among others, the Bitcoin Custodian&rsquo;s aggregate liability
under the Bitcoin Custody Agreement shall not exceed the greater of (A)&nbsp;the greater of (x) $5 million and (y) the aggregate fees
paid by the Trust to the Bitcoin Custodian in the 12 months prior to the event giving rise to the Bitcoin Custodian&rsquo;s liability,
and (B) the value of the affected bitcoin or cash giving rise to the Bitcoin Custodian&rsquo;s liability; (ii) in respect of the Bitcoin
Custodian&rsquo;s obligations to indemnify the Trust and its affiliates against third-party claims and losses to the extent arising out
of or relating to, among others, the Bitcoin Custodian&rsquo;s violation of any law, rule or regulation with respect to the provision
of its services, the Bitcoin Custodian&rsquo;s liability shall not exceed the greater of (A) $5 million and (B) the aggregate fees paid
by the Trust to the Bitcoin Custodian in the 12 months prior to the event giving rise to the Bitcoin Custodian&rsquo;s liability; and
(iii) in respect of any incidental, indirect, special, punitive, consequential or similar losses, the Bitcoin Custodian is not liable,
even if the Bitcoin Custodian has been advised of or knew or should have known of the possibility thereof. The Bitcoin Custodian is not
liable for delays, suspension of operations, failure in performance, or interruption of service to the extent it is directly due to a
cause or condition beyond the reasonable control of the Bitcoin Custodian. Under the Bitcoin Custody Agreement, except in the case of
its negligence, fraud, material violation of applicable law or willful misconduct, the Bitcoin Custodian shall not have any liability,
obligation, or responsibility for any damage or interruptions caused by any computer viruses, spyware, scareware, Trojan horses, worms
or other malware that may affect the Trust&rsquo;s computer or other equipment, or any phishing, spoofing or other attack, unless the
Bitcoin Custodian fails to have commercially reasonable policies, procedures and technical controls in place to prevent such damages
or interruptions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Coinbase Global maintains
a commercial crime insurance policy, which is intended to cover the loss of client assets held by the Coinbase Insureds, including from
employee collusion or fraud, physical loss including theft, damage of key material, security breach or hack, and fraudulent transfer.
The insurance maintained by the Coinbase Insureds is shared among all of Coinbase&rsquo;s customers, is not specific to the Trust or
to customers holding bitcoin with the Bitcoin Custodian or Prime Execution Agent and may not be available or sufficient to protect the
Trust from all possible losses or sources of losses.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Bitcoin Custodian may
terminate the Bitcoin Custody Agreement for any reason upon providing the applicable notice to the Trust, or immediately for Cause (as
defined in the Bitcoin Custody Agreement), including, among others, if the Trust: materially breaches the Prime Execution Agreement and
such breach remains uncured, undergoes a bankruptcy event, or fails to repay Trade Credits. The Bitcoin Custodian may terminate the Bitcoin
Custody Agreement for any reason upon providing 180 days&rsquo; notice to the Trust, or immediately for Cause (as defined below). The
Bitcoin Custody Agreement forms a part of the Prime Execution Agreement, and is subject to the termination provisions in the Prime Execution
Agreement. These termination provisions are described in more detail in &ldquo;&mdash;The Prime Execution Agent&rdquo; below.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">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&rsquo;s cash and cash
equivalents.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trust may engage third-party
custodians or vendors besides the Bitcoin Custodian and the Cash Custodian to provide custody and security services for all or a portion
of its bitcoin and/or cash, and the Sponsor will pay the custody fees and any other expenses associated with any such third-party custodian
or vendor. The Sponsor is responsible for overseeing the Bitcoin Custodian and the Trust&rsquo;s other service providers. The Sponsor
may, in its sole discretion, add or terminate bitcoin custodians at any time. The Sponsor may, in its sole discretion, change the custodian
for the Trust&rsquo;s bitcoin holdings, but it will have no obligation whatsoever to do so or to seek any particular terms for the Trust
from other such custodians. However, the Sponsor will only enter into bitcoin custody arrangements with custodians that meet the Sponsor&rsquo;s
criteria, including an agreement to maintain Trust assets in a segregated account, to maintain insurance and to store the Trust&rsquo;s
private keys in cold storage or in such other manner as the Sponsor determines provides reasonable protection for the Trust&rsquo;s assets
from loss or theft.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center"><A NAME="a_009"></A>THE
PRIME EXECUTION AGENT AND THE TRADE CREDIT LENDER</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The following section describe
the role of the Prime Execution Agent and Trade Credit Lender. These parties will only be utilized during the rare and limited circumstances
when the Trust buys and sells bitcoin using the Agent Execution Model. The Trust intends to utilize the Trust-Directed Trade Model for
all purchases and sales of bitcoin and will only utilize the Agent Execution Model in the event that no Bitcoin Trading Counterparty
is able or willing to effectuate the Trust&rsquo;s purchase or sale of bitcoin.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Prime Execution Agent</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Pursuant to the Prime Execution
Agreement, the Trust&rsquo;s bitcoin holdings and cash holdings from time to time may be temporarily held with the Prime Execution Agent,
an affiliate of the Bitcoin Custodian, in the Trading Balance, for certain limited purposes, including in connection with creations and
redemptions of Baskets and the sale of bitcoin to pay other Trust expenses not assumed by the Sponsor. The Sponsor may, in its sole discretion,
add or terminate prime execution agents at any time. The Sponsor may, in its sole discretion, change the prime execution agent for the
Trust, but it will have no obligation whatsoever to do so or to seek any particular terms for the Trust from other such prime execution
agents.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Within the Trust&rsquo;s
Trading Balance, the Prime Execution Agreement provides that the Trust does not have an identifiable claim to any particular bitcoin
(and cash). Instead, the Trust&rsquo;s Trading Balance represents an entitlement to a pro rata share of the bitcoin (and cash) the Prime
Execution Agent holds on behalf of customers who hold similar entitlements against the Prime Execution Agent. In this way, the Trust&rsquo;s
Trading Balance represents an omnibus claim on the Prime Execution Agent&rsquo;s bitcoin (and cash) held on behalf of the Prime Execution
Agent&rsquo;s customers. The Prime Execution Agent holds the bitcoin associated with customer entitlements across a combination of omnibus
cold wallets, omnibus &ldquo;hot wallets&rdquo; (meaning wallets whose private keys are generated and stored online, in Internet-connected
computers or devices) or in omnibus accounts in the Prime Execution Agent&rsquo;s name on a trading venue (including third-party venues
and the Prime Execution Agent&rsquo;s own execution venue) where the Prime Execution Agent executes orders to buy and sell bitcoin on
behalf of its clients.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Within such omnibus hot and
cold wallets and accounts, the Prime Execution Agent has represented to the Sponsor that it keeps the majority of assets in cold wallets,
to promote security, while the balance of assets is kept in hot wallets to facilitate rapid withdrawals. However, the Sponsor has no
control over, and for security reasons the Prime Execution Agent does not disclose to the Sponsor, the percentage of bitcoin that the
Prime Execution Agent holds for customers holding similar entitlements as the Trust which are kept in omnibus cold wallets, as compared
to omnibus hot wallets or omnibus accounts in the Prime Execution Agent&rsquo;s name on a trading venue. The Prime Execution Agent has
represented to the Sponsor that the percentage of assets maintained in cold versus hot storage is determined by ongoing risk analysis
and market dynamics, in which the Prime Execution Agent attempts to balance anticipated liquidity needs for its customers as a class
against the anticipated greater security of cold storage.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>


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    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Prime Execution Agent
is not required by the Prime Execution Agreement to hold any of the bitcoin in the Trust&rsquo;s Trading Balance in cold storage or to
hold any such bitcoin in segregation, and neither the Trust nor the Sponsor can control the method by which the Prime Execution Agent
holds the bitcoin credited to the Trust&rsquo;s Trading Balance.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Prime Execution Agent
relies on bank accounts to provide its trading platform services and including temporarily holding any cash related to a customer&rsquo;s
purchase or sale of bitcoin. In particular, the Prime Execution Agent has disclosed that customer cash held by the Prime Execution Agent,
including the cash associated with the Trust&rsquo;s Trading Balance, is held in one or more banks&rsquo; accounts for the benefit of
the Prime Execution Agent&rsquo;s customers, or in Money Market Funds in compliance with Rule 2a-7 under the Investment Company Act of
1940 and rated &ldquo;AAA&rdquo; by S&amp;P (or the equivalent from any eligible rating service), provided that such investments are
held in accounts in Coinbase&rsquo;s name for the benefit of customers and are permitted and held in accordance with state money transmitter
laws. The Prime Execution Agent has represented to the Sponsor that it has implemented the following policy with respect to the cash
associated with the Trust&rsquo;s Trading Balance. First any cash related to the Trust&rsquo;s purchase or sale of bitcoin will be held
in an FBO Account or in a Money Market Fund. The amount of Trust cash held at each FBO Account shall, unless otherwise agreed by the
Sponsor in writing, be in an amount at each bank that is the lower of (i) the FDIC insurance limit for deposit insurance and (ii) any
bank-specific limit set by the Prime Execution Agent for the applicable bank. Deposit insurance does not apply to cash held in a Money
Market Fund. The Prime Execution Agent has agreed to title the accounts in a manner designed to enable receipt of FDIC deposit insurance
where applicable on a pass-through basis. Second, to the extent the Trust&rsquo;s cash in the Trading Balance in aggregate exceeds the
amounts that can be maintained at the banks on the foregoing basis, the Prime Execution Agent has represented that it currently conducts
an overnight sweep of the excess into U.S. government Money Market Funds. The Sponsor has not independently verified the Prime Execution
Agent&rsquo;s representations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">To the extent the Trust sells
bitcoin through the Prime Execution Agent, the Trust&rsquo;s orders will be executed at the Connected Trading Venues that have been approved
in accordance with the Prime Execution Agent&rsquo;s due diligence and risk assessment process. The Prime Execution Agent has represented
that its due diligence on Connected Trading Venues include reviews conducted by the legal, compliance, security, privacy and finance
and credit-risk teams, The Connected Trading Venues, which are subject to change from time to time, currently include Bitstamp, LMAX,
Kraken, the exchange operated by the Prime Execution Agent, as well as four additional non-bank market makers (&ldquo;NBMMs&rdquo;).
The Prime Execution Agent has represented to the Trust that it is unable to name the NBMMs due to confidentiality restrictions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Pursuant to the Prime Execution
Agreement, the Trust may engage in sales of bitcoin by placing orders with the Prime Execution Agent. The Prime Execution Agent will
route orders placed by the Sponsor through the prime execution agent execution platform (the &ldquo;Trading Platform&rdquo;) to a Connected
Trading Venue where the order will be executed. Each order placed by the Sponsor will be sent, processed and settled at each Connected
Trading Venue to which it is routed. The Prime Execution Agreement provides that the Prime Execution Agent is subject to certain conflicts
of interest, including: (i) the Trust&rsquo;s orders may be routed to the Prime Execution Agent&rsquo;s own execution venue where the
Trust&rsquo;s orders may be executed against other customers of the Prime Execution Agent or with the Coinbase acting as principal, (ii)
the beneficial identity of the counterparty purchaser or seller with respect to the Trust&rsquo;s orders may be unknown and therefore
may inadvertently be another client of the Prime Execution Agent, (iii) the Prime Execution Agent does not engage in front-running, but
is aware of the Trust&rsquo;s orders or imminent orders and may execute a trade for its own inventory (or the account of an affiliate)
while in possession of that knowledge and (iv) the Prime Execution Agent may act in a principal capacity with respect to certain orders.
As a result of these and other conflicts, when acting as principal, the Prime Execution Agent may have an incentive to favor its own
interests and the interests of its affiliates over the Trust&rsquo;s interests.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>


