<SEC-DOCUMENT>0000930413-23-002543.txt : 20231208
<SEC-HEADER>0000930413-23-002543.hdr.sgml : 20231208
<ACCEPTANCE-DATETIME>20231208074347
ACCESSION NUMBER:		0000930413-23-002543
CONFORMED SUBMISSION TYPE:	S-1/A
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20231208
DATE AS OF CHANGE:		20231208

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			VanEck Bitcoin Trust
		CENTRAL INDEX KEY:			0001838028
		STANDARD INDUSTRIAL CLASSIFICATION:	 [6221]
		IRS NUMBER:				856811021
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		S-1/A
		SEC ACT:		1933 Act
		SEC FILE NUMBER:	333-251808
		FILM NUMBER:		231473932

	BUSINESS ADDRESS:	
		STREET 1:		C/O VANECK DIGITAL ASSETS, LLC
		STREET 2:		666 THIRD AVENUE, 9TH FLOOR
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10017
		BUSINESS PHONE:		212-293-2048

	MAIL ADDRESS:	
		STREET 1:		C/O VANECK DIGITAL ASSETS, LLC
		STREET 2:		666 THIRD AVENUE, 9TH FLOOR
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10017
</SEC-HEADER>
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<TYPE>S-1/A
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<FILENAME>c106800_s1a.htm
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center">As filed with the Securities and Exchange Commission
on December 8, 2023</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: right">Registration No. 333-251808</P>




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

<!-- Field: Rule-Page --><DIV STYLE="margin-top: 0pt; margin-bottom: 0pt; width: 100%"><DIV STYLE="font-size: 1pt; border-top: Black 3px solid"><DIV STYLE="font-size: 1pt; border-bottom: Black 1px solid">&nbsp;</DIV></DIV></DIV><!-- Field: /Rule-Page -->

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

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B>UNITED STATES<BR>
SECURITIES AND EXCHANGE COMMISSION</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Washington, D.C. 20549</B></P>



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

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

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Amendment <FONT STYLE="text-transform: uppercase">No.
5</FONT></B></P>

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

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

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>to</B></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B>FORM S-1</B></FONT></P>

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

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B>VANECK BITCOIN
TRUST</B></FONT></P>

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

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 30%; text-align: center"><FONT STYLE="font-size: 10pt"><B>Delaware</B></FONT></TD>
    <TD STYLE="width: 40%; text-align: center"><FONT STYLE="font-size: 10pt">6221</FONT></TD>
    <TD STYLE="width: 30%; text-align: center"><FONT STYLE="font-size: 10pt">85-6811021</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 10pt">(State or other jurisdiction of<BR>
 incorporation or organization)</FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 10pt">(Primary Standard Industrial Classification <BR>
Code Number)</FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 10pt">(I.R.S. Employer Identification No.)</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>c/o VanEck Digital Assets, LLC<BR>
Jonathan R. Simon, Esq.<BR>
666 Third Avenue, 9<SUP>th</SUP> Floor<BR>
New York, New York 10017<BR>
(212) 293-2000<BR>
</B>(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: 0; text-align: center">&nbsp;</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Clifford R. Cone, Esq.<BR>
Jason D. Myers, Esq.</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Clifford Chance US LLP<BR>
31 West 52<SUP>nd</SUP> St<BR>
New York, New York 10019</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">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: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">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 check
the following box: <FONT STYLE="font-family: Wingdings">x</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">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: <FONT STYLE="font-family: Wingdings">o</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">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. <FONT STYLE="font-family: Wingdings">o</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">If this Form is a post-effective
amendment filed pursuant to Rule 462(d) 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. <FONT STYLE="font-family: Wingdings">o</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">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: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 50%; text-align: justify"><FONT STYLE="font-size: 10pt">Large accelerated filer <FONT STYLE="font-family: Wingdings">o</FONT></FONT></TD>
    <TD STYLE="width: 50%; text-align: justify"><FONT STYLE="font-size: 10pt">Accelerated filer <FONT STYLE="font-family: Wingdings">o</FONT></FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Non-accelerated filer <FONT STYLE="font-family: Wingdings">x</FONT></FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Smaller reporting company <FONT STYLE="font-family: Wingdings">x</FONT></FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Emerging growth company <FONT STYLE="font-family: Wingdings">x</FONT></FONT></TD></TR>
  </TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">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. <FONT STYLE="font-family: Wingdings">o</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt"><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: 0">&nbsp;</P>

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<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; color: red">The information in this Preliminary 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 Preliminary 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.</P>

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; color: red"><B>Preliminary Prospectus dated December
8, 2023</B></P>

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

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

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

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

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

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">The VanEck Bitcoin Trust (the &ldquo;Trust&rdquo;)
is an exchange-traded fund that issues common shares of beneficial interest (the &ldquo;Shares&rdquo;) that trade on the Cboe BZX Exchange,
Inc. (the &ldquo;Exchange&rdquo;). The Trust&rsquo;s investment objective is to reflect the performance of bitcoin less the expenses of
the Trust&rsquo;s operations. In seeking to achieve its investment objective, the Trust will hold bitcoin and will value its Shares daily
based on the reported MarketVector<SUP>TM</SUP> Bitcoin Benchmark Rate, which is calculated based on prices contributed by exchanges that
the Sponsor&rsquo;s (as defined below) affiliate, MarketVector Indexes GmbH (&ldquo;MarketVector&rdquo;), believes represent the top five
bitcoin exchanges based on the industry leading CCData Centralized Exchange Benchmark review report. See &ldquo;The Trust and Bitcoin
Prices&mdash;Description of the MarketVector<SUP>TM </SUP>Bitcoin Benchmark Rate Construction and Maintenance&rdquo; for more information.
VanEck Digital Assets, LLC (the &ldquo;Sponsor&rdquo;) is the sponsor of the Trust, Delaware Trust Company (the &ldquo;Trustee&rdquo;)
is the trustee of the Trust, and Gemini Trust Company, LLC, (the &ldquo;Bitcoin Custodian&rdquo;), or any successor custodian, is the
custodian of the Trust, who will hold all of the Trust&rsquo;s bitcoin on the Trust&rsquo;s behalf.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">The Trust is an exchange-traded
fund. When the Trust sells or redeems its Shares, it will do so in blocks of 50,000 Shares (a &ldquo;Creation Basket&rdquo;) that are
based on the amount of bitcoin represented by the Creation Basket being created, the amount of which is equal to the combined net asset
value of the number of Shares included in the Creation Basket. For a subscription in cash, the subscription shall be in the amount of
cash needed to purchase the amount of bitcoin represented by the Creation Basket being created, as calculated by the Administrator. For
a redemption in cash, the Sponsor shall arrange for the bitcoin represented by the Creation Basket to be sold and the cash proceeds distributed.
Financial firms that are authorized to purchase or redeem Shares with the Trust (known as &ldquo;Authorized Participants&rdquo; or &ldquo;APs&rdquo;)
will deliver, or facilitate the delivery of, bitcoin, in the case of &ldquo;in-kind&rdquo; subscriptions, to the Trust&rsquo;s account
with the Bitcoin Custodian, or cash, in the case of subscriptions for cash, to the Trust&rsquo;s account with the Cash Custodian (as defined
below), in exchange for Shares when they purchase Shares. When Authorized Participants redeem Shares with the Trust, the Trust, through
the Bitcoin Custodian, will deliver bitcoin, in the case of &ldquo;in-kind&rdquo; redemptions, or through the Cash Custodian, will deliver
cash, to such Authorized Participants in exchange for their Shares. 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. The initial Authorized Participant is expected to be [ ]. Shareholders who buy or sell Shares during the
day from their broker may do so at a premium or discount relative to the net asset value of the Shares of the Trust.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt"><I>Except when aggregated in Creation
Baskets, Shares are not redeemable securities. Creation Baskets are only redeemable by Authorized Participants.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">Shareholders 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.
Prior to this offering, there has been no public market for the Shares. The Shares are expected to be listed for trading, subject to notice
of issuance, on the Exchange under the ticker symbol &ldquo;HODL.&rdquo;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">Investing in the Trust involves
risks similar to those involved with an investment directly in bitcoin and other significant risks. See &ldquo;<I>Risk Factors</I>&rdquo;
beginning on page 9.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">The offering of the Trust&rsquo;s
Shares is registered with the Securities and Exchange Commission (the &ldquo;SEC&rdquo;) in accordance with the Securities Act of 1933,
as amended (the &ldquo;1933 Act&rdquo;). The offering is intended to be a continuous offering and is not expected to terminate until all
of the registered Shares have been sold or three years from the date of the original offering, whichever is earlier, unless extended as
permitted by applicable rules under the 1933 Act. The Trust is not registered under the Investment Company Act of 1940, as amended (the
&ldquo;1940 Act&rdquo;) and is not subject to regulation under the 1940 Act. The Trust is not a commodity pool for purposes of the Commodity
Exchange Act of 1936, as amended (the &ldquo;CEA&rdquo;), and the Sponsor is not subject to regulation by the Commodity Futures Trading
Commission (the &ldquo;CFTC&rdquo;) as a commodity pool operator or a commodity trading advisor. The Trust&rsquo;s Shares are neither
interests in nor obligations of the Sponsor or the Trustee.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">On [ ], 2023, [Van Eck Associates
Corporation] (the &ldquo;Seed Capital Investor&rdquo;), an affiliate of the Sponsor, subject to certain conditions, purchased the [four]
Creation Baskets, comprising [200,000] Shares at a per-Share price equal to $[50.00] (the &ldquo;Seed Creation Baskets&rdquo;), as described
in [&ldquo;Seed Capital Investor&rdquo;] and &ldquo;Plan of Distribution.&rdquo; The price of bitcoin was determined using the MarketVector<SUP>TM</SUP>
Bitcoin Benchmark Rate on [ ], 2023. The price per-Share and bitcoin on [ ], 2023 were $[ ] and [ ]th of a bitcoin, respectively. Total
proceeds to the Trust from the sale of the Seed Creation Baskets were $[ ] bitcoins. Delivery of the Seed Creation Baskets was made on
December [ ], 2023. The Seed Capital Investor will act as a statutory underwriter in connection with this purchase.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">The price of the Seed Creation Baskets
was determined as described above and such Shares could be sold at different prices if sold by the Seed Capital Investor at different
times.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt"><B>The value of bitcoin and, therefore,
the value of the Trust&rsquo;s Shares could decline rapidly, including to zero. You could lose your entire investment.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt"><B>AN INVESTMENT IN THE TRUST INVOLVES
SIGNIFICANT RISKS AND MAY NOT BE SUITABLE FOR SHAREHOLDERS 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 9.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt"><B>NEITHER THE SEC 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>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt"><B>THE TRUST IS AN &ldquo;EMERGING
GROWTH COMPANY&rdquo; AS THAT TERM IS USED IN THE JUMPSTART OUR BUSINESS STARTUPS ACT (THE &ldquo;JOBS ACT&rdquo;) AND, AS SUCH, MAY ELECT
TO COMPLY WITH CERTAIN REDUCED REPORTING REQUIREMENTS.</B></P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>The date of this Prospectus is December 8, 2023</B></P>

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


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

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 94%">&nbsp;</TD>
    <TD STYLE="width: 6%; text-align: right"><FONT STYLE="font-size: 10pt"><B>Page</B></FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD><A HREF="#x6_c106800a001"><FONT STYLE="font-size: 10pt">STATEMENT REGARDING FORWARD-LOOKING STATEMENTS</FONT></A></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">v</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD><A HREF="#x6_c106800a002"><FONT STYLE="font-size: 10pt">PROSPECTUS SUMMARY</FONT></A></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">1</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD><A HREF="#x6_c106800a003"><FONT STYLE="font-size: 10pt">RISK FACTORS</FONT></A></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">9</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD><A HREF="#x6_c106800a004"><FONT STYLE="font-size: 10pt">BITCOIN, BITCOIN MARKET, BITCOIN EXCHANGES AND REGULATION OF BITCOIN</FONT></A></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">48</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD><A HREF="#x6_c106800a005"><FONT STYLE="font-size: 10pt">THE TRUST AND BITCOIN PRICES</FONT></A></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">53</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD><A HREF="#x6_c106800a006"><FONT STYLE="font-size: 10pt">CALCULATION OF NAV</FONT></A></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">57</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD><A HREF="#x6_c106800a007"><FONT STYLE="font-size: 10pt">ADDITIONAL INFORMATION ABOUT THE TRUST</FONT></A></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">61</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD><A HREF="#x6_c106800a008"><FONT STYLE="font-size: 10pt">THE TRUST&rsquo;S SERVICE PROVIDERS</FONT></A></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">65</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD><A HREF="#x6_c106800a009"><FONT STYLE="font-size: 10pt">CUSTODY OF THE TRUST&rsquo;S ASSETS</FONT></A></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">73</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD><A HREF="#x6_c106800a010"><FONT STYLE="font-size: 10pt">FORM OF SHARES</FONT></A></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">75</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD><A HREF="#x6_c106800a011"><FONT STYLE="font-size: 10pt">TRANSFER OF SHARES</FONT></A></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">76</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD><A HREF="#x6_c106800a012"><FONT STYLE="font-size: 10pt">PLAN OF DISTRIBUTION</FONT></A></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">77</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD><A HREF="#x6_c106800a013"><FONT STYLE="font-size: 10pt">CREATION AND REDEMPTION OF SHARES</FONT></A></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">79</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD><A HREF="#x6_c106800a014"><FONT STYLE="font-size: 10pt">USE OF PROCEEDS</FONT></A></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">84</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD><A HREF="#x6_c106800a015"><FONT STYLE="font-size: 10pt">OWNERSHIP OR BENEFICIAL INTEREST IN THE TRUST</FONT></A></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">85</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD><A HREF="#x6_c106800a016"><FONT STYLE="font-size: 10pt">CONFLICTS OF INTEREST</FONT></A></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">86</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD><A HREF="#x6_c106800a017"><FONT STYLE="font-size: 10pt">DUTIES OF THE SPONSOR</FONT></A></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">88</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD><A HREF="#x6_c106800a018"><FONT STYLE="font-size: 10pt">LIABILITY AND INDEMNIFICATION</FONT></A></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">90</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD><A HREF="#x6_c106800a019"><FONT STYLE="font-size: 10pt">PROVISIONS OF LAW</FONT></A></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">93</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD><A HREF="#x6_c106800a020"><FONT STYLE="font-size: 10pt">MANAGEMENT; VOTING BY SHAREHOLDERS</FONT></A></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">94</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD><A HREF="#x6_c106800a021"><FONT STYLE="font-size: 10pt">BOOKS AND RECORDS</FONT></A></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">95</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD><A HREF="#x6_c106800a022"><FONT STYLE="font-size: 10pt">STATEMENTS, FILINGS, AND REPORTS TO SHAREHOLDERS</FONT></A></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">96</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD><A HREF="#x6_c106800a023"><FONT STYLE="font-size: 10pt">FISCAL YEAR</FONT></A></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">97</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD><A HREF="#x6_c106800a024"><FONT STYLE="font-size: 10pt">GOVERNING LAW; CONSENT TO DELAWARE JURISDICTION</FONT></A></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">98</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD><A HREF="#x6_c106800a025"><FONT STYLE="font-size: 10pt">LEGAL MATTERS</FONT></A></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">99</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD><A HREF="#x6_c106800a026"><FONT STYLE="font-size: 10pt">EXPERTS</FONT></A></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">100</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD><A HREF="#x6_c106800a027"><FONT STYLE="font-size: 10pt">MATERIAL CONTRACTS</FONT></A></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">101</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD><A HREF="#x6_c106800a028"><FONT STYLE="font-size: 10pt">UNITED STATES FEDERAL INCOME TAX CONSEQUENCES</FONT></A></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">102</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD><A HREF="#x6_c106800a029"><FONT STYLE="font-size: 10pt">PURCHASES BY EMPLOYEE BENEFIT PLANS</FONT></A></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">106</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD><A HREF="#x6_c106800a030"><FONT STYLE="font-size: 10pt">INFORMATION YOU SHOULD KNOW</FONT></A></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">107</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD><A HREF="#x6_c106800a031"><FONT STYLE="font-size: 10pt">SUMMARY OF PROMOTIONAL AND SALES MATERIAL</FONT></A></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">108</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD><A HREF="#x6_c106800a032"><FONT STYLE="font-size: 10pt">INTELLECTUAL PROPERTY</FONT></A></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">109</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD><A HREF="#x6_c106800a033"><FONT STYLE="font-size: 10pt">WHERE YOU CAN FIND MORE INFORMATION</FONT></A></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">110</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD><A HREF="#x6_c106800a034"><FONT STYLE="font-size: 10pt">PRIVACY POLICY</FONT></A></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">111</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD><A HREF="#x6_c106800a035"><FONT STYLE="font-size: 10pt">APPENDIX A GLOSSARY OF DEFINED TERMS</FONT></A></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">A-1</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD><A HREF="#x6_c106800a036"><FONT STYLE="font-size: 10pt">REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM</FONT></A></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">F-1</FONT></TD></TR>
  </TABLE>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">This Prospectus contains information
you should consider when making an investment decision about the Shares of the Trust. 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: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">The Shares of the Trust 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: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">Until [ ], 2023, all dealers effecting
transactions in the Shares, whether or not participating in this offering, may be required to deliver a prospectus. This requirement is
in addition to the dealer&rsquo;s obligation to deliver a prospectus when acting as underwriters and with respect to unsold allotments
or subscriptions.</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B><A NAME="x6_c106800a001"></A>STATEMENT
REGARDING FORWARD-LOOKING STATEMENTS</B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">This Prospectus includes &ldquo;forward-looking
statements&rdquo; which 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;intend&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 cryptocurrencies
markets and indexes that track such movements, 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. Whether
or not actual results and developments will conform to the Sponsor&rsquo;s expectations and predictions, however, is subject to a number
of risks and uncertainties, including the special considerations discussed in this Prospectus, general economic, market and business conditions,
changes in laws or regulations, including those concerning taxes, made by governmental authorities or regulatory bodies, and other world
economic and political developments. Consequently, all the forward-looking statements made in this Prospectus are qualified by these cautionary
statements, and there can be no assurance that 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 its Shares.</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B><A NAME="x6_c106800a002"></A>PROSPECTUS
SUMMARY</B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt"><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. For a glossary of defined terms, see Appendix A.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt"><I>As used below, Bitcoin with
an uppercase &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 digital asset within the Bitcoin network, bitcoin is written
with a lower case &ldquo;b.&rdquo;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">The VanEck Bitcoin Trust (the &ldquo;Trust&rdquo;)
is an exchange-traded fund that issues common shares of beneficial interest (the &ldquo;Shares&rdquo;) that trade on the Cboe BZX Exchange,
Inc. (the &ldquo;Exchange&rdquo;). The Trust&rsquo;s investment objective is to reflect the performance of the price of bitcoin less the
expenses of the Trust&rsquo;s operations. In seeking to achieve its investment objective, the Trust will hold bitcoin and will value its
Shares daily based on the reported MarketVector<SUP>TM</SUP> Bitcoin Benchmark Rate, which is calculated based on prices contributed by
exchanges that the Sponsor&rsquo;s affiliate, MarketVector Indexes GmbH (&ldquo;MarketVector&rdquo;), believes represent the top five
bitcoin exchanges based on the industry leading CCData Centralized Exchange Benchmark review report. See &ldquo;<I>The Trust and Bitcoin
Prices&mdash;Description of the MarketVector<SUP>TM</SUP> Bitcoin Benchmark Rate Construction and Maintenance</I>&rdquo; for more information.
The Trust is sponsored by VanEck Digital Assets, LLC (the &ldquo;Sponsor&rdquo;), a wholly-owned subsidiary of Van Eck Associates Corporation
(&ldquo;VanEck&rdquo;), a U.S. registered investment adviser with approximately $80.77 billion in assets under management.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">Bitcoin is a system for decentralized
digital value exchange that is designed to enable units of bitcoin to be transferred across borders without the need for currency conversion.
Bitcoin is not legal tender. The supply of bitcoin is not determined by a central government, but rather by an open-source software program
that limits both the total amount of bitcoin that will be produced and the rate at which it is released into the network. The responsibility
for maintaining the official ledger of who owns what bitcoin and for validating new bitcoin transactions is not entrusted to any single
central entity. Instead, it is distributed among the network&rsquo;s participants.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">Because peer-to-peer transfers
of bitcoin are recorded on the &ldquo;Bitcoin Blockchain&rdquo;, which is a digital public recordkeeping system or ledger, buying, holding
and selling bitcoin is very different than buying, holding and selling more conventional instruments like cash, stocks or bonds. For example,
bitcoin must either be acquired through the process of &ldquo;mining,&rdquo; obtained in a peer-to-peer transaction, or purchased through
an online bitcoin trading platform (an &ldquo;exchange&rdquo;) or other intermediary, such as a broker in the institutional over-the-counter
(&ldquo;OTC&rdquo;) market. Peer-to-peer transactions may be difficult to arrange, and involve complex and potentially risky procedures
around safekeeping, transferring and holding the bitcoin. Alternatively, purchasing bitcoin on an exchange requires choosing an exchange,
opening an account, and transferring funds to the exchange in order to purchase the bitcoin. Transactions on exchanges are not ordinarily
recorded on the Bitcoin Blockchain. There are currently a large number of bitcoin exchanges from which to choose, the quality and reliability
of which varies significantly. Some exchanges have been subject to unauthorized cybersecurity breaches (&ldquo;hacks&rdquo;), resulting
in significant losses to end users.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">The Trust provides direct exposure
to bitcoin and the Shares of the Trust are valued on a daily basis using prices drawn from a carefully evaluated group of exchanges selected
by MarketVector, which utilizes the CCData Centralized Exchange Benchmark data to construct the MarketVector<SUP>TM </SUP>Bitcoin Benchmark
Rate. The Trust provides investors with the opportunity to access the market for bitcoin through Shares held in a traditional brokerage
account without the potential barriers to entry or risks involved with holding or transferring bitcoin directly, acquiring it from an
exchange, or mining it, as referenced above. The Trust will custody its bitcoin at Gemini Trust Company, LLC (the &ldquo;Bitcoin Custodian&rdquo;),
a regulated third-party custodian that carries insurance and is chartered as a limited purpose trust company under the New York Banking
Law. The Trust will not use derivatives that may subject the Trust to 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>
</div>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">Bitcoin is based on the decentralized,
open source protocol of a peer-to-peer electronic network (the &ldquo;Bitcoin network&rdquo;). It is widely understood that no single
entity owns or operates the Bitcoin network. Bitcoin is not issued by governments, banks or any other centralized authority. The infrastructure
of the Bitcoin network is collectively maintained on a distributed basis by the network&rsquo;s participants, consisting of &ldquo;miners&rdquo;,
who run special software to validate transactions, developers, who maintain and contribute updates to the Bitcoin network&rsquo;s source
code, and users, who download and maintain on their individual computer a full or partial copy of the Bitcoin Blockchain and related software.
Anyone can be a user, developer, or miner. The Bitcoin network is accessed through software, and software governs bitcoin&rsquo;s creation,
movement, and ownership. The source code for the Bitcoin network and related software protocol is open-source, and anyone can contribute
to its development. The value of bitcoin is in part determined by the supply of, and demand for, bitcoin in the global markets for the
trading of bitcoin, 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 peer-to-peer transactions, among other factors.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">Bitcoin transaction and ownership
records are reflected on the Bitcoin Blockchain. Miners authenticate and bundle Bitcoin transactions sequentially into files called &ldquo;blocks&rdquo;,
which requires performing computational work to solve a cryptographic puzzle set by the Bitcoin network&rsquo;s software protocol. Because
each solved block contains a reference to the previous block, they form a chronological &ldquo;chain&rdquo; back to the first bitcoin
transaction. Copies of the Bitcoin Blockchain are stored in a decentralized manner on the computers of each individual Bitcoin network
full node, i.e., any user who chooses to maintain on their computer a full copy of the Bitcoin Blockchain as well as related software.
Each bitcoin is associated with a set of unique cryptographic &ldquo;keys&rdquo;, in the form of a string of numbers and letters, which
allow whoever is in possession of the private key to assign that bitcoin in a transfer that the Bitcoin network will recognize.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">MarketVector and the Sponsor believe
that the bitcoin market has matured such that it is operating at a level of efficiency and scale similar in material respects to established
global equity, fixed income and commodity markets. MarketVector and the Sponsor believe that this maturation is indicated by various objective
factors, including, but not limited to:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; 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: 36pt">&nbsp;</TD>
<TD STYLE="vertical-align: top; width: 36pt; text-align: left"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="vertical-align: top; text-align: justify">the
                                            December 2017 launch of futures contracts for bitcoin (&ldquo;Bitcoin Futures&rdquo;) on
                                            major, established and regulated commodity futures exchanges in the United States;</TD>
</TR>
<TR STYLE="vertical-align: top; text-align: justify">
    <TD>&nbsp;</TD>
<TD STYLE="vertical-align: top; text-align: left">&nbsp;</TD><TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; text-align: justify">
    <TD> </TD>
<TD STYLE="vertical-align: top; text-align: left">&nbsp;</TD><TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; text-align: justify">
    <TD>&nbsp;</TD>
<TD STYLE="vertical-align: top; text-align: left"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="vertical-align: top; text-align: justify">the
                                            subsequent growth of significant trading volume in those futures contracts (<I>e.g.</I>,
                                            there were 286,519 Bitcoin Futures contracts traded in October 2023 (approximately $43.5
                                            billion) compared to 93,611 ($3.9 billion) contracts traded in October 2019);</TD>
</TR>
<TR STYLE="vertical-align: top; text-align: justify">
    <TD> </TD>
<TD STYLE="vertical-align: top; text-align: left">&nbsp;</TD><TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; text-align: justify">
    <TD>&nbsp;</TD>
<TD STYLE="vertical-align: top; text-align: left">&nbsp;</TD><TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; text-align: justify">
    <TD>&nbsp;</TD>
<TD STYLE="vertical-align: top; text-align: left"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="vertical-align: top; text-align: justify">increased
                                            participation by established institutional firms (e.g., MassMutual) and publicly traded companies
                                            of all types (e.g., Tesla), that are both helping to drive demand for bitcoin and building
                                            out market and blockchain infrastructures to accommodate established investment channels
                                            and bitcoin applications beyond investment;</TD>
</TR>
<TR STYLE="vertical-align: top; text-align: justify">
    <TD>&nbsp;</TD>
<TD STYLE="vertical-align: top; text-align: left">&nbsp;</TD><TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; text-align: justify">
    <TD>&nbsp;</TD>
<TD STYLE="vertical-align: top; text-align: left"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="vertical-align: top; text-align: justify">the
                                            public offering of shares in registered investment companies, including ETFs, investing in
                                            Bitcoin Futures pursuant to registration statements declared effective by the SEC, and the
                                            offering of interests in private investment vehicles that invest in bitcoin by numerous investment
                                            managers, as well as the approval by regulators in many countries, such as Canada, Australia,
                                            Brazil, Switzerland, and across Europe, of exchange-listed and traded products (including
                                            exchange-traded funds) allowing investors to gain exposure to physical bitcoin through traditional,
                                            regulated brokerage accounts;</TD>
</TR>
<TR STYLE="vertical-align: top; text-align: justify">
    <TD>&nbsp;</TD>
<TD STYLE="vertical-align: top; text-align: left">&nbsp;</TD><TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; text-align: justify">
    <TD>&nbsp;</TD>
<TD STYLE="vertical-align: top; text-align: left"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="vertical-align: top; text-align: justify">the
                                            arrival of major, established market makers that rely on sophisticated and technologically
                                            enabled trading systems to arbitrage price discrepancies that may appear between bitcoin
                                            prices on different exchanges;</TD>
</TR>
<TR STYLE="vertical-align: top; text-align: justify">
    <TD>&nbsp;</TD>
<TD STYLE="vertical-align: top; text-align: left">&nbsp;</TD><TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; text-align: justify">
    <TD COLSPAN="2"> </TD><TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; text-align: justify">
    <TD>&nbsp;</TD>
<TD STYLE="vertical-align: top; text-align: left">&nbsp;</TD><TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; text-align: justify">
    <TD> </TD>
<TD STYLE="vertical-align: top; text-align: left">&nbsp;</TD><TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; text-align: justify">
    <TD>&nbsp;</TD>
<TD STYLE="vertical-align: top; text-align: left"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="vertical-align: top; text-align: justify">a
                                            significant expansion in the availability of institutional-quality custody services from
                                            regulated third-party custodians (<I>e.g.</I>, additional companies like BNY Mellon and Fidelity
                                            have begun offering custodial solutions for institutional accounts);</TD>
</TR>
<TR STYLE="vertical-align: top; text-align: justify">
    <TD> </TD>
<TD STYLE="vertical-align: top; text-align: left">&nbsp;</TD><TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; text-align: justify">
    <TD>&nbsp;</TD>
<TD STYLE="vertical-align: top; text-align: left">&nbsp;</TD><TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; text-align: justify">
    <TD>&nbsp;</TD>
<TD STYLE="vertical-align: top; text-align: left"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="vertical-align: top; text-align: justify">the
                                            confirmation by the Office of the Comptroller of the Currency that national banks may provide
                                            custody services for bitcoin and other virtual currencies; and</TD>
</TR>
<TR STYLE="vertical-align: top; text-align: justify">
    <TD>&nbsp;</TD>
<TD STYLE="vertical-align: top; text-align: left">&nbsp;</TD><TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; text-align: justify">
    <TD>&nbsp;</TD>
<TD STYLE="vertical-align: top; text-align: left"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="vertical-align: top; text-align: justify">the
                                            advent and increasing prevalence of significant insurance on custodied assets held at third-party
                                            custodians.</TD>
</TR></TABLE>

</div>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">MarketVector and the Sponsor believe
that these, as well as other, factors have combined to improve the efficiency of the bitcoin market, creating a dynamic, institutional-quality,
two-sided market. 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: 0; text-align: justify">&nbsp;</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">The Trust&rsquo;s investment objective
is to reflect the performance of the price of bitcoin less the expenses of the Trust&rsquo;s operations. In seeking to achieve its investment
objective, the Trust will hold bitcoin and will value its Shares daily based on the reported MarketVector<SUP>TM</SUP> Bitcoin Benchmark
Rate and process all creations and redemptions in transactions with Authorized Participants as described below.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">When the Trust sells or redeems
its Shares, it will do so in blocks of 50,000 Shares (a &ldquo;Creation Basket&rdquo;) that are based on the amount of bitcoin represented
by the Creation Basket being created, the amount of which is equal to the combined net asset value of the number of Shares included in
the Creation Basket. For a subscription in cash, the subscription shall be in the amount of cash needed to purchase the amount of bitcoin
represented by the Creation Basket being created, as calculated by the Administrator. For a redemption in cash, the Sponsor shall arrange
for the bitcoin represented by the Creation Basket to be sold and the cash proceeds distributed. Financial firms that are authorized to
purchase or redeem Shares with the Trust (known as &ldquo;Authorized Participants&rdquo; or &ldquo;APs&rdquo;) will deliver, or facilitate
the delivery of, bitcoin, in the case of &ldquo;in-kind&rdquo; subscriptions, to the Trust&rsquo;s account with the Bitcoin Custodian,
or cash, in the case of subscriptions for cash, to the Trust&rsquo;s account with the Cash Custodian, in exchange for Shares when they
purchase Shares. When Authorized Participants redeem Shares with the Trust, the Trust, through the Bitcoin Custodian, will deliver bitcoin,
in the case of &ldquo;in-kind&rdquo; redemptions, or through the Cash Custodian, will deliver cash, to such Authorized Participants in
exchange for their Shares. The Sponsor may sell bitcoin to pay certain expenses, which may be facilitated by the Bitcoin Custodian. All
bitcoin will be held by the Bitcoin Custodian, a third-party custodian that carries insurance and is chartered as a trust company under
the New York Banking Law. The Transfer Agent (as defined below) will facilitate the processing of purchase and sale orders in Creation
Baskets from the Trust.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>The MarketVector<SUP>TM</SUP> Bitcoin Benchmark
Rate</B></P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">Market Vector Indexes GmbH (&ldquo;MarketVector&rdquo;)
is the index sponsor and index administrator for the MarketVector<SUP>TM</SUP> Bitcoin Benchmark Rate (&ldquo;MarketVector<SUP>TM</SUP>
Bitcoin Benchmark Rate&#750; or &ldquo;Index&#750;). MarketVector is a wholly-owned subsidiary of VanEck. CryptoCompare Data Limited is
the calculation agent for the MarketVector<SUP>TM</SUP> Bitcoin Benchmark Rate and an affiliate of VanEck.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">The MarketVector<SUP>TM</SUP> Bitcoin
Benchmark Rate is a U.S. dollar-denominated composite reference rate for the price of bitcoin. The Index is calculated daily between 00:00
and 24:00 (CET) and the Index values are disseminated to data vendors. The Index is disseminated in USD and the closing and intraday value
is calculated over twenty three-minute intervals pursuant to a methodology referred to as an equal-weighted average of the volume-weighted
median price.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">The MarketVector<SUP>TM</SUP> Bitcoin
Benchmark Rate is designed to be a robust price for Bitcoin in USD. There is no component other than bitcoin in the Index. The underlying
exchanges are sourced from the industry leading CCData Centralized Exchange Benchmark review report. CCData&rsquo;s Centralized Exchange
Benchmark was established in 2019 as a tool designed to bring clarity to the digital asset exchange sector by providing a framework for
assessing risk and in turn bringing transparency and accountability to a complex and rapidly evolving market. The CCData Centralized Exchange
Benchmark methodology utilizes a combination of qualitative and quantitative metrics to analyze a comprehensive data set across eight
categories of evaluation: legal/regulation, KYC/transaction risk, data provision, security, team/exchange, asset quality/diversity, market
quality and negative events. See &ldquo;The Trust and Bitcoin Prices&mdash;Description of the MarketVector<SUP>TM </SUP>Bitcoin Benchmark
Rate Construction and Maintenance&rdquo; for more details. The CCData Centralized Exchange Benchmark review report provides a framework
for assessing risk of each exchange and brings transparency and accountability to a rapidly evolving market and industry. Based on the
CCData Centralized Exchange Benchmark, MarketVector initially selects the top five exchanges by rank for inclusion in the MarketVector<SUP>TM
</SUP>Bitcoin Benchmark Rate. If an eligible exchange is downgraded by two or more notches in a semi-annual review and is no longer in
the top five by rank, it is replaced by the highest ranked non-component exchange. Adjustments to exchange coverage are announced four
business days prior to the first business day of each of March and September at 23:00 CET. The MarketVector<SUP>TM </SUP>Bitcoin Benchmark
Rate is rebalanced at 16:00:00 GMT/BST on the last business day of each of February and August. The current exchange composition of the
MarketVector<SUP>TM </SUP>Bitcoin Benchmark Rate is Bitstamp, Coinbase, ItBit, LMAX, and Kraken.</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Pricing Information Available on the Exchange and
Other Sources</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">The following table lists the Exchange
symbols and their descriptions with respect to the Shares and the MarketVector<SUP>TM</SUP> Bitcoin Benchmark Rate:</P>
</div>

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<div style="border: black 1px solid; padding: 5pt">

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="background-color: White; width: 24px"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1px solid"><FONT STYLE="font-size: 8pt"><B>Ticker</B></FONT></TD>
    <TD STYLE="width: 2%"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 45%; border-bottom: Black 1px solid; text-align: center"><FONT STYLE="font-size: 8pt"><B>Description</B></FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(229,255,255)">
    <TD STYLE="background-color: White"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 8pt">HODL</FONT></TD>
    <TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 8pt">Market price per Share on the Exchange</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="background-color: White"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 8pt">HODL.IV</FONT></TD>
    <TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 8pt">Indicative intra-day value per Share</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(229,255,255)">
    <TD STYLE="background-color: White"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 8pt">HODL.NV</FONT></TD>
    <TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 8pt">End of day NAV</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="background-color: White"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 8pt">HODL.SO</FONT></TD>
    <TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 8pt">Number of outstanding Shares</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0pt"> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">The intra-day data in the above
table is published once every 15 seconds throughout each trading day.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">The current market price per Share
(symbol: &ldquo;HODL&rdquo;) will be published continuously as trades occur throughout each trading day on the consolidated tape by market
data vendors.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">The intra-day indicative value
per Share (symbol: &ldquo;HODL.IV&rdquo;) will be published by the Exchange once every 15 seconds throughout each trading day on the consolidated
tape by market data vendors.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">The most recent end-of-day net
asset value (&ldquo;NAV&rdquo;) (symbol: &ldquo;HODL.IV&rdquo;) will be published as of the close of business by market data vendors and
available on the Sponsor&rsquo;s website at [www.vaneck.com], or any successor thereto, and will be published on the consolidated tape.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">Any adjustments made to the MarketVector<SUP>TM</SUP>
Bitcoin Benchmark Rate will be published on the MarketVector website at https://www.MarketVector.com/ or any successor thereto.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">The intra-day levels and closing
levels of the MarketVector<SUP>TM</SUP> Bitcoin Benchmark Rate are published by MarketVector, and the closing NAV is published by the
Administrator.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">The Shares are not issued, sponsored,
endorsed, sold or promoted by the Exchange, and the Exchange makes no representation regarding the advisability of investing in the Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">MarketVector makes no warranty,
express or implied, as to the results to be obtained by any person or entity from the use of the MarketVector<SUP>TM</SUP> Bitcoin Benchmark
Rate for any purpose. Index information and any other data calculated and/or disseminated, in whole or part, by MarketVector is for informational
purposes only, not intended for trading purposes, and provided on an &ldquo;as is&rdquo; basis. MarketVector does not warrant that the
Index information will be uninterrupted or error-free, or that defects will be corrected. MarketVector also does not recommend or make
any representation as to possible benefits from any securities or investments, or third-party products or services. Shareholders should
undertake their own due diligence regarding securities and investment practices.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">For more information on the MarketVector<SUP>TM
</SUP>Bitcoin Benchmark Rate and MarketVector, see &ldquo;The Trust and Bitcoin Prices&rdquo; below.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">The Trust is a Delaware statutory
trust, formed on December 17, 2020 pursuant to the Delaware Statutory Trust Act. The Trust continuously issues common shares representing
fractional undivided beneficial interest in and 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 November
1, 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. The Sponsor is a limited liability company formed in the state of Delaware on December 8, 2020.</P>

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

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

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

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">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 United States and the listing
of Shares on the Exchange. The Sponsor will develop a marketing plan for the Trust, will prepare marketing materials regarding the Shares
of the Trust, and will exercise the marketing plan of the Trust on an ongoing basis. The Sponsor appoints and may remove the Trust&rsquo;s
other service providers, including the Trustee, Administrator, Transfer Agent, Bitcoin Custodian, and Marketing Agent, as well as any
additional, replacement, or successor service providers. The Sponsor has agreed to pay all operating expenses (except for litigation expenses
and other extraordinary expenses) out of the Sponsor&rsquo;s unified fee.</P>

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

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B><I>&nbsp;</I></B></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">The Trustee, a Delaware trust company,
acts as the trustee of the Trust as required to create a Delaware statutory trust in accordance with the Declaration of Trust and the
Delaware Statutory Trust Act.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">State Street Bank and Trust Company
(&ldquo;State Street&rdquo;) serves as the Trust&rsquo;s administrator (the &ldquo;Administrator&rdquo;). State Street&rsquo;s principal
address is One Congress Street, Boston, MA 02111. Under the Trust&rsquo;s Administration Agreement between State Street and the Trust
(the &ldquo;Trust Administration Agreement&rdquo;) and a separate cash custodian agreement, the Administrator provides certain administrative
and accounting services and financial reporting for the maintenance and operations of the Trust, including valuing the Trust&rsquo;s bitcoin
and calculating the net asset value per Share of the Trust and the net asset value of the Trust and maintaining the books of account of
the Trust. In addition, the Trust Administrator makes available the office space, equipment, personnel and facilities required to provide
such services. Under the cash custodian agreement (the &ldquo;Cash Custody Agreement&rdquo;), State Street may act as custodian for the
Trust&rsquo;s non-bitcoin assets, if any, and as custodian for the Trust&rsquo;s cash (in such capacity, the &ldquo;Cash Custodian&rdquo;).</P>

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

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">State Street serves as the transfer
agent for the Trust (the &ldquo;Transfer Agent&rdquo;). The Transfer Agent: (1) issues and redeems Shares of the Trust; (2) responds to
correspondence by Trust Shareholders and others relating to its duties; (3) maintains Shareholder accounts; and (4) makes periodic reports
to the Trust. The Trust&rsquo;s Transfer Agent will facilitate the settlement of Shares in response to the placement of creation orders
and redemption orders from Authorized Participants.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">Gemini Trust Company, LLC serves
as the Trust&rsquo;s Bitcoin Custodian and is a fiduciary under &sect; 100 of the New York Banking Law. The Bitcoin Custodian is authorized
to serve as the Trust&rsquo;s custodian under the Trust Agreement and pursuant to the terms and provisions of the Custody Agreement. The
Bitcoin Custodian has its principal office at 315 Park Ave South, Floor 16, New York, New York 10010.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">The Bitcoin Custodian makes available
to the Trust a custodial account for bitcoin maintained by the Bitcoin Custodian (&ldquo;Bitcoin Account&rdquo;) and access to an omnibus
custodial account held at depository institutions or money market funds in the Bitcoin Custodian&rsquo;s name for the benefit of its customers
at which a cash balance may be maintained (&ldquo;Fiat Account&rdquo;). The Bitcoin Custodian&rsquo;s services in respect of the Bitcoin
Account (i) allow bitcoin to be deposited from a public blockchain address to the Trust&rsquo;s bitcoin account and (ii) allow bitcoin
to be withdrawn from the bitcoin account to a public blockchain address as instructed by the Trust. The Trust expects to use the Fiat
Account to facilitate the purchase and sale of bitcoin in connection with the cash creations and redemptions. In respect of the Fiat Account,
the Bitcoin Custodian holds the Trust&rsquo;s cash held in its Fiat Account in one or more omnibus accounts for the benefit of the Bitcoin
Custodian&rsquo;s customers at depository institutions or money market funds.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">The Sponsor may, in its sole discretion,
add or terminate other bitcoin custodians. The Sponsor may, in its sole discretion, change the custodian for the Trust&rsquo;s bitcoin
holdings, but it will have no obligation to do so or to seek any particular terms for the Trust from other such custodians.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">In addition to the bitcoin custodial
services described herein, the Bitcoin Custodian will also provide the Trust with clearing and settlement services for bitcoin purchase
and sale transactions between the Trust and its trading partners. These services are detailed within the clearing agreement between the
Trust and the Bitcoin Custodian (the &ldquo;Clearing Agreement&rdquo;).</P>

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">Van Eck Securities Corporation
(the &ldquo;Marketing Agent&rdquo;), a wholly-owned subsidiary of VanEck, is responsible for reviewing and approving the marketing materials
prepared by the Trust for compliance with applicable SEC and Financial Industry Regulatory Authority (&ldquo;FINRA&rdquo;) advertising
laws, rules, and regulations.</P>
</div>

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<div style="border: black 1px solid; padding: 5pt">

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">The Trust will pay the Sponsor
a unified fee of [ ] (the &ldquo;Sponsor Fee&rdquo;). The Sponsor Fee is paid by the Trust to the Sponsor as compensation for services
performed under the Trust Agreement. The Administrator will make its determination regarding the Sponsor Fee in respect of each day by
reference to the Trust&rsquo;s NAV as of that day. The Sponsor Fee will accrue in U.S. dollars and be payable in U.S. dollars or bitcoin.
The Sponsor has agreed to pay all ordinary operating expenses (except for litigation expenses and other extraordinary expenses) out of
the Sponsor Fee. The Sponsor from time to time will sell bitcoin, which may be facilitated by the Bitcoin Custodian, in such quantity
as is necessary to permit payment of the Sponsor Fee and may also sell bitcoin, which may be facilitated by the Bitcoin Custodian, in
such quantities as may be necessary to permit the payment of Trust expenses and liabilities not assumed by the Sponsor. The Sponsor is
authorized to sell bitcoin, which may be facilitated by the Bitcoin Custodian, at such times and in the smallest amounts required to permit
such payments as they become due, it being the intention to avoid or minimize the Trust&rsquo;s holdings of assets other than bitcoin.
Accordingly, the amount of bitcoin to be sold may vary from time to time depending on the level of the Trust&rsquo;s expenses and liabilities
and the market price of bitcoin.</P>

