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Capital Share Transactions
 9 Months Ended
Sep. 30, 2025
Stockholders' Equity Note [Abstract]  
Equity [Text Block]

Note 5. Capital Share Transactions

 

Investors can buy and sell Shares of the Trust in secondary market transactions through brokers. Shares trade on the Exchange under the ticker symbol HODL. Shares are bought and sold throughout the trading day like other publicly traded securities.

 

The Trust continuously offers the Trust Shares in baskets consisting of 25,000 Shares to authorized participants. Prior to March 4, 2024, the Trust offered 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 baskets. The Administrator calculates the cost to purchase (or sell in the case of a redemption order) the amount of bitcoin represented by the baskets being created (or redeemed); the amount of bitcoin represented is equal to the combined NAV of the number of Shares included in the baskets being created (or redeemed).

 

The Trust creates and redeems Shares, but only in one or more baskets. 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. For an order to create baskets, an authorized participant will deliver cash to the Trust’s account at the cash custodian, which the Sponsor will then use to purchase bitcoin from a liquidity provider chosen by the Sponsor. For an order to redeem baskets, the Sponsor will arrange for the bitcoin represented by the basket to be sold to a liquidity provider chosen by the Sponsor and the cash proceeds distributed from the Trust’s account at the cash custodian to the authorized participant in exchange for their Shares. Only authorized participants may place orders to create and redeem baskets through the transfer agent. The transfer agent will coordinate with the Trust’s Bitcoin Custodians to facilitate settlement of the Shares and bitcoin.

 

Share and capital activity is as follows:

   Three Months Ended September 30,   Nine Months Ended September 30, 
   2025   2024(a)   2025(a)   2024(a) 
   Shares  Amount   Shares  Amount   Shares  Amount   Shares  Amount 
Beginning of period  55,375,000  $1,067,032,548   35,100,000  $592,233,281   48,500,000  $861,481,884   8,000  $100,000 
Shares issued  9,750,000   319,598,577   12,600,000   224,740,268   21,850,000   659,825,469   51,600,000   888,110,863 
Shares redeemed  (2,000,000)   (63,429,642)   (5,300,000)   (96,022,801)   (7,225,000)   (198,105,870)   (9,208,000)   (167,260,115) 
End of period  63,125,000  $1,323,201,483   42,400,000  $720,950,748   63,125,000  $1,323,201,483   42,400,000  $720,950,748 

 

(a) Shares amounts have been adjusted to reflect a 4 for 1 share split that occurred on February 14, 2025.