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    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Subject to the foregoing,
and to certain policies and procedures that the Prime Execution Agreement requires the Prime Execution Agent to have in place to mitigate
conflicts of interest when executing the Trust&rsquo;s orders, the Prime Execution Agreement provides that the Prime Execution Agent
shall have no liability, obligation, or responsibility whatsoever for the selection or performance of any Connected Trading Venue, and
that other Connected Trading Venues and/or trading venues not used by Coinbase may offer better prices and/or lower costs than the Connected
Trading Venue used to execute the Trust&rsquo;s orders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Coinbase Global maintains
a commercial crime insurance policy, which is intended to cover the loss of client assets held by Coinbase Global and all of its subsidiaries,
including the Prime Execution Agent, including from employee collusion or fraud, physical loss including theft, damage of key material,
security breach or hack, and fraudulent transfer. The insurance maintained by the Coinbase Insureds is shared among all of Coinbase&rsquo;s
customers, is not specific to the Trust or to customers holding bitcoin with the Bitcoin Custodian or Prime Execution Agent and may not
be available or sufficient to protect the Trust from all possible losses or sources of losses.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Once the Sponsor places an
order to purchase or sell bitcoin on the Trading Platform, the associated bitcoin or cash used to fund or fill the order, if any, will
be placed on hold and will generally not be eligible for other use or withdrawal from the Trust&rsquo;s Trading Balance. The Trust Bitcoin
Account may be used directly to fund orders. With each Connected Trading Venue, the Prime Execution Agent shall establish an account
in the Prime Execution Agent&rsquo;s name, or in its name for the benefit of clients, to trade on behalf of its clients, including the
Trust, and the Trust will not, by virtue of the Trading Balance the Trust maintains with the Prime Execution Agent, have a direct legal
relationship, or account with, any Connected Trading Venue.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Prime Execution Agent
is permitted to suspend or terminate the Prime Execution Agreement under certain circumstances. The Prime Execution Agent, for itself
or as agent for the Bitcoin Custodian and Trade Credit Lender, may not terminate the Prime Execution Agreement (including the Bitcoin
Custody Agreement) or suspend, restrict terminate or modify the Prime Execution Agent Services (as defined below) on less than 180 days&rsquo;
notice, except in the event of (i) a Change in Law or (ii) a Cause event (as defined below).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Prime Execution Agreement
defines a &ldquo;Change in Law&rdquo; as any change in or adoption of any applicable law, rule, or regulation which, in the reasonable
opinion of counsel to the Prime Execution Agent would prohibit or materially impede some or all of the arrangement contemplated by the
Prime Execution Agreement. Upon the occurrence of a Change in Law, the parties will negotiate to agree on modifications to the Prime
Execution Agreement or the Prime Execution Agent Services that would enable compliance with such Change in Law or, in the case of a material
impediment, reduce the impact to the parties of such Change in Law and the Coinbase Entities shall continue to provide the Prime Execution
Agent Services unless prohibited from doing so by the Change in Law. If the parties cannot agree on modifications within thirty (30)
days following notice from the Prime Execution Agent or if the Change in Law requires that Coinbase immediately ceases providing any
Prime Execution Agent Services, the Prime Execution Agent may, upon written notice, suspend, restrict or terminate the Prime Execution
Agent Services solely to the extent necessary to account for the Change in Law, provided that any such suspension, restriction, termination
or modification is narrowly tailored and, to the extent not prohibited by the Change in Law, the Coinbase Entities will continue to provide,
at a minimum, the Transition Services (as defined below) following any Change in Law.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Upon the occurrence and continuation
of a Cause event, and after giving effect to any notice requirement and cure period that may apply, the Prime Execution Agent may in
its reasonable discretion, terminate the Prime Execution Agreement and accelerate the Trust&rsquo;s obligations, and/or take certain
other actions. The Prime Execution Agreement defines &ldquo;Cause&rdquo; to mean, (i) a material breach of the Prime Execution Agreement
(other than the Bitcoin Custody Agreement) which is uncured for 10 days; (ii) a material breach of the Bitcoin Custody Agreement which
is uncured for 30 days; (iii) a Bankruptcy Event (as defined below); and (iv) the failure by the Trust to repay Trade Credits by the
applicable deadline specified in the Trade Financing Agreement which, in the event the failure results solely from an error or omission
of an administrative or operational nature, remains uncured for a period of 1 business day.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Notwithstanding any termination
of the Prime Execution Agreement by the Prime Execution Agent for Cause, during any Transition Period (as defined below) the Coinbase
Entities (defined in the Prime Execution Agreement as the Prime Execution Agent, Bitcoin Custodian, and Trade Credit Lender) or their
affiliates shall continue to provide the Transition Services (as defined below) and render such assistance as the Trust may reasonably
request to enable the continuation and orderly assumption of the Transition Services to be effected by the Trust, its affiliate or any
alternative service provider and shall continue to provide the Transition Services pursuant to the Prime Execution Agreement, except
to the extent any Transition Service is prohibited under applicable law (including but not limited to applicable sanctions programs)
or by a facially valid subpoena, court order, or binding order of a government authority; provided that the Coinbase Entities will continue
to have the right to exercise its right of set-off under the Prime Execution Agreement with respect to any sale proceeds during the Transition
Period for any fees or other amounts owed by the Trust and (ii), notwithstanding any provision in the Prime Execution Agreement to the
contrary, in no event shall any Coinbase Entity, its affiliates, or their respective officers, directors, agents, employees and representatives
have any liability to the Trust or Sponsor for any claims or losses arising out of or relating to the Prime Execution Agreement during
(A) with respect to any Transition Services described in clause (i) of the definition of Transition Services, the 91st day through the
end of the Transition Period (as defined below) and (B) with respect to any Transition Services described in clause (ii) of the definition
of Transition Services, the 16th day through the end of the Transition Period, which do not result from its gross negligence, fraud,
material violation of applicable law or willful misconduct; provided that throughout the Transition Period the Coinbase Entities shall
act in good faith and in a commercially reasonable manner to provide the same level of service with respect to the Transition Services
as was provided prior to the start of the Transition Period. For the avoidance of doubt, during the Transition Period, the fees set forth
in the Prime Execution Agreement will continue to apply to the Transition Services.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;Transition Period&rdquo;
is defined in the Prime Execution Agreement to mean a 180-day period (or such extended period as agreed in writing by the Coinbase Entities
and the Trust) commencing on the date the Trust is notified of any termination of the Prime Execution Agreement pursuant to a Cause event.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;Transition Services&rdquo;
means the Prime Execution Agent services consisting of (i) the custody of Trust&rsquo;s bitcoin on the Trust&rsquo;s behalf, the processing
of deposits and withdrawals and other custody transactions, and (ii) access to the Prime Execution Agent&rsquo;s trading platform and
the execution and settlement of all orders for the sale of bitcoin submitted by the Trust. For the avoidance of doubt, the Transition
Services shall not include the extension of credit, and the obligation to execute and settle any Orders for the purchase of Digital Assets.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;Bankruptcy Event&rdquo;
is defined in the Prime Execution Agreement to mean the party is (i) dissolved (other than pursuant to a consolidation, amalgamation
or merger); (ii) becomes insolvent or is unable to pay its debts or fails or admits in writing its inability generally to pay its debts
as they become due; (iii) makes a general assignment, arrangement or composition with or for the benefit of its creditors; (iv) institutes
or has instituted against it a proceeding seeking a judgment of insolvency or bankruptcy or any other relief under any bankruptcy or
insolvency law or other similar law affecting creditors&rsquo; rights, or a petition is presented for its winding-up or liquidation,
and in the case of any such proceeding or petition instituted or presented against it, such proceeding or petition (I) results in a judgment
of insolvency or bankruptcy or the entry of an order for relief or the making of an order for its winding-up or liquidation or (II) is
not dismissed, discharged, stayed or restrained in each case within 30 days of the institution or presentation thereof; (v) has a resolution
passed for its winding-up, official management or liquidation (other than pursuant to a consolidation, amalgamation or merger); (vi)
seeks or becomes subject to the appointment of an administrator, provisional liquidator, conservator, receiver, trustee, custodian or
other similar official for it or for all or substantially all its assets; (vii) has a secured party take possession of all or substantially
all its assets or has a distress, execution, attachment, sequestration or other legal process levied, enforced or sued on or against
all or substantially all its assets and such secured party maintains possession, or any such process is not dismissed, discharged, stayed
or restrained, in each case within 30 days thereafter; (viii) causes or is subject to any event with respect to it which, under the applicable
laws of any jurisdiction, has an analogous effect to any of the events specified in clauses (i) to (vii) (inclusive); or (ix) takes any
action in furtherance of, or indicating its consent to, approval of, or acquiescence in, any of the foregoing acts.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trust may terminate the
Prime Execution Agreement, including the Bitcoin Custody Agreement, in whole or in part for any reason upon 30 days&rsquo; notice to
the Prime Execution Agent, for itself or as agent on behalf of the Bitcoin Custodian or Trade Credit Lender, or upon a Coinbase Termination
Event. The Prime Execution Agreement defines a &ldquo;Coinbase Termination Event&rdquo; to mean the occurrence and continuance of (i)
a Bankruptcy Event with respect to any Coinbase Entity, (ii) the failure of any Coinbase Entity to sell or withdraw or transfer the Trust&rsquo;s
bitcoin in accordance with the Trust&rsquo;s instructions within the time periods set forth in the Prime Execution Agreement and such
failure is not cured within two (2) business days following the Trust providing written notice to the relevant Coinbase Entity (&ldquo;CB
Return Cure&rdquo;); provided, however, that (A) if, prior to the expiration of the CB Return Cure, the Prime Execution Agent transfers
cash to the Trust in an amount equal to the value of the bitcoin based on the Benchmark Valuation (defined as the BRRNY) as of the time
that the request to sell, transfer or withdraw was originally made by the Trust (the &ldquo;BTC Cash Value&rdquo;) or if the Prime Execution
Agent delivers cash collateral to an account designated by the Trust and in which the Trust has a perfected, first priority security
interest and in an amount equal to the BTC Cash Value until the relevant bitcoin is sold, withdrawn or transferred or the Trust elects
to receive such amount in cash in lieu of the Prime Execution Agent&rsquo;s obligation to sell, withdraw or transfer the relevant bitcoin,
in each cash, such failure will be deemed cured; provided, further that, the Trust shall have the right to choose whether to receive
the BTC Cash Value in lieu of the relevant bitcoin or receive the BTC Cash Value as cash collateral, or (B) if such failure is due to
a technology or security issue where, in the commercially reasonable opinion of the Prime Execution Agent, returning the relevant bitcoin
would result in material risk to the Trust or the Prime Execution Agent or may result in the relevant bitcoin being lost or otherwise
not successfully returned and the Prime Execution Agent promptly notifies the Trust promptly upon Client&rsquo;s notice of such failure,
(1) the Trust may request that the Prime Execution Agent still sell, withdraw or transfer the bitcoin, but the Prime Execution Agent
will have no liability with respect to any such sell, withdrawal or transfer (unless the Prime Execution Agent or any of the Coinbase
Entities act with negligence unrelated to such technology or security issue) and any failure to withdraw or transfer shall not result
in a Coinbase Termination Event if the Trust does not receive the withdrawn or transferred bitcoin or the proceeds of any such sale due
to such technology or security issue, or (2) if the Trust does not elect to have the Prime Execution Agent still make the sale, withdrawal
or transfer, a Coinbase Termination Event shall not occur while the relevant security or technology event is occurring and continuing,
(iii) the failure of any Coinbase Entity to withdraw or transfer cash to the Trust in accordance with the Trust&rsquo;s instructions
within the time periods set forth in the Prime Execution Agreement and such failure is not cured within one (1) Business Day following
the Trust providing written notice to the relevant Coinbase Entity, (iv) a Coinbase Entity intentionally or willfully, materially breaches
any provision of the Prime Execution Agreement (other than the provisions of the Bitcoin Custody Agreement) and such breach remains uncured
for a period of 10 calendar days after notice of such breach is provided by the Trust to the Prime Execution Agent; or (v) a Coinbase
Entity intentionally or willfully, materially breaches any provision of the Bitcoin Custody Agreement and such breach remains uncured
for a period of 30 calendar days after notice of such breach is provided by the Trust to the Prime Execution Agent.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Prime Execution Agent
does not guarantee uninterrupted access to the Trading Platform or the services it provides to the Trust. Under certain circumstances,
the Prime Execution Agent is permitted to halt or suspend trading on the Trading Platform, or impose limits on the amount or size of,
or reject, the Trust&rsquo;s orders, including in the event of, among others, (a) delays, suspension of operations, failure in performance,
or interruption of service that are directly due to a cause or condition beyond the reasonable control of the Prime Execution Agent,
(b) the Trust has engaged in unlawful or abusive activities or fraud, or (c) a security or technology issue occurred and is continuing
that results in the Prime Execution Agent being unable to provide trading services or accept the Trust&rsquo;s order, in each case, subject
to certain protections for the Trust.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Neither the Prime Execution
Agent nor any other Coinbase entity is permitted to withdraw the Trust&rsquo;s bitcoin from the Trust Bitcoin Account, or loan, hypothecate,
pledge or otherwise encumber the Trust&rsquo;s bitcoin, without the consent of the Trust. The Trading Balance is subject to the lien
to secure outstanding Trade Credits in favor of the Trade Credit Lender discussed below.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Under the Prime Execution
Agreement, the Prime Execution Agent&rsquo;s liability is limited as follows, among others: (i) other than with respect to claims and
losses arising from spot trading of bitcoin, or fraud or willful misconduct, among others, the Prime Execution Agent&rsquo;s aggregate
liability shall not exceed the greater of (A) the greater of (x) $5 million and (y) the aggregate fees paid by the Trust to the Prime
Execution Agent in the 12 months prior to the event giving rise to the Prime Execution Agent&rsquo;s liability, and (B) the value of
the cash or affected bitcoin giving rise to the Prime Execution Agent&rsquo;s liability; (ii) in respect of the Prime Execution Agent&rsquo;s
obligations to indemnify the Trust and its affiliates against third-party claims and losses to the extent arising out of or relating
to, among others, the Prime Execution Agent&rsquo;s violation of any law, rule or regulation with respect to the provision of its services,
or the full amount of the Trust&rsquo;s assets lost due to the insolvency of or security event at a Connected Trading Venue, the Prime
Execution Agent&rsquo;s liability shall not exceed the greater of (A) $5 million and (B) the aggregate fees paid by the Trust to the
Prime Execution Agent in the 12 months prior to the event giving rise to the Prime Execution Agent&rsquo;s liability; and (iii) in respect
of any incidental, indirect, special, punitive, consequential or similar losses, the Prime Execution Agent is not liable, even if the
Prime Execution Agent has been advised of or knew or should have known of the possibility thereof. The Prime Execution Agent is not liable
for delays, suspension of operations, failure in performance, or interruption of service to the extent it is directly due to a cause
or condition beyond the reasonable control of the Prime Execution Agent. Both the Trust and the Prime Execution Agent and its affiliates
(including the Bitcoin Custodian) are required to indemnify each other under certain circumstances. The Prime Execution Agreement is
governed by New York law and provides that disputes arising under it are subject to arbitration.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Prime Execution Agreement
provides that the Coinbase Entities may have actual or potential conflicts of interest in connection with providing the Prime Execution
Agent Services including that (i) orders to buy or sell bitcoin may be routed to the Prime Execution Agent&rsquo;s exchange platform
(&ldquo;Coinbase Exchange&rdquo;) where such orders may be executed against other Coinbase customers or with Coinbase acting as principal,
(ii) the beneficial identity of the purchaser or seller with respect to an order is unknown and therefore may inadvertently be another
Coinbase customer, (iii) the Prime Execution Agent does not engage in front-running, but is aware of orders or imminent orders and may
execute a trade for its own inventory (or the account of an affiliate) while in possession of that knowledge and (iv) Coinbase may act
in a principal capacity with respect to certain orders (e.g., to fill residual order size when a portion of an order may be below the
minimum size accepted by the Connected Trading Venues). As a result of these and other conflicts, when acting as principal, the Coinbase
Entities may have an incentive to favor their own interests and the interests of their affiliates over the Trust&rsquo;s interests and
have in place certain policies and procedures that are designed to mitigate such conflicts. The Prime Execution Agent will maintain appropriate
and effective arrangements to eliminate or manage conflicts of interest, including segregation of duties, information barriers and training.
The Prime Execution Agent will notify the Trust of changes to its business that have a material adverse effect on the Prime Execution
Agent&rsquo;s ability to manage its conflicts of interest. The Coinbase Entities shall execute trades pursuant to such policies and procedures;
provided that the Coinbase Entities (a) shall execute in a commercially reasonable amount of time (i) any marketable orders appropriately
entered by the Trust and (ii) any other pending orders by the Trust received by the Coinbase Entities that become marketable, (b) for
any order that the Prime Execution Agent receives from the Trust, the Prime Execution Agent will make commercially reasonable efforts
to route orders for execution to the Connected Trading Venue offering the highest price for the Trust&rsquo;s bitcoin sale orders, including
consideration of any gas fees or similar fees related to a particular blockchain at the time that such orders are routed for execution,
and (c) shall not knowingly enter into a transaction for the benefit of (x) the Coinbase Entities, or (y) any other client received after
the Trust&rsquo;s order, ahead of any order received from the Trust. For purposes of the foregoing, a marketable order is a sell order
equivalent to or better than the best bid price on any Connected Trading Venue (or any venue that a Coinbase Entity may use) at a given
moment. The Prime Execution Agent agrees to direct the Trust&rsquo;s orders in a manner that does not systematically favor the Coinbase
Exchange or Connected Trading Venues that provide financial incentives to the Prime Execution Agent; provided, however, that under certain
circumstances the Prime Execution Agent may choose to intentionally route to the Coinbase Exchange due to temporary conditions affecting
Connected Trading Venues (e.g. connectivity problems of the Connected Trading Venue or funding constraints).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Trade Credit Lender</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">To avoid having to pre-fund
purchases or sales of bitcoin when using the Agent Execution Model, the Trust may borrow bitcoin or cash as Trade Credit from the Trade
Credit Lender on a short-term basis. The Sponsor does not intend to fund the Trading Balance at the Prime Execution Agent with sufficient
cash or bitcoin to pay fees and expenses and instead intends to utilize the Trade Financing Agreement for such fees and expenses. This
allows the Trust to buy or sell bitcoin through the Prime Execution Agent in an amount that exceeds the cash or bitcoin credited to the
Trust&rsquo;s Trading Balance at the Prime Execution Agent at the time such order is submitted to the Prime Execution Agent, which is
expected to facilitate the Trust&rsquo;s ability purchase and sell bitcoin in a timely manner, rather than waiting for the cash to be
transferred by the Cash Custodian to the Prime Execution Agent prior to purchasing the bitcoin or for the bitcoin held in the Trust Bitcoin
Account to be transferred to the Trust&rsquo;s Trading Balance prior to selling bitcoin. The Trust is required by the terms of the Trade
Financing Agreement, which is part of the Prime Execution Agreement, to repay any extension of Trade Credit by the Trade Credit Lender
by 6:00 p.m. ET on the Business Day following the day that the Trade Credit was extended to the Trust. The Trade Credit Lender is only
required to extend Trade Credits to the Trust to the extent such bitcoin or cash is actually available to the Trade Credit Lender. For
example, if the Trade Credit Lender is unable to itself borrow bitcoin to lend to the Trust as a Trade Credit, or there is a material
market disruption (as determined by the Trade Credit Lender in good faith and in its sole discretion), the Trade Credit Lender is not
obligated to extend Trade Credits to the Trust. To secure the repayment of Trade Credits, the Trust has granted a first-priority lien
to the Trade Credit Lender over the assets in its Trading Balance and the Trust Bitcoin Account. If the Trust fails to repay a Trade
Credit within the required deadline, the Trade Credit Lender is permitted to take control of bitcoin or cash credited to the Trust&rsquo;s
Trading Balance and Trust Bitcoin Account (though it is required to exhaust the Trading Balance prior to taking control of assets in
the Trust Bitcoin Account) and liquidate them to repay the outstanding Trade Credit. Trade Credits bear interest. Pursuant to the Trade
Financing Agreement, there is a maximum &ldquo;Authorized Amount&rdquo; of Trade Credits that the Trade Credit Lender allows to be outstanding
at any one time, which is determined and may be changed by the Trade Credit Lender in its sole discretion. To the extent the Trade Credit
Lender changes the Authorized Amount, it will give the Trust advance notice if it is feasible to do so.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The entirety of the Trust&rsquo;s
bitcoin holdings are maintained with the Bitcoin Custodian rather than the Prime Execution Agent. Accordingly, when using the Agent Execution
Model, the Trust does expect to utilize Trade Credits. When utilizing Trade Credits in connection with Cash Creation Orders and Cash
Redemption Orders, any interest payable on Trade Credits will be the responsibility of the Authorized Participants. In the very rare
event that Trade Credits are utilized in connection with the payment of Trust expenses not assumed by the Sponsor, any interest payable
on the Trade Credits will be the responsibility of the Trust. Any such interest payments borne by the Trust will have the effect of reducing
the amount of bitcoin represented by a Share and the net asset value of the Trust. In connection with a Cash Redemption Order or to pay
expenses not assumed by the Sponsor, the Trust will first borrow bitcoin from the Trade Credit Lender using the Trade Financing Agreement,
and then sell this bitcoin. In connection with a Cash Creation Order, the Trust will first borrow cash from the Trade Credit Lender using
the Trade Financing Agreement, and then purchase bitcoin. The purpose of borrowing the bitcoin or cash from the Trade Credit Lender is
to lock in the bitcoin price on the trade date or the payment date, as applicable, rather than waiting for the funds associated with
the creation to be transferred by the Cash Custodian to the Prime Execution Agent prior to purchasing the bitcoin or for the bitcoin
held in the Trust Bitcoin Account to be transferred to a Trading Balance prior to selling the bitcoin (a process which may take up to
twenty four hours, or longer if the Bitcoin blockchain is experiencing delays in transaction confirmation, or if there are other delays).
To the extent that the execution price of the bitcoin acquired exceeds the amount of cash deposited by the Authorized Participant, the
Authorized Participant bears the responsibility for the difference.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In the event Trade Credits
are unavailable from the Trade Credit Lender or become exhausted, the Sponsor would require the Authorized Participant to deliver cash
on the trade date so that a Cash Creation Order can be settled in a timely manner. For a Cash Redemption Order under the Agent Execution
Model, the Trust may use financing when the bitcoin remains in the Trust Bitcoin Account at the point of intended execution of a sale
of bitcoin. In the event Trade Credits are unavailable or become exhausted in this situation, the Sponsor would instruct the Bitcoin
Custodian to move bitcoin out of the Trust Bitcoin Account into the Trading Balance so that it could be sold directly in response to
a redemption order or to pay fees and expenses. Under these circumstances, the Trust may not be able to lock in the bitcoin price on
the trade date or the payment date, as applicable, and would instead have to wait until the transfer from the Trust Bitcoin Account the
Trading Balance was completed before selling the bitcoin.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center"><A NAME="a_010"></A>Form
of Shares</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">Registered Form</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Shares are issued in registered
form in accordance with the Trust Agreement. The Transfer Agent has been appointed registrar and transfer agent for the purpose of transferring
Shares in certificated form. The Transfer Agent keeps a record of all Shareholders and holders of the Shares in certified form in the
registry (&ldquo;Register&rdquo;). The Sponsor recognizes transfers of Shares in certificated form only if done in accordance with the
Trust Agreement. The beneficial interests in such Shares are held in book-entry form through participants and/or accountholders in DTC.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">Book Entry</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Individual certificates are
not issued for the Shares. Instead, Shares are represented by one or more global certificates, which are deposited by the Transfer Agent
with DTC and registered in the name of Cede &amp; Co., as nominee for DTC. The global certificates evidence all of the Shares outstanding
at any time. Shareholders are limited to (1) participants in DTC such as banks, brokers, dealers and trust companies (&ldquo;DTC Participants&rdquo;),
(2) those who maintain, either directly or indirectly, a custodial relationship with a DTC Participant (&ldquo;Indirect Participants&rdquo;),
and (3) those who hold interests in the Shares through DTC Participants or Indirect Participants, in each case who satisfy the requirements
for transfers of Shares. DTC Participants acting on behalf of investors holding Shares through such participants&rsquo; accounts in DTC
will follow the delivery practice applicable to securities eligible for DTC&rsquo;s Same-Day Funds Settlement System. Shares are credited
to DTC Participants&rsquo; securities accounts following confirmation of receipt of payment.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">DTC</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">DTC has advised the Sponsor
as follows: It is a limited purpose trust company organized under the laws of the State of New York and is a member of the Federal Reserve
System, a &ldquo;clearing corporation&rdquo; within the meaning of the New York Uniform Commercial Code and a &ldquo;clearing agency&rdquo;
registered pursuant to the provisions of Section 17A of the Exchange Act. DTC holds securities for DTC Participants and facilitates the
clearance and settlement of transactions between DTC Participants through electronic book-entry changes in accounts of DTC Participants.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center"><A NAME="a_035"></A>Transfer
of Shares</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Shares are only transferable
through the book-entry system of DTC. Shareholders who are not DTC Participants may transfer their Shares through DTC by instructing
the DTC Participant holding their Shares (or by instructing the Indirect Participant or other entity through which their Shares are held)
to transfer the Shares. Transfers are made in accordance with standard securities industry practice.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Transfers of interests in
Shares with DTC are made in accordance with the usual rules and operating procedures of DTC and the nature of the transfer. DTC has established
procedures to facilitate transfers among the participants and/or accountholders of DTC. Because DTC can only act on behalf of DTC Participants,
who in turn act on behalf of Indirect Participants, the ability of a person or entity having an interest in a global certificate to pledge
such interest to persons or entities that do not participate in DTC, or otherwise take actions in respect of such interest, may be affected
by the lack of a certificate or other definitive document representing such interest.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">DTC has advised the Sponsor
that it will take any action permitted to be taken by a Shareholder (including, without limitation, the presentation of a global certificate
for exchange) only at the direction of one or more DTC Participants in whose account with DTC interests in global certificates are credited
and only in respect of such portion of the aggregate principal amount of the global certificate as to which such DTC Participant or Participants
has or have given such direction.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center"><A NAME="a_011"></A>Plan
of Distribution</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">Buying and Selling Shares</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Most investors buy and sell
Shares in secondary market transactions through brokers. Shares trade on the Exchange under the ticker symbol &ldquo;BITB.&rdquo; Shares
are bought and sold throughout the trading day like other publicly traded securities. When buying or selling Shares through a broker,
most investors incur customary brokerage commissions and charges. Shareholders are encouraged to review the terms of their brokerage
account for details on applicable charges.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>Authorized Participants</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The offering of the Shares
is a best efforts offering. The Trust continuously offers Baskets consisting of 10,000 Shares to Authorized Participants. Authorized
Participants pay a transaction fee for each order they place to create or redeem one or more Baskets. The Sponsor believes that the Basket
size of 10,000 Shares will enable Authorized Participants to manage inventory and facilitate an effective arbitrage mechanism for the
Trust, however, the Sponsor may adjust of the Baskets in order to improve the effectiveness of the activities of Authorized Participants
in the secondary market for the Shares if the Sponsor determines it to be necessary or advisable. Because new Shares can be created and
issued on an ongoing basis, at any point during the life of the Trust, a &ldquo;distribution,&rdquo; as such term is used in the 1933
Act, will be occurring.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The offering of Baskets is
being made in compliance with Conduct Rule 2310 of FINRA. Accordingly, Authorized Participants will not make any sales to any account
over which they have discretionary authority without the prior written approval of a purchaser of Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">By executing an Authorized
Participant Agreement, an Authorized Participant becomes part of the group of parties eligible to purchase Baskets from, and put Baskets
for redemption to, the Trust. An Authorized Participant is under no obligation to purchase or redeem Baskets or to offer to the public
Shares of any Basket it does create. As of May 23, 2025, Jane Street Capital, LLC, Marex Financial, Macquarie Capital (USA) Inc., Goldman
Sachs Group, Inc., Citadel LLC, Virtu Americas LLC, and The Bank of New York Mellon Corporation have executed Authorized Participant
Agreements with the Trust. Pursuant to the terms of those Authorized Participant Agreements, each such Authorized Participant, except
for Marex Financial and The Bank of New York Mellon Corporation, may conduct Cash Creations, Cash Redemptions, In-Kind Creations and
In-Kind Redemptions. As of May 23, 2025, Marex Financial and The Bank of New York Mellon Corporation may only conduct Cash Creations
and Cash Redemptions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Because new Shares can be
created and issued on an ongoing basis, at any point during the life of the Trust, a &ldquo;distribution,&rdquo; as such term is used
in the 1933 Act, will be occurring. Authorized Participants, other broker-dealers and other persons are cautioned that some of their
activities may result in their being deemed participants in a distribution in a manner that would render them statutory underwriters
and subject them to the prospectus-delivery and liability provisions of the 1933 Act. Any purchaser who purchases Shares with a view
towards distribution of such Shares may be deemed to be a statutory underwriter. In addition, an Authorized Participant, other broker-dealer
firm or its client will be deemed a statutory underwriter if it purchases a Basket from the Trust, breaks the Basket down into the constituent
Shares and sells the Shares to its customers; or if it chooses to couple the creation of a supply of new Shares with an active selling
effort involving solicitation of secondary market demand for the Shares. In contrast, Authorized Participants may engage in secondary
market or other transactions in Shares that would not be deemed &ldquo;underwriting.&rdquo; For example, an Authorized Participant may
act in the capacity of a broker or dealer with respect to Shares that were previously distributed by other Authorized Participants. A
determination of whether a particular market participant is an underwriter must take into account all the facts and circumstances pertaining
to the activities of the broker-dealer or its client in the particular case, and the examples mentioned above should not be considered
a complete description of all the activities that would lead to designation as an underwriter and subject them to the prospectus-delivery
and liability provisions of the 1933 Act.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Dealers who are neither Authorized
Participants nor &ldquo;underwriters&rdquo; but are nonetheless participating in a distribution (as contrasted to ordinary secondary
trading transactions), and thus dealing with Shares that are part of an &ldquo;unsold allotment&rdquo; within the meaning of Section
4(3)(C) of the 1933 Act, would be unable to take advantage of the prospectus-delivery exemption provided by Section 4(3) of the 1933
Act.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">While the Authorized Participants
may be indemnified by the Sponsor, they will not be entitled to receive a discount or commission from the Trust or the Sponsor for their
purchases of Baskets.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>Selling Shareholders</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Sponsor or its affiliates,
or a fund or unit investment trust for which the Sponsor or an affiliate of the Sponsor serves as sponsor or investment advisor, may
purchase Shares of the Trust through a broker-dealer or other investors, including in secondary market transactions, and because the
Sponsor and its affiliates may be deemed affiliates of the Trust, the Shares are being registered to permit the resale of these Shares
by affiliates of the Trust from time to time after any such purchase. The Trust will not receive any of the proceeds from the resale
of such Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Selling shareholders (each,
a &ldquo;Selling Shareholder&rdquo;) may sell Shares owned by them directly or through broker-dealers, in accordance with applicable
law, on any national securities exchange on which the Shares may be listed or quoted at the time of sale, through trading systems, in
the OTC market or in transactions other than on these exchanges or systems at fixed prices, at prevailing market prices at the time of
the sale, at varying prices determined at the time of sale, or at negotiated prices. These sales may be effected through brokerage transactions,
privately negotiated trades, block sales, entry into options or other derivatives transactions or through any other means authorized
by applicable law. Selling Shareholders may redeem Shares held in Basket size through an Authorized Participant.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center"><A NAME="a_012"></A>Creation
and Redemption of Shares</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">When the Trust creates or
redeems its Shares, it will do 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 &ldquo;Basket Amount.&rdquo; The Basket Amount required to create each Basket changes from day to day. On each day that
the Exchange is open for regular trading, the Administrator adjusts the quantity of bitcoin constituting the Basket Amount as appropriate
to reflect accrued expenses and any loss of bitcoin that may occur. The computation is made by the Administrator each business day prior
to the commencement of trading on the Exchange. The Administrator determines the Basket Amount for a given day by dividing the number
of bitcoin held by the Trust as of the opening of business on that business day, adjusted for the amount of bitcoin constituting estimated
accrued but unpaid fees and expenses of the Trust as of the opening of business on that business day, by the quotient of the number of
Shares outstanding at the opening of business, multiplied by 10,000. Fractions of a bitcoin smaller than a satoshi (0.00000001 bitcoin)
are disregarded for purposes of the computation of the Basket Amount. The Basket Amount so determined is communicated via electronic
mail message to all Authorized Participants and made available on the Sponsor&rsquo;s website for the Shares. The Exchange also publishes
the Basket Amount determined by the Administrator as indicated above.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trust may either create
and redeem Shares in-kind for bitcoin (In-Kind Creations and In-Kind Redemptions, respectively) or for cash (Cash Creations and Cash
Redemptions respectively). When the Trust creates or redeems its Shares, it does so in blocks of 10,000 Shares (each, a Basket) 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 (10,000) comprising a Basket (the Basket Amount).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In connection with an order
to purchase Shares pursuant to an In-Kind Creation (an In-Kind Creation Order), an Authorized Participant shall deliver or cause to be
delivered by an Authorized Participant Designee to the Bitcoin Custodian the amount of bitcoin represented by the Basket Amount. In connection
with an order to purchase Shares pursuant to a Cash Creation (a Cash Creation Order, and, with In-Kind Creation Orders, Creation Orders),
an Authorized Participant shall deliver to the Transfer Agent the amount of U.S. dollars needed to purchase the Basket Amount of bitcoin,
as well as the per-order transaction fee.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In connection with an order
to redeem Shares, an Authorized Participant shall deliver to the Trust&rsquo;s account at DTC the Basket(s) to be redeemed. To the extent
such redemption order indicated that the redemption was to be done as an In-Kind Redemption (an &ldquo;In-Kind Redemption Order&rdquo;),
the Sponsor shall arrange for a Basket Amount of bitcoin to distributed to an bitcoin account designated by the Authorized Participant
or Authorized Participant Designee. To the extent such redemption order indicated that the redemption was to be done as a Cash Redemption
(a Cash Redemption Order, and, with In-Kind Redemption Orders, Redemption Orders), the Sponsor shall arrange for the Basket Amount of
bitcoin to be sold and the resulting U.S. dollars to be distributed to the Authorized Participant.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>Authorized Participants</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">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 bitcoin, 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 Creation Order or Redemption Order they
place. 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 or responsibility to the Sponsor or the Trust
to effect any sale or resale of Shares.</P>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Each Authorized Participant
will be 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.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Under the Authorized Participant
Agreement, the Sponsor, and the Trust under limited circumstances, have agreed to indemnify the Authorized Participants against certain
liabilities, including liabilities under the 1933 Act, and to contribute to the payments the Authorized Participants may be required
to make in respect of those liabilities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The following description
of the procedures for the creation and redemption of Baskets is only a summary and an investor should refer to the relevant provisions
of the Trust Agreement and the form of Authorized Participant Agreement for more detail. The Trust Agreement and form of Authorized Participant
Agreement are filed as exhibits to the registration statement of which this Prospectus is a part.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">Creation Procedures</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">On any business day, an Authorized
Participant may create Shares by placing a Creation Order to purchase one or more Baskets with the Transfer Agent through the Marketing
Agent in exchange for bitcoin or cash. Such orders are subject to approval by the Marketing Agent and Transfer Agent. Such orders are
subject to approval by the Marketing Agent and Transfer Agent. For purposes of processing Creation Orders and Redemption Orders, a &ldquo;business
day&rdquo; means any day other than a day when the Exchange is closed for regular trading. Creation Orders must be placed by 3:59 p.m.,
ET or the close of regular trading on the Exchange, whichever is earlier, for In-Kind Creation Orders, or 2:00 p.m., ET, or the close
of regular trading on the Exchange, whichever is earlier for Cash Creation Orders (the &ldquo;Order Cut-Off Time&rdquo;). The Order Cut-Off
Time may be modified by the Sponsor in its sole discretion. The day on which a Creation Order is accepted by the Transfer Agent is considered
the &ldquo;Creation Order Date.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Sponsor may in its sole
discretion limit the number of Shares created pursuant to Creation Orders on any specified day without notice to the Authorized Participants
and may direct the Marketing Agent to reject any Creation Orders in excess of such capped amount. The Sponsor may choose to limit the
number of Shares created pursuant to Creation Orders when it deems so doing to be in the best interest of Shareholders. It may choose
to do so when it believes the market is too volatile to execute an bitcoin transaction, when it believes the price of bitcoin is being
inconsistently, irregularly, or discontinuously published from bitcoin trading venues and other data sources, or when it believes other
similar circumstances may create a scenario in which accepting Creation Orders would not be in the best interests of the Shareholders.
The Sponsor does not believe that the Trust&rsquo;s ability to arrive at such a determination will have a significant impact on the Shares
in the secondary market because it believes that the ability to create Shares would be reinstated shortly after such determination is
made, and any entity desiring to create Shares would be able to do so once the ability to create Shares is reinstated. However, it is
possible that such a determination would cause the Shares to trade at premiums or discounts relative to the Trust&rsquo;s NAV on the
secondary market if arbitrageurs believe that there is risk that the creation and redemption process is not available, as this process
is a component of keeping the price of the Shares on the secondary market closely aligned to the Trust&rsquo;s NAV. The manner by which
creations are made is dictated by the terms of the Authorized Participant Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">By placing an In-Kind Creation
Order, an Authorized Participant agrees to facilitate (either directly or through an Authorized Participant Designee) the deposit of
bitcoin with the Bitcoin Custodian. An Authorized Participant who places an In-Kind Creation Order is responsible for facilitating the
delivery of the required amount of bitcoin to the Trust Bitcoin Account at the Bitcoin Custodian by 3:00 p.m. ET, on the business day
following the Creation Order Date. The Authorized Participant or Authorized Participant Designee will normally send the required bitcoin
in an &ldquo;on chain&rdquo; transaction over the Bitcoin network. Such on chain transactions are subject to the risks associated with
Bitcoin network transactions, including the irreversibility of transactions made in error or unavoidable delays due to Bitcoin network
congestion. Upon receipt of the required amount of bitcoin in the Trust Bitcoin Account at the Bitcoin Custodian, the Bitcoin Custodian
will notify the Transfer Agent, the Distributor, the Authorized Participant and the Sponsor that the bitcoin has been deposited. The
Transfer Agent will then direct DTC to credit the number of Shares created to the Authorized Participant&rsquo;s DTC account.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">By placing a Cash Creation
Order, an Authorized Participant agrees to deposit, or cause the deposit of, cash with the Trust in an equivalent amount of cash equal
to the required amount of bitcoin as described above, multiplied by the BRRNY price, plus any additional cash required to account for
the price at which the Trust agrees to purchase the requisite amount of bitcoin to the extent it is greater than the BRRNY price on each
Creation Order Date. On each Creation Order Date, the Administrator will communicate to the Authorized Participant the full cash amount
required to settle the transaction. Authorized Participants may not withdraw a creation request. If an Authorized Participant fails to
consummate the foregoing, the Creation Order will be cancelled. The Sponsor causes to be published each night the amount of bitcoin that
will be acquired in exchange for each Creation Order, from which can be computed the estimated amount of cash required to create each
Basket, prior to accounting for any additional cash required to acquire the requisite amount of bitcoin if the price paid by the Trust
is in excess of the BRRNY on each Creation Order Date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">An Authorized Participant
who places a Cash Creation Order is responsible for facilitating the delivery of the required amount of cash to the Cash Custodian by
3:00 p.m. ET, on the business day following the Creation Order Date. Pursuant to a Cash Creation, the Trust is responsible for acquiring
bitcoin, which it may do pursuant to two different models: (i) the &ldquo;Trust-Directed Trade Model,&rdquo; and the (ii) the &ldquo;Agent
Execution Model.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Under the Trust-Directed
Trade Model, the Sponsor, on behalf of the Trust, is responsible for acquiring bitcoin from an approved Bitcoin Trading Counterparty
in an amount equal to the Basket Amount. When seeking to purchase bitcoin on behalf of the Trust, the Sponsor will seek to purchase bitcoin
at a price as close to the BRRNY as practical. Once the trade has been agreed upon with a Bitcoin Trading Counterparty, the transaction
will generally occur on an &ldquo;over-the-counter&rdquo; basis. Transfers of bitcoin from the Bitcoin Trading Counterparty to the Trust
Bitcoin Account are &ldquo;on-chain&rdquo; transactions represented on the Bitcoin network. Upon receipt of the deposit amount of bitcoin
in the Trust Bitcoin Account at the Bitcoin Custodian from the Bitcoin Trading Counterparty, the Bitcoin Custodian will notify the Sponsor
that the bitcoin has been received. The Sponsor will then notify the Transfer Agent that the bitcoin has been received, and the Transfer
Agent will direct DTC to credit the number of Shares ordered to the Authorized Participant&rsquo;s DTC account and will wire the cash
previously sent by the Authorized Participant to the Bitcoin Trading Counterparty to complete settlement of the Cash Creation Order and
the acquisition of the bitcoin by the Trust. If the Bitcoin Trading Counterparty fails to deliver the bitcoin to the Bitcoin Custodian,
no cash is sent from the Cash Custodian to the Bitcoin Trading Counterparty, no Shares are transferred to the Authorized Participant&rsquo;s
DTC account, the cash is returned to the Authorized Participant, and the Cash Creation Order is cancelled.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Under the Agent Execution
Model, the Prime Execution Agent, acting in an agency capacity, conducts bitcoin purchases on behalf of the Trust with third parties
through its Coinbase Prime service pursuant to the Prime Execution Agreement. On the evening of the Creation Order Date, the Trust enters
into a transaction to buy bitcoin through the Prime Execution Agent for cash. Because the Trust&rsquo;s Trading Balance may not be funded
with cash on the Creation Order Date for the purchase of bitcoin in connection with the Cash Creation Order under the Agent Execution
Model, the Trust may borrow Trade Credits in the form of cash from the Trade Credit Lender pursuant to the Trade Financing Agreement
or may require the Authorized Participant to deliver the required cash for the Cash Creation Order on the Creation Order Date. The extension
of Trade Credits on the Creation Order Date allows the Trust to purchase bitcoin through the Prime Execution Agent on the Creation Order
Date, with such bitcoin being deposited in the Trust&rsquo;s Trading Balance. On the day following the Creation Order Date, the &ldquo;Creation
Order Settlement Date,&rdquo; the Trust delivers Shares to the Authorized Participant&rsquo;s DTC account in exchange for cash received
from the Authorized Participant. Where applicable, the Trust uses the cash to repay the Trade Credits borrowed from the Trade Credit
Lender. On the Creation Order Settlement Date for a Cash Creation Order utilizing the Agent Execution Model, the bitcoin associated with
the Creation Order and purchased on the Creation Order Date is swept from the Trust&rsquo;s Trading Balance with the Prime Execution
Agent to the Trust Bitcoin Account with the Bitcoin Custodian pursuant to a regular end-of-day sweep process. Transfers of bitcoin into
the Trust&rsquo;s Trading Balance are off-chain transactions and transfers from the Trust&rsquo;s Trading Balance to the Trust Bitcoin
Account are &ldquo;on-chain&rdquo; transactions represented on the Bitcoin network. Any financing fee owed to the Trade Credit Lender
is deemed part of trade execution costs and embedded in the trade price for each transaction.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">As between the Trust and
the Authorized Participant, the expense and risk of the difference between the value of bitcoin calculated by the Administrator for daily
valuation using the BRRNY and the price at which the Trust acquires the bitcoin will be borne solely by the Authorized Participant to
the extent that the Trust pays more for bitcoin than the price used by the Trust for daily valuation. Any such additional cash amount
will be included in the amount of cash calculated by the Administrator on the Creation Order Date, communicated to the Authorized Participant
on the Creation Order Date, and wired by the Authorized Participant to the Cash Custodian on the Creation Order Settlement Date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">Rejection of Creation Orders</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Sponsor or its designee
has the absolute right, but does not have any obligation, to reject any Creation Order or deposit of cash or bitcoin for any reason,
including if the Sponsor determines that:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">the Creation Order is not
                                            in proper form;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">it would not be in the best
                                            interest of the Shareholders;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">the acceptance of the Creation
                                            Order would have adverse tax consequences to the Trust or its Shareholders;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">the acceptance or receipt
                                            of which would, in the opinion of counsel to the Sponsor, be unlawful; or</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">circumstances outside the
                                            control of the Trust, the Sponsor, the Marketing Agent, the Transfer Agent, the Cash Custodian
                                            or the Bitcoin Custodian make it, for all practical purposes, not feasible to process Baskets
                                            (including if the Sponsor determines that the investments available to the Trust at that
                                            time will not enable it to meet its investment objective).</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">None of the Sponsor, the
Marketing Agent, the Cash Custodian or the Bitcoin Custodian will be liable for the rejection of any Creation Order.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">Redemption Procedures</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">On any business day, an Authorized
Participant may place a Redemption Order with the Transfer Agent through the Marketing Agent to redeem one or more Baskets. Redemption
Orders must be placed by 3:59 p.m., ET or the close of regular trading on the Exchange, whichever is earlier, for In-Kind Redemption
Orders, or 2:00 p.m., ET, or the close of regular trading on the Exchange, whichever is earlier for Cash Redemption Orders (the &ldquo;Redemption
Order Cut-Off Time&rdquo;). The Redemption Order Cut-Off Time may be modified by the Sponsor in its sole discretion. A Redemption Order
will be effective on the date it is accepted by the Transfer Agent (&ldquo;Redemption Order Date&rdquo;). The redemption distribution
from the Trust in exchange for a redemption of Shares consists of a movement of the Basket Amount of bitcoin or cash representing the
Basket Amount of bitcoin, less any trading expenses incurred by the Trust in liquidating the bitcoin, to the redeeming Authorized Participant
or its designee. An Authorized Participant may not withdraw a Redemption Order without the prior consent of the Sponsor in its discretion.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In the case of an In-Kind
Redemption Order, the redemption distribution from the Trust consists of a movement of bitcoin to the designated wallet address of the
Authorized Participant or Authorized Participant Designee. The Authorized Participant must deliver the Shares represented by the Basket
to be redeemed to the Trust&rsquo;s DTC account by end of day ET on the business day following the Redemption Order Date (the &ldquo;Redemption
Order Settlement Date&rdquo;). Once the Authorized Participant has delivered the Shares represented by the Basket to be redeemed to the
Trust&rsquo;s DTC account and the Transfer Agent has notified the Bitcoin Custodian, Distributor and Sponsor that the Shares have been
deposited, the Sponsor will cause the requisite amount of bitcoin to the Authorized Participant or Authorized Participant Designee. This
transfer of bitcoin from the Trust to the Authorized Participant or Authorized Participant Designee will normally be done pursuant to
an &ldquo;on chain&rdquo; transaction over the Bitcoin network. Such on chain transactions are subject to the risks associated with Bitcoin
network transactions, including the irreversibility of transactions made in error or unavoidable delays due to Bitcoin network congestion.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Under the Trust-Directed
Trade Model pursuant to a Cash Redemption Order, the procedures by which an Authorized Participant can redeem one or more Baskets mirror
the procedures for the creation of Baskets under the Trust-Directed Trade Model with an additional safeguard on bitcoin being removed
from the Trust Bitcoin Account, which will not occur until cash has been received by the Cash Custodian in an amount equal to the Basket
Amount of bitcoin multiplied by the price at which the Trust agrees with the Bitcoin Trading Counterparty to sell the bitcoin on the
Redemption Order Date. When seeking to sell bitcoin on behalf of the Trust, the Sponsor will seek to sell bitcoin at a price as close
to the BRRNY as practical. Once the trade has been agreed upon with a Bitcoin Trading Counterparty, the transaction will generally occur
on an &ldquo;over-the-counter&rdquo; basis. Transfers of bitcoin from the Trust Bitcoin Account to the Bitcoin Trading Counterparty are
&ldquo;on-chain&rdquo; transactions represented on the Bitcoin network. The Authorized Participant must deliver the Shares represented
by the Basket to be redeemed to the Trust&rsquo;s DTC account by end of day ET on the Redemption Order Settlement Date. The Bitcoin Custodian
will not send the Basket Amount of bitcoin from the Trust Bitcoin Account to the Bitcoin Trading Counterparty until the Cash Custodian
has received the cash from the Bitcoin Trading Counterparty and is instructed by the Sponsor to make such transfer. Once the Bitcoin
Trading Counterparty has sent the cash to the Cash Custodian in an agreed-upon amount to settle the agreed upon sale of the Basket Amount
of bitcoin, the Transfer Agent will notify the Sponsor. The Sponsor will then notify the Bitcoin Custodian to transfer the bitcoin to
the Bitcoin Trading Counterparty, and the Transfer Agent will facilitate the redemption of Shares in exchange for cash. Once the Authorized
Participant has delivered the Shares represented by the Basket to be redeemed to the Trust&rsquo;s DTC account, the Cash Custodian will
wire the requisite amount of cash to the Authorized Participant. Transfers of bitcoin from the Trust Bitcoin Account to the Bitcoin Trading
Counterparty are &ldquo;on-chain&rdquo; transactions represented on the Bitcoin network. In the event that by the end of the day on the
Redemption Order Settlement Date, the Trust&rsquo;s account at DTC shall not have been credited with the total number of Shares corresponding
to the total number of Baskets to be redeemed pursuant to such Redemption Order the Transfer Agent shall send to the Authorized Participant,
the Sponsor and the Bitcoin Custodian via fax or electronic mail message notice of such fact and the Authorized Participant shall have
two (2) business days following receipt of such notice to correct such failure. If such failure is not cured within such two (2) business
day period, the Transfer Agent (in consultation with the Sponsor) will cancel such Redemption Order and will send via fax or electronic
mail message notice of such cancellation to the Authorized Participant and the Bitcoin Custodian, and the Authorized Participant will
be solely responsible for all costs incurred by the Trust, the Transfer Agent, the Sponsor or the Bitcoin Custodian related to the cancelled
Redemption Order.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Under the Agent Execution
Model pursuant to a Cash Redemption Order, the Authorized Participant may be required to submit a Redemption Order by an earlier than
normal order cutoff time (the &ldquo;Redemption Early Order Cutoff Time&rdquo;). The Redemption Early Order Cutoff Time may be as early
as 5:00 p.m. ET on the business day prior to Redemption Order Date. Once a Redemption Order is received, the Sponsor instructs the Bitcoin
Custodian to prepare to transfer the bitcoin associated with the Redemption Order from the Trust Bitcoin Account with the Bitcoin Custodian
to the Trust&rsquo;s Trading Balance with the Prime Execution Agent. For a Redemption Order utilizing the Agent Execution Model, on the
evening of the Redemption Order Date, the Prime Execution Agent, acting in an agency capacity, conducts bitcoin sales on behalf of the
Trust with third parties through its Coinbase Prime service in exchange for cash. The Trust&rsquo;s Trading Balance with the Prime Execution
Agent may not be funded with bitcoin on the evening of the Redemption Order Date at the time of the intended execution of the sale of
bitcoin in connection with the Redemption Order because such bitcoin is still in the Trust Bitcoin Account at the Bitcoin Custodian.
In those circumstances the Trust may borrow Trade Credits in the form of bitcoin from the Trade Credit Lender, which allows the Trust
to sell bitcoin through the Prime Execution Agent on the evening Redemption Order Date, and the cash proceeds are deposited in the Trust&rsquo;s
Trading Balance with the Prime Execution Agent. Such cash is then transferred to the Cash Custodian. The Trust will subsequently transfer
the Basket Amount of bitcoin from the Trust Bitcoin Account to the Trust&rsquo;s Trading Balance with the Prime Execution Agent. Once
the Authorized Participant has delivered the Shares represented by the Basket to be redeemed to the Trust&rsquo;s DTC account, the Cash
Custodian will then wire the requisite amount of cash to the Authorized Participant. In the event Trade Credits were used, the Trust
will use the bitcoin that is moved from the Trust Bitcoin Account with the Bitcoin Custodian to the Trading Balance with the Prime Execution
Agent to repay the Trade Credits borrowed from the Trade Credit Lender. Transfers of bitcoin from the Trust Bitcoin Account to the Trust&rsquo;s
Trading Balance are &ldquo;on-chain&rdquo; transactions represented on the Bitcoin network.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">Suspension or Rejection
of Redemption Orders</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Sponsor may, in its discretion,
suspend the right of creation or redemption or may postpone the Redemption Order Settlement Date, for (1) for any period during which
the Exchange is closed other than customary weekend or holiday closings, or trading on the Exchange is suspended or restricted, (2)&nbsp;any
period during which an emergency exists as a result of which the fulfillment of a creation order or the redemption distribution is not
reasonably practicable (for example, as a result of an interruption in services or availability of the Prime Execution Agent, Bitcoin
Custodian, Cash Custodian, Administrator, or other service providers to the Trust, act of God, catastrophe, civil disturbance, government
prohibition, war, terrorism, strike or other labor dispute, fire, force majeure, interruption in telecommunications, internet services,
or network provider services, unavailability of Fedwire, SWIFT or banks&rsquo; payment processes, significant technical failure, bug,
error, disruption or fork of the Bitcoin network, hacking, cybersecurity breach, or power, internet, or Bitcoin network outage, or similar
event), or (3) such other period as the Sponsor determines to be necessary for the protection of the Shareholders of the Trust (for example,
where acceptance of the U.S. dollars needed to create each Basket would have certain adverse tax consequences to the Trust or its Shareholders).
For example, the Sponsor may determine that it is necessary to suspend redemptions to allow for the orderly liquidation of the Trust&rsquo;s
assets. If the Sponsor has difficulty liquidating the Trust&rsquo;s positions (e.g., because of a market disruption event), it may be
appropriate to suspend redemptions until such time as such circumstances are rectified. None of the Sponsor, the person authorized to
take Redemption Orders in the manner provided in the Authorized Participant Agreement, the Bitcoin Custodian or the Cash Custodian will
be liable to any person or in any way for any loss or damages that may result from any such suspension or postponement.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Redemption Orders must be
made in whole Baskets. The Sponsor acting by itself or through the person authorized to take Redemption Orders in the manner provided
in the Authorized Participant Agreement may, in its sole discretion, reject any Redemption Order (1) the Sponsor determines not to be
in proper form, (2) the fulfillment of which its counsel advises may be illegal under applicable laws and regulations, or (3) if circumstances
outside the control of the Sponsor, the person authorized to take redemption orders in the manner provided in the Authorized Participant
Agreement or the Bitcoin Custodian make it for all practical purposes not feasible for the Shares to be delivered under the Redemption
Order. The Sponsor may also reject a Redemption Order if the number of Shares being redeemed would reduce the remaining outstanding Shares
to 100,000 Shares (<I>i.e.</I>, ten Baskets) or fewer.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">Creation and Redemption
Transaction Fee</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">To compensate the Transfer
Agent for expenses incurred in connection with the creation and redemption of Baskets, an Authorized Participant is required to pay a
transaction fee to the Transfer Agent to create or redeem Baskets, which does not vary in accordance with the number of Baskets in such
order. The transaction fee may be reduced, increased or otherwise changed by the Sponsor.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">Tax Responsibility</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Authorized Participants are
responsible for any transfer tax, sales or use tax, stamp tax, recording tax, value added tax or similar tax or governmental charge applicable
to the creation or redemption of Baskets, regardless of whether or not such tax or charge is imposed directly on the Authorized Participant,
and agree to indemnify the Sponsor and the Trust if they are required by law to pay any such tax, together with any applicable penalties,
additions to tax and interest thereon.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">Secondary Market Transactions</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">As discussed above, Authorized
Participants are the only persons that may place Creation Orders and Redemption Orders. Authorized Participants must be 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. An Authorized Participant is under no obligation to create or redeem Baskets, and an Authorized
Participant is under no obligation to offer to the public Shares of any Basket it does create.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Authorized Participants that
do offer to the public Shares from the Basket they create will do so at per-Share offering prices that are expected to reflect, among
other factors, the trading price of the Shares on the Exchange, the NAV of the Trust at the time the Authorized Participant purchased
the Baskets, the NAV of the Shares at the time of the offer of the Shares to the public, the supply of and demand for Shares at the time
of sale, and the liquidity of bitcoin or other portfolio investments. Baskets are generally expected to be redeemed when the price per
Share is at a discount to the NAV per Share. Shares initially comprising the same Basket but offered by Authorized Participants to the
public at different times may have different offering prices. An order for one or more Baskets may be placed by an Authorized Participant
on behalf of multiple clients. Authorized Participants who make deposits of bitcoin or cash with the Trust in exchange for Baskets receive
no fees, commissions or other forms of compensation or inducement of any kind from either the Trust or the Sponsor, and no such person
has any obligation or responsibility to the Sponsor or the Trust to effect any sale or resale of Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Shares are expected to trade
in the secondary market on the Exchange. Shares may trade in the secondary market at prices that are lower or higher relative to their
NAV per Share. The amount of the discount or premium in the trading price relative to the NAV per Share may be influenced by various
factors, including the number of investors who seek to purchase or sell Shares in the secondary market and the liquidity of bitcoin.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center"><A NAME="a_013"></A>Use
of Proceeds</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Proceeds received by the
Trust in connection with the issuance of Baskets consist of bitcoin and cash. Deposits of bitcoin received by the Trust pursuant to an
In-Kind Creation are held by the Bitcoin Custodian on behalf of the Trust until (i) delivered out in connection with an In-Kind Redemption
of Baskets or (ii) caused to be transferred or sold by the Sponsor to pay fees due to the Sponsor and Trust expenses and liabilities
not assumed by the Sponsor. Deposits of cash proceeds received by the Trust in connection with Cash Creation Orders will be used to acquire
bitcoin. Such deposits of cash are held by the Cash Custodian on behalf of the Trust until (i) used to acquire bitcoin, (ii) accrued
and distributed to pay Trust expenses and liabilities not assumed by the Sponsor, (iii) distributed to Authorized Participants in connection
with Cash Redemptions of Baskets, or (iv) disposed of in a liquidation of the Trust.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In the event that the Trust
is terminated and its assets are to be liquidated, all of the Trust&rsquo;s bitcoin will be sold and the cash proceeds will be distributed
to Shareholders. Under no circumstances will the Trust distribute bitcoin to Shareholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>