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

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">The Trust&rsquo;s Bitcoin Custodian
will keep custody of all of the Trust&rsquo;s bitcoin and will safeguard the private keys to the bitcoin associated with the Trust&rsquo;s
Bitcoin Account. Bitcoin private keys are stored in two different forms: &ldquo;hot&rdquo; storage, whereby the private keys are stored
on secure, internet-connected devices (a &ldquo;hot wallet&rdquo;), and &ldquo;cold&rdquo; storage, where digital currency private keys
are stored completely offline. The Custody Agreement requires the Bitcoin Custodian to hold the Trust&rsquo;s bitcoin in cold storage,
unless required to facilitate withdrawals as a temporary measure. Other than in connection with withdrawals, the assets associated with
which may temporarily be held in a [segregated] hot storage custody account to facilitate the withdrawal, the Bitcoin Custodian will use
segregated cold storage bitcoin addresses for the Trust. The addresses on the Bitcoin Blockchain at which the Trust&rsquo;s bitcoin are
held by the Bitcoin Custodian are separate from the bitcoin addresses that the Bitcoin Custodian uses for its other customers and are
directly verifiable via the Bitcoin Blockchain. The Bitcoin Custodian will at all times record and identify in its books and records that
such bitcoins constitute the property of the Trust. The Bitcoin Custodian will not withdraw the Trust&rsquo;s bitcoin from the Trust&rsquo;s
account with the Bitcoin Custodian, or loan, hypothecate, pledge or otherwise encumber the Trust&rsquo;s bitcoin, without the Trust&rsquo;s
instruction. The Trust will not lease or loan bitcoin held in the Trust&rsquo;s account with the Bitcoin Custodian.</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">The Bitcoin Custodian has adopted
the following security policies and practices with respect to digital assets held in cold storage: hardware security modules (&ldquo;HSMs&rdquo;)
are used to generate, store and manage cold storage private keys; multi-signature technology is used to provide both security against
attacks and tolerance for losing access to a key or facility, eliminating single points of failure; all HSMs are stored offline in air-gapped
environments within a diverse network of guarded, monitored and access-controlled facilities that are geographically distributed; multiple
levels of physical security and monitoring controls are implemented to safeguard HSMs within storage facilities; and all fund transfers
require the coordinated actions of multiple employees.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">The Sponsor has evaluated the Bitcoin
Custodian&rsquo;s policies, procedures, and controls for safekeeping, exclusively possessing, and controlling the Trust&rsquo;s bitcoin
holdings and believes these are designed consistent with accepted industry practices to protect against theft, loss, and unauthorized
and accidental use of the private keys, though the Sponsor does not control the Bitcoin Custodian&rsquo;s operations or implementation
of such policies, procedures and controls and there can be no assurance that they 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.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">Although the Bitcoin Custodian
carries insurance, the Bitcoin Custodian&rsquo;s insurance does not cover any loss in value of bitcoin and only covers losses caused by
certain events such as fraud or theft and, in such covered events, it is unlikely the insurance would cover the full amount of any losses
incurred by the Trust. The insurance maintained by the Bitcoin Custodian is shared among all of the Bitcoin Custodian&rsquo;s customers,
is not specific to the Trust or to customers holding bitcoin with the Bitcoin Custodian, 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: 0; text-align: justify">&nbsp;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">The Trust expects to use the Fiat
Account to facilitate the purchase and sale of bitcoin in connection with the cash creations and redemptions. In respect of the Fiat Account,
the Bitcoin Custodian holds the Trust&rsquo;s cash held in its account at the Bitcoin Custodian in one or more Customer Omnibus Accounts.
&ldquo;Customer Omnibus Account&rdquo; means, with respect to fiat currency held for customers of the Bitcoin Custodian in fiat accounts
(including the Trust&rsquo;s cash balance in its Fiat Account), omnibus bank accounts (each an &ldquo;Omnibus Account&rdquo;) at depository
institutions (each, a &ldquo;Bank&rdquo;)&#894; money market accounts (each, a &ldquo;Money Market Account&rdquo;) at a Bank or financial
institution&#894; and/or payment accounts (each, a &ldquo;Payment Account&rdquo;) at a financial institution. The Trust intends to maintain
any cash not held in the Bitcoin Custodian&rsquo;s Fiat Account at the Cash Custodian in accordance with the Cash Custody Agreement.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">The Trust generally does not intend
to hold cash or cash equivalents except temporarily in connection with a cash creation or redemption transaction or to pay expenses. However,
there may be situations where the Trust will unexpectedly hold cash on a temporary basis. For additional information, see &ldquo;<I>Custody
of the Trust&rsquo;s Assets.</I>&rdquo;</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">As described in more detail below
in &ldquo;NET ASSET VALUE DETERMINATIONS,&rdquo; &ldquo;NAV&rdquo; means the total assets of the Trust including, but not limited to,
all bitcoin and cash less total liabilities of the Trust.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">The Trust Agreement gives the Sponsor
the exclusive authority to determine the Trust&rsquo;s NAV and the Trust&rsquo;s NAV per share, which it has delegated to the Administrator.
The Administrator determines the NAV of the Trust on each day that the Exchange is open for regular trading, as promptly as practical
after 4:00 p.m. Eastern time based on the MarketVector<SUP>TM </SUP>Bitcoin Benchmark Rate. The NAV of the Trust is the aggregate value
of the Trust&rsquo;s assets less its estimated accrued but unpaid liabilities (which include accrued expenses). In determining the Trust&rsquo;s
NAV, the Administrator values the Shares of the Trust based on the price set by the MarketVector<SUP>TM </SUP>Bitcoin Benchmark Rate as
of 4:00 p.m. Eastern time. The Administrator also determines the NAV per Share. The Sponsor believes that use of the MarketVector<SUP>TM</SUP>
Bitcoin Benchmark Rate mitigates against idiosyncratic market risk, as the failure of any individual spot market will not materially impact
pricing for the Trust. It also allows the Administrator to calculate the NAV in a manner that significantly deters manipulation.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">However, determining the value
of Trust&rsquo;s bitcoin using the MarketVector<SUP>TM</SUP> Bitcoin Benchmark Rate is not in accordance with U.S. generally accepted
accounting principles (&ldquo;GAAP&rdquo;), and therefore is not used in the Trust&rsquo;s financial statements. The Trust&rsquo;s bitcoins
are carried, for financial statement purposes, at fair value, as required by GAAP. The Trust determines the fair value of bitcoin based
on the price provided by the bitcoin market that the Trust considers its &ldquo;principal market&rdquo; as of 4:00 p.m., Eastern time,
on the valuation date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">The Trust is an exchange-traded
fund. When the Trust sells or redeems its Shares, it will do so in blocks of 50,000 Shares (a &ldquo;Creation Basket&rdquo;) that are
based on the amount of bitcoin represented by the Creation Basket being created, the amount of which is equal to the combined net asset
value of the number of Shares included in the Creation Basket. Only Authorized Purchasers may purchase or redeem Shares with the Trust.
For subscriptions, APs will deliver, or facilitate the delivery of, bitcoin, in the case of &ldquo;in-kind&rdquo; subscriptions, to the
Trust&rsquo;s account with the Bitcoin Custodian, or cash, in the case of subscriptions for cash, to the Trust&rsquo;s account with the
Cash Custodian, in exchange for Shares when they purchase Shares. When APs redeem Shares with the Trust, the Trust, through the Bitcoin
Custodian, will deliver bitcoin, in the case of &ldquo;in-kind&rdquo; redemptions, or through the Cash Custodian, will deliver cash, to
such APs in exchange for their Shares. APs 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. The initial AP
is expected to be [ ]. Shareholders 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 of the Trust.</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">Shareholders 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.
Prior to this offering, there has been no public market for the Shares. The Shares are expected to be listed for trading, subject to notice
of issuance, on the Exchange under the ticker symbol &ldquo;HODL.&rdquo;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">It is expected that owners of Shares
will be treated, for U.S. federal income tax purposes, as if they own a proportionate share of the assets of the Trust, as if they directly
receive a proportionate share of any income of the Trust, and as if they will incur 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) would constitute 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: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">Proceeds received by the Trust
from the issuance of Creation Baskets consist of bitcoin, or cash. Deposits of bitcoin are held by the Bitcoin Custodian on behalf of
the Trust.</P>
</div>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">An investment in the Trust involves
a high degree of risk. Some of the risks you may face are summarized below. A more extensive discussion of these risks appears beginning
on page 9.</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 36pt"></TD><TD STYLE="width: 36pt"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">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 prices of bitcoin, could
have a material adverse effect on the value of the Shares and the Shares could lose all or substantially all of their value.</TD></TR>
<TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
<TD STYLE="width: 36pt"></TD><TD STYLE="width: 0.05pt"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">The value of the Shares is subject to a number of factors relating to the fundamental investment characteristics
of bitcoin as a digital asset, including the fact that digital assets are bearer instruments and loss, theft, destruction, or compromise
of the associated private keys could result in permanent loss of the asset, and the capabilities and development of blockchain technologies
such as the Bitcoin blockchain.</TD></TR>
<TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
<TD STYLE="width: 36pt"></TD><TD STYLE="width: 0.05pt"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">Due to the nature of private keys, bitcoin transactions are irrevocable and stolen or incorrectly transferred
bitcoin may be irretrievable. As a result, any incorrectly executed bitcoin transactions could adversely affect an investment in the Trust.</TD></TR>
<TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
<TD STYLE="width: 36pt"></TD><TD STYLE="width: 0.05pt"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">The value of the Shares relates directly to the value of bitcoins, the value of which may be highly volatile
and subject to fluctuations due to a number of factors.</TD></TR>
<TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
<TD> </TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
<TD STYLE="width: 36pt"></TD><TD STYLE="width: 0.05pt"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">The Index has a limited history, the Index price could fail to track the global bitcoin price, and a failure
of the Index price could adversely affect the value of the Shares.</TD></TR>
<TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
<TD STYLE="width: 36pt"></TD><TD STYLE="width: 0.05pt"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">The Index price used to calculate the value of the Trust&rsquo;s bitcoin may be volatile, adversely affecting
the value of the Shares.</TD></TR>
<TR STYLE="vertical-align: top">
<TD> </TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
<TD STYLE="width: 36pt"></TD><TD STYLE="width: 0.05pt"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">Security threats to the Trust&rsquo;s account with the Bitcoin Custodian 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.</TD></TR>
<TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
<TD STYLE="width: 36pt"></TD><TD STYLE="width: 0.05pt"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">Due to the unregulated nature and lack of transparency surrounding the operations of bitcoin exchanges,
they may experience fraud, security failures or operational problems, which may adversely affect the value of bitcoin and, consequently,
the value of the Shares.</TD></TR>
<TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
<TD STYLE="width: 36pt"></TD><TD STYLE="width: 0.05pt"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">Digital asset markets in the U.S. exist in a state of regulatory uncertainty, and adverse legislative
or regulatory developments could significantly harm the value of bitcoin or the Shares, such as by banning, restricting or imposing onerous
conditions or prohibitions on the use of bitcoins, mining activity, digital wallets, the provision of services related to trading and
custodying bitcoin, the operation of the Bitcoin network, or the digital asset markets generally.</TD></TR>
<TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
<TD STYLE="width: 36pt"></TD><TD STYLE="width: 0.05pt"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">Shareholders do not have the protections associated with ownership of Shares in an investment company
registered under the 1940 Act or the protections afforded by the Commodity Exchange Act.</TD></TR>
<TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
<TD STYLE="width: 36pt"></TD><TD STYLE="width: 0.05pt"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">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 service business under
the regulations promulgated by FinCEN, 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.</TD></TR>
<TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
<TD STYLE="width: 36pt"></TD><TD STYLE="width: 0.05pt"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">The treatment of digital currency for U.S. federal income tax purposes is uncertain.</TD></TR>
<TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
<TD STYLE="width: 36pt"></TD><TD STYLE="width: 0.05pt"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">Potential conflicts of interest may arise among the Sponsor or its affiliates and the Trust. The Sponsor
and its affiliates have no fiduciary duties to the Trust and its Shareholders other than as provided in the Trust Agreement, which may
permit them to favor their own interests to the detriment of the Trust and its Shareholders.</TD></TR></TABLE>
</div>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B><A NAME="x6_c106800a003"></A>RISK
FACTORS</B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt"><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: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Risks Associated with Bitcoin And The
Bitcoin Network</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"><B><I>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 Prices Of Bitcoin, Could Have A Material Adverse Effect On The Value Of
The Shares And The Shares Could Lose All Or Substantially All Of Their Value.</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: 36pt">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 2021, and multiple market
observers asserted that digital assets were experiencing a &ldquo;bubble.&rdquo; These increases were followed by steep drawdowns
throughout 2022 in digital asset trading prices, including for bitcoin. These episodes of rapid price appreciation followed by
steep drawdowns have occurred multiple times throughout bitcoin&rsquo;s history, including in 2011, 2013-2014, and 2017-2018, before
repeating again in 2021-2022. Over the course of 2023, bitcoin prices have continued to exhibit extreme volatility.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">Extreme volatility may
persist and the value of the Shares may significantly decline in the future without recovery. The digital asset markets may still
be experiencing a bubble or may experience a bubble again in the future. For example, in the first half of 2022, each of Celsius
Network, Voyager Digital Ltd., and Three Arrows Capital declared bankruptcy, resulting in a loss of confidence in participants
of the digital asset ecosystem and negative publicity surrounding digital assets more broadly. In November 2022, FTX Trading Ltd.
(&ldquo;FTX&rdquo;), one of the largest digital asset exchanges 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. 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 (&ldquo;Genesis&rdquo;). In response to these events (collectively, the &ldquo;2022 Events&rdquo;), the digital asset markets
have experienced extreme price volatility and other entities in the digital asset industry have been, and may continue to be, negatively
affected, further undermining confidence in the digital asset markets. These events have also negatively impacted the liquidity
of the digital asset markets as certain entities affiliated with FTX engaged in significant trading activity. If the liquidity
of the digital asset markets continues to be negatively impacted by these events, digital asset prices, including bitcoin, may
continue to experience significant volatility or price declines and confidence in the digital asset markets may be further undermined.
In addition, regulatory and enforcement scrutiny has increased, including from, among others, the Department of Justice, the SEC,
the CFTC, the White House and Congress, as well as state regulators and authorities. These events are continuing to develop and
the full facts are continuing to emerge. It is not possible to predict at this time all of the risks that they may pose to the
Trust, its service providers or to the digital asset industry as a whole.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">Extreme volatility in
the future, including further declines in the trading prices of bitcoin, could have a material adverse effect on the value of the
Shares and the Shares could lose all or substantially all of their value. 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.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>The Value Of The Shares Depends On
The Development And Acceptance Of The Bitcoin Network. The Slowing Or Stopping Of The Development Or Acceptance Of The Bitcoin
Network May Adversely Affect An Investment In The Trust.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">Digital assets such
as bitcoin were only introduced within the past 15 years, and the value of the Shares is subject to a number of factors over time
relating to the capabilities and development of blockchain technologies, such as the recentness of their development, their dependence
on the internet and other technologies, their dependence on the role played by users, developers and miners and the potential for
malicious activity. Given the recentness of the development of digital asset networks, digital assets may not function as intended
and parties may be unwilling to use digital assets, which would dampen the growth, if any, of digital asset networks. Because bitcoin
is a digital asset, the value of the Shares is subject to a number of factors relating to the fundamental investment characteristics
of digital assets, including the fact that digital assets are bearer instruments and loss, theft, compromise, or destruction of
the associated private keys could result in permanent loss of the asset.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">The Bitcoin network,
including the cryptographic and algorithmic protocols associated with the operation of the Bitcoin Blockchain, has only been in
existence since 2009, and bitcoin markets have a limited performance record, making them part of a new and rapidly evolving industry
that is subject to a variety of factors that are difficult to evaluate. For example, the following are some of the risks could
materially 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: 36pt">&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: 36pt"></TD><TD STYLE="width: 36pt"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">Digital assets, including bitcoin, are controllable only by the possessor of both the unique public
key and private key or keys relating to the Bitcoin network address, or &ldquo;wallet&rdquo;, at which the digital asset is held.
Private keys must be safeguarded and kept private in order to prevent a third party from accessing the digital asset held in such
wallet. The loss, theft, compromise or destruction of a private key required to access a digital asset may be irreversible. If
a private key is lost, stolen, destroyed or otherwise compromised and no backup of the private key is accessible, the owner would
be unable to access the digital asset corresponding to that private key and the private key will not be capable of being restored
by the digital asset network resulting in the total loss of the value of the digital asset linked to the private key.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 72pt; text-align: justify; text-indent: -36pt">&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: 36pt"></TD><TD STYLE="width: 36pt"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">Banks and other established financial institutions may refuse to process funds for bitcoin transactions;
process wire transfers to or from bitcoin exchanges, bitcoin-related companies or service providers; or maintain accounts for persons
or entities transacting in bitcoin. This could dampen liquidity in the market and damage the public perception of digital assets
generally or any one digital asset in particular, such as bitcoin, and their or its utility as a payment system, which could decrease
the price of digital assets generally or individually. Further, the lack of availability of banking services, including those provided
by the Cash Custodian, could inhibit or prevent the Trust from being able to complete cash creations or redemptions, or the timely
liquidation of bitcoin even if the Sponsor determined that such liquidation were appropriate or suitable.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 72pt; text-align: justify; text-indent: -36pt">&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: 36pt"></TD><TD STYLE="width: 36pt"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">Users, developers and miners may otherwise switch to or adopt certain digital assets at the expense
of their engagement with other digital asset networks, which may negatively impact those networks, including 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: 36pt"></TD><TD STYLE="width: 36pt"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">As the Bitcoin network continues to develop and grow, certain technical issues might be uncovered
and the trouble shooting and resolution of such issues requires the attention and efforts of Bitcoin&rsquo;s global development
community. Like all software, the Bitcoin network is at risk of vulnerabilities and bugs that can potentially be exploited by malicious
actors. For example, in 2010, the Bitcoin network underwent a hard fork to reverse the effects of a hack in which an unknown attacker
took advantage of a software vulnerability in the early source code of the Bitcoin network to fraudulently mint a large amount
of bitcoin.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 72pt; text-align: justify; text-indent: -36pt">&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: 36pt"></TD><TD STYLE="width: 36pt"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">In August 2017, the Bitcoin network underwent a hard fork that resulted in the creation of a new
digital asset network called Bitcoin Cash. This hard fork was contentious, and as a result some users of the Bitcoin Cash network
may harbor ill will toward the Bitcoin network. These users may attempt to negatively impact the use or adoption of the Bitcoin
network, as could constituencies adversely impacted by any contentious hard forks that take place in the future.</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="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; text-align: justify">
    <TD STYLE="width: 36pt">&nbsp;</TD>
<TD STYLE="width: 36pt; text-align: left; vertical-align: top"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">Also in August 2017, the Bitcoin network was upgraded with a technical feature known
as &ldquo;Segregated Witness&rdquo; with the promise of increasing the number of transactions per second that can be handled on-chain
and enabling so-called second layer solutions, such as the Lightning Network or payment channels, that have the potential to increase
transaction throughput by processing certain transactions outside the main Bitcoin Blockchain, but which may fail to achieve the
expected benefits or widespread adoption or lead to new or unanticipated problems, leading to a decline in public support for,
and the price of, bitcoin.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 72pt; text-align: justify; text-indent: -36pt">&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; text-align: justify">
    <TD STYLE="width: 36pt">&nbsp;</TD>
<TD STYLE="width: 36pt; text-align: left; vertical-align: top"><FONT STYLE="font: 10pt Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">As of the date of this registration statement, the largest
100 bitcoin wallets held a substantial amount of the outstanding supply of bitcoin and it is possible that some of these wallets
are controlled by the same person or entity. Moreover, it is possible that other persons or entities control multiple wallets
that collectively hold a significant number of bitcoin, even if each wallet individually only holds a small amount. As a result
of this concentration of ownership, large sales by such holders could have an adverse effect on the market price of bitcoin.</FONT></TD>
</TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">Moreover, because digital
assets, including bitcoin, have been in existence for a short period of time and are continuing to develop, there may be additional
risks in the future that are impossible to predict as of the date of this prospectus.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Due To The Nature Of Private Keys,
Bitcoin Transactions Are Irrevocable And Stolen Or Incorrectly Transferred Bitcoin May Be Irretrievable. As A Result, Any Incorrectly
Executed Bitcoin Transactions Could Adversely Affect An Investment In The Trust.</I></B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">Bitcoin transactions
are not reversible. Once a transaction has been signed with private keys, verified and recorded in a block that is added to the
Bitcoin Blockchain, an incorrect transfer of cryptocurrency, such as bitcoin, or a theft of bitcoin generally will not be reversible
and the Trust may not be capable of seeking compensation for any such transfer or theft. To the extent that the Trust is unable
to successfully seek redress for such error or theft, such loss 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: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">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
Administrator. The Sponsor has evaluated the procedures and internal controls of the Trust&rsquo;s Bitcoin Custodian to safeguard
the Trust&rsquo;s bitcoin holdings, as well as the procedures and internal controls of the Trust&rsquo;s Administrator. However,
it is possible that, through computer or human error, or through theft or criminal action, the Trust&rsquo;s bitcoin could be transferred
from the Trust&rsquo;s account at the Bitcoin Custodian in incorrect amounts or to unauthorized third parties, or to uncontrolled
accounts. Alternatively, 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
of the Trust. In addition, if the Trust&rsquo;s private key(s) is (are) misappropriated and the Trust&rsquo;s bitcoin holdings
are stolen, including from or by the Bitcoin Custodian, the Trust could lose some or all of its bitcoin holdings, which could adversely
impact an investment in the Shares of the Trust.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">Such events have occurred
in connection with digital assets in the past. For example, in September 2014, the Chinese digital asset exchange Huobi announced
that it had sent approximately 900 bitcoins and 8,000 Litecoins (worth approximately $400,000 at the prevailing market prices at
the time) to the wrong customers.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>A Disruption Of The Internet May
Affect Bitcoin Operations, Which May Adversely Affect The Bitcoin Industry And An Investment In The Trust.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">The Bitcoin network
relies on the Internet. A significant disruption of Internet connectivity (i.e., one that affects large numbers of users or geographic
regions) could disrupt the Bitcoin network&rsquo;s functionality and operations until the disruption in the Internet is resolved.
A disruption in the Internet could adversely affect an investment in the Trust 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: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>The Bitcoin Network&rsquo;s Decentralized
Governance Structure May Negatively Affect Its Ability To Grow And Respond To Challenges.</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: 36pt">The governance of decentralized
networks, such as the Bitcoin network, is by voluntary consensus and open competition. In other words, the Bitcoin network has
no central decision-making body or clear manner in which participants can come to an agreement other than through voluntary, widespread
consensus. As a result, a lack of widespread consensus in the governance of the Bitcoin network may adversely affect the network&rsquo;s
utility and ability to adapt and face challenges, including technical and scaling challenges. Historically the development of the
source code of the Bitcoin network has been overseen by the core developers. However, the Bitcoin network would cease to operate
successfully without both miners and users, and the core developers cannot formally compel them to adopt the changes to the source
code desired by core developers, or to continue to render services or participate in the Bitcoin network. As a general matter,
the governance of the Bitcoin network generally depends on most of members of the Bitcoin community ultimately reaching some form
of voluntary agreement on significant changes.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">The decentralized governance
of the Bitcoin network may make it difficult to find or implement solutions or marshal sufficient effort to overcome existing or
future problems, especially protracted ones requiring substantial directed effort and resource commitment over a long period of
time, such as scaling challenges. Deeply-held differences of the opinion have led to forks in the past, such as between Bitcoin
and Bitcoin Cash, and could lead to additional forks in the future, with potentially divisive effects. The Bitcoin network&rsquo;s
failure to overcome governance challenges could exacerbate problems experienced by the network or cause the network to fail to
meet the needs of its users, and could cause users, miners, and developer talent to abandon the Bitcoin network or to choose competing
blockchain protocols, or lead to a drop in speculative interest, which could cause the value of bitcoin to decline. If the Bitcoin
community is unable to reach consensus in the future, it could have adverse consequences for the network or lead to a fork, which
could affect the value of bitcoin.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Potential Amendments To The Bitcoin
Network&rsquo;s Protocols And Software Could, If Accepted And Authorized By The Bitcoin Network Community, Adversely Affect An
Investment In The Trust.</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: 36pt">The Bitcoin network
uses a cryptographic protocol to govern the interactions within the Bitcoin network. A loose community known as the core developers
has evolved to informally manage the source code for the protocol. Membership in the community of core developers evolve over time,
largely based on self-determined participation in the resource section dedicated to bitcoin on Github.com. The core developers
can propose amendments to the Bitcoin network&rsquo;s source code that, if accepted by miners and users, could alter the protocols
and software of the Bitcoin network and the properties of bitcoin. These alterations would occur through software upgrades, and
could potentially include changes to the irreversibility of transactions and limitations on the mining of new bitcoin, which could
undermine the appeal and market value of bitcoin. Alternatively, software upgrades and other changes to the protocols of the Bitcoin</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">
network could fail to work as intended or could introduce bugs, security risks, or otherwise adversely affect, the speed, security,
usability, or value of the Bitcoin network or bitcoins. As a result, the Bitcoin network could be subject to new protocols and
software in the future that may adversely affect 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"><B><I>The Open-Source Structure Of The
Bitcoin Network Protocol Means That The Core Developers And Other Contributors Are Generally Not Directly Compensated For Their
Contributions In Maintaining And Developing The Bitcoin Network Protocol. A Failure To Properly Monitor And Upgrade The Bitcoin
Network Protocol Could Damage The Bitcoin Network And An Investment In The Trust.</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: 36pt">The Bitcoin network
operates based on an open-source protocol maintained by the core developers and other contributors, largely on the GitHub resource
section dedicated to bitcoin development. As the Bitcoin network protocol is not sold or made available subject to licensing or
subscription fees and its use does not generate revenues for its development team, the core developers are generally not compensated
for maintaining and updating the source code for the Bitcoin network protocol. Consequently, there is a lack of financial incentive
for developers to maintain or develop the Bitcoin network and the core developers may lack the resources to adequately address
emerging issues with the Bitcoin network protocol. Although the Bitcoin network is currently supported by the core developers,
there can be no guarantee that such support will continue or be sufficient in the future. For example, there have been recent reports
that the number of core developers who have the authority to make amendments to the Bitcoin network&rsquo;s source code in the
GitHub repository is relatively small, although there are believed to be a larger number of developers who contribute to the overall
development of the source code of the Bitcoin network. Alternatively, some developers may be funded by entities whose interests
are at odds with other participants in the Bitcoin network. In addition, a bad actor could also attempt to interfere with the operation
of the Bitcoin network by attempting to exercise a malign influence over a core developer. To the extent that material issues arise
with the Bitcoin network protocol and the core developers and open-source contributors are unable to address the issues adequately
or in a timely manner, the Bitcoin network and an investment in the Trust may be adversely affected.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>A Temporary Or Permanent &ldquo;Fork&rdquo;
Of The Bitcoin Blockchain Could Adversely Affect An Investment In The Trust.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">Bitcoin software is
open source. Any user can download the software, modify it and then propose that the core developers, users and miners adopt the
modification. When a modification is introduced by the core developers and a substantial majority of users and miners consent to
the modification, the change is implemented and the Bitcoin network continues to operate uninterrupted on a single blockchain.
However, if less than a substantial majority of users and miners consent to the proposed modification, but the modification is
nonetheless implemented by some users and miners and the modification is not compatible with the software prior to its modification,
the consequence would be what is known as a &ldquo;fork&rdquo; (i.e., &ldquo;split&rdquo;) of the Bitcoin network (and the 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 lacking
interchangeability, and with different blockchains. Such a fork in the Bitcoin Blockchain typically would be addressed by community-led
efforts to merge the forked Bitcoin Blockchains, and several prior forks have been so merged. Since the Bitcoin network&rsquo;s
inception, modifications to the Bitcoin network have generally been accepted by the majority of users and miners, ensuring that
the Bitcoin network remains a coherent economic system and the focal point of the majority of developer activity. There is no assurance,
however, that this will continue to be the case, and if it is not, then the price of bitcoin could be negatively affected. The
original blockchain and the forked blockchain could potentially compete with each other for users, developers, and miners, leading
to a loss of these for the original blockchain. 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: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">Additionally, a fork
could be introduced by an unintentional, unanticipated software flaw in the multiple versions of otherwise compatible software
miners and users run. It is also possible that, in a future accidental or unintentional fork, 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 blockchains,
resulting in a permanent fork. Any of these events could cause bitcoin to decline in value.</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; text-indent: 36pt">Furthermore, a hard fork can lead to new
security concerns. For example, when the Ethereum and Ethereum Classic networks split in July 2016, replay attacks, in which transactions
from one network were rebroadcast to nefarious effect on the other network, plagued digital assets exchanges through at least October
2016. A digital assets exchange announced in July 2016 that it had lost 40,000 Ether Classic, worth about $100,000 at that time,
as a result of replay attacks. Another possible result of a hard fork is an inherent decrease in the level of security due to significant
amounts of mining power remaining on one network or migrating instead to the new forked network. After a hard fork, it may become
easier for an individual miner or mining pool&rsquo;s hashing power to exceed 50% of the processing power of the network that retained
or attracted less mining power, thereby making digital assets that rely on that network, which could include bitcoin, more susceptible
to attack. Any of these events could cause the Bitcoin network to be less attractive to potential users, or cause a decline in
speculative interest, and thereby cause bitcoin to decline in value.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">Forks have occurred
already to the Bitcoin network, including, but not limited to, forks resulting in the creation of Bitcoin Cash (August 1, 2017),
Bitcoin Gold (October 24, 2017) and Bitcoin SegWit2X (December 28, 2017), among others. If another fork occurs, the Trust would
hold equal amounts of both the original bitcoin and the alternative forked asset. The Trust has adopted procedures to address situations
involving a fork that results in the issuance of new alternative bitcoin that the Trust may receive. Typically, the holder of bitcoin
has no discretion in a hard fork; it merely has the right to claim the new forked asset on a pro rata basis while it continues
to hold the same number of bitcoin.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">The Trust Agreement
stipulates that if such a transaction does occur, the Trust will as soon as possible direct the Bitcoin Custodian to distribute
the new cryptocurrency in-kind to the Sponsor, as agent for the Shareholders, and the Sponsor will arrange to sell the new cryptocurrency
and for the proceeds to be distributed to the Shareholders. However, the Trust may not be able, or it may not be practical, to
secure the new asset or realize any economic benefit from it, and neither the Trust nor the Sponsor is under any obligation to
do so.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">For example, the Trust
is under no obligation to claim the forked asset if doing so is impossible, impractical, prohibited by law, operationally burdensome,
will expose the Trust, the Sponsor, or the Trust&rsquo;s (original) bitcoin holdings to risk, may cause the Trust to fail to qualify
as a grantor trust under the Code or any comparable provision of the laws of any State or other jurisdiction where such treatment
is sought, unjustified given the costs of taking possession and/or maintaining ownership of the forked asset exceed the benefits
of owning the forked asset, or is otherwise inadvisable, in each case, as determined by the Sponsor in its sole and absolute discretion,
taking into account whatever factors it deems necessary or appropriate. Alternatively, the Bitcoin Custodian may not agree to provide
the Trust with access to the new asset. Pursuant to the Custody Agreement, the Bitcoin Custodian will make a determination, in
its sole discretion, whether to support a forked asset. In the event the Bitcoin Custodian chooses to not support the forked asset,
it may, in its discretion, allow a one-time withdrawal of the forked asset by the Trust, or the Bitcoin Custodian may elect not
to pursue obtaining such forked asset on behalf of the Trust. There is no guarantee that the Bitcoin Custodian will support a forked
asset or that the Trust will be able to make a one-time withdrawal of a forked asset that is not supported by the Bitcoin Custodian.
Even if the Bitcoin Custodian supports a forked asset or the Trust is able to make a one-time withdrawal of a forked asset, the
Sponsor may be unable to make arrangements for the new cryptocurrency to be sold. For these or other reasons, the Sponsor may determine,
in its sole and absolute discretion, to cause the Trust to irrevocably and permanently abandon, for no consideration, such forked
assets.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">Similarly, neither the
Trust nor the Sponsor shall be under any obligation to claim or attempt to secure or realize any economic benefit from &ldquo;airdropped&rdquo;
assets, and the Sponsor may determine, in its sole and absolute discretion, to cause the Trust to irrevocably and permanently abandon,
for no consideration, such forked assets.</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">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,
in good faith, which peer-to-peer 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, service providers, 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 digital asset 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, security vendors and MarketVector
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: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>A Hard Fork Could Change The Source
Code To The Bitcoin Network, Including The 21 Million Bitcoin Supply Cap.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">In principle a hard
fork could change the source code for the Bitcoin network, including the source code which limits the supply of bitcoin to 21 million.
Although many observers believe this is unlikely at present, there is no guarantee that the current 21 million supply cap for outstanding
bitcoin, which is estimated to be reached by approximately the year 2140, will not be changed. If a hard fork changing the 21 million
supply cap is widely adopted, the limit on the supply of bitcoin could be lifted, which could have an adverse impact on the value
of bitcoin and the value of the Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>The Bitcoin Blockchain Could Be Vulnerable
To A &ldquo;51% Attack&rdquo;, Which Could Adversely Affect An Investment In The Trust Or The Ability Of The Trust To Operate.</I></B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">If the majority of the
processing power dedicated to mining on the Bitcoin network is controlled by a bad actor (often referred to as a &ldquo;51% attack&rdquo;),
it may be able to alter the Bitcoin Blockchain on which the Bitcoin network and bitcoin transactions rely. This could occur if
the bad actor were to construct fraudulent blocks or prevent certain transactions from completing in a timely manner, or at all.
It could be possible for the malicious actor to control, exclude or modify the ordering of transactions. Further, a bad actor could
&ldquo;double-spend&rdquo; its own bitcoin (i.e., spend the same bitcoin in more than one transaction) and prevent the confirmation
of other users&rsquo; transactions, while continuing to mine new bitcoin and confirm its own blocks, for so long as it maintained
control. If the Bitcoin community did not reject the fraudulent blocks as malicious or to the extent that such bad actor did not
yield its control of processing power, reversing any changes made to the Bitcoin Blockchain may be impossible. Further, a malicious
actor or botnet could create a flood of transactions in order to slow down the Bitcoin network.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">For example, in August
2020, the Ethereum Classic Network was the target of two double-spend attacks by an unknown actor or actors that gained more than
50% of the processing power of the Ethereum Classic network. The attacks resulted in reorganizations of the Ethereum Classic blockchain
that allowed the attacker or attackers to reverse previously recorded transactions in excess of $5.0 million and $1.0 million.
Any similar attacks on the Bitcoin network could negatively impact the value of bitcoin and the value of the Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">In addition, in May
2019, the Bitcoin Cash network experienced a 51% attack when two large mining pools reversed a series of transactions in order
to stop an unknown miner from taking advantage of a flaw in a recent Bitcoin Cash protocol upgrade. Although this particular attack
was arguably benevolent, the fact that such coordinated activity was able to occur may negatively impact perceptions of the Bitcoin
Cash network. Any similar attacks on the Bitcoin network could negatively impact the value of bitcoin and the value of the Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">Although there are no
known reports of malicious activity on, or control of, the Bitcoin network since its early days, it is believed that certain mining
pools may have exceeded the 50% threshold on the Bitcoin network since the Bitcoin blockchain&rsquo;s genesis block was mined in
2009, and others have come close. The possible crossing or near-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. Also, there have been reports that two mining
pools recently controlled in excess of 50% of the aggregate mining power on the Bitcoin network and may do so now or in the future.
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. Also, if miners experience financial or other difficulties
on a large scale and are unable to participate in mining activities, whether due to a downturn in the Bitcoin market or other factors,
the risks of the Bitcoin network becoming more centralized could increase.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt">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 users and miners accept amendments to the source code proposed by the controlled core
developer, other core developers do not counter such amendments, and such amendments enable the malicious exploitation of the Bitcoin
network, the risk that a malicious actor may be able to obtain control of the Bitcoin network in this manner exists.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>If Miners Expend Less Processing
Power On The Bitcoin Network, It Could Increase The Likelihood Of A Malicious Actor Obtaining Control.</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: 36pt">Miners ceasing operations
would reduce the collective processing power on the Bitcoin network, which would adversely affect the confirmation process for
transactions (i.e., temporarily decreasing the speed at which blocks are added to the Bitcoin Blockchain until the next scheduled
adjustment in difficulty for block solutions). If a reduction in processing power occurs, the Bitcoin network may be more vulnerable
to a malicious actor obtaining control in excess of fifty percent (50%) of the processing power on the Bitcoin network, which would
enable them to manipulate the Bitcoin Blockchain and hinder transactions. Any reduction in confidence in the transaction confirmation
process or processing power of the Bitcoin network may 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: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Blockchain Technologies Are Based
On Theoretical Conjectures As To The Impossibility Of Solving Certain Cryptographical Puzzles Quickly. These Premises May Be Incorrect
Or May Become Incorrect Due To Technological Advances.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">Blockchain technologies
are premised on theoretical conjectures as to the impossibility, in practice, of solving certain mathematical problems quickly.
Those conjectures remain unproven, however, and mathematical or technological advances could conceivably prove them to be incorrect.
Blockchain technology companies may also be negatively affected by cryptography or other technological or mathematical advances,
such as the development of quantum computers with significantly more power than computers presently available, that undermine or
vitiate the cryptographic consensus mechanism underpinning the Bitcoin Blockchain and other </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">distributed ledger protocols. If either
of these events were to happen, markets that rely on blockchain technologies, such as the Bitcoin network, could quickly collapse,
and an investment in the Trust may be adversely affected.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Currently, There Is Relatively Small
Use Of Bitcoin In The Retail And Commercial Marketplace In Comparison To Relatively Large Use By Speculators And Those Perceiving
Bitcoin As A Store Of Value, Thus Contributing To Price Volatility That Could Adversely Affect An Investment In The Trust.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">Certain merchants and
major retail and commercial businesses have only recently begun accepting bitcoin and the Bitcoin network as a means of payment
for goods and services. Consumer use of bitcoin to pay such retail and commercial outlets, however, remains limited. Yet, market
speculators and investors seeking to profit from the short- or long-term holding of bitcoin generate a significant portion of demand
for bitcoin, which can contribute to price volatility, which in turn can make bitcoin less attractive to merchants and commercial
parties as a means of payment. A lack of expansion by bitcoin into retail and commercial markets or a contraction of such use may
result in a reduction in the price of bitcoin, which could adversely affect an investment in the Trust.</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Sales Of New Bitcoin May Cause The
Price Of Bitcoin To Decline, Which Could Negatively Affect An Investment In The Trust.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">Newly created bitcoin
are generated through a process referred to as &ldquo;mining.&rdquo; If entities engaged in bitcoin mining choose not to hold the
newly mined bitcoin, and, instead, make them available for sale, there can be downward pressure on the price of bitcoin. 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, including due to an increase in electricity costs or a decline in the market price or amount of bitcoin
issued as a mining reward, or if mining operations are unable to arrange alternative sources of financing (e.g., if lenders refuse
to make loans to such miners), 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-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Operational Cost May Exceed The Award
For Solving Blocks Or Transaction Fees. Increased Transaction Fees May Adversely Affect The Usage Of The Bitcoin Network.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">The Bitcoin network
is designed to periodically reduce the fixed award given to miners for solving new blocks (the &ldquo;block reward&rdquo;), most
recently in May 2020, when the block reward reduced from 12.5 to 6.25 bitcoin. Under the source code that governs the Bitcoin network,
the supply of new bitcoin is mathematically controlled so that the number of bitcoin grows at a limited rate pursuant to a pre-set
schedule. The block reward is automatically halved after every 210,000 blocks are added to the Bitcoin blockchain, approximately
every 4 years. As noted above, currently the block reward is 6.25 bitcoin per block and this is expected to decrease by half to
become 3.125 bitcoin in approximately early 2024. This deliberately controlled rate of bitcoin creation means that the number of
bitcoin in existence will increase at a controlled rate until the number of bitcoin in existence reaches the pre-determined 21
million bitcoin. As of December 31, 2022, approximately 19.3 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: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">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. Increased transaction fees may motivate market participants,
such as merchants or commercial institutions, to switch from bitcoin to another digital asset or back to fiat currency as their
preferred medium of exchange. Decreased demand for bitcoin may adversely affect its price, which may 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: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">To the extent that any
miners cease to record transactions that do not include the payment of a transaction fee in mined blocks or do not record a transaction
because the transaction fee is too low, such transactions will not be recorded on the Bitcoin Blockchain until a block is mined
by a miner who does not require the payment of transaction fees or is willing to accept a lower fee. Also, some miners have financed
the acquisition of mining equipment or the development or construction of infrastructure to perform mining activities by borrowing.
If such miners experience financial difficulties and are unable to pay back their borrowings, their mining capacity could become
unavailable to the Bitcoin network, which could conceivably result in disruptions in recording transactions on the Bitcoin network.
Any widespread delays or disruptions in the recording of transactions could result in a loss of confidence in the Bitcoin network
and could prevent the Trustee from completing transactions associated with the day-to-day management of the Trust, including creations
and redemptions of the Shares in exchange for bitcoin with APs.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">Ultimately, if the awards
of new bitcoin for solving blocks declines and transaction fees for recording transactions are not sufficiently high to exceed
the costs of mining, miners may operate at a loss or cease operations. If the award does not exceed the costs of mining in the
long-term, miners may have to cease operations entirely. If miners cease their operations, this could have a negative impact on
the Bitcoin network and could adversely affect the value of the bitcoin held by the Trust. If the awards for mining blocks or</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"> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">the
transaction fees for recording transactions on the Bitcoin network are not sufficiently high to incentivize miners, miners may
cease expending processing power to mine blocks and confirmations of transactions on the Bitcoin Blockchain could be slowed.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Miners Could Act In Collusion To
Raise Transaction Fees, Which May Adversely Affect The Usage Of The Bitcoin Network.</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: 36pt">Bitcoin miners collect
fees for each transaction they confirm. Miners validate unconfirmed transactions by adding the previously unconfirmed transactions
to new blocks in the 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. To the extent that any miners cease to record transactions in solved
blocks, such transactions will not be recorded on the Bitcoin Blockchain until a block is solved by a miner who does not require
the payment of transaction fees. Miners have historically accepted relatively low transaction confirmation fees, because miners
have a low marginal cost of validating unconfirmed transactions. If miners demand higher transaction fees for recording transactions
in the Bitcoin Blockchain or a software upgrade automatically charges fees for all transactions on the Bitcoin network, the cost
of using bitcoin may increase and global markets may be reluctant to accept bitcoin as a means of payment. If miners collude in
an anticompetitive manner to reject low transaction fees, then bitcoin users could be forced to pay higher fees, thus reducing
the attractiveness of the bitcoin network, or to wait longer times for their transactions to be validated by a miner who does not
require the payment of a transaction fee. 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 Trust or the ability
of the Trust to operate. Higher transaction confirmation fees resulting through collusion or otherwise may adversely affect the
attractiveness of the Bitcoin network, the value of bitcoin and the value of the Shares.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>As Technology Advances, Miners May
Be Unable To Acquire The Digital Asset Mining Hardware Necessary To Develop And Launch Their Operations. A Decline In The Bitcoin
Mining Population Could Adversely Affect The Bitcoin Network And An Investment In The Trust.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">Due to the increasing
demand for digital asset mining hardware, miners may be unable to acquire the proper mining equipment or suitable amount of equipment
necessary to continue their operations or develop and launch their operations. In addition, because successful mining of a digital
asset that uses &ldquo;proof of work&rdquo; validation requires maintaining or exceeding a certain level of computing power relative
to other validators, miners will need to upgrade their mining hardware periodically to keep up with their competition. The development
of supercomputers with disproportionate computing power may threaten the integrity of the bitcoin market by concentrating mining
power, which would make it unprofitable for other miners to mine. The expense of purchasing or upgrading new equipment may be substantial
and diminish returns to miners dramatically. A decline in miners may result in a decrease in the value of bitcoin and the value
of the Trust.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>If Profit Margins Of Bitcoin Mining
Operations Are Not High, Miners May Elect To Immediately Sell Bitcoin Earned By Mining, Resulting In A Reduction In The Price Of
Bitcoin That Could Adversely Affect An Investment In The Trust.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">Bitcoin network mining
operations have rapidly evolved over the past several years from individual users mining with computer processors, graphics processing
units and first-generation ASIC (application-specific integrated circuit) machines. New processing power is predominantly added
to the Bitcoin network currently by &ldquo;professionalized&rdquo; mining operations. Such operations may use proprietary hardware
or sophisticated ASIC machines acquired from ASIC manufacturers. Significant capital is necessary for mining operations to acquire
this hardware, lease operating space (often in data centers or warehousing facilities), afford electricity costs and employ technicians
to operate the mining farms. As a result, professionalized mining operations are of a greater scale than prior Bitcoin network
validators and have more defined, regular expenses and liabilities. In addition, mining operations may choose to immediately sell
bitcoin earned from their operations into the global bitcoin market. In past years, individual miners are believed to have been
more likely to hold newly mined bitcoin for more extended periods. The immediate selling of newly mined bitcoin would increase
the supply of bitcoin on the bitcoin market, creating downward pressure on the price of bitcoin.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">A professional mining
operation operating at a low profit margin may be more likely to sell a higher percentage of its newly mined bitcoin rapidly, and
it may partially or completely cease operations if its profit margin is negative. In a low profit margin environment, a higher
percentage of the new bitcoin mined each day will be sold into the bitcoin market more rapidly, thereby reducing bitcoin prices.
The network effect of reduced profit margins resulting in greater sales of newly mined bitcoin could result in a reduction in the
price of bitcoin that could adversely affect an investment in the Trust.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Congestion Or Delay In The Bitcoin
Network May Delay Purchases Or Sales Of Bitcoin By The Trust.</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: 36pt">The size of each block
on the Bitcoin Blockchain is currently limited, and is significantly below the level that centralized systems can provide. Increased
transaction volume could result in delays in the recording of transactions due to congestion in the Bitcoin network. Moreover,
unforeseen system failures, disruptions in operations, or poor connectivity may also result in delays in the recording of transactions
on the Bitcoin network. Any delay in the Bitcoin network could affect the Trust&rsquo;s ability to buy or sell bitcoin at an</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"> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">advantageous
price, or may create the opportunity for a bad actor to double spend bitcoin, resulting in decreased confidence in the Bitcoin
network. Over the longer term, delays in confirming transactions could reduce the attractiveness to merchants and other commercial
parties as a means of payment. As a result, the Bitcoin network and the value of the Trust would be adversely affected.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Electricity Usage.</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: 36pt">Digital asset mining
operations can consume significant amounts of electricity, which may have a negative environmental impact and give rise to public
opinion against allowing, or government regulations restricting, the use of electricity for mining operations. Additionally, miners
may be forced to cease operations during an electricity shortage or power outage, or if electricity prices increase where the mining
activities are performed. This could adversely affect the price of bitcoin, or the operation of the Bitcoin network, and accordingly
decrease 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: 36pt">Concerns have been raised
about the electricity required to secure and maintain digital asset networks. 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. The operations of the Bitcoin network and other digital asset networks may also consume
significant amounts of energy. Further, in addition to the direct energy costs of performing calculations on any given digital
asset network, there are indirect costs that impact a network&rsquo;s total energy consumption, including the costs of cooling
the machines that perform these calculations. Other methods of achieving transaction validation and security on digital asset networks,
such as so-called &ldquo;proof-of-stake&rdquo; consensus mechanisms used by competing digital asset networks, may be more energy
efficient or use less electricity to achieve transaction validation and consensus on the network than the &ldquo;proof-of-work&rdquo;
consensus mechanism used by the Bitcoin Blockchain. If users, developers, and miners adopt such competing digital asset networks
rather than the Bitcoin Blockchain due to the perceived advantages in terms of energy usage of such networks and their consensus
mechanisms, the value of the Shares could be adversely impacted.</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; text-indent: 36pt">Driven by concerns around energy consumption
and the impact on public utility companies, various states and cities have implemented, or are considering implementing, moratoriums
on mining activity in their jurisdictions. A significant reduction in mining activity as a result of such actions could adversely
affect the security of the Bitcoin network by making it easier for a malicious actor or botnet to manipulate the relevant blockchain.
If regulators or public utilities take action that restricts or otherwise impacts mining activities, such actions could result
in decreased security of a digital asset network, including the Bitcoin network, and consequently adversely impact the value of
the Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Risks Associated with the Digital Asset
Markets</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><I>The Value Of The Shares Relates Directly
To The Value Of Bitcoins, The Value Of Which May Be Highly Volatile And Subject To Fluctuations Due To A Number Of Factors.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">The value of the Shares
relates directly to the value of the bitcoins held by the Trust and fluctuations in the price of bitcoin could adversely affect
the value of the Shares. The market price of bitcoin may be highly volatile, and subject to a number of factors, including:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&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: 36pt"></TD><TD STYLE="width: 36pt"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">an increase in the global bitcoin supply or a decrease in global bitcoin demand;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 72pt; text-align: justify; text-indent: -36pt">&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: 36pt"></TD><TD STYLE="width: 36pt"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">market conditions of, and overall sentiment towards, the digital assets and blockchain technology
industry;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 72pt; text-align: justify; text-indent: -36pt">&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: 36pt"></TD><TD STYLE="width: 36pt"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">trading activity on digital asset exchanges, which, in many cases, are largely unregulated or may
be subject to manipulation;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 72pt; text-align: justify; text-indent: -36pt">&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: 36pt"></TD><TD STYLE="width: 36pt"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">the adoption of bitcoin as a medium of exchange, store-of-value or other consumptive asset and
the maintenance and development of the open-source software protocol of the Bitcoin network, and their ability to meet user demands;</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: 36pt"></TD><TD STYLE="width: 36pt"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">forks in the Bitcoin network;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 72pt; text-align: justify; text-indent: -36pt">&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: 36pt"></TD><TD STYLE="width: 36pt"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">investors&rsquo; expectations with respect to interest rates, the rates of inflation of fiat currencies
or bitcoin, and digital asset exchange rates;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 72pt; text-align: justify; text-indent: -36pt">&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: 36pt"></TD><TD STYLE="width: 36pt"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">consumer preferences and perceptions of bitcoin specifically and digital assets generally;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 72pt; text-align: justify; text-indent: -36pt">&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: 36pt"></TD><TD STYLE="width: 36pt"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">negative events, publicity, and social media coverage relating to the digital assets and blockchain
technology industry;</TD></TR></TABLE>
<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"> </P>
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<TD STYLE="width: 36pt"></TD><TD STYLE="width: 36pt"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">fiat currency withdrawal and deposit policies on 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" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 36pt"></TD><TD STYLE="width: 36pt"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">the liquidity of digital asset markets and any increase or decrease in trading volume or market
making on digital asset markets;</TD></TR></TABLE>

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<TD STYLE="width: 36pt"></TD><TD STYLE="width: 36pt"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">business failures, bankruptcies, hacking, fraud, crime, government investigations, or other negative
developments affecting digital asset businesses, including digital asset exchanges, or banks or other financial institutions and
service providers which provide services to the digital assets industry;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 72pt; text-align: justify; text-indent: -36pt">&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: 36pt"></TD><TD STYLE="width: 36pt"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">the use of leverage in digital asset markets, including the unwinding of positions, &ldquo;margin
calls&rdquo;, collateral liquidations and similar events;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 72pt; text-align: justify; text-indent: -36pt">&nbsp;</P>

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<TD STYLE="width: 36pt"></TD><TD STYLE="width: 36pt"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">investment and trading activities of large or active consumer and institutional users, speculators,
miners, and investors in bitcoin;</TD></TR></TABLE>

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

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<TD STYLE="width: 36pt"></TD><TD STYLE="width: 36pt"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">monetary policies of governments, legislation or regulation, trade restrictions, currency devaluations
and revaluations and regulatory measures or enforcement actions, if any, that restrict the use of bitcoin as a form of payment
or the purchase of bitcoin on the digital asset markets;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 72pt; text-align: justify; text-indent: -36pt">&nbsp;</P>

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<TD STYLE="width: 36pt"></TD><TD STYLE="width: 36pt"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">global or regional political, economic or financial conditions, events and situations, such as
the novel coronavirus outbreak;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 72pt; text-align: justify; text-indent: -36pt">&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; text-align: justify">
    <TD STYLE="width: 36pt">&nbsp;</TD>
<TD STYLE="width: 36pt; text-align: left; vertical-align: top"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">fees associated with processing a bitcoin transaction and the speed at which bitcoin
transactions are settled;</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: 36pt"></TD><TD STYLE="width: 36pt"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">the maintenance, troubleshooting, and development of the Bitcoin network including by miners and
developers worldwide;</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: 36pt"></TD><TD STYLE="width: 36pt"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">the ability for the Bitcoin network to attract and retain miners to secure and confirm transactions
accurately and efficiently;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 72pt; text-align: justify; text-indent: -36pt">&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: 36pt"></TD><TD STYLE="width: 36pt"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">ongoing technological viability and security of the Bitcoin network and bitcoin transactions, including
vulnerabilities against hacks and scalability;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 72pt; text-align: justify; text-indent: -36pt">&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: 36pt"></TD><TD STYLE="width: 36pt"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">financial strength of market participants;</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: 36pt"></TD><TD STYLE="width: 36pt"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">the availability and cost of funding and capital;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 72pt; text-align: justify; text-indent: -36pt">&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: 36pt"></TD><TD STYLE="width: 36pt"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">the liquidity and credit risk of digital asset platforms;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 72pt; text-align: justify; text-indent: -36pt">&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: 36pt"></TD><TD STYLE="width: 36pt"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">interruptions in service from or closures or failures of major digital asset exchanges or their
banking partners, or outages or system failures affecting 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: 36pt"></TD><TD STYLE="width: 36pt"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">decreased confidence in digital assets and digital assets exchanges;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 72pt; text-align: justify; text-indent: -36pt">&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: 36pt"></TD><TD STYLE="width: 36pt"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">poor risk management or fraud by entities in the digital assets ecosystem;</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: 36pt"></TD><TD STYLE="width: 36pt"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">increased competition from other forms of digital assets or payment services; and</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 72pt; text-align: justify; text-indent: -36pt">&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; text-align: justify">
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<TD STYLE="width: 36pt; text-align: left; vertical-align: top"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">the Trust&rsquo;s own acquisitions or dispositions of bitcoin, since there is no limit
on the number of bitcoin that the Trust may acquire.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 72pt; text-align: justify; text-indent: -36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">Although returns from
investing in bitcoin have at times diverged from those associated with other asset classes to a greater or lesser extent, there
can be no assurance that there will be any such divergence in the future, either generally or with respect to any particular asset
class, or that price movements will not be correlated. In addition, there is no assurance that bitcoin will maintain its value</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">in the long, intermediate, short, or any other term. In the event that the price of bitcoin declines, the Sponsor expects the value
of the Shares to decline proportionately.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">The value of the Shares
of the Trust are represented by the MarketVector<SUP>TM</SUP> Bitcoin Benchmark Rate that may also be subject to momentum pricing
due to speculation regarding future appreciation in value of bitcoin, leading to greater volatility that could adversely affect
the value of the Shares. Momentum pricing typically is associated with growth stocks and other assets whose valuation, as determined
by the investing public, accounts for future appreciation in value, if any. The Sponsor believes that momentum pricing of bitcoins
has resulted, and may continue to result, in speculation regarding future appreciation in the value of bitcoin, inflating and making
the MarketVector<SUP>TM</SUP> Bitcoin Benchmark Rate more volatile. As a result, bitcoin may be more likely to fluctuate in value
due to changing investor confidence, which could impact future appreciation or depreciation in the MarketVector<SUP>TM</SUP> Bitcoin
Benchmark Rate and could adversely affect the value of the Trust.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">The Trust is not actively
managed and does not and will not have any strategy relating to the development of the Bitcoin network, nor will the Trust seek
to avoid or mitigate losses from declines in the bitcoin price. Furthermore, the impact of the expansion of the Trust&rsquo;s bitcoin
holdings on the digital asset industry and the Bitcoin network is uncertain. A decline in the popularity or acceptance of the Bitcoin
network, or the value of bitcoin, would harm the value of the Trust.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Digital Asset Networks Face Significant
Scaling Challenges And Efforts To Increase The Volume Of Transactions May Not Be Successful.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">Many digital asset networks
face 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. Achieving decentralization may mean 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. However, this may involve tradeoffs from an efficiency perspective, and impose constraints on transaction processing
speed (&ldquo;throughput&rdquo;).</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">As of December 31, 2020,
the Bitcoin network could handle approximately three to seven transactions per second. In an effort to increase the volume of transactions
that can be processed on a given digital asset network, many digital assets are being upgraded with various features to increase
the speed and throughput of digital asset transactions. In August 2017, the Bitcoin network was upgraded with a technical feature
known as &ldquo;Segregated Witness&rdquo; with the promise of increasing the number of transactions per second that can be handled
on-chain and enabling so-called second layer solutions, such as the Lightning Network or payment channels, that have the potential
to increase transaction throughput by processing certain transactions outside the main Bitcoin Blockchain. However, this upgrade,
and second layer solutions generally, may fail to achieve the expected benefits or widespread adoption. An increasing number of
wallets and digital asset intermediaries, such as exchanges, have begun supporting Segregated Witness and the Lightning Network,
or similar technology. However, the Lightning Network does not yet have material adoption as of the date of this registration statement,
and there are open questions about Lightning Network services, such as its cost and who will serve as intermediaries, among other
questions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">If increases in throughput
on the Bitcoin network lag behind growth in usage of bitcoin, average fees and settlement times may increase considerably. For
example, the Bitcoin network has been, at times, at capacity, which has led to increased transaction fees. Since January 1, 2019,
bitcoin transaction fees have increased from $0.18 per bitcoin transaction, on average, to a high of $60.95 per transaction, on
average, on April 20, 2021. As of December 31, 2022, bitcoin transaction fees were $1.17 per transaction, on average. Increased
fees and decreased settlement speeds could preclude certain uses for bitcoin (e.g., micropayments), and could reduce demand for,
and the price of, bitcoin, which could adversely impact the value of the Shares. In May 2023, events related to the adoption of
ordinals, which are a means of inscribing digital content on the bitcoin blockchain, caused transaction fees to temporarily spike
above $30 per transaction. As of May 22, 2023, bitcoin transaction fees were averaging $3.82 per transaction.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">Many developers are
actively researching and testing scalability solutions for public blockchains. However, there is no guarantee that any of the mechanisms
in place or being explored for increasing the scale of settlement of the Bitcoin network transactions will be effective, or how
long these mechanisms will take to become effective, which could adversely impact the value of the Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </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><I>Due To The Unregulated Nature And
Lack Of Transparency Surrounding The Operations Of Bitcoin Exchanges, They May Experience Fraud, Manipulation, Security Failures
Or Operational Problems, Which May Adversely Affect The Value Of Bitcoin And, Consequently, The Value 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: 36pt">Digital asset exchanges
are relatively new and, in some cases, unregulated. Many operate outside the United States. Furthermore, while many prominent digital
asset exchanges provide the public with significant information regarding their ownership</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt"></P>

