<SEC-DOCUMENT>0001387131-21-005139.txt : 20240208
<SEC-HEADER>0001387131-21-005139.hdr.sgml : 20240208

<ACCEPTANCE-DATETIME>20210430134124

<PRIVATE-TO-PUBLIC>

ACCESSION NUMBER:		0001387131-21-005139

CONFORMED SUBMISSION TYPE:	S-1/A

PUBLIC DOCUMENT COUNT:		5

FILED AS OF DATE:		20210430

DATE AS OF CHANGE:		20240110


FILER:


	COMPANY DATA:	

		COMPANY CONFORMED NAME:			Valkyrie Bitcoin Fund

		CENTRAL INDEX KEY:			0001841175

		STANDARD INDUSTRIAL CLASSIFICATION:	 [6221]

		ORGANIZATION NAME:           	09 Crypto Assets

		IRS NUMBER:				000000000

		STATE OF INCORPORATION:			DE

		FISCAL YEAR END:			1231



	FILING VALUES:

		FORM TYPE:		S-1/A

		SEC ACT:		1933 Act

		SEC FILE NUMBER:	333-252344

		FILM NUMBER:		21876102



	BUSINESS ADDRESS:	

		STREET 1:		100 CRESCENT COURT, FLOOR 7

		CITY:			DALLAS

		STATE:			TX

		ZIP:			75201

		BUSINESS PHONE:		6063322201



	MAIL ADDRESS:	

		STREET 1:		100 CRESCENT COURT, FLOOR 7

		CITY:			DALLAS

		STATE:			TX

		ZIP:			75201



</SEC-HEADER>

<DOCUMENT>
<TYPE>S-1/A
<SEQUENCE>1
<FILENAME>valkyrie-s1a_042721.htm
<DESCRIPTION>AMENDMENT NO. 1
<TEXT>
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<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> <B>As filed with the Securities and
Exchange Commission on April 30, 2021</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: right"> <B>Registration No.&nbsp;333-252344</B> </P>

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">&nbsp;<FONT STYLE="font-size: 14pt">SECURITIES
AND EXCHANGE COMMISSION</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-size: 12pt"><B>&nbsp;Washington</B></FONT><B>,
D.C. 20549</B></P>

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

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

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

<P STYLE="font:  bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> Amendment No. 1 to </P>

<P STYLE="font: small-caps bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><BR>
<FONT STYLE="font-size: 18pt">FORM S-1 <BR>
REGISTRATION STATEMENT</FONT><BR>
<I>UNDER</I><BR>
<I>THE SECURITIES ACT OF 1933 </I></P>

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

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

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

<P STYLE="font: small-caps bold 18pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-size: 24pt">VALKYRIE
BITCOIN FUND</FONT></P>

<P STYLE="font: small-caps bold 18pt 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>(Exact Name of Registrant as Specified
in Its Charter)</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"></P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-top: 4pt; font-size: 10pt; text-align: center; width: 33%"><FONT STYLE="font-size: 10pt"><B>Delaware</B></FONT></TD>
    <TD STYLE="padding-top: 4pt; font-size: 10pt; text-align: center; width: 34%"></TD>
    <TD STYLE="padding-top: 4pt; font-size: 10pt; text-align: center; width: 33%"><FONT STYLE="font-size: 10pt"><B>86-6430837</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-size: 10pt; text-align: center"><FONT STYLE="font-size: 10pt"><B>(State or Other Jurisdiction of</B></FONT><BR>
<FONT STYLE="font-size: 10pt"><B>Incorporation or Organization)</B></FONT></TD>
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> <B>c/o Valkyrie Digital Assets
        LLC<BR> Leah Wald</B> <BR> <B>100 Crescent Court, Floor 7 &nbsp;</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Dallas, Texas 75201 </B>&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(202) 854-1343</B>&nbsp;</P></TD>
    <TD STYLE="font-size: 10pt; text-align: center"><FONT STYLE="font-size: 10pt"><B>(I.R.S. Employer</B></FONT><BR>
<FONT STYLE="font-size: 10pt"><B>Identification Number)</B></FONT></TD></TR>
</TABLE>
<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>(Address, including Zip Code, and
Telephone Number, including Area Code, of Registrant&rsquo;s Principal Executive Offices and Agent for Service)</B> </P>

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


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

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<P STYLE="font: small-caps bold 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"><I>Copies to:</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Morrison C. Warren, Esq.<BR>
Chapman and Cutler LLP<BR>
111 West Monroe Street<BR>
Chicago, Illinois 60603</B></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Approximate date of commencement of proposed
sale to the public</B>: As soon as practicable after this registration statement becomes effective.</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-indent: 0.5in">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.&nbsp;&nbsp;<FONT STYLE="font-family: Times New Roman, Times, Serif">&#9746;</FONT></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: 0.5in">If this Form is filed to register additional
securities for an offering pursuant to Rule 462(b) under the Securities Act of 1933, check the following box and list the Securities
Act registration statement number of the earlier effective registration statement for the same offering.&nbsp;&nbsp;<FONT STYLE="font-family: Times New Roman, Times, Serif">&#9744;</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">If this Form is a post-effective amendment
filed pursuant to Rule 462(c) under the Securities Act of 1933, check the following box and list the Securities Act registration
statement number of the earlier effective registration statement for the same offering.&nbsp;&nbsp;<FONT STYLE="font-family: Times New Roman, Times, Serif">&#9744;</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">If this Form is a post-effective amendment
filed pursuant to Rule 462(d) under the Securities Act of 1933, check the following box and list the Securities Act registration
statement number of the earlier effective registration statement for the same offering.&nbsp;&nbsp;<FONT STYLE="font-family: Times New Roman, Times, Serif">&#9744;</FONT></P>