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<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center"><A NAME="a_014"></A>Ownership
or Beneficial Interest in the Trust</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The beneficial interest in
the Trust is divided into Shares. Each Share of the Trust represents an equal beneficial interest in the net assets of the Trust, and
each holder of Shares is entitled to receive such holder&rsquo;s pro rata share of distributions of income and capital gains, if any.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">All Shares are fully paid
and non-assessable. No Share will have any priority or preference over any other Share of the Trust. All distributions, if any, will
be made ratably among all Shareholders from the assets of the Trust according to the number of Shares held of record by such Shareholders
on the record date for any distribution or on the date of termination of the Trust, as the case may be. Except as otherwise provided
by the Sponsor, Shareholders will have no preemptive or other right to subscribe to any additional shares or other securities issued
by the Trust.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Sponsor will have full
power and authority, in its sole discretion, without seeking the approval of the Trustee or the Shareholders (a) to establish and designate
and to change in any manner and to fix such preferences, voting powers, rights, duties and privileges of the Trust as the Sponsor may
from time to time determine, (b) to divide the beneficial interest in the Trust into an unlimited amount of Shares, with or without par
value, as the Sponsor will determine, (c) to issue Shares without limitation as to number (including fractional Shares), to such persons
and for such amount of consideration, subject to any restriction set forth in the By-Laws, if any, at such time or times and on such
terms as the Sponsor may deem appropriate, (d) to divide or combine the Shares into a greater or lesser number without thereby materially
changing the proportionate beneficial interest of the Shares in the assets held, and (e) to take such other action with respect to the
Shares as the Sponsor may deem desirable. The ownership of Shares will be recorded on the books of the Trust or a transfer or similar
agent for the Trust. No certificates certifying the ownership of Shares will be issued except as the Sponsor may otherwise determine
from time to time. The Sponsor may make such rules as it considers appropriate for the issuance of share certificates, transfer of Shares
and similar matters. The record books of the Trust as kept by the Trust, or any transfer or similar agent, as the case may be, will be
conclusive as to the identity of the Shareholders and as to the number of Shares held from time to time by each.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center"><A NAME="a_015"></A>Conflicts
of Interest</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">There are present and potential
future conflicts of interest in the Trust&rsquo;s structure and operation you should consider before you purchase Shares. The Sponsor
will use this notice of conflicts as a defense against any claim or other proceeding made. If the Sponsor is not able to resolve these
conflicts of interest adequately, it may impact the Trust&rsquo;s ability to achieve its investment objectives.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The officers, directors and
employees of the Sponsor do not devote their time exclusively to the Trust. These persons are directors, officers or employees of other
entities, or otherwise work in respect of other clients, which may compete with the Trust for their services. They could have a conflict
between their responsibilities to the Trust and to those other entities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Sponsor has adopted policies
and procedures that identify the conflicts of interest associated with these companies and their principals, officers, directors and
employees when and if trading bitcoin, bitcoin futures and related contracts or other bitcoin-linked derivatives. These policies are
intended to prevent conflicts of interest occurring where the Sponsor or their principals, officers, directors or employees could give
preferential treatment to their own accounts or trade their own accounts ahead of or against the Trust. Pursuant to these policies, all
principals, officers, directors and employees of the Sponsor, and their family members, must receive prior written clearance from the
Sponsor&rsquo;s chief compliance officer before entering in a transaction in bitcoin, bitcoin futures or any other bitcoin-linked derivative
equal if such transaction exceeds $4,999 in current market value. To the extent any such transaction constitutes a purchase of bitcoin,
bitcoin futures or other bitcoin-linked derivative exceeds $4,999 in current market value, the policies require that such bitcoin, bitcoin
futures or bitcoin-linked derivative must be held for 60 days before it can be traded or sold.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Sponsor has sole current
authority to manage the investments and operations of the Trust, and this may allow it to act in a way that furthers its own interests
which may create a conflict with a Shareholder&rsquo;s best interests. Except as required under applicable federal law or under the rules
or regulations of an Exchange, Shareholders have no voting rights, which will limit their ability to influence matters such as amendment
of the Trust Agreement, change in the Trust&rsquo;s basic investment policy, dissolution of the Trust, or the sale or distribution of
the Trust&rsquo;s assets.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Sponsor serves as the
sponsor to the Trust. The Sponsor may have a conflict to the extent that its trading decisions for the Trust may be influenced by the
effect they would have on the other funds it manages, including but not limited to the Bitwise Ethereum ETF, Bitwise 10 Crypto Index
Fund, LLC, the Bitwise 10 Index Offshore Fund Ltd., the Digital Asset Index Fund, the Bitwise Bitcoin Fund, LLC, the Bitwise Ethereum
Fund, LLC and the Bitwise DeFi Crypto Index Fund. In addition, the Sponsor may be required to indemnify its officers, directors and key
employees with respect to their activities on behalf of the other funds, if the need for indemnification arises. This potential indemnification
could cause the Sponsor&rsquo;s assets to decrease. If the Sponsor&rsquo;s other sources of income are not sufficient to compensate for
the indemnification, it could cease operations, which could in turn result in Trust losses and/or termination of the Trust.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">If the Sponsor acquires knowledge
of a potential transaction or arrangement that may be an opportunity for the Trust, it will have no duty to offer such opportunity to
the Trust. The Sponsor will not be liable to the Trust or the Shareholders for breach of any fiduciary or other duty if Sponsor pursues
such opportunity or directs it to another person or does not communicate such opportunity to the Trust. Neither the Trust nor any Shareholder
has any rights or obligations by virtue of the Trust Agreement, the trust relationship created thereby, or this Prospectus in such business
ventures or the income or profits derived from such business ventures. The pursuit of such business ventures, even if competitive with
the activities of the Trust, will not be deemed wrongful or improper.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">Resolution of Conflicts
Procedures</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trust Agreement provides
that whenever a conflict of interest exists between the Sponsor or any of its affiliates, on the one hand, and the Trust or any Shareholders
or any other person, on the other hand, the Sponsor will resolve such conflict of interest considering the relative interest of each
party (including its own interest) and the benefits and burdens relating to such interests, any customary or accepted industry practices,
and any applicable accepted accounting practices or principles.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center"><A NAME="a_016"></A>Fiduciary
and Regulatory Duties AND OBLIGATIONS of the Sponsor</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The general fiduciary duties
which would otherwise be imposed on the Sponsor (which would make its operation of the Trust as described herein impracticable due to
the strict prohibition imposed by such duties on, for example, conflicts of interest on behalf of a fiduciary in its dealings with its
beneficiaries), are defined and limited in scope by the terms of the Trust Agreement (to which terms all Shareholders, by subscribing
to the Shares, are deemed to consent).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Additionally, under the Trust
Agreement, the Sponsor has the following obligations as a sponsor of the Trust:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">Execute, file, record and/or
                                            publish all certificates, statements and other documents and do any and all other things
                                            as may be appropriate for the formation, qualification and operation of the Trust and for
                                            the conduct of its business in all appropriate jurisdictions;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">Retain independent public
                                            accountants to audit the accounts of the Trust;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">Employ attorneys to represent
                                            the Trust;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">Select the Trust&rsquo;s Trustee,
                                            administrator, transfer agent, custodian(s), digital asset trading platform counterparties
                                            and OTC market participant counterparties, BRRNY Benchmark Provider, marketing agent(s);
                                            insurer(s) and any other service provider(s) and cause the Trust to enter into contracts
                                            with such service provider(s);</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">Negotiate and enter into insurance
                                            agreements to secure and maintain the insurance coverage to the extent described in the Prospectus;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">Develop a marketing plan for
                                            the Trust on an ongoing basis and prepare marketing materials regarding the Trust;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">Maintain the Trust&rsquo;s
                                            website;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">Acquire and sell bitcoin,
                                            subject in each instance to the limitations imposed by the Trust Agreement, with a view to
                                            providing Shareholders with exposure to the value of bitcoin held by the Trust, less the
                                            expenses of the Trust&rsquo;s operations, valuing the Trust&rsquo;s net assets and the Shares
                                            daily with reference to the BRRNY, or any other pricing methodology adopted by the Sponsor
                                            in its discretion (for the avoidance of doubt, the Sponsor may select such subsequent pricing
                                            methodology without Shareholder approval);</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">In connection with a hard
                                            fork of the Bitcoin network to which the Sponsor has actual knowledge, determine, in good
                                            faith, whether the digital asset network running the modified or the extant Bitcoin network
                                            software is generally accepted to be the Bitcoin network and should therefore be considered
                                            to be Bitcoin for the purposes of the Trust&rsquo;s ongoing operations;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">Enter into an Authorized Participant
                                            Agreement with each Authorized Participant and discharge the duties and responsibilities
                                            of the Trust and the Sponsor thereunder;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">Receive directly or through
                                            its delegates from Authorized Participants and process or cause its delegates to process
                                            properly submitted Creation Orders, as described in the Trust Agreement and in the Authorized
                                            Participant Agreement;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">In connection with an In-Kind
                                            Creation Orders, to receive from Authorized Participants directly or through its delegates
                                            the required amount of bitcoin;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">In connection with Cash Creation
                                            Orders, to receive from Authorized Participants directly or through its delegates the required
                                            amount of cash;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">In connection with Creation
                                            Orders, after accepting a Creation Order and receiving the required amount of bitcoin or
                                            cash, as applicable, either directly or through its delegates to direct the Transfer Agent
                                            to credit the Baskets to fill the Creation Order within one (1) business day immediately
                                            following the Creation Order Date;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">Receive directly or through
                                            its delegates from Authorized Participants and process or cause its delegates to process
                                            properly submitted Redemption Orders, as described in the Trust Agreement and in the Authorized
                                            Participant Agreement;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">Assist in the preparation
                                            and filing of reports and proxy statements (if any) to the Shareholders, the periodic updating
                                            of the Registration Statement and Prospectus and other reports and documents for the Trust
                                            required to be filed by the Trust with the SEC and other governmental bodies;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">Use its best efforts to maintain
                                            the status of the Trust as a grantor trust for U.S. federal income tax purposes, including
                                            making such elections, filing such tax returns, and preparing, disseminating and filing such
                                            tax reports, as it is advised by its counsel or accountants are from time to time required
                                            by any statute, rule or regulation of the U.S., any State or political subdivision thereof,
                                            or other jurisdiction having taxing authority in respect of the Trust or its administration.
                                            The expense of accountants employed to prepare such tax returns and tax reports will be an
                                            expense of the Trust.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">Monitor all fees charged to
                                            the Trust, and the services rendered by the service providers to the Trust, to determine
                                            whether the fees paid by, and the services rendered to, the Trust are at competitive rates
                                            and are the best price and services available under the circumstances, and if necessary,
                                            renegotiate the fee structure to obtain such rates and services for the Trust;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">Perform such other services
                                            as the Sponsor believes the Trust may from time to time require; and</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">In general, to carry out any
                                            other business in connection with or incidental to any of the foregoing powers, to do everything
                                            necessary, suitable or proper for the accomplishment of any purpose or the attainment of
                                            any object or the furtherance of any power herein set forth, either alone or in association
                                            with others, and to do every other act or thing incidental or appurtenant or growing out
                                            of or connected with the aforesaid business or purposes, objects or powers.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">To the extent that a law
(common or statutory) or in equity, the Sponsor has duties (including fiduciary duties) and liabilities relating thereto to the Trust,
the Shareholders or to any other person, the Sponsor will not be liable to the Trust, the Shareholders or to any other person for its
good faith reliance on the provisions of the Trust Agreement or this Prospectus unless such reliance constitutes gross negligence, bad
faith, or willful misconduct on the part of the Sponsor.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>