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    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">structure, management teams, corporate
practices and regulatory compliance, many digital asset exchanges do not provide this information. Digital asset exchanges may
not be subject to, or may not comply with, regulation in a similar manner as other regulated trading platforms, such as national
securities exchanges or designated contract markets. As a result, the marketplace may lose confidence in digital asset exchanges,
including prominent exchanges that handle a significant volume of bitcoin trading.</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">Many digital asset exchanges
are unlicensed, 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, and may take the position that they are not subject to laws and regulations
that would apply to a national securities exchange or designated contract market in the United States, or may, as a practical matter,
be beyond the ambit of U.S. regulators. As a result, trading activity on or reported by these digital asset exchanges 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.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">The bitcoin market globally
and in the United States is not subject to comparable regulatory guardrails as exist in regulated securities markets. Furthermore,
many bitcoin trading venues lack certain safeguards put in place by exchanges for more traditional assets to enhance the stability
of trading on the exchanges and prevent &ldquo;flash crashes,&rdquo; such as limit-down circuit breakers. As a result, the prices
of bitcoin on trading venues 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 exchanges, or may not exist at all.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Bitcoin Exchanges May Be Exposed
To Fraud And Manipulation</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </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: 36pt">The SEC has identified
possible sources of fraud and manipulation in the bitcoin market generally, including, among others (1) &ldquo;wash trading&rdquo;;&thinsp;(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) or based on the
dissemination of false and misleading information; (6) manipulative activity involving purported &ldquo;stablecoins,&rdquo; including
Tether (for more information, see &ldquo;Risk Factors&mdash;Risk Factors Related to Digital Assets&mdash;Prices of bitcoin may
be affected due to stablecoins (including Tether and US Dollar Coin (&ldquo;USDC&rdquo;)), the activities of stablecoin issuers
and their regulatory treatment&rdquo;); and (7) fraud and manipulation at bitcoin trading platforms. The effect of potential market
manipulation, front-running, wash-trading, and other fraudulent or manipulative trading practices may inflate the volumes actually
present in crypto market and/or cause distortions in price, which could adversely affect the Trust or cause losses to Shareholders.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>
<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0"> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">Over the past several
years, some digital asset exchanges have been closed due to fraud and manipulative activity, business failure or security breaches.
In many of these instances, the customers of such digital asset exchanges were not compensated or made whole for the partial or
complete losses of their account balances in such digital asset exchanges. While, generally speaking, smaller digital asset exchanges
are less likely to have the infrastructure and capitalization that make larger digital asset exchanges more stable, larger digital
asset exchanges are more likely to be appealing targets for hackers and malware and may be more likely to be targets of regulatory
enforcement action. 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 exchanges could be subject to abrupt failure with consequences for both users
of digital asset exchanges 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. 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 exchange, Coincheck, was hacked, resulting in losses of approximately
$535 million, and in February 2018, the Italian digital asset exchange, Bitgrail, was hacked, resulting in approximately $170 million
in losses. In May 2019, one of the world&rsquo;s largest digital asset exchanges, Binance, was hacked, resulting in losses of approximately
$40 million. In November 2022, FTX, one of the largest digital asset exchanges by volume at the time, halted customer withdrawals
and filed for bankruptcy, which revealed a shortfall of customer funds. 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.</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;In 2019 there
were reports claiming that 80.95% of bitcoin trading volume on digital asset exchanges 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, such as fake or artificial
trading volume or trading volume based on non-economic &ldquo;wash trading&rdquo;.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">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.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt"><FONT STYLE="background-color: white">The
potential consequences of a digital asset exchange 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.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Bitcoin Exchanges May Be Exposed
To Front-Running</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"><FONT STYLE="background-color: white">Bitcoin
exchanges 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 exchanges. 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.</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"><B><I>Bitcoin Exchanges May Be Exposed
To Wash Trading</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-indent: 36pt; background-color: white">Bitcoin exchanges
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-indent: 24.5pt; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt; background-color: white">Even in the United
States, there have been allegations of wash trading even on regulated venues. Any actual or perceived false trading in the digital
asset exchange 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. If they were to affect trading at an exchange which is used to calculate
the MarketVector<SUP>TM</SUP> Bitcoin Benchmark Rate, they could cause the Trust&rsquo;s NAV to be calculated incorrectly and cause
Shareholders to suffer losses. See &ldquo;&mdash;The MarketVector<SUP>TM </SUP>Bitcoin Benchmark Rate may be affected by manipulative
or fraudulent practices in the global bitcoin market or at constituent exchanges.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">To the extent that wash
trading either occurs or appears to occur in bitcoin exchanges 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"> </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>

<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><I>Competition From Central Bank Digital
Currencies And Emerging Payments Initiatives Involving Financial Institutions Could Adversely Affect The Value Of Bitcoins And
Other Digital Assets.</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: 36pt">Central banks in various
countries have introduced digital forms of legal tender (&ldquo;CBDCs&rdquo;). 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>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Prices Of Bitcoin May Be Affected
Due To Stablecoins (Including Tether And US Dollar Coin (&ldquo;USDC&rdquo;)), The Activities Of Stablecoin Issuers And Their Regulatory
Treatment.</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: 36pt">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, including Bitfinex, 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 (the &ldquo;NYAG Settlement
Order&rdquo;). The NYAG Settlement Order states that Bitfinex and Tether are under common ownership and management. Among other
things, the NYAG Settlement Order asserts that Tether&rsquo;s operators made a series of loans of some of the fiat currency reserves
backing Tether stablecoins to Bitfinex, which Bitfinex used in its business, including to bridge liquidity difficulties it faced
after Bitfinex lost a substantial amount of customer cash due to the actions of a payment processor it employed. In return, Bitfinex
gave Tether a receivable promising to pay the funds back. The NYAG Settlement Order finds, among other things, that representations
Tether&rsquo;s operators made that each Tether stablecoin was backed 1:1 by fiat currency reserves were fraudulent under New York&rsquo;s
Martin Act, because some of the fiat currency reserves were replaced by a receivable issued by an affiliate (Bitfinex) without
disclosure to the market. On October 15, 2021, the CFTC announced a settlement with Tether&rsquo;s operators, Tether Holdings Limited,
Tether Operations Limited, Tether Limited, and Tether International Limited, 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. Bitfinex
also agreed to pay the CFTC a $1.5 million fine to settle charges that Bitfinex offered off-exchange leveraged, margined, or financed
transactions involving cryptocurrencies, including bitcoin, with U.S. customers who were not eligible contract participants and
accepted funds (including in the form of Tether stablecoins) and orders in connection with such illegal off-exchange transactions,
triggering an obligation to register with the CFTC, which the CFTC order asserts it violated. The CFTC previously fined Bitfinex
in 2016 on similar charges.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">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. 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 Federal Deposit Insurance Corporation (&ldquo;FDIC&rdquo;) 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-indent: 0.5in">&nbsp;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">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. Given Bitfinex has in the past been a component of the MarketVector<SUP>TM</SUP> Bitcoin Benchmark
Rate and Bitfinex and Tether are understood to be under common ownership and management, problems with Tether specifically could
potentially affect pricing of transactions on Bitfinex or otherwise disrupt Bitfinex&rsquo;s operations.</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><I>New Competing Digital Assets May
Pose A Challenge To Bitcoin&rsquo;s Current Market Position, 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.</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">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 evolving into the most well-developed network 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. Having a large mining
network provides users confidence regarding the security and long-term stability of the Bitcoin network. This in turn creates a
domino effect that inures to the benefit of the Bitcoin network &ndash; namely, the advantage of more users and miners makes a
digital asset more</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"> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">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 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 currencies
and trading systems could become more widely accepted and used than the Bitcoin network, which could lead to a decline in the value
of bitcoin.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </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>
<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><I>Failure Of Funds That Hold Digital
Assets To Receive SEC Approval To List Their Shares On Exchanges Could Adversely Affect The Value Of The Shares.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">There have been a growing
a number of attempts to list on national securities exchanges the shares of funds that hold digital assets. These investment vehicles
attempt to provide institutional and retail investors exposure to markets for digital assets and related products. The exchange
listing of shares of digital asset funds would create more opportunities for institutional and retail investors to invest in the
digital asset market. However, the SEC has repeatedly denied such requests. If exchange-listing requests continue to be denied
by the SEC, increased investment interest by institutional or retail investors could fail to materialize, which could reduce the
demand for digital assets generally 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: 36pt">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-size: 10pt"><B>Risks
Associated with the MarketVector</B></FONT><B><FONT STYLE="font-size: 8pt">TM </FONT><FONT STYLE="font-size: 10pt">Bitcoin Benchmark
Rate</FONT></B></P>

<P STYLE="font: 12pt 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><I>The MarketVector<SUP>tm</SUP> Bitcoin
Benchmark Rate Has A Limited History.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">The MarketVector<SUP>TM</SUP>
Bitcoin Benchmark Rate was developed by MarketVector and has a limited history. MarketVector has substantial discretion at any
time to change the methodology used to calculate the MarketVector<SUP>TM</SUP> Bitcoin Benchmark Rate, including the exchanges
that contribute prices to the Trust&rsquo;s NAV. MarketVector does not have any obligation to take the needs of the Trust, the
Trust&rsquo;s Shareholders, or anyone else into consideration in connection with such changes. There is no guarantee that the methodology
currently used in calculating the MarketVector<SUP>TM</SUP> Bitcoin Benchmark Rate will appropriately track the price of bitcoin
in the future.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">The MarketVector<SUP>TM</SUP>
Bitcoin Benchmark Rate is based on various inputs which may include price data from various third-party exchanges and markets.
MarketVector does not guarantee the validity of any of these inputs, which may be subject to technological error, manipulative
activity, or fraudulent reporting from their initial source. The MarketVector<SUP>TM</SUP> Bitcoin Benchmark Rate could be calculated
now or in the future in a way that adversely affects an investment in the Trust.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>The Marketvector<SUP>tm</SUP> Bitcoin
Benchmark Rate Could Fail To Track The Global Bitcoin Price, And A Failure Of The Marketvector<SUP>tm</SUP> Bitcoin Benchmark Rate
Could Adversely Affect The Value Of The Shares.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">Although the MarketVector<SUP>TM</SUP>
Bitcoin Benchmark Rate 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 bitcoin exchanges used in calculating the MarketVector<SUP>TM</SUP>
Bitcoin Benchmark Rate, and such transactions may take place at prices materially higher or lower than the MarketVector<SUP>TM</SUP>
Bitcoin Benchmark Rate. Moreover, there may be variances in the prices of bitcoin on the various bitcoin exchanges used in calculating
the MarketVector<SUP>TM</SUP> Bitcoin Benchmark Rate, including as a result of differences in fee structures or administrative
procedures on different exchanges. While the MarketVector<SUP>TM</SUP> Bitcoin Benchmark Rate provides a U.S. dollar-denominated
composite index for the price of bitcoin based on, at any given time, the prices on each such Constituent Exchange or pricing source
may not be equal to the value of a bitcoin as represented by the Index. It is possible that the price of bitcoins on the bitcoin
exchanges could be materially higher or lower than the MarketVector<SUP>TM</SUP> Bitcoin Benchmark Rate price. To the extent the
MarketVector<SUP>TM</SUP> Bitcoin Benchmark Rate price differs materially from the actual prices available on a bitcoin exchange
used to calculate it, 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 MarketVector<SUP>TM</SUP> Bitcoin Benchmark Rate, 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: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">If the MarketVector<SUP>TM</SUP>
Bitcoin Benchmark Rate is not available, the Trust&rsquo;s holdings may be fair valued in accordance with the policy approved by
the Sponsor. 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 bitcoins. 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.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Marketvector Has Analyzed Bitcoin
Exchange Data And Developed Insights That Have Informed Marketvector&rsquo;s Understanding Of The Bitcoin Market And The Design
Of The Trust. If Such Data Or Insights Are Inaccurate Or Incorrect, The Value Of An Investment In The Trust May Be Adversely Affected.</I></B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">MarketVector has relied
upon bitcoin market data in developing its analysis of the bitcoin market. This analysis has informed MarketVector&rsquo;s understanding
of the bitcoin market, the design of the Trust and the design of the MarketVector<SUP>TM</SUP> Bitcoin Benchmark Rate. The continued
viability of the Trust relies upon access to accurate data, and MarketVector&rsquo;s continued ability to effectively analyze such
data. If data is inaccurate or becomes unavailable, or if MarketVector&rsquo;s analysis of such data is incorrect, the value of
an investment in 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>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>The Marketvector<SUP>tm</SUP> Bitcoin
Benchmark Rate Used To Calculate The Value Of The Trust&rsquo;s Bitcoin May Be Volatile, Adversely Affecting The Value Of The Shares.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">The price of bitcoin
on public digital asset exchanges has a limited history, and during this history, bitcoin prices on the digital asset markets more
generally, and on digital asset exchanges individually, have been volatile and subject to influence by many factors, including
operational interruptions. While the MarketVector<SUP>TM</SUP> Bitcoin Benchmark Rate is designed to limit exposure to the interruption
of individual digital asset exchanges, the MarketVector<SUP>TM</SUP> Bitcoin Benchmark Rate, 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: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">Furthermore, because
the number of liquid and credible bitcoin exchanges is limited, the MarketVector<SUP>TM</SUP> Bitcoin Benchmark Rate will necessarily
be composed of a limited number of bitcoin exchanges. If a bitcoin exchange were subjected to regulatory, volatility or other pricing
issues, in the case of the MarketVector<SUP>TM</SUP> Bitcoin Benchmark Rate, the calculation agent would have limited ability to
remove such bitcoin exchange from the MarketVector<SUP>TM</SUP> Bitcoin Benchmark Rate, which could skew the price of bitcoin as
represented by the MarketVector<SUP>TM</SUP> Bitcoin Benchmark Rate. Trading on a limited number of bitcoin exchanges 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-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>The Marketvector<SUP>tm</SUP> Bitcoin
Benchmark Rate May Be Affected By Manipulative Or Fraudulent Practices In The Global Bitcoin Market Or At Constituent Exchanges</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: 36pt">The global bitcoin market
may be subject to fraud and manipulation, see &ldquo;&mdash;Due to the unregulated nature and lack of transparency surrounding
the operations of bitcoin exchanges, they may experience fraud, manipulation, security failures or operational problems, which
may adversely affect the value of bitcoin and, consequently, the value of the Shares,&rdquo; and the MarketVector<SUP>TM</SUP>
Bitcoin Benchmark Rate may be affected to the extent they cause global prices of bitcoin to be subject to factors other than bona
fide market forces.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">Fraud or manipulation
may also affect the constituent exchanges used to calculate the MarketVector<SUP>TM</SUP> Bitcoin Benchmark Rate. For example,
Coinbase paid $6.5 million in 2021 to settle a CFTC enforcement action for reckless false, misleading, or inaccurate reporting
as well as wash trading by a former employee on Coinbase&rsquo;s GDAX platform. According to the CFTC&rsquo;s order, during the
relevant period prior to the enforcement action, Coinbase operated at least two trading programs which generated orders that, at
times, matched with one another. Coinbase included the transactional information for these transactions, such as price and volume
data, on its website and provided that information to reporting services, either directly or through access to its website, resulting
in a perceived volume and level of liquidity of digital assets, including bitcoin, on GDAX that was false, misleading or inaccurate.
Additionally, between August and September 2016, the CFTC order finds that a former Coinbase employee intentionally placed buy
and sell orders in the Litecoin/bitcoin trading pair on GDAX, which he intended to match with one another and result in no loss
or gain while creating the appearance of liquidity and trading interest in Litecoin. Ultimately, the transactions resulted in wash
transactions that depicted a misleading picture of the Litecoin/bitcoin market.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">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. To the Trust&rsquo;s and Sponsor&rsquo;s actual
knowledge, no regulator has brought charges against Bitfinex in connection with such reports, which remain unverified, and the
sources of the reports remain anonymous. The Trust and Sponsor have no actual knowledge of the factual truth or falsity of such
reports.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">Fraudulent and manipulative
trading practices remain a risk at many cryptocurrency exchanges. To the extent they occur at constituent exchanges used to calculate
the MarketVector<SUP>TM</SUP> Bitcoin Benchmark Rate, they could cause the MarketVector<SUP>TM</SUP> Bitcoin Benchmark Rate to
report inaccurate prices of bitcoin, causing the NAV of the Trust to be calculated incorrectly and thereby causing Shareholders
to suffer losses.</P>

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    <!-- Field: /Page -->



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>The Marketvector<SUP>tm</SUP> Bitcoin
Benchmark Rate Price Being Used To Determine The Net Asset Value 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 Net Asset
Value Reported In The Trust&rsquo;s Periodic Financial Statements May Differ, In Some Cases Significantly, From The Trust&rsquo;s
Net Asset Value Determined Using The Marketvector<SUP>tm</SUP> Bitcoin Benchmark Rate Pricing.</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"> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">The Trust will determine
the net asset value of the Trust on each Business Day based on the value of bitcoin as reflected by the MarketVector<SUP>TM</SUP>
Bitcoin Benchmark Rate. The methodology used to calculate the MarketVector<SUP>TM</SUP> Bitcoin Benchmark Rate to value bitcoin
in determining the net asset value of the Trust may not be deemed consistent with GAAP. To the extent the methodology used to calculate
the MarketVector<SUP>TM </SUP>Bitcoin Benchmark Rate is deemed inconsistent with GAAP, the Trust will utilize a GAAP-consistent
pricing source for purposes of the Trust&rsquo;s periodic financial statements. Creation and redemption of Creation Baskets, the
Sponsor&rsquo;s management fee and other expenses borne by the Trust will be determined using the Trust&rsquo;s net asset value
determined daily based on the MarketVector<SUP>TM</SUP> Bitcoin Benchmark Rate. Such net asset value of the Trust determined using
the MarketVector<SUP>TM </SUP>Bitcoin Benchmark Rate may differ, in some cases significantly, from the net asset value reported
in the Trust&rsquo;s periodic financial statements.</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>The Sponsor Can Remove The Marketvector<SUP>tm</SUP>
Bitcoin Benchmark Rate And Use A Different Pricing Or Valuation Methodology Instead.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">Under the Trust Agreement,
the Sponsor has the exclusive authority to select, remove, change, or replace the pricing or valuation methodology or policies
used to value the Trust&rsquo;s assets and determine NAV and NAV per Share, in its sole discretion. The Sponsor has the right to
change the pricing source used to determine NAV and NAV per Share from the MarketVector<SUP>TM</SUP> Bitcoin Benchmark Rate to
a different source or index.</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Intellectual Property Rights Claims
May Adversely Affect The Trust And The Value Of The Shares.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">The Sponsor is not aware
of any intellectual property rights claims that may prevent the Trust from operating and holding bitcoin. However, third parties
may assert intellectual property rights claims relating to the operation of the Trust and the mechanics instituted for the investment
in, holding of and transfer of bitcoin. Regardless of the merit of an intellectual property or other legal action, any legal expenses
to defend or payments to settle such claims would be extraordinary expenses that would be borne by the Trust through the sale or
transfer of its bitcoin. Additionally, a meritorious intellectual property rights claim could prevent the Trust from operating
and force the Sponsor to terminate the Trust and liquidate its bitcoin. As a result, an intellectual property rights claim against
the Trust 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"> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Risk Associated with Investing in the
Trust</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><I>The Value Of The Shares May Be Influenced
By A Variety Of Factors Unrelated To The Value Of Bitcoin.</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: 36pt">The value of the Shares
may be influenced by a variety of factors unrelated to the price of bitcoin and the bitcoin exchanges included in the MarketVector<SUP>TM</SUP>
Bitcoin Benchmark Rate that may have an adverse effect on the price of the Shares. These factors include the following factors:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
    <TD STYLE="width: 36pt">&nbsp;</TD>
<TD STYLE="width: 36pt; text-align: left; vertical-align: top"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">Unanticipated problems or issues with respect to the mechanics of the Trust&rsquo;s
operations and the trading of the Shares may arise, in particular due to the fact that the mechanisms and procedures governing
the creation and offering of the Shares and storage of bitcoin have been developed specifically for this product;</TD>
</TR>
<TR STYLE="vertical-align: top; text-align: justify">
    <TD>&nbsp;</TD>
<TD STYLE="text-align: left; vertical-align: top">&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; text-align: justify">
    <TD>&nbsp;</TD>
<TD STYLE="width: 15pt; text-align: left; vertical-align: top"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">The Trust could experience difficulties in operating and maintaining its technical
infrastructure, including in connection with expansions or updates to such infrastructure, which are likely to be complex and
could lead to unanticipated delays, unforeseen expenses and security vulnerabilities;</TD>
</TR>
<TR STYLE="vertical-align: top; text-align: justify">
    <TD>&nbsp;</TD>
<TD STYLE="text-align: left; vertical-align: top">&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; text-align: justify">
    <TD>&nbsp;</TD>
<TD STYLE="text-align: left; vertical-align: top"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">The Trust could experience unforeseen issues relating to the performance and effectiveness
of the security procedures used to protect the Trust&rsquo;s account with the Bitcoin Custodian, or 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; or</TD>
</TR>
<TR STYLE="vertical-align: top; text-align: justify">
    <TD>&nbsp;</TD>
<TD STYLE="text-align: left; vertical-align: top">&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; text-align: justify">
    <TD>&nbsp;</TD>
<TD STYLE="text-align: left; vertical-align: top"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">service providers may default on or fail to perform their obligations or deliver services
under their contractual agreements with the Trust, or decide to terminate their relationships with the Trust, for a variety of
reasons, which could affect the Trust&rsquo;s ability to operate.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">Any of these factors
could affect the value of the Shares, either directly or indirectly through their effect on the Trust&rsquo;s assets.</P>

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    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>The Trust Is Subject To Market Risk.</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: 36pt">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-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>The NAV May Not Always Correspond
To The Market Price Of Bitcoin And, As A Result, Creation Baskets May Be Created Or Redeemed At A Value That Is Different From
The Market Price 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: 36pt">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 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-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">An Authorized Participant
may be able to create or redeem a Creation Basket at a discount or a premium to the public trading price per Share, 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-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">Shareholders also should
note that the size of the Trust in terms of total bitcoin held may change substantially over time and as Creation Baskets are created
and redeemed.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Authorized Participants&rsquo; Buying
And Selling Activity Associated With The Creation And Redemption Of Creation Baskets May Adversely Affect An Investment In The
Shares Of The Trust.</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: 36pt">Authorized Participants&rsquo;
purchase of bitcoin in connection with Creation Basket 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 Creation Baskets are created. The market
price of bitcoin may therefore decline immediately after Creation Baskets are created.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">Selling activity associated
with sales of bitcoin by Authorized Participants in connection with 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: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">In addition to the effect
that purchases and sales of bitcoin by Authorized Participants may have on the price of bitcoin, sales and purchases of bitcoin
by similar investment vehicles (if developed) could 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: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>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.</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: 36pt">Authorized Participants
and market makers will generally want to hedge their exposure in connection with Creation 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, etc.), such conditions may make it difficult
to create or redeem Creation Baskets or cause them to not create or redeem Creation 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 the Trust
and the spread at which the Trust trades on the open market. The market for exchange-traded Bitcoin Futures has 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 for the ability to hedge against the price of bitcoin with exchange-traded
Bitcoin Futures.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>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 Creation Baskets Encounters Difficulties, Which May Adversely Affect An Investment In The Shares.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">If the processes of
creation and redemption of the Shares encounter any unanticipated difficulties, including, but not limited to, the Trust&rsquo;s
inability in the future to obtain regulatory approvals for the offer and sale of additional Shares after the present offering is
completed, potential market participants who would otherwise be willing to purchase or redeem Creation 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</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> take the risk that, as a result of those difficulties, they may not be able to realize the profit they expect. If this
is the case, the liquidity of Shares may decline and the price of the Shares may fluctuate independently of the price of bitcoin
and may fall.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>The Trust Is Subject To Risks Due
To Its Concentration Of Investments In A Single Asset Class.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">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: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">An investment in the
Trust may be deemed speculative and is not intended as a complete investment program. An investment in Shares should be considered
only by persons financially able to maintain their investment and who can bear the risk of total loss associated with an investment
in the Trust. Investors should review closely the objective and strategy of the Trust and redemption rights, as discussed herein,
and familiarize themselves with the risks associated with an investment in the Trust.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>The Lack Of Active Trading Markets
For The Shares Of The Trust May Result In Losses On Shareholders&rsquo; Investments At The Time Of Disposition Of 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: 36pt">Although Shares of the
Trust are expected to be publicly listed and traded on an exchange, there can be no guarantee that an active trading market for
the Trust will develop or be maintained. If Shareholders need to sell their Shares at a time when no active market for them exists,
the price Shareholders receive for their Shares, assuming that Shareholders are able to sell them, likely will be lower than the
price that Shareholders 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: 36pt">&nbsp;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Possible Illiquid Markets May Exacerbate
Losses, Increase The Variability Between The Trust&rsquo;s NAV And Its Market Price Or Affect the Trust&rsquo;s Ability to Meet
Cash Creation and Redemption Orders.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">Bitcoin is a relatively
new asset with a limited trading history. Therefore, the markets for bitcoin may be less liquid and more volatile than other markets
for more established products. 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: 36pt">&nbsp;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">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, or making it more difficult for Authorized Participants to acquire or liquidate bitcoin as part
of the creation and/or redemption of Shares of the Trust. To the extent that the Trust conducts creation and redemption transactions
for cash, such illiquidity may affect the Trust&rsquo;s ability to meet such cash creation and redemption orders. 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: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>The Trust Is An &ldquo;Emerging Growth
Company&rdquo; And It Cannot Be Certain If The Reduced Disclosure Requirements Applicable To Emerging Growth Companies Will Make
The Shares Less Attractive To Investors.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">The Trust is an &ldquo;emerging
growth company&rdquo; as defined in the JOBS Act. For as long as the Trust continues to be an emerging growth company it may choose
to take advantage of certain exemptions from various reporting requirements applicable to other public companies but not to emerging
public companies, which include, among other things:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&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: 36pt"></TD><TD STYLE="width: 36pt"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">exemption from the auditor attestation requirements under Section 404(b) of the Sarbanes-Oxley
Act;</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: 36pt"></TD><TD STYLE="width: 36pt"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">reduced disclosure obligations regarding executive compensation in the Trust&rsquo;s periodic reports
and audited financial statements in this prospectus; exemptions from the requirements of holding advisory &ldquo;say-on-pay&rdquo;
votes on executive compensation and shareholder advisory votes on &ldquo;golden parachute&rdquo; compensation; and</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 72pt; text-align: justify; text-indent: -36pt">&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: 36pt"></TD><TD STYLE="width: 36pt"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">exemption from any rules requiring mandatory audit firm rotation and auditor discussion and analysis
and, unless otherwise determined by the SEC, any new audit rules adopted by the Public Company Accounting Oversight Board.</TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">The Trust could be an
emerging growth company until the last day of the fiscal year following the fifth anniversary after its initial public offering,
or until the earliest of (1) the last day of the fiscal year in which it has annual gross revenue of $1.235 billion or more, (2)
the date on which it has, during the previous three year period, issued more than $1 billion in non-convertible debt or (3) the
date on which it is deemed to be a large accelerated filer under the federal securities laws. The Trust will qualify as a large
accelerated</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">filer as of the first day of the first fiscal year after it has (A) more than $700 million in outstanding equity held
by nonaffiliates, (B) been public for at least 12 months and (C) filed at least one annual report on Form 10-K.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt">Under the JOBS Act, emerging growth companies
are also permitted to elect to delay adoption of new or revised accounting standards until companies that are not subject to periodic
reporting obligations are required to comply, if such accounting standards apply to non-reporting companies. However, the Trust
has chosen to opt out of this extended transition period for complying with new or revised accounting standards. Section 107 of
the JOBS Act provides that the 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; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">The Trust cannot predict
if investors will find an investment in the Trust less attractive if it relies on these exemptions.</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Several Factors May Affect The Trust&rsquo;s
Ability To Achieve Its Investment Objective On A Consistent Basis.</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: 36pt">There is no guarantee
that the Trust will meet its investment objective. Factors that may affect the Trust&rsquo;s ability to meet its investment objective
include, without limitation: (1) Authorized Participants&rsquo; ability and willingness to purchase and sell bitcoin in an efficient
manner to effectuate creation and redemption orders; (2) transaction fees associated with the Bitcoin network; (3) the bitcoin
market becoming illiquid or disrupted; (4) the Trust&rsquo;s 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
Authorized Participants to execute intended portfolio transactions; (7) accounting standards; and (8) the MarketVector<SUP>TM</SUP>
Bitcoin Benchmark Rate becoming disrupted or unavailable.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>The Amount Of Bitcoin Represented
By The Shares Will Decline Over Time.</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: 36pt">The amount of bitcoin
represented by the Shares will continue to be reduced during the life of the Trust due to the transfer of the Trust&rsquo;s bitcoin
to pay for the Sponsor Fee, and to pay for litigation expenses or other extraordinary expenses. 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.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">Each outstanding Share
represents a fractional, undivided interest in the bitcoin held by the Trust. The Trust does not generate any income and transfers
bitcoin to pay for the Sponsor Fee, and to pay for litigation expenses or other extraordinary expenses. 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 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 creation unit 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: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">Shareholders 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: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>The Development And Commercialization
Of The Trust Is Subject To Competitive Pressures.</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: 36pt">The Trust and the Sponsor
face competition with respect to the creation of competing products, including with respect to the potential creation of competing
exchange-traded bitcoin products. If the SEC were to approve many or all of the currently pending applications for such exchange-traded
bitcoin products, many or all of such products, including the Trust, could fail to acquire substantial assets, initially or at
all. Such competing products may become available for public exchange trading before the Trust and/or have a lower expense ratio
than the Trust, which could have a detrimental effect on the scale and sustainability of the Trust. 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. Accordingly, the Sponsor&rsquo;s competitors may commercialize
a product involving bitcoin more rapidly or effectively than the Sponsor is able to, which could adversely affect the Sponsor&rsquo;s
competitive position, the likelihood that the Trust will achieve initial market acceptance and the Sponsor&rsquo;s ability to generate
meaningful revenues from 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>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Security Threats To The Trust&rsquo;s
Account With The Bitcoin Custodian 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.</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: 36pt">Security breaches, computer
malware and computer hacking attacks have been a prevalent concern in relation to digital assets. The Sponsor believes that the
Trust&rsquo;s bitcoins held in the Trust&rsquo;s account with the Bitcoin Custodian will be an appealing target to</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">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, the Sponsor or the Bitcoin Custodian 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: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">The Sponsor has evaluated
the security procedures in place for safeguarding the Trust&rsquo;s bitcoins. Nevertheless, the security procedures cannot guarantee
the prevention of any loss due to a security breach, hack, 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
operations or 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.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt"><FONT>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, the Bitcoin Custodian, or otherwise, and, as a result, an unauthorized party may obtain access to
the Trust&rsquo;s account with the Bitcoin Custodian, the private keys (and therefore bitcoin) or other data of the Trust. Additionally,
outside parties may attempt to fraudulently induce employees of the Sponsor, the Bitcoin Custodian, 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 and the Bitcoin Custodian
may be unable to anticipate these techniques or implement adequate preventative measures. The Bitcoin Custodian is also dependent
on key service providers, including, without limitation, its data centers, and if these were to cease operation or be the subject
of operational problems or security threats, it could affect the Trust&rsquo;s custody account with the Bitcoin</FONT><FONT STYLE="font-size: 9.5pt">
</FONT><FONT STYLE="font-size: 10pt">Custodian.</FONT></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">An actual or perceived
breach of the Trust&rsquo;s account with the Bitcoin Custodian 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"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>If The Custody Agreement Is Terminated
Or The Bitcoin Custodian Fails To Provide Services As Required, The Sponsor May Need To Find And Appoint A Replacement Custodian
Quickly, 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.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">The Trust is dependent
on the Bitcoin Custodian to operate. The Bitcoin Custodian performs essential functions in terms of safekeeping the Trust&rsquo;s
bitcoin and facilitates the transfer of bitcoin to the Trust by APs and from the Trust in connection with redemptions and to pay
the Sponsor&rsquo;s management fee and, to the extent applicable, other Trust expenses, and in extraordinary circumstances, to
liquidate the Trust. If the Bitcoin Custodian fails to perform the functions they perform for the Trust, the Trust may be unable
to operate or create or redeem Creation 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: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">The Sponsor could decide
to replace the Bitcoin Custodian as the custodian of the Trust&rsquo;s bitcoins, pursuant to the Custody Agreement. Similarly,
the Bitcoin Custodian under the Custody Agreement may terminate the Custody Agreement upon providing the applicable notice to the
Trust for any reason, or immediately under certain circumstances. Transferring maintenance responsibilities of the Trust&rsquo;s
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. Also, if the Bitcoin Custodian becomes insolvent, suffers business failure, ceases business operations, defaults
on or fails to perform its obligations under the Custody Agreement with the Trust, or abruptly discontinues the services it provides
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; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">On October 19, 2023,
Gemini Trust Company, LLC (&ldquo;Gemini&rdquo;), the Bitcoin Custodian for the Trust, was named as a defendant in a complaint
filed by the New York Attorney General against Gemini and other entities, including Genesis and its affiliates (collectively, the
&ldquo;Genesis Entities&rdquo;) in a New York state court, alleging, inter alia, that Gemini has violated New York&rsquo;s Martin
Act by soliciting money from the public, including persons in New York, with false assurances that an investment program called
Gemini Earn, pursuant to which customers of Gemini could deposit money in Earn accounts at Gemini that would then be loaned to
the Genesis Entities and repaid with interest by them, was a highly liquid investment and that Genesis was a creditworthy borrower
based on the Bitcoin Custodian&rsquo;s ongoing risk monitoring.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">Gemini, as the Bitcoin
Custodian, could be required, as a result of a judicial determination, or could choose, to restrict or curtail the services it
offers (whether in or from New York State or generally), or its financial condition and ability to provide services to the Trust
could be affected as a result of the foregoing litigation. If the Bitcoin Custodian were to be required or choose, as a result
of litigation or regulatory action, to restrict, curtail, or terminate the services it offers, it could negatively affect the Trust&rsquo;s
ability to operate,</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> hold bitcoin, or process creations or redemptions of Baskets, which could force the Trust to engage an alternate
bitcoin custodian or to liquidate and 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: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">The Sponsor may not
be able to find a party willing to serve as the custodian under the same terms as the current Custody Agreement. To the extent
that Sponsor is not able to find a suitable party willing to serve as the custodian, 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 a modified Custody Agreement that is less favorable for the Trust or Sponsor, 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; text-indent: 36pt">&nbsp;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>The Lack Of Full Insurance And Shareholders&rsquo;
Limited Rights Of Legal Recourse Against The Trust, Trustee, Sponsor, Administrator, Cash Custodian And Bitcoin Custodian Expose
The Trust And Its Shareholders To The Risk Of Loss Of The Trust&rsquo;s Bitcoins For Which No Person Or Entity Is Liable.</I></B></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">The Trust is not a banking
institution or otherwise a member of the Federal Deposit Insurance Corporation (&ldquo;FDIC&rdquo;) or Securities Investor Protection
Corporation (&ldquo;SIPC&rdquo;) and, therefore, neither, Shareholders cannot be assured that the Bitcoin Custodian will maintain
adequate insurance, that such coverage will cover losses with respect to the Trust&rsquo;s bitcoins, or that sufficient insurance
proceeds will be available to cover the Trust&rsquo;s losses in full. The Bitcoin Custodian&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 Bitcoin Custodian, 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 the Bitcoin Custodian may be substantially lower
than the assets of the Trust, or the amount of claims against the Bitcoin Custodian. 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: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">Furthermore, under the
Custodian Agreement, the Bitcoin Custodian&rsquo;s liability is limited in various ways, including that the Bitcoin Custodian cannot
be held responsible for any failure or delay to act by the Bitcoin Custodian, its service providers, or its banks that is within
the time limits permitted by the Custodian Agreement, or that is caused by the Trust&rsquo;s negligence or is required to comply
with applicable laws and regulations. The Bitcoin Custodian is not liable for any System Failure or Downtime (both as defined in
the Custodian Agreement), which prevents the Bitcoin Custodian from fulfilling its obligations under the Custodian Agreement, provided
that Bitcoin Custodian took reasonable care and used commercially reasonable efforts to prevent or limit such System Failures or
Downtime and otherwise complied with the Custodian Agreement. The Custodian Agreement provides that &ldquo;Downtime&rdquo; means
scheduled maintenance and a &ldquo;System Failure&rdquo; shall mean a failure of any computer hardware, software, computer systems,
or telecommunications lines or devices used by the Bitcoin Custodian, or interruption, loss, or malfunction of utility, data center,
Internet or network provider services used by the Bitcoin Custodian; provided, however, that a cybersecurity attack, data breach,
hack, or other intrusion, or unauthorized disclosure by a third party, the Bitcoin Custodian, a service provider to the Bitcoin
Custodian, or an agent or subcontractor of the Bitcoin Custodian, shall not be deemed a System Failure, to the extent such events
or any losses arising therefrom are due to the Bitcoin Custodian&rsquo;s failure to comply with its obligations under the Custodian
Agreement. The Bitcoin Custodian cannot be held responsible for any circumstances beyond the Bitcoin Custodian&rsquo;s reasonable
control, provided the Bitcoin Custodian took reasonable care and used commercially reasonable efforts in executing its responsibilities
to the Trust pursuant to the Custodian Agreement, which includes exercising the degree of care, diligence and skill that a prudent
and competent professional provider of services similar to the custodial services would exercise in the circumstances, or such
higher care where required by law or the Custodian Agreement (collectively, the &ldquo;Standard of Care&rdquo;). The Bitcoin Custodian
makes no guarantees regarding the Bitcoin network&rsquo;s security, functionality, or availability, and will not be liable for
or in connection with any acts, decisions, or omissions made by developers of the Bitcoin network. The Bitcoin Custodian is not
liable for any losses or claims arising out of actions that are in the Trust&rsquo;s control and related to the Trust&rsquo;s use
of the Bitcoin Custodian&rsquo;s online platform, including but not limited to, the Trust&rsquo;s failure to follow security protocols,
the Bitcoin Custodian&rsquo;s platform controls, improper instructions, failure to secure the Trust&rsquo;s credentials from third
parties, or anything else in the Trust&rsquo;s control and is also not liable for any amount greater than the value of the assets
on deposit in Trust&rsquo;s account at the Bitcoin Custodian at the time of, and directly relating to, the events giving rise to
the liability occurred, the value of which shall be determined in accordance with the Chicago Mercantile Exchange Bitcoin Reference
Rate or any successor thereto. The Bitcoin Custodian is not liable to the Trust (whether under contract, tort (including negligence)
or otherwise) for any indirect, incidental, special, punitive or consequential losses suffered or incurred by the Trust (whether
or not any such losses were foreseeable). The Bitcoin Custodian is not liable to the Trust or anyone else for any loss or injury
resulting directly or indirectly from any damage or interruptions caused by any computer viruses, spyware, scamware, trojan horses,
worms, or other malware that may affect the Trust&rsquo;s computer or other equipment, provided such malware did not originate
from the Bitcoin Custodian or its agents. The Custody Agreement&rsquo;s &ldquo;Force Majeure&rdquo; provision provides that 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 including, but not limited to,
any act of God, nuclear or natural disaster, epidemic, action or inaction of civil or military authorities, act of war, terrorism,
sabotage, civil disturbance, strike or other labor dispute, accident, or state of emergency; provided, however, that for the avoidance
of doubt, the Custody Agreement&rsquo;s Force Majeure provision shall not apply in respect of System Failures or Downtime,</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">which are
subject to other respective provisions of the Custody Agreement. The occurrence of an event described in the Force Majeure provision
shall not affect the validity and enforceability of any remaining provisions of the Custody Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">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. Furthermore, the insurance maintained by the Bitcoin Custodian may be insufficient to cover its liabilities
to the Trust. Both the Trust and 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; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">Subject to the Force
Majeure provision and as limited by the limitations of liability in the Custody Agreement, the Bitcoin Custodian shall be liable
to the Trust for the Loss (defined below) of any of the Trust&rsquo;s bitcoin or fiat currency to the extent that such Loss was caused
by the negligence, fraud, willful or reckless misconduct of the Bitcoin Custodian or breach by the Bitcoin Custodian of its Standard
of Care. The Custody Agreement provides that &ldquo;Loss&rdquo; means if, at any time the Trust&rsquo;s Bitcoin Account or Fiat Account,
as applicable, does not hold the bitcoin or fiat currency that had been (1) received by Bitcoin Custodian in connection with the
Trust&rsquo;s Bitcoin Account or Fiat Account pursuant to the Custody Agreement, or (2) duly sent to the Bitcoin Custodian by the Trust
or Authorized Participants in connection with the Trust&rsquo;s Bitcoin Account pursuant to the Custody Agreement but not received because
of a failure caused by the Bitcoin Custodian. The Custody Agreement provides that &ldquo;Loss&rdquo; shall include situations where
the Bitcoin Custodian fails to execute a valid withdrawal request, bitcoin are withdrawn from the Trust&rsquo;s Bitcoin Account other
than pursuant to a withdrawal request, or the Trust is not able to timely withdraw bitcoin from the Bitcoin Account pursuant to
a withdrawal request, in each case due to a failure caused by the Bitcoin Custodian; provided, however, that the Bitcoin Custodian&rsquo;s
failure to permit timely withdrawals because it has determined that it cannot do so due to the requirements of applicable laws
and regulations or because of the operation of its fraud detection controls shall not be considered a Loss, provided the Bitcoin
Custodian is acting reasonably and in good faith. The Custody Agreement provides that should a Loss of the Trust&rsquo;s bitcoin or fiat
currency due to the negligence, fraud, willful or reckless misconduct of the Bitcoin Custodian or a breach by the Bitcoin Custodian
of its Standard of Care occur, the Bitcoin Custodian will, as soon as practicable, return to the Trust a quantity of the same digital
asset that is equal to the quantity of digital assets involved in the Loss, or return to the Trust a quantity of the same fiat
currency that is equal to the quantity of fiat currency involved in the Loss (if the Loss involved the Fiat Account). However,
the Trust does not control the Bitcoin Custodian and cannot guarantee that the Bitcoin Custodian will perform its obligations to
the Trust under the Custody Agreement, in a timely manner or at all. The Custody Agreement provides that the Bitcoin Custodian
does not own or control the underlying software protocols of networks which govern the operation of digital assets (including the
Bitcoin Blockchain), (ii) the Bitcoin Custodian makes no guarantees regarding their security, functionality, or availability, and
(iii) in no event shall the Bitcoin Custodian be liable for or in connection with any acts, decisions, or omissions made by developers
or promoters of digital assets, including bitcoin. &nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">Moreover, in the event
of an insolvency or bankruptcy of the Bitcoin Custodian 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 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 Bitcoin Custodian, 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">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt">The Custody Agreement contains an agreement
by the parties to treat the bitcoin credited to the Trust&rsquo;s Vault Balance 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. It is possible that a court would not treat custodied digital assets as part of the
Bitcoin Custodian&rsquo;s 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: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">Under the Trust Agreement,
the Trustee and 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, absent gross negligence or bad faith 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 recourse of the Trust or the Shareholders
to the Trustee or the Sponsor, including in the event of a loss of bitcoin by the Bitcoin Custodian, is limited.</P>