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

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

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD><FONT STYLE="font-size: 10pt">Large&nbsp;accelerated&nbsp;filer</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">&#9744;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">Accelerated&nbsp;filer</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">&#9744;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD><FONT STYLE="font-size: 10pt">Non-accelerated filer</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">&#9746;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">Smaller&nbsp;reporting&nbsp;company</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">&#9746;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">Emerging growth company</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">&#9746;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="5" STYLE="text-indent: 0.25in"><FONT STYLE="font-size: 10pt">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></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">&#9744;</FONT></TD></TR>
</TABLE>
<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">&nbsp;</P>

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

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-top: Black 2.5pt double; border-right: black 1pt solid; border-bottom: Black 1pt solid">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Title of Each Class of&nbsp;</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Securities to be Registered</B>&nbsp;</P></TD>
    <TD STYLE="white-space: nowrap; border-top: Black 2.5pt double; border-right: black 1pt solid; border-bottom: Black 1pt solid">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Amount</B>&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>to be</B><BR>
<B>Registered</B>&nbsp;</P></TD>
    <TD STYLE="white-space: nowrap; border-top: Black 2.5pt double; border-right: black 1pt solid; border-bottom: Black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>Proposed</B></FONT><BR>
<FONT STYLE="font-size: 10pt"><B>Maximum</B></FONT><BR>
<FONT STYLE="font-size: 10pt"><B>Offering Price</B></FONT><BR>
<FONT STYLE="font-size: 10pt"><B>Per Share(1)</B></FONT></TD>
    <TD STYLE="white-space: nowrap; border-top: Black 2.5pt double; border-right: black 1pt solid; border-bottom: Black 1pt solid">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Proposed</B><BR>
<B>Maximum</B><BR>
<B>Aggregate</B>&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Offering&nbsp;Price(1)</B>&nbsp;</P></TD>
    <TD STYLE="white-space: nowrap; border-top: Black 2.5pt double; border-bottom: Black 1pt solid">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Amount&nbsp;of</B>&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Registration&nbsp;Fee</B>&nbsp;</P></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; border-bottom: Black 2.5pt double; border-right: black 1pt solid; padding-top: 2pt; padding-left: 10pt; text-indent: -10pt"> <FONT STYLE="font-size: 10pt">Common
    shares of beneficial interest</FONT> </TD>
    <TD STYLE="vertical-align: bottom; border-bottom: Black 2.5pt double; border-right: black 1pt solid; padding-top: 2pt"> &nbsp; </TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom; border-bottom: Black 2.5pt double; border-right: black 1pt solid; padding-top: 2pt; text-align: center"> <FONT STYLE="font-size: 10pt">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> </TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom; border-bottom: Black 2.5pt double; border-right: black 1pt solid; padding-top: 2pt; text-align: center"> <FONT STYLE="font-size: 10pt">$1,000,000</FONT> </TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom; border-bottom: Black 2.5pt double; padding-top: 2pt; text-align: center"> <FONT STYLE="font-size: 10pt">$109.10(2)</FONT> </TD></TR>
</TABLE>
<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 18pt"> (1) </TD><TD> Estimated solely for the purpose of calculating the amount of the registration fee pursuant
                                to Rule 457(d) under the Securities Act of 1933. </TD></TR></TABLE>


<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 18pt"> (2) </TD><TD> Previously paid. </TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><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&nbsp;8(a)
of the Securities Act of 1933 or until the Registration Statement shall become effective on such date as the Commission, acting
pursuant to said Section&nbsp;8(a), may determine. </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-top: 0pt; margin-right: 0; margin-bottom: 0pt; text-align: left"></P>

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

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


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

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

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

<P STYLE="font: small-caps 10pt Times New Roman, Times, Serif; margin: 0pt 0; color: red; text-align: center"><FONT STYLE="font-variant: normal; font-weight: normal">Subject
to Completion</FONT><BR>
<FONT STYLE="font-variant: normal; font-weight: normal">Preliminary Prospectus dated April 30, 2021 &nbsp;</FONT> </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-top: 0pt; margin-bottom: 0pt; text-align: center"><IMG SRC="valk_logo2.jpg" ALT="" STYLE="width: 350px">&nbsp;</P>

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

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

<P STYLE="font: 18pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.75in"><FONT STYLE="font-size: 18pt"><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SHARES
</B></FONT></P>

<P STYLE="font: 18pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.75in">&nbsp;</P>

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"> The Valkyrie Bitcoin Fund (the &ldquo;Trust&rdquo;)
is an exchange-traded fund that issues common shares of beneficial interest (the &ldquo;Shares&rdquo;), which represent units
of fractional undivided beneficial interest in and ownership of the Trust. The Trust&rsquo;s purpose is to hold bitcoins, which
are a digital commodity based on the cryptographic protocols used by the decentralized, peer-to-peer bitcoin computer network.
The investment objective of the Trust is for the Shares to reflect the performance of the value of a bitcoin as represented by
the CF Bitcoin US Settlement Price (the &ldquo;Index&rdquo;), less the Trust&rsquo;s liabilities and expenses. The Shares are designed to provide investors with
a cost-effective and convenient way to invest in bitcoin. Valkyrie Digital Assets LLC is the sponsor of the Trust (the &ldquo;Sponsor&rdquo;),
Delaware Trust Company is the trustee of the Trust (the &ldquo;Trustee&rdquo;), U.S. Bancorp Fund Services, LLC is the transfer
agent of the Trust (in