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    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
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<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center"><A NAME="a_017"></A>Liability
and Indemnification</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">Trustee</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trustee will not be liable
for the acts or omissions of the Sponsor, nor will the Trustee be liable for supervising or monitoring the performance and the duties
and obligations of the Sponsor or the Trust under the Trust Agreement. The Trustee will not be personally liable under any circumstances,
except for its own willful misconduct, bad faith or gross negligence. In particular, but not by way of limitation:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: 0.25in; text-align: justify">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the
Trustee will not be personally liable for any error of judgment made in good faith except to the extent such error of judgment constitutes
gross negligence on its part;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="text-indent: 0.25in; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;no
provision of the Trust Agreement will require the Trustee to expend or risk its personal funds or otherwise incur any financial liability
in the performance of its rights or powers hereunder, if the Trustee shall have reasonable grounds for believing that the payment of
such funds or adequate indemnity against such risk or liability is not reasonably assured or provided to it;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="text-indent: 0.25in; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;under
no circumstances will the Trustee be personally liable for any representation, warranty, covenant, agreement, or indebtedness of the
Trust;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="text-indent: 0.25in; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the
Trustee will not be personally responsible for or in respect of the validity or sufficiency of the Trust Agreement or for the due execution
hereof by the Sponsor;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="text-indent: 0.25in; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the
Trustee will incur no liability to anyone in acting upon any signature, instrument, notice, resolution, request, consent, order, certificate,
report, opinion, bond or other document or paper reasonably believed by it to be genuine and reasonably believed by it to be signed by
the proper party or parties. The Trustee may accept a certified copy of a resolution of any governing body of any corporate party as
conclusive evidence that such resolution has been duly adopted by such body and that the same is in full force and effect. As to any
fact or matter the manner of ascertainment of which is not specifically prescribed herein, the Trustee may for all purposes hereof rely
on a certificate, signed by an authorized officer of the Sponsor or any other corresponding directing party, as to such fact or matter,
and such certificate will constitute full protection to the Trustee for any action taken or omitted to be taken by it in good faith in
reliance thereon;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="text-indent: 0.25in; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;in
the exercise or administration of the trust hereunder, the Trustee (i) may act directly or through agents or attorneys pursuant to agreements
entered into with any of them, and the Trustee will not be liable for the default or misconduct of such agents or attorneys if such agents
or attorneys will have been selected by the Trustee in good faith and with due care and (ii) may consult with counsel, accountants and
other skilled persons to be selected by it in good faith and with due care and employed by it, and it will not be liable for anything
done, suffered or omitted in good faith by it in accordance with the advice or opinion of any such counsel, accountants or other skilled
persons;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="text-indent: 0.25in; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">(g)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;except
as expressly provided in Article III of the Trust Agreement, the Trustee acts solely as a trustee under the Trust Agreement and not in
its individual capacity, and all persons having any claim against the Trustee by reason of the transactions contemplated by the Trust
Agreement will look only to the Trust&rsquo;s property for payment or satisfaction thereof; and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="text-indent: 0.25in; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">(h)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the
Trustee will not be liable for punitive, exemplary, consequential, special or other similar damages under any circumstances.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trustee or any officer,
affiliate, director, employee, or agent of the Trustee (each, an &ldquo;Indemnified Person&rdquo;) will be entitled to indemnification
from the Sponsor or the Trust, to the fullest extent permitted by law, from and against any and all losses, claims, taxes, damages, reasonable
expenses, and liabilities (including liabilities under State or federal securities laws) of any kind and nature whatsoever (collectively,
&ldquo;Losses&rdquo;), to the extent that such Losses arise out of or are imposed upon or asserted against such Indemnified Persons with
respect to the creation, operation or termination of the Trust, the execution, delivery or performance of the Trust Agreement or the
transactions contemplated in the Trust Agreement; provided, however, that the Sponsor and the Trust will not be required to indemnify
any Indemnified Person for any Losses that are a result of the willful misconduct, bad faith or gross negligence of such Indemnified
Person. The obligations of the Sponsor and the Trust to indemnify the Indemnified Persons will survive the termination of the Trust Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">Sponsor</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Sponsor is not under
any liability to the Trust, the Trustee or any Shareholder for any action taken or for refraining from the taking of any action in good
faith pursuant to the Trust Agreement, or for errors in judgment or for depreciation or loss incurred by reason of the sale of any bitcoin
or other assets held in trust hereunder; provided, however, that this provision will not protect the Sponsor against any liability to
which it would otherwise be subject by reason of its own gross negligence, bad faith, or willful misconduct. The Sponsor may rely in
good faith on any paper, order, notice, list, affidavit, receipt, evaluation, opinion, endorsement, assignment, draft or any other document
of any kind prima facie properly executed and submitted to it by the Trustee, the Trustee&rsquo;s counsel or by any other Person for
any matters arising hereunder. The Sponsor will in no event be deemed to have assumed or incurred any liability, duty, or obligation
to any Shareholder or to the Trustee other than as expressly provided for herein. The Trust will not incur the cost of that portion of
any insurance which insures any party against any liability, the indemnification of which is herein prohibited.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In addition, as described
in the Trust Agreement, (i) whenever a conflict of interest exists or arises between the Sponsor or any of its Affiliates, on the one
hand, and the Trust, on the other hand; or (ii) whenever the Trust Agreement or any other agreement contemplated herein or therein provides
that the Sponsor will act in a manner that is, or provides terms that are, fair and reasonable to the Trust, the Sponsor will resolve
such conflict of interest, take such action or provide such terms, considering in each case the relative interest of each party (including
its own interest) to such conflict, agreement, transaction or situation and the benefits and burdens relating to such interests, and
any applicable generally accepted accounting practices or principles. In the absence of bad faith by the Sponsor, the resolution, action
or terms so made, taken or provided by the Sponsor will not constitute a breach of the Trust Agreement or any other agreement contemplated
herein or of any duty or obligation of the Sponsor at law or in equity or otherwise.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Sponsor and its shareholders,
members, directors, officers, employees, Affiliates and subsidiaries (each a &ldquo;Sponsor Indemnified Party&rdquo;) will be indemnified
by the Trust and held harmless against any loss, liability or expense incurred hereunder without gross negligence, bad faith, or willful
misconduct on the part of such Sponsor Indemnified Party arising out of or in connection with the performance of its obligations under
the Trust Agreement or any actions taken in accordance with the provisions of the Trust Agreement. Any amounts payable to a Sponsor Indemnified
Party under Section 4.06 of the Trust Agreement may be payable in advance or will be secured by a lien on the Trust. The Sponsor will
not be under any obligation to appear in, prosecute or defend any legal action that in its opinion may involve it in any expense or liability;
provided, however, that the Sponsor may, in its discretion, undertake any action that it may deem necessary or desirable in respect of
the Trust Agreement and the rights and duties of the parties hereto and the interests of the Shareholders and, in such event, the legal
expenses and costs of any such action will be expenses and costs of the Trust and the Sponsor will be entitled to be reimbursed therefor
by the Trust. The obligations of the Trust to indemnify the Sponsor Indemnified Parties will survive the termination of the Trust Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center"><A NAME="a_018"></A>Provisions
of Law</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">According to applicable law,
indemnification of the Sponsor is payable only if the Sponsor determined, in good faith, that the act, omission or conduct that gave
rise to the claim for indemnification was in the best interest of the Trust and the act, omission or activity that was the basis for
such loss, liability, damage, cost or expense was not the result of negligence or misconduct and such liability or loss was not the result
of negligence or misconduct by the Sponsor, and such indemnification or agreement to hold harmless is recoverable only out of the assets
of the Trust.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">Provisions of Federal and
State Securities Laws</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">This offering is made pursuant
to federal and state securities laws. The SEC and state securities agencies take the position that indemnification of the Sponsor that
arises out of an alleged violation of such laws is prohibited unless certain conditions are met.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">These conditions require
that no indemnification of the Sponsor or any underwriter for the Trust may be made in respect of any losses, liabilities or expenses
arising from or out of an alleged violation of federal or state securities laws unless: (i) there has been a successful adjudication
on the merits of each count involving alleged securities law violations as to the party seeking indemnification and the court approves
the indemnification; (ii) such claim has been dismissed with prejudice on the merits by a court of competent jurisdiction as to the party
seeking indemnification; or (iii) a court of competent jurisdiction approves a settlement of the claims against the party seeking indemnification
and finds that indemnification of the settlement and related costs should be made, provided that, before seeking such approval, the Sponsor
or other indemnitee must apprise the court of the position held by regulatory agencies against such indemnification. These agencies are
the SEC and the securities administrator of the State or States in which the plaintiffs claim they were offered or sold interests.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">Provisions of the 1933
Act and NASAA Guidelines</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Insofar as indemnification
for liabilities arising under the 1933 Act may be permitted to the Sponsor or its directors, officers, or persons controlling the Trust,
the Trust has been informed that the SEC and the various State administrators believe that such indemnification is against public policy
as expressed in the 1933 Act and the North American Securities Administrators Association, Inc. commodity pool guidelines and is therefore
unenforceable.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center"><A NAME="a_019"></A>Management;
Voting by Shareholders</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Except as required under
applicable federal law or under the rules or regulations of an Exchange, Shareholders shall have no voting rights hereunder (including
with respect to mergers, consolidations or conversions of the Trust or transfers to or domestication in any jurisdiction by the Trust
or any other matters that under the Delaware Act default voting rights are provided to holders of beneficial interests). The Shareholders
shall have the right to vote on other matters only as the Sponsor may consider desirable and so authorize in its sole discretion. To
the extent that federal or Delaware law is amended, modified or interpreted by rule, regulation, order, or no-action letter to (on a
mandatory basis) expand, eliminate or limit Shareholders&rsquo; right to vote on any specific matter, the Shareholders&rsquo; right to
vote shall be deemed to be amended, modified or interpreted in accordance therewith without further approval by the Sponsor or the Shareholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center"><A NAME="a_020"></A>Meetings</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Meetings of the Trust&rsquo;s
Shareholders may be called by the Sponsor for such purposes as may be prescribed by law or the Trust Agreement. All notices of meetings
will be sent or otherwise given to each Shareholder of record not less than seven nor more than one hundred twenty days before the date
of the meeting in the manner determined by the Sponsor. The notice will specify: (a) the place, date and hour of the meeting; and (b)
the general nature of the business to be transacted. Shareholders may vote in person, by proxy, or in any manner determined by the Sponsor
at any such meeting. Except when a larger quorum is required by applicable law or by the Trust Agreement, the presence (in person or
by ballot) of thirty-three and one-third percent (33 1/3%) of the Shares entitled to vote will constitute a quorum at a Shareholders&rsquo;
meeting. Any action taken by Shareholders may be taken without a meeting so long as Shareholders holding a majority of Shares entitled
to vote on the matter (or such larger proportion thereof as will be required by any express provision of this Trust Agreement or federal
law) or holding a majority (or such larger proportion as aforesaid) of the Shares entitled to vote separately on the matter consent to
the action in writing or by other electronic means. Such consent will be treated for all purposes as a vote taken at a meeting of Shareholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center"><A NAME="a_021"></A>Books
and Records</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trust keeps its books
of record and account at the office of the Sponsor located at 250 Montgomery Street, Suite 200, San Francisco, CA 94104, or at the offices
of the Administrator, or such office, including of an administrative agent, as it may subsequently designate upon notice. The books and
records are open to inspection by any person who establishes to the Trust&rsquo;s satisfaction that such person is a Shareholder upon
reasonable advance notice at all reasonable times during usual business hours of the Trust.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trust keeps a copy of
the Trust Agreement on file in the Sponsor&rsquo;s office which will be available for inspection by any Shareholder at all times during
its usual business hours upon reasonable advance notice.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>


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<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center"><A NAME="a_022"></A>Statements,
Filings, and Reports to Shareholders</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">After the end of each fiscal
year, the Sponsor will cause to be prepared an annual report for the Trust containing audited financial statements. The annual report
will be in such form and contain such information as will be required by applicable laws, rules and regulations and may contain such
additional information which the Sponsor determines shall be included. The annual report will be filed with the SEC and the Exchange
and will be distributed to such persons and in such manner, as is required by applicable laws, rules and regulations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Sponsor is responsible
for the registration and qualification of the Shares under the federal securities laws. The Sponsor will also prepare, or cause to be
prepared, and file any periodic reports or updates required under the Exchange Act. The Administrator will assist and support the Sponsor
in the preparation of such reports.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Administrator will make
such elections, file such tax returns, and prepare, disseminate and file such tax reports, as it is advised to by its counsel or accountants
or as required from time to time by any applicable statute, rule or regulation.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center"><A NAME="a_023"></A>Fiscal
Year</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The fiscal year of the Trust
is the calendar year. The Sponsor may select an alternate fiscal year.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center"><A NAME="a_024"></A>Governing
Law; Consent to Delaware Jurisdiction</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The rights of the Sponsor,
the Trust, DTC (as registered owner of the Trust&rsquo;s global certificate for Shares) and the Shareholders are governed by the laws
of the State of Delaware. The Sponsor, the Trust and DTC and, by accepting Shares, each DTC Participant and each Shareholder, consent
to the exclusive jurisdiction of the courts of the State of Delaware and any federal courts located in Delaware. Such consent is not
required for any person to assert a claim of Delaware jurisdiction over the Sponsor, the Trust. However, pursuant to the Trust Agreement,
this shall not apply to causes of action for violations of U.S. federal or state securities laws. Section 22 of the 1933 Act creates
concurrent jurisdiction for federal and state courts over all suits brought to enforce any duty or liability created by the 1933 Act
or the rules and regulations thereunder. Investors cannot waive compliance with the federal securities laws and the rules and regulations
thereunder.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center"><A NAME="a_025"></A>Legal
Matters</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">Litigation and Claims</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Within the past 5 years of
the date of this Prospectus, there have been no material administrative, civil or criminal actions against the Sponsor, the Trust or
any principal or affiliate of any of them. This includes any actions pending, on appeal, concluded, threatened, or otherwise known to
them.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">Legal Opinion</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Chapman and Cutler LLP has
advised the Sponsor in connection with the Shares being offered. Chapman and Cutler LLP also advises the Sponsor with respect to its
responsibilities as sponsor of, and with respect to matters relating to, the Trust. Certain opinions of counsel have been filed with
the SEC as exhibits to the Registration Statement of which this Prospectus is a part.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center"><A NAME="a_026"></A>Experts</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">KPMG LLP, 345 Park Avenue,
New York, New York 10154-0102, an independent registered public accounting firm, is hereby named as an expert in auditing and accounting.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The financial statements
incorporated in this Prospectus by reference to the Annual Report on Form 10-K for the year ended December 31, 2024 have been so incorporated
in reliance on the report of KPMG LLP.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>