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


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">The Shareholders&rsquo;
recourse against the Sponsor, the Trustee, 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. Consequently, a loss may be suffered
with respect to the Trust&rsquo;s bitcoin that is not covered by the Bitcoin Custodian&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: 36pt">&nbsp;</P>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Loss Of A Critical Banking Relationship
For, Or The Failure Of A Bank Used By, The Trust Could Adversely Impact The Trust&rsquo;s Ability To Create Or Redeem Creation
Baskets, Or Could Cause Losses To The Trust.</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: 36pt">The Cash Custodian and
Bitcoin Custodian, under the Clearing Agreement (as defined below), facilitate the creation and redemption of Creation Baskets
(in exchange for cash subscriptions by Authorized Participants, or in exchange for redemptions of Shares by Authorized Participants),
and other cash movements, including in connection with the purchase of bitcoin by the Trust to effectuate subscriptions for cash
and the selling of bitcoin by the Trust to effect redemptions for cash or pay the Sponsor Fee and, to the extent applicable, other
Trust expenses, and in extraordinary circumstances, to effect the liquidation of the Trust&rsquo;s bitcoin. The Trust relies on
the Cash Custodian and Bitcoin Custodian, in connection with the Trust&rsquo;s Fiat Account, to hold any cash related to the purchase
or sale of bitcoin. To the extent that the Trust faces difficulty establishing or maintaining banking relationships, the loss of
the Trust&rsquo;s banking partners, including the Cash Custodian or the banks at which the Bitcoin Custodian, in connection with
the Trust&rsquo;s Fiat Account, maintains customer cash balances (including the cash balance of the Trust held in the Fiat Account),
or the imposition of operational restrictions by these banking partners and the inability for the Trust 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 Trust could be unable to establish accounts at new banking
partners or establish new banking relationships, or that the banks with which the Trust 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: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">The Trust could also
suffer losses in the event that a bank or money market fund in which the Trust holds cash, including the cash associated with the
Trust&rsquo;s account at the Cash Custodian or the Trust&rsquo;s Fiat Account with the Bitcoin Custodian (which is held at the
Bitcoin Custodian&rsquo;s Banks (as defined below) or Money Market Funds (as defined below) for the benefit of its customers, including
the Trust), 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; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">If the Cash Custodian,
the Bitcoin Custodian, or the Banks or Money Market Funds at which the Bitcoin Custodian holds customer cash balances, including
those associated with the Trust&rsquo;s Fiat Account, were to experience financial distress or its financial condition is otherwise affected,
the Cash Custodian&rsquo;s or Bitcoin Custodian&rsquo;s ability to provide services to the Trust could be affected. Moreover, the future
failure of a bank or money market fund at which the Trust (including through the Fiat Account) maintains cash, 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 Cash Custodian is subject or other potential protections. In addition, the Trust may maintain cash balances with the
Cash Custodian in the Fiat Account with the that are not insured or are in excess of the FDIC&rsquo;s insurance limits, or which
are maintained by the Cash Custodian or Bitcoin Custodian at money market funds (in the case of the Fiat Account) 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"> </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><I>The Sponsor Is Solely Responsible
For Determining The Value Of The Bitcoin Holdings And Bitcoin Holdings Per Share, And Any Errors, Discontinuance Or Changes In
Such Valuation Calculations May Have An Adverse Effect On The Value 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"> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">The Sponsor has the
exclusive authority to determine the Trust&rsquo;s NAV and the Trust&rsquo;s NAV per share, which it has delegated to the Administrator.
The Administrator will determine the Trust&rsquo;s bitcoin holdings and bitcoin holdings per Share on a daily basis as soon as
practicable after 4:00 p.m. Eastern time on each business day. The Administrator&rsquo;s determination is made utilizing data from
the operations of the Trust and the MarketVector<SUP>TM</SUP> Bitcoin Benchmark Rate, calculated at 4:00 p.m. Eastern time on such
day. To the</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"> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">extent that the bitcoin holdings or bitcoin holdings per Share are incorrectly calculated, the Sponsor will not be
liable (absent gross negligence or wilful misconduct) 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: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">If the Sponsor determines
in good faith that the MarketVector<SUP>TM</SUP> Bitcoin Benchmark Rate does not reflect an accurate bitcoin price, then the Sponsor
will instruct the Trust Administrator to employ an alternative method to determine the fair value of the Trust&rsquo;s assets.
There are no predefined criteria to make a good faith assessment as to which of the rules the Sponsor will apply and the Sponsor
may make this determination in its sole discretion. The Administrator may calculate the NAV in a manner that ultimately inaccurately
reflects the price of bitcoin. To the extent that the Trust&rsquo;s NAV and the Trust&rsquo;s NAV per share, the MarketVector<SUP>TM
</SUP>Bitcoin Benchmark Rate, or the Administrator&rsquo;s or the Sponsor&rsquo;s other valuation methodology are incorrectly calculated,
neither the Sponsor, the Administrator nor the Trustee may be liable for any error and such misreporting of valuation data could
adversely affect the value of the Shares and investors could suffer a substantial loss on their investment in the Trust. Moreover,
the terms of the Trust Agreement do not prohibit the Sponsor from changing the index used to calculate NAV or other valuation method
used to calculate the net asset value of the Trust. Any such change in the index or other valuation method could affect the value
of the Shares and investors could suffer a substantial loss on their investment in the Trust.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">To the extent the methodology
used to calculate the MarketVector<SUP>TM</SUP> Bitcoin Benchmark Rate is deemed not to be consistent with GAAP, the Trust&rsquo;s
periodic financial statements may not utilize the Trust&rsquo;s NAV or the Trust&rsquo;s NAV per share. For purposes of the Trust&rsquo;s
financial statements, the Trust will utilize a pricing source that is consistent with GAAP, as of the 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. To the extent that such valuation sources and policies used to prepare the Trust&rsquo;s financial statements result
in an inaccurate price, the value of the Shares could be adversely affected and investors could suffer a substantial loss on their
investment in the Trust. Moreover, the terms of the Trust Agreement do not prohibit the Sponsor from changing the valuation method
used to calculate the net asset value to be reported in the Trust&rsquo;s financial statements. Any such change in such valuation
method could affect the value of the Shares and investors could suffer a substantial loss on their investment in the Trust.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>The Value Of The Shares Will Be Adversely
Affected If The Trust Is Required To Indemnify The Sponsor, The Trustee, The Transfer Agent Or The Custodian Under The Trust Documents.</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"> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">Under the Trust Documents,
each of the Sponsor, the Trustee, the Transfer Agent, the Bitcoin Custodian and the Cash Custodian has a right to be indemnified
by the Trust for certain liabilities or expenses that it incurs without gross negligence, bad faith or wilful misconduct on its
part. Therefore, the Sponsor, Trustee, Transfer Agent or the Custodian 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 bitcoin holdings of 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"> </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>Regulatory Risk</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"><B><I>Digital Asset Markets In The U.S.
Exist In A State Of Regulatory Uncertainty, And Adverse Legislative Or Regulatory Developments Could Significantly Harm The Value
Of Bitcoin Or The Shares, Such As By Banning, Restricting Or Imposing Onerous Conditions Or Prohibitions On The Use Of Bitcoins,
Mining Activity, Digital Wallets, The Provision Of Services Related To Trading And Custodying Bitcoin, The Operation Of The Bitcoin
Network, Or The Digital Asset Markets Generally.</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: 36pt">There is a lack of consensus
regarding the regulation of digital assets, including bitcoin, and their markets. As a result of the growth in the size of the
digital asset market, as well as the 2022 Events, the U.S. Congress and a number of U.S. federal and state agencies (including
FinCEN, SEC, OCC, CFTC, FINRA, the Consumer Financial Protection Bureau (&ldquo;CFPB&rdquo;), the Department of Justice, the Department
of Homeland Security, the Federal Bureau of Investigation, the IRS, state financial institution regulators, and others) have been
examining the operations of digital asset networks, digital asset users and the digital asset markets. Many of these state and
federal agencies have brought enforcement actions or issued consumer advisories regarding the risks posed by digital assets to
investors. Ongoing and future regulatory actions with respect to digital assets generally or bitcoin in particular 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.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">The 2022 Events, including
among others the bankruptcy filings of FTX and its subsidiaries, Three Arrows Capital, Celsius Network, Voyager Digital, Genesis,
BlockFi and others, and other developments in the digital asset markets, have resulted in calls for heightened scrutiny and regulation
of the digital asset industry, with a specific focus on intermediaries such as digital asset exchanges, platforms, and custodians.
Federal and state legislatures and regulatory agencies may introduce and enact new laws and regulations to regulate crypto asset
intermediaries, such as digital asset exchanges and custodians. The March 2023 collapses of Silicon Valley Bank, Silvergate Bank,
and Signature Bank, which in some cases provided services to the digital assets industry, may amplify and/or accelerate these trends.
On January 3, 2023, the federal banking agencies issued a joint statement on crypto-asset risks to banking organizations following
events which exposed vulnerabilities in the crypto-asset sector, including the risk of fraud and scams, legal uncertainties, significant
volatility, and contagion risk. Although banking organizations are not prohibited from crypto-asset related activities, the </P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">agencies
have expressed significant safety and soundness concerns with business models that are concentrated in crypto-asset related activities
or have concentrated exposures to the crypto-asset sector.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">US federal and state
regulators, as well as the White House, have issued reports and releases concerning crypto assets, including bitcoin and crypto
asset markets. Further, in 2023 the House of Representatives formed two new subcommittees: the Digital Assets, Financial Technology
and Inclusion Subcommittee and the Commodity Markets, Digital Assets, and Rural Development Subcommittee, each of which were formed
in part to analyze issues concerning crypto assets and demonstrate a legislative intent to develop and consider the adoption of
federal legislation designed to address the perceived need for regulation of and concerns surrounding the crypto industry. 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. A divided Congress makes any prediction difficult. We cannot predict how these and other related events will
affect us or the crypto asset 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: 36pt">In August 2021, the
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. The chair expressed
a need for the SEC to have additional authorities to prevent transactions, products, and platforms from &ldquo;falling between
regulatory cracks,&rdquo; as well as for more resources to protect investors in &ldquo;this growing and volatile sector.&rdquo;
The chair called for federal legislation centering on digital asset trading, lending, and decentralized finance platforms, seeking
&ldquo;additional plenary authority&rdquo; to write rules for digital asset trading and lending. It is not possible to predict
whether 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 asset 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. The consequences
of increased federal regulation of digital assets and digital asset activities could have a material adverse effect on the Trust
and the Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">FinCEN requires any
administrator or exchanger of convertible digital assets to register with FinCEN as a money transmitter and comply with the anti-money
laundering regulations applicable to money transmitters. Entities which fail to comply with such regulations are subject to fines,
may be required to cease operations, and could have potential criminal liability. For example, in 2015, FinCEN assessed a $700,000
fine against a sponsor of a digital asset for violating several requirements of the Bank Secrecy Act by acting as an MSB and selling
the digital asset without registering with FinCEN, and by failing to implement and maintain an adequate anti-money laundering program.
In 2017, FinCEN assessed a $110 million fine against BTC-e, a now defunct digital asset exchange, for similar violations. The requirement
that exchangers that do business in the U.S. register with FinCEN and comply with anti-money laundering regulations may increase
the cost of buying and selling bitcoin and therefore may adversely affect the price of bitcoin and an investment in the Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">The Office of Foreign
Assets Control (&ldquo;OFAC&rdquo;) of the U.S. Department of the Treasury (the &ldquo;U.S. Treasury Department&rdquo;) has added
digital currency addresses, including on the Bitcoin Blockchain, 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 their price.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">In February 2020, then-U.S.
Treasury Secretary Steven Mnuchin stated that digital assets were a &ldquo;crucial area&rdquo; on which the U.S. Treasury Department
has spent significant time. Secretary Mnuchin announced that the U.S. Treasury Department is preparing significant new regulations
governing digital asset activities to address concerns regarding the potential use for facilitating money laundering and other
illicit activities. 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 January 2021, U.S. Treasury Secretary
nominee Janet Yellen stated her belief that regulators should &ldquo;look closely at how to encourage the use of digital assets
for legitimate activities while curtailing their use for malign and illegal activities.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">Under regulations from
the New York State Department of Financial Services (&ldquo;NYDFS&rdquo;), businesses involved in digital asset business activity
for third parties in or involving New York, excluding merchants and consumers, 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 certain digital asset business activities. 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.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">The inconsistency in
applying money transmitting licensure requirements to certain businesses may make it more difficult for these businesses to provide
services, 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. It is still unclear, however, how many states, if any, will 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: 36pt">Law enforcement agencies
have often relied on the transparency of blockchains to facilitate investigations. However, certain privacy-enhancing features
have been, or are expected to be, introduced to a number of digital asset networks. If the Bitcoin network were to adopt any of
these features, these features may provide law enforcement agencies with less visibility into transaction-level data.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Shareholders Do Not Have The Protections
Associated With Ownership Of Shares In An Investment Company Registered Under The 1940 Act Or The Protections Afforded By The Commodity
Exchange Act.</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: 36pt">The 1940 Act is designed
to protect investors by preventing insiders from managing investment companies to their benefit and to the detriment of public
investors, such as: the issuance of securities having inequitable or discriminatory provisions; the management of investment companies
by irresponsible persons; the use of unsound or misleading methods of computing earnings and asset value; changes in the character
of investment companies without the consent of investors; and investment companies from engaging in excessive leveraging. To accomplish
these ends, the 1940 Act requires the safekeeping and proper valuation of fund assets, restricts greatly transactions with affiliates,
limits leveraging, and imposes governance requirements as a check on fund management.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">The Trust is not registered
as an investment company under the 1940 Act, and the Sponsor believes that the Trust is not 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: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">The Trust will not hold
or trade in commodity interests regulated by the CEA, 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: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Future Legal Or Regulatory Developments
May Negatively Affect The Value Of Bitcoin Or Require The Trust Or The Sponsor To Become Registered With The SEC Or CFTC, Which
May Cause The Trust To Liquidate.</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: 36pt">Current and future legislation,
SEC and CFTC rulemaking, and other regulatory developments may impact the manner in which bitcoin are treated for classification
and clearing purposes. In particular, although bitcoin is currently understood to be a commodity when transacted on a spot basis,
bitcoin itself in the future might be classified by the CFTC as a &ldquo;commodity interest&rdquo; under the CEA, subjecting all
transactions in bitcoin to full CFTC regulatory jurisdiction. Alternatively, in the future bitcoin might be classified by the SEC
as a &ldquo;security&rdquo; under U.S. federal securities laws. In the face of such developments, the required registrations and
compliance steps may result in extraordinary, nonrecurring expenses to the Trust. If the Sponsor decides to terminate the Trust
in response to the changed regulatory circumstances, the Trust may be dissolved or liquidated at a time that is disadvantageous
to Shareholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">The SEC has stated that
certain digital assets may be considered &ldquo;securities&rdquo; under the federal securities laws. The test for determining whether
a particular digital asset is a &ldquo;security&rdquo; is complex and the outcome is difficult to predict. If bitcoin is in the
future determined to be a &ldquo;security&rdquo; under federal or state securities laws by the SEC or any other agency, or in a
proceeding in a court of law or otherwise, it would likely have material adverse consequences for the value of bitcoin. For example,
it may become more difficult or impossible for bitcoin to be traded, cleared and custodied in the United States as compared to
other digital assets that are not considered to be securities, which could in turn negatively affect the liquidity and general
acceptance of bitcoin and cause users to migrate to other digital assets.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">To the extent that bitcoin
is determined to be a security, the Trust and the Sponsor may also be subject to additional regulatory requirements, including
under the 1940 Act, and the Sponsor may be required to register as an investment adviser under the Investment Advisers Act. If
the Sponsor determines not to comply with such additional regulatory and registration requirements, the Sponsor will terminate
the Trust. Any such termination could result in the liquidation of the Trust&rsquo;s bitcoin at a time that is disadvantageous
to Shareholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt">To the extent that bitcoin is deemed to fall
within the definition of a &ldquo;commodity interest&rdquo; under the CEA, the Trust and the Sponsor may be subject to additional
regulation under the CEA and CFTC regulations. These additional requirements may result in extraordinary, recurring and/or nonrecurring
expenses of the Trust, thereby materially and adversely impacting the Shares. If the </P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Sponsor and/or the Trust determines not to
comply with such additional regulatory and registration requirements, the Sponsor may terminate the Trust. Any such termination
could result in the liquidation of the Trust&rsquo;s bitcoin at a time that is disadvantageous to Shareholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">The SEC has 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 206(4)-2(d)(6) and expand the current custody rule in 406(4)-2
to cover all digital assets, including bitcoin, 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, including bitcoin. The Sponsor
is studying the impact that such amendments may have on the Trust and its arrangements with the Bitcoin Custodian. It is possible
that such amendments, if adopted, could prevent the Bitcoin Custodian from serving as service providers to the Trust, or require
potentially significant modifications to existing arrangements under the Custody Agreement, which could cause the Trust to bear
potentially significant increased costs. If the Sponsor is unable to make such modifications or appoint successor service providers
to fill the role that the Bitcoin Custodian currently plays, the Trust&rsquo;s operations (including in relation to creations and
redemptions of Creation Baskets and the holding of bitcoin) could be negatively affected, the Trust could dissolve (including at
a time that is potentially disadvantageous to Shareholders), and the value of the Shares or an investment in the Trust could be
affected.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">Further, the proposed
amendments could have a severe negative impact on the price of bitcoin and therefore the value of the Shares if enacted, by, among
other things, making it more difficult for investors to gain access to bitcoin, or causing certain holders of bitcoin to sell their
holdings.</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">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 Authorized Participant
to implement anti-money laundering programs, make certain reports to FinCEN and maintain 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: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">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 timely receive them. 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-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">Additionally, to the
extent the Authorized Participant, the Trust or the Sponsor is found to have operated without appropriate state or federal licenses
by any regulator or court, it may be subject to investigation, administrative or court proceedings, operating restrictions, and
civil or criminal monetary fines and penalties, all of which would harm the reputation of the Authorized Participant, the Trust
or the Sponsor, disrupt their operations, and have a material adverse effect on the price of the Shares.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Anonymity, Sanctions, And Illicit
Financing Risk. </I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">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, such as tumbling or mixing services, 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 lawsuits, or of having banking or other services cut off, and such digital asset could be removed
from digital asset exchanges. 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 or the Trustee
were to transact with a sanctioned entity, the Trust, the Sponsor or the Trustee 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: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">On October 18, 2023,
OFAC sanctioned a Gaza-based virtual currency exchange and its operator that provides money transfer and virtual currency exchange
services, including bitcoin, for having materially assisted, sponsored, or provided financial, material, or technological support
for, or goods or services to or in support of, Hamas. In addition to involvement in Hamas fundraising, the virtual currency exchange
has also been used to transfer funds, including bitcoin, by affiliates in other terrorist groups.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">On October 19, 2023,
FinCEN announced a Notice of Proposed Rule Making (NPRM) that identifies international virtual currency mixing (&ldquo;mixing&rdquo;)
as a class of transactions of primary money laundering concern. The NPRM highlights the risks posed by the extensive use of virtual
currency mixing services by a variety of illicit actors throughout the world and proposes a rule requiring covered financial institutions
to implement certain recordkeeping and reporting requirements on transactions that covered financial institutions know, suspect,
or have reason to suspect involve virtual currency mixing within or involving jurisdictions outside the United States to combat
its use by malicious actors including Hamas, Palestinian Islamic Jihad, and the Democratic People&rsquo;s Republic of Korea (DPRK).
Mixing entails the facilitation of transactions in virtual currency, which the NPRM states includes bitcoin, in a manner that obfuscates
the source, destination, or amount involved in one or more transactions. By obscuring the connection between the virtual currency
wallet addresses used to receive illicit virtual currency proceeds and the virtual currency wallet addresses from which illicit
virtual currency is transferred to virtual-currency-to-fiat-currency exchangers, other virtual currency users, or virtual currency
exchanges, the NPRM states that virtual currency mixing transactions can play a central role in facilitating the laundering of
virtual currency derived from a variety of illicit activity.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">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 or 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; text-indent: 36pt">&nbsp;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">The Sponsor and the
Trust have adopted and implemented policies and procedures that are designed to ensure that they do not violate applicable AML
and sanctions laws and regulations and to comply with any applicable KYC laws and regulations. The Sponsor and the Trust will only
interact with known third party service providers with respect to whom it has engaged in a due diligence process to ensure a thorough
KYC process, such as the Authorized Participants and the Bitcoin Custodian. Authorized Participants, as broker-dealers, and the
Bitcoin Custodian, as a limited purpose trust company subject to New York Banking Law, are subject to the U.S. Bank Secrecy Act
(as amended) (&ldquo;BSA&rdquo;) and U.S. economic sanctions laws.</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: 36pt">In addition, the Trust
will only accept in-kind creations and redemption requests from regulated Authorized Participants who themselves are subject to
applicable sanctions and anti-money laundering laws and have compliance programs that are designed to ensure compliance with those
laws. In addition, the Authorized Participants are contractually obligated that all bitcoin delivered in connection with creation
requests (whether delivered from an Authorized Participant or a Liquidity Provider retained by the Authorized Participant) will
be from lawful sources. The Trust will not hold any bitcoin except those that have been delivered by Authorized Participants (or
a Liquidity Provider directed by the Authorized Participant) in connection with redemption requests.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">The Bitcoin Custodian
has adopted and implemented an anti-money laundering and sanctions compliance program, which provides additional protections to
ensure that the Sponsor and the Trust do not transact with a sanctioned party. Notably, the Bitcoin Custodian performs Know-Your-Transaction
(&ldquo;KYT&rdquo;) screening using blockchain analytics to identify, detect, and mitigate the risk of</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">transacting with a sanctioned
or other unlawful actor. Pursuant to the Bitcoin Custodian&rsquo;s KYT program, any bitcoin that is delivered to the Trust&rsquo;s
custody account will undergo screening to ensure that the origins of that bitcoin are not illicit.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt"><FONT STYLE="font-size: 10pt">There
is no guarantee that such procedures will always be effective. If the Authorized Participants</FONT><FONT STYLE="font-size: 10pt">,
Market Makers</FONT><FONT STYLE="font-size: 10pt"> or Liquidity Providers have inadequate policies, procedures and controls for
complying with applicable anti-money laundering and applicable sanctions laws or the Trust&rsquo;s diligence is ineffective, violations
of such laws could result, which could result in regulatory liability for the Trust, the Sponsor, the Trustee or their affiliates
under such laws, including governmental fines, penalties, and other punishments, as well as potential liability to or cessation
of services by the Bitcoin Custodian. Any of the foregoing could result in losses to the Shareholders or negatively affect the
Trust&rsquo;s ability to operate.</FONT></P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Trading On Bitcoin Exchanges Outside
The United States Is Not Subject To U.S. Regulation, And May Be Less Reliable Than U.S. Exchanges.</I></B></P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Barring cash creations
and redemptions, payment of certain expenses, a liquidation of the Trust or extraordinary circumstances (including but not limited
to, non-recurring expenses and costs of services performed by the Sponsor or a service provider on behalf of the Trust to protect
the Trust or the interests of Shareholders, such as in connection with any fork of the Bitcoin blockchain, any indemnification
of 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 Trust does not purchase
or sell bitcoin. In the event of a fork, however, the Trust will distribute the forked cryptoasset and return proceeds to the Sponsor,
as agent for the Shareholders, and the Sponsor will sell the forked cryptoasset and distribute the proceeds to Shareholders. Similarly,
in the event of a forced liquidation, the Trust may be required to sell bitcoin as well.</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">To the extent any of
the Trust&rsquo;s trading is conducted on bitcoin exchanges outside the U.S., trading on such exchanges is not regulated by any
U.S. governmental agency and may involve certain risks not applicable to trading on U.S. exchanges. Certain foreign markets may
be more susceptible to disruption than U.S. exchanges. 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: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Regulatory Changes Or Actions In
Foreign Jurisdictions May Affect The Value Of The Shares Or Restrict The Use Of Bitcoin, Mining Activity Or The Operation Of Their
Networks Or The Global Bitcoin Markets In A Manner That Adversely Affects The Value Of The Shares.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">Various foreign jurisdictions
have, and may continue to adopt laws, regulations or directives that affect digital asset networks (including the Bitcoin network),
the digital asset markets (including the bitcoin market), and their users, particularly digital asset exchanges and service providers
that fall within such jurisdictions&rsquo; regulatory scope. For example, if China or other foreign jurisdictions were to ban or
otherwise restrict manufacturers&rsquo; ability to produce or sell semiconductors or hard drives in connection with bitcoin mining,
it would have a material adverse effect on digital asset networks (including the Bitcoin network), the digital asset market, and
as a result, impact the value of the Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">A number of foreign
jurisdictions have recently taken regulatory action aimed at digital asset activities. China has made transacting in cryptocurrencies
illegal for Chinese citizens in mainland China, and additional restrictions may follow. Both China and South Korea have banned
initial coin offerings entirely and regulators in other jurisdictions, including Canada, Singapore and Hong Kong, have opined that
initial coin offerings may constitute securities offerings subject to local securities regulations. In May 2021, the Chinese government
announced renewed efforts to restrict cryptocurrency trading and mining activities. Regulators in the Inner Mongolia and other
regions of China have proposed regulations that would create penalties for companies engaged in cryptocurrency mining activities
and introduce heightened energy saving requirements on industrial parks, data centers and power plants providing electricity to
cryptocurrency miners. 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.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">Foreign laws, regulations
or directives may conflict with those of the United States and may negatively impact the acceptance of one or more digital assets
by users, merchants and service providers outside the United States and may therefore impede the growth or sustainability of the
digital asset economy in the European Union, China, Japan, Russia and the United States and globally, or otherwise negatively affect
the value of bitcoin. The effect of any 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: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">Furthermore, legal claims
have been filed in the United Kingdom by an entity associated with an individual named Craig Wright. The entity alleges that the
private keys to bitcoin purportedly worth several billion dollars were rendered inaccessible to it in a hack, and advances a series
of novel legal theories in support of its request that the court compel certain core developers associated with the Bitcoin network
to either somehow transfer the bitcoin out of the bitcoin address to which the entity no longer can access the private keys to
a new bitcoin address that it currently does control, or alternatively amend the source code to the Bitcoin network itself to restore
</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">its access to the stranded bitcoin. In 2022, the High Court dismissed the claims, finding that the entity had not established a
serious issue to be tried. However, in February 2023, the Court of Appeals unanimously overruled the High Court&rsquo;s decision,
holding that there was a serious issue to be tried. If a court decides to grant the relief requested, it is possible that wide-ranging
and fundamental changes to the source code, operations, and governance of, and basic principles underlying, the Bitcoin network
might be required, and a loss of public confidence in the Bitcoin network could result. Alternatively, bitcoin could face obstacles
to use or in the United Kingdom, which could reduce adoption. Courts in other jurisdictions could take similar positions. These
or other possible outcomes could lead to a decrease in the value of bitcoin, which could negatively impact the value of the Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Tax Risk</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"><B><I>The Treatment Of The Trust For U.S.
Federal Income Tax Purposes Is Uncertain.</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: 36pt">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: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">The Trust may take certain
positions with respect to the tax consequences of forked assets. If the IRS were to disagree with, and successfully challenge,
any of these positions, the Trust might not qualify as a grantor trust.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">Because of the evolving
nature of digital currencies, it is not possible to predict potential future developments that may arise with respect to digital
currencies, including forks, 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.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">If the Trust is not
properly classified as a grantor trust, the Trust might be classified as a partnership for U.S. federal income tax purposes. However,
due to the uncertain treatment of digital currency for U.S. federal income tax purposes, future developments regarding the treatment
of digital currency for U.S. federal income tax purposes could adversely affect the value of the Shares. If the Trust were classified
as a partnership for U.S. federal income tax purposes, the tax consequences of owning Shares generally would not be materially
different from the tax consequences described herein, although there might be certain differences, including with respect to timing
of the recognition of taxable income or loss and (in certain circumstances) withholding taxes. In addition, tax information reports
provided to beneficial owners of Shares would be made in a different form. If the Trust were not classified as either a grantor
trust or a partnership for U.S. federal income tax purposes, it generally would be classified as a corporation for such purposes.
If it were treated as a corporation, the Trust would be subject to entity-level U.S. federal income tax (currently at the rate
of 21%), plus possible state and/or local taxes, on its net taxable income, and certain distributions made by the Trust to Shareholders
would be treated as taxable dividends to the extent of the Trust&rsquo;s current and accumulated earnings and profits. Any such
dividend distributed to a beneficial owner of Shares that is a non-U.S. person for U.S. federal income tax purposes generally would
be subject to U.S. federal withholding tax at a rate of 30% (or such lower rate as provided in an applicable tax treaty).</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>The Treatment Of Digital Currency
For U.S. Federal Income Tax Purposes Is Uncertain.</I></B></P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">Assuming that the Trust
is properly treated as a grantor trust for U.S. federal income tax purposes, 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 (and, if applicable, any forked assets) held
in the Trust. Due to the new and evolving nature of digital currencies and the absence of comprehensive guidance with respect to
digital currencies, many significant aspects of the U.S. federal income tax treatment of digital currency are uncertain.</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">In 2014, the Internal
Revenue Service (&ldquo;IRS&rdquo;) released a notice (the &ldquo;Notice&rdquo;) discussing certain aspects of &ldquo;convertible
virtual currency&rdquo; (that is, digital currency that has an equivalent value in fiat currency or that acts as a substitute for
fiat currency) for U.S. federal income tax purposes and, in particular, stating that such digital currency (i) is &ldquo;property&rdquo;
(ii) is not &ldquo;currency&rdquo; for purposes of the rules relating to foreign currency gain or loss and (iii) may be held as
a capital asset. In 2019, the IRS released a revenue ruling and a set of &ldquo;Frequently Asked Questions&rdquo; (the &ldquo;Ruling&nbsp;&amp;
FAQs&rdquo;) that provide some additional guidance, including guidance to the effect that, under certain circumstances, hard forks
of digital currencies are taxable events giving rise to ordinary income and guidance with respect to the determination of the tax
basis of digital currency. However, the Notice and the Ruling&nbsp;&amp; FAQs do not address other significant aspects of the U.S.
federal income tax treatment of digital currencies. Moreover, although the Ruling&nbsp;&amp; FAQs address the treatment of hard
forks, there continues to be uncertainty with respect to the timing and amount of the income inclusions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">Future developments
that may arise with respect to digital currencies may increase the uncertainty with respect to the treatment of digital currencies
for U.S. federal income tax purposes. For example, the Notice addresses only digital currency that is &ldquo;convertible virtual
currency,&rdquo; and it is conceivable that, as a result of a fork, airdrop or similar occurrence, the Trust will hold certain
types of digital currency that are not within the scope of the Notice.</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">There can be no assurance
that the IRS will not alter its position with respect to digital currencies in the future or that a court would uphold the treatment
set forth in the Notice and the Ruling&nbsp;&amp; FAQs. It is also unclear what additional guidance on the treatment of digital
currencies for U.S. federal income tax purposes may be issued in the future. Any future guidance on the treatment of digital currencies
for U.S. federal income tax purposes could increase the expenses of the Trust and could have an adverse effect on the prices of
digital currencies, including on the price of bitcoin in the digital asset markets. As a result, any such future guidance 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: 36pt">&nbsp;</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">Shareholders are urged
to consult their tax advisers regarding the tax consequences of owning and disposing of Shares and digital currencies in general.</P>



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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Future Developments Regarding The
Treatment Of Digital Currency For U.S. Federal Income Tax Purposes Could Adversely Affect The Value Of The Shares.</I></B></P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">As discussed above,
many significant aspects of the U.S. federal income tax treatment of digital currency, such as bitcoin, are uncertain, and it is
unclear what guidance on the treatment of digital currency for U.S. federal income tax purposes may be issued in the future. It
is possible that any such guidance would have an adverse effect on the prices of digital currency, including on the price of bitcoin
in digital asset exchanges, and therefore may 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: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">Because of the evolving
nature of digital currencies, it is not possible to predict potential future developments that may arise with respect to digital
currencies, including forks, airdrops and similar occurrences. Such developments may increase the uncertainty with respect to the
treatment of digital currencies for U.S. federal income tax purposes. Moreover, certain future developments could render it impossible,
or impracticable, for the Trust to continue to be treated as a grantor trust 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: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Future Developments In The Treatment
Of Digital Currency For Tax Purposes Other Than U.S. Federal Income Tax Purposes Could Adversely Affect The Value Of The Shares.</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: 36pt">The taxing authorities
of certain states, including New York, (i) have announced that they will follow the Notice with respect to the treatment of digital
currencies for state income tax purposes and/or (ii) have issued guidance exempting the purchase and/or sale of digital currencies
for fiat currency from state sales tax. Other states have not issued any guidance on these points, and could take different positions
(e.g., imposing sales taxes on purchases and sales of digital currencies for fiat currency), and states that have issued guidance
on their tax treatment of digital currencies could update or change their tax treatment of digital currencies. It is unclear what
further guidance on the treatment of digital currencies for state or 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.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">The treatment of digital
currencies for tax purposes by non U.S. jurisdictions may differ from the treatment of digital currencies for U.S. federal, state
or local tax purposes. It is possible, for example, that a non U.S. jurisdiction would impose sales tax or value-</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">added tax on purchases
and sales of digital currencies for fiat currency. If a foreign jurisdiction with a significant share of the market of Bitcoin
users imposes onerous tax burdens on digital currency users, or imposes sales or value-added tax on purchases and sales of digital
currency for fiat currency, such actions could result in decreased demand for Bitcoin in such jurisdiction.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">Any future guidance
on the treatment of digital currencies for state, local or non U.S. tax purposes could increase the expenses of the Trust and could
have an adverse effect on the prices of digital currencies, including on the price of bitcoin in digital asset exchanges. As a
result, any such future guidance 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: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>A U.S. Tax-Exempt Shareholder May
Recognize &ldquo;Unrelated Business Taxable Income&rdquo; A Consequence Of An Investment In Shares.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">Under the guidance provided
in the Ruling&nbsp;&amp; FAQs, hard forks, airdrops and similar occurrences with respect to digital currencies 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 (as defined under &ldquo;U.S. Federal Income Tax Consequences&rdquo;
below) would constitute &ldquo;unrelated business taxable income&rdquo; (&ldquo;UBTI&rdquo;). Tax-exempt Shareholders should consult
their tax advisers 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: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Shareholders Could Incur A Tax Liability
Without An Associated Distribution Of The Trust.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">In the normal course
of business, it is possible that the Trust could incur a taxable gain in connection with the sale of bitcoin (such as sales of
bitcoin to obtain fiat currency with which to pay the Sponsor Fee or Trust expenses, and including deemed sales of bitcoin as a
result of the Trust using bitcoin to pay the Sponsor Fee or its expenses) that is otherwise not associated with a distribution
to Shareholders. 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: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>A Hard &ldquo;Fork&rdquo; Of The
Bitcoin Blockchain Could Result In Shareholders Incurring A Tax Liability.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">If a hard fork occurs
in the Bitcoin Blockchain, the Trust could hold both the original bitcoin and the alternative new bitcoin. The IRS has held that
a hard fork resulting in the creation of new units of cryptocurrency is a taxable event giving rise to ordinary income. Moreover,
if such an event occurs, the Trust Agreement provides that the Sponsor shall have the discretion to determine whether the original
or the alternative asset shall constitute bitcoin. The Trust shall treat whichever asset the Sponsor determines is not bitcoin
as forked assets. The Sponsor could determine, in its sole discretion, to take action to claim such forked assets, including selling
forked assets and distributing the cash proceeds to Shareholders, or distributing forked assets in-kind to the Shareholders or
to an agent acting on behalf of the Shareholders for sale by such agent.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">The Ruling&nbsp;&amp;
FAQs do 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 (as defined under &ldquo;U.S. Federal Income Tax Consequences&rdquo; below) 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 forked assets.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">The receipt, distribution
and/or sale of the alternative bitcoin may cause Shareholders to incur a United States federal, state, and/or local, or non-U.S.,
tax liability. Any tax liability could adversely impact an investment in the Shares and may require Shareholders to prepare and
file tax returns they would not otherwise be required to prepare and file.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Other Risks</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"><B><I>Potential Conflicts Of Interest May
Arise Among The Sponsor Or Its Affiliates And The Trust. The Sponsor And Its Affiliates Have No Fiduciary Duties To The Trust And
Its Shareholders Other Than As Provided In The Trust Agreement, Which May Permit Them To Favor Their Own Interests To The Detriment
Of The Trust And Its 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: 36pt">The Sponsor will manage
the affairs of the Trust. Conflicts of interest may arise among the Sponsor and its affiliates, on the one hand, and the Trust
and its Shareholders, on the other hand. As a result of these conflicts, the Sponsor may favor its own interests and the interests
of its affiliates over the Trust and its Shareholders. These potential conflicts include, among others, the following:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&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: 36pt"></TD><TD STYLE="width: 36pt"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">the Sponsor has no fiduciary duties to, and is allowed to take into account the interests of parties
other than, the Trust and its Shareholders in resolving conflicts of interest, provided the Sponsor does not act in bad faith;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 72pt; text-align: justify; text-indent: -36pt">&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: 36pt"></TD><TD STYLE="width: 36pt"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">the Trust has agreed to indemnify the Sponsor, the Trustee and their respective affiliates 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" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 36pt"></TD><TD STYLE="width: 36pt"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">the Sponsor is responsible for allocating its own limited resources among different clients and
potential future business ventures, to each of which it may owe fiduciary duties;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 72pt; text-align: justify; text-indent: -36pt">&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: 36pt"></TD><TD STYLE="width: 36pt"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">the Sponsor and its staff also service affiliates of the Sponsor, and may also service other digital
asset investment vehicles, and their respective clients and cannot devote all of its, or their, respective time or resources to
the management of the affairs of the Trust;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 72pt; text-align: justify; text-indent: -36pt">&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: 36pt"></TD><TD STYLE="width: 36pt"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">MarketVector, which is the index administrator of the MarketVector<SUP>TM</SUP> Bitcoin Benchmark
Rate, is an affiliate of the Sponsor;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 72pt; text-align: justify; text-indent: -36pt">&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: 36pt"></TD><TD STYLE="width: 36pt"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">the Sponsor, its affiliates and their officers and employees are not prohibited from engaging in
other businesses or activities, including those 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" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 36pt"></TD><TD STYLE="width: 36pt"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">affiliates of the Sponsor may start to have substantial direct investments in bitcoin, or other
digital assets or companies in the digital assets ecosystem that they are permitted to manage taking into account their own interests
without regard to the interests of the Trust or its Shareholders, and any increases, decreases or other changes in such investments
could affect the Index price and, in turn, the value of the Shares;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 72pt; text-align: justify; text-indent: -36pt">&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: 36pt"></TD><TD STYLE="width: 36pt"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">the Sponsor decides whether to retain separate counsel, accountants or others to perform 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: 36pt"></TD><TD STYLE="width: 36pt"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">the Sponsor may appoint an agent to act on behalf of the Shareholders, including in connection
with the distribution of any forked assets, which agent may be the Sponsor or an affiliate of the Sponsor.</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: 36pt">By purchasing the Shares,
Shareholders 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: 36pt">&nbsp;</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Shareholders Cannot Be Assured Of
The Sponsor&rsquo;s Continued Services, The Discontinuance Of Which May Be Detrimental To The Trust.</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: 36pt">Shareholders cannot
be assured that the Sponsor will be willing or able to continue to serve as sponsor to the Trust for any length of time. If the
Sponsor discontinues its activities on behalf of the Trust and a substitute sponsor is not appointed, the Trust will terminate
and liquidate its bitcoins.</P>

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    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">Appointment of a substitute
sponsor will not guarantee the Trust&rsquo;s continued operation, successful or otherwise. Because a substitute sponsor may have
no experience managing a digital asset financial vehicle, a substitute sponsor may not have the experience, knowledge or expertise
required to ensure that the Trust will operate successfully or continue to operate at all. Therefore, the appointment of a substitute
sponsor may not necessarily be beneficial to the Trust and the Trust may terminate.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Although The Bitcoin Custodian Is
A Fiduciary With Respect To The Trust&rsquo;s Assets, It Could Resign Or Be Removed By The Sponsor, Which May Trigger Early Dissolution
Of The Trust.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">The Bitcoin Custodian
is a fiduciary under &sect; 100 of the New York Banking Law and a qualified custodian for purposes of Rule 206(4)-2(d)(6) under
the Advisers Act and is licensed to custody the Trust&rsquo;s bitcoins in trust on the Trust&rsquo;s behalf. However, the Bitcoin
Custodian may terminate the Custody Agreement immediately or upon providing the applicable notice provided under the Custody Agreement.
If the Bitcoin Custodian resigns, is removed, or is prohibited by applicable law or regulation to act as custodian, and no successor
custodian has been employed, the Sponsor may dissolve the Trust in accordance with the terms of the Trust Agreement.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Shareholders May Be Adversely Affected
By The Lack Of Independent Advisers Representing Investors In The Trust.</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: 36pt">The Sponsor has consulted
with counsel, accountants and other advisers regarding the formation and operation of the Trust. No counsel was appointed to represent
investors in connection with the formation of the Trust or the establishment of the terms of the Trust Agreement and the Shares.
Moreover, no counsel has been appointed to represent an investor in connection with the offering of the Shares. Accordingly, an
investor should consult his, her or its own legal, tax and financial advisers regarding the desirability of the value of the Shares.
Lack of such consultation may lead to 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: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Shareholders And Authorized Participants
Lack The Right Under The Custodian Agreement To Assert Claims Directly Against The Bitcoin Custodian, Which Significantly Limits
Their Options For Recourse.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">Neither the Shareholders
nor any Authorized Participant have a right under the Custodian Agreement to assert a claim against the Bitcoin Custodian. Claims
under the Custodian Agreement may only be asserted by the Trustee on behalf of the Trust<B><I>.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>The Exchange On Which The Shares
Are Listed May Halt Trading In The Trust&rsquo;s Shares, Which Would Adversely Impact A Shareholder&rsquo;s Ability To Sell Shares.</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: 36pt">The Trust&rsquo;s Shares
are listed for trading on the Exchange under the market symbol &ldquo;[&nbsp;].&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 Trust&rsquo;s 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: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>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.</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: 36pt">In the event that one
or more Authorized Participants or market makers that have substantial interests in the Trust&rsquo;s Shares withdraw or &ldquo;step
away&rdquo; from participation in the purchase (creation) or sale (redemption) of the Trust&rsquo;s Shares, the liquidity of the
Shares will likely decrease, which could adversely affect the market price of the Shares and result in Shareholders incurring a
loss on their investment.</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><I>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.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">Bitcoin is extremely
volatile, and concerns exist about the stability, reliability and robustness of many exchanges where bitcoin trade. In a highly
volatile market, or if one or more exchanges 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;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Bitcoin Spot Exchanges Are Not Subject
To Same Regulatory Oversight As Traditional Equity Exchanges, Which Could Negatively Impact The Ability Of Authorized Participants
To Implement Arbitrage Mechanisms.</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: 36pt">The trading for spot
bitcoin occurs on multiple trading venues that have various levels and types of regulation, but are not regulated in the same manner
as traditional stock and bond exchanges. If these exchanges do not operate smoothly or face technical, </P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>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 Shareholders&rsquo; Investment In The Shares.</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: 36pt">Only Authorized Participants
may create or redeem Creation Baskets. All other Shareholders 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-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>As The Sponsor And Its Management
Have Limited History Of Operating Investment Vehicles Like The Trust, Their Experience May Be Inadequate Or Unsuitable To Manage
The Trust.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">The past performances
of the Sponsor&rsquo;s management in other investment vehicles are no 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: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">Furthermore, the Sponsor
is currently engaged in the management of other investment vehicles which could divert their attention and resources. If the Sponsor
were to experience difficulties in the management of such other investment vehicles that damaged the Sponsor or its reputation,
it could have an adverse impact on the Sponsor&rsquo;s ability to continue to serve as Sponsor for the Trust.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>The Sponsor Is Leanly Staffed And
Relies Heavily On Key Personnel.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">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-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>The Trust Is New, And If It Is Not
Profitable, The Trust May Terminate And Liquidate At A Time That Is Disadvantageous To Shareholders.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">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. Shareholders 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: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>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.</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: 36pt">The Shares have limited
voting and distribution rights. For example, Shareholders do not have the right to elect directors, the Trust may enact splits
or reverse splits without Shareholder approval and the Trust is not required to pay regular distributions, although the Trust may
pay distributions at the discretion of the Sponsor.</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; text-indent: 36pt">The Sponsor and the Trustee may agree to
amend the Trust Agreement, including to increase the Sponsor Fee, without Shareholder consent. If an amendment imposes new fees
and charges or increases existing fees or charges, including the Sponsor&rsquo;s Fee (except for taxes and other governmental charges,
registration fees or other such expenses), or prejudices a substantial existing right of Shareholders, it will become effective
for outstanding Shares 30 days after notice of such amendment is given to registered owners. Notwithstanding the foregoing, the
Sponsor shall have the right to increase or decrease the amount of the Sponsor Fee (i) upon three (3) business days&rsquo; prior
notice of the increase or decrease being posted on the website of the Trust and (ii) upon three (3) business days&rsquo; prior
written notice of the increase or decrease being given to the Trustee. 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 as amended without specific agreement to such increase (other than through the &ldquo;negative
consent&rdquo; procedure described above).</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>The Trust Agreement Includes Provisions
That Limit Shareholders&rsquo; Voting Rights And Restrict Shareholders&rsquo; Right To Bring A Derivative Action.</I></B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">Under the Trust Agreement,
Shareholders generally have no voting rights and the Trust will not have regular Shareholder meetings. Shareholders take no part
in the management or control of the Trust. Accordingly, Shareholders do not have the right to authorize actions, appoint service
providers or take other actions as may be taken by shareholders of other trusts or companies where shares carry such rights. The
Sponsor may take actions in the operation of the Trust that may be adverse to the interests of Shareholders 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: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">Moreover, pursuant to
the terms of the Trust Agreement, Shareholders&rsquo; statutory right under Delaware law to bring a derivative action (i.e., to
initiate a lawsuit in the name of the Trust in order to assert a claim belonging to the Trust against a fiduciary of the Trust
or against a third-party when the Trust&rsquo;s management has refused to do so) is restricted. Under Delaware law, a shareholder
may bring a derivative action if the shareholder is a shareholder at the time the action is brought and either (i) was a shareholder
at the time of the transaction at issue or (ii) acquired the status of shareholder by operation of law or the Trust&rsquo;s governing
instrument from a person who was a shareholder at the time of the transaction at issue. Additionally, Section 3816(e) of the Delaware
Statutory Trust Act specifically provides that a &ldquo;beneficial owner&rsquo;s right to bring a derivative action may be subject
to such additional standards and restrictions, if any, as are set forth in the governing instrument of the statutory trust, including,
without limitation, the requirement that beneficial owners owning a specified beneficial interest in the statutory trust join in
the bringing of the derivative action.&rdquo; In addition to the requirements of applicable law and in accordance with Section
3816(e), the Trust Agreement provides that no Shareholder will have the right, power or authority to bring or maintain a derivative
action, suit or other proceeding on behalf of the Trust unless two or more Shareholders who (i) are not &ldquo;Affiliates&rdquo;
(as defined in the Trust Agreement and below) of one another and (ii) collectively hold at least 10% of the outstanding Shares
join in the bringing or maintaining of such action, suit or other proceeding. This provision applies to any derivative actions
brought in the name of the Trust other than claims under 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: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">Due to this additional
requirement, a Shareholder attempting to bring or maintain a derivative action in the name of the Trust will be required to locate
other Shareholders with which it is not affiliated and that have sufficient Shares to meet the 10% threshold based on the number
of Shares outstanding on the date the claim is brought and thereafter throughout the duration of the action, suit or proceeding.
This may be difficult and may result in increased costs to a Shareholder attempting to seek redress in the name of the Trust in
court. Moreover, if Shareholders bringing a derivative action, suit or proceeding pursuant to this provision of the Trust Agreement
do not hold 10% of the outstanding Shares on the date such an action, suit or proceeding is brought, or such Shareholders are unable
to maintain Share ownership meeting the 10% threshold throughout the duration of the action, suit or proceeding, such Shareholders&rsquo;
derivative action may be subject to dismissal. As a result, the Trust Agreement limits the likelihood that a Shareholder will be
able to successfully assert a derivative action in the name of the Trust, even if such Shareholder believes that he or she has
a valid derivative action, suit or other proceeding to bring on behalf of the Trust.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>An Investment In The Trust May Be Adversely Affected By
Competition From Other Investment Vehicles Focused On Bitcoin Or Other Cryptocurrencies.</I></B></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; text-align: justify; text-indent: 36pt">The Trust will compete
with direct investments in bitcoin, other cryptocurrencies, Bitcoin Futures, and other potential financial vehicles, possibly including
securities backed by or linked to cryptocurrency 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-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Shareholders Cannot Be Assured Of
The Sponsor&rsquo;s Continued Services, The Discontinuance Of Which May Be Detrimental To The Trust.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">Shareholders 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: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Shareholders May Be Adversely Affected
By Creation Or Redemption Orders That Are Subject To Postponement, Suspension Or Rejection Under Certain Circumstances.</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"> </P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 10pt">The Trust may, in its discretion,
suspend the right of creation or redemption or may postpone the redemption or purchase settlement date, for (1) 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 purchase order or the redemption distribution
is not reasonably practicable (</FONT><FONT STYLE="font-size: 10pt">for example, as a result of a significant technical failure,
power outage, or network error)</FONT><FONT STYLE="font-size: 10pt">, or (3) such other period as the Sponsor determines to be
necessary for the protection of the Shareholders of the Trust </FONT><FONT STYLE="font-size: 10pt">(for example, where acceptance
of the total deposit required to create each Basket [(&ldquo;Creation Basket Deposit&rdquo;)] would have certain adverse tax consequences
to the Trust or its Shareholders)</FONT><FONT STYLE="font-size: 10pt">. In addition, the Trust may reject a redemption order if
(1) the order is not in proper form as described in the Authorized Participant Agreement, (2) the fulfillment of the order 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 </FONT></P>

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

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<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 10pt"> </FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 10pt">manner provided in the Authorized Participant Agreement, Cash Custodian or the Bitcoin
Custodian make it for all practical purposes not feasible for the Shares to be delivered or the redemption distribution to be made.
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 on the secondary market, which could cause them to trade
at levels materially different (premiums and discounts) from the fair value of their underlying holdings.</FONT></P>

<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-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">If such a suspension
or postponement occurs at a time when an Authorized Participant intends to redeem Shares, and the price of bitcoin decreases before
such Authorized Participant is able again to surrender for redemption Creation Baskets, such Authorized Participant will sustain
a loss with respect to the amount that it would have been able to obtain in exchange for the bitcoin received from the Trust upon
the redemption of its Shares, had the redemption taken place when such Authorized Participant originally intended it to occur.
As a consequence, Authorized Participants may reduce their trading in Shares during periods of suspension, decreasing the number
of potential buyers of Shares in the secondary market and, therefore, decreasing the price a Shareholder may receive upon sale.</P>

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

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

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt"><FONT STYLE="font-size: 10pt">In
certain circumstances, the Trust&rsquo;s bitcoin investments may be valued using techniques other than reliance on the price established
by the MarketVector<SUP>TM</SUP> Bitcoin Benchmark Rate. As described further in &ldquo;Net Asset Value Determinations,&rdquo;
the Sponsor will monitor for significant events related to crypto assets that may impact the value of bitcoin and will determine
in good faith, and in accordance with its valuation policies and procedures, whether to fair value the Trust&rsquo;s bitcoin on
a given day based on whether certain pre-determined criteria have been met. For example, if the MarketVector</FONT><SUP>TM</SUP><FONT STYLE="font-size: 10pt">&nbsp;Bitcoin
Benchmark Rate deviates by more than a pre-determined amount from an alternate benchmark available to the Sponsor, then the Sponsor
may determine to utilize the alternate benchmark.&nbsp;The value of the Shares of the Trust established by using the MarketVector<SUP>TM</SUP>
Bitcoin Benchmark Rate may be different from what would be produced through the use of another methodology. Bitcoin or other digital
asset investments that are valued using techniques other than those employed by the MarketVector<SUP>TM</SUP> Bitcoin Benchmark
Rate, including bitcoin investments that are &ldquo;fair valued,&rdquo; may be subject to greater fluctuation in their value from
one day to the next than would be the case if market-price valuation techniques were used.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0"> </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"><B><I>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.</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: 36pt">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 or by the Trustee. 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-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Due To The Increased Use Of Technologies,
Intentional And Unintentional Cyber-Attacks Pose Operational And Information Security Risks.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">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 service providers (including, but not limited to, MarketVector,
the administrator, transfer agent, and the Bitcoin 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: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">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: 36pt">&nbsp;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>The Trust and its service providers are subject to certain
operational risks. </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: 36pt">The Trust and its service
providers, including the Sponsor, Administrator, Transfer Agent, Bitcoin Custodian and Cash Custodian (as well as Authorized Participants
and market makers) may experience disruptions that arise from human error, processing and communications errors, counterparty or
third-party errors, or technology or systems failures, any of which may have an adverse</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">impact on the Trust. Although the Trust
and its service providers seek to mitigate these operational risks through their internal controls and operational risk management
processes, these measures may not identify or may be inadequate to address all such risks. Additionally, the Bitcoin Custodian,
which was established in 2015, has a limited operating company and experience, which could heighten certain operational risks.</P>

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Risk Factors Related to ERISA</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"><B><I>In General.</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: 36pt">Notwithstanding the
commercially reasonable efforts of the Sponsor, it is possible that the underlying assets of the Trust will be deemed to include
&ldquo;plan assets&rdquo; for the purposes of Title I of ERISA or Section 4975 of the Code. If the assets of the Trust were deemed
to be &ldquo;plan assets,&rdquo; this could result in, among other things, (i) the application of the prudence and other fiduciary
standards of ERISA to investments made by the Trust and (ii) the possibility that certain transactions in which the Trust might
otherwise seek to engage in the ordinary course of its business and operation could constitute non-exempt &ldquo;prohibited transactions&rdquo;
under Section 406 of ERISA and/or Section 4975 of the Code, which could restrict the Trust from entering into an otherwise desirable
investment or from entering into an otherwise favorable transaction. In addition, fiduciaries who decide to invest in the Trust
could, under certain circumstances, be liable for &ldquo;prohibited transactions&rdquo; or other violations as a result of their
investment in the Trust or as co-fiduciaries for actions taken by or on behalf of the Trust or the Sponsor. There may be other
federal, state, local, non-U.S. law or regulation that contains one or more provisions that are similar to the foregoing provisions
of ERISA and the Code that may also apply to an investment in the Trust.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">The application of ERISA
(including the corresponding provisions of the Code and other relevant laws) may be complex and dependent upon the particular facts
and circumstances of the Trust and of each Plan, and it is the responsibility of the appropriate fiduciary of each investing Plan
to ensure that any investment in the Trust by such Plan is consistent with all applicable requirements. Each Shareholder, whether
or not subject to Title I of ERISA or Section 4975 of the Code, should consult its own legal and other advisors regarding the considerations
discussed above and all other relevant ERISA and other considerations before purchasing the Shares.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B><A NAME="x6_c106800a004"></A>BITCOIN,
BITCOIN MARKET, BITCOIN EXCHANGES AND REGULATION OF BITCOIN</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 36pt"><FONT STYLE="text-transform: uppercase"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">This section of the prospectus
provides a more detailed description of bitcoin. 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, while &ldquo;Bitcoin network&rdquo; refers to the peer-to-peer network and &ldquo;Bitcoin Blockchain&rdquo; refers
to the blockchain ledger. When referring to the digital asset, bitcoin is written with a lower case &ldquo;b&rdquo;.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">Bitcoin is a digital asset
that can be transferred among participants on the Bitcoin network on a peer-to-peer basis via the Internet. Unlike other means
of electronic payments, bitcoin can be transferred without the use of a central administrator or clearing agency. Because 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.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">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.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">The first step in using
bitcoin for transactions on a peer-to-peer basis 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 on the Bitcoin Blockchain and are associated with a pair of public and private keys. After establishing a bitcoin
address, a user can send or receive bitcoin from his or her bitcoin address to another user&rsquo;s address using the public and
private keys. 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.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">The amount of bitcoin associated
with each bitcoin address is listed in a public ledger, referred to as a &ldquo;blockchain.&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.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">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 data packet containing the proposed addition (often referred to as a &ldquo;transaction&rdquo;)
to the Bitcoin Blockchain. The proposed transaction would reduce the sender&rsquo;s address and increase the recipient&rsquo;s
address by the amount of bitcoin desired to be transferred, and is sent on a peer-to-peer basis to other computers participating
in the Bitcoin network.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Bitcoin Protocol Development and Modifications</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">Bitcoin is an open source
project with no central authority that controls the Bitcoin network, and anyone can review the underlying code and suggest changes.
There are, however, a number of individual developers that regularly contribute to a specific distribution of Bitcoin software
known as the &ldquo;Bitcoin Core,&rdquo; and who loosely oversee the development of its source code. There are many other compatible
versions of Bitcoin software, but Bitcoin Core is the most widely adopted and currently provides the <I>de facto</I> standard for
the Bitcoin protocol. The core developers are able to access, and can alter, the Bitcoin network source code and, as a result,
they are responsible for quasi-official releases of updates and other changes to the Bitcoin network&rsquo;s source code. However,
because Bitcoin has no central authority, the release of updates to the Bitcoin network&rsquo;s source code by the core developers
does not guarantee that the updates will be automatically adopted by the other participants in the Bitcoin network. Users and miners
must accept any changes made to the Bitcoin source code by downloading the proposed modification of the Bitcoin network&rsquo;s
source code. A modification of the Bitcoin network&rsquo;s source code is effective only with respect to those Bitcoin users and
miners who choose to download it. If a modification is accepted by only a 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; See &ldquo;<I>Risk Factors&mdash;A temporary or permanent &ldquo;fork&rdquo;
could adversely affect an investment in the Trust.</I>&rdquo; Consequently, as a practical matter,</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">a modification to the source code becomes part
of the Bitcoin network only if accepted by participants collectively having most of the processing power on the Bitcoin network.
In recent years, there have been several forks in the Bitcoin network, including, but not limited to, forks resulting in the creation
of Bitcoin Cash (August 1, 2017), Bitcoin Gold (October 24, 2017) and Bitcoin SegWit2X (December 28, 2017), among others. For example,
on August 1, 2017, a group of developers and miners accepted certain changes to the Bitcoin network software intended to increase
transaction capacity, while the rest of the Bitcoin network did not, causing a hard fork. Blocks mined on this new network, called
Bitcoin Cash, now diverge from blocks mined on the Bitcoin network, which has resulted in the creation of a new blockchain whose
digital asset is referred to as &ldquo;bitcoin cash.&rdquo; Bitcoin and Bitcoin Cash now operate as separate, independent networks,
and have different native digital assets (bitcoin versus bitcoin cash).</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">A hard fork may adversely
affect the price and tax status of bitcoin at the time of announcement or adoption. For example, the announcement of a hard fork
could lead to increased demand for the pre fork digital asset, in anticipation that ownership of the pre fork digital asset would
entitle holders to a new digital asset following the fork. The increased demand for the pre fork digital asset may cause the price
of the digital asset to rise. After the hard fork, it is possible the aggregate price of the two versions of the digital asset
running in parallel would be less than the price of the digital asset immediately prior to the fork. Furthermore, while the Sponsor
will, as permitted by the terms of the Trust Agreement, determine which network is generally accepted as the Bitcoin network and
should therefore be considered the appropriate network for the Trust&rsquo;s purposes, there is no guarantee that the Sponsor will
choose the network and the associated digital asset that is ultimately the most valuable fork. Either of these events could therefore
adversely impact the value of the Shares. When Bitcoin Cash forked from the Bitcoin network, the value of Bitcoin went from $2,800
to $2,700.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">The Trust has adopted the
following procedures to address situations involving any fork, airdrop or similar event that results in the issuance of new cryptocurrency
that the Trust may receive. The Trust Agreement stipulates that if such a transaction does occur, the Trust will as soon as possible
direct the Bitcoin Custodian to distribute the new cryptocurrency in-kind to the Sponsor, as agent for the Shareholders, and the
Sponsor will arrange to sell the new cryptocurrency and for the proceeds to be distributed to the Shareholders. The Sponsor may
use an affiliate to assist in the sale of the new cryptocurrency, which may create a conflict of interest to the extent that its
trading decisions with respect to the new cryptocurrency may be influenced by the effect they would have on other funds the Sponsor&rsquo;s
affiliates may manage. However, the Trust may not be able, or it may not be practical, to secure or realize any economic benefit
from the new asset, and the Trust is under no obligation to do so. For example, the Trust is under no obligation to claim the forked
asset if doing so is impossible, impractical, prohibited by law, operationally burdensome, will expose the Trust, the Sponsor,
or the Trust&rsquo;s (original) bitcoin holdings to risk, may cause the Trust to fail to qualify as a grantor trust under the Code
or any comparable provision of the laws of any State or other jurisdiction where such treatment is sought, is unjustified given
the costs of taking possession and/or maintaining ownership of the forked asset exceed the benefits of owning the forked asset,
or is otherwise inadvisable, in each case, as determined by the Sponsor in its sole and absolute discretion, taking into account
whatever factors it deems necessary or appropriate. Alternatively, the Bitcoin Custodian may not agree to provide the Trust with
access to the new asset. There is no guarantee that the Bitcoin Custodian will support a forked asset or that the Trust will be
able to make a one-time withdrawal of a forked asset that is not supported by the Bitcoin Custodian. Even if the Bitcoin Custodian
supports a forked asset, the Sponsor may be unable to make arrangements for the new cryptocurrency to be sold. For these or other
reasons, the Sponsor may determine, in its sole and absolute discretion, to cause the Trust to irrevocably and permanently abandon,
for no consideration, such forked assets. To the extent that there are material changes to the procedures described within this
paragraph, notification will be made to Shareholders via a prospectus supplement to the Registration Statement and/or a current
report filed with the SEC.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">Core development of the
Bitcoin network source code has increasingly focused on modifications of the Bitcoin network protocol to increase speed and scalability
and also allow for non-financial, next generation uses. For example, following the 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. The system
utilizes bidirectional payment channels that consist of multi-signature addresses. One transaction on the Bitcoin Blockchain is
needed to open a channel and another on-blockchain transaction can close the channel. Once a channel is open, value can be transferred
instantly between counterparties, who are engaging in real bitcoin transactions without broadcasting them to the Bitcoin network.
New transactions will replace previous transactions and the counterparties will store everything locally as long as the channel
stays open to increase transaction throughput and reduce computational burden on the Bitcoin network. 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 demand for bitcoin and 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 bloat the size of the Bitcoin Blockchain or slow confirmation times. At this time, such projects remain in early
stages and have not been materially integrated into the Bitcoin Blockchain or the Bitcoin network.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

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

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">A peer-to-peer 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. The sender&rsquo;s
use of his or her digital signature enables participants on the Bitcoin network to verify the authenticity of the bitcoin transaction.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">A user&rsquo;s digital signature
is generated via usage of the user&rsquo;s so-called &ldquo;private key,&rdquo; one of two numbers in a so-called cryptographic
&ldquo;key pair.&rdquo; A key pair consists of a &ldquo;public key&rdquo; and its corresponding private key, 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: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">Public keys are associated
with bitcoin addresses that are publicly known and can accept a bitcoin transfer. Private keys are used to sign transactions that
initiate the transfer of bitcoin from a sender&rsquo;s bitcoin address to a recipient&rsquo;s bitcoin address. Only the holder
of the private key associated with a particular bitcoin address can digitally sign a transaction proposing a transfer of bitcoin
from that particular bitcoin address.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">A user&rsquo;s bitcoin address
may be safely distributed, but a user&rsquo;s private key must be kept in accordance with appropriate controls and procedures to
ensure it is used only for legitimate and intended transactions. Only by using a private key can a bitcoin user create a digital
signature to transfer bitcoin to another user. In addition, if an unauthorized third person learns of a user&rsquo;s private key,
that third person could forge the user&rsquo;s digital signature and send the user&rsquo;s bitcoin to any arbitrary bitcoin address,
thereby stealing the user&rsquo;s bitcoin.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">The usage of key pairs is
a cornerstone of the Bitcoin network. 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 enables the thief immediate and unfettered access to the corresponding bitcoin. Bitcoin users must therefore understand
that in this regard, bitcoin is a bearer asset, similar to cash: that is, the person or entity in control of the private key corresponding
to a particular quantity of bitcoin has <I>de facto</I> control of the bitcoin. For large quantities of bitcoin, holders often
employ sophisticated security measures. For a discussion of how the Trust secures its bitcoin, see &ldquo;<I>The Bitcoin Custodian</I>&rdquo;
below.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">The Bitcoin network incorporates
a system to prevent double spending of a single bitcoin. To prevent the possibility of double-spending a single 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.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">The process by which bitcoin
are created and bitcoin transactions are verified is called mining. To begin mining, a user, or &ldquo;miner,&rdquo; can download
special mining software, which, like regular Bitcoin network software programs, turns the user&rsquo;s computer into a &ldquo;node&rdquo;
on the Bitcoin network, and also has the ability to validate transactions and add new blocks of transactions to the Blockchain.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">Miners, through the use
of the bitcoin software program, engage in a set of prescribed complex mathematical calculations imposed by the Bitcoin network&rsquo;s
software protocol, called &ldquo;proof of work&rdquo;, in order to validate proposed transactions and bundle them into a data packet
known as a &ldquo;block&rdquo;. The first miner who successfully solves the cryptographic puzzle imposed by the Bitcoin network&rsquo;s
software protocol is permitted to add a block of transactions to the Bitcoin Blockchain and is rewarded by a grant of 6.25 newly-issued
bitcoin, known as the &ldquo;block reward&rdquo;. Bitcoin is created and allocated by the Bitcoin network protocol and distributed
through a &ldquo;mining&rdquo; process subject to a strict, well-known issuance schedule. Block rewards for mining are the method
by which new bitcoin is issued. The supply of bitcoin is limited to 21 million by the Bitcoin network&rsquo;s software protocol.
Miners may also be paid an optional transaction fee by the users whose transactions are contained in the mined block.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">Confirmed and validated
peer-to-peer 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; as a
result, individual miners and mining pools on the Bitcoin network engage in a competitive process of constantly increasing their
computing power to improve their individual likelihood of solving new blocks. As more miners join the Bitcoin network and its processing
power increases, or if miners leave the Bitcoin network and its processing power declines, 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: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">Bitcoin can be transferred
in direct peer-to-peer transactions through the direct sending of bitcoin over the Bitcoin Blockchain from one bitcoin address
to another. Among end-users, bitcoin can be used to pay other members of the Bitcoin network for goods and </P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">services under what
resembles a barter system. Consumers can also pay merchants and other commercial businesses for goods or services through direct
peer-to-peer transactions on the Bitcoin Blockchain or through third-party service providers.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">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 the
supply of and demand for bitcoin in the global bitcoin market, market expectations for the adoption of bitcoin as a store of value,
the number of merchants that accept bitcoin as a form of payment, and the volume of peer-to-peer transactions, among other factors.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">A bitcoin exchange provides
investors with a website that permits investors to open accounts with the exchange and then purchase and sell bitcoin. Prices for
trades on bitcoin exchanges are typically reported publicly. An investor opening a trading account must deposit an accepted government-issued
currency into their account with the exchange, or a previously acquired digital asset, before they can purchase or sell assets
on the exchange. The process of establishing an account with a bitcoin exchange 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 on the Bitcoin Blockchain.
This latter process is an activity that occurs on the Bitcoin network, while the former is an activity that occurs entirely on
the private website operated by the exchange. The exchange typically records the investor&rsquo;s ownership of bitcoin in its internal
books and records, rather than on the Bitcoin Blockchain. The exchange ordinarily does not transfer bitcoin to the investor on
the Bitcoin Blockchain unless the investor makes a request to the exchange to withdraw the bitcoin in their exchange account to
an off-exchange bitcoin wallet.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">Outside of exchanges, Bitcoin
can be traded OTC in transactions that are not publicly reported. The OTC market is largely institutional in nature, and OTC market
participants generally consist of institutional entities, such as firms that offer two-sided liquidity for bitcoin, investment
managers, proprietary trading firms, high-net-worth individuals that trade bitcoin on a proprietary basis, entities with sizeable
bitcoin holdings, and family offices. The OTC market provides a relatively flexible market in terms of quotes, price, quantity,
and other factors, although it tends to involve large blocks of bitcoin. The OTC market has no formal structure and no open-outcry
meeting place. Parties engaging in OTC transactions will agree upon a price&mdash;often via phone or email&mdash;and then one of
the two parties will then 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 U.S. dollars to the seller&rsquo;s bank account. OTC
trades are sometimes hedged and eventually settled with concomitant trades on bitcoin spot exchanges.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">Although bitcoin was the
first digital asset, in the ensuing years, 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 Ethereum, Bitcoin Cash, and litecoin. The category
and protocols are still being defined and evolving.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">Authorized Participants
will deliver, or facilitate the delivery of, bitcoin or cash to the Trust&rsquo;s account with the Bitcoin Custodian in exchange
for Shares of the Trust, and the Trust, through the Bitcoin Custodian, will deliver bitcoin or cash when such Authorized Participants
redeem Shares of the Trust. Based on the CCData Exchange Benchmark, MarketVector selects the top five exchanges by rank for inclusion
in the MarketVector<SUP>TM</SUP> Bitcoin Benchmark Rate, which the Trust will then use to price its NAV at the end of every business
day. See &ldquo;<I>The Trust and Bitcoin Prices&mdash;Description of the MarketVector<SUP>TM</SUP> Bitcoin Benchmark Rate Construction
and Maintenance</I>&rdquo; for more information.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Regulation of Bitcoin and Government Oversight</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">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,
FINRA, 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 regulators) have been examining the operations of
digital asset networks, digital asset users and the digital asset exchange 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 digital assets for users. Many of these state and federal agencies
have issued consumer advisories regarding the risks posed by digital assets to investors. In addition, federal and state agencies,
and other countries have issued rules or guidance about the treatment of digital asset transactions or requirements for businesses
engaged in digital asset activity. For more information, see &ldquo;<I>Risk Factors&mdash;Digital asset markets in the U.S. exist
in a state of regulatory uncertainty, and adverse legislative or regulatory developments could significantly harm the value of
bitcoin or the Shares, such as by banning, restricting or imposing onerous conditions or prohibitions on the use of bitcoins, mining
activity, digital wallets, the provision of services related to trading and custodying bitcoin, the operation of the Bitcoin network,
or the digital asset markets generally.</I>&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">Various foreign jurisdictions
have, and may continue to, in the near future, adopt laws, regulations or directives that affect the Bitcoin network, the bitcoin
markets, and their users, particularly bitcoin exchanges and service providers that fall within such jurisdictions&rsquo; regulatory
scope. For more information, see &ldquo;<I>Risk Factors&mdash;Regulatory changes or actions in foreign jurisdictions may </I></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><I>affect
the value of the Shares or restrict the use of bitcoin, mining activity or the operation of their networks or the global bitcoin
markets in a manner that adversely affects the value of the Shares.</I>&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt"><FONT STYLE="font-size: 10pt">The
effect of any 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.</FONT></P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B><A NAME="x6_c106800a005"></A>THE
TRUST AND BITCOIN PRICES</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 36pt"><FONT STYLE="text-transform: uppercase"><B>&nbsp;</B></FONT></P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">The Trust is an exchange-traded
fund that issues Shares that trade on the Exchange. The Trust&rsquo;s investment objective is to reflect the performance of the
price of bitcoin less the expenses of the Trust&rsquo;s operations. In seeking to achieve its investment objective, the Trust will
hold bitcoin and will value its Shares daily based on the reported MarketVector<SUP>TM</SUP> Bitcoin Benchmark Rate, which is calculated
based on prices contributed by exchanges that MarketVector believes represent the top five bitcoin exchanges, based on the industry
leading CCData Exchange Benchmark review report. The Trust is sponsored by VanEck Digital Assets, LLC, a wholly-owned subsidiary
of VanEck.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">The Sponsor believes that
the Trust will provide a cost-efficient way for Shareholders to implement strategic and tactical asset allocation strategies that
use bitcoin by investing in the Trust&rsquo;s Shares rather than purchasing, holding and trading bitcoin directly. The latter alternative
would require selecting a bitcoin exchange and opening an account or arranging a private transaction, establishing a personal computer
system capable of transacting directly on the blockchain, and incurring the risk associated with maintaining and protecting a private
key that is irrecoverable if lost, among other difficulties.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">The value of bitcoin is
determined by the value that various market participants place on Bitcoin through their transactions. The most common means of
determining the value of a bitcoin is by surveying one or more bitcoin exchanges where bitcoin is traded publicly and transparently.
The price of bitcoin on the bitcoin market has exhibited periods of extreme volatility, which could have a negative impact on the
performance of the Trust. For example, between November 2021 and November 2022, the price of bitcoin fell from an all-time high
of $68,789 to$15,460. As of November 12, 2023, the price of bitcoin has increased to $37,208. (source: Coinbase).</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">On exchanges, bitcoin is
traded with publicly disclosed valuations for each executed trade, measured by one or more fiat currencies such as the U.S. dollar
or Euro. OTC dealers or market makers do not typically disclose their trade data.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">Currently, there are many
exchanges operating worldwide, representing a substantial percentage of bitcoin buying and selling activity, and providing the
most data with respect to prevailing valuations of bitcoins. The below table reflects the average daily trading volume (in thousands
of USD) of each of the bitcoin exchanges included in the MarketVector<SUP>TM</SUP> Bitcoin Benchmark Rate as of [&nbsp;], 2023
using data reported by MarketVector from December 1, 2022 to November 30, 2023:</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR>
    <TD STYLE="vertical-align: bottom; border-bottom: black 1px solid; text-align: justify"><FONT STYLE="font-size: 10pt"><B>Bitcoin Exchanges included in the MarketVector<SUP>TM</SUP> Bitcoin Benchmark Rate as of November 30, 2023</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: justify">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="vertical-align: bottom; border-bottom: black 1px solid; text-align: justify"><FONT STYLE="font-size: 10pt"><B>Average
Daily Volume<BR>
(in thousands of USD)</B></FONT></TD>
    <TD STYLE="vertical-align: top; border-bottom: black 1px solid; text-align: justify">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; width: 75%; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; width: 1%; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; width: 1%; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; width: 18%; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; width: 1%; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 4%; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(229,255,255)">
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 10pt">Bitstamp</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: justify"><FONT STYLE="font-size: 10pt">$</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;49,581,876.74 </FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 10pt">Coinbase</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: justify"><FONT STYLE="font-size: 10pt">$</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">374,783,530.23</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(229,255,255)">
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 10pt">itBit</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: justify"><FONT STYLE="font-size: 10pt">$</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[&nbsp;&nbsp;&nbsp;] </FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 10pt">LMAX</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: justify"><FONT STYLE="font-size: 10pt">$</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;59,300,310.02 </FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(229,255,255)">
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 10pt">Kraken</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: justify"><FONT STYLE="font-size: 10pt">$</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;81,410,606.94 </FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD></TR>
</TABLE>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The market share for BTC/USD trading of the
five constituent exchanges over the past four calendar quarters is shown in the table below:</P>

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

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

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

<TABLE CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 98%; margin-left: 10pt">
<TR STYLE="background-color: black">
    <TD STYLE="width: 11%; padding: 1pt; text-align: justify; border-left: White 1px solid"><FONT STYLE="font-size: 10pt; color: white"><B>Period</B></FONT></TD>
    <TD STYLE="width: 12%; padding: 1pt; text-align: justify; border-bottom: Black 1px solid; border-left: White 1px solid; border-right: Black 1px solid"><FONT STYLE="font-size: 10pt; color: white">itBit</FONT></TD>
    <TD STYLE="width: 14%; padding: 1pt; text-align: justify; border-bottom: Black 1px solid; border-left: White 1px solid; border-right: Black 1px solid"><FONT STYLE="font-size: 10pt; color: white"><B>LMAX</B></FONT></TD>
    <TD STYLE="width: 20%; padding: 1pt; text-align: justify; border-bottom: Black 1px solid; border-left: White 1px solid; border-right: Black 1px solid"><FONT STYLE="font-size: 10pt; color: white"><B>Bitstamp</B></FONT></TD>
    <TD STYLE="width: 14%; padding: 1pt; text-align: justify; border-bottom: Black 1px solid; border-left: White 1px solid; border-right: Black 1px solid"><FONT STYLE="font-size: 10pt; color: white"><B>Coinbase</B></FONT></TD>
    <TD STYLE="width: 15%; padding: 1pt; text-align: justify; border-bottom: Black 1px solid; border-left: White 1px solid; border-right: Black 1px solid"><FONT STYLE="font-size: 10pt; color: white"><B>Kraken</B></FONT></TD>
    <TD STYLE="vertical-align: top; width: 14%; padding: 1pt; text-align: justify; border-bottom: Black 1px solid; border-left: White 1px solid; border-right: Black 1px solid"><FONT STYLE="font-size: 10pt; color: white"><B>Others</B></FONT></TD></TR>
<TR>
    <TD STYLE="padding: 1pt; background-color: black; text-align: justify"><FONT STYLE="font-size: 10pt; color: white"><B>2022 Q4</B></FONT></TD>
    <TD STYLE="padding: 1pt; text-align: justify; border-bottom: Black 1px solid; border-right: Black 1px solid"><FONT STYLE="font-size: 10pt">0.65%</FONT></TD>
    <TD STYLE="padding: 1pt; text-align: justify; border-bottom: Black 1px solid; border-right: Black 1px solid"><FONT STYLE="font-size: 10pt">7.87%</FONT></TD>
    <TD STYLE="padding: 1pt; text-align: justify; border-bottom: Black 1px solid; border-right: Black 1px solid"><FONT STYLE="font-size: 10pt">4.13%</FONT></TD>
    <TD STYLE="padding: 1pt; text-align: justify; border-bottom: Black 1px solid; border-right: Black 1px solid"><FONT STYLE="font-size: 10pt">53.53%</FONT></TD>
    <TD STYLE="padding: 1pt; text-align: justify; border-bottom: Black 1px solid; border-right: Black 1px solid"><FONT STYLE="font-size: 10pt">6.05%</FONT></TD>
    <TD STYLE="vertical-align: top; padding: 1pt; text-align: justify; border-bottom: Black 1px solid; border-right: Black 1px solid"><FONT STYLE="font-size: 10pt">25.94%</FONT></TD></TR>
<TR>
    <TD STYLE="padding: 1pt; background-color: black; text-align: justify"><FONT STYLE="font-size: 10pt; color: white"><B>2023 Q1</B></FONT></TD>
    <TD STYLE="padding: 1pt; text-align: justify; border-bottom: Black 1px solid; border-right: Black 1px solid"><FONT STYLE="font-size: 10pt">0.69%</FONT></TD>
    <TD STYLE="padding: 1pt; text-align: justify; border-bottom: Black 1px solid; border-right: Black 1px solid"><FONT STYLE="font-size: 10pt">10.23%</FONT></TD>
    <TD STYLE="padding: 1pt; text-align: justify; border-bottom: Black 1px solid; border-right: Black 1px solid"><FONT STYLE="font-size: 10pt">5.45%</FONT></TD>
    <TD STYLE="padding: 1pt; text-align: justify; border-bottom: Black 1px solid; border-right: Black 1px solid"><FONT STYLE="font-size: 10pt">46.64%</FONT></TD>
    <TD STYLE="padding: 1pt; text-align: justify; border-bottom: Black 1px solid; border-right: Black 1px solid"><FONT STYLE="font-size: 10pt">10.06%</FONT></TD>
    <TD STYLE="vertical-align: top; padding: 1pt; text-align: justify; border-bottom: Black 1px solid; border-right: Black 1px solid"><FONT STYLE="font-size: 10pt">25.75%</FONT></TD></TR>
<TR>
    <TD STYLE="padding: 1pt; background-color: black; text-align: justify"><FONT STYLE="font-size: 10pt; color: white"><B>2023 Q2</B></FONT></TD>
    <TD STYLE="padding: 1pt; text-align: justify; border-bottom: Black 1px solid; border-right: Black 1px solid"><FONT STYLE="font-size: 10pt">1.08%</FONT></TD>
    <TD STYLE="padding: 1pt; text-align: justify; border-bottom: Black 1px solid; border-right: Black 1px solid"><FONT STYLE="font-size: 10pt">11.85%</FONT></TD>
    <TD STYLE="padding: 1pt; text-align: justify; border-bottom: Black 1px solid; border-right: Black 1px solid"><FONT STYLE="font-size: 10pt">7.31%</FONT></TD>
    <TD STYLE="padding: 1pt; text-align: justify; border-bottom: Black 1px solid; border-right: Black 1px solid"><FONT STYLE="font-size: 10pt">44.69%</FONT></TD>
    <TD STYLE="padding: 1pt; text-align: justify; border-bottom: Black 1px solid; border-right: Black 1px solid"><FONT STYLE="font-size: 10pt">12.77%</FONT></TD>
    <TD STYLE="vertical-align: top; padding: 1pt; text-align: justify; border-bottom: Black 1px solid; border-right: Black 1px solid"><FONT STYLE="font-size: 10pt">20.87%</FONT></TD></TR>
<TR>
    <TD STYLE="padding: 1pt; background-color: black; text-align: justify"><FONT STYLE="font-size: 10pt; color: white"><B>2023 Q3</B></FONT></TD>
    <TD STYLE="padding: 1pt; text-align: justify; border-bottom: Black 1px solid; border-right: Black 1px solid"><FONT STYLE="font-size: 10pt">1.05%</FONT></TD>
    <TD STYLE="padding: 1pt; text-align: justify; border-bottom: Black 1px solid; border-right: Black 1px solid"><FONT STYLE="font-size: 10pt">9.94%</FONT></TD>
    <TD STYLE="padding: 1pt; text-align: justify; border-bottom: Black 1px solid; border-right: Black 1px solid"><FONT STYLE="font-size: 10pt">8.84%</FONT></TD>
    <TD STYLE="padding: 1pt; text-align: justify; border-bottom: Black 1px solid; border-right: Black 1px solid"><FONT STYLE="font-size: 10pt">56.82%</FONT></TD>
    <TD STYLE="padding: 1pt; text-align: justify; border-bottom: Black 1px solid; border-right: Black 1px solid"><FONT STYLE="font-size: 10pt">10.83%</FONT></TD>
    <TD STYLE="vertical-align: top; padding: 1pt; text-align: justify; border-bottom: Black 1px solid; border-right: Black 1px solid"><FONT STYLE="font-size: 10pt">10.64%</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </P>

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><B>&nbsp;</B></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Trust Structure</B></P>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">The Sponsor designed the
Trust in what it believes is a straight-forward structure to provide exposure to bitcoin. By utilizing the MarketVector<SUP>TM
</SUP>Bitcoin Benchmark Rate, the Trust draws prices for its Shares off of what is in effect a &ldquo;consolidated tape&rdquo;
for bitcoin, similar to the consolidated tapes or &ldquo;ticker tapes&rdquo; used by major stock exchanges to report trades and
quotes. The term &ldquo;consolidated&rdquo; refers to the fact that securities, just like bitcoin, often trade on more than one
exchange, and a consolidated tape reports not only a security&rsquo;s trading activity on its primary listing exchange but the
trading activity on all or substantially all exchanges on which it is traded. However, the global bitcoin market is not subject
to comparable regulatory guardrails as regulated securities markets. See &ldquo;Risk Factors&mdash;Due to the unregulated nature
and lack of transparency surrounding the operations of bitcoin exchanges, they may experience fraud, manipulation, security failures
or operational problems, which may adversely affect the value of bitcoin and, consequently, the value of the Shares.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">The use of the MarketVector<SUP>TM</SUP>
Bitcoin Benchmark Rate is designed to eliminate from the NAV calculation pursuant to which the Trust prices its Shares those bitcoin
exchanges with indicia of suspicious, fake, or non-economic volume. However, there is no guarantee that such measures will be effective.
See &ldquo;Risk Factors&mdash; The MarketVector<SUP>TM</SUP> Bitcoin Benchmark Rate may be affected by manipulative or fraudulent
practices in the global bitcoin market or at constituent exchanges.&rdquo; In addition, the use of five bitcoin exchanges is designed
to mitigate the potential for idiosyncratic exchange risk, as the failure of any individual bitcoin exchange should not materially
impact pricing for the Trust. Moreover, any attempt to manipulate the NAV would require a substantial amount of capital distributed
across a majority of the five exchanges, and potentially coordinated activity across those exchanges, making it more difficult
to conduct, profit from, or avoid the detection of market manipulation. The Sponsor believes that this is especially true in a
well-arbitraged and distributed market, as MarketVector<SUP>&nbsp;</SUP>believes the real bitcoin market to be.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">In addition to the above
safeguards, the MarketVector<SUP>TM</SUP> Bitcoin Benchmark Rate is calculated over twenty three-minute intervals pursuant to a
methodology referred to as an equal-weighted average of the volume-weighted median price. The use of twenty consecutive three-minute
segments over a sixty-minute period means a malicious actor would need to sustain efforts to manipulate the market over an extended
period of time, or would need to replicate efforts multiple times, potentially triggering review from the exchange or regulators,
or both. The use of a &ldquo;median&rdquo; price by its nature limits the ability of outlier prices that may have been caused by
attempts to manipulate the price on a particular exchange, to impact the NAV, as it systematically excludes those prices from the
NAV calculation.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Description of the MarketVector<SUP>TM</SUP>
Bitcoin Benchmark Rate Construction and Maintenance</B></P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">The Sponsor has entered
into a licensing agreement with MarketVector to use the MarketVector<SUP>TM</SUP> Bitcoin Benchmark Rate. The Trust is entitled
to use the MarketVector<SUP>TM </SUP>Bitcoin Benchmark Rate pursuant to a sub-licensing arrangement with the Sponsor. The MarketVector<SUP>TM
</SUP>Bitcoin Benchmark Rate is a U.S. dollar-denominated composite reference rate for the price of bitcoin. The Index is calculated
daily between 00:00 and 24:00 (CET) and the Index values are disseminated every 15 seconds to data vendors. The Index is disseminated
in USD and the closing and intraday value is calculated over twenty three-minute intervals pursuant to a methodology referred to
as an equal-weighted average of the volume-weighted median price. The intra-day data available in the MarketVector<SUP>TM</SUP>
Bitcoin Benchmark Rate is published once every 15 seconds throughout each trading day. The intra-day levels and closing levels
of the MarketVector<SUP>TM </SUP>Bitcoin Benchmark Rate are published by MarketVector. The current exchange composition of the
MarketVector<SUP>TM</SUP> Bitcoin Benchmark Rate is Bitstamp, Coinbase, ItBit, LMAX and Kraken. The MarketVector<SUP>TM</SUP> Bitcoin
Benchmark Rate index was launched on June&nbsp;2,&nbsp;2020.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&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: 18pt">&nbsp;</TD>
    <TD STYLE="width: 18pt"><FONT STYLE="font: 10pt Symbol">&#183;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">Coinbase: 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.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font: 10pt Symbol">&#183;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">Bitstamp: 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.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font: 10pt Symbol">&#183;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">ItBit: 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..</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font: 10pt Symbol">&#183;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">Kraken: A U.S.-based exchange that is registered as an MSB with FinCEN in various U.S. states. Kraken is registered with the FCA 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 those from the Japan Financial Services Agency (&ldquo;JFSA&rdquo;) and the Canadian Securities Administrators (&ldquo;CSA&rdquo;).</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font: 10pt Symbol">&#183;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">LMAX Digital: A Gibraltar based exchange regulated by the Gibraltar Financial Services Commission (&ldquo;GFSC&rdquo;) 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.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 38.25pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">The underlying exchanges
are sourced from the industry leading CCData Centralized Exchange Benchmark review report. CCData Centralized Exchange Benchmark
was established in 2019 as a tool designed to bring clarity to the digital asset exchange sector by providing a framework for assessing
risk and in turn bringing transparency and accountability to a complex and rapidly evolving</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">market. The CCData Centralized Exchange Benchmark
methodology utilizes a combination of qualitative and quantitative metrics to analyze a comprehensive data set, covering eight
categories of evaluation. The categories of evaluation include legal/regulation, KYC/transaction risk, data provision, security,
team/exchange, asset quality/diversity, market quality and negative events.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">The legal/regulation category
considers, among other inputs, an exchange&rsquo;s offering of some form of cryptocurrency insurance and whether the exchange is
registered as a money services business. The KYC/transaction risk category assesses an exchange&rsquo;s market surveillance system,
transaction protocols and KYC/AML procedures. Data provisions measure an exchange&rsquo;s quality of connectivity and data processing,
including its API average response time and order book availability, among others. The security category takes into account, among
others, an exchange&rsquo;s use of cold wallets, two-factor authentication policy, and encryption quality. The team/exchange category
gauges the experience of an exchange&rsquo;s senior leadership and funding sources, among others. Asset quality/diversity considerations
include the fundamental health and mix of digital assets available on each exchange. The market quality category includes, but
is not limited to, average spreads on exchange, volatility and volume correlation, and depth of market. Negative events impose
a 5% penalty factor in determining the overall ranking of an exchange and captures negative events such as a flash crash, legal
matters, or a large breach in data privacy.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">The CCData Centralized Exchange
Benchmark review report provides a framework for assessing risk of each exchange and brings transparency and accountability to
a rapidly evolving market and industry. Based on the CCData Centralized Exchange Benchmark, MarketVector<SUP>&nbsp;</SUP>initially
selects the top five exchanges by rank for inclusion in the MarketVector<SUP>TM</SUP> Bitcoin Benchmark Rate. If an eligible non-component
exchange is in the top five by rank for two consecutive semi-annual reviews, it replaces the lowest ranked component exchange.
If an eligible exchange is downgraded by two or more notches in a semi-annual review and is no longer in the top five by rank,
it is replaced by the highest ranked non-component exchange. Adjustments to exchange coverage are announced four business days
prior to the first business day of each of March and September at 23:00 CET. Once it has actual knowledge of material changes to
the component exchanges used to calculate the Index, the Trust will notify Shareholders in a prospectus supplement and a current
report on Form 8-K or in its annual or quarterly reports. The MarketVector<SUP>TM</SUP> Bitcoin Benchmark Rate is rebalanced at
16:00:00 GMT/BST on the last business day of each of February and August.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">The initial exchange composition
of the MarketVector Bitcoin Benchmark Rate at its June 2020 inception was Bitstamp, Coinbase, Gemini, itBit and Kraken. In April
2022, itBit was removed because the exchange dropped in the CCData Centralized Exchange Benchmark rankings. LMAX was added in its
place. In May 2023, Gemini was removed because the exchange dropped in the CCData Centralized Exchange Benchmark rankings and was
replaced by Bitfinex. In November 2023, Bitfinex was removed due to downgrades and a drop in its CCData Centralized Exchange Benchmark
ranking. Bitfinex was replaced by itBit. The current exchange composition of the MarketVector<SUP>TM</SUP> Bitcoin Benchmark Rate
is Bitstamp, Coinbase, ItBit, LMAX and Kraken</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">[As noted above, the MarketVectorTM
Bitcoin Benchmark Rate is disseminated in USD and the closing and intraday value is calculated over twenty three-minute intervals
pursuant to a methodology referred to as an equal-weighted average of the volume-weighted median price. In other words, MarketVectorTM
Bitcoin Benchmark Rate seeks to provide the average price that bitcoin has traded at during the past hour. This is calculated as
the average of the volume-weighted median price on the constituent exchanges of each of the twenty three-minute intervals, as displayed
below:</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">Volume-weighted median price
of bitcoin for each three minute period (20 total) / 20 = MarketVector Bitcoin Benchmark Rate price.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">When determining the volume-weighted
median price during a three minute period, the highest and lowest contributed prices from the five constituent exchanges are removed
and the volume-weight median is derived from the contributed prices of the other three exchanges. Using twenty consecutive three-minute
segments over a sixty-minute period means malicious actors would need to sustain efforts to manipulate the market over an extended
period of time, or would need to replicate efforts multiple times across exchanges, potentially triggering review. This extended
period also supports Authorized Participant activity by capturing volume over a longer time period, rather than forcing Authorized
Participants to mark an individual close or auction. The use of a median price reduces the ability of outlier prices to impact
the NAV, as it systematically excludes those prices from the NAV calculation. The use of a volume-weighted median (as opposed to
a traditional median) serves as an additional protection against attempts to manipulate the NAV by executing a large number of
low-dollar trades, because, any manipulation attempt would have to involve a majority of global spot bitcoin volume in a three-minute
window to have any influence on the NAV. As discussed herein, removing the highest and lowest prices further protects against attempts
to manipulate the NAV, requiring bad actors to act on multiple exchanges at once to have any ability to influence the price.]</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">VanEck Bitcoin Trust (the
&ldquo;Product&rdquo;) is not sponsored, endorsed, sold or promoted by MarketVector Indexes GmbH (&ldquo;Licensor&rdquo;) and any
of its affiliates. Licensor and any of its affiliates make no representation or warranty, express or implied, to the</P>

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


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">owners of the Product or
any member of the public regarding the advisability of investing in tokens generally or in the Product particularly or the ability
of the MarketVectorTM Bitcoin Benchmark Rate to track the performance of the digital assets market. Licensor&rsquo;s only relationship
to the Licensee is the licensing of certain service marks and trade names of Licensor and of the Index that is determined, composed
and calculated by Licensor without regard to the Licensee or the Product. Licensor has no obligation to take the needs of the Licensee
or the owners of the Product into consideration in determining, composing or calculating the Index. Licensor is not responsible
for and has not participated in the determination of the timing of, prices at, or quantities of the Product to be issued or in
the determination or calculation of the equation by which the Product is to be converted into cash. Licensor has no obligation
or liability in connection with the administration, marketing or trading of the Product.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">LICENSOR DOES NOT GUARANTEE
THE ACCURACY AND/OR THE COMPLETENESS OF THE MARKETVECTOR BITCOIN BENCHMARK RATE OR ANY DATA INCLUDED THEREIN AND LICENSOR AND ANY
OF ITS AFFILIATES SHALL HAVE NO LIABILITY FOR ANY ERRORS, OMISSIONS, OR INTERRUPTIONS THEREIN. LICENSOR AND ANY OF ITS AFFILIATES
MAKES NO WARRANTY, EXPRESS OR IMPLIED, AS TO RESULTS TO BE OBTAINED BY LICENSEE, OWNERS OF THE VANECK BITCOIN TRUST, OR ANY OTHER
PERSON OR ENTITY FROM THE USE OF THE MARKETVECTOR BITCOIN BENCHMARK RATE OR ANY DATA INCLUDED THEREIN. LICENSOR MAKES NO EXPRESS
OR IMPLIED WARRANTIES, AND EXPRESSLY DISCLAIMS ALL WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE WITH
RESPECT TO THE MARKETVECTOR BITCOIN BENCHMARK RATE OR ANY DATA INCLUDED THEREIN. WITHOUT LIMITING ANY OF THE FOREGOING, IN NO EVENT
SHALL LICENSOR AND ANY OF ITS AFFILIATES HAVE ANY LIABILITY FOR ANY SPECIAL, PUNITIVE, INDIRECT, OR CONSEQUENTIAL DAMAGES (INCLUDING
LOST PROFITS), EVEN IF NOTIFIED OF THE POSSIBILITY OF SUCH DAMAGES.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">The Product is not sponsored,
promoted, sold or supported in any other manner by CC Data Limited nor does CC Data Limited offer any express or implicit guarantee
or assurance either with regard to the results of using the Index and/or Index trade mark or the Index Price at any time or in
any other respect. The Index is calculated and published by CC Data Limited. CC Data Limited uses its best efforts to ensure that
the Index is calculated correctly. Irrespective of its obligations towards the Issuer, CC Data Limited has no obligation to point
out errors in the Index to third parties including but not limited to investors and/or financial intermediaries of the financial
instrument. Neither publication of the Index by CC Data Limited nor the licensing of the Index or Index trade mark for the purpose
of use in connection with the financial instrument constitutes a recommendation by CC Data Limited to invest capital in said financial
instrument nor does it in any way represent an assurance or opinion of CC Data Limited with regard to any investment in this financial
instrument. CC Data Limited is not responsible for fulfilling the legal requirements concerning the accuracy and completeness of
the financial instrument&rsquo;s prospectus.</P>

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


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 36pt"><FONT STYLE="text-transform: uppercase"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><A NAME="x6_c106800a006"></A>C<I>alculation of NAV and NAV per Share</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">The Trust&rsquo;s NAV will
be calculated based on the Trust&rsquo;s net asset holdings as reconciled to the Bitcoin Custodian&rsquo;s accounts on a market
approach, determined on a daily basis in accordance with the MarketVector<SUP>TM</SUP> Bitcoin Benchmark Rate price at 4:00 p.m.
Eastern time. The Sponsor believes that use of the MarketVector<SUP>TM</SUP> Bitcoin Benchmark Rate mitigates against idiosyncratic
exchange risk, as the failure of any individual exchange will not materially impact pricing for the Trust. It also allows the Administrator
to calculate the NAV in a manner that significantly deters manipulation.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">The Sponsor holds full discretion
to change either the index used for calculating NAV or the index provider subject to proper notification to shareholders (such
notification will be made via a prospectus supplement to the Registration Statement and/or a current report filed with the SEC
and will occur in advance of any such change). Shareholder approval is not required.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">As discussed, the fact that
there are multiple exchanges contributing prices to the MarketVector<SUP>TM</SUP> Bitcoin Benchmark Rate used to calculate NAV
makes manipulation more difficult in a well-arbitraged and fractured market, as a malicious actor would need to manipulate multiple
exchanges simultaneously to impact the NAV, or dramatically skew the historical distribution of volume between the various exchanges.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">In calculating the MarketVector<SUP>TM</SUP>
Bitcoin Benchmark Rate, the methodology captures trade prices and sizes from exchanges and examines twenty three-minute periods
leading up to 4:00 p.m. Eastern time to produce the closing value. It then calculates an equal-weighted average of the volume-weighted
median price of these twenty three-minute periods, removing the highest and lowest contributed prices. Using twenty consecutive
three-minute segments over a sixty-minute period means malicious actors would need to sustain efforts to manipulate the market
over an extended period of time, or would need to replicate efforts multiple times across exchanges, potentially triggering review.
This extended period also supports Authorized Participant activity by capturing volume over a longer time period, rather than forcing
Authorized Participants to mark an individual close or auction. The use of a median price eliminates the ability of outlier prices
to impact the NAV, as it systematically excludes those prices from the NAV calculation. The use of a volume-weighted median (as
opposed to a traditional median) protects against attempts to manipulate the NAV by executing a large number of low-dollar trades,
because, any manipulation attempt would have to involve a majority of global spot bitcoin volume in a three-minute window to have
any influence on the NAV. As discussed, trimming the highest and lowest prices further protects against attempts to manipulate
the NAV, requiring bad actors to act on multiple exchanges at once to have any ability to influence the price. Additional information
about the MarketVector<SUP>TM</SUP> Bitcoin Benchmark Rate, including its methodology and calculation formula, are available the
MarketVector website[, which is accessible at www.marketvector.com].</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">The Trust&rsquo;s NAV per
Share is calculated by:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&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: 36pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; width: 36pt; text-align: justify"><FONT STYLE="font: 10pt Symbol">&#183;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: justify"><FONT STYLE="font-size: 10pt">taking the current market value of its total assets;</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: justify">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: justify"><FONT STYLE="font: 10pt Symbol">&#183;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: justify"><FONT STYLE="font-size: 10pt">subtracting any liabilities; and</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: justify">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: justify"><FONT STYLE="font: 10pt Symbol">&#183;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: justify"><FONT STYLE="font-size: 10pt">dividing that total by the total number of outstanding Shares.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">The Administrator calculates
the NAV of the Trust once each Exchange trading day. The NAV for a normal trading day will be released after 4:00 p.m. Eastern
time. Trading during the core trading session on the Exchange typically closes at 4:00 p.m. Eastern time. However, NAVs are not
officially struck until later in the day (often by 5:30 p.m. Eastern time and almost always by 8:00 p.m. Eastern time). The pause
between 4:00 p.m. Eastern time and 5:30 p.m. Eastern time (or later) provides an opportunity to detect, flag, investigate, and
correct unusual pricing should it occur. The Sponsor will monitor for significant events related to crypto assets that may impact
the value of bitcoin and will determine in good faith, and in accordance with its valuation policies and procedures, whether to
fair value the Trust&rsquo;s bitcoin on a given day based (<I>e.g.</I>, if the MarketVector<SUP>TM</SUP> Bitcoin Benchmark Rate
is not available the Sponsor). In certain circumstances, the Sponsor will determine whether to fair value the Trust&rsquo;s bitcoin
on a given day on whether certain pre-determined criteria have been met. For example, if the MarketVector<SUP>TM</SUP> Bitcoin
Benchmark Rate deviates by more than a pre-determined amount from an alternate benchmark available to the Sponsor, then the Sponsor
may determine to utilize the alternate benchmark. The Sponsor may also fair value the Trust&rsquo;s bitcoin using observed market
transactions from various exchanges, including some or all of the exchanges included in the Benchmark Rate. The Sponsor may also
fair value the Trust&rsquo;s bitcoin using a combination of inputs in certain situations (e.g., using observed market transactions,
OTC quotations from brokers, etc.), including but not limited to potential &ldquo;forks&rdquo; and airdrops.</P>

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


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">Accordingly, the NAV of
the Trust may reflect the fair value of bitcoin rather than the bitcoin market prices on certain exchanges at 4:00 p.m. Eastern
time. Fair value pricing involves subjective judgments and it is possible that a fair value determination for bitcoin or other
assets is materially different than the value that could be realized upon the sale of such bitcoin or asset. In addition, fair
value pricing could result in a difference between the prices used to calculate the Fund&rsquo;s NAV and the prices used by the
MarketVector<SUP>TM</SUP> Bitcoin Benchmark Rate. The Sponsor, in conjunction with the Administrator, will work in good faith to
determine the fair value and implement the correct of the Trust&rsquo;s NAV. In addition, in order to provide updated information
relating to the Trust for use by Shareholders and market professionals, ICE Data Indices, LLC will calculate and disseminate throughout
the core trading session on each trading day an updated intraday indicative value (&ldquo;IIV&rdquo;). The IIV will be calculated
by taking creation unit holdings and updating that value throughout the trading day to reflect changes in the price of bitcoin;
this value is then divided by the numbers of shares per creation unit in order to calculate an IIV on a &ldquo;per share&rdquo;
basis.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">The IIV disseminated during
the Exchange core trading session hours should not be viewed as an actual real time update of the NAV, because NAV per Share 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 IIV will be disseminated on a per Share basis every 15 seconds during regular Exchange core trading session hours of 9:30 a.m.
Eastern time to 4:00 p.m. Eastern time. ICE Data Indices, LLC will disseminate the IIV value through the facilities of CTA/CQ High
Speed Lines. In addition, the indicative fund value will be published on the Exchange&rsquo;s website and will be available through
on-line information services such as Bloomberg and Reuters. The IIV may differ from the NAV due to the differences in the time
window of trades used to calculate each price (the NAV uses a sixty-minute window, whereas the IIV draws prices from the last trade
on each exchange in an effort to produce a relevant, real-time price). The Sponsor does not believe this will cause confusion in
the marketplace, as Authorized Participants are the only Shareholders who interact with the NAV and the Sponsor will communicate
its NAV calculation methodology clearly.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">There are many instances
in the market today where the IIV and the NAV of an ETF are subtly different, whether due to the calculation methodology, market
hours overlap or other factors. The Sponsor has seen limited or no negative impact on trading, liquidity or other factors for exchange-traded
funds in this situation. The Sponsor believes that the IIV will closely track the globally integrated bitcoin price as reflected
on the contributing real bitcoin exchanges.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">Dissemination of the IIV
provides additional information that is not otherwise available to the public and is useful to Shareholders and market professionals
in connection with the trading of the Trust&rsquo;s Shares on the Exchange. Shareholders and market professionals will be able
throughout the trading day to compare the market price of the Trust and the IIV. If the market price of the Trust&rsquo;s Shares
diverges significantly from the IIV, 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 IIV, a market professional could buy the Trust&rsquo;s 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 IIV and thus can be beneficial to all market participants.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">The Trust does not expect
that price differentials for bitcoin across exchanges would have a meaningful impact on this arbitrage mechanism. Furthermore,
the Trust does not expect that the closure of any single one exchange would meaningfully impact the arbitrage mechanism because
Authorized Participants typically source underlying spot bitcoin liquidity from multiple exchanges. The Trust acknowledges, however,
that this arbitrage mechanism could potentially be adversely impacted if halts in the trading of spot bitcoin were to occur across
multiple exchanges, whether due to breaches or otherwise. See &ldquo;Risk Factors-- Bitcoin spot exchanges are not subject to same
regulatory oversight as traditional equity exchanges, which could negatively impact the ability of Authorized Participants to implement
arbitrage mechanism&rdquo; for additional information on these risks.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">The Sponsor reserves the
right to adjust the Share price of the Trust in the future to maintain convenient trading ranges for Shareholders. 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: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt"><I>Calculation of Principal
Market NAV and Principal Market NAV per Share</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">In addition to calculating
NAV and NAV per Share, for purposes of the Trust&rsquo;s financial statements, the Trust determines the Principal Market NAV and
Principal Market NAV per Share on each valuation date for such financial statements. The determination of the Principal Market
NAV and Principal Market NAV per Share is identical to the calculation of NAV and NAV per Share, respectively, except that the
value of bitcoin is determined using the fair value of bitcoin based on the price in the bitcoin market that the Trust considers
its &ldquo;principal market&rdquo; as of 4:00 p.m., New York time, on the valuation date, rather than using the Index.</P>


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    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">The Trust has adopted a
valuation policy, which provides for the procedure for valuing the Trust&rsquo;s assets. The policy also sets forth the procedures
to determine the principal market (or in the absence of a principal market, the most advantageous market) for purposes of determining
the Principal Market NAV and Principal Market NAV per Share in accordance with Financial Accounting Standards Board (&ldquo;FASB&rdquo;)
Accounting Standards Codification (&ldquo;ASC&rdquo;) 820-10, which outlines the application of fair value accounting. Under ASC
820-10, fair value for bitcoin is determined to be the price that would be received in a current sale, assuming an orderly transaction
between market participants on the valuation date in the 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. Under its valuation policy, the Trust determines
its principal market (or in the absence of a principal market the most advantageous market) annually and conducts an analysis at
least on a quarterly basis to determine whether there have occurred any changes in bitcoin markets and its operations that would
require a change in the Trust&rsquo;s determination of its principal market.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 36pt; text-align: left">The Trust identifies and determines the bitcoin
principal market (or in the absence of a principal market, the most advantageous market) for GAAP purposes consistent with the
application of fair value measurement framework in FASB ASC 820-10.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 36pt">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.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 36pt">Under ASC 820-10, a principal market is the market
with the greatest volume and activity level for the asset or liability. The determination of the principal market will be based
on the market with the greatest volume and level of activity that can be accessed.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 36pt">The Trust only receives bitcoin from the Authorized
Participant or previously onboard trading counterparties and does not itself transact on any Digital Asset Markets (as defined
below). The Authorized Participant or Liquidity Provider transacts in an Exchange Market, Brokered Market, a Dealer Market, and
Principal-to-Principal Markets, each as defined in ASC 820-10-35-36A (collectively, &ldquo;Digital Asset Markets&rdquo;).</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 36pt">In determining which of the eligible Digital
Asset Markets is the Trust&rsquo;s principal market, the Trust obtains reliable volume and level of activity information and reviews
these criteria in the following order:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 36pt">First, the Trust reviews a list of Digital Asset
Markets and scopes in the markets that the Trust reasonably believes are operating in compliance with applicable laws and regulations
and those that are accessible to the Trust and the Authorized Participant.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 36pt">Second, the Trust sorts the remaining Digital
Asset Markets from high to low based on volume and level of activity of bitcoin traded on each Digital Asset Market.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 36pt">Third, the Trust then reviews intra-day pricing
fluctuations and the degree of variances in price on Digital Asset Markets to identify any material notable variances that may
impact the volume or price information of a particular Digital Asset Market.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 36pt">Fourth, the Trust then selects a Digital Asset
Market as its principal market based on the highest market-based volume, level of activity, and price stability in comparison to
the other Digital Asset Markets on the list. 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.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 36pt">As a result of the analysis, the Trust will select
an Exchange Market as the Trust&rsquo;s principal market. Based on the Trust&rsquo;s initial assessment, the NAV and NAV per Share
will be calculated using the fair value of bitcoin based on the price provided by this Exchange, as of 4:00 p.m., ET on the measurement
date for GAAP purposes.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 36pt">The Trust will update its Principal Market analysis
periodically and as needed to the extent that events have occurred, or activities have changed in a manner that could change the
Trust&rsquo;s determination of the principal market.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">The Sponsor on behalf of
the Trust will determine in its sole discretion the valuation sources and policies used to prepare the Trust&rsquo;s financial
statements in accordance with GAAP.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">The cost basis of the investment
in bitcoin recorded by the Trust for financial reporting purposes is the fair value of bitcoin at the time of transfer. The cost
basis recorded by the Trust may differ from proceeds collected by the Authorized Participant from the sale of the corresponding
Shares to investors.</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B><A NAME="x6_c106800a007"></A>ADDITIONAL
INFORMATION ABOUT THE TRUST</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 36pt"><FONT STYLE="text-transform: uppercase"><B>&nbsp;</B></FONT></P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">The Trust is a Delaware
statutory trust, formed on December 17, 2020 pursuant to the Delaware Statutory Trust Act. The Trust continuously issues common
shares representing fractional undivided beneficial interest in and 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 [&nbsp;], 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 December 8, 2020.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">The Trust is not registered
as an investment company under the 1940 Act and currently is not required to register under the 1940 Act, and the Sponsor is not
registered as an investment adviser and currently is not required to register under the Investment Advisers Act in connection with
its activities on behalf of the Trust. The Trust will not hold or trade in commodity futures contracts regulated by the Commodity
Exchange Act (&ldquo;CEA&rdquo;), as administered by the Commodity Futures Trading Commission (the &ldquo;CFTC&rdquo;). The Trust
is not a commodity pool for purposes of the CEA and neither the Sponsor, nor the Trustee is subject to regulation as a commodity
pool operator or a commodity trading adviser in connection with their activity on behalf of the Trust.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">The Trust has no operating
history. The Trust and the Sponsor face competition with respect to the creation of competing products, such as exchange-traded
products offering exposure to the spot bitcoin market or other digital assets. There can be no assurance that the Trust will grow
to or maintain an economically viable size. While there are no predetermined criteria for determining whether the Trust has reached
an economically viable size, the Sponsor will monitor the Trust&rsquo;s assets and liabilities, average daily trading volume of
the Shares and other factors on an ongoing basis. If the Trust is unable to reach or maintain an economically viable size, trading
in Shares may occur at wider spreads than other competitor products, which could adversely affect the Shareholders. Additionally,
Shareholders may be subject to a higher expense ratio than expected if the Trust incurred any operating expenses that are not borne
by the Sponsor. There is no guarantee that the Sponsor will obtain or maintain a commercial advantage relative to competitors offering
similar products. Whether or not the Trust is successful in achieving its intended scale may be impacted by a range of factors,
such as the Trust&rsquo;s timing in entering the market and its fee structure relative to those of competitive products.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">The number of outstanding
Shares is expected to increase and decrease from time to time as a result of the creation and redemption of Creation Baskets. The
creation and redemption of Creation Baskets requires the delivery to the Trust or the distribution by the Trust of the amount of
bitcoin represented by the NAV of the Creation Baskets being created or redeemed. The total amount of bitcoin required for the
creation of Creation Baskets will be based on the combined net assets represented by the number of Creation Baskets being created
or redeemed.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">The Trust has no fixed termination
date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Trust will pay the Sponsor a unified fee
of [ ]. The Sponsor Fee is paid by the Trust to the Sponsor as compensation for services performed under the Trust Agreement. The
Administrator will make its determination regarding the Sponsor Fee in respect of each day by reference to the Trust&rsquo;s NAV
as of that day. The Sponsor Fee will be accrue in U.S. dollars daily and be payable in U.S. dollars or bitcoin monthly in arrears.
The Administrator will calculate the Sponsor Fee on a daily basis by applying a [ ]% 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 MarketVector<SUP>TM</SUP>
Bitcoin Benchmark Rate. The Sponsor has agreed to pay all operating expenses (except for litigation expenses and other extraordinary
expenses) out of the Sponsor Fee.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">As partial consideration
for receipt of the Sponsor Fee, the Sponsor shall assume and pay all fees and other expenses incurred by the Trust in the ordinary
course of its affairs, excluding taxes, but including (i) marketing-related expenses, (ii) fees to the Administrator, if any, (iii)
fees to the Bitcoin Custodian, (iv) fees to the Transfer Agent, (v) fees to the Trustee, (vi) the fees and expenses related to
any future listing, trading or quotation of the Shares on any listing exchange or quotation system (including legal, marketing
and audit fees and expenses), (vii) ordinary course legal fees and expenses but not litigation-related expenses, (viii) audit fees,
(ix) regulatory fees, including if applicable any fees relating to the registration of the Shares under the Securities Act or Exchange
Act, (x) printing and mailing costs; (xi) costs of maintaining the Trust&rsquo;s website and (xii) applicable license fees (each,
a &ldquo;Sponsor-paid Expense&rdquo; and together, the &ldquo;Sponsor-paid Expenses&rdquo;), provided that any expense that qualifies
as an Additional Trust Expense will be deemed to be an Additional Trust Expense and not a Sponsor-paid Expense</P>