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<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center"><A NAME="a_027"></A>Material
Contracts</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Fund Administration and Accounting Agreement</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Pursuant to the Fund Administration
and Accounting Agreement, the Administrator is generally responsible for the day-to-day administration of the Trust. The responsibilities
of the Administrator include (i) establishing appropriate expense accruals and compute expense ratios, maintaining expense files and
coordinating the payment of Trust approved invoices; (ii) calculating Trust approved income and per Share amounts required for periodic
distributions to be made by the Trust; (iii) calculating total return information; (iv) coordinating the Trust&rsquo;s annual audit;
(v) supplying various normal and customary portfolio and Trust statistical data as requested on an ongoing basis; and (vi) preparing
financial statements for the Trust.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The responsibilities of the
Administrator also include providing various valuation and computation accounting services for the Trust, including (i) maintaining certain
financial books and records for the Trust, including creation and redemptions books and records, and Trust accounting records; (ii) computing
the Trust&rsquo;s NAV; (iii)&nbsp;obtaining quotes from pricing services as directed and approved by the Sponsor, or if such quotes are
unavailable, then obtaining such prices from the Sponsor, and in either case, calculating the market value of the Trust&rsquo;s assets
in accordance with the Trust&rsquo;s valuation policies or guidelines; and (iv) transmitting or making available a copy of the daily
portfolio valuation to the Sponsor.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trust will indemnify
the Administrator and any affiliate of the Administrator (&ldquo;Indemnitees&rdquo;), and the Indemnitees will incur no liability for
its reliance upon (i) any law, act, regulation or interpretation of the same even though the same may thereafter have been altered, changed,
amended or repealed, (ii) the Trust&rsquo;s offering materials or documents (excluding information provided by the Administrator), (iii)
any instructions or (iv) any written opinion of legal counsel for the Trust or the Administrator, or arising out of transactions or other
activities of the Trust which occurred prior to the commencement of the Fund Administration and Accounting Agreement; provided however,
that the Trust shall not indemnify any Indemnitee for any losses arising out of the Indemnitees&rsquo; own bad faith, gross negligence
or willful misconduct in the performance of the Fund Administration and Accounting Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">This Fund Administration
and Accounting Agreement shall be effective commencing upon regulatory approval by the SEC permitting shares of the Trust to be offered
for sale, and, unless terminated pursuant to its terms, shall continue until 11:59 PM on the date which is the third anniversary of such
date (the &ldquo;Initial Term&rdquo;), at which time this Agreement shall terminate, unless renewed in accordance with the terms hereof.
The Fund Administration and Accounting Agreement shall automatically renew for successive terms of one (1) year each (each, a &ldquo;Renewal
Term&rdquo;), unless the Trust or the Administrator gives written notice to the other party of its intent not to renew and such notice
is received by the other party not less than ninety (90) days prior to the expiration of the Initial Term or the then-current Renewal
Term (a &ldquo;Non-Renewal Notice&rdquo;). In the event a party provides a Non-Renewal Notice, the Fund Administration and Accounting
Agreement shall terminate at 11:59 PM on the last day of the Initial Term or Renewal Term, as applicable.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Transfer Agency and Services Agreement</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Pursuant to the Transfer
Agency and Services Agreement, the Transfer Agent is generally responsible for the day-to-day administration of the Trust. The responsibilities
of the Transfer Agent include: (i) performing and facilitating the performance of creation and redemption of Baskets; (ii) preparing
and transmitting by means of DTC&rsquo;s book entry system payments for dividends and distributions on or with respect to the Shares,
if any, declared by the Trust; (iii) maintaining the record of the name and address of the Shareholder and the number of Shares issued
by the Trust and held by the Shareholder; and (iv) recording the issuance of Shares of the Trust and maintain a record of the total number
of Shares of the Trust which are outstanding and authorized, based upon data provided to it by the Trust.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Transfer Agency and Services
Agreement will have a one-year initial term and will automatically be renewed for successive one-year periods, unless terminated by either
party pursuant to the terms of the agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Bitcoin Custody Agreement</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Pursuant to the Bitcoin Custody
Agreement, the Bitcoin Custodian is responsible for providing the Trust with segregated cold wallet digital asset custody. The Trust&rsquo;s
assets with the Bitcoin Custodian are held in segregated wallets and are therefore not commingled with corporate or other customer assets.
The Bitcoin Custodian also segregates each of the accounts (comprising multiple wallets in some cases) that a client (such as the Trust)
may hold with the Bitcoin Custodian, and each such account&rsquo;s balance represents the account&rsquo;s on-chain balance, which can
be independently verified by the client or third-party auditors as needed. This approach applies to each asset supported by the Bitcoin
Custodian.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Private key materials are
generated and subsequently stored in a form whereby no private key is stored in a decrypted format. The private key materials are stored
within the Bitcoin Custodian&rsquo;s secure storage facilities within the U.S. and Europe. For security reasons, these exact locations
are never disclosed.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Personnel supporting key
operations are very limited and the Bitcoin Custodian requires a background check prior to onboarding, and where required, annually thereafter.
No single individual associated with the Bitcoin Custodian has access to full private keys. Private key decryption and subsequent transaction
signing instead require access to multiple systems and human operators in order to reconstitute a key and perform an on-chain transaction.
For security purposes, the Bitcoin Custodian does not disclose specifics around the roles and numbers of individuals involved in these
processes.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Bitcoin Custodian&rsquo;s
parent, Coinbase Global, maintains a commercial crime insurance policy of up to $320 million, which is intended to cover the loss of
client assets held by Coinbase Global and all of its subsidiaries, including the Bitcoin Custodian and the Prime Execution Agent (collectively,
the Coinbase Insureds), including from employee collusion or fraud, physical loss including theft, damage of key material, security breach
or hack, and fraudulent transfer.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Bitcoin Custodian maintains
an Internal Audit team that performs periodic internal audits over custody operations. SOC attestations are also performed on the Bitcoin
Custodian&rsquo;s services. The SOC 1 Type 2 and SOC 2 Type 2 reports produced cover private key management controls. A SOC 1 Type 2
report addresses the controls at a service organization that are likely to be relevant to user entities&rsquo; internal control over
financial reporting. A SOC 2 Type 2 report addresses controls at a service organization relevant to security, availability, processing
integrity, confidentiality, or privacy in order to support users&rsquo; evaluations of their own systems of internal control.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Bitcoin Custodian will
not be liable for any amount greater than the value of the supported digital assets on deposit in the Trust&rsquo;s custodial account(s)
at the time of the event giving rise to the liability, subject further to the maximum liability limit of $100 million for each cold storage
address.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Bitcoin Custody Agreement,
which is a part of the Prime Execution Agreement, was effective as of the Prime Execution Agreement&rsquo;s execution on July 29, 2023
and will remain in effect until terminated by either the Trust, the Bitcoin Custodian or the Prime Execution Agent. The Bitcoin Custodian
may terminate the Bitcoin Custody Agreement for any reason upon providing the applicable notice to the Trust, or immediately for &ldquo;Cause&rdquo;
(as defined in the Bitcoin Custody Agreement), including, among others, if the Trust: materially breaches the Prime Execution Agreement
and such breach remains uncured, undergoes a bankruptcy event, or fails to repay Trade Credits. The Bitcoin Custodian may terminate the
Bitcoin Custody Agreement for any reason upon providing 180 days&rsquo; notice to the Trust, or immediately for &ldquo;Cause&rdquo;.
The Bitcoin Custody Agreement forms a part of the Prime Execution Agreement, and is subject to the termination provisions in the Prime
Execution Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Neither the Sponsor nor the
Trust has given any instructions to the Bitcoin Custodian as it relates to Incidental Rights and/or IR Assets.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Prime Execution Agreement</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Pursuant to the Prime Execution
Agreement, the Trust&rsquo;s bitcoin holdings and cash holdings from time to time may be temporarily held with the Prime Execution Agent,
an affiliate of the Bitcoin Custodian, in the Trading Balance, for certain limited purposes, including in connection with creations and
redemptions of Baskets and the sale of bitcoin to pay Trust expenses not assumed by the Sponsor. The Sponsor may, in its sole discretion,
add or terminate prime execution agents at any time. The Sponsor may, in its sole discretion, change the prime execution agent for the
Trust, but it will have no obligation whatsoever to do so or to seek any particular terms for the Trust from other such prime execution
agents.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Within the Trust&rsquo;s
Trading Balance, the Prime Execution Agreement provides that the Trust does not have an identifiable claim to any particular bitcoin
(and cash). Instead, the Trust&rsquo;s Trading Balance represents an entitlement to a pro rata share of the bitcoin (and cash) the Prime
Execution Agent holds on behalf of customers who hold similar entitlements against the Prime Execution Agent. In this way, the Trust&rsquo;s
Trading Balance represents an omnibus claim on the Prime Execution Agent&rsquo;s bitcoin (and cash) held on behalf of the Prime Execution
Agent&rsquo;s customers. The Prime Execution Agent holds the bitcoin associated with customer entitlements across a combination of omnibus
cold wallets, omnibus &ldquo;hot wallets&rdquo; (meaning wallets whose private keys are generated and stored online, in Internet-connected
computers or devices) or in omnibus accounts in the Prime Execution Agent&rsquo;s name on a trading venue (including third-party venues
and the Prime Execution Agent&rsquo;s own execution venue) where the Prime Execution Agent executes orders to buy and sell bitcoin on
behalf of its clients.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Pursuant to the Prime Execution
Agreement, the Trust may engage in sales of bitcoin by placing orders with the Prime Execution Agent. The Prime Execution Agent will
route orders placed by the Sponsor through the prime execution agent execution platform (the &ldquo;Trading Platform&rdquo;) to a Connected
Trading Venue where the order will be executed. Each order placed by the Sponsor will be sent, processed and settled at each Connected
Trading Venue to which it is routed. The Prime Execution Agreement provides that the Prime Execution Agent is subject to certain conflicts
of interest, including: (i) the Trust&rsquo;s orders may be routed to the Prime Execution Agent&rsquo;s own execution venue where the
Trust&rsquo;s orders may be executed against other customers of the Prime Execution Agent or with the Coinbase acting as principal, (ii)
the beneficial identity of the counterparty purchaser or seller with respect to the Trust&rsquo;s orders may be unknown and therefore
may inadvertently be another client of the Prime Execution Agent, (iii) the Prime Execution Agent does not engage in front-running, but
is aware of the Trust&rsquo;s orders or imminent orders and may execute a trade for its own inventory (or the account of an affiliate)
while in possession of that knowledge and (iv) the Prime Execution Agent may act in a principal capacity with respect to certain orders.
As a result of these and other conflicts, when acting as principal, the Prime Execution Agent may have an incentive to favor its own
interests and the interests of its affiliates over the Trust&rsquo;s interests.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Prime Execution Agent
is permitted to suspend or terminate the Prime Execution Agreement under certain circumstances. The Prime Execution Agent, for itself
or as agent for the Bitcoin Custodian and Trade Credit Lender, may not terminate the Prime Execution Agreement (including the Bitcoin
Custody Agreement) or suspend, restrict terminate or modify the Prime Execution Agent Services (as such term is defined in the Agreement)
on less than 180 days&rsquo; notice, except in the event of (i) a Change in Law or (ii) a &ldquo;Cause&rdquo; event (as such term is
defined in the Agreement). The Prime Execution Agreement defines &ldquo;Prime Execution Agent Services&rdquo; as (i) the custody of the
Trust&rsquo;s bitcoin in the Trust Bitcoin Account, the processing of deposits and withdrawals and other custody transactions, (ii) access
to the Prime Execution Agent&rsquo;s trading platform and the execution and settlement of all orders for the sale of bitcoin submitted
by the Trust, and (iii) the extension of credit to the Trust by the Trade Credit Lender pursuant to the Trade Financing Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Prime Execution Agreement,
including the Bitcoin Custody Agreement, was effective as of its execution on July 29, 2023 and will remain in effect until terminated
by either the Trust or the Prime Execution Agent. The Trust may terminate the Prime Execution Agreement, including the Bitcoin Custody
Agreement, in whole or in part for any reason upon 30 days&rsquo; notice to the Prime Execution Agent, for itself or as agent on behalf
of the Bitcoin Custodian or Trade Credit Lender, or upon a Coinbase Termination Event. The Prime Execution Agreement defines a &ldquo;Coinbase
Termination Event&rdquo; to mean the occurrence and continuance of (i) a Bankruptcy Event with respect to any Coinbase Entity, (ii) the
failure of any Coinbase Entity to sell or withdraw or transfer the Trust&rsquo;s bitcoin in accordance with the Trust&rsquo;s instructions
within the time periods set forth in the Prime Execution Agreement and such failure is not cured within two (2) business days following
the Trust providing written notice to the relevant Coinbase Entity (&ldquo;CB Return Cure&rdquo;); provided, however, that (A) if, prior
to the expiration of the CB Return Cure, the Prime Execution Agent transfers cash to the Trust in an amount equal to the value of the
bitcoin based on the Benchmark Valuation (defined as the BRRNY) as of the time that the request to sell, transfer or withdraw was originally
made by the Trust (the &ldquo;BTC Cash Value&rdquo;) or if the Prime Execution Agent delivers cash collateral to an account designated
by the Trust and in which the Trust has a perfected, first priority security interest and in an amount equal to the BTC Cash Value until
the relevant bitcoin is sold, withdrawn or transferred or the Trust elects to receive such amount in cash in lieu of the Prime Execution
Agent&rsquo;s obligation to sell, withdraw or transfer the relevant bitcoin, in each cash, such failure will be deemed cured; provided,
further that, the Trust shall have the right to choose whether to receive the BTC Cash Value in lieu of the relevant bitcoin or receive
the BTC Cash Value as cash collateral, or (B) if such failure is due to a technology or security issue where, in the commercially reasonable
opinion of the Prime Execution Agent, returning the relevant bitcoin would result in material risk to the Trust or the Prime Execution
Agent or may result in the relevant bitcoin being lost or otherwise not successfully returned and the Prime Execution Agent promptly
notifies the Trust promptly upon Client&rsquo;s notice of such failure, (1) the Trust may request that the Prime Execution Agent still
sell, withdraw or transfer the bitcoin, but the Prime Execution Agent will have no liability with respect to any such sell, withdrawal
or transfer (unless the Prime Execution Agent or any of the Coinbase Entities act with negligence unrelated to such technology or security
issue) and any failure to withdraw or transfer shall not result in a Coinbase Termination Event if the Trust does not receive the withdrawn
or transferred bitcoin or the proceeds of any such sale due to such technology or security issue, or (2) if the Trust does not elect
to have the Prime Execution Agent still make the sale, withdrawal or transfer, a Coinbase Termination Event shall not occur while the
relevant security or technology event is occurring and continuing, (iii) the failure of any Coinbase Entity to withdraw or transfer cash
to the Trust in accordance with the Trust&rsquo;s instructions within the time periods set forth in the Prime Execution Agreement and
such failure is not cured within one (1) Business Day following the Trust providing written notice to the relevant Coinbase Entity, (iv)
a Coinbase Entity intentionally or willfully, materially breaches any provision of the Prime Execution Agreement (other than the provisions
of the Bitcoin Custody Agreement) and such breach remains uncured for a period of 10 calendar days after notice of such breach is provided
by the Trust to the Prime Execution Agent; or (v) a Coinbase Entity intentionally or willfully, materially breaches any provision of
the Bitcoin Custody Agreement and such breach remains uncured for a period of 30 calendar days after notice of such breach is provided
by the Trust to the Prime Execution Agent.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Trade Financing Agreement</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trade Financing Agreement
was entered into between the Trust (as &ldquo;Borrower&rdquo;), Coinbase Credit (&ldquo;Lender&rdquo;), Coinbase, Inc. (&ldquo;Agent&rdquo;
or &ldquo;Coinbase&rdquo;), and Coinbase Custody as agent with respect to the Trust&rsquo;s balance of bitcoin held in the Trust Bitcoin
Account pursuant to the Bitcoin Custody Agreement to govern the extension of credit from Coinbase Credit to the Trust for use in connection
with trading bitcoin on Coinbase Inc.&rsquo;s Trading Platform.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Pursuant to the terms of
the Trade Financing Agreement, Lender agrees to lend to the Trust a specific quantity of cash and/or bitcoin (Trade Credits) in connection
with the purchase or sale of bitcoin via the Coinbase Inc.&rsquo;s Trading Platform for use on the Trading Platform up to the Authorized
Amount. The &ldquo;Authorized Amount&rdquo; shall mean the aggregate U.S. dollar notional amount of Trade Credits that Lender has agreed
to extend to the Trust during any Defined Interval. &ldquo;Defined Interval&rdquo; means a twenty-four (24) hour period starting at 6:00
A.M. ET (or such other time as may be notified by Lender to Trust from time to time) on any day that Lender has extended Trade Credit
to Trust.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trust and Lender agree
that the Trust may use the Trade Credits exclusively for the purpose of the execution of trades on the Trading Platform. Lender is under
no obligation to continue to provide Trade Credits and may in its sole discretion impose black-out periods during which Trade Credits
for any or all fiat currencies and/or digital assets (including U.S. dollars and bitcoin) may be unavailable, provided, however, that
Lender will provide the Trust with advance notice of such black-out periods if feasible to do so.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Lender will establish in
the name of the Trust a ledger entry for purposes of tracking Trade Credits extended by Lender (&ldquo;Trade Finance Debit Account&rdquo;).
The Trade Finance Debit Account shall reflect the cumulative Trade Credits that Lender has extended during each Defined Interval, both
in terms of the aggregate notional value of the Trade Credits and the Trade Credits denominated in specific digital assets (such as bitcoin).
The Trade Finance Debit Account shall be conclusive, absent manifest error, of the amount of Trade Credits extended by the Lender to
the Trust. &ldquo;Defined Interval&rdquo; shall mean a twenty-four (24) hour period starting at 6:00 A.M. ET (or such other time as may
be notified by Lender to Trust from time to time) on any day that Lender has extended Trade Credit to Trust. For the avoidance of doubt,
in the event that Lender extends Trade Credit to the Trust prior to 6:00 A.M. ET on any given day, such notional amount of Trade Credit
shall be included in the aggregation of the Authorized Amount for the immediately prior day. Lender or Agent may revise the Defined Interval
time period referenced above upon 5 business days prior notice to the Trust.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Under the Trade Financing
Agreement, the Lender and the Trust agreed that any digital assets (including bitcoin) and any item of property (whether investment property,
financial asset, security, general intangible or instrument (each as defined in the UCC) or cash) and all proceeds of the foregoing,
credited to the Trust&rsquo;s Trading Balance and Trust Bitcoin Account shall be treated as a &ldquo;financial asset&rdquo; within the
meaning of NY UCC &sect;8-102(a)(9). The Trust granted to Lender and Agent a continuing first priority security interest in, lien on
and right of set off against all of the Trust&rsquo;s right, title and interest, whether now owned or existing or hereafter acquired
or arising, in the Trust&rsquo;s Trading Balance and Trust Bitcoin Account together with proceeds thereof, in order to secure (i)&nbsp;repayment
of Trade Credits to Lender, (ii) payment of all fees and other amounts owed by the Trust to Lender or Agent hereunder, and (iii) all
other obligations of the Trust to the Lender and Agent arising hereunder from time to time. In addition, the Trust shall execute such
documents and take such other actions as the Lender or Agent shall reasonably request in order to perfect and maintain the priority of
the Lender&rsquo;s and Agent&rsquo;s security interest with respect to Trust&rsquo;s Trading Balance and the Trust Bitcoin Account. For
purposes of perfecting Lender&rsquo;s security interest in the Trading Balance, Agent holds the Trust&rsquo;s Trading Balance for itself
and also as agent for Lender, and has control over the Trust&rsquo;s Trading Balance for its own benefit and for the benefit and on behalf
of Lender. Agent agrees to follow entitlement orders of Lender as secured party with respect to the Trading Balance without further consent
of the Trust.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trust agrees to fully
repay to Lender the Trade Credits extended during a Defined Interval by the Settlement Deadline for that Defined Interval. The &ldquo;Settlement
Deadline&rdquo; shall mean 6:00 P.M. Eastern Time on the calendar day immediately following the start of a Defined Interval. The Trust
is permitted to repay the Trade Credits at any time during the Defined Interval. Failure of the Trust to fully repay the Trade Credits
by the Settlement Deadline may result in an Event of Default (as such term is defined in the agreement). The Trust must repay Lender
with the same type of asset that Lender provided in extending the applicable Trade Credit. The Trust&rsquo;s repayment obligation shall
be satisfied only when Lender receives good funds for cash Trade Credits or bitcoin for bitcoin Trade Credits. All cash repayments must
be made to Lender in good funds by the Settlement Deadline, regardless of whether the Federal Reserve wire transfer system is open for
business.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Upon the occurrence of an
Event of Default: (a) any outstanding extension of Trade Credit shall be immediately due and payable; (b) in addition to all rights under
the Coinbase Prime Broker Agreement, Lender or Agent may exercise any rights of a secured creditor with respect to its interests in the
Trust&rsquo;s assets, and may exercise all other rights under Agreements between the Trust and Lender, Agent or Coinbase Custody, including
the Lender&rsquo;s, Agent&rsquo;s or Coinbase Custody&rsquo;s rights under the Coinbase Prime Broker Agreement. Lender and Agent agree
that they will exercise their secured creditor rights with respect to the Trading Balance before exercising their secured creditor rights
with respect to the Trust Bitcoin Account; (c) the Trust authorizes Agent, as securities intermediary with respect to the Trading Balance,
to comply with all instructions and entitlement orders from Lender, as secured party, with respect to the disposition of assets in the
Trust&rsquo;s Trading Balance as contemplated herein without further consent or direction from the Trust or any other party. The Trust
also authorizes Coinbase Custody, as securities intermediary with respect to the Trust Bitcoin, to comply with all instructions and entitlement
orders from Lender or Agent, as secured party, with respect to the disposition of assets in the Trust Bitcoin Account. Coinbase Custody
agrees to follow such instructions and entitlement orders; (d) Without prior notice to the Trust, Lender shall have the right to instruct
Agent (and Agent agrees to comply with such instruction) to: (i) transfer the Trust&rsquo;s Client Assets from the Trust&rsquo;s Trading
Balance to the Lender to repay the unpaid Trade Credits, and/or (ii) liquidate or cancel outstanding orders (including Orders that have
been submitted or are in the process of being fulfilled); and (e) without prior notice to the Trust, Lender may suspend or terminate
the Trust&rsquo;s ability to receive extensions of Trade Credits, regardless of whether the Trust has cured the Event of Default.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">If the above actions are
not sufficient to satisfy all obligations of the Trust to Lender and Agent, Lender or Agent shall have the right to liquidate any and
all of the Trust&rsquo;s assets and positions held with Lender or Agent, including the Trading Balance and the Trust Bitcoin Account,
to cover any losses incurred by the Trust&rsquo;s failure to repay the Trade Credits. In connection with liquidating such assets, the
Trust authorizes Lender or Agent, on Lender&rsquo;s behalf, in Lender&rsquo;s sole discretion, to liquidate any of the Trust&rsquo;s
bitcoin in a commercially reasonable sale at the market price. The Trust understands that the value of bitcoin may rise or fall quickly,
and neither Lender nor Agent has any obligation to liquidate the Trust&rsquo;s bitcoin at a time that provides the best price.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The parties to the Trade
Financing Agreement may terminate the agreement immediately upon giving the other party written notice. Upon notice of termination, all
outstanding extensions of Trade Credits shall become due and payable immediately. All obligations of the Trust with respect to outstanding
Trade Credits and other amounts due hereunder, and rights of Lender and Agent in connection therewith shall survive the termination of
the Trade Financing Agreement, including Lender&rsquo;s and Agent&rsquo;s security interest in the Trust Trading Balance and Trust Bitcoin
Account and Lender, Agent&rsquo;s and Coinbase Custody&rsquo;s right of set-off under the Prime Execution Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>