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


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 36pt">The Sponsor will not, however, assume certain
extraordinary, non-recurring expenses that are not Sponsor-paid Expenses, including, but not limited to, taxes and governmental
charges, 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 interests of Shareholders, any indemnification of the Bitcoin Custodian, Administrator or
other agents, service providers or counterparties of the Trust, the fees and expenses related to the listing, and extraordinary
legal fees and expenses, including any legal fees and expenses incurred in connection with litigation, regulatory enforcement or
investigation matters. Certain of the Sponsor-paid Expenses, such as ordinary course legal fees and expenses, are capped. In the
Sponsor&rsquo;s sole discretion, all or any portion of a Sponsor-paid Expense may be redesignated as an Additional Trust Expense.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 36pt">After the payment of the Sponsor Fee to the Sponsor,
the Sponsor may elect to convert some or all of the Sponsor Fee into cash by selling this bitcoin at market prices, in the Sponsor&rsquo;s
sole discretion. Due to the variance in market prices for bitcoin, the rate at which the Sponsor converts bitcoin to cash may differ
from the rate at which the Sponsor Fee was initially paid in bitcoin.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">The Bitcoin Custodian will
assume the transfer fees associated with the transfer of bitcoin to the Sponsor with respect to the Sponsor Fee, and any further
expenses associated with such transfer will be assumed by the Sponsor. The Trust shall not be responsible for any fees and expenses
incurred by the Sponsor to convert bitcoin received in payment of the Sponsor Fee into cash.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">The Sponsor from time to
time will sell bitcoin, which may be facilitated by the Bitcoin Custodian, in such quantities as may be necessary to permit the
payment of Trust expenses and liabilities not assumed by the Sponsor. The Sponsor is authorized to sell bitcoin, which may be facilitated
by the Bitcoin Custodian, at such times and in the smallest amounts required to permit such payments as they become due, it being
the intention to avoid or minimize the Trust&rsquo;s holdings of assets other than bitcoin. Accordingly, the amount of bitcoin
to be sold may vary from time to time depending on the level of the Trust&rsquo;s expenses and liabilities and the market price
of bitcoin.</P>

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">The Trust shall be dissolved
at any time upon the happening of any of the following events:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&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: 36pt">&nbsp;</TD>
    <TD STYLE="width: 36pt"><FONT STYLE="font: 10pt Symbol">&#183;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">a U.S. federal or state regulator requires the Trust to shut down or forces the Trust to liquidate its bitcoins or seizes, impounds or otherwise restricts access to the property of the Trust;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-size: 12pt">&nbsp;</TD>
    <TD STYLE="font-size: 12pt">&nbsp;</TD>
    <TD STYLE="font-size: 12pt; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font: 10pt Symbol">&#183;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">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 net asset value of the Trust;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font: 10pt Symbol">&#183;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">any ongoing event exists that either prevents the Trust from converting or makes impractical the Trust&rsquo;s reasonable efforts to convert bitcoins to U.S. Dollars; or</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font: 10pt Symbol">&#183;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">a certificate of dissolution or revocation of the Sponsor&rsquo;s charter is filed (and ninety (90) days have passed after the date of notice to the Sponsor of revocation without a reinstatement of the Sponsor&rsquo;s charter) or the withdrawal, removal, adjudication or admission of bankruptcy or insolvency of the Sponsor (each of the foregoing events an &ldquo;Event of Withdrawal&rdquo;) has occurred unless (i) at the time there is at least one remaining Sponsor or (ii) within ninety (90) days of such Event of Withdrawal, the Trustee agrees in writing to continue the affairs of the Trust and to select, effective as of the date of such event, one or more successor Sponsors.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2"><FONT STYLE="font-size: 10pt">The Sponsor may, in its sole discretion, dissolve the Trust if any of the following events occur:</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font: 10pt Symbol">&#183;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Shares are delisted from the Exchange and are not approved for listing on another national securities exchange within five business days of their delisting;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font: 10pt Symbol">&#183;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">the SEC determines that the Trust is an investment company under the 1940 Act;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font: 10pt Symbol">&#183;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">the CFTC determines that the Trust is a commodity pool under the Commodity Exchange Act;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font: 10pt Symbol">&#183;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">the Trust is determined to be a &ldquo;money service business&rdquo; under the regulations promulgated by FinCEN under the authority of the US Bank Secrecy Act and is required to comply with certain FinCEN regulations thereunder;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font: 10pt Symbol">&#183;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">the Trust is required to obtain a license or make a registration under any state law regulating money transmitters, money services businesses, providers of prepaid or stored value or similar entities, or virtual currency businesses;</FONT></TD></TR>
</TABLE>

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<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: 36pt">&nbsp;</TD>
    <TD STYLE="width: 36pt"><FONT STYLE="font: 10pt Symbol">&#183;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">the Trust becomes insolvent or bankrupt;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font: 10pt Symbol">&#183;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">the Bitcoin Custodian resigns or is removed without replacement;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font: 10pt Symbol">&#183;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">all of the Trust&rsquo;s bitcoin are sold;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font: 10pt Symbol">&#183;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">the Sponsor determines that the property of the Trust in relation to the expenses of the Trust makes it unreasonable or imprudent to continue the affairs of the Trust;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font: 10pt Symbol">&#183;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">the Sponsor receives notice from the IRS or from counsel for the Trust or the Sponsor that the Trust fails to qualify for treatment, or will not be treated, as a grantor trust under the Internal Revenue Code of 1986, as amended (the &ldquo;Code&rdquo;);</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font: 10pt Symbol">&#183;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">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; or</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font: 10pt Symbol">&#183;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">the Trustee notifies the Sponsor of the Trustee&rsquo;s election to resign and the Sponsor does not appoint a successor trustee within one hundred and eighty (180) days.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">In addition, the Trust may
be dissolved if the Sponsor determines, in its sole discretion, that it is desirable or advisable for any reason to discontinue
the affairs of the Trust. In respect of termination events that rely on Sponsor determinations to terminate the Trust (e.g., if
the SEC determines that the Trust is an investment company under the 1940 Act; the CFTC determines that the Trust is a commodity
pool under the CEA; 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 income 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: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">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
in interest of the beneficial owners of the Trust may propose and approve) shall take full charge of the property of the Trust.
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 the 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 Delaware
Statutory Trust Act, the affairs of the Trust shall be wound up and all assets owned by the Trust shall be liquidated as promptly
as is consistent with obtaining the fair value thereof, and the proceeds therefrom shall be applied and distributed in the following
order of priority: (a) to the expenses of liquidation and termination and to creditors, including registered owners and beneficial
owners of the Trust who are creditors, to the extent otherwise permitted by law, in satisfaction of liabilities of the Trust (whether
by payment or the making of reasonable provision for payment thereof) other than liabilities for distributions to registered owners
of the Trust, and (b) to the beneficial owners of the Trust pro rata in accordance with their respective percentage interests of
the property of the Trust. [The proceeds of the liquidation of the Trust&rsquo;s assets are expected to be distributed in cash.
Shareholders are not entitled to any of the Trust&rsquo;s underlying bitcoin holdings upon the dissolution of the Trust. The Sponsor
(or in the event there is no Sponsor, the Liquidating Trustee), on behalf of the Trust, would expect to sell the Trust&rsquo;s
bitcoin through the same processes and procedures as transactions made to pay the Sponsor Fee (or other expenses and/or liabilities)
or the meet redemption orders. See &ldquo;Creation and Redemption of Shares&rdquo; for more information.]</P>

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


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">Following the dissolution
and 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 in writing to execute and cause such certificate of cancellation of the Certificate of Trust
to be filed in accordance with the Delaware Statutory Trust Act 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.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">The Trustee and the Sponsor
may amend any provision of the Trust Agreement without the consent of any other person, including any registered owner or beneficial
owner of the Trust, provided that any amendment that imposes or increases any fees or charges (other than taxes and other governmental
charges, registration fees or other such expenses), or that otherwise prejudices any substantial existing right of the registered
owners or the beneficial owners of the Trust, will not become effective as to outstanding Shares until 30 days after notice of
such amendment is given to the registered owners of the Trust. Notwithstanding the foregoing, the Sponsor shall have the right
to increase or decrease the amount of the Sponsor Fee (i) upon three (3) business days&rsquo; prior notice of the increase or decrease
being posted on the website of the Trust and (ii) upon three (3) business days&rsquo; prior written notice of the increase or decrease
being given to the Trustee. Every registered owner or beneficial owner of the Trust, at the time any amendment so becomes effective,
shall 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.</P>

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    <!-- Field: /Page -->


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B><A NAME="x6_c106800a008"></A>THE
TRUST&rsquo;S SERVICE PROVIDERS</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 36pt"><FONT STYLE="text-transform: uppercase"><B>&nbsp;</B></FONT></P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">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 United States and the listing of Shares on the Exchange.
The Sponsor will develop a marketing plan for the Trust, will prepare marketing materials regarding the Shares of the Trust, and
will exercise the marketing plan of the Trust on an ongoing basis. The Sponsor has agreed to pay all operating expenses (except
for litigation expenses and other extraordinary expenses) out of the Sponsor&rsquo;s unified fee.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">The Sponsor is a wholly-owned
subsidiary of VanEck. VanEck acts as adviser or sub-adviser to exchange-traded funds, mutual funds, other pooled investment vehicles
and separate accounts. VanEck has been wholly owned by members of the van Eck family since its founding in 1955 and its shares
are held by its Chief Executive Officer, Jan van Eck, and his family. See &ldquo;Management; Voting by Shareholders&rdquo; for
a discussion of Mr. van Eck&rsquo;s biography and positions with the Sponsor.</P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">VanEck and its subsidiaries
have considerable experience issuing and operating exchange-traded products, including three investment companies registered under
the Investment Company Act of 1940, that provide exposure to digital assets and digital asset companies (<I>i.e.</I>, the equity
securities of companies primarily engaged in the digital asset industry). As of November 30, 2023, VanEck and its affiliates oversee
approximately [$620 million] in assets under management across over 16 digital asset-related exchange-traded products across various
jurisdiction. Although the Sponsor is a relatively new entity within the broader structure of VanEck, the Sponsor utilizes a similar
management team that VanEck has used in issuing and operating these exchange-traded products.</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">The principal office of
the Sponsor is:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 36pt">VanEck Digital Assets, LLC<BR>
666 Third Avenue, 9<SUP>th</SUP> Floor<BR>
New York, NY 10017</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">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: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B><I>General Duty of Care of Trustee</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">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: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B><I>Resignation, Discharge or Removal of
Trustee; Successor Trustees</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">The Trustee may resign upon
at least 60 days&rsquo; prior written notice to the Sponsor; provided, however, that such resignation shall not be effective until
such time as a successor Trustee has accepted such appointment. The Sponsor may remove the Trustee at any time upon 60 days&rsquo;
prior written notice to the Trustee; provided, however, that such removal shall not be effective until such time as a successor
Trustee has accepted such appointment.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">Upon the resignation or
removal of the Trustee, the Sponsor shall appoint a successor Trustee. If no successor Trustee shall have been appointed and shall
have accepted such appointment within 60 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. Any successor Trustee appointed pursuant to the
Trust Agreement shall be eligible to act in such capacity in accordance with this Trust Agreement and, following compliance with
the Trust Agreement, shall become fully vested with the rights, powers, duties and obligations of its predecessor under the Trust
Agreement, with like effect as if originally named as Trustee. Any such successor Trustee shall notify the Trustee of its appointment
by providing a written instrument to the Trustee. At such time the Trustee shall be discharged of its duties herein. Any corporation
into which the Trustee may be merged or converted or with which it may be consolidated, or any corporation resulting from any merger,
conversion or consolidation to which such Trustee shall be a party, or any corporation to which substantially all the corporate
trust business of the Trustee may be transferred, shall, subject to the preceding sentence, be the Trustee under the Trust Agreement
without further act.</P>





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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 10pt"><P STYLE="margin: 0pt"><PAGE></PAGE></P></DIV>
    <!-- Field: /Page -->
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>The Administrator</B></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">Under the Trust&rsquo;s
Administration Agreement and a separate cash custodian agreement, the Administrator provides certain administrative 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. The Administrator will also facilitate the transfer
of bitcoin required for the operation of the Trust. Under the cash custodian agreement, State Street may act as custodian for the
Trust&rsquo;s non-bitcoin assets, if any, and as bank for the Trust&rsquo;s cash.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0"> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">Under the cash custodian
agreement between State Street and the Trust (the &ldquo;Cash Custody Agreement&rdquo;), State Street may act as custodian for
the Trust&rsquo;s non-bitcoin assets, if any, and as custodian for the Trust&rsquo;s cash (in such capacity, the &ldquo;Cash Custodian&rdquo;).
The Cash Custodian has agreed to, among other things, open and maintain a separate deposit account of the Trust, to determine the
amount of bitcoin and/or cash required for an issuance or redemption of shares in a Creation Basket and to release and deliver
non-bitcoin assets and pay out cash.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">The Cash Custodian has agreed
to provide its services under the Cash Custody Agreement for an initial term of one year with an automatic renewal of successive
one year terms unless earlier terminated pursuant to the Cash Custody Agreement. Either the Cash Custodian or the Trust may terminate
the Cash Custody Agreement for certain material breaches of the Cash Custody Agreement, for consistent breaches of established
parameters in written service level agreements or for terminations as may be required or occasioned by law.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">The fees of the Cash Custodian
and its counsel are paid by the Trust. The Cash Custodian is indemnified by the Trust under the terms of the Cash Custody Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">Under the Trust Administration
Agreement, the Administrator has agreed to prepare the Trust&rsquo;s financial reports required to be included in and filed with the
SEC. In addition, the Trust Administrator has agreed to provide accounting services including valuing the Trust&rsquo;s bitcoin,
calculating the net asset value per Share of the Trust and the net asset value of the Trust and maintaining the books of account
of the Trust. In addition, the Trust Administrator makes available the office space, equipment, personnel and facilities required
to provide such services.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">The Trust Administrator
has agreed to provide its services under the Trust Administration Agreement for an initial term of one year with an automatic renewal
of successive one year terms unless earlier terminated pursuant to the Trust Administration Agreement. In addition, the Trust Administrator
may terminate its services for certain material breaches of the Trust Administration Agreement or for terminations as may be required
or occasioned by law. The Trust may terminate the Trust Administration Agreement for certain material breaches of the Trust Administration
Agreement or for terminations as may be required or occasioned by law.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">The fees of the Trust Administrator
are paid by the Trust. The Trust Administrator is exculpated and indemnified by the Trust under the terms of the Trust Administration
Agreement.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B>&nbsp;</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">Gemini Trust Company, LLC
serves as the Trust&rsquo;s Bitcoin Custodian and is a fiduciary under &sect; 100 of the New York Banking Law. The Bitcoin Custodian
is authorized to serve as the Trust&rsquo;s custodian under the Trust Agreement and pursuant to the terms and provisions of the
Custody Agreement. The Bitcoin Custodian has its principal office at 15 Park Ave South, Floor 16, New York, New York 10010.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">The Bitcoin Custodian makes
available to the Trust a custodial account for bitcoin maintained by the Bitcoin Custodian (&ldquo;Bitcoin Account&rdquo;) and access
to an omnibus custodial account held at depository institutions or money market funds in the Bitcoin Custodian&rsquo;s name for the benefit
of its customers at which a cash balance may be maintained (&ldquo;Fiat Account&rdquo;). The Bitcoin Custodian&rsquo;s services in
respect of the Bitcoin Account (i) allow bitcoin to be deposited from a public blockchain address to the Trust&rsquo;s bitcoin
account and (ii) allow bitcoin to be withdrawn from the bitcoin account to a public blockchain address as instructed by the Trust.
The Custody Agreement requires the Bitcoin Custodian to hold the Trust&rsquo;s bitcoin in cold storage, unless required to facilitate
withdrawals as a temporary measure. Other than in connection with withdrawals, the assets associated with which may temporarily
be held in a segregated hot storage custody account to facilitate the withdrawal, the Bitcoin Custodian will use segregated cold
storage bitcoin addresses for the Trust. The addresses on the Bitcoin Blockchain at which the Trust&rsquo;s bitcoin are held by the Bitcoin
Custodian are separate from the bitcoin addresses that the Bitcoin Custodian uses for its other customers and are directly verifiable
via the Bitcoin Blockchain. The Bitcoin Custodian will safeguard the private keys to the bitcoin associated with the Trust&rsquo;s
bitcoin account. The Bitcoin Custodian will at all times record and identify in its books and records that such bitcoins constitute
the property of the Trust. The Bitcoin Custodian will not withdraw the Trust&rsquo;s bitcoin from the Trust&rsquo;s account with
the Bitcoin Custodian, or loan, hypothecate, pledge or</P>

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

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    <!-- Field: /Page -->
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">otherwise encumber the Trust&rsquo;s bitcoin, without the Trust&rsquo;s
instruction. The Trust will not lease or loan bitcoin held in the Trust&rsquo;s account with the Bitcoin Custodian.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">The Custody Agreement provides
that bitcoin is deemed delivered to the address associated with the Trust&rsquo;s Bitcoin Account only after the required number of confirmations
of the transaction on the Bitcoin Blockchain, and that Gemini has no obligations for bitcoin that is not delivered in that manner.
The Custody Agreement provides that once the Trust submits a request for a withdrawal transaction, the bitcoin subject to the withdrawal
request shall be delivered by the Bitcoin Custodian to the designated address on the Bitcoin Blockchain specified in the Trust&rsquo;s
withdrawal transaction within one business day of 4pm Eastern Time of the business day on which the Trust submits the withdrawal
request. If a withdrawal request is made by the Trust (i) by 4pm Eastern Time of the business day on which the Trust submits the
withdrawal request, (ii) in connection with a redemption of shares of the Trust by an Authorized Participant, and (iii) the delivery
of bitcoin for such withdrawal request is to the account at the Bitcoin Custodian of an Authorized Participant, then the bitcoin
subject to such withdrawal request shall be delivered to the destination blockchain address specified therein, by the next business
day from the business day when such Withdrawal Request was submitted. The Custody Agreement provides that withdrawals may be delayed
in connection with scheduled maintenance (&ldquo;Downtime&rdquo;) or the congestion or disruption of a digital asset network, including
the Bitcoin Blockchain.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">In respect of the Fiat Account,
the Bitcoin Custodian holds the Trust&rsquo;s cash held in its account at the Bitcoin Custodian in one or more Customer Omnibus Accounts.
&ldquo;Customer Omnibus Account&rdquo; means, with respect to fiat currency held for customers of the Bitcoin Custodian in fiat
accounts (including the Trust&rsquo;s cash balance in its Fiat Account), omnibus bank accounts (each an &ldquo;Omnibus Account&rdquo;)
at depository institutions (each, a &ldquo;Bank&rdquo;)&#894; money market accounts (each, a &ldquo;Money Market Account&rdquo;)
at a Bank or financial institution&#894; and/or payment accounts (each, a &ldquo;Payment Account&rdquo;) at a financial institution.
Each Omnibus Account is: (i) in the Bitcoin Custodian&rsquo;s name, and under its control; (ii) separate from the Bitcoin Custodian&rsquo;s
business, operating, and reserve bank accounts; (iii) established specifically for the benefit of the Bitcoin Custodian&rsquo;s customers;
and (iv) represents a banking relationship, not a custodial relationship, with each Bank. Omnibus Accounts do not create or represent
any relationship between the Trust and any of the Bitcoin Custodian&rsquo;s Banks. Each Money Market Account is held at a Bank or financial
institution: (i) in the Bitcoin Custodian&rsquo;s name, and under its control; (ii) separate from the Bitcoin Custodian&rsquo;s business, operating,
and reserve money market accounts; (iii) established specifically for the benefit of the Bitcoin Custodian&rsquo;s customers; (iv) managed
by a registered financial advisor, (v) custodied by a qualified custodian; and (vi) the monies within which are used to purchase
money market funds invested in securities issued or guaranteed by the United States or certain U.S. government agencies or instrumentalities.
Money Market Accounts do not create or represent any relationship between the Trust and any of the related registered financial
advisors and/or qualified custodians. Each Payment Account is held at a financial institution: (i) in the Bitcoin Custodian&rsquo;s name,
and under its control; (ii) separate from the Bitcoin Custodian&rsquo;s business, operating, and reserve bank accounts; and (iii) established
specifically for processing the fiat funds transfers of the Bitcoin Custodian&rsquo;s customers. Payment Accounts do not create or represent
any relationship between the Trust and any of the related financial institutions. The Trust&rsquo;s fiat currency deposits are: (i) held
across the Bitcoin Custodian&rsquo;s Customer Omnibus Accounts in the exact proportion that all Bitcoin Custodian customer fiat currency
deposits are held across its Customer Omnibus Accounts; (ii) not treated as the Bitcoin Custodian&rsquo;s general assets; (iii) fully
owned by the Trust; and (iv) recorded and maintained in good faith on the Bitcoin Custodian&rsquo;s books and records and reflected in
a sub-account (i.e., the Fiat Account of the Trust&rsquo;s Gemini Account) so that the Trust&rsquo;s interests in the Bitcoin Custodian&rsquo;s Customer
Omnibus Accounts are readily ascertainable. The Bitcoin Custodian&rsquo;s records permit the determination of the balance of U.S. dollars
for a particular customer as a percentage of total commingled U.S. dollars held for the benefit of all of the Bitcoin Custodian&rsquo;s
customers in all Customer Omnibus Accounts in a manner consistent with 12 C.F.R. &sect; 330.5(a)(2). The Trust is not entitled
to receive any interest that may be generated with respect to the cash held in its Fiat Account. U.S. dollar deposits in the Trust&rsquo;s
Fiat Account held in one or more Omnibus Accounts at one or more Banks located in the United States are held with the intention
that they be eligible for Federal Deposit Insurance Corporation (&ldquo;FDIC&rdquo;) &ldquo;pass-through&rdquo; deposit insurance,
subject to the Standard Maximum Deposit Insurance Amount per FDIC regulations (currently $250,000 per eligible customer of the
Bitcoin Custodian) and other applicable limitations. U.S dollar deposits held at banks or financial institutions located outside
of the United States, may not be subject to or eligible for FDIC deposit insurance. The portion of the Trust&rsquo;s cash holdings attributable
to the Trust&rsquo;s Fiat Account which is held at a Money Market Fund is not eligible for deposit insurance whether on a pass-through
or any other basis. The Custody Agreement provides that wire deposit and withdrawal transfer times in respect of the Fiat Account
are subject to bank holidays, the internal processes and jurisdiction of the Trust&rsquo;s bank, and the internal processes of the Bitcoin
Custodian&rsquo;s banks and financial institutions. In certain situations, wire deposit or withdrawal transfer times may be delayed in
connection with Downtime or disruptions to the Bitcoin Custodian&rsquo;s banks and/or affiliates or service providers. ACH deposit and
withdrawal transfer times are subject to bank holidays, the internal processes and jurisdiction of the Trust&rsquo;s bank, and the internal
processes of the Trust&rsquo;s banks. The Custody Agreement provides that in certain situations, ACH withdrawal transfer times may be
delayed in connection with Downtime or disruptions to the Bitcoin Custodian&rsquo;s banks and/or affiliates or service providers.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">The Custody Agreement provides
that no more than once per calendar year, the Trust shall be entitled to request that the Bitcoin Custodian produce its Services
Organization Controls 2 Type I report (a &ldquo;SOC 2-I Report&rdquo;) and a new Services Organization Controls 2 Type II report
(a &ldquo;SOC 2-II Report&rdquo; and, together with a SOC 2-I Report, &ldquo;SOC Reports&rdquo;), or certify that there have been
no material changes which would impact the previous SOC Reports provided to the Trust, and promptly deliver to the Trust a copy
of each SOC </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0"> </P>
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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 10pt"><P STYLE="margin: 0pt"><PAGE></PAGE></P></DIV>
    <!-- Field: /Page -->
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Report within 45 days of the Trust&rsquo;s request. No more than once per calendar year, the Trust shall be entitled to request
that the Bitcoin Custodian produce a copy of the Bitcoin Custodian&rsquo;s audited annual financial statements for each financial year
ending on or after December 31, 2021, and the Bitcoin Custodian shall promptly deliver such financial statements to the Trust.</P>

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



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">The Bitcoin Custodian agrees
to take reasonable care and use commercially reasonable efforts in executing its responsibilities to the Trust pursuant to the
Custody Agreement, which includes exercising the degree of care, diligence and skill that a prudent and competent professional
provider of services similar to the services contemplated by the Custody Agreement would exercise in the circumstances, or such
higher care where required by law or the Custody Agreement (collectively, the &ldquo;Standard of Care&rdquo;). The Bitcoin Custodian
cannot be held responsible for any failure or delay to act by the Bitcoin Custodian, its affiliates or service providers, or its
banks that is within the time limits permitted by the Custody Agreement, or that is caused by the Trust&rsquo;s negligence or is required
to comply with applicable laws and regulations. The Bitcoin Custodian cannot be held responsible for any Downtime or System Failure
(defined below), which prevents the Bitcoin Custodian from fulfilling its obligations under the Custody Agreement, provided that
Bitcoin Custodian took reasonable care and used commercially reasonable efforts to prevent or limit such System Failures or Downtime
and otherwise complied with this Agreement. The Custody Agreement provides that a &ldquo;System Failure&rdquo; shall mean a failure
of any computer hardware, software, computer systems, or telecommunications lines or devices used by Bitcoin Custodian, or interruption,
loss, or malfunction of utility, data center, Internet or network provider services used by Bitcoin Custodian; provided, however,
that a cybersecurity attack, data breach, hack, or other intrusion, or unauthorized disclosure by a third party, Bitcoin Custodian,
a Bitcoin Custodian affiliate or service provider, or an agent or subcontractor of Bitcoin Custodian, shall not be deemed a System
Failure, to the extent such events or any losses arising therefrom are due to Bitcoin Custodian&rsquo;s failure to comply with its obligations
under the Custody Agreement. The Bitcoin Custodian cannot be held responsible for any circumstances beyond the Bitcoin Custodian&rsquo;s
reasonable control, provided Bitcoin Custodian acted in accordance with the Standard of Care. Notwithstanding any other provision
in the Custody Agreement, for the Trust&rsquo;s bitcoin held in the Bitcoin Account, the Bitcoin Custodian represents, warrants, and
covenants that it will maintain the private key or keys in a form accessible to the Bitcoin Custodian and will take reasonable
care and use commercially reasonable efforts to (i) protect and keep the private key or keys secure and (ii) not disclose them
or allow access to them by any other person. The Bitcoin Custodian shall take reasonable care and use commercially reasonable efforts
to ensure that the Trust shall be able to access the Bitcoin Account via the Bitcoin Custodian&rsquo;s online interface 97% of the time
excluding Downtime and System Failures. The Bitcoin Custodian shall not, without the prior written consent of the Trust, deposit
or hold the Trust&rsquo;s bitcoin with any third-party depositary, custodian, clearance system, wallet, or sub-custodian. Subject to
the foregoing, the Bitcoin Custodian is permitted to perform its obligations under the Custody Agreement using subcontractors or
agents, provided that, in relation to each such subcontractor or agent used by the Bitcoin Custodian, the Bitcoin Custodian shall:
(i) comply with the Standard of Care in the selection, appointment and use of each such subcontractor or agent; (ii) monitor such
subcontractor&rsquo;s or agent&rsquo;s performance; and (iii) remain solely liable to Trust for the performance of the Bitcoin Custodian&rsquo;s
obligations under the Custody Agreement, notwithstanding any use of subcontractors or agents.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">Subject to the &ldquo;Force
Majeure&rdquo; provision (defined below) and as limited by the limitations of liability in the Custody Agreement, the Bitcoin Custodian
shall be liable to the Trust for the Loss (defined below) of any of the Trust&rsquo;s bitcoin or fiat currency to the extent that such
Loss was caused by the negligence, fraud, willful or reckless misconduct of the Bitcoin Custodian or breach by the Bitcoin Custodian
of its Standard of Care. The Custody Agreement provides that &ldquo;Loss&rdquo; means if, at any time the Trust&rsquo;s Bitcoin Account
or Fiat Account, as applicable, does not hold the bitcoin or fiat currency that had been (1) received by Bitcoin Custodian in connection
with the Trust&rsquo;s Bitcoin Account or Fiat Account pursuant to the Custody Agreement, or (2) duly sent to the Bitcoin Custodian by
the Trust or Authorized Participants in connection with the Trust&rsquo;s Bitcoin Account pursuant to the Custody Agreement but not received
because of a failure caused by the Bitcoin Custodian. The Custody Agreement provides that &ldquo;Loss&rdquo; shall include situations
where the Bitcoin Custodian fails to execute a valid withdrawal request, bitcoin are withdrawn from the Trust&rsquo;s Bitcoin Account
other than pursuant to a withdrawal request, or the Trust is not able to timely withdraw bitcoin from the Bitcoin Account pursuant
to a withdrawal request, in each case due to a failure caused by the Bitcoin Custodian; provided, however, that the Bitcoin Custodian&rsquo;s
failure to permit timely withdrawals because it has determined that it cannot do so due to the requirements of applicable laws
and regulations or because of the operation of its fraud detection controls shall not be considered a Loss, provided the Bitcoin
Custodian is acting reasonably and in good faith. The Custody Agreement provides that should a Loss of the Trust&rsquo;s bitcoin or fiat
currency due to the negligence, fraud, willful or reckless misconduct of the Bitcoin Custodian or a breach by the Bitcoin Custodian
of its Standard of Care occur, the Bitcoin Custodian will, as soon as practicable, return to the Trust a quantity of the same digital
asset that is equal to the quantity of digital assets involved in the Loss, or return to the Trust a quantity of the same fiat
currency that is equal to the quantity of fiat currency involved in the Loss (if the Loss involved the Fiat Account). The Custody
Agreement provides that the Bitcoin Custodian does not own or control the underlying software protocols of networks which govern
the operation of digital assets (including the Bitcoin Blockchain), (ii) the Bitcoin Custodian makes no guarantees regarding their
security, functionality, or availability, and (iii) in no event shall the Bitcoin Custodian be liable for or in connection with
any acts, decisions, or omissions made by developers or promoters of digital assets, including bitcoin.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">The Custody Agreement&rsquo;s
&ldquo;Force Majeure&rdquo; provision provides that in no event shall the Bitcoin Custodian be liable for any delays, failure in
performance or interruption of service which result directly or indirectly from any cause or condition, whether or not </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0"> </P>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">foreseeable, beyond the Bitcoin
Custodian&rsquo;s reasonable control, including, but not limited to, any act of God, nuclear or natural disaster, epidemic, action
or inaction of civil or military authorities, act of war, terrorism, sabotage, civil disturbance, strike or other labor
dispute, accident, or state of emergency; provided, however, that for the avoidance of doubt, the Custody Agreement&rsquo;s Force
Majeure provision shall not apply in respect of System Failures or Downtime, which are subject to other respective provisions
of the Custody Agreement. The occurrence of an event described in the Force Majeure provision shall not affect the validity
and enforceability of any remaining provisions of the Custody Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">The Custody Agreement provides
that in the event of a fork, the Bitcoin Custodian may temporarily suspend its operations (with notice, which may be provided by
public notice to its customers on its website or by other means) while the Bitcoin Custodian chooses, in its sole discretion, which
forked networks to support. Once the Bitcoin Custodian has chosen which forked network to support, it will promptly make such notification
public on its website or by other means. In the event of a fork of the Bitcoin Blockchain, the Bitcoin Custodian will support the
forked network that requires the greatest total threshold number of hash attempts to mine all existing blocks measured during the
48-hour period following a fork (the &ldquo;Greatest Cumulative Computational Difficulty&rdquo;) and will retain the name and ticker
of the digital asset that existed prior to the fork. The Bitcoin Custodian may, in its sole discretion, suspend operations, in
whole or in part (with notice, which may be provided by public notice to its customers on its website or by other means), for as
long as the Bitcoin Custodian reasonably deems necessary, while it makes this determination. If the Bitcoin Custodian is unable
to make a conclusive determination as to which forked network has the Greatest Cumulative Computational Difficulty, or if the Bitcoin
Custodian reasonably determines in good faith that Greatest Cumulative Computational Difficulty is not a reasonable criterion upon
which to make a determination, it will support the forked network that it reasonably deems in good faith is most likely to be supported
by the greatest number of users and miners and will retain the name of the digital asset that existed prior to the fork. The Bitcoin
Custodian may also support the other forked network, in which case the Bitcoin Custodian will call its digital asset by a different
name. Once Gemini has made a determination regarding the Forked Network(s) it will support, it will promptly make such determination
publicly available through its website or other means. In the event that the Trust is entitled to take delivery of digital assets
pursuant to the protocol of a forked network and the Bitcoin Custodian elects, in its sole direction, not to support such forked
network (an &ldquo;Unsupported Forked Network&rdquo;), the Bitcoin Custodian shall, in good faith upon request of the Trust, (i)
use commercially reasonable efforts to calculate the amount of specified Unsupported Fork Network assets the Trust would be entitled
to based upon the Trust&rsquo;s balance of digital assets at the time of the applicable fork (the &ldquo;Unsupported Forked Assets&rdquo;),
and use commercially reasonable efforts to notify the Trust of the amount of Unsupported Forked Assets and shall not account for,
or pursue such, Unsupported Forked Assets as its own property or the property of any other person other than the Trust; and in
the discretion of the Bitcoin Custodian, either (A) make such Unsupported Forked Assets available to Customer via a onetime withdrawal
mechanism (subject to withholding of fair compensation for the Bitcoin Custodian for its efforts in doing so), or (B) not pursue
obtaining such Unsupported Forked Assets on behalf of the Trust, provided that if does not pursue obtaining such assets at the
time of the fork, if in the future the Bitcoin Custodian decides to support such assets, the Bitcoin Custodian shall use commercially
reasonable efforts to take such action as may be necessary to pursue and credit such Unsupported Forked Assets to the Trust&rsquo;s account
at the Bitcoin Custodian. The Bitcoin Custodian has no obligations with respect to airdrops.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">Under the Custody Agreement,
each of the Bitcoin Custodian and the Trust has agreed to indemnify and hold harmless the other party from any third-party claim
or third-party demand (including reasonable attorneys&rsquo; fees and expenses) (collectively, &ldquo;Damages&rdquo;) arising out
of or related to the Bitcoin Custodian&rsquo;s or the Trust&rsquo;s, as the case may be, non-performance of its obligations under
or material breach of the Custody Agreement and inaccuracy in any of the Bitcoin Custodian&rsquo;s or the Trust&rsquo;s, as the
case may be, representations or warranties in the Custody Agreement. In addition, the Bitcoin Custodian agrees to indemnify the
Trust in the event of Damages relating to the holding of the Trust&rsquo;s bitcoin and fiat currency by the Bitcoin Custodian as contemplated
by the Custody Agreement, including any loss or damage caused by any act or omission of any employee of the Bitcoin Custodian or
any agent, representative or independent contractor engaged by the Bitcoin Custodian, whether or not such act or omission occurred
within the scope of his employment or engagement. The Custody Agreement provides that &ldquo;Damages&rdquo; shall not include any
losses, claims, damages, liabilities or expenses arising from any fluctuation in market price, forks, governance changes, airdrops
or other events which impact all holders of a digital asset such as bitcoin globally as a class.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">The Custody Agreement provides
the Bitcoin Custodian, its affiliates, service providers, or any of their respective officers, directors, agents, joint venturers,
employees or representatives, shall not be liable for (i) any losses or claims arising out of actions that are in the Trust&rsquo;s control
and related to its use of the Bitcoin Custodian&rsquo;s online platform, including but not limited to, the Trust&rsquo;s failure to follow
security protocols, the Bitcoin Custodian&rsquo;s controls, improper instructions, failure to secure the Trust&rsquo;s credentials from third
parties, or anything else in the Trust&rsquo;s control and (ii) any amount greater than the value of the bitcoin on deposit in Customer&rsquo;s
Bitcoin Account at the time of, and directly relating to, the events giving rise to the liability occurred, the value of which
shall be determined in accordance with the Chicago Mercantile Exchange Bitcoin Reference Rate or any successor thereto. No party
shall be liable to the other parties (whether under contract, tort (including negligence) or otherwise) for any indirect, incidental,
special, punitive or consequential losses suffered or incurred by the other parties (whether or not any such losses were foreseeable
or within the contemplation of the parties). This means, by way of example only (and without limiting the scope of the above),
that if the Trust claims that the Bitcoin Custodian failed to process a withdrawal request properly, the Trust&rsquo;s damages are limited
to no more than the value of the bitcoin at</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0"> </P>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> issue in the withdrawal request, and that the Trust may not recover for lost profits,
lost business opportunities, or other types of special, incidental, indirect, intangible, or consequential damages in excess of
the value of the bitcoin at issue in the withdrawal. The Bitcoin Custodian shall not be liable to the Trust or anyone else for
any loss or injury resulting directly or indirectly from any damage or interruptions caused by any computer viruses, spyware, scamware,
trojan horses, worms, or other malware that may affect the Trust&rsquo;s computer or other equipment, provided such malware did not originate
from the Bitcoin Custodian or its agents.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0">&nbsp;</P>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">The Custody Agreement provides
that the Bitcoin Custodian has obtained insurance coverage by a reputable insurance company with respect to digital assets custodied
with the Bitcoin Custodian, in accordance with its internal standards for maintaining such insurance and subject to change at the
Bitcoin Custodian&rsquo;s discretion. The Custody Agreement provides that the Bitcoin Custodian shall provide the Trust with notice of
material changes in its insurance coverage. For more information, see &ldquo;CUSTODY OF THE TRUST&rsquo;S ASSETS&#8212;Insurance&#750;
and &ldquo;RISK FACTORS&#8212;The Lack Of Full Insurance And Shareholders&rsquo; Limited Rights Of Legal Recourse Against The Trust,
Trustee, Sponsor, Administrator, Cash Custodian And Bitcoin Custodian Expose The Trust And Its Shareholders To The Risk Of Loss
Of The Trust&rsquo;s Bitcoins For Which No Person Or Entity Is Liable.&#750;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">The Custody Agreement will
commence on the date of execution and continue until terminated in accordance with its provisions. The Custody Agreement may be
terminated by either party upon 90 days written notice to the other party; provided, however, that if the Custody Agreement is
terminated, the Bitcoin Custodian shall use commercially reasonable efforts to cooperate with the Trust&rsquo;s transition to a replacement
custodian and if the Trust is unable to engage a replacement custodian using commercially reasonable efforts within such 90 day
period, the Bitcoin Custodian terminates the Custody Agreement, then the Bitcoin Custodian shall continue to act as Bitcoin Custodian
pursuant to the terms of the Custody Agreement until such time as the Trust engages a replacement custodian, provided that the
Trust uses reasonable commercial efforts to promptly engage a replacement custodian. Either party (the &ldquo;Terminating Party&rdquo;)
may terminate the Custody Agreement at any time on written notice to the other party (the &ldquo;Defaulting Party&rdquo;), such termination
to take effect (i) on the tenth business day after the delivery of written notice of termination by the Terminating Party to the
Defaulting Party, unless the Defaulting Party has cured the event triggering a termination right to the satisfaction of the Terminating
Party, acting reasonably, or (ii) immediately after delivery of written notice of termination by the Terminating Party to the Defaulting
Party if the event triggering a termination right is incapable of being cured within ten business days, in the following circumstances.
First, any representation, warranty, certification or statement made by the Defaulting Party under the Custody Agreement was or
becomes incorrect in any material respect when made; second, the Defaulting Party materially breaches, or fails in any material
respect to perform any of its obligations under, the Custody Agreement; third, the Defaulting Party requests a postponement of
maturity or a moratorium with respect to any indebtedness or is adjudged bankrupt or insolvent, or there is commenced against the
Defaulting Party a case under any applicable bankruptcy, insolvency or other similar law now or hereafter in effect, or the Defaulting
Party files a petition for bankruptcy or an application for an arrangement with its creditors, seeks or consents to the appointment
of a receiver, administrator or other similar official for all or any substantial part of its property, admits in writing its inability
to pay its debts as they mature, or takes any corporate action in furtherance of any of the foregoing, or fails to meet applicable
legal minimum capital requirements; fourth, a Change of Control (as defined in the Custody Agreement) of the Defaulting Party,
or an event, change or development that causes or is likely to cause a Material Adverse Effect (as defined in the Custody Agreement)
on the Defaulting Party, or in the ability of the Defaulting Party to fulfill its responsibilities under the Custody Agreement,
occurs; fifth, with respect to the Trust&rsquo;s right to terminate, the Bitcoin Blockchain undergoes a fork and becomes a forked network,
and the Trust disagrees with the Bitcoin Custodian&rsquo;s choice of which forked network to support; or with respect to the Trust&rsquo;s
right to terminate, applicable laws and regulations or any change therein or in the interpretation or administration thereof that
may have a Material Adverse Effect (as defined in the Custody Agreement) on the Trust or the rights of the Trust with respect to
any services covered by the Custody Agreement.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Bitcoin Custodian has
the right to immediately (i) take actions the Bitcoin Custodian determines appropriate to comply with applicable law and Regulations
and in accordance with its BSA/AML program, (ii) suspend the Trust&rsquo;s Bitcoin Account or Fiat Account, (iii) freeze/lock the funds
and assets in all such accounts, and (iv) suspend the Trust&rsquo;s access to the Bitcoin Custodian&rsquo;s platform or its account there (collectively,
an &#8223;account suspension&rdquo;), if: (A) the Bitcoin Custodian is required to do so by a regulatory authority, court order,
facially valid subpoena, or binding order of a governmental authority, (B) the Bitcoin Custodian reasonably and in good faith believes
the Trust has violated applicable laws and regulations in connection with the Trust&rsquo;s Bitcoin Account or Fiat Account, or the Bitcoin
Custodian is required to do so under the Bitcoin Custodian&rsquo;s BSA/AML program, (C) the Bitcoin Custodian believes someone is attempting
to gain unauthorized access to the account, or (D) the Bitcoin Custodian believes there is unusual activity in the account. Except
as set forth above, the Bitcoin Custodian shall not suspend the Trust&rsquo;s access to the Bitcoin Account or the Fiat Account, and
any suspension of the Trust&rsquo;s access to such accounts shall constitute a breach of the Custody Agreement. In the case of an account
suspension due to (C) or (D) of this paragraph, the Bitcoin Custodian shall restore the Trust&rsquo;s normal access to the Bitcoin Account
or Fiat Account as promptly as reasonably possible without putting the bitcoin and fiat currency in such accounts at risk. In the
case of an account suspension due to (A) or (B) of this paragraph, the Bitcoin Custodian shall permit the Trust to withdraw the
Trust&rsquo;s bitcoin and fiat currencies from Bitcoin Account or Fiat Account as soon as permitted by applicable laws and regulations
or the applicable court order, subpoena, or regulatory or governmental authority, and for ninety (90) days thereafter.&nbsp;</P>

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

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

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    <!-- Field: /Page -->

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">The Sponsor may, in its
sole discretion, add or terminate other bitcoin custodians. The Sponsor may, in its sole discretion, change the custodian for the
Trust&rsquo;s bitcoin holdings, but it will have no obligation to do so or to seek any particular terms for the Trust from other
such custodians.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">In addition to the bitcoin
custodial services described herein, the Bitcoin Custodian will also provide the Trust with clearing and settlement services for
bitcoin purchase and sale transactions between the Trust and its trading partners. These services are detailed within the clearing
agreement between the Trust and the Bitcoin Custodian (the &ldquo;Clearing Agreement&rdquo;).</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>The Bitcoin Custodian&rsquo;s Role in the Clearing
Agreement</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">The Bitcoin Custodian&rsquo;s
clearing services (&ldquo;Gemini Clearing&rdquo;) allow the submission, acceptance, funding, and settlement of purchase and sale
transactions with respect to bitcoin that the Trust arranges and negotiates with another party that is also a customer of the Bitcoin
Custodian (&ldquo;Counterparty&rdquo;) without the involvement of the Bitcoin Custodian (such transactions, &ldquo;Clearing Transactions&rdquo;).
The Trust engages in Clearing Transactions with Liquidity Providers (as defined in &ldquo;CREATION AND REDEMPTION OF SHARES&#8212;Creation
Procedures&rdquo;) to source bitcoin in connection with purchase orders made in cash by Authorized Participants, or to sell bitcoin
for cash to fill redemption orders in cash made by Authorized Participants.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">Each Clearing Transaction
has one party that will act as buyer owing an amount of fiat currency (such party, the &ldquo;Buyer&rdquo; and such amount, the
&ldquo;Fiat Currency Amount&rdquo;) and a party that will act as a seller owing an amount of bitcoin (such party, the &ldquo;Seller&rdquo;
and such amount, the &ldquo;Digital Asset Amount&rdquo;). The Trust will act as Buyer in connection with a purchase order or Seller
in connection with a redemption order, while the Liquidity Provider &#8211; which must be a customer and have established accounts
at the Bitcoin Custodian &#8211; will be the Seller in connection with a purchase order or the Buyer in connection with a redemption
order.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">For each Clearing Transaction,
the Trust or the Counterparty is responsible for submitting a request (such party, the &ldquo;Submitting Party&rdquo; and such
request a &ldquo;Clearing Request&rdquo;) to settle a transaction through Gemini Clearing in the form and manner, and otherwise
in accordance with the instructions, technical specifications and other information, that the Bitcoin Custodian may require. For
each Clearing Transaction and Clearing Request, the Submitting Party must, at a minimum, (i) identify the account at the Bitcoin
Custodian (&ldquo;Gemini Account&rdquo;) of the other party to the Clearing Transaction (such party, the &ldquo;Confirming Party&rdquo;),
(ii) the Buyer and the applicable Fiat Currency Amount for the Clearing Transaction, (iii) the Seller and the applicable Digital
Asset Amount for the Clearing Transaction, and (iv) the time period by when the Clearing Request will expire if not completed (&ldquo;Expiration
Time&rdquo;).</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">Once the Submitting Party
successfully submits a Clearing Request, the Bitcoin Custodian shall notify the Confirming Party of the Clearing Request and the
relevant information in such Clearing Request. The Trust is responsible for funding its Fiat Account or Bitcoin Account, as applicable,
with the Fiat Currency Amount and the Digital Asset Amount, as applicable based on the Clearing Request, in each case prior to
the Expiration Time. The Counterparty must fund its applicable account at the Bitcoin Custodian as well.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">If, prior to the Expiration
Time, both the Trust and the Counterparty have funded their applicable account at the Bitcoin Custodian with their respective obligation
of the Fiat Currency Amount and the Digital Asset Amount, the Bitcoin Custodian shall (i) transfer the Fiat Currency Amount from
the Buyer&rsquo;s Gemini Account to the Seller&rsquo;s Gemini Account and (ii) transfer the Digital Asset Amount from the Seller&rsquo;s
Gemini Account to the Buyer&rsquo;s Gemini Account. If the parties do not fund their respective accounts with the amounts specified
in the Clearing Request by the Expiration Time, the Clearing Request will expire and Gemini have no obligations with respect to
such Clearing Request.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">The Trust acknowledges and
agrees that the Bitcoin Custodian is not involved in and does not have any responsibility for any Clearing Transaction, other than
as specifically identified in the Clearing Agreement. Absent gross negligence, willful misconduct or fraud, the Bitcoin Custodian
shall not be liable for any loss resulting from a Clearing Request or the use of Clearing Services. Validation and confirmation
procedures used by Gemini are designed only to verify the source of Clearing Requests and that each party has met its respective
obligations in respect of a Clearing Request and not to detect errors in the content of that Clearing Request or to prevent duplicate
Clearing Requests. The Trust is responsible for losses resulting from Clearing Requests provided by it and for any errors made
by or on behalf of the Trust, any errors resulting, directly or indirectly, from fraud or the duplication of any Clearing Request
by or on behalf of the Trust, or any losses resulting from the malfunctioning of any devices used by the Trust or loss or compromise
of credentials used by the Trust to deliver Clearing Requests.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">The Trust also agrees and
understands that the Bitcoin Custodian may reject, refuse to settle or otherwise not complete any request to settle a Clearing
Request through Gemini Clearing for any reason necessary to comply with applicable laws and regulations or in connection with its
fraud or other compliance controls and systems, and the Trust agrees that the Bitcoin Custodian shall have no liability whatsoever
to the Trust, any transaction counterparty or any other party in connection with or arising out of the Bitcoin Custodian rejecting,
refusing or otherwise not completing the settlement of a transaction through Gemini Clearing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0"> </P>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">The Bitcoin Custodian will
not settle transactions through Gemini Clearing: (i) if either party to a Clearing Transaction has not fully funded its applicable
account at the Bitcoin Custodian, with the required Fiat Currency Amount or Digital Asset Amount, as applicable, prior to the Expiration
Time; (ii) if either party to a Clearing Transaction has not confirmed its acceptance of the Clearing Request to the Bitcoin Custodian
prior to the Expiration Time; (iii) if either party to a transaction is not a customer of the Bitcoin Custodian; or (iv) for any
other reason as determined by the Bitcoin Custodian in its sole discretion to comply with applicable laws and regulation or in
connection with the Bitcoin Custodian&rsquo;s fraud or other compliance controls and systems.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">The Transfer Agent: (1)
issues and redeems Shares of the Trust; (2) responds to correspondence by Trust 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: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">The Marketing Agent is responsible
for: (1) working with the Administrator to review and approve, or reject, purchase and redemption orders of Creation Baskets placed
by Authorized Participants with the Administrator; (2) providing assistance in the marketing of the Shares; (3) reviewing and approving
the marketing materials prepared by the Sponsor for compliance with applicable SEC and FIRA advertising laws, rules and regulations;
and (4) maintaining a public website on behalf of the Trust, containing information about the Trust and the Shares. The internet
address of the Trust&rsquo;s website is [&nbsp;&nbsp;]. This internet address is only provided here as a convenience, and the information
contained on or connected to the Trust&rsquo;s website is not considered part of this Prospectus.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">MarketVector Indexes GmbH
is an indirectly wholly owned-subsidiary of Van Eck Associates Corporation.</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B><A NAME="x6_c106800a009"></A>CUSTODY
OF THE TRUST&rsquo;S ASSETS</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 36pt"><FONT STYLE="text-transform: uppercase"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">The Trust&rsquo;s Bitcoin
Custodian will keep custody of all of the Trust&rsquo;s bitcoin. Bitcoin private keys are stored in two different forms: &ldquo;hot
wallet&rdquo; storage, whereby the private keys are stored on secure, internet-connected devices, and &ldquo;cold&rdquo; storage,
where digital currency private keys are stored completely offline. The Custody Agreement requires the Bitcoin Custodian to hold
the Trust&rsquo;s bitcoin in cold storage, unless required to facilitate withdrawals as a temporary measure.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">As a fiduciary under Section
100 of the New York Banking Law, the Bitcoin Custodian is held to specific capital reserve requirements and banking compliance
standards. The Bitcoin Custodian is also subject to the laws, regulations and rules of applicable governmental or regulatory authorities,
including: money service business regulations under FinCEN; U.S. state money transmission laws; laws, regulations, and rules of
relevant tax authorities; applicable regulations and guidance set forth by FinCEN; the Bank Secrecy Act of 1970; the USA PATRIOT
Act of 2001; AML Regulations as mandated by U.S. federal law and any other rules and regulations regarding anti-money laundering/counter-terrorist
financing; issuances from the Office of Foreign Assets Control; the New York Banking Law; regulations promulgated by the New York
State Department of Financial Services from time to time; the National Futures Association; the Financial Industry Regulatory Authority;
and the Commodity Exchange Act.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">The Bitcoin Custodian has
a proven track record of providing custody, clearing/settlement, and other capital markets services specifically designed for digital
asset exchange-traded funds and other fund vehicles. The Bitcoin Custodian custodies and supports numerous bitcoin ETFs, including
certain Canadian bitcoin ETF issuers.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">The Bitcoin Custodian will
use segregated cold storage bitcoin addresses for the Trust, which is separate from the bitcoin addresses that the Bitcoin Custodian
uses for its other customers and which are directly verifiable via the bitcoin blockchain. The Bitcoin Custodian will at all times
record and identify in its books and records that such bitcoins constitute the property of the Trust. The Bitcoin Custodian will
not loan, hypothecate, pledge or otherwise encumber the Trust&rsquo;s bitcoin, as applicable, without the Trust&rsquo;s instruction.
The Trust will not lease or loan bitcoin held in the Trust&rsquo;s account with the Bitcoin Custodian. The Trust will [only] instruct
the Bitcoin Custodian to loan, hypothecate, pledge or otherwise encumber the Trust&rsquo;s bitcoin in connection with paying the
Sponsor Fee or the Trust&rsquo;s expenses and liabilities. In addition to the Bitcoin Custodian, none of the Trust, Sponsor or
any other entity is permitted to loan, pledge or rehypothecate any of the Trust&rsquo;s assets without the Trust&rsquo;s instruction.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">Bitcoin private keys are
stored in two different forms: &ldquo;hot wallet&rdquo; storage, whereby the private keys are connected to the internet, and &ldquo;cold&rdquo;
storage, where digital currency private keys are stored completely offline. The Trust&rsquo;s bitcoin will be stored by the Bitcoin
Custodian offline in cold storage. When under the purview of the Bitcoin Custodian, bitcoin will only enter &ldquo;hot&rdquo; storage
in the case of deposits and redemptions, meaning that the bitcoin will only be in &ldquo;hot&rdquo; storage for a temporary period.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">The Bitcoin Custodian has
adopted the following security policies and practices with respect to digital assets held in cold storage: HSMs are used to generate,
store and manage cold storage private keys; multi-signature technology is used to provide both security against attacks and tolerance
for losing access to a key or facility, eliminating single points of failure; all HSMs are stored offline in air-gapped environments
within a diverse network of guarded, monitored and access-controlled facilities that are geographically distributed; multiple levels
of physical security and monitoring controls are implemented to safeguard HSMs within storage facilities; and all fund transfers
require the coordinated actions of multiple employees.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">The Bitcoin Custodian has
adopted the following security policies and practices with respect to digital assets held in its hot wallet: HSMs are used to store
and manage hot wallet private keys; operational redundancy is achieved through geographic disbursement of failover storage facilities
and hardware, thus protecting against service disruptions and single points of failure; all hot wallet HSMs are stored within secured
facilities that are access-controlled, guarded, and monitored; tiered access-controls are applied to the Bitcoin Custodian&rsquo;s
production environment to restrict access to employees based on role, following the principle of least-privilege; administrative
access to its production environment requires multi-factor authentication; and it offers additional account level protections such
as crypto address whitelisting, which allows customers to restrict withdrawals to addresses only included in the customer&rsquo;s
whitelist.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B><I>Gemini BSA/AML Program </I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">The Bitcoin Custodian has
adopted the Gemini BSA/AML Program for its digital asset trading platform and custody service in an effort to maintain the highest
possible compliance with applicable laws and regulations relating to anti-money laundering in the U.S. and other countries where
it conducts business. This program includes robust internal policies, procedures and controls that combat any attempted use of
Gemini for illegal or illicit purposes, including a customer identification program, annual training of all employees and </P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">officers
in AML Regulation, filing of Suspicious Activity Reports and Currency Transaction Reports with the U.S. Financial Crimes Enforcement
Network and annual internal and independent audits of the Gemini BSA/AML Program.</P>



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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">The Bitcoin Custodian has
implemented certain security policies and practices to enhance security on its website, including through the use of two-factor
authentication for certain user actions, such as withdrawals; a requirement for strong passwords from its users, which are cryptographically
hashed using modern standards; encryption of sensitive user information, both in transit and at rest; the application of rate-limiting
procedures to certain account operations such as login attempts to thwart brute force attacks; the transmission of website data
over encrypted transport layer security connections; the leveraging of content-security policy and HTTP strict transport security
features in modern browsers; partnerships with enterprise vendors to mitigate-potential distributed denial-of-service attacks;
and the use of separate access controls on internal-only sections of the Bitcoin Custodian&rsquo;s website.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">In addition to the security
policies and procedures discussed above, the Bitcoin Custodian has also instituted the following internal controls: multiple signatories
are required to transfer funds out of cold storage; the Bitcoin Custodian&rsquo;s Chief Executive Officer and President are unable
to individually or jointly transfer funds out of cold storage; all private keys are stored offsite in secure facilities; all employees
undergo criminal and credit background checks, and are subject to ongoing background checks throughout their employment; and all
remote-access by employees uses public-key authentication (e.g. no passwords, one-time passwords or other phishable credentials
are used).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">The Bitcoin Custodian, as
custodian of the Trust&rsquo;s bitcoin, is responsible for securing the Trust&rsquo;s bitcoin. The Bitcoin Custodian currently
maintains $200 million in specie coverage for digital assets held in its cold storage system, which the Bitcoin Custodian has represented
to the Trust applies to all customer assets held at the Bitcoin Custodian, including the Trust&rsquo;s assets. Such insurance is shared
with other customers and is not specific to the Trust. The Trust is not a named beneficiary under the Bitcoin Custodian&rsquo;s insurance
policy. For more information, see &ldquo;RISK FACTORS&#8212;The Lack Of Full Insurance And Shareholders&rsquo; Limited Rights Of
Legal Recourse Against The Trust, Trustee, Sponsor, Administrator, Cash Custodian And Bitcoin Custodian Expose The Trust And Its
Shareholders To The Risk Of Loss Of The Trust&rsquo;s Bitcoins For Which No Person Or Entity Is Liable.&#750; The amounts and continuing
availability of this coverage are subject to change at the Bitcoin Custodian&rsquo;s sole discretion. The Bitcoin Custodian also
maintains separate commercial crime insurance coverage for digital assets custodied in its &ldquo;hot wallet&rdquo;. To date, the
Bitcoin Custodian has never experienced a loss due to unauthorized access from its hot wallet or the cold storage vaults.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">Each Authorized Participant
is required to maintain an Authorized Participant bitcoin account at the Trust&rsquo;s Bitcoin Custodian.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">The Trust&rsquo;s Transfer
Agent will facilitate the settlement of Shares in response to the placement of creation orders and redemption orders from Authorized
Participants. The Trust generally does not intend to hold cash or cash equivalents except in connection with cash creation and
redemption orders and to pay expenses. However, there may be situations where the Trust will unexpectedly hold cash on a temporary
basis.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0"> </P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B><A NAME="x6_c106800a010"></A>FORM
OF SHARES</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 36pt"><FONT STYLE="text-transform: uppercase"><B>&nbsp;</B></FONT></P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">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: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">Individual certificates
are not issued for the Shares. Instead, Shares are represented by one or more global certificates, which are deposited by the Administrator
with DTC and registered in the name of Cede&nbsp;&amp;&nbsp;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 Shareholders 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: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">DTC has advised us 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>


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    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B><A NAME="x6_c106800a011"></A>TRANSFER
OF SHARES</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 36pt"><FONT STYLE="text-transform: uppercase"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">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: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">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: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">DTC has advised us 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>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B><A NAME="x6_c106800a012"></A>PLAN
OF DISTRIBUTION</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 36pt"><FONT STYLE="text-transform: uppercase"><B>&nbsp;</B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">Most investors buy and sell
Shares of the Trust in secondary market transactions through brokers. Shares trade on the Exchange under the ticker symbol &ldquo;HODL.&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: 0; text-align: justify; text-indent: 0"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">The offering of the Trust&rsquo;s
Shares is a best efforts offering. The Trust continuously offers Creation Baskets consisting of 50,000 Shares to Authorized Participants.
Authorized Participants pay a transaction fee for each order they place to create or redeem one or more Creation Baskets.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">The offering of Creation
Baskets is being made in compliance with Rule 2310 of the FINRA Rules. 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: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">The per share price of shares
offered in Creation Baskets on any day will be the total NAV of the Trust calculated shortly after the close of the Exchange on
that day divided by the number of issued and outstanding Shares of the Trust. An Authorized Participant is not required to sell
any specific number or dollar amount of Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">By executing an Authorized
Participant Agreement, an Authorized Participant becomes part of the group of parties eligible to purchase Creation Baskets from,
and put Creation Baskets for redemption to, the Trust. An Authorized Participant is under no obligation to create or redeem Creation
Baskets or to offer to the public Shares of any Creation Basket it does create. The initial Authorized Participant is [ ], and
additional Authorized Participants as of the date hereof are: [ ].</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">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. For example, the initial Authorized
Participant will be a statutory underwriter with respect to the initial purchase of Creation Baskets. 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 Creation Basket from
the Trust, breaks the Creation 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: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">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(a)(3)(C) of the 1933 Act, would be unable to take advantage of the prospectus-delivery exemption provided by Section
4(a)(3) of the 1933 Act.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">While the Authorized Participants
may be indemnified by the Sponsor in certain circumstances as detailed in the Authorized Participant Agreement, they will not be
entitled to receive a discount or commission from the Trust or the Sponsor for their purchases of Creation Baskets.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">On [ ], 2023, [Van Eck Associates
Corporation] (the &ldquo;Seed Capital Investor&rdquo;), an affiliate of the Sponsor, subject to certain conditions, purchased [four]
Creation Baskets, comprising [200,000] Shares at a per-Share price equal to of $[50.00]. The price of bitcoin was determined using
the MarketVector<SUP>TM</SUP> Bitcoin Benchmark Rate on [ ], 2023. The price per-Share and bitcoin on [&nbsp;&nbsp;], 2023 were
$[ ] and [ ]th of a bitcoin, respectively. Total proceeds to the Trust from the sale of the Seed Creation Baskets were $[ ] bitcoins.
</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0"> </P>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Delivery of the seed Creation Baskets was made on December [ ], 2023. The Seed Capital Investor will act as a statutory underwriter
in connection with this purchase.]</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">The price of the seed Creation
Baskets was determined as described above and such Shares could be sold at different prices if sold by the Seed Capital Investor
at different times.</P>

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


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 36pt"><FONT STYLE="text-transform: uppercase"><B><A NAME="x6_c106800a013"></A>CREATION
AND REDEMPTION OF SHARES</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 36pt"><FONT STYLE="text-transform: uppercase"><B>&nbsp;</B></FONT></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">The Trust creates and redeems
Shares from time to time, but only in one or more Creation Baskets. Creation Baskets are only made in exchange for delivery to
the Trust of the amount of bitcoin represented by the Creation Baskets being created, or an amount of cash sufficient purchase
such amount of bitcoin, the amount of which is equal to the combined NAV of the number of Shares included in the Creation Baskets
being created determined as of 4:00 p.m. Eastern time on the day the order to create Creation Baskets is properly received. Baskets
are only redeemed in exchange for delivery to the Trust of the amount of Shares represented by the Creation Basket. For a redemption
in kind, the Trust, through the Bitcoin Custodian, will deliver bitcoin to the Designated third parties or affiliates of the Authorized
Participant (each, acting in such capacity, a &ldquo;Market Maker&rdquo;) in exchange for their Shares. For a redemption in cash,
the Sponsor shall arrange for the bitcoin represented by the Creation Basket to be sold and the cash proceeds distributed to the
Authorized Participant in exchange for their Shares. Based on the current price of bitcoin and corresponding size of the Creation
Baskets, the Sponsor does not believe such size will have a material impact on the arbitrage mechanism.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">Authorized Participants
are the only persons that may place orders to create and redeem Creation Baskets. Authorized Participants must be (1) registered
broker-dealers or other securities market participants, such as banks 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 with the Sponsor. The Authorized Participant Agreement
provides the procedures for the creation and redemption of Creation Baskets and for the delivery, or facilitation of the delivery,
of the bitcoin required for such creation and redemptions. The Authorized Participant Agreement and the related procedures attached
thereto may be amended by the Trust or the Sponsor (as the case may be), without the consent of any Shareholder or Authorized Participant.
Authorized Participants pay the Transfer Agent a fee for each order they place to create or redeem one or more Creation Baskets.
The transaction fee may be reduced, increased or otherwise changed by the Sponsor. Authorized Participants who make deposits (directly
in the case of cash creations and indirectly in the case of bitcoin deposits) with the Trust in exchange for Creation 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: 0; text-align: justify; text-indent: 0"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">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: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">The following description
of the procedures for the creation and redemption of Creation Baskets is only a summary and a Shareholder 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: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">Authorized Participants
will place orders through the Transfer Agent. The Transfer Agent will coordinate with the Sponsor, who will in turn coordinate
with the Trust&rsquo;s Bitcoin Custodian in order to facilitate settlement of the Shares and bitcoin as described in more detail
in the Creation Procedures and Redemption Procedures sections below.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">On any business day, an
Authorized Participant may place an order with the Transfer Agent to create one or more Creation Baskets. For purposes of processing
creation and redemption orders, a &ldquo;business day&rdquo; means any day other than a day when the Exchange is closed for regular
trading (&ldquo;Business Day&rdquo;). Purchase orders must be placed by 4:00 p.m. Eastern time, or the close of regular trading
on the Exchange, whichever is earlier. The day on which an order is received by the Transfer Agent is considered the purchase order
date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">By placing a purchase order,
an Authorized Participant agrees to facilitate the deposit of bitcoin by one or more Market Makers or cash with the Trust. For
in-kind deposits, the Market Maker will deliver the required bitcoin for the Authorized Participant&rsquo;s purchase order from
the Market Maker&rsquo;s account at the Trust&rsquo;s Bitcoin Custodian to the Trust&rsquo;s custodial account at the Bitcoin Custodian.
This transfer is an &ldquo;on-chain&rdquo; transaction that is represented on the bitcoin blockchain. For cash deposits, the Authorized
Participant will deliver the required cash (based off of the executions of the bitcoin purchase and inclusive of any trading costs)
for its purchase order to the Trust&rsquo;s Cash Custodian. Following receipt by the Cash Custodian of the cash from an Authorized
Participant, the Sponsor, on behalf of the Trust, will approve an order with one or more previously onboarded trading partners
(&ldquo;Liquidity Providers&rdquo;) to purchase the amount of bitcoin represented by the Creation Basket. This purchase of bitcoin
will normally be cleared through the Bitcoin Custodian (although the purchase may also occur directly with the trading partner)
and the bitcoin will settle directly into the Trust&rsquo;s</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0"> </P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">account at the Bitcoin Custodian in an &ldquo;on-chain&rdquo;
transaction. The Market Makers and Liquidity Partners will be required to maintain accounts at the Bitcoin Custodian.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">Prior to the delivery of
Creation Baskets for a purchase order, the Authorized Participant must also have wired to the Transfer Agent the nonrefundable
transaction fee due for the creation order to offset the transfer and other transaction costs associated with the issuance of the
Creation Basket. Authorized Participants may not withdraw a creation request. The manner by which creations are made is dictated
by the terms of the Authorized Participant Agreement. By placing a creation order, an Authorized Participant agrees to facilitate
the deposit of bitcoin with the Bitcoin Custodian or cash with the Cash Custodian, as the case may be. If an Authorized Participant
fails to consummate the foregoing, the order will be cancelled.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">The total deposit of bitcoin
or cash required to create each Creation Basket is an amount of bitcoin that is in the same proportion to the total assets of the
Trust, net of accrued expenses and other liabilities, on the date the order to purchase is properly received, as the number of
Shares to be created under the purchase order is in proportion to the total number of Shares outstanding on the date the order
is received. Each night, the Administrator will publish the amount of bitcoin or cash that will be required in exchange for each
creation order.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">Following an Authorized
Participant&rsquo;s purchase order, the Trust&rsquo;s Bitcoin Custodian account must be credited with the required bitcoin by the
end of the business day following the purchase order date, or the Trust&rsquo;s Cash Custodian account must be credited with the
required cash by the end of the business day following the purchase order date, as applicable. Upon receipt of the bitcoin deposit
amount in the Trust&rsquo;s Bitcoin Custodian account, or the cash deposit amount in the Trust&rsquo;s Cash Custodian account,
the Bitcoin Custodian or Cash Custodian, respectively, will notify the Transfer Agent, the Authorized Participant, and the Sponsor
that the bitcoin or cash has been deposited. The Transfer Agent will then direct DTC to credit the number of Shares created to
the applicable DTC account.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt"><FONT STYLE="background-color: white">No
Shares will be issued unless and until the Bitcoin Custodian (in the case of in-kind deposits) or Cash Custodian (in the case of
cash deposits) has informed the Transfer Agent that the bitcoin or cash (as applicable) has been received. Disruption of services
at the Bitcoin Custodian would have the potential to delay settlement of the bitcoin related to Share creations. To the extent
a Market Maker, on behalf of an Authorized Participant, is not able to deliver bitcoin associated with a purchase order as of a
specified time on the settlement date, the Sponsor or Transfer Agent will cancel the purchase order. [To the extent that bitcoin
transfers in connection with a creation order are delayed due to congestion or other issues with the Bitcoin network, such bitcoin
will not be held in cold storage in until such transfers can occur.]</FONT></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">Bitcoin held in the Trust&rsquo;s
Bitcoin Custodian account is the property of the Trust and is not traded, leased, or loaned under any circumstances.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">The total deposit required
to create each Creation Basket (&ldquo;Creation Basket Deposit&rdquo;) 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 Creation Basket Deposit (or the corresponding
quantity of cash needed to purchase such quantity of bitcoin) as appropriate to reflect accrued expenses. The computation is made
by the Administrator as promptly as practicable after 4:00 p.m. Eastern time. The Administrator determines the Creation Basket
Deposit 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 Trust Shares outstanding at the opening of business divided by
50,000. Fractions of a bitcoin smaller than 0.000001 are disregarded for purposes of the computation of the Creation Basket Deposit.
The Administrator also determines the cash amount needed to purchase the quantity of bitcoin required for a Creation Basket Deposit.
The Creation Basket Deposit 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 Creation Basket Deposit determined by
the Administrator as indicated above.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">An Authorized Participant
who places a purchase order must follow the procedures outlined in the &ldquo;Creation Procedures&rdquo; section of this Prospectus.
Upon receipt of the deposit amount, the Bitcoin Custodian (in the case of in-kind deposits) or Cash Custodian (in the case of cash
deposits) will notify the Transfer Agent that the bitcoin or cash (as applicable) has been received, and the Transfer Agent will
direct DTC to credit the number of Shares ordered to the applicable DTC account on the business day following the purchase order
date. Where the Authorized Participant has delivered cash, the Sponsor shall instruct the Cash Custodian to transfer the cash to
the Bitcoin Custodian, under the Clearing Agreement, to enable the Bitcoin Custodian to facilitate the purchase of bitcoin by the
Trust from Liquidity Providers required for the Creation Basket Deposit, followed by the transfer of such bitcoin to the Bitcoin
Custodian, in </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0"> </P>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">each case, at the Sponsor&rsquo;s instruction. The expense and risk of delivery and ownership of bitcoin or cash
until such bitcoin or cash has been received by the Bitcoin Custodian or Cash
Custodian (as applicable) on behalf of the Trust will be borne solely by the Authorized Participant, including the risk of loss
if the Trust is put in a position where it has to purchase bitcoin at a higher price than the value of the Creation Basket Deposit.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">The Sponsor or its designee
has the absolute right, but does not have any obligation, to reject any purchase order or Creation Basket Deposit if the Sponsor
determines that:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 36pt">&nbsp;</TD>
    <TD STYLE="width: 36pt"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD>
    <TD STYLE="text-align: justify">the purchase order or Creation Basket Deposit is not in proper form;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Symbol">&#183;</FONT></TD>
    <TD STYLE="text-align: justify">it would not be in the best interest of the Shareholders of the Trust;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Symbol">&#183;</FONT></TD>
    <TD STYLE="text-align: justify">the acceptance of the purchase order or the Creation Basket Deposit would have adverse tax consequences to the Trust or
    its Shareholders;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Symbol">&#183;</FONT></TD>
    <TD STYLE="text-align: justify">the acceptance or receipt of the purchase order or the Creation Basket Deposit would, in the opinion of counsel to the
    Sponsor, be unlawful; or</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Symbol">&#183;</FONT></TD>
    <TD STYLE="text-align: justify">circumstances outside the control of the Trust, the Sponsor, the Marketing Agent or the Bitcoin Custodian or Cash Custodian
    make it, for all practical purposes, not feasible to process Creations 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="font: 10pt Times New Roman, Times, Serif; margin: 0; color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">None of the Sponsor, the
Transfer Agent, the Bitcoin Custodian or the Cash Custodian will be liable for the rejection of any purchase order or Creation
Basket Deposit.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">The procedures by which
an Authorized Participant can redeem one or more Creation Baskets mirror the procedures for the creation of Creation Baskets with
an additional safeguard on bitcoin or cash being removed from the Trust&rsquo;s Bitcoin Custodian or Cash Custodian account. On
any business day, an Authorized Participant may place an order with the Transfer Agent to redeem one or more Creation Baskets.
Redemption orders must be placed by 4:00 p.m. Eastern time, or the close of regular trading on the Exchange, whichever is earlier.
A redemption order will be effective on the date it is received by the Transfer Agent (&ldquo;Redemption Order Date&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">The redemption distribution
from the Trust consists of a movement of bitcoin representing the amount of bitcoin held by the Trust evidenced by the Shares being
redeemed or the cash proceeds of a sale of such bitcoin on the redemption order date. The redemption distribution due from the
Trust (based off of the executions of the bitcoin sale and inclusive of any trading costs) will be delivered once the Transfer
Agent notifies the Bitcoin Custodian or Cash Custodian (as applicable) and the Sponsor that the Authorized Participant has delivered
the Shares represented by the Creation Baskets to be redeemed to the Trust&rsquo;s DTC account. If the Trust&rsquo;s DTC account
has not been credited with all of the Shares of the Creation Baskets to be redeemed, the redemption distribution will be delayed
until such time as the Transfer Agent confirms receipt of all such Shares. For in-kind redemptions, the Bitcoin Custodian will
transfer the bitcoin evidenced by the Shares being redeemed to the Market Maker&rsquo;s account with the Bitcoin Custodian. This
transfer is an &ldquo;on-chain&rdquo; transaction that is represented on the bitcoin blockchain.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">Once the Transfer Agent
notifies the Bitcoin Custodian or Cash Custodian (as applicable), the Sponsor and the Administrator that the Shares have been received
in the Trust&rsquo;s DTC account, the Administrator instructs the Bitcoin Custodian or Cash Custodian (as applicable) to transfer
the redemption bitcoin or cash amount from the Trust&rsquo;s Bitcoin Custodian or Cash Custodian account to the Authorized Participant.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">Bitcoin held in the Trust&rsquo;s
Bitcoin Custodian account is the property of the Trust and is not traded, leased, or loaned under any circumstances.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">The redemption distribution
from the Trust will consist of an amount of bitcoin (or the cash proceeds of the sale of such an amount of bitcoin) that is determined
in the same manner as the determination of Creation Basket Deposits discussed above.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">The redemption
distribution in bitcoin or cash due from the Trust will be delivered on the business day following the Redemption Order Date
if the Trust&rsquo;s DTC account has been credited with the Creation Baskets to be redeemed. Where the Authorized Participant
has requested a redemption distribution in cash, the Sponsor shall instruct the Bitcoin Custodian to transfer the bitcoin
corresponding to the Creation Basket being redeemed to the Liquidity Provider, using Gemini Clearing (as defined in the
Clearing Agreement), to enable the Bitcoin Custodian to facilitate the sale of such bitcoin to the Liquidity Provider for
cash, followed by the distribution of such cash proceeds to the Authorized Participant, in each case, at the Sponsor&rsquo;s
instruction. If the Trust&rsquo;s DTC account has not been credited with all of the Creation Baskets to be redeemed by such
time, the redemption distribution will also be delayed.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Suspension or Rejection of Redemption Orders</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">The Sponsor may, in its discretion, suspend
the right of redemption, or postpone the redemption settlement date, (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) for any period during which
an emergency exists as a result of which delivery, disposal or evaluation of bitcoin is not reasonably practicable, or (3) for
such other period as the Sponsor determines to be necessary for the protection of the 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 or an unanticipated
delay in the liquidation of a position in an over the counter contract, it may be appropriate to suspend redemptions until such
time as such circumstances are rectified. If any of these events occurs at a time when an Authorized Participant intends to redeem
Shares, and the price of bitcoin decreases before such Authorized Participant is able to complete such redemption order, such Authorized
Participant may sustain a loss with respect to the amount that it would have been able to obtain in exchange for the bitcoin received
from the Trust upon the redemption of its Shares, had the redemption taken place when such Authorized Participant originally intended
it to occur. As a consequence, Authorized Participants may reduce their trading in Shares during periods of suspension, decreasing
the number of potential buyers of Shares in the secondary market and, therefore, decreasing the price a Shareholder may receive
upon sale. None of the Sponsor, the person authorized to take redemption orders in the manner provided in the Authorized Participant
Agreement, or the 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: 0; text-align: justify; text-indent: 0"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">Redemption orders must be
made in whole Creation 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 [&nbsp;&nbsp;] Shares (i.e., [&nbsp;&nbsp;] Creation Baskets) or
less.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">The Marketing Agent shall
notify the Authorized Participant of a rejection or suspension of any redemption order. The Marketing Agent is under no duty, however,
to give notification of any specific defects or irregularities nor shall the Marketing Agent or the Trust incur any liability for
the failure to give any such notification. The Trust and the Marketing Agent may not revoke a previously accepted redemption order.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Creation and Redemption Transaction Fee</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">To compensate the Transfer
Agent for expenses incurred in connection with the creation and redemption of Creation Baskets, an Authorized Participant is required
to pay a transaction fee to the Transfer Agent to create or redeem Creation Baskets, which does not vary in accordance with number
of Creation Baskets in such order. The transaction fee may be reduced, increased or otherwise changed by the Sponsor. The Sponsor
will notify DTC of any change in the transaction fee and will not implement any increase in the fee for the redemption of baskets
until thirty (30) days after the date of notice.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">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 Creation 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: 0; text-align: justify">&nbsp;</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Secondary Market Transactions</B></P>
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    <!-- Field: /Page -->





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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">As noted, the Trust will
create and redeem Shares from time to time, but only in one or more Creation Baskets. The creation and redemption of Creation Baskets
are only made in exchange for delivery to the Trust or the distribution by the Trust of the amount of bitcoin (or corresponding
amount of cash) equal to the number of Shares included in the Creation Baskets being created or redeemed determined on the day
the order to create or redeem Creation Baskets is properly received.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">As discussed above,
Authorized Participants are the only persons that may place orders to create and redeem Creation Baskets. 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 Creation Baskets, and an Authorized Participant is under no obligation
to offer to the public Shares of any Creation Baskets it does create.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">Authorized Participants
that do offer to the public Shares from the Creation Baskets 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 Creation 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. Creation Baskets are
generally redeemed when the price per Share is at a discount to the NAV per Share. Shares initially comprising the same Creation
Basket but offered by Authorized Participants to the public at different times may have different offering prices. An order for
one or more Creation Baskets may be placed by an Authorized Participant on behalf of multiple clients. Authorized Participants
who make deposits with the Trust in exchange for Creation 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. Shares trade in the secondary market on the Exchange.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">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 Shareholders who seek to purchase or sell Shares in the secondary market and the liquidity
of bitcoin.</P>


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    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B><A NAME="x6_c106800a014"></A>USE
OF PROCEEDS</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="text-transform: uppercase"><B>&nbsp;</B></FONT></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">Proceeds received by the
Trust from the issuance of Creation Baskets consist of bitcoin or cash. Deposits of bitcoin are held by the Bitcoin Custodian on
behalf of the Trust. Deposits of cash are delivered to the Cash Custodian, following which the Sponsor shall instruct the Cash
Custodian to transfer the cash to the Bitcoin Custodian to enable the Bitcoin Custodian to facilitate the purchase of bitcoin from
Liquidity Providers, followed by the transfer of such bitcoin to the Bitcoin Custodian, in each case, at the Sponsor&rsquo;s instruction.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0"> </P>

<!-- Field: Page; Sequence: 20; Value: 65 -->
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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 10pt"><P STYLE="margin: 0pt"><PAGE></PAGE></P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B><A NAME="x6_c106800a015"></A>OWNERSHIP
OR BENEFICIAL INTEREST IN THE TRUST</B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">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: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">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. Every Shareholder, by virtue of having purchased or acquired a Share, shall have expressly
consented and agreed to be bound by the terms of the Trust Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">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>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B><A NAME="x6_c106800a016"></A>CONFLICTS
OF INTEREST</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 36pt"><FONT STYLE="text-transform: uppercase"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">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 objective.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">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 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: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">The Sponsor has the 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 your best interests. Shareholders have very limited 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: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">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 other funds its affiliates may manage. In addition, the Sponsor may be required to indemnify its
officers, directors and key employees with respect to their activities on behalf of 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: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">Affiliates of the Sponsor,
including Van Eck Associates Corporation, have and may in the future issue various exchange traded products and other pooled investment
vehicles that provide exposure to certain digital assets in US and non-US jurisdictions. In addition, the Sponsor&rsquo;s affiliates
may engage in trading of bitcoin across affiliates. The Sponsor has adopted and implemented policies and procedures that are reasonably
designed to ensure compliance with applicable law, including a Compliance Manual and Code of Ethics, which address conflicts of
interest. Additionally, the Sponsor has adopted policies and procedures requiring that certain personnel pre-clear trading activity
in certain digital assets, including bitcoin. The Sponsor believes that these pre-clearance requirements, in addition to other
controls, are reasonably designed to mitigate the risk of conflicts of interest and other impermissible activity.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">The Sponsor and affiliates
thereof may participate in transactions related to bitcoin, either for their own account (subject to certain internal employee
trading operating practices) or for the account of others, such as clients, and such transactions may occur prior to, during, or
after the commencement of this offering. Such transactions may not serve to benefit the Shareholders of the Trust and may have
a positive or negative effect on the value of the bitcoin held by the Trust and, consequently, on the market value of bitcoin.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">Because these parties may
trade bitcoin for their own accounts at the same time as the Trust, prospective Shareholders should be aware that such persons
may take positions in bitcoin which are opposite, or ahead of, the positions taken for the Trust. There can be no assurance that
any of the foregoing will not have an adverse effect on the performance of the Trust.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">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: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">MarketVector is the index
sponsor and index administrator for the MarketVector<SUP>TM</SUP> Bitcoin Benchmark Rate and a wholly-owned subsidiary of VanEck,
which may create conflicts of interest as a result of such relationship. In addition, CryptoCompare Data Limited is the calculation
agent for the MarketVector<SUP>TM</SUP> Bitcoin Benchmark Rate and an affiliate of VanEck. Appropriate procedures have been implemented
to avoid any conflicts of interest adversely affecting the interests of Shareholders. However, Shareholders should be aware that
MarketVector has not taken the interests of the Shareholders into consideration when creating the MarketVector<SUP>TM </SUP>Bitcoin
Benchmark Rate, and MarketVector will have no obligation to take the interests of the Shareholders into account when maintaining,
modifying, rebalancing, reconstituting or discontinuing the MarketVector<SUP>TM </SUP>Bitcoin Benchmark Rate. Actions taken by
MarketVector<SUP>TM</SUP> in respect of the MarketVector<SUP>TM </SUP>Bitcoin Benchmark Rate may have an adverse impact on the
value or liquidity of the Shares. The interests of MarketVector and the Shareholders may not be aligned. MarketVector will have
no responsibility or liability to the Shareholders.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">[&nbsp;&nbsp;&nbsp;] is
a minority interest holder in Gemini Trust Company, LLC, which is the Bitcoin Custodian, representing less than [&nbsp;&nbsp;&nbsp;]%
of its equity. The Bitcoin Custodian serves as a fiduciary and custodian on the Trust&rsquo;s behalf, and is responsible for safeguarding
the</P>


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    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">bitcoin and any forked assets received by the
Trust, and holding the private keys that provide access to the bitcoin in the Trust&rsquo;s Bitcoin Account.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">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>


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    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B><A NAME="x6_c106800a017"></A>DUTIES
OF THE SPONSOR</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 36pt"><FONT STYLE="text-transform: uppercase"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">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 replaced entirely 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: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">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: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 36pt">&nbsp;</TD>
    <TD STYLE="width: 36pt"><FONT STYLE="font-family: Symbol">&#183;</FONT></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>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Symbol">&#183;</FONT></TD>
    <TD STYLE="text-align: justify">retain independent public accountants to audit the accounts of the Trust;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Symbol">&#183;</FONT></TD>
    <TD STYLE="text-align: justify">employ attorneys to represent the Trust;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Symbol">&#183;</FONT></TD>
    <TD STYLE="text-align: justify">select the Trust&rsquo;s Trustee, administrator, transfer agent, custodian(s), bitcoin exchange counterparties and OTC
    market participant counterparties, index 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>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Symbol">&#183;</FONT></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>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Symbol">&#183;</FONT></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>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Symbol">&#183;</FONT></TD>
    <TD STYLE="text-align: justify">maintain the Trust&rsquo;s website;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD> </TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Symbol">&#183;</FONT></TD>
    <TD STYLE="text-align: justify">acquire and sell bitcoin, which may be facilitated by the Bitcoin Custodian, with a view to providing Shareholders with
    exposure to bitcoin at a price that reflects the performance of the price of bitcoin less the expenses of the Trust&rsquo;s
    operations, valuing the Trust&rsquo;s Shares daily based on the reported MarketVector<SUP>TM </SUP>Bitcoin Benchmark Rate,
    or any other pricing or valuation methodology adopted by the Sponsor in its discretion (for the avoidance of doubt, the Sponsor
    may select such subsequent pricing or valuation methodology without Shareholder approval);</TD></TR>
<TR STYLE="vertical-align: top">
    <TD> </TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Symbol">&#183;</FONT></TD>
    <TD STYLE="text-align: justify">determine the Trust&rsquo;s NAV and NAV per Share, and select, remove, change, or replace the pricing or valuation methodology
    or policies used to value the Trust&rsquo;s assets and determine NAV and NAV per Share, in its sole discretion;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Symbol">&#183;</FONT></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>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Symbol">&#183;</FONT></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 purchase orders, as described in the Trust Agreement and in the Authorized Participant Agreement;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Symbol">&#183;</FONT></TD>
    <TD STYLE="text-align: justify">in connection with purchase orders, receive directly or through its delegates the number of bitcoin and/or cash in an
    amount equal to the Creation Basket Deposit from Authorized Participants;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Symbol">&#183;</FONT></TD>
    <TD STYLE="text-align: justify">in connection with purchase orders, after accepting an Authorized Participant&rsquo;s purchase order and receiving bitcoin
    in an amount equal to the Creation Basket Deposit, or the amount of cash needed to purchase the quantity of bitcoin corresponding
    to the Creation Basket Deposit, the Sponsor or its delegate will direct the Trust&rsquo;s appointed transfer agent to credit
    the Creation Baskets to fill the</TD></TR>
</TABLE>

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 10pt"><P STYLE="margin: 0pt"><PAGE></PAGE></P></DIV>
    <!-- Field: /Page -->

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 36pt">&nbsp;</TD>
    <TD STYLE="width: 36pt">&nbsp;</TD>
    <TD STYLE="text-align: justify">Participant&rsquo;s purchase order within one Business Day immediately following the receipt of bitcoin
    and/or cash;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Symbol">&#183;</FONT></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>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Symbol">&#183;</FONT></TD>
    <TD STYLE="text-align: justify">in connection with redemption orders, after receiving the redemption order specifying the number of Creation Baskets that
    the Authorized Participant wishes to redeem and after the Trust&rsquo;s DTC account has been credited with the Creation Baskets
    to be redeemed, the Sponsor or its delegates will transfer to the redeeming Authorized Participant: i) in the case of an in-kind
    redemption, an amount of bitcoin equal to the amount of bitcoin represented by the Creation Baskets being redeemed; ii) in
    the case of a redemption for cash, the cash proceeds of the sale of such bitcoin;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Symbol">&#183;</FONT></TD>
    <TD STYLE="text-align: justify">the Sponsor will, if permitted by the terms of the Trust Agreement, use its discretion to determine, in good faith, which
    peer-to-peer 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;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Symbol">&#183;</FONT></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>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Symbol">&#183;</FONT></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 United States, any
    State or political subdivision thereof, or other jurisdiction having taxing authority in respect of the Trust or its administration;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Symbol">&#183;</FONT></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>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Symbol">&#183;</FONT></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>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Symbol">&#183;</FONT></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="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 72pt; text-align: justify; text-indent: -36pt; color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">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>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B><A NAME="x6_c106800a018"></A>LIABILITY
AND INDEMNIFICATION</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 36pt"><FONT STYLE="text-transform: uppercase"><B>&nbsp;</B></FONT></P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">The Trustee will not be
liable for the acts or omissions of the Sponsor, the Transfer Agent or any other person, nor will the Trustee be liable for supervising
or monitoring the performance and the duties and obligations of the Sponsor, the Transfer Agent, the Trust or any other person
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: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 36pt"></TD><TD STYLE="width: 36pt">(a)</TD><TD STYLE="text-align: justify">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;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 72pt; text-align: justify; text-indent: -36pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 36pt"></TD><TD STYLE="width: 36pt">(b)</TD><TD STYLE="text-align: justify">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;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 72pt; text-align: justify; text-indent: -36pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 36pt"></TD><TD STYLE="width: 36pt">(c)</TD><TD STYLE="text-align: justify">under no circumstances will the Trustee be personally liable for any representation, warranty,
covenant, agreement, or indebtedness of the Trust;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 72pt; text-align: justify; text-indent: -36pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 36pt"></TD><TD STYLE="width: 36pt">(d)</TD><TD STYLE="text-align: justify">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;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 72pt; text-align: justify; text-indent: -36pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 36pt"></TD><TD STYLE="width: 36pt">(e)</TD><TD STYLE="text-align: justify">the Trustee has not prepared or verified, and shall have no duty, responsibility or obligation
or any liability therefore, for any information, disclosure, or other statement in any memorandum or other documents issued in
connection with the sale or transfer of any Shares;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 72pt; text-align: justify; text-indent: -36pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 36pt"></TD><TD STYLE="width: 36pt">(f)</TD><TD STYLE="text-align: justify">the Trustee will not be liable or any actions taken or omitted to be taken by it in accordance
with the written instructions of the Sponsor;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 72pt; text-align: justify; text-indent: -36pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 36pt"></TD><TD STYLE="width: 36pt">(g)</TD><TD STYLE="text-align: justify">the Trustee will be under no obligation to exercise any of the rights or powers vested in it by
the Trust Agreement, or to institute, conduct or defend any litigation under the Trust Agreement or any other agreements to which
the Trust is a party, at the request, order or direction of the Sponsor unless the Sponsor has offered Delaware Trust Company (in
its individual capacity and in its capacity as Trustee) security or indemnity satisfactory to it against the costs, expenses and
liabilities that may be incurred by it (including, without limitation, the reasonable fees and expenses of its counsel) therein
or thereby;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 72pt; text-align: justify; text-indent: -36pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 36pt"></TD><TD STYLE="width: 36pt">(h)</TD><TD STYLE="text-align: justify">Notwithstanding anything contained herein to the contrary, the Trustee will not be required to
take any action in any jurisdiction other than in the State of Delaware if the taking of such action would (i) require the consent,
approval, authorization or order of, giving of notice to, or the registration with or taking any action in respect of, any state
or other governmental authority or agency of any jurisdiction other than the State of Delaware, (ii) result in any fee, tax or
other governmental charge becoming payable by the Trustee under the laws of any jurisdiction or any political subdivision thereof
other than the State of Delaware, or (iii) subject the Trustee to personal jurisdiction, other than in the State of Delaware, for
causes of action arising from personal acts unrelated to the consummation of the actions of the trustee contemplated by this Trust
Agreement;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 72pt; text-align: justify; text-indent: -36pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 36pt"></TD><TD STYLE="width: 36pt">(i)</TD><TD STYLE="text-align: justify">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,</TD></TR></TABLE>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 72pt; text-align: justify">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: 0 0 0 36pt; 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: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 36pt"></TD><TD STYLE="width: 36pt">(j)</TD><TD STYLE="text-align: justify">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;</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 36pt"></TD><TD STYLE="width: 36pt">(k)</TD><TD STYLE="text-align: justify">except as expressly provided in Article [&nbsp;&nbsp;] 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</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 36pt"></TD><TD STYLE="width: 36pt">(l)</TD><TD STYLE="text-align: justify">the Trustee will not be liable for punitive, exemplary, consequential, special or other similar
damages under any circumstances.</TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">The Trustee, in its individual
capacity and in its capacity as 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;Expenses&rdquo;), to the extent that such Expenses
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 Expenses 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: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">The Sponsor will not be
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: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">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: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">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 </P>

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    <!-- Field: /Page -->

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


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B><A NAME="x6_c106800a019"></A>PROVISIONS
OF LAW</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 36pt"><FONT STYLE="text-transform: uppercase"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">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: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Provisions of Federal and State Securities
Laws</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">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: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">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>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B><A NAME="x6_c106800a020"></A>MANAGEMENT;
VOTING BY SHAREHOLDERS</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 36pt"><FONT STYLE="text-transform: uppercase"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">The Shareholders of the
Trust take no part in the management or control, and have no voice in, the Trust&rsquo;s operations or business. Except in limited
circumstances, Shareholders have no voting rights under the Trust Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">The Sponsor generally has
the right to amend the Trust Agreement as it applies to the Trust provided that the Shareholders have the right to vote only if
expressly required under Delaware or federal law or rules or regulations of the Exchange, or if submitted to the Shareholders by
the Sponsor in its sole discretion. No amendment affecting the Trustee will be binding upon or effective against the Trustee unless
consented to by the Trustee in the form of an instruction letter.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">The Trust does not have
any directors, officers or employees. The creation and operation of the Trust has been arranged by the Sponsor. The Sponsor is
not governed by a board of directors. The following persons, in their respective capacities as directors or executive officers
of the Sponsor perform certain functions with respect to the Trust that, if the Trust had directors or executive officers, would
typically be performed by them. The principals and executive officers of the Sponsor are as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 36pt; text-align: justify"><I>Jan F. van Eck</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 36pt; text-align: justify; text-indent: 0.5in"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">Mr. van Eck, age [&nbsp;&nbsp;],
serves as the Chief Executive Officer and President of the Sponsor and VanEck. Mr. van Eck joined VanEck in 1992 and its Executive
Management Team in 1998. Additionally, he is the President and CEO of Van Eck Securities Corporation. Furthermore, Mr. van Eck
is a Trustee, the President and Chief Executive Officer of VanEck Vectors ETF Trust, VanEck Funds and VanEck VIP Trust. Furthering
VanEck&rsquo;s mission to anticipate asset classes and trends, Mr. van Eck has created strategic beta, tactical allocation, emerging
markets, and commodity-related investment strategies in mutual fund, ETF, and institutional formats. Mr. van Eck founded the VanEck&rsquo;s
ETF business in 2006. One of the world&rsquo;s largest ETF sponsors, the Van Eck offers ETFs, branded VanEck Vectors&reg;, globally
across equity and fixed income asset classes. Mr. van Eck holds a JD from Stanford University and graduated Phi Beta Kappa from
Williams College with a major in Economics. He has registrations with the National Futures Association and the Financial Industry
Regulatory Authority. Mr. van Eck is a Director of the National Committee on United States-China Relations. He routinely appears
on CNBC and Bloomberg Television, and was a 2013 Finalist for Institutional Investor&rsquo;s Fund Leader of the Year and a 2019
finalist for ETF.com&rsquo;s Lifetime Achievement Award.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 36pt; text-align: justify"><I>John J. Crimmins</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 36pt; text-align: justify; text-indent: 0.5in"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">[&nbsp;&nbsp;].</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B><A NAME="x6_c106800a021"></A>BOOKS
AND RECORDS</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 36pt"><FONT STYLE="text-transform: uppercase"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">The Trust keeps its books
of record and account at the office of the Sponsor located at 666 Third Avenue, 9<SUP>th</SUP> Floor, New York, New York 10017,
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: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">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>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B><A NAME="x6_c106800a022"></A>STATEMENTS,
FILINGS, AND REPORTS TO SHAREHOLDERS</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 36pt"><FONT STYLE="text-transform: uppercase"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">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: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">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: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">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>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B><A NAME="x6_c106800a023"></A>FISCAL
YEAR</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 36pt"><FONT STYLE="text-transform: uppercase"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">The fiscal year of the Trust
is the calendar year. The Sponsor may select an alternate fiscal year.</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B><A NAME="x6_c106800a024"></A>GOVERNING
LAW; CONSENT TO DELAWARE JURISDICTION</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 36pt"><FONT STYLE="text-transform: uppercase"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">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 and the Trust.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">Section 22 of the Securities
Act creates concurrent jurisdiction for federal and state courts over all suits brought to enforce any duty or liability created
by the Securities 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: 0; text-align: justify"> </P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B><A NAME="x6_c106800a025"></A>LEGAL MATTERS</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 36pt"><FONT STYLE="text-transform: uppercase"><B>&nbsp;</B></FONT></P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">Within the past five 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: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">Clifford Chance US LLP has
advised the Sponsor in connection with the Shares being offered. Clifford Chance US 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 will be filed
with the SEC as exhibits to the Registration Statement of which this Prospectus is a part.</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B><A NAME="x6_c106800a026"></A>EXPERTS</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 36pt"><FONT STYLE="text-transform: uppercase"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">The financial statements
of the VanEck Bitcoin Trust will be included herein in reliance on the report of [&nbsp;&nbsp;&nbsp;], an independent registered
public accounting firm, given on the authority of said firm as experts in auditing and accounting.</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B><A NAME="x6_c106800a027"></A>MATERIAL
CONTRACTS</B></FONT></P>

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

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">For more information, see
the description of the Administration and Accounting Agreement provided in &ldquo;THE TRUST&rsquo;S SERVICE PROVIDERS&mdash;The Administrator&rdquo;
above.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">For more information, see
the description of The Clearing Agreement provided in &ldquo;THE TRUST&rsquo;S SERVICE PROVIDERS&mdash;The Clearing Agreement &ndash;
The Bitcoin Custodian&rsquo;s Role&rdquo;.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">For more information, see
the description of the Custodial Services Agreement provided in &ldquo;THE TRUST&rsquo;S SERVICE PROVIDERS&mdash;The Bitcoin Custodian&rdquo;
above.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 36pt"><FONT STYLE="text-transform: uppercase"><B>&nbsp;</B></FONT>&nbsp;</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">On October 25, 2023, the
Trust entered into a transfer agency and service agreement (the &ldquo;Transfer Agency Agreement&rdquo;) with State Street.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">Pursuant to the Transfer
Agency Agreement, the Transfer Agent is generally responsible for the day-to-day administration of the Trust. The responsibilities
of the Transfer Agent include: (i) establishing and maintaining each Authorized Participant&rsquo;s account in the Fund; (ii) receiving
and processing orders for the purchase of creation units from the Sponsor or Trust and deliver any cash payment to the custodian;
(iii) receiving and processing redemption requests and directions from the Sponsor or Trust; and (iv) recording the issuance of
Shares of the Trust and maintaining a record of the total number of Shares of the Trust which are issued and outstanding, based
upon data provided to it by the Trust.</P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0; background-color: white; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">The Transfer Agreement
will have a one-year initial term and will automatically be renewed for successive one year periods, unless terminated pursuant
to the terms of the agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white"> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">On [&nbsp;&nbsp;], 2023,
the Trust entered into a marketing agent agreement (the &ldquo;Marketing Agreement&rdquo;) with the Sponsor and the Marketing Agent.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">Under the Marketing Agreement,
the Sponsor has agreed to develop and prepare, subject to the review and written approval of the Marketing Agent, marketing materials
for the Trust, which will comply with all applicable laws, rules and regulations in all material respects. The Sponsor shall prepare
and make all regulatory filings for all marketing materials prepared by either party on a timely basis.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">The Marketing Agreement
also provides that the Marketing Agent shall develop and prepare, subject to the review and written approval of the Sponsor, marketing
materials for the Trust, which will comply with all applicable laws, rules and regulations in all material respects. If the Marketing
Agent becomes the sponsor of the trust, it shall prepare and make all regulatory filings for all marketing materials prepared by
either party on a timely basis.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">The Marketing Agent will
use its best efforts to market the Shares in accordance with the terms of the Marketing Agreement. In addition, the Marketing Agent
will develop a &ldquo;landing page&rdquo; for the Trust, which can be part of an existing non-exclusive website. The website may
include, among other things, sales material, prospectuses, and closing prices.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">On [&nbsp;&nbsp;], 2023,
the Trust entered into an index sublicense agreement (the &ldquo;Sublicense Agreement&rdquo;) with the Sponsor, pursuant to which
the Sponsor has granted the Trust a transferable, worldwide license to use (i) the MarketVector&trade; Bitcoin Benchmark Rate and
(ii) the trade name and service mark rights to &ldquo;Market Vector&rdquo;. The Sublicense Agreement is effective for three years
and shall automatically renew for successive one-year terms unless the Trust terminates the agreement in accordance with the terms
of the Sublicense Agreement or provides notice of its intent to not renew the Sublicense Agreement.</P>