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<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Cash Custody Agreement</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trust has entered into
the Cash Custody Agreement with The Bank of New York Mellon under which The Bank of New York Mellon acts as custodian of the Trust&rsquo;s
cash and cash equivalents (in such capacity, the &ldquo;Cash Custodian&rdquo;). The Cash Custodian has agreed to provide its services
under the Cash Custody Agreement until terminated in accordance with the provisions of the Cash Custody Agreement. Either the Cash Custodian
or the Trust may terminate the Cash Custody Agreement by giving written notice to the counterparty as set forth in the Cash Custody Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The fees of the Cash Custodian
are paid by the Trust. In addition, the Trust shall reimburse the Cash Custodian for any out-of-pocket and incidental expenses incurred
by the Cash Custodian in connection with the Cash Custody Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Cash Custodian shall
exercise the standard of care and diligence that a professional custodian would observe in these affairs taking into account the prevailing
rules, practices, procedures and circumstances in the relevant market (&ldquo;Standard of Care&rdquo;). Except as otherwise expressly
provided in the Cash Custody Agreement, the Cash Custodian&rsquo;s liability arising out of or relating to the Cash Custody Agreement
shall be limited solely to those direct damages that are caused by the Cash Custodian&rsquo;s failure to perform its obligations under
the Cash Custody Agreement in accordance with the Standard of Care. The Trust agrees to indemnify the Cash Custodian and hold the Cash
Custodian harmless from and against all losses, costs, expenses, damages and liabilities(including reasonable counsel fees and expenses)
incurred by the Cash Custodian arising out of or relating to the Cash Custodian&rsquo;s performance under the Cash Custody Agreement,
except to the extent resulting from the Cash Custodian&rsquo;s failure to perform its obligations under the Cash Custody Agreement in
accordance with the Standard of Care. The Cash Custody Agreement is governed by the substantive laws of the state of New York.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Marketing Agent Agreement</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Pursuant to the Marketing
Agent Agreement, the Marketing Agent is generally responsible for the day-to-day administration of the Trust. The responsibilities of
the Marketing Agent include (i) at the request of the Trust, assisting the Trust with facilitating Authorized Participant Agreements
between and among Authorized Participants, the Trust, and the applicable Transfer Agent, for the creation and redemption of Baskets of
the Trust; (ii)&nbsp;maintaining copies of confirmations of Basket creation and redemption order acceptances and producing such copies
upon reasonable request from the Trust or Sponsor; (iii) making available copies of the Prospectus to Authorized Participants who have
purchased Baskets in accordance with the Authorized Participant Agreements; (iv) maintaining telephonic, facsimile and/or access to direct
computer communications links with the Transfer Agent; (v) reviewing and approving, prior to use, certain Trust marketing materials submitted
by the Trust for review (&ldquo;Marketing Materials&rdquo;) for compliance with applicable SEC and FINRA advertising rules, and filing
all such Marketing Materials required to be filed with FINRA; (vi) ensuring that all direct requests by Authorized Participants for Prospectuses
are fulfilled; and (vii) working with the Transfer Agent to review and approve orders placed by Authorized Participants and transmitted
to the Transfer Agent.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trust shall indemnify,
defend and hold the Marketing Agent, its affiliates and each of their respective members, managers, directors, officers, employees, representatives
and any person who controls or previously controlled the Marketing Agent within the meaning of Section 15 of the 1933 Act (collectively,
the &ldquo;Marketing Agent Indemnitees&rdquo;), free and harmless from and against any and all losses, claims, demands, liabilities,
damages and expenses (including the costs of investigating or defending any alleged losses, claims, demands, liabilities, damages or
expenses and any reasonable counsel fees incurred in connection therewith) (collectively, &ldquo;Losses&rdquo;) that any Marketing Agent
Indemnitee may incur arising out of or relating to (i) the Trust&rsquo;s breach of any of its obligations, representations, warranties
or covenants contained in the Marketing Agent Agreement; (ii) the Trust&rsquo;s failure to comply in all material respects with any applicable
laws, rules or regulations; or (iii) any claim that the Prospectus, sales literature and advertising materials or other information filed
or made public by the Trust (as from time to time amended) includes or included an untrue statement of a material fact or omits or omitted
to state a material fact required to be stated therein or necessary in order to make the statements therein not misleading provided,
however, that the Trust&rsquo;s obligation to indemnify any of the Marketing Agent Indemnitees shall not be deemed to cover any Losses
arising out of any untrue statement or alleged untrue statement or omission or alleged omission made in the Prospectus or any such advertising
materials or sales literature or other information filed or made public by the Trust in reliance upon and in conformity with information
provided by the Marketing Agent to the Trust, in writing, for use in such Prospectus or any such advertising materials or sales literature.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Marketing Agreement shall
continue in effect for two years. Thereafter, if not terminated, the Marketing Agreement shall continue automatically in effect for successive
one-year periods.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Master Purchase and Sale Agreement for Digital
Assets</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Sponsor, on behalf of
the Trust, has entered into a Master Purchase and Sale Agreement for Digital Assets with each Bitcoin Trading Counterparty. This agreement
set forth the general parameters under which a transaction in bitcoin will be effectuated, should any transaction with a Bitcoin Trading
Counterparty occur. The agreement shall remain in effect until terminated in writing by either the Trust or the Bitcoin Trading Counterparty.
The Bitcoin Trading Counterparty shall have no liability: (i) with respect to any breach of the agreement which does not arise from its
bad faith or gross negligence, (ii) for any act or omission (including insolvency) or delay of any third party, including any bank, digital
wallet provider or digital currency exchange or any of their agents or subcontractors, (iii) for any interruption or delays of service,
system failure, or errors in the design or functioning of any electronic system, or (iv) for any consequential, indirect, incidental,
or any similar damages (even if informed of the possibility or likelihood of such damages). The Trust and Sponsor will each, on a several
basis (and without duplication), indemnify, defend and hold the Bitcoin Trading Counterparty harmless together with its officers, directors,
members, partners, affiliates and employees, agents and licensors (the &ldquo;Indemnified Parties&rdquo;) from and against all losses,
liabilities, judgments, proceedings, claims, damages and costs (including attorneys&rsquo; fees) resulting from any third-party action
related to: (i)&nbsp;the Trust&rsquo;s breach of the terms of the agreement, (ii) the Trust&rsquo;s violation of any applicable law,
rule or regulation, (iii) Bitcoin Trading Counterparty&rsquo;s reliance on any instruction (in whatever form delivered) which it reasonably
believed to have been given by the Trust, or (iv) other acts or omissions in connection with the execution of transactions with the Bitcoin
Trading Counterparty.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center"><A NAME="a_028"></A>United
States Federal Income Tax Consequences</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The following discussion
of the material U.S. federal income tax consequences that generally will apply to the purchase, ownership and disposition of Shares by
a U.S. Shareholder (as defined below), and certain U.S. federal income consequences that may apply to an investment in Shares by a Non-U.S.
Shareholder (as defined below), represents, insofar as it describes conclusions as to U.S. federal income tax law and subject to the
limitations and qualifications described therein, the opinion of Chapman and Cutler LLP, special U.S. federal income tax counsel to the
Sponsor. The discussion below is based on the Internal Revenue Code of 1986 (the &ldquo;Code&rdquo;), Treasury Regulations promulgated
thereunder and judicial and administrative interpretations of the Code, all as in effect on the date of this Prospectus and all of which
are subject to change either prospectively or retroactively. The tax treatment of Shareholders may vary depending upon their own particular
circumstances. Certain Shareholders (including but not limited to banks, financial institutions, insurance companies, regulated investment
companies, real estate investment trusts, tax-exempt organizations, tax-exempt or tax-advantaged retirement plans or accounts, brokers
or dealers, traders, partnerships for U.S. federal income tax purposes, persons holding Shares as a position in a &ldquo;hedging,&rdquo;
&ldquo;straddle,&rdquo; &ldquo;conversion,&rdquo; &ldquo;constructive sale&rdquo; or other integrated transaction for U.S. federal income
tax purposes, persons whose &ldquo;functional currency&rdquo; is not the U.S. dollar, persons with &ldquo;applicable financial statements&rdquo;
within the meaning of Section 451(b) of the Code, or other investors with special circumstances) may be subject to special rules not
discussed below. In addition, the following discussion applies only to investors who will hold Shares as &ldquo;capital assets&rdquo;
within the meaning of Section 1221 of the Code. Moreover, the discussion below does not address the effect of any state, local or foreign
tax law consequences that may apply to an investment in Shares. Purchasers of Shares are urged to consult their own tax advisers with
respect to all federal, state, local and foreign tax law considerations potentially applicable to their investment in Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">For purposes of this discussion,
a &ldquo;U.S. Shareholder&rdquo; is a Shareholder that is:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">an individual who is treated
                                            as a citizen or resident of the U.S. for U.S. federal income tax purposes;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">a corporation (or entity treated
                                            as a corporation for U.S. federal income tax purposes) created or organized in or under the
                                            laws of the U.S., any state thereof or the District of Columbia;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">an estate, the income of which
                                            is includible in gross income for U.S. federal income tax purposes regardless of its source;
                                            or</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">a trust, if a court within
                                            the U.S. is able to exercise primary supervision over the administration of the trust and
                                            one or more U.S. persons have the authority to control all substantial decisions of the trust,
                                            or a trust that has made a valid election under applicable Treasury Regulations to be treated
                                            as a domestic trust.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">A Shareholder that is not
a U.S. Shareholder as defined above is considered a &ldquo;Non-U.S. Shareholder&rdquo; for purposes of this discussion. If a partnership
or other entity or arrangement treated as a partnership for U.S. federal income tax purposes holds Shares, the tax treatment of a partner
generally depends upon the status of the partner and the activities of the partnership. If you are a partner of a partnership holding
Shares, the discussion below may not be applicable and we urge you to consult your own tax adviser for the U.S. federal income tax implications
of the purchase, ownership and disposition of such Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Taxation of the Trust</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Sponsor and the Trustee
will treat the Trust as a &ldquo;grantor trust&rdquo; for U.S. federal income tax purposes. In the opinion of Chapman and Cutler LLP,
although not free from doubt due to the lack of directly governing authority, the Trust should be classified as a &ldquo;grantor trust&rdquo;
for U.S. federal income tax purposes (and the following discussion assumes such classification). As a result, the Trust itself should
not be subject to U.S. federal income tax. Instead, the Trust&rsquo;s income and expenses should &ldquo;flow through&rdquo; to the Shareholders,
and the Trustee will report the Trust&rsquo;s income, gains, losses and deductions to the Internal Revenue Service (the &ldquo;IRS&rdquo;)
on that basis.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The opinion of Chapman and
Cutler LLP represents only its best legal judgment and is not binding on the IRS or any court. Accordingly, there can be no assurance
that the IRS will agree with the conclusions of counsel&rsquo;s opinion and it is possible that the IRS or another tax authority could
assert a position contrary to one or all of those conclusions and that a court could sustain that contrary position. Neither the Sponsor
nor the Trustee will request a ruling from the IRS with respect to the classification of the Trust for U.S. federal income tax purposes
or with respect to any other matter. Because of the evolving nature of digital assets, it is not possible to predict potential future
developments that may arise with respect to digital assets, including forks, airdrops and other similar occurrences. Assuming that the
Trust is currently a grantor trust for U.S. federal income tax purposes, certain future developments could render it impossible, or impracticable,
for the Trust to continue to be treated as a grantor trust for such purposes. If the IRS were to assert successfully that the Trust is
not classified as a &ldquo;grantor trust,&rdquo; the Trust would likely be classified as a partnership for U.S. federal income tax purposes,
which may affect the timing and other tax consequences to the Shareholders, and might be classified as a publicly traded partnership
that would be taxable as a corporation for U.S. federal income tax purposes, in which case the Trust would be taxed in the same manner
as a regular corporation on its taxable income and distributions to Shareholders out of the earnings and profits of the Trust would be
taxed to Shareholders as ordinary dividend income.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Uncertainty Regarding the U.S. Federal Income
Tax Treatment of Digital Assets</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Each beneficial owner of
Shares will be treated for U.S. federal income tax purposes as the owner of an undivided interest in the bitcoin held in the Trust. Due
to the new and evolving nature of digital assets and the absence of comprehensive guidance with respect to digital assets, many significant
aspects of the U.S. federal income tax treatment of digital assets are uncertain.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In 2014, IRS released a notice
(the &ldquo;Notice&rdquo;) discussing certain aspects of the treatment of &ldquo;convertible virtual currency&rdquo; (including, without
limitation, bitcoin) for U.S. federal income tax purposes. In the Notice, the IRS stated that, for U.S. federal income tax purposes,
(i) such digital assets are property, (ii) are not &ldquo;currency&rdquo; for purposes of the provisions of the Code relating to foreign
currency gain or loss and (iii) may be held as a capital asset. Later, the IRS released a revenue ruling and a set of &ldquo;Frequently
Asked Questions&rdquo; (the &ldquo;2019 Ruling &amp; FAQs&rdquo;) that provide some additional guidance, including guidance to the effect
that, under certain circumstances, hard forks of digital assets are taxable events giving rise to ordinary income and guidance with respect
to the determination of the tax basis of digital assets. Recently, the IRS release additional guidance confirming that staking income
paid in digital assets is included in gross income. (the &ldquo;2023 Ruling,&rdquo; the 2019 Ruling and the 2023 Ruling, the &ldquo;Rulings&rdquo;)
However, the Notice and the Rulings &amp; FAQs do not address other significant aspects of the U.S. federal income tax treatment of digital
assets. Moreover, although the Rulings &amp; FAQs address the treatment of hard forks, there continues to be significant uncertainty
with respect to the timing and amount of the income inclusions. While the Rulings &amp; FAQs do not address most situations in which
airdrops occur, it is clear from the reasoning of the Rulings &amp; FAQs that the IRS generally would treat an airdrop as a taxable event
giving rise to ordinary income.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">There can be no assurance
that the IRS will not alter its position with respect to digital assets in the future or that a court would uphold the treatment set
forth in the Notice and the Ruling &amp; FAQs. It is also unclear what additional guidance on the treatment of digital assets for U.S.
federal income tax purposes may be issued in the future. Any such alteration of the current IRS positions or additional guidance could
result in adverse tax consequences for Shareholders and could have an adverse effect on the prices of digital currencies, including the
price of bitcoin, and therefore could have an adverse effect on the value of Shares. Future developments that may arise with respect
to digital assets may increase the uncertainty with respect to the treatment of digital assets for U.S. federal income tax purposes.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">For example, El Salvador
has recently announced that it is making bitcoin legal tender in El Salvador. If the IRS recognizes bitcoin as a &ldquo;foreign currency,&rdquo;
the tax consequences of an investment in the Trust will change. Gains or loss in respect of foreign currencies is generally ordinary
gain or loss. In general, entering or acquiring forward contracts, futures contracts, options or similar financial instruments is treated
as a foreign currency contract that produces ordinary gain or loss. However, ordinary gain or loss treatment does not apply (unless elected)
to contracts which require delivery of, or the settlement of which depends on the value of, a foreign currency in respect of which positions
are traded through regulated futures contracts. Instead, such contracts are treated as having 60% long term capital gain or loss and
40% short term capital gain or loss. Such contracts are also required to be marked to market at the end of each year.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The remainder of this discussion
assumes that bitcoin, and any Incidental Rights or IR Assets that the Trust may hold, is properly treated for U.S. federal income tax
purposes as property that may be held as a capital asset and that is not currency for purposes of the provisions of the Code relating
to foreign currency gain and loss.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Shareholders are urged to
consult their tax advisers regarding the tax consequences of an investment in the Trust and in digital currencies in general, including,
in the case of Shareholders that are generally exempt from U.S. federal income taxation, whether such Shareholders may recognize &ldquo;unrelated
business taxable income&rdquo; (&ldquo;UBTI&rdquo;) as a consequence of a fork, airdrop or similar occurrence.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Incidental Rights and IR Assets</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">From time to time, the Trust
may come into possession of rights incident to its ownership of bitcoin, which permit the Trust to acquire, or otherwise establish dominion
and control over, other digital assets. These rights are generally expected to be Forked Assets that arise in connection with hard forks
in the Bitcoin blockchain, airdrops offered to holders of bitcoins and digital assets arising from other similar events without any action
of the Trust or of the Sponsor or Trustee on behalf of the Trust. These rights are referred to as &ldquo;Incidental Rights&rdquo; and
any digital assets acquired through Incidental Rights are referred to as &ldquo;IR Assets.&rdquo; Pursuant to the Trust Agreement, the
Trust has explicitly disclaimed all Incidental Rights and IR Assets. Such assets are not considered assets of the Trust at any point
in time and will not be taken into account for purposes of determining the Trust&rsquo;s NAV and the NAV per Share.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Pursuant to the Trust Agreement,
to the extent that the Trust receives such assets in a Trust wallet, it will, as soon as practicable, and, if possible, immediately,
distribute such assets to the Sponsor. At such time, the Incidental Right(s) and/or IR Asset(s) will be the property of the Sponsor.
Once acquired, the Sponsor, subject a reasonable, good faith determination, may take any lawful action necessary or desirable in connection
with its acquisition of such assets. In the event that the Sponsor decides to sell the Incidental Right(s) and/or IR Asset(s), it will
seek to do so for cash. This may be a sale of the Incidental Right(s) and/or IR Asset(s) directly in exchange for cash, or in exchange
for another digital asset which may subsequently be exchanged for cash. The Sponsor would then contribute that cash back to the Trust,
which in turn would distribute the cash to DTC to be distributed to Shareholders in proportion to the number of Shares owned. Such distribution
would generally be a taxable event giving rise to ordinary income for a U.S. Holder.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Taxation of U.S. Shareholders</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Shareholders will be treated,
for U.S. federal income tax purposes, as if they directly owned a pro rata share of the underlying assets held in the Trust. Shareholders
also will be treated as if they directly received their respective pro rata shares of the Trust&rsquo;s income, if any, and as if they
directly incurred their respective pro rata shares of the Trust&rsquo;s expenses. In the case of a Shareholder that acquires Shares as
part of the creation of a Basket in cash, the delivery of cash to the Trust in exchange for a pro rata share of the underlying bitcoin
represented by the Shares and the additional bitcoin purchased with the cash will not be a taxable event to the Shareholder, and the
Shareholder&rsquo;s tax basis and holding period for the Shareholder&rsquo;s pro rata share of the bitcoin held in the Trust will be
based upon the amount of cash contributed and the date that the Trust purchased the bitcoin with the cash. In the case of a Shareholder
that acquires Shares as part of the creation of a Basket in kind, the delivery of bitcoin to the Trust in exchange for a pro rata share
of the underlying bitcoin represented by the Shares will not be a taxable event to the Shareholder, and the Shareholder&rsquo;s tax basis
and holding period for the Shareholder&rsquo;s pro rata share of the bitcoin held in the Trust will be the same as its tax basis and
holding period for the bitcoin delivered in exchange therefor. For purposes of this discussion, and unless stated otherwise, it is assumed
that all of a Shareholder&rsquo;s Shares are acquired on the same date and at the same price per Share. Shareholders that hold multiple
lots of Shares, or that are contemplating acquiring multiple lots of Shares, should consult their own tax advisers as to the determination
of the tax basis and holding period for the underlying bitcoin related to such Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Bitcoin may be used to pay
certain expenses of the Trust, which under current IRS guidance will be treated as a sale of such bitcoin. If the Trust sells bitcoin
(for example to generate cash to pay fees or expenses) or is treated as selling bitcoin (for example by using bitcoin to pay fees or
expenses), a Shareholder will recognize gain or loss in an amount equal to the difference between (a) the Shareholder&rsquo;s pro rata
share of the amount realized by the Trust upon the sale and (b) the Shareholder&rsquo;s tax basis for its pro rata share of the bitcoin
that was sold. A Shareholder&rsquo;s tax basis for its share of any bitcoin sold by the Trust should generally be determined by multiplying
the Shareholder&rsquo;s total basis for its share of all of the bitcoin held in the Trust immediately prior to the sale, by a fraction
the numerator of which is the amount of bitcoin sold, and the denominator of which is the total amount of the bitcoin held in the Trust
immediately prior to the sale. After any such sale, a Shareholder&rsquo;s tax basis for its pro rata share of the bitcoin remaining in
the Trust should be equal to its tax basis for its share of the total amount of the bitcoin held in the Trust immediately prior to the
sale, less the portion of such basis allocable to its share of the bitcoin that was sold.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Shareholders&rsquo; pro rata
shares of the expenses incurred by the Trust will be treated as &ldquo;miscellaneous itemized deductions&rdquo; for U.S. federal income
tax purposes. As a result, for taxable years beginning after December 31, 2017 and before January 1, 2026, a non-corporate U.S. Shareholder&rsquo;s
share of these expenses will not be deductible for U.S. federal income tax purposes. Under current law, for taxable years beginning on
or after January 1, 2026, a non-corporate U.S. Shareholder&rsquo;s share of these expenses will be deductible for regular U.S. federal
income tax purposes only to the extent that the U.S. Shareholder&rsquo;s share of the expenses, when combined with other &ldquo;miscellaneous
itemized deductions,&rdquo; exceeds 2% of the U.S. Shareholder&rsquo;s adjusted gross income for the particular year, will not be deductible
for U.S. federal alternative minimum tax purposes and will be subject to certain other limitations on deductibility &ndash; although
there is currently legislation before Congress that would disallow such deductions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Upon a Shareholder&rsquo;s
sale of some or all of its Shares, the Shareholder will be treated as having sold the portion or all, respectively, of its pro rata share
of the bitcoin held in the Trust at the time of the sale that is attributable to the Shares sold. Accordingly, the Shareholder generally
will recognize gain or loss on the sale in an amount equal to the difference between (a) the amount realized pursuant to the sale of
the Shares, and (b) the Shareholder&rsquo;s tax basis for the portion of its pro rata share of the bitcoin held in the Trust at the time
of sale that is attributable to the Shares sold, as determined in the manner described in the preceding paragraph. Based on current IRS
guidance, such gain or loss (as well as any gain or loss realized by a Shareholder on account of the Trust selling bitcoin) will generally
be long-term or short-term capital gain or loss, depending upon whether the Shareholder has a holding period in its pro rata share of
the bitcoin that was sold of more than one year.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The current maximum tax rate
for individuals applicable to capital gains is 20% (subject to an additional tax of 3.8% on net investment income). However, gain from
collectibles is subject to a 28% maximum (also subject to the 3.8% additional tax), and currency gain is subject to tax at ordinary income
rates. Current guidance indicates that digital assets are treated neither as collectibles nor as currencies, but the IRS has the authority
to change its position on the treatment of digital assets.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">A redemption of some or all
of a Shareholder&rsquo;s Shares in exchange for the underlying bitcoin represented by the Shares redeemed generally will not be a taxable
event to the Shareholder. The Shareholder&rsquo;s tax basis for the bitcoin received in the redemption generally will be the same as
the Shareholder&rsquo;s tax basis for the portion of its pro rata share of the bitcoin held in the Trust immediately prior to the redemption
that is attributable to the Shares redeemed. The Shareholder&rsquo;s holding period with respect to the bitcoin received should include
the period during which the Shareholder held the Shares redeemed. A subsequent sale of the bitcoin received by the Shareholder will be
a taxable event, unless a nonrecognition provision of the Code applies to such sale.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">After any sale or redemption
of less than all of a Shareholder&rsquo;s Shares, the Shareholder&rsquo;s tax basis for its pro rata share of the bitcoin held in the
Trust immediately after such sale or redemption generally will be equal to its tax basis for its share of the total amount of the bitcoin
held in the Trust immediately prior to the sale or redemption, less the portion of such basis which is taken into account in determining
the amount of gain or loss recognized by the Shareholder upon such sale or, in the case of a redemption, that is treated as the basis
of the bitcoin received by the Shareholder in the redemption.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">If a fork occurs in the Bitcoin
blockchain, the Trust would hold both the original bitcoin and the alternative new asset. However, such Forked Asset would not constitute
an asset of the Trust as, pursuant to the Trust Agreement, the Trust has disclaimed all Incidental Rights and IR Assets, including Forked
Assets. The Trust Agreement requires that, if such a transaction occurs, the Trust will, as soon as possible, distribute the Forked Asset
to the Sponsor. The Sponsor may then sell the Forked Asset, at which point it would it contribute the proceeds of that sale back to the
Trust, which would distribute the cash to Shareholders. Such distribution would cause Shareholders to incur a federal income tax liability.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Although the Trust has explicitly
disclaimed all Incidental Rights and IR Assets, it is possible that the IRS may not recognize such a disclaimer. Under such circumstances,
the receipt, distribution and/or sale of the Forked Asset may cause Shareholders to incur a federal income tax liability. The IRS has
taken the position in the Ruling &amp; FAQs that, under certain circumstances, a fork constitutes a taxable event giving rise to ordinary
income, and it is clear from the reasoning of the Ruling &amp; FAQs that the IRS generally would treat an airdrop as a taxable event
giving rise to ordinary income. Under the Ruling &amp; FAQs, a U.S. Shareholder will have a basis in any IR Asset received in a fork
or airdrop equal to the amount of income the U.S. Shareholder recognizes as a result of such fork or airdrop and the U.S. Shareholder&rsquo;s
holding period for such IR Asset will begin as of the time it recognizes such income. In the absence of guidance to the contrary, it
is possible that any income recognized by a U.S. tax-exempt Shareholder as a consequence of a hard fork, airdrop or similar occurrence
would constitute UBTI. A tax-exempt Shareholder should consult its tax advisor regarding whether such Shareholder may recognize some
UBTI as a consequence of an investment in Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">3.8% Tax on Net Investment Income</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Certain U.S. Shareholders
who are individuals are required to pay a 3.8% tax on the lesser of the excess of their modified adjusted gross income over a threshold
amount ($210,000 for married persons filing jointly and $200,000 for single taxpayers) or their &ldquo;net investment income,&rdquo;
which generally includes capital gains from the disposition of property. This tax is in addition to any capital gains taxes due on such
investment income. A similar tax applies to estates and trusts. U.S. Shareholders should consult their own tax advisers regarding the
effect, if any, this tax may have on their investment in the Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Brokerage Fees and Trust Expenses</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Any brokerage or other transaction
fee incurred by a Shareholder in purchasing Shares will be treated as part of the Shareholder&rsquo;s tax basis in the underlying assets
of the Trust. Similarly, any brokerage fee incurred by a Shareholder in selling Shares will reduce the amount realized by the Shareholder
with respect to the sale.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Shareholders will be required
to recognize the full amount of gain or loss upon a sale or deemed sale of bitcoin by the Trust (as discussed above), even though some
or all of the proceeds of such sale are used by the Trustee to pay Trust expenses. Shareholders may deduct their respective pro rata
shares of each expense incurred by the Trust to the same extent as if they directly incurred the expense. Shareholders who are individuals,
estates or trusts, however, may be required to treat some or all of the expenses of the Trust as miscellaneous itemized deductions. An
individual may not deduct miscellaneous itemized deductions for tax years beginning after December 31, 2017 and before January 1, 2026.
For tax years beginning after December 31, 2025, individuals may deduct certain miscellaneous itemized deductions only to the extent
they exceed in the aggregate 2% of the individual&rsquo;s adjusted gross income. Similar rules apply to certain miscellaneous itemized
deductions of estates and trusts. In addition, such deductions may be subject to phase outs and other limitations under applicable provisions
of the Code.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Investment by Certain Retirement Plans</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Individual retirement accounts
(&ldquo;IRAs&rdquo;) and participant-directed accounts under tax-qualified retirement plans are limited in the types of investments they
may make under the Code. Potential purchasers of Shares that are IRAs or participant-directed accounts under a Code section 401(a) plan
should consult with their own tax advisors as to the tax consequences of a purchase of Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Taxation of Non-U.S. Shareholders</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">A Non-U.S. Shareholder generally
should not be subject to U.S. federal income tax with respect to gain recognized upon the sale or other disposition of Shares, or upon
the sale or disposition of bitcoin by the Trust, unless (1) the Non-U.S. Shareholder is an individual and is present in the U.S. for
183 days or more during the taxable year of the sale or other disposition, and the gain is treated as being from U.S. sources; or (2)
the gain is effectively connected with the conduct by the Non-U.S. Shareholder of a trade or business in the U.S. and certain other conditions
are met. A Non-U.S. Shareholder also will generally not be subject to U.S. federal income or withholding tax with respect to any distribution
received from the Trust, whether in cash or in-kind.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Provided that it does not
constitute income that is treated as &ldquo;effectively connected&rdquo; with the conduct of a trade or business in the United States,
U.S.-source &ldquo;fixed or determinable annual or periodical&rdquo; (&ldquo;FDAP&rdquo;) income received, or treated as received, by
a Non-U.S. Shareholder will generally be subject to U.S. withholding tax at the rate of 30% (subject to possible reduction or elimination
pursuant to an applicable tax treaty and to statutory exemptions such as the portfolio interest exemption). Although there is no guidance
on point, it is likely that any ordinary income recognized by a Non-U.S. Shareholder as a result of a fork, airdrop or similar occurrence
would constitute FDAP income. It is unclear, however, whether any such FDAP income would be properly treated as U.S.-source or foreign-source
FDAP income. Non-U.S. Shareholder in the Trust should assume that, in the absence of guidance, a withholding agent (including the Sponsor)
is likely to withhold 30% from a Non-U.S. Shareholder&rsquo;s pro rata share of any such income, including by deducting such withheld
amounts from proceeds that such Non-U.S. Shareholder would otherwise be entitled to receive in connection with a distribution of Incidental
Rights, IR Assets or proceeds from the disposition of Incidental Rights or IR Assets by the Sponsor. A Non-U.S. Shareholder that is a
resident of a country that maintains an income tax treaty with the United States may be eligible to claim the benefits of that treaty
to reduce or eliminate, or to obtain a partial or full refund of, the 30% U.S. withholding tax on its share of any such income, but only
if the Non-U.S. Shareholder&rsquo;s home country treats the Trust as &ldquo;fiscally transparent,&rdquo; as defined in applicable Treasury
regulations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Although the nature of the
Incidental Rights and IR Assets that the Trust may hold in the future is uncertain and the Trust has sought to disclaim such assets,
it is unlikely that any such asset would give rise to income that is treated as &ldquo;effectively connected&rdquo; with the conduct
of a trade or business in the United States or that any income derived by a Non-U.S. Shareholder from any such asset would otherwise
be subject to U.S. income or withholding tax, except as discussed above in connection with the fork, airdrop or similar occurrence giving
rise to Incidental Rights or IR Assets. There can, however, be no complete assurance in this regard.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">U.S. Information Reporting and Backup Withholding</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trustee will file certain
information returns with the IRS, and provide certain tax-related information to Shareholders, in connection with the Trust. To the extent
required by applicable regulations, each Shareholder will be provided with information regarding its allocable portion of the Trust&rsquo;s
annual income, expenses, gains and losses (if any). A U.S. Shareholder may be subject to U.S. backup withholding tax, at a rate of 24%,
in certain circumstances unless it provides its taxpayer identification number and complies with certain certification procedures. Non-U.S.
Shareholders may have to comply with certification procedures to establish that they are not a U.S. person, and some Non-U.S. Shareholders
may be required to meet certain information reporting or certification requirements imposed by the Foreign Account Tax Compliance Act,
in order to avoid certain information reporting and withholding tax requirements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The amount of any backup
withholding will be allowed as a credit against a Shareholder&rsquo;s U.S. federal income tax liability and may entitle the Shareholder
to a refund, provided that the required information is furnished to the IRS in a timely manner.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Taxation in Jurisdictions Other Than the
U.S.</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Prospective purchasers of
Shares that are based in or acting out of a jurisdiction other than the U.S. are advised to consult their own tax advisers as to the
tax consequences under the laws of such jurisdiction (or any other jurisdiction other than the U.S. to which they are subject) of their
purchase, holding, sale and redemption of or any other dealing in Shares and, in particular, as to whether any value added tax, other
consumption tax or transfer tax is payable in relation to such purchase, holding, sale, redemption or other dealing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>PROSPECTIVE SHAREHOLDERS
ARE URGED TO CONSULT THEIR TAX ADVISERS BEFORE DECIDING WHETHER TO INVEST IN THE SHARES OF THE TRUST.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center"><A NAME="a_029"></A>Purchases
By Employee Benefit Plans</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Although there can be no
assurance that an investment in the Trust will achieve the investment objectives of an employee benefit plan in making such investment,
the Trust has certain features that may be of interest to such a plan. For example, because they are not taxpaying entities, employee
benefit plans are not subject to paying annual tax on profits (if any) of the Trust.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">General</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The following section sets
forth certain consequences under the Employee Retirement Income Security Act of 1974 (&ldquo;ERISA&rdquo;), and the Code, which a fiduciary
of an &ldquo;employee benefit plan&rdquo; as defined in, and subject to the fiduciary responsibility provisions of, ERISA or of a &ldquo;plan&rdquo;
as defined in and subject to Section&nbsp;4975 of the Code who has investment discretion should consider before deciding to invest the
plan&rsquo;s assets in the Trust (such &ldquo;employee benefit plans&rdquo; and &ldquo;plans&rdquo; being referred to herein as &ldquo;Plans,&rdquo;
and such fiduciaries with investment discretion being referred to herein as &ldquo;Plan Fiduciaries&rdquo;). The following summary is
not intended to be complete, but only to address certain questions under ERISA and the Code which are likely to be raised by the Plan
Fiduciary&rsquo;s own counsel.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In general, the terms &ldquo;employee
benefit plan&rdquo; as defined in ERISA and &ldquo;plan&rdquo; as defined in Section&nbsp;4975 of the Code together refer to any plan
or account of various types which provide retirement benefits or welfare benefits to an individual or to an employer&rsquo;s employees
and their beneficiaries. Such plans and accounts include, but are not limited to, corporate pension and profit sharing plans, &ldquo;simplified
employee pension plans,&rdquo; Keogh plans for self-employed individuals (including partners), individual retirement accounts described
in Section&nbsp;408 of the Code and medical benefit plans.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Each Plan Fiduciary must
give appropriate consideration to the facts and circumstances that are relevant to an investment in the Trust, including the role that
such an investment in the Trust would play in the Plan&rsquo;s overall investment portfolio. Each Plan Fiduciary, before deciding to
invest in the Trust, must be satisfied that such investment in the Trust is a prudent investment for the Plan, that the investments of
the Plan, including the investment in the Trust, are diversified so as to minimize the risk of large losses and that an investment in
the Trust complies with the documents of the Plan and related trust.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">EACH PLAN FIDUCIARY CONSIDERING
ACQUIRING SHARES MUST CONSULT WITH ITS OWN LEGAL AND TAX ADVISERS BEFORE DOING SO. AN INVESTMENT IN THE TRUST IS SPECULATIVE AND INVOLVES
A HIGH DEGREE OF RISK. THE TRUST IS NOT INTENDED AS A COMPLETE INVESTMENT PROGRAM.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&ldquo;Plan Assets&rdquo;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">ERISA and a regulation issued
thereunder (the &ldquo;Plan Asset Rules&rdquo;) contain rules&nbsp;for determining when an investment by a Plan in an entity will result
in the underlying assets of such entity being assets of the Plan for purposes of ERISA and Section&nbsp;4975 of the Code (<I>i.e.</I>,
&ldquo;plan assets&rdquo;). Those rules&nbsp;provide that assets of an entity will not be plan assets of a Plan which purchases an interest
therein if certain exceptions apply, including (i)&nbsp;an exception applicable if the equity interest purchased is a &ldquo;publicly-offered
security&rdquo; (the &ldquo;Publicly-Offered Security Exception&rdquo;) and (ii)&nbsp;an exception applicable if the investment by all
&ldquo;benefit plan investors&rdquo; is not &ldquo;significant&rdquo; or certain other exceptions apply (the &ldquo;Insignificant Participation
Exception&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Publicly-Offered Security
Exception applies if the equity interest is a security that is (1)&nbsp;&ldquo;freely transferable,&rdquo; (2)&nbsp;part of a class of
securities that is &ldquo;widely held&rdquo; and (3)&nbsp;either (a)&nbsp;part of a class of securities registered under Section&nbsp;12(b)&nbsp;or
12(g)&nbsp;of the Exchange Act, or (b)&nbsp;sold to the Plan as part of a public offering pursuant to an effective registration statement
under the 1933 Act and the class of which such security is a part is registered under the Exchange Act within 120&nbsp;days (or such
later time as may be allowed by the SEC) after the end of the fiscal year of the issuer in which the offering of such security occurred.
The Plan Asset Rules&nbsp;state that the determination of whether a security is &ldquo;freely transferable&rdquo; is to be made based
on all relevant facts and circumstances. Under the Plan Asset Rules, a class of securities is &ldquo;widely held&rdquo; only if it is
of a class of securities owned by 100 or more shareholders independent of the issuer and of each other.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Shares of the Trust should
be considered to be publicly-offered securities. First, the Shares were sold as part of a public offering pursuant to an effective registration
statement under the 1933 Act, and the Shares were timely registered under the Exchange Act. Second, the Shares are freely transferable
because the Shares of the Trust are freely tradable on the Exchange like any other exchange-listed security. Finally, the Shares are
owned by at least 100 Shareholders independent of the Trust. Therefore, the underlying assets of the Trust should not be considered to
constitute assets of any Plan that purchases Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>