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


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B><A NAME="x6_c106800a028"></A>UNITED
STATES FEDERAL INCOME TAX CONSEQUENCES</B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">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) 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 Clifford Chance US LLP, special U.S. federal income
tax counsel to the Sponsor. The discussion below is based on the Code, 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 required for U.S. federal
income tax purposes to accelerate the recognition of any item of gross income with respect to the Shares as a result of such income
being recognized on an applicable financial statement, Shareholders who do not acquire their Shares solely for cash, 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; (generally, property held for investment). Moreover, the
discussion below does not address the effect of any state, local or foreign tax law consequences (or any consequences under any
U.S. federal tax law other than U.S. federal income tax law) that may apply to an investment in Shares. Purchasers of Shares are
urged to consult their own tax advisers with respect to all U.S. 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: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">For purposes of this discussion,
a &ldquo;U.S. Shareholder&rdquo; is a Shareholder that is for U.S. federal income tax purposes:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 36pt"></TD><TD STYLE="width: 36pt"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">an individual who is a citizen or resident of the United States;</TD></TR>                                                                                                                                                                                                                   <TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD><FONT STYLE="font-family: Symbol">&#183;</FONT></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 United States, any state thereof or the District of Columbia;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 72pt; text-indent: -36pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 36pt"></TD><TD STYLE="width: 36pt"><FONT STYLE="font-family: Symbol">&#183;</FONT></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="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 72pt; text-indent: -36pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 36pt"></TD><TD STYLE="width: 36pt"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">a trust, if a court within the United States is able to exercise primary supervision over the administration
of the trust and one or more United States persons have the authority to control all substantial decisions of the trust.</TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">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: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">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 Clifford Chance US
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 IRS
on that basis. The opinion of Clifford Chance US LLP 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. 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. However, due to the uncertain treatment of digital currency for
U.S. federal income tax purposes, there can be no assurance in this regard. Except as otherwise indicated, the remainder of this
discussion assumes that the Trust is classified as a grantor trust for U.S. federal income tax purposes.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Taxation of U.S. Shareholders</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">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
its Shares as part of the creation of a Creation Basket, 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: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">Current IRS guidance on
the treatment of convertible virtual currencies classifies bitcoin as &ldquo;property&rdquo; that is not currency for U.S. federal
income tax purposes and clarifies that bitcoin could be held as a capital asset, but it does not address several other aspects
of the U.S. federal income tax treatment of bitcoin. Because bitcoin is a new technological innovation, the U.S. federal income
tax treatment of bitcoin or transactions relating to investments in bitcoin may evolve and change from those discussed below, possibly
with retroactive effect. In this regard, the IRS indicated that it has made it a priority to issue additional guidance related
to the taxation of virtual currency transactions, such as transactions involving bitcoin. While it has started to issue such additional
guidance, whether any future 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. Moreover, future developments that may arise with respect to digital
currencies may increase the uncertainty with respect to the treatment of digital currencies for U.S. federal income tax purposes.
This discussion assumes that any bitcoin 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 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: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">Although the Trust generally
does not intend to sell bitcoin, it may use bitcoin to pay certain expenses of the Trust, which under current IRS guidance will
be treated as a sale of such bitcoin, and/or it may periodically sell bitcoin in an amount sufficient to pay those expenses using
fiat currency. 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: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">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 of greater than one year in its pro rata share of the bitcoin that was sold. The Trust plans to treat a redemption
of a some or all of a Shareholder&rsquo;s Shares, in exchange for cash, in the same manner as a sale of some or all of a Shareholder&rsquo;s
Shares (as described above) for that amount of cash, though no assurance can be provided that the IRS will not take a different
position.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">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: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">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>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">If a hard fork occurs in
the Bitcoin Blockchain, the Trust could hold both the original bitcoin and the alternative new asset. The IRS has held that a hard
fork resulting in the creation of new units of cryptocurrency is a taxable event giving rise to ordinary income. Moreover, the
Trust Agreement requires that, if such a transaction occurs, the Trust will as soon as possible, and subject to the Custody Agreement,
direct the Bitcoin Custodian to distribute the alternative new asset in-kind to the Sponsor, as agent for the Shareholders, and
the Sponsor will arrange to sell the new alternative asset and for the proceeds to be distributed to the Shareholders. The receipt,
distribution and/or sale of the new alternative asset may cause Shareholders to incur a U.S. federal income tax liability. While
the IRS has not addressed all situations in which airdrops occur, it is clear from the reasoning of the IRS&rsquo;s current guidance
that it 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: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>3.8% Tax on Net Investment Income</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">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 ($250,000 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: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Brokerage Fees and Trust Expenses</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">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: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">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.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">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: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Investment by Certain Retirement Plans</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">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: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>United States Information Reporting and
Backup Withholding</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">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 United States backup
withholding tax in certain circumstances unless it provides its taxpayer identification number and complies with certain certification
procedures. 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: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">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: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Taxation in Jurisdictions Other Than the
United States</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">Prospective purchasers of
Shares that are based in or acting out of a jurisdiction other than the United States 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 United States to which
they are subject) of their purchase, holding, sale and redemption of or any other dealing in Shares and, in </P>

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    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">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: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt"><B>PROSPECTIVE SHAREHOLDERS
ARE URGED TO CONSULT THEIR TAX ADVISERS BEFORE DECIDING WHETHER TO INVEST IN THE SHARES OF THE TRUST.</B></P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B><A NAME="x6_c106800a029"></A>PURCHASES
BY EMPLOYEE BENEFIT PLANS</B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">The Employee Retirement
Income Security Act of 1974 (&ldquo;ERISA&rdquo;) and/or Section 4975 of the Code impose certain requirements on: (i) employee
benefit plans and certain other plans and arrangements, including individual retirement accounts and annuities, Keogh plans and
certain collective investment funds or insurance company general or separate accounts in which such plans or arrangements are invested,
that are subject to Title I of ERISA and/or Section 4975 of the Code (collectively, &ldquo;Plans&rdquo;); and (ii) persons who
are fiduciaries with respect to the investment of assets treated as &ldquo;plan assets&rdquo; within the meaning of U.S. Department
of Labor (the &ldquo;DOL&rdquo;) regulation 29 C.F.R. &sect; 2510.3-101, as modified by Section 3(42) of ERISA (the &ldquo;Plan
Assets Regulation&rdquo;), of a Plan. Investments by Plans are subject to the fiduciary requirements and the applicability of prohibited
transaction restrictions under ERISA and the Code.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&ldquo;Governmental plans&rdquo;
within the meaning of Section 3(32) of ERISA, certain &ldquo;church plans&rdquo; within the meaning of Section 3(33) of ERISA and
&ldquo;non-U.S. plans&rdquo; described in Section 4(b)(4) of ERISA, while not subject to the fiduciary responsibility and prohibited
transaction provisions of Title I of ERISA or Section 4975 of the Code, may be subject to any federal, state, local, non-U.S. or
other law or regulation that is substantially similar to the foregoing provisions of ERISA and the Code. Fiduciaries of any such
plans are advised to consult with their counsel prior to an investment in the Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">In contemplating an investment
of a portion of Plan assets in the Shares, the Plan fiduciary responsible for making such investment should carefully consider,
taking into account the facts and circumstances of the Plan, the &ldquo;Risk Factors&rdquo; discussed above and whether such investment
is consistent with its fiduciary responsibilities. The Plan fiduciary should consider, among other issues, whether: (1) the fiduciary
has the authority to make the investment under the appropriate governing plan instrument; (2) the investment would constitute a
direct or indirect non-exempt prohibited transaction with a &ldquo;party in interest&rdquo; or &ldquo;disqualified person&rdquo;
within the meaning of ERISA and Section 4975 of the Code respectively; (3) the investment is in accordance with the Plan&rsquo;s
funding objectives; and (4) such investment is appropriate for the Plan under the general fiduciary standards of investment prudence
and diversification, taking into account the overall investment policy of the Plan, the composition of the Plan&rsquo;s investment
portfolio and the Plan&rsquo;s need for sufficient liquidity to pay benefits when due. When evaluating the prudence of an investment
in the Shares, the Plan fiduciary should consider the DOL&rsquo;s regulation on investment duties, which can be found at 29 C.F.R.
&sect; 2550.404a-1.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">It is intended that: (a)
none of the Sponsor, the Trustee, the Custodian or any of their respective affiliates (the &ldquo;Transaction Parties&rdquo;) has
through this report and related materials provided any investment advice within the meaning of Section 3(21) of ERISA to the Plan
in connection with the decision to purchase or acquire such Shares; and (b) the information provided in this report and related
materials will not make a Transaction Party a fiduciary to the Plan</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B><A NAME="x6_c106800a030"></A>INFORMATION
YOU SHOULD KNOW</B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">This Prospectus contains
information you should consider when making an investment decision about the Shares. You 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
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: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">The information contained
in this Prospectus was obtained from us and other sources we believe to be reliable.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">You 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 we refer to this &ldquo;Prospectus,&rdquo; we are referring to this Prospectus and (if applicable)
the relevant prospectus supplement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">You 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: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">We include cross references
in this Prospectus to captions in these materials where you can find further related discussions. The table of contents tells you
where to find these captions.</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B><A NAME="x6_c106800a031"></A>SUMMARY
OF PROMOTIONAL AND SALES MATERIAL</B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">The Trust expects to use
the following sales material it has prepared:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 36pt"></TD><TD STYLE="width: 36pt"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">the Trust&rsquo;s website, www. [ &nbsp;&nbsp;].com; and</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 72pt; text-indent: -36pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 36pt"></TD><TD STYLE="width: 36pt"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">the Trust Fact Sheet found on the Trust&rsquo;s website.</TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">The materials described
above are not a part of this Prospectus or the registration statement of which this Prospectus is a part.</P>



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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B><A NAME="x6_c106800a032"></A>INTELLECTUAL
PROPERTY</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: justify; text-indent: 36pt">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: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">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>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B><A NAME="x6_c106800a033"></A>WHERE
YOU CAN FIND MORE INFORMATION</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: justify; text-indent: 36pt">The Trust has filed
a registration statement on Form S-1 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: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">Information about the
Trust and the Shares can also be obtained from the Trust&rsquo;s website, which is www. [&nbsp;&nbsp; ].com. The Trust&rsquo;s
website address is only provided here as a convenience to you 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 Trust is subject to the informational
requirements of the Exchange Act and will file certain reports and other information with the SEC under the Exchange Act.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">The reports and other
information is available online at www.sec.gov.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B><A NAME="x6_c106800a034"></A>PRIVACY
POLICY</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: justify; text-indent: 36pt">The Trust and the Sponsor
may collect or have access to certain nonpublic personal information about current and former Shareholders. Nonpublic personal
information may include information received from Shareholders, such as a Shareholder&rsquo;s name, social security number and
address, as well as information received from brokerage firms about Shareholder holdings and transactions in Shares of the Trust.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">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 Shareholders to those of their and
their affiliates&rsquo; employees and service providers who need access to such information to provide products and services to
Shareholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">The Trust and the Sponsor
maintain safeguards that comply with federal law to protect Shareholders&rsquo; nonpublic personal information. These safeguards
are reasonably designed to (1) ensure the security and confidentiality of Shareholders&rsquo; records and information, (2) protect
against any anticipated threats or hazards to the security or integrity of Shareholders&rsquo; records and information, and (3)
protect against unauthorized access to or use of Shareholders&rsquo; records or information that could result in substantial harm
or inconvenience to any Shareholder.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">Third-party service
providers with whom the Trust and the Sponsor share nonpublic personal information about Shareholders 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: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">A copy of the Sponsor&rsquo;s
current Privacy Policy, which is applicable to the Trust, is provided to Shareholders annually and is also available at [___].</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><A NAME="x6_c106800a035"></A>APPENDIX A<BR>
<BR>
GLOSSARY OF DEFINED TERMS</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; text-indent: 36pt">In this Prospectus,
each of the following terms have the meanings set forth after such term:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&ldquo;1933 Act&rdquo;:
The Securities Act of 1933.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&ldquo;1940 Act&rdquo;:
Investment Company Act of 1940.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&ldquo;Administrator&rdquo;:
State Street Bank and Trust Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&ldquo;Authorized Participant&rdquo;:
One that purchases or redeems Creation Baskets from or to the Trust.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&ldquo;Bitcoin Account&rdquo;:
The special account opened by the Bitcoin Custodian for the purpose of holding the Trust&rsquo;s bitcoin 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: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&ldquo;Bitcoin Custodian&rdquo;:
Gemini Trust Company, LLC .</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&ldquo;Custody Agreement&rdquo;:
The agreement which establishes the rights and responsibilities the Bitcoin Custodian, the Sponsor and the Trust with respect to
the custody of the Trust&rsquo;s bitcoin.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&ldquo;Bitcoin Futures&rdquo;:
Futures contracts for bitcoin recently launched on major, established, and regulated U.S. commodity futures exchanges.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&ldquo;Bitcoin network&rdquo;:
The decentralized, open source protocol, peer-to-peer electronic network that comprises the infrastructure of Bitcoin.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&ldquo;block reward&rdquo;:
A fixed award given to bitcoin miners for solving new blocks.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&ldquo;Business Day&rdquo;:
Any day other than a day when the Exchange or the New York Stock Exchange is closed for regular trading.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&ldquo;CBDC&rdquo;:
Central Bank Digital Currencies.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&ldquo;CEA&rdquo;: Commodity
Exchange Act of 1936.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&ldquo;CFPB&rdquo;:
The U.S. Consumer Financial Protection Bureau.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&ldquo;CFTC&rdquo;:
The U.S. Commodity Futures Trading Commission.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&ldquo;Code&rdquo;:
Internal Revenue Code of 1986, as amended.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&ldquo;Creation Basket&rdquo;:
A block of 50,000 Shares used by the Trust to issue or redeem Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&ldquo;Creation Basket
Deposit&rdquo;: The total deposit required to create each basket.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&ldquo;DOL&rdquo;: The
U.S. Department of Labor, responsible for promulgating and enforcing rules under ERISA.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&ldquo;DSTA&rdquo;:
The Delaware Statutory Trust Act.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&ldquo;DTC&rdquo;: The
Depository Trust Company. DTC will act as the securities depository for the Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&ldquo;DTC Participant&rdquo;:
An entity that has an account with DTC.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&ldquo;ERISA&rdquo;:
The Employment Retirement Income Security Act of 1974.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&ldquo;Exchange&rdquo;:
The Cboe BZX Exchange, Inc.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&ldquo;Exchange Act&rdquo;:
The Securities Exchange Act of 1934.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&ldquo;Expenses&rdquo;:
Any and all losses, claims, taxes, damages, reasonable expenses, and liabilities (including those under State or federal securities
laws) of any kind of nature whatsoever for which an Indemnified Person will be entitled to Indemnification, to the fullest extent
permitted by law, from the Sponsor or the Trust.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&ldquo;FinCEN&rdquo;:
The U.S. Department of Treasury Financial Crimes Enforcement Network.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&ldquo;FINRA&rdquo;:
Financial Industry Regulatory Authority, formerly the National Association of Securities Dealers.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&ldquo;IIV&rdquo;: Intraday
indicative value.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&ldquo;Indemnified Person&rdquo;:
The Trustee or any officer, affiliate, director, employee, or agent of the Trustee who is entitled to indemnification from the
Sponsor or the Trust.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&ldquo;Indirect Participants&rdquo;:
Banks, brokers, dealers and trust companies that clear through or maintain a custodial relationship with a DTC Participant, either
directly or indirectly.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&ldquo;IRA&rdquo;: Individual
retirement account.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&ldquo;IRS&rdquo;: U.S.
Internal Revenue Service.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&ldquo;Marketing Agent&rdquo;:
Van Eck Securities Corporation.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&ldquo;MarketVector&rdquo;:
MarketVector Indexes GmbH, the sponsor of MarketVector<SUP>TM</SUP> Bitcoin Benchmark Rate.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&ldquo;NAV&rdquo;: Net
asset value of the Trust.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&ldquo;NFA&rdquo;: National
Futures Association.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&ldquo;OTC&rdquo;: Over-the-counter
market.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&ldquo;Plans&rdquo;:
Employee benefit plans and/or certain other plans and arrangements subject to Title I of ERISA and/or Section 4975 of the Code.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&ldquo;Plan Assets Regulation&rdquo;:
U.S. Department of Labor (DOL) Regulation 29 C.F.R. &sect;2510.3-101, as modified by Section 3(42) of ERISA, which defines plan
assets.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&ldquo;Redemption Order
Date&rdquo;: The date a redemption order is received in satisfactory form and approved by the Marketing Agent.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&ldquo;Register&rdquo;:
The record of all shareholders and holders of the Shares in certificated form kept by the Administrator.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&ldquo;SEC&rdquo;: The
U.S. Securities and Exchange Commission.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&ldquo;Shares&rdquo;:
Common shares representing fractional undivided beneficial interests in the Trust.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&ldquo;Shareholders&rdquo;:
Holders of Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&ldquo;Transfer Agent&rdquo;:
State Street Bank and Trust Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&ldquo;Sponsor Indemnified
Party&rdquo;: The Sponsor and its shareholders, members, directors, officers, employees, Affiliates and subsidiaries who are indemnified
by the Trust and held harmless against any loss, liability, or expense incurred arising out of or in connection with the performance
of its obligations under or actions taken according to the Trust Agreement, except for those incurred as a result of gross negligence,
bad faith, or willful misconduct.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&ldquo;The Sponsor&rdquo;:
VanEck Digital Assets, LLC, a Delaware limited liability company.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&ldquo;The Sponsor Fee&rdquo;:
The unified fee of [___] to be paid to the Sponsor by the Trust as compensation for services performed under the Trust Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&ldquo;The Trust&rdquo;:
VanEck Bitcoin Trust.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&ldquo;Trust Agreement&rdquo;:
The Amended and Restated Declaration of Trust and Trust Agreement of VanEck Bitcoin Trust, dated as of [&nbsp;&nbsp; ], 2023.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&ldquo;Trustee&rdquo;:
Delaware Trust Company, a Delaware trust company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&ldquo;VanEck&rdquo;:
Van Eck Associates Corporation.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&ldquo;You&rdquo;: The
owner or holder of Shares.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><A NAME="x6_c106800a036"></A>REPORT OF INDEPENDENT REGISTERED PUBLIC
ACCOUNTING FIRM</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">[To be filed by amendment]</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>VanEck Bitcoin Trust</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>STATEMENT OF ASSETS AND LIABILITIES<BR>
[At&nbsp;XX, 2023]</B></P>

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

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 8pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom; background-color: rgb(229,255,255)">
    <TD><FONT STYLE="font-size: 8pt"><B>ASSETS:</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="width: 83%; padding-left: 21.6pt; text-indent: -10.8pt"><FONT STYLE="font-size: 8pt">Investments in Bitcoin, at fair value<SUP>(a)</SUP></FONT></TD>
    <TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-size: 8pt">$</FONT></TD>
    <TD STYLE="width: 13%; text-align: right"><FONT STYLE="font-size: 8pt">10,000,000</FONT></TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-size: 8pt"><SUP>(1)</SUP>&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-left: 5.4pt">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(229,255,255)">
    <TD STYLE="padding-left: 10.8pt; text-indent: -10.8pt"><FONT STYLE="font-size: 8pt"><B>LIABILITIES:</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 21.6pt; text-indent: -10.8pt"><FONT STYLE="font-size: 8pt">Total Liabilities</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">-</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(229,255,255)">
    <TD STYLE="padding-left: 5.4pt">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">-</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 10.8pt; text-indent: -10.8pt"><FONT STYLE="font-size: 8pt">Commitments and contingent liabilities (Note 6)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1px solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1px solid; text-align: right"><FONT STYLE="font-size: 8pt">-</FONT></TD>
    <TD STYLE="padding-bottom: 0.75pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(229,255,255)">
    <TD STYLE="padding-bottom: 2.5pt; padding-left: 10.8pt; text-indent: -10.8pt"><FONT STYLE="font-size: 8pt"><B>NET ASSETS</B></FONT></TD>
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 3px double"><FONT STYLE="font-size: 8pt"><B>$</B></FONT></TD>
    <TD STYLE="border-bottom: black 3px double; text-align: right"><FONT STYLE="font-size: 8pt"><B>10,000,000</B></FONT></TD>
    <TD STYLE="padding-bottom: 2.25pt"><FONT STYLE="font-size: 8pt"><B><SUP>(1)</SUP>&nbsp;</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-left: 10.8pt">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 10.8pt; text-indent: -10.8pt"><FONT STYLE="font-size: 8pt">Shares issued and outstanding</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">200,000</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(229,255,255)">
    <TD STYLE="padding-left: 10.8pt; text-indent: -10.8pt"><FONT STYLE="font-size: 8pt">Net Asset Value per Share (Note D)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">50.00</FONT></TD>
    <TD><FONT STYLE="font-size: 8pt"><SUP>(1)</SUP>&nbsp;</FONT></TD></TR>
</TABLE>

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

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

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<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 12pt Times New Roman, Times, Serif">&nbsp;</P>



<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 18pt"><FONT STYLE="font-size: 1pt">&nbsp;</FONT><FONT STYLE="font-size: 8pt">(a)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 8pt">Cost of Investments in Bitcoin: $2,500,000</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 12pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" STYLE="width: 100%; margin-top: 0pt; margin-bottom: 0pt; font: 8pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top; font: 8pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: justify; width: 18pt; font: 8pt Times New Roman, Times, Serif">(1)</TD>
    <TD STYLE="text-align: justify; font: 8pt Times New Roman, Times, Serif">&#9;To be updated with actual price</TD></TR>
</TABLE>


<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 18pt; text-align: justify; text-indent: -18pt">&nbsp;</P>

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

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>NOTES TO FINANCIAL STATEMENT</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">[ XX, 2023 ]</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>Note 1. Organization:</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 VanEck Bitcoin Trust (the &ldquo;Trust&rdquo;),
a Delaware statutory trust, is an exchange-traded fund that issues common shares of beneficial interest in an ownership of the
Trust. The shares are traded on the Cboe BZX Exchange, Inc. (the &ldquo;Exchange&rdquo;). The Trust&rsquo;s investment objective
is to reflect the performance of bitcoin less the operating expenses of the Trust. The Trust is managed and controlled by the VanEck
Digital Assets, LLC (the &ldquo;Sponsor&rdquo;), a wholly-owned subsidiary of Van Eck Associates Corporation (&ldquo;VanEck&rdquo;).
The Delaware Trust Company, is the &ldquo;Trustee&rdquo; 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"><B>Note 2. Significant Accounting Policies:</B></P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" STYLE="width: 100%; margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify; width: 36pt">A.</TD>
    <TD STYLE="text-align: justify"><I>Basis of Preparation and Use Estimates</I></TD></TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify; text-indent: -36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify">The preparation of financial statements
in conformity with U.S. generally accepted accounting principles (&ldquo;GAAP&rdquo;) requires management to make estimates and
assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those
estimates.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify">The Trust qualifies as investment
company solely for accounting purposes and not for any other purpose and follows accounting and reporting requirements of Accounting
Standards Codification (&ldquo;ASC&rdquo;) 946 <I>Financial Services&mdash;Investment Companies, </I>but is not registered, and
is not required to be registered, as an investment company under the Investment Company Act of 1940, as amended.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" STYLE="width: 100%; margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify; width: 36pt">B.</TD>
    <TD STYLE="text-align: justify"><I>Investment Valuation</I></TD></TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify; text-indent: -36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify; text-indent: -36pt"> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify">The Trust values its investments
in bitcoin and other assets and liabilities at fair value daily. Fair value is the price that would be received to sell an asset
or paid to transfer a liability in an orderly transaction between market participants on the measurement date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify">The Trust
identifies and determines the bitcoin principal market (or in the absence of a principal market, the most advantageous &#9;market)
for GAAP purposes consistent with the application of fair value measurement framework in Financial Accounting &#9;Standards Board
(&ldquo;FASB&rdquo;) Accounting Standards Codification (&ldquo;ASC&rdquo;) 820-10 as of 4:00 p.m. Eastern time. Under ASC 820-&#9;10,
a principal market is the market with the greatest volume and activity level for the asset or liability. The determination of &#9;the
principal market will be based on the market with the greatest volume and level of activity that can be accessed. The Sponsor on
behalf of the Trust will determine in its sole discretion the valuation sources and policies used to prepare the Trust&rsquo;s
financial statements in accordance with GAAP.</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify">In calculating the valuation of
the Trust&rsquo;s bitcoin, investment the Benchmark Rate methodology captures trade prices and sizes from exchanges and examines
twenty three-minute periods leading up to 4:00 p.m. EST each day. It then calculates an equal-weighted average of the volume-weighted
median price of these twenty three-minute periods, removing the highest and lowest contributed prices.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify">Various inputs are used in determining
the fair value of assets and liabilities. Inputs may be based on independent market data (observable inputs) or they may be internally
developed (unobservable inputs). These inputs are categorized into a disclosure hierarchy consisting of three broad levels for
financial reporting purposes. The three levels of the fair value hierarchy are as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify">Level 1 &ndash; Unadjusted quoted
prices in active markets for identical assets or liabilities;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify">Level 2 &ndash; Inputs other than
quoted prices included within Level 1 that are observable for the asset or liability either directly or indirectly, including quoted
prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets
that are not considered to be active, inputs other than quoted prices that are observable for the asset or liability, and inputs
that are derived principally from or corroborated by observable market data by correlation or other means; and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify">Level 3 &ndash; Unobservable inputs
that are unobservable for the asset or liability, including the Trust&rsquo;s assumptions used in determining the fair value of
investments.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify">At [XX, 2023], the value of the
bitcoin held by the Trust is categorized as Level 2.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" STYLE="width: 100%; margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify; width: 36pt">C.</TD>
    <TD STYLE="text-align: justify"><I>Bitcoin</I></TD></TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify; text-indent: -36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify">Bitcoin transactions are accounted
for on trade date. Realized gains and losses on sale of bitcoin are determined based on the average cost method. Proceeds received
by the Trust from the issuance of creation baskets consist of bitcoin. Such deposits are held by the custodian on behalf of the
Trust until (i) delivered out in connection with redemptions of creation baskets or (ii) sold by the Sponsor, which may be facilitated
by the custodian, to pay fees due to the Sponsor and Trust expenses and liabilities not assumed by the Sponsor.</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify">[For accounting purposes only,
the Trust is an investment company and, therefore, will apply the specialized accounting and reporting guidance FASB Accounting
Standards Codification (&ldquo;ASC&rdquo;) Topic 946, Financial Services&mdash;Investment Companies. Under ASC Topic 946, the average
cost method is an accepted method to determine realized gains and losses on the sale of bitcoin. To note, the Trust is not registered
as an investment company under the Investment Company Act of 1940, as amended.]</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify">The following tables summarize
activity in bitcoin during the period covered by this financial statements:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 8pt Times New Roman, Times, Serif; width: 94%; border-collapse: collapse; margin-left: 36pt">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: black 1px solid; padding-left: 2pt"><FONT STYLE="font-size: 8pt"><B>[XX, 2023]</B></FONT></TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1px solid; text-align: center"><FONT STYLE="font-size: 8pt"><B>Units</B></FONT></TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1px solid; text-align: center"><FONT STYLE="font-size: 8pt"><B>Cost</B></FONT></TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1px solid; text-align: center"><FONT STYLE="font-size: 8pt"><B>Fair Value</B></FONT></TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(229,255,255)">
    <TD STYLE="width: 58%; padding-left: 2pt"><FONT STYLE="font-size: 8pt">Beginning balance&#9;</FONT></TD>
    <TD STYLE="width: 3%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 9%; text-align: right"><FONT STYLE="font-size: 8pt">&mdash;</FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-size: 8pt">$</FONT></TD>
    <TD STYLE="width: 9%; text-align: right"><FONT STYLE="font-size: 8pt">&mdash;</FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-size: 8pt">$</FONT></TD>
    <TD STYLE="width: 11%; text-align: right"><FONT STYLE="font-size: 8pt">&mdash;</FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 2pt"><FONT STYLE="font-size: 8pt">Bitcoin contributed&#9;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">72</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">2,500,000</FONT></TD>
    <TD><FONT STYLE="font-size: 8pt"><SUP>2</SUP>&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">2,500,000</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(229,255,255)">
    <TD STYLE="padding-left: 2pt"><FONT STYLE="font-size: 8pt">Bitcoin distributed&#9;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&mdash;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&mdash;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&mdash;</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 2pt"><FONT STYLE="font-size: 8pt">Bitcoin sold to pay expenses&#9;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&mdash;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&mdash;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&mdash;</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(229,255,255)">
    <TD STYLE="padding-left: 2pt"><FONT STYLE="font-size: 8pt">Net realized gain (loss) on investment in bitcoin&#9;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&mdash;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&mdash;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&mdash;</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1pt; padding-left: 12pt; text-indent: -10pt"><FONT STYLE="font-size: 8pt">Net change in unrealized appreciation (depreciation) on investment in bitcoin&#9;</FONT></TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1px solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1px solid; text-align: right"><FONT STYLE="font-size: 8pt">&mdash;</FONT></TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1px solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1px solid; text-align: right"><FONT STYLE="font-size: 8pt">&mdash;</FONT></TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1px solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1px solid; text-align: right"><FONT STYLE="font-size: 8pt">&mdash;</FONT></TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(229,255,255)">
    <TD STYLE="padding-bottom: 2.5pt; padding-left: 2pt"><FONT STYLE="font-size: 8pt"><B>Ending balance</B>&#9;</FONT></TD>
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 3px double">&nbsp;</TD>
    <TD STYLE="border-bottom: black 3px double; text-align: right"><FONT STYLE="font-size: 8pt"><B>72</B></FONT></TD>
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 3px double"><FONT STYLE="font-size: 8pt"><B>$</B></FONT></TD>
    <TD STYLE="border-bottom: black 3px double; text-align: right"><FONT STYLE="font-size: 8pt"><B>2,500,000</B></FONT></TD>
    <TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font-size: 8pt"><B><SUP>2</SUP>&nbsp;</B></FONT></TD>
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 3px double"><FONT STYLE="font-size: 8pt"><B>$</B></FONT></TD>
    <TD STYLE="border-bottom: black 3px double; text-align: right"><FONT STYLE="font-size: 8pt"><B>2,500,000</B></FONT></TD>
    <TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font-size: 8pt"><B><SUP>2</SUP>&nbsp;</B></FONT></TD></TR>
</TABLE>
<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 8pt Times New Roman, Times, Serif">&nbsp;</P>

<!-- Field: Rule-Page --><DIV ALIGN="LEFT" STYLE="margin-left: 36pt"><DIV STYLE="font-size: 1pt; border-top: Black 1px solid; width: 20%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 8pt Times New Roman, Times, Serif"></P>


<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 8pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 36pt"></TD><TD STYLE="width: 18pt">2</TD><TD>To be updated with actual price.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 8pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" STYLE="width: 100%; margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify; width: 36pt">D.</TD>
    <TD STYLE="text-align: justify"><I>Calculation of Net Asset Value</I></TD></TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify; text-indent: -36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify">On each business day, at 4:00
p.m. EST, the net asset value of the Trust is obtained by subtracting all accrued fees, expenses and other liabilities of the Trust
from the fair value of total assets held by the Trust. The administrator computes the net asset value per Share by dividing the
net asset value of the Trust by the number of Shares outstanding on the date the computation is made.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" STYLE="width: 100%; margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify; width: 36pt">F.</TD>
    <TD STYLE="text-align: justify"><I>Federal Income Taxes</I></TD></TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify; text-indent: -36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify">The Trust is treated as a grantor
trust for federal income tax purposes and, therefore, no provision for federal income taxes is required. Any interest, expenses,
gains and losses are passed through to the holders of Shares of the Trust. The Sponsor has reviewed the tax positions as of October
26, 2023 and has determined that no provision for income tax is required in the Trust&rsquo;s financial statements.</P>

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    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Note 3. Trust Expenses and Other Agreements</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 will pay to the Sponsor a unified
fee (the &ldquo;Sponsor Fee&rdquo;) that will accrue daily. The Sponsor has agreed to pay all operating expenses (except for litigation
expenses and other extraordinary expenses) out of the Sponsor Fee. The Sponsor from time to time will sell bitcoin, which may be
facilitated by the custodian, in such quantity as is necessary to permit payment of the Sponsor Fee and Trust expenses and liabilities
not assumed 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">The Trustee&rsquo;s fee is paid by the
Sponsor and is not a separate expense 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">The Trust will custody its bitcoin at Gemini
Trust Company, LLC (the &ldquo;Bitcoin Custodian&rdquo;), a regulated third-party custodian that carries insurance and is chartered
as a trust company under the New York Banking Law and is responsible for safekeeping of bitcoin owned by 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">State Street Bank and Trust Company serves
as the Trust&rsquo;s administrator, transfer agent and cash 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"><B>Note 4. Related Parties</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 Sponsor is considered to be a related
party 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">MarketVector is an indirectly wholly owned-subsidiary
of VanEck.</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">Van Eck Securities Corporation, a marketing
agent to the Trust, is a wholly owned-subsidiary of VanEck.</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>Note 5. Capital Share Transactions</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">Investors can buy and sell Shares of the
Trust in secondary market transactions through brokers. Shares trade on the Exchange under the ticker symbol [ &ldquo;.&rdquo;]
Shares are bought and sold throughout the trading day like other publicly traded securities.</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 continuously offers the Trust
Shares in creation baskets consisting of 50,000 Shares to authorized participants. Authorized participants pay a transaction fee
for each order they place to create or redeem one or more creation baskets. The price of shares offered in creation baskets on
any subsequent day will be the total NAV of the Trust calculated shortly after the close of the exchange on that day divided by
the number of issued and outstanding Shares 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">The Trust creates and redeems Shares, but
only in one or more creation baskets. Creation baskets are only made in exchange for delivery to the Trust or the distribution
by the Trust of the amount of bitcoin represented by the baskets being created or redeemed, the amount of which is equal to the
combined NAV of the number of Shares included in the baskets being created or redeemed determined as of 4:00 p.m. EST on the day
the order to create or redeem baskets is properly received. Only authorized participants may place orders to create and redeem
baskets through the transfer agent. The transfer agent will coordinate with the Trust&rsquo;s custodian in order to facilitate
settlement of the Shares and 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">Share activity is as follows:</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: 8pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1px solid; text-align: center"><FONT STYLE="font-size: 8pt"><B>Shares</B></FONT></TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1px solid; text-align: center"><FONT STYLE="font-size: 8pt"><B>Amount</B></FONT></TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(229,255,255)">
    <TD STYLE="width: 52%"><FONT STYLE="font-size: 8pt">Shares issued&#9;</FONT></TD>
    <TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 20%; text-align: right"><FONT STYLE="font-size: 8pt">50,000</FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-size: 8pt">$</FONT></TD>
    <TD STYLE="width: 20%; text-align: right"><FONT STYLE="font-size: 8pt">2,500,000</FONT></TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-size: 8pt"><SUP>2</SUP>&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">Shares redeemed&#9;</FONT></TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1px solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1px solid; text-align: right"><FONT STYLE="font-size: 8pt">&mdash;</FONT></TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1px solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1px solid; text-align: right"><FONT STYLE="font-size: 8pt">&mdash;</FONT></TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(229,255,255)">
    <TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font-size: 8pt"><B>Net increase</B>&#9;</FONT></TD>
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 3px double">&nbsp;</TD>
    <TD STYLE="border-bottom: black 3px double; text-align: right"><FONT STYLE="font-size: 8pt">50,000</FONT></TD>
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 3px double"><FONT STYLE="font-size: 8pt">$</FONT></TD>
    <TD STYLE="border-bottom: black 3px double; text-align: right"><FONT STYLE="font-size: 8pt">2,500,000</FONT></TD>
    <TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font-size: 8pt"><SUP>2</SUP>&nbsp;</FONT></TD></TR>
</TABLE>

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

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<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 18pt"><FONT STYLE="font-size: 1pt">&nbsp;</FONT><FONT STYLE="font-size: 8pt">2</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 8pt">To be updated with actual price.</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 12pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Note 6. Commitments and Contingent Liabilities</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">In the normal course of business, the Trust
enters into contracts that contain a variety of general indemnifications. The Trust&rsquo;s maximum exposure under these agreements
is unknown as this would involve future claims that may be made against the Trust that have not yet occurred. However, the Sponsor
believes the risk of loss under these arrangements to be remote.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Note 7. Concentration Risk</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">Substantially all of the Trust&rsquo;s
assets are holdings of bitcoin, which creates a concentration risk associated with fluctuations in the value of bitcoin due to
number of factors. Accordingly, a decline in the value of bitcoin will have an adverse effect on the value of the Shares of the
Trust. Factors that may have the effect of causing a decline in the value of bitcoin include high volatility, which could have
a negative impact on the performance of the Trust. Bitcoin exchanges are relatively new and, in some cases, unregulated, and, therefore,
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. The value of the Shares depends on the development and acceptance
of the Bitcoin network. The slowing or stopping of the development or acceptance of the Bitcoin network may adversely affect an
investment in the Trust. The price of bitcoin on the bitcoin market has exhibited periods of extreme volatility. Digital assets
such as bitcoin were only introduced within the past decade, and the medium-to-long term value of the Shares is subject to a number
of factors relating to the capabilities and development of block-chain technologies and to the fundamental investment characteristics
of digital assets that are uncertain and difficult to evaluate. The Trust is subject to risks due to its concentration of investments
in a single asset class. Possible illiquid markets may exacerbate losses or increase the variability between the Trust&rsquo;s
NAV and its market price. The amount of bitcoin represented by the Shares may decline over time.</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">Future and current regulations by a United
States or foreign government or quasi-governmental agency could have an adverse effect on an investment in the Trust. Shareholders
do not have the protections associated with ownership of Shares in an investment company registered under the 1940 Act or the protections
afforded by the Commodity Exchange Act. Future legal or regulatory developments may negatively affect the value of bitcoin or require
the Trust or the Sponsor to become registered with the SEC or CFTC, which may cause the Trust to liquidate.</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 Exchange on which the Shares are listed
may halt trading in the Trust&rsquo;s Shares, which would adversely impact a Shareholder&rsquo;s ability to sell Shares. 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: 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">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 Shareholders&rsquo; 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"><B>Note 8. Subsequent Event Review</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 has evaluated subsequent events
and transactions for potential recognition or disclosure through the date the financial statements were issued and has determined
that there are no material events that would require disclosure.</P>

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    <!-- Field: /Page -->

<P STYLE="font: 150pt 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>VANECK BITCOIN TRUST</B></P>

<P STYLE="font: 18pt 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; text-indent: 0.5in"><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SHARES</B></P>

<P STYLE="font: 100pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

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

<P STYLE="font: 18pt 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; text-indent: 0.5in">&nbsp;&nbsp;&nbsp;<B>,
2023</B></P>

<P STYLE="font: 150pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">Until&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
2023 (25 calendar days after the date of this Prospectus) all dealers that effect transactions in these securities, whether or
not participating in this offering, may be required to deliver a Prospectus. This is in addition to the dealers&rsquo; obligation
to deliver a Prospectus when acting as underwriters and with respect to their unsold allotments or subscriptions.</P>

<!-- Field: Page; Sequence: 2 -->
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<DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 10pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: left; width: 100%"><PAGE></PAGE></TD></TR></TABLE></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>PART II<BR>
<BR>
INFORMATION NOT REQUIRED IN PROSPECTUS</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"><B>Item 13. 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">Set forth below is an estimate (except
as indicated) of the amount of fees and expenses (other than underwriting commissions and discounts) payable by the registrant
in connection with the issuance and distribution of the Shares pursuant to the Prospectus contained in this registration statement.</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: 8pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom; background-color: rgb(229,255,255)">
    <TD STYLE="width: 81%; padding-left: 3pt"><FONT STYLE="font-size: 8pt">SEC registration fee (actual)&#9;</FONT></TD>
    <TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-size: 8pt">$</FONT></TD>
    <TD STYLE="width: 15%; text-align: right"><FONT STYLE="font-size: 8pt">[_____]</FONT></TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-size: 8pt"><SUP>*</SUP>&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 3pt"><FONT STYLE="font-size: 8pt">Listing fee (actual)&#9;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 8pt">$</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">[_____]</FONT></TD>
    <TD><FONT STYLE="font-size: 8pt"><SUP>*</SUP>&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(229,255,255)">
    <TD STYLE="padding-left: 3pt"><FONT STYLE="font-size: 8pt">Auditor&rsquo;s fees and expenses&#9;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 8pt">$</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">[_____]</FONT></TD>
    <TD><FONT STYLE="font-size: 8pt"><SUP>*</SUP></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 3pt"><FONT STYLE="font-size: 8pt">Legal fees and expenses&#9;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 8pt">$</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">[_____]</FONT></TD>
    <TD><FONT STYLE="font-size: 8pt"><SUP>*</SUP>&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(229,255,255)">
    <TD STYLE="padding-left: 3pt"><FONT STYLE="font-size: 8pt">Printing expenses&#9;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 8pt">$</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">[_____]</FONT></TD>
    <TD><FONT STYLE="font-size: 8pt"><SUP>*</SUP>&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 3pt"><FONT STYLE="font-size: 8pt">Miscellaneous expenses&#9;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1px solid"><FONT STYLE="font-size: 8pt">$</FONT></TD>
    <TD STYLE="border-bottom: black 1px solid; text-align: right"><FONT STYLE="font-size: 8pt">[_____]</FONT></TD>
    <TD STYLE="border-bottom: black 1px solid"><FONT STYLE="font-size: 8pt"><SUP>*</SUP>&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(229,255,255)">
    <TD STYLE="padding-left: 3pt"><FONT STYLE="font-size: 8pt"><B>Total</B>&#9;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 3px double"><FONT STYLE="font-size: 8pt"><B>$</B></FONT></TD>
    <TD STYLE="border-bottom: black 3px double; text-align: right"><FONT STYLE="font-size: 8pt"><B>[_____]</B></FONT></TD>
    <TD STYLE="border-bottom: black 3px double"><FONT STYLE="font-size: 8pt"><B><SUP>*</SUP>&nbsp;</B></FONT></TD></TR>
</TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 8pt Times New Roman, Times, Serif">&nbsp;</P>

<!-- Field: Rule-Page --><DIV ALIGN="LEFT"><DIV STYLE="font-size: 1pt; border-top: Black 1px solid; width: 20%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 8pt Times New Roman, Times, Serif"></P>



<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 8pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 18pt">*</TD><TD STYLE="text-align: justify">To be provided by amendment.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 8pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Item 14. 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 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 15. Recent Sales of Unregistered
Securities.</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">None.</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 and Financial Statement
Schedules.</B></P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" STYLE="width: 100%; margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify; width: 36pt">(a)</TD>
    <TD STYLE="text-align: justify">Exhibit.</TD></TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify; text-indent: -36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; 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 0pt 36pt; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" STYLE="width: 100%; margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify; width: 36pt">(b)</TD>
    <TD STYLE="text-align: justify">Financial Statement Schedules.</TD></TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify; text-indent: -36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify">Not applicable.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; 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>

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

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

<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" STYLE="width: 100%; margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify; width: 36pt">(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="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify; text-indent: -36pt">&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: 36pt"></TD><TD STYLE="width: 36pt">(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>

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 10pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: left; width: 100%"><PAGE></PAGE></TD></TR></TABLE></DIV>
    <!-- Field: /Page -->

<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: 36pt"></TD><TD STYLE="width: 36pt">(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 Filing Fee&rdquo; tables or &ldquo;Calculation of Registration
Fee&rdquo; table, as applicable, in the effective registration statement; 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: 36pt"></TD><TD STYLE="width: 36pt">(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;</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: 36pt">Provided, however, That:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&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: 36pt"></TD><TD STYLE="width: 36pt">(1)</TD><TD STYLE="text-align: justify">Paragraphs (1)(i), (ii), and (iii) of this section do not apply if the registration statement is
on Form S-1 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 (15 U.S.C. 78m or 78o(d)) that are incorporated by reference in the registration statement; 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: 36pt"></TD><TD STYLE="width: 36pt">(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: 36pt"></TD><TD STYLE="width: 36pt">(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: 36pt"></TD><TD STYLE="width: 36pt">(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" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 72pt"></TD><TD STYLE="width: 36pt">(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>

<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: 108pt"></TD><TD STYLE="width: 36pt">(A)</TD><TD STYLE="text-align: justify">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</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: 108pt"></TD><TD STYLE="width: 36pt">(B)</TD><TD STYLE="text-align: justify">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</TD></TR></TABLE>

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<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: 72pt"></TD><TD STYLE="width: 36pt">(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>

<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: 36pt"></TD><TD STYLE="width: 36pt">(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 108pt; 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 108pt; 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: 72pt"></TD><TD STYLE="width: 36pt">(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="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: 72pt"></TD><TD STYLE="width: 36pt">(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="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: 72pt"></TD><TD STYLE="width: 36pt">(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="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: 72pt"></TD><TD STYLE="width: 36pt">(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="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: 36pt"></TD><TD STYLE="width: 36pt">(6)</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 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: 36pt"></TD><TD STYLE="width: 36pt">(7)</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>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">Pursuant to the requirements
of the Securities Act of 1933, the registrant has duly caused this registration statement to be signed on its behalf by the undersigned,
thereunto duly authorized in the City of Tampa, State of Florida, on December 8, 2023.</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">VanEck Bitcoin Trust</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: 8pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 3%; font-size: 10pt"><FONT STYLE="font-size: 10pt">By:</FONT>&nbsp;</TD>
    <TD STYLE="width: 59%; font-size: 10pt"><FONT STYLE="font-size: 10pt">VanEck Digital Assets, LLC, as Sponsor of the Trust</FONT></TD>
    <TD STYLE="width: 38%; font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 10pt">By:</FONT></TD>
    <TD STYLE="font-size: 10pt; text-decoration: underline"><FONT STYLE="font-size: 10pt"><U>/s/ Jonathan R. Simon</U></FONT></TD>
    <TD STYLE="font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 10pt">Name: &nbsp;Jonathan R. Simon</FONT></TD>
    <TD STYLE="font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 10pt">Title: &nbsp;Senior Vice President, General Counsel and Secretary</FONT></TD>
    <TD STYLE="font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">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: 36pt">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 8pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="width: 34%; border-bottom: black 1px solid; font-size: 10pt; text-align: center"><FONT STYLE="font-size: 10pt"><B>Signature</B></FONT></TD>
    <TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 41%; border-bottom: black 1px solid; font-size: 10pt; text-align: center"><FONT STYLE="font-size: 10pt"><B>Title</B></FONT></TD>
    <TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 23%; border-bottom: black 1px solid; font-size: 10pt; text-align: center"><FONT STYLE="font-size: 10pt"><B>Date</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-size: 10pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center">&nbsp;</TD>
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-size: 10pt; text-align: justify"> </TD>
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center">&nbsp;</TD>
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-size: 10pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center"><FONT STYLE="font-size: 10pt">Jan F. van Eck</FONT></TD>
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: black 1px solid; font-size: 10pt; text-align: justify"><FONT STYLE="font-size: 10pt">/s/ Jan F. van Eck</FONT></TD>
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center"><FONT STYLE="font-size: 10pt">President and Chief Executive Officer</FONT></TD>
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center"><FONT STYLE="font-size: 10pt">December 8, 2023</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-size: 10pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center"><FONT STYLE="font-size: 10pt">(Principal Executive Officer)</FONT></TD>
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-size: 10pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center">&nbsp;</TD>
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-size: 10pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center"><FONT STYLE="font-size: 10pt">John J. Crimmins</FONT></TD>
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: black 1px solid; font-size: 10pt; text-align: justify"><FONT STYLE="font-size: 10pt">/s/ John J. Crimmins</FONT></TD>
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center"><FONT STYLE="font-size: 10pt">Vice President, Chief Financial</FONT></TD>
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center"><FONT STYLE="font-size: 10pt">December 8, 2023</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-size: 10pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center"><FONT STYLE="font-size: 10pt">Officer and Treasurer</FONT></TD>
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-size: 10pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center"><FONT STYLE="font-size: 10pt">(Principal Financial Officer and</FONT></TD>
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-size: 10pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center"><FONT STYLE="font-size: 10pt">Principal Accounting Officer)</FONT></TD>
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-size: 10pt; text-align: justify"> </TD>
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center">&nbsp;</TD>
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-size: 10pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center">&nbsp;</TD>
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center">&nbsp;</TD></TR>
</TABLE>
<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 8pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 18pt">*</TD><TD STYLE="text-align: justify">The registrant will be a trust and the persons are signing in their capacities as officers of VanEck
Digital Assets, LLC, the Sponsor of the registrant.</TD></TR></TABLE>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>EXHIBIT INDEX</B></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: 8pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="width: 10%; border-bottom: black 1px solid; font-size: 10pt"><FONT STYLE="font-size: 10pt"><B>Exhibit No.</B>&nbsp;&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 89%; border-bottom: black 1px solid; font-size: 10pt; text-align: center"><FONT STYLE="font-size: 10pt"><B>Exhibit Description</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 10pt">3.1</FONT></TD>
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: justify"><FONT STYLE="font-size: 10pt"><A HREF="https://www.sec.gov/Archives/edgar/data/1838028/000093041320002664/c100811_ex3-2.htm" STYLE="-sec-extract: exhibit">Certificate of Trust<SUP>(1)</SUP></A></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 10pt">4.1</FONT></TD>
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: justify"><FONT STYLE="font-size: 10pt">Declaration of Trust and Trust Agreement*</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 10pt">5.1</FONT></TD>
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: justify"><FONT STYLE="font-size: 10pt">Opinion of Clifford Chance US LLP as to legality*</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 10pt">8.1</FONT></TD>
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: justify"><FONT STYLE="font-size: 10pt">Opinion of Clifford Chance US LLP as to tax matters*</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 10pt">10.1</FONT></TD>
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: justify"><FONT STYLE="font-size: 10pt">Form of Initial Authorized Participant Agreement*</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 10pt">10.2</FONT></TD>
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: justify"><FONT STYLE="font-size: 10pt"><A HREF="https://www.sec.gov/Archives/edgar/data/1838028/000093041323002392/c106800_ex10-2.htm" STYLE="-sec-extract: exhibit">Form of Marketing Agent Agreement<SUP>(2)</SUP></A></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 10pt">10.3</FONT></TD>
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: justify"><FONT STYLE="font-size: 10pt"><A HREF="https://www.sec.gov/Archives/edgar/data/1838028/000093041323002392/c106800_ex10-3.htm" STYLE="-sec-extract: exhibit">Form of Custodial Services Agreement<SUP>(2)</SUP></A></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 10pt">10.4</FONT></TD>
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: justify"><FONT STYLE="font-size: 10pt">Form of Trust Administration and Accounting Agreement*</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 10pt">10.5</FONT></TD>
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: justify"><FONT STYLE="font-size: 10pt">Form of Transfer Agency Agreement*</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 10pt">10.6</FONT></TD>
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: justify"><FONT STYLE="font-size: 10pt"><A HREF="https://www.sec.gov/Archives/edgar/data/1838028/000093041323002392/c106800_ex10-6.htm" STYLE="-sec-extract: exhibit">Form of Index Sub-Licensing Agreement<SUP>(2)</SUP></A></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 10pt">23.1</FONT></TD>
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: justify"><FONT STYLE="font-size: 10pt">Consent of Independent Registered Public Accounting Firm*</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 10pt">23.2</FONT></TD>
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: justify"><FONT STYLE="font-size: 10pt">Consent of Clifford Chance US LLP (included in Exhibits 5.1 and 8.1)*</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 10pt">107</FONT></TD>
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: justify"><FONT STYLE="font-size: 10pt"><A HREF="https://www.sec.gov/Archives/edgar/data/1838028/000093041323002392/c106800_ex107.htm" STYLE="-sec-extract: exhibit">Filing Fee Tables<SUP>(2)</SUP></A></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: justify">&nbsp;</TD></TR>
</TABLE>
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<TD STYLE="width: 0"></TD><TD STYLE="width: 18pt"><SUP>(1)</SUP></TD><TD STYLE="text-align: justify">Previously filed as an exhibit to the Trust&rsquo;s Registration Statement on Form S-1 on December
30, 2020.</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 8pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 18pt"><SUP>(2)</SUP></TD><TD STYLE="text-align: justify">Previously filed as an exhibit to the Trust&rsquo;s Registration Statement on Form S-1 on October
27, 2023.</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 8pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 18pt"><SUP>*</SUP></TD><TD STYLE="text-align: justify">To be filed by amendment.</TD></TR></TABLE>



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