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<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Ineligible Purchasers</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In general, Shares may not
be purchased with the assets of a Plan if the Sponsor, the Administrator, the Trustee, the Transfer Agent, the Bitcoin Custodian, the
Marketing Agent, the Exchange, or any of their respective affiliates or any of their respective employees either: (a)&nbsp;has investment
discretion with respect to the investment of such plan assets; (b)&nbsp;has authority or responsibility to give or regularly gives investment
advice with respect to such plan assets, for a fee, and pursuant to an agreement or understanding that such advice will serve as a primary
basis for investment decisions with respect to such plan assets and that such advice will be based on the particular investment needs
of the Plan; or (c)&nbsp;is an employer maintaining or contributing to such Plan. A party that is described in clause (a)&nbsp;or (b)&nbsp;of
the preceding sentence is a fiduciary under ERISA and the Code with respect to the Plan, and any such purchase might result in a &ldquo;prohibited
transaction&rdquo; under ERISA and the Code.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Except as otherwise set forth,
the foregoing statements regarding the consequences under ERISA and the Code of an investment in the Trust are based on the provisions
of the Code and ERISA as currently in effect, and the existing administrative and judicial interpretations thereunder. No assurance can
be given that administrative, judicial or legislative changes will not occur that will not make the foregoing statements incorrect or
incomplete.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">ALLOWING AN INVESTMENT IN
THE TRUST IS NOT TO BE CONSTRUED AS A REPRESENTATION BY THE SPONSOR OR ANY OF ITS AFFILIATES, AGENTS OR EMPLOYEES THAT THIS INVESTMENT
MEETS SOME OR ALL OF THE RELEVANT LEGAL REQUIREMENTS WITH RESPECT TO INVESTMENTS BY ANY PARTICULAR PLAN OR THAT THIS INVESTMENT IS APPROPRIATE
FOR ANY SUCH PARTICULAR PLAN. THE PERSON WITH INVESTMENT DISCRETION SHOULD CONSULT WITH THE PLAN&rsquo;S ATTORNEY AND FINANCIAL ADVISERS
AS TO THE PROPRIETY OF AN INVESTMENT IN THE TRUST IN LIGHT OF THE CIRCUMSTANCES OF THE PARTICULAR PLAN, CURRENT TAX LAW AND ERISA.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center"><A NAME="a_030"></A>Information
You Should Know</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">This Prospectus contains
information investors should consider when making an investment decision about the Shares. Investors should rely only on the information
contained in this Prospectus or any applicable prospectus supplement. None of the Trust or the Sponsor has authorized any person to provide
investors with different information and, if anyone provides investors with different or inconsistent information, investors should not
rely on it. This Prospectus is not an offer to sell the Shares in any jurisdiction where the offer or sale of the Shares is not permitted.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The information contained
in this Prospectus was obtained from the Sponsor and other sources the Sponsor believed to be reliable.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Investors should disregard
anything we said in an earlier document that is inconsistent with what is included in this Prospectus or any applicable prospectus supplement.
Where the context requires, when the Sponsor refers to this &ldquo;Prospectus,&rdquo; it is referring to this Prospectus and (if applicable)
the relevant prospectus supplement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Investors should not assume
that the information in this prospectus or any applicable prospectus supplement is current as of any date other than the date on the
front page of this Prospectus or the date on the front page of any applicable prospectus supplement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Cross references in this
Prospectus to captions in these materials indicate where an investor can find further related discussions. The table of contents assists
in locating these captions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center"><A NAME="a_031"></A>Summary
of Promotional and Sales Material</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trust expects to use
the following sales material it has prepared:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">the Trust&rsquo;s website,
                                            www.BITBetf.com; and</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">The Trust Fact Sheet found
                                            on the Trust&rsquo;s website.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The materials described above
are not a part of this Prospectus or the registration statement of which this Prospectus is a part.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>


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    <!-- Field: /Page -->

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center"><A NAME="a_032"></A>Intellectual
Property</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Sponsor owns trademark
registrations for the Trust. The Sponsor relies upon these trademarks through which it markets its services and strives to build and
maintain brand recognition in the market and among current and potential investors. So long as the Sponsor continues to use these trademarks
to identify its services, without challenge from any third-party, and properly maintains and renews the trademark registrations under
applicable laws, rules and regulations, it will continue to have indefinite protection for these trademarks under current laws, rules
and regulations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Sponsor also owns trademark
registrations for the Sponsor. The Sponsor relies upon these trademarks through which it markets its services and strives to build and
maintain brand recognition in the market and among current and potential investors. So long as the Sponsor continues to use these trademarks
to identify its services, without challenge from any third-party, and properly maintains and renews the trademark registrations under
applicable laws, rules and regulations; it will continue to have indefinite protection for these trademarks under current laws, rules
and regulations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center"><A NAME="a_033"></A>Where
You Can Find More Information; INCORPORATION OF CERTAIN INFORMATION BY REFERENCE</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trust has filed a registration
statement on Form S-3 with the SEC under the 1933 Act. This Prospectus does not contain all of the information set forth in the registration
statement (including the exhibits to the registration statement), parts of which have been omitted in accordance with the rules and regulations
of the SEC. For further information about the Trust or the Shares, please refer to the registration statement, which is available online
at www.sec.gov.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Information about the Trust
and the Shares can also be obtained from the Trust&rsquo;s website, which is www.BITBetf.com. The Trust&rsquo;s website address is only
provided here as a convenience and the information contained on or connected to the website is not part of this Prospectus or the registration
statement of which this Prospectus is part. The Sponsor will make available, free of charge, on the Trust&rsquo;s website the Trust&rsquo;s
Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K (including any amendments thereto), proxy statements and other
information filed with, or furnished to, the SEC, as soon as reasonably practicable after such documents are so filed or furnished.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trust is subject to the
informational requirements of the 1934 Act and will file certain reports and other information with the SEC under the 1934 Act. These
filings will contain certain important information that does not appear in this Prospectus. The reports and other information are available
online at www.sec.gov.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The SEC allows the &ldquo;incorporation
by reference&rdquo; of information into this Prospectus, which means that information may be disclosed to you by referring you to other
documents filed or which will be filed with the SEC. The following documents filed by the Trust are so incorporated by reference:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">1.</TD><TD STYLE="text-align: justify">Annual Report
                                            on <A HREF="https://www.sec.gov/Archives/edgar/data/1763415/000095017025040572/bitb-20241231.htm">Form
                                            10-K</A> for the fiscal year ended December 31, 2024;</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">2.</TD><TD STYLE="text-align: justify">Quarterly Report
                                            on <A HREF="http://www.sec.gov/Archives/edgar/data/1763415/000095017025068780/bitb-20250331.htm">Form
                                            10-Q</A> for the fiscal quarter ended March 31, 2025;</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">3.</TD><TD STYLE="text-align: justify">Current Report
                                            on <A HREF="https://www.sec.gov/Archives/edgar/data/1763415/000095017025021165/bitb-20250214.htm">Form
                                            8-K</A> (to the extent such Current Report, or portions thereof, is deemed to be filed for
                                            the purposes of the Exchange Act), dated February 14, 2025; and</TD>
</TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">4.</TD><TD STYLE="text-align: justify">The description
                                            of the Shares contained in the registration statement on <A HREF="https://www.sec.gov/Archives/edgar/data/1763415/000199937123001337/bitwise-8a12b_122923.htm">Form
                                            8-A</A> filed with the SEC on December 29, 2023, as updated by <A HREF="https://www.sec.gov/Archives/edgar/data/1763415/000095017025040572/bitb-ex4_1.htm">Exhibit
                                            4.1</A> to the Annual Report on Form 10-K for the year ended December 31, 2024 filed on March
                                            18, 2025.</TD>
</TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Unless otherwise provided
therein, any reports filed (but not those that are furnished) by the Trust with the SEC pursuant to Section 13(a), 13(c), 14 or 15(d)
of the Exchange Act after the date of this Prospectus and before the termination or completion of this offering shall be deemed to be
incorporated by reference in this Prospectus and to be a part of it from the filing dates of such documents and shall automatically update
or supersede, as applicable, any information included in, or incorporated by reference into this Prospectus. The statements in or portions
of a future document incorporated by reference in this Prospectus may update and replace statements in and portions of this Prospectus
or the above listed documents.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Sponsor will provide
you without charge, upon your written or oral request, a copy of any or all of the information that has been incorporated by reference
into this Prospectus but not delivered with the Prospectus. Please direct your written requests to Bitwise Investment Advisers, LLC,
250 Montgomery Street, Suite 200, San Francisco, CA 94104, telephone requests by calling 1-866-880-7228 or by sending an e-mail request
to investors@bitwiseinvestments.com.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">You may also obtain information
about the Trust by visiting its website at www.BITBetf.com. Information contained in the Trust&rsquo;s website is not part of this Prospectus.</P>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center"><A NAME="a_034"></A>Privacy
Policy</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trust and the Sponsor
may collect or have access to certain nonpublic personal information about current and former investors. Nonpublic personal information
may include information received from investors, such as an investor&rsquo;s name, social security number and address, as well as information
received from brokerage firms about investor holdings and transactions in Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trust and the Sponsor
do not disclose nonpublic personal information except as required by law or as described in their Privacy Policy. In general, the Trust
and the Sponsor restrict access to the nonpublic personal information they collect about investors to those of their and their affiliates&rsquo;
employees and service providers who need access to such information to provide products and services to investors.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trust and the Sponsor
maintain safeguards that comply with federal law to protect investors&rsquo; nonpublic personal information. These safeguards are reasonably
designed to (1) ensure the security and confidentiality of investors&rsquo; records and information, (2) protect against any anticipated
threats or hazards to the security or integrity of investors&rsquo; records and information, and (3) protect against unauthorized access
to or use of investors&rsquo; records or information that could result in substantial harm or inconvenience to any investor.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Third-party service providers
with whom the Trust and the Sponsor share nonpublic personal information about investors must agree to follow appropriate standards of
security and confidentiality, which includes safeguarding such nonpublic personal information physically, electronically and procedurally.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">A copy of the Sponsor&rsquo;s
current Privacy Policy, which is applicable to the Trust, is provided to investors annually and is also available at BITBetf.com.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

<!-- Field: Rule-Page --><DIV STYLE="margin: 0pt auto; width: 100%"><DIV STYLE="font-size: 1pt; border-top: Black 1.5pt solid">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B>Bitwise
Bitcoin ETF</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B>shares</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B>prospectus</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>________________, 2025</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<!-- Field: Rule-Page --><DIV STYLE="margin: 0pt auto; width: 100%"><DIV STYLE="font-size: 1pt; border-top: Black 1.5pt solid">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<!-- Field: Page; Sequence: 124; Options: NewSection -->
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    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>




<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">PART II</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">INFORMATION NOT REQUIRED IN PROSPECTUS</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Item 14. Other Expenses of Issuance and Distribution.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">An indeterminate number of the securities is
being registered as may from time to time be sold at indeterminate prices. In accordance with Rules 456(d) and 457(u), the registrant
is deferring payment of all of the registration fee and will pay the registration fee subsequently on an annual basis. The Trust shall
not bear any expenses in connection with the issuance and distribution of the securities being registered. These expenses shall be paid
by the Sponsor.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Item 15. Indemnification of Directors and
Officers.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Trust Agreement provides that the Sponsor
and its shareholders, members, directors, officers, employees, Affiliates and subsidiaries (each a &ldquo;Sponsor Indemnified Party&rdquo;)
will be indemnified by the Trust and held harmless against any loss, liability or expense incurred under the Trust Agreement without
gross negligence, bad faith, or willful misconduct on the part of such Sponsor Indemnified Party arising out of or in connection with
the performance of its obligations hereunder or any actions taken in accordance with the provisions of the Trust Agreement. Any amounts
payable to a Sponsor Indemnified Party under Section 4.06 of the Trust Agreement may be payable in advance or will be secured by a lien
on the Trust. The Sponsor will not be under any obligation to appear in, prosecute or defend any legal action that in its opinion may
involve it in any expense or liability; provided, however, that the Sponsor may, in its discretion, undertake any action that it may
deem necessary or desirable in respect of the Trust Agreement and the rights and duties of the parties hereto and the interests of the
Shareholders and, in such event, the legal expenses and costs of any such action will be expenses and costs of the Trust and the Sponsor
will be entitled to be reimbursed therefor by the Trust. The obligations of the Trust to indemnify the Sponsor Indemnified Parties will
survive the termination of the Trust Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Item 16. Exhibits.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The exhibits to this registration statement are
listed in the Exhibit Index to this registration statement, which is incorporated herein by reference.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Item 17. Undertakings.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in">(a)</TD><TD STYLE="text-align: justify">The undersigned registrant hereby undertakes:</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(1)</TD><TD STYLE="text-align: justify">To file, during any period in which
                                            offers or sales are being made, a post-effective amendment to this registration statement:</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.25in; text-align: left">(i)</TD><TD STYLE="text-align: justify">To include any
                                            prospectus required by section 10(a)(3) of the Securities Act of 1933;</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.25in; text-align: left">(ii)</TD><TD STYLE="text-align: justify">To reflect in
                                            the prospectus any facts or events arising after the effective date of the registration statement
                                            (or the most recent post-effective amendment thereof) which, individually or in the aggregate,
                                            represent a fundamental change in the information set forth in the registration statement.
                                            Notwithstanding the foregoing, any increase or decrease in volume of securities offered (if
                                            the total dollar value of securities offered would not exceed that which was registered)
                                            and any deviation from the low or high end of the estimated maximum offering range may be
                                            reflected in the form of prospectus filed with the Commission pursuant to Rule 424(b) if,
                                            in the aggregate, the changes in volume and price represent no more than 20% change in the
                                            maximum aggregate offering price set forth in the &ldquo;Calculation of Registration Fee&rdquo;
                                            table in the effective registration statement; and</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.25in; text-align: left">(iii)</TD><TD STYLE="text-align: justify">To include any
                                            material information with respect to the plan of distribution not previously disclosed in
                                            the registration statement or any material change to such information in the registration
                                            statement; Provided, however, that: (1)(i), (ii), and (iii) of this section do not apply
                                            if the registration statement is on Form S-1, Form S-3, Form SF-3 or Form F-3 and the information
                                            required to be included in a post-effective amendment by those paragraphs is contained in
                                            reports filed with or furnished to the Commission by the registrant pursuant to section 13
                                            or section 15(d) of the Securities Exchange Act of 1934 that are incorporated by reference
                                            in the registration statement, or, as to a registration statement on Form S-3, Form SF-3
                                            or Form F-3, is contained in a form of prospectus filed pursuant to Rule 424(b) that is part
                                            of the registration statement.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(2)</TD><TD STYLE="text-align: justify">That, for the purpose of determining
                                            any liability under the Securities Act of 1933, each such post-effective amendment shall
                                            be deemed to be a new registration statement relating to the securities offered therein,
                                            and the offering of such securities at that time shall be deemed to be the initial bona fide
                                            offering thereof.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(3)</TD><TD STYLE="text-align: justify">To remove from registration by
                                            means of a post-effective amendment any of the securities being registered which remain unsold
                                            at the termination of the offering.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(4)</TD><TD STYLE="text-align: justify">That, for the purpose of determining
                                            liability under the Securities Act of 1933 to any purchaser:</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.25in; text-align: left">(i)</TD><TD STYLE="text-align: justify">If the registrant
                                            is relying on Rule 430B:</TD>
</TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.25in; text-align: justify">(A) Each prospectus filed by the registrant
pursuant to Rule 424(b)(3) shall be deemed to be part of the registration statement as of the date the filed prospectus was deemed part
of and included in the registration statement; and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.25in; text-align: justify">(B) Each prospectus required to be
filed pursuant to Rule 424(b)(2), (b)(5), or (b)(7) as part of a registration statement in reliance on Rule 430B relating to an offering
made pursuant to Rule 415(a)(1)(i), (vii), or (x) for the purpose of providing the information required by section 10(a) of the Securities
Act of 1933 shall be deemed to be part of and included in the registration statement as of the earlier of the date such form of prospectus
is first used after effectiveness or the date of the first contract of sale of securities in the offering described in the prospectus.
As provided in Rule 430B, for liability purposes of the issuer and any person that is at that date an underwriter, such date shall be
deemed to be a new effective date of the registration statement relating to the securities in the registration statement to which that
prospectus relates, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof. Provided,
however, that no statement made in a registration statement or prospectus that is part of the registration statement or made in a document
incorporated or deemed incorporated by reference into the registration statement or prospectus that is part of the registration statement
will, as to a purchaser with a time of contract of sale prior to such effective date, supersede or modify any statement that was made
in the registration statement or prospectus that was part of the registration statement or made in any such document immediately prior
to such effective date; or</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.5in; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.25in">(ii)</TD><TD STYLE="text-align: justify">If the registrant is subject to
                                            Rule 430C, each prospectus filed pursuant to Rule 424(b) as part of a registration statement
                                            relating to an offering, other than registration statements relying on Rule 430B or other
                                            than prospectuses filed in reliance on Rule 430A, shall be deemed to be part of and included
                                            in the registration statement as of the date it is first used after effectiveness. Provided,
                                            however, that no statement made in a registration statement or prospectus that is part of
                                            the registration statement or made in a document incorporated or deemed incorporated by reference
                                            into the registration statement or prospectus that is part of the registration statement
                                            will, as to a purchaser with a time of contract of sale prior to such first use, supersede
                                            or modify any statement that was made in the registration statement or prospectus that was
                                            part of the registration statement or made in any such document immediately prior to such
                                            date of first use.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.5in; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(5)</TD><TD STYLE="text-align: justify">That, for the purpose of determining
                                            liability of the registrant under the Securities Act of 1933 to any purchaser in the initial
                                            distribution of the securities:</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">The undersigned registrant undertakes
that in a primary offering of securities of the undersigned registrant pursuant to this registration statement, regardless of the underwriting
method used to sell the securities to the purchaser, if the securities are offered or sold to such purchaser by means of any of the following
communications, the undersigned registrant will be a seller to the purchaser and will be considered to offer or sell such securities
to such purchaser:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.25in; text-align: left">(i)</TD><TD STYLE="text-align: justify">Any preliminary
                                            prospectus or prospectus of the undersigned registrant relating to the offering required
                                            to be filed pursuant to Rule 424;</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.25in; text-align: left">(ii)</TD><TD STYLE="text-align: justify">Any free writing
                                            prospectus relating to the offering prepared by or on behalf of the undersigned registrant
                                            or used or referred to by the undersigned registrant;</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.25in; text-align: left">(iii)</TD><TD STYLE="text-align: justify">The portion
                                            of any other free writing prospectus relating to the offering containing material information
                                            about the undersigned registrant or its securities provided by or on behalf of the undersigned
                                            registrant; and</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.25in; text-align: left">(iv)</TD><TD STYLE="text-align: justify">Any other communication
                                            that is an offer in the offering made by the undersigned registrant to the purchaser.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">(b)</TD><TD STYLE="text-align: justify">The undersigned registrant hereby undertakes
                                            that, for purposes of determining any liability under the Securities Act of 1933, each filing
                                            of the registrant&rsquo;s annual report pursuant to Section 13(a) or Section 15(d) of the
                                            Securities Exchange Act of 1934 (and, where applicable, each filing of an employee benefit
                                            plan&rsquo;s annual report pursuant to Section 15(d) of the Securities Exchange Act of 1934)
                                            that is incorporated by reference in the registration statement shall be deemed to be a new
                                            registration statement relating to the securities offered therein, and the offering of such
                                            securities at that time shall be deemed to be the initial bona fide offering thereof.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">(c)</TD><TD STYLE="text-align: justify">Insofar as indemnification for liabilities
                                            arising under the Securities Act of 1933 may be permitted to directors, officers and controlling
                                            persons of the registrant pursuant to the foregoing provisions, or otherwise, the registrant
                                            has been advised that in the opinion of the Securities and Exchange Commission such indemnification
                                            is against public policy as expressed in the Act and is, therefore, unenforceable. In the
                                            event that a claim for indemnification against such liabilities (other than the payment by
                                            the registrant of expenses incurred or paid by a director, officer or controlling person
                                            of the registrant in the successful defense of any action, suit or proceeding) is asserted
                                            by such director, officer or controlling person in connection with the securities being registered,
                                            the registrant will, unless in the opinion of its counsel the matter has been settled by
                                            controlling precedent, submit to a court of appropriate jurisdiction the question whether
                                            such indemnification by it is against public policy as expressed in the Act and will be governed
                                            by the final adjudication of such issue.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">SIGNATURES</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> Pursuant to the requirements
of the Securities Act of 1933, the registrant certifies that it has reasonable grounds to believe that it meets all of the requirements
for filing on Form S-3 and has duly caused this registration statement to be signed on its behalf by the undersigned, thereunto duly
authorized in the City of San Francisco, State of California, on July 31, 2025. </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">Bitwise Investment Advisers, LLC</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">Sponsor of the Bitwise Bitcoin ETF</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 60%">&nbsp;</TD>
    <TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="width: 35%">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>By:</TD>
    <TD STYLE="border-bottom: black 1.5pt solid"><I>/s/ Hunter Horsley</I></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>Name:&nbsp;</TD>
    <TD>Hunter Horsley</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>Title:</TD>
    <TD>President and Treasurer</TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Pursuant to the requirements
of the Securities Act of 1933, this registration statement has been signed by the following persons in the capacities* and on the dates
indicated.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR>
    <TD STYLE="vertical-align: top; width: 35%; border-bottom: black 1.5pt solid; text-align: center"> Signature </TD>
    <TD STYLE="vertical-align: top; width: 1%; text-align: center"> &nbsp; </TD>
    <TD STYLE="vertical-align: top; width: 48%; border-bottom: black 1.5pt solid; text-align: center"> Title </TD>
    <TD STYLE="vertical-align: top; width: 1%; text-align: center"> &nbsp; </TD>
    <TD STYLE="vertical-align: bottom; width: 15%; border-bottom: black 1.5pt solid; text-align: center"> Date </TD></TR>
  <TR>
    <TD STYLE="vertical-align: top"> &nbsp; </TD>
    <TD STYLE="vertical-align: top"> &nbsp; </TD>
    <TD STYLE="vertical-align: top"> &nbsp; </TD>
    <TD STYLE="vertical-align: top"> &nbsp; </TD>
    <TD STYLE="vertical-align: bottom; text-align: center"> &nbsp; </TD></TR>
  <TR>
    <TD STYLE="vertical-align: top; border-bottom: black 1.5pt solid"> <I>/s/ Hunter Horsley </I> </TD>
    <TD STYLE="vertical-align: top"> &nbsp; </TD>
    <TD STYLE="vertical-align: top"> President and Treasurer </TD>
    <TD STYLE="vertical-align: top"> &nbsp; </TD>
    <TD STYLE="vertical-align: bottom; text-align: center"> July 31, 2025 </TD></TR>
  <TR>
    <TD STYLE="vertical-align: top"> Hunter Horsley </TD>
    <TD STYLE="vertical-align: top"> &nbsp; </TD>
    <TD STYLE="vertical-align: top"> (Principal Executive Officer, Principal Financial Officer and Principal Accounting Officer) </TD>
    <TD STYLE="vertical-align: top"> &nbsp; </TD>
    <TD STYLE="vertical-align: bottom"> &nbsp; </TD></TR>
  <TR>
    <TD STYLE="vertical-align: top"> &nbsp; </TD>
    <TD STYLE="vertical-align: top"> &nbsp; </TD>
    <TD STYLE="vertical-align: top"> &nbsp; </TD>
    <TD STYLE="vertical-align: top"> &nbsp; </TD>
    <TD STYLE="vertical-align: bottom; text-align: center"> &nbsp; </TD></TR>
  <TR>
    <TD STYLE="vertical-align: top; border-bottom: black 1.5pt solid"> <I>/s/ Paul (&ldquo;Teddy&rdquo;) Fusaro</I> </TD>
    <TD STYLE="vertical-align: top"> &nbsp; </TD>
    <TD STYLE="vertical-align: top"> Chief Operating Officer and Secretary </TD>
    <TD STYLE="vertical-align: top"> &nbsp; </TD>
    <TD STYLE="vertical-align: bottom; text-align: center"> July 31, 2025 </TD></TR>
  <TR>
    <TD STYLE="vertical-align: top"> Paul (&ldquo;Teddy&rdquo;) Fusaro </TD>
    <TD STYLE="vertical-align: top"> &nbsp; </TD>
    <TD STYLE="vertical-align: top"> &nbsp; </TD>
    <TD STYLE="vertical-align: top"> &nbsp; </TD>
    <TD STYLE="vertical-align: bottom"> &nbsp; </TD></TR>
  </TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left">*</TD><TD STYLE="text-align: justify">The registrant is
                                            a trust and the persons are signing in their capacities as officers of Bitwise Investment
                                            Advisers, LLC, the Sponsor of the registrant.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">EXHIBIT INDEX</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 9%; border-bottom: black 1.5pt solid">Exhibit No.</TD>
    <TD STYLE="width: 1%; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid; width: 90%">Exhibit Description</TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD>3.1</TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="https://www.sec.gov/Archives/edgar/data/1763415/000199937123001336/ex3-1.htm">First Amended and Restated Declaration
    of Trust and Trust Agreement<SUP>(2)</SUP></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD>3.2</TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="https://www.sec.gov/Archives/edgar/data/1763415/000199937123001336/ex3-2.htm">Certificate of Trust<SUP>(2)</SUP></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD>3.3</TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="https://www.sec.gov/Archives/edgar/data/1763415/000199937123001336/ex3-3.htm">Certificate of Amendment to Certificate
    of Trust<SUP>(2)</SUP></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD>3.4</TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="https://www.sec.gov/Archives/edgar/data/1763415/000199937123001336/ex3-4.htm">Certificate of Amendment to Certificate
    of Trust<SUP>(2)</SUP></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD>5.1</TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="https://www.sec.gov/Archives/edgar/data/1763415/000121390025056635/ea024638401ex5-1_bitwise.htm">Opinion of Chapman
    and Cutler LLP as to legality<SUP>(7)</SUP></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD>8.1</TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="https://www.sec.gov/Archives/edgar/data/1763415/000121390025056635/ea024638401ex8-1_bitwise.htm">Opinion of Chapman
    and Cutler LLP as to tax matters<SUP>(7)</SUP></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD>10.1</TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="https://www.sec.gov/Archives/edgar/data/1763415/000183988224000524/ex10-1.htm">Sponsor Agreement<SUP>(3)</SUP></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD>10.2</TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="https://www.sec.gov/Archives/edgar/data/1763415/000199937123000735/ex10-2.htm">Form of Authorized Participant Agreement<SUP>(1)</SUP></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD>10.3</TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="https://www.sec.gov/Archives/edgar/data/1763415/000199937123000735/ex10-3.htm">Marketing Agreement<SUP>(1)</SUP></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD>10.4</TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="https://www.sec.gov/Archives/edgar/data/1763415/000183988224000524/ex10-4.htm">Prime Execution Agreement (with Bitcoin
    Custody Agreement included as an exhibit thereto)<SUP>(4)</SUP></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD>10.5</TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="https://www.sec.gov/Archives/edgar/data/1763415/000199937123000735/ex10-5.htm">Cash Custody Agreement<SUP>(1)</SUP></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD>10.6</TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="https://www.sec.gov/Archives/edgar/data/1763415/000199937123000735/ex10-6.htm">Fund Administration and Accounting Agreement<SUP>(1)</SUP></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD>10.7</TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="https://www.sec.gov/Archives/edgar/data/1763415/000199937123000735/ex10-7.htm">Transfer Agency and Services Agreement<SUP>(1)</SUP></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD>10.8</TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="https://www.sec.gov/Archives/edgar/data/1763415/000183988224000524/ex10-8.htm">Trade Financing Agreement<SUP>(3)</SUP></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD>10.9</TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="https://www.sec.gov/Archives/edgar/data/1763415/000121390025056635/ea024638401ex10-9_bitwise.htm">Master Purchase and
    Sale Agreement for Digital Assets<SUP>(7)</SUP></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD> 23.1 </TD>
    <TD> &nbsp; </TD>
    <TD> <A HREF="ea025082401ex23-1_bitwise.htm">Consent of Independent Registered Public Accounting Firm<SUP>(8)</SUP></A> </TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD>23.2</TD>
    <TD>&nbsp;</TD>
    <TD>Chapman and Cutler LLP (included in Exhibits <A HREF="https://www.sec.gov/Archives/edgar/data/1763415/000121390025056635/ea024638401ex5-1_bitwise.htm">5.1</A>
    and <A HREF="https://www.sec.gov/Archives/edgar/data/1763415/000121390025056635/ea024638401ex8-1_bitwise.htm">8.1</A>)<SUP>(7)</SUP></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD>107</TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="ea025082401ex-fee_bitwise.htm">Filing Fee Table<SUP>(8)</SUP></A></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in; text-align: left">(1)</TD><TD STYLE="text-align: justify">Incorporated by reference to the Trust&rsquo;s
                                            Registration Statement, filed on December 4, 2023.</TD>
</TR><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
     </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in; text-align: left">(2)</TD><TD STYLE="text-align: justify">Incorporated by reference to the Trust&rsquo;s
                                            Registration Statement, filed on December 29, 2023.</TD>
</TR><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
     </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in; text-align: left">(3)</TD><TD STYLE="text-align: justify">Incorporated by reference to the Trust&rsquo;s
                                            Registration Statement, filed on January 8, 2024.</TD>
</TR><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
     </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in; text-align: left">(4)</TD><TD STYLE="text-align: justify">Incorporated by reference to the Trust&rsquo;s
                                            Registration Statement, filed on January 9, 2024.</TD>
</TR><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
     </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in; text-align: left">(5)</TD><TD STYLE="text-align: justify">Incorporated by reference to the Trust&rsquo;s
                                            Registration Statement, filed on January 10, 2024.</TD>
</TR><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
     <TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="text-align: left">(6)</TD><TD STYLE="text-align: justify"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Incorporated
                                            by reference to the Trust&rsquo;s Registration Statement, filed on June 10, 2025.</P>
</TD></TR>
     </TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left">(7)</TD><TD STYLE="text-align: justify">Incorporated by
                                            reference to the Trust&rsquo;s Registration Statement, filed on June 23, 2025.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left">(8)</TD><TD STYLE="text-align: justify">Filed herewith.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">II-5</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<!-- Field: Rule-Page --><DIV STYLE="margin-top: 0pt; margin-bottom: 0pt; width: 100%"><DIV STYLE="font-size: 1pt; border-top: Black 1.5pt solid">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

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<DOCUMENT>
<TYPE>EX-23.1
<SEQUENCE>2
<FILENAME>ea025082401ex23-1_bitwise.htm
<DESCRIPTION>CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
<TEXT>
<HTML>
<HEAD>
     <TITLE></TITLE>
</HEAD>
<BODY STYLE="font: 10pt Times New Roman, Times, Serif">

<P STYLE="text-align: right; margin: 0"><B>Exhibit 23.1</B></P>

<P STYLE="margin: 0">&nbsp;<IMG SRC="ex23-1_001.jpg" ALT=""></P>

<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="margin: 0"></P>

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<TR STYLE="vertical-align: top; text-align: left">
  <TD STYLE="width: 20%">&nbsp;</TD>
  <TD STYLE="width: 80%">KPMG LLP</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
  <TD>&nbsp;</TD>
  <TD>345 Park Avenue</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
  <TD>&nbsp;</TD>
  <TD>New York, NY 10154-0102</TD></TR>
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<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="text-align: center; margin-top: 0; margin-bottom: 0"><B>Consent of Independent Registered Public Accounting Firm</B></P>

<P STYLE="margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="margin: 0; text-align: justify">We consent to the incorporation by reference in the registration statement (No. 333-287903)
on Form S-3 of our report dated March 17, 2025, with respect to the financial statements of Bitwise Bitcoin ETF, and to the reference
to our firm under the heading &ldquo;Experts&rdquo; in the registration statement.</P>

<P STYLE="margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="text-align: center; margin-top: 0; margin-bottom: 0">/s/ KPMG LLP</P>

<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="margin: 0">New York, New York</P>

<P STYLE="margin: 0">July 30, 2025</P>

<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="text-align: center; margin-top: 0; margin-bottom: 0"><FONT STYLE="font-size: 8pt">KPMG LLP, a Delaware limited liability partnership
and a member firm of</FONT></P>

<P STYLE="text-align: center; margin-top: 0; margin-bottom: 0"><FONT STYLE="font-size: 8pt">the KPMG global organization of independent
member firms affiliated with</FONT></P>

<P STYLE="text-align: center; margin-top: 0; margin-bottom: 0"><FONT STYLE="font-size: 8pt">KPMG International Limited, a private English
company limited by guarantee.</FONT></P>

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<DOCUMENT>
<TYPE>EX-FILING FEES
<SEQUENCE>3
<FILENAME>ea025082401ex-fee_bitwise.htm
<DESCRIPTION>CALCULATION OF FILING FEE TABLES
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<p style="font: bold 12pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 12pt; text-align: right">Ex-Filing Fees</p>

<p style="font: bold 12pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 6pt; text-align: center">CALCULATION OF FILING FEE TABLES</p>

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<p style="font: bold 11pt Times New Roman, Times, Serif; border-top: Gray 3pt double; padding-top: 6pt; text-align: center; margin-top: 0pt; margin-bottom: 4pt">Table 1: Newly Registered and Carry Forward Securities</p>

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<p style="font: bold 8pt Times New Roman, Times, Serif; margin-top: 6pt; margin-bottom: 6pt">__________________________________________<br/>
Offering Note(s)</p>

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<title></title>
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<script type="text/javascript" src="Show.js">/* Do Not Remove This Comment */</script><script type="text/javascript">
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<body>
<span style="display: none;">v3.25.2</span><table class="report" border="0" cellspacing="2" id="id2">
<tr>
<th class="tl" colspan="1" rowspan="1"><div style="width: 200px;"><strong>Submission<br></strong></div></th>
<th class="th"><div>Jul. 31, 2025</div></th>
</tr>
<tr class="re">
<td class="pl" style="border-bottom: 0px;" valign="top"><a class="a" href="javascript:void(0);" onclick="Show.showAR( this, 'defref_ffd_SubmissionLineItems', window );"><strong>Submission [Line Items]</strong></a></td>
<td class="text">&#160;<span></span>
</td>
</tr>
<tr class="ro">
<td class="pl" style="border-bottom: 0px;" valign="top"><a class="a" href="javascript:void(0);" onclick="Show.showAR( this, 'defref_dei_EntityCentralIndexKey', window );">Central Index Key</a></td>
<td class="text">0001763415<span></span>
</td>
</tr>
<tr class="re">
<td class="pl" style="border-bottom: 0px;" valign="top"><a class="a" href="javascript:void(0);" onclick="Show.showAR( this, 'defref_dei_EntityRegistrantName', window );">Registrant Name</a></td>
<td class="text">Bitwise Bitcoin ETF<span></span>
</td>
</tr>
<tr class="ro">
<td class="pl" style="border-bottom: 0px;" valign="top"><a class="a" href="javascript:void(0);" onclick="Show.showAR( this, 'defref_ffd_RegnFileNb', window );">Registration File Number</a></td>
<td class="text">333-287903<span></span>
</td>
</tr>
<tr class="re">
<td class="pl" style="border-bottom: 0px;" valign="top"><a class="a" href="javascript:void(0);" onclick="Show.showAR( this, 'defref_ffd_FormTp', window );">Form Type</a></td>
<td class="text">S-3<span></span>
</td>
</tr>
<tr class="ro">
<td class="pl" style="border-bottom: 0px;" valign="top"><a class="a" href="javascript:void(0);" onclick="Show.showAR( this, 'defref_ffd_SubmissnTp', window );">Submission Type</a></td>
<td class="text">S-3/A<span></span>
</td>
</tr>
<tr class="re">
<td class="pl" style="border-bottom: 0px;" valign="top"><a class="a" href="javascript:void(0);" onclick="Show.showAR( this, 'defref_ffd_FeeExhibitTp', window );">Fee Exhibit Type</a></td>
<td class="text">EX-FILING FEES<span></span>
</td>
</tr>
</table>
<div style="display: none;">
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<tr><td><div class="body" style="padding: 2px;">
<a href="javascript:void(0);" onclick="Show.toggleNext( this );">- Definition</a><div><p>A unique 10-digit SEC-issued value to identify entities that have filed disclosures with the SEC. It is commonly abbreviated as CIK.</p></div>
<a href="javascript:void(0);" onclick="Show.toggleNext( this );">+ References</a><div style="display: none;"><p>Reference 1: http://www.xbrl.org/2003/role/presentationRef<br> -Publisher SEC<br> -Name Exchange Act<br> -Number 240<br> -Section 12<br> -Subsection b-2<br></p></div>
<a href="javascript:void(0);" onclick="Show.toggleNext( this );">+ Details</a><div style="display: none;"><table border="0" cellpadding="0" cellspacing="0">
<tr>
<td><strong> Name:</strong></td>
<td style="white-space:nowrap;">dei_EntityCentralIndexKey</td>
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<tr><td><div class="body" style="padding: 2px;">
<a href="javascript:void(0);" onclick="Show.toggleNext( this );">- Definition</a><div><p>The exact name of the entity filing the report as specified in its charter, which is required by forms filed with the SEC.</p></div>
<a href="javascript:void(0);" onclick="Show.toggleNext( this );">+ References</a><div style="display: none;"><p>Reference 1: http://www.xbrl.org/2003/role/presentationRef<br> -Publisher SEC<br> -Name Exchange Act<br> -Number 240<br> -Section 12<br> -Subsection b-2<br></p></div>
<a href="javascript:void(0);" onclick="Show.toggleNext( this );">+ Details</a><div style="display: none;"><table border="0" cellpadding="0" cellspacing="0">
<tr>
<td><strong> Name:</strong></td>
<td style="white-space:nowrap;">dei_EntityRegistrantName</td>
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<td>xbrli:normalizedStringItemType</td>
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<td>na</td>
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<td><strong> Period Type:</strong></td>
<td>duration</td>
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</table></div>
</div></td></tr>
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<tr><td class="hide"><a style="color: white;" href="javascript:void(0);" onclick="Show.hideAR();">X</a></td></tr>
<tr><td><div class="body" style="padding: 2px;">
<a href="javascript:void(0);" onclick="Show.toggleNext( this );">- References</a><div><p>No definition available.</p></div>
<a href="javascript:void(0);" onclick="Show.toggleNext( this );">+ Details</a><div style="display: none;"><table border="0" cellpadding="0" cellspacing="0">
<tr>
<td><strong> Name:</strong></td>
<td style="white-space:nowrap;">ffd_FeeExhibitTp</td>
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<td>na</td>
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<td>duration</td>
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<tr><td class="hide"><a style="color: white;" href="javascript:void(0);" onclick="Show.hideAR();">X</a></td></tr>
<tr><td><div class="body" style="padding: 2px;">
<a href="javascript:void(0);" onclick="Show.toggleNext( this );">- References</a><div><p>No definition available.</p></div>
<a href="javascript:void(0);" onclick="Show.toggleNext( this );">+ Details</a><div style="display: none;"><table border="0" cellpadding="0" cellspacing="0">
<tr>
<td><strong> Name:</strong></td>
<td style="white-space:nowrap;">ffd_FormTp</td>
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<td>duration</td>
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<tr><td class="hide"><a style="color: white;" href="javascript:void(0);" onclick="Show.hideAR();">X</a></td></tr>
<tr><td><div class="body" style="padding: 2px;">
<a href="javascript:void(0);" onclick="Show.toggleNext( this );">- References</a><div><p>No definition available.</p></div>
<a href="javascript:void(0);" onclick="Show.toggleNext( this );">+ Details</a><div style="display: none;"><table border="0" cellpadding="0" cellspacing="0">
<tr>
<td><strong> Name:</strong></td>
<td style="white-space:nowrap;">ffd_RegnFileNb</td>
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<td style="padding-right: 4px;white-space:nowrap;"><strong> Namespace Prefix:</strong></td>
<td>ffd_</td>
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<td>ffd:fileNumberItemType</td>
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<td><strong> Balance Type:</strong></td>
<td>na</td>
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<td>duration</td>
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<table border="0" cellpadding="0" cellspacing="0" class="authRefData" style="display: none;" id="defref_ffd_SubmissionLineItems">
<tr><td class="hide"><a style="color: white;" href="javascript:void(0);" onclick="Show.hideAR();">X</a></td></tr>
<tr><td><div class="body" style="padding: 2px;">
<a href="javascript:void(0);" onclick="Show.toggleNext( this );">- References</a><div><p>No definition available.</p></div>
<a href="javascript:void(0);" onclick="Show.toggleNext( this );">+ Details</a><div style="display: none;"><table border="0" cellpadding="0" cellspacing="0">
<tr>
<td><strong> Name:</strong></td>
<td style="white-space:nowrap;">ffd_SubmissionLineItems</td>
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<td style="padding-right: 4px;white-space:nowrap;"><strong> Namespace Prefix:</strong></td>
<td>ffd_</td>
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<td><strong> Data Type:</strong></td>
<td>xbrli:stringItemType</td>
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<td><strong> Balance Type:</strong></td>
<td>na</td>
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<td><strong> Period Type:</strong></td>
<td>duration</td>
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<table border="0" cellpadding="0" cellspacing="0" class="authRefData" style="display: none;" id="defref_ffd_SubmissnTp">
<tr><td class="hide"><a style="color: white;" href="javascript:void(0);" onclick="Show.hideAR();">X</a></td></tr>
<tr><td><div class="body" style="padding: 2px;">
<a href="javascript:void(0);" onclick="Show.toggleNext( this );">- References</a><div><p>No definition available.</p></div>
<a href="javascript:void(0);" onclick="Show.toggleNext( this );">+ Details</a><div style="display: none;"><table border="0" cellpadding="0" cellspacing="0">
<tr>
<td><strong> Name:</strong></td>
<td style="white-space:nowrap;">ffd_SubmissnTp</td>
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<td>duration</td>
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<DOCUMENT>
<TYPE>XML
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<TEXT>
<html>
<head>
<title></title>
<link rel="stylesheet" type="text/css" href="include/report.css">
<script type="text/javascript" src="Show.js">/* Do Not Remove This Comment */</script><script type="text/javascript">
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</head>
<body>
<span style="display: none;">v3.25.2</span><table class="report" border="0" cellspacing="2" id="id2">
<tr>
<th class="tl" colspan="1" rowspan="1"><div style="width: 200px;"><strong>Offerings - Offering: 1<br></strong></div></th>
<th class="th"><div>Jul. 31, 2025</div></th>
</tr>
<tr class="re">
<td class="pl" style="border-bottom: 0px;" valign="top"><a class="a" href="javascript:void(0);" onclick="Show.showAR( this, 'defref_ffd_OfferingTable', window );"><strong>Offering:</strong></a></td>
<td class="text">&#160;<span></span>
</td>
</tr>
<tr class="ro">
<td class="pl" style="border-bottom: 0px;" valign="top"><a class="a" href="javascript:void(0);" onclick="Show.showAR( this, 'defref_ffd_PrevslyPdFlg', window );">Fee Previously Paid</a></td>
<td class="text">false<span></span>
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<tr class="re">
<td class="pl" style="border-bottom: 0px;" valign="top"><a class="a" href="javascript:void(0);" onclick="Show.showAR( this, 'defref_ffd_Rule457uFlg', window );">Rule 457(u)</a></td>
<td class="text">true<span></span>
</td>
</tr>
<tr class="ro">
<td class="pl" style="border-bottom: 0px;" valign="top"><a class="a" href="javascript:void(0);" onclick="Show.showAR( this, 'defref_ffd_OfferingSctyTp', window );">Security Type</a></td>
<td class="text">Exchange-Traded Vehicle Securities<span></span>
</td>
</tr>
<tr class="re">
<td class="pl" style="border-bottom: 0px;" valign="top"><a class="a" href="javascript:void(0);" onclick="Show.showAR( this, 'defref_ffd_OfferingSctyTitl', window );">Security Class Title</a></td>
<td class="text">Bitwise Bitcoin ETF<span></span>
</td>
</tr>
<tr class="ro">
<td class="pl" style="border-bottom: 0px;" valign="top"><a class="a" href="javascript:void(0);" onclick="Show.showAR( this, 'defref_ffd_OfferingNote', window );">Offering Note</a></td>
<td class="text">The amended registration statement covers an indeterminate amount of securities to be offered or sold and the filing fee will be calculated and paid in accordance with Rule 456(d) and Rule 457(u).<br/><br/>Prior to the effect of this amendment to the registration statement, the registration statement contemplated the registration of securities up to a maximum aggregate offering price. The proposed maximum aggregate offering price was previously estimated solely for the purposes of calculating the amount of registration fee pursuant to Rule 457(d).<span></span>
</td>
</tr>
</table>
<div style="display: none;">
<table border="0" cellpadding="0" cellspacing="0" class="authRefData" style="display: none;" id="defref_ffd_OfferingNote">
<tr><td class="hide"><a style="color: white;" href="javascript:void(0);" onclick="Show.hideAR();">X</a></td></tr>
<tr><td><div class="body" style="padding: 2px;">
<a href="javascript:void(0);" onclick="Show.toggleNext( this );">- References</a><div><p>Reference 1: http://www.xbrl.org/2003/role/presentationRef<br> -Publisher SEC<br> -Name Securities Act<br> -Number 230<br></p></div>
<a href="javascript:void(0);" onclick="Show.toggleNext( this );">+ Details</a><div style="display: none;"><table border="0" cellpadding="0" cellspacing="0">
<tr>
<td><strong> Name:</strong></td>
<td style="white-space:nowrap;">ffd_OfferingNote</td>
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<td><strong> Balance Type:</strong></td>
<td>na</td>
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<td><strong> Period Type:</strong></td>
<td>duration</td>
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</table></div>
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<table border="0" cellpadding="0" cellspacing="0" class="authRefData" style="display: none;" id="defref_ffd_OfferingSctyTitl">
<tr><td class="hide"><a style="color: white;" href="javascript:void(0);" onclick="Show.hideAR();">X</a></td></tr>
<tr><td><div class="body" style="padding: 2px;">
<a href="javascript:void(0);" onclick="Show.toggleNext( this );">- Definition</a><div><p>The title of the class of securities being registered (for each class being registered).</p></div>
<a href="javascript:void(0);" onclick="Show.toggleNext( this );">+ References</a><div style="display: none;"><p>Reference 1: http://www.xbrl.org/2003/role/presentationRef<br> -Publisher SEC<br> -Name Securities Act<br> -Number 230<br></p></div>
<a href="javascript:void(0);" onclick="Show.toggleNext( this );">+ Details</a><div style="display: none;"><table border="0" cellpadding="0" cellspacing="0">
<tr>
<td><strong> Name:</strong></td>
<td style="white-space:nowrap;">ffd_OfferingSctyTitl</td>
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<td style="padding-right: 4px;white-space:nowrap;"><strong> Namespace Prefix:</strong></td>
<td>ffd_</td>
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<td><strong> Data Type:</strong></td>
<td>ffd:securityTitleItemType</td>
</tr>
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<td><strong> Balance Type:</strong></td>
<td>na</td>
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<td><strong> Period Type:</strong></td>
<td>duration</td>
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</table></div>
</div></td></tr>
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<table border="0" cellpadding="0" cellspacing="0" class="authRefData" style="display: none;" id="defref_ffd_OfferingSctyTp">
<tr><td class="hide"><a style="color: white;" href="javascript:void(0);" onclick="Show.hideAR();">X</a></td></tr>
<tr><td><div class="body" style="padding: 2px;">
<a href="javascript:void(0);" onclick="Show.toggleNext( this );">- Definition</a><div><p>Type of securities: "Asset-backed Securities", "ADRs/ADSs", "Debt", "Debt Convertible into Equity", "Equity", "Face Amount Certificates", "Limited Partnership Interests", "Mortgage Backed Securities", "Non-Convertible Debt", "Unallocated (Universal) Shelf", "Exchange Traded Vehicle Securities", "Other"</p></div>
<a href="javascript:void(0);" onclick="Show.toggleNext( this );">+ References</a><div style="display: none;"><p>Reference 1: http://www.xbrl.org/2003/role/presentationRef<br> -Publisher SEC<br> -Name Securities Act<br> -Number 230<br></p></div>
<a href="javascript:void(0);" onclick="Show.toggleNext( this );">+ Details</a><div style="display: none;"><table border="0" cellpadding="0" cellspacing="0">
<tr>
<td><strong> Name:</strong></td>
<td style="white-space:nowrap;">ffd_OfferingSctyTp</td>
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<td style="padding-right: 4px;white-space:nowrap;"><strong> Namespace Prefix:</strong></td>
<td>ffd_</td>
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<td><strong> Data Type:</strong></td>
<td>ffd:securityTypeItemType</td>
</tr>
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<td><strong> Balance Type:</strong></td>
<td>na</td>
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<td><strong> Period Type:</strong></td>
<td>duration</td>
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</table></div>
</div></td></tr>
</table>
<table border="0" cellpadding="0" cellspacing="0" class="authRefData" style="display: none;" id="defref_ffd_OfferingTable">
<tr><td class="hide"><a style="color: white;" href="javascript:void(0);" onclick="Show.hideAR();">X</a></td></tr>
<tr><td><div class="body" style="padding: 2px;">
<a href="javascript:void(0);" onclick="Show.toggleNext( this );">- References</a><div><p>No definition available.</p></div>
<a href="javascript:void(0);" onclick="Show.toggleNext( this );">+ Details</a><div style="display: none;"><table border="0" cellpadding="0" cellspacing="0">
<tr>
<td><strong> Name:</strong></td>
<td style="white-space:nowrap;">ffd_OfferingTable</td>
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<td style="padding-right: 4px;white-space:nowrap;"><strong> Namespace Prefix:</strong></td>
<td>ffd_</td>
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<td><strong> Data Type:</strong></td>
<td>xbrli:stringItemType</td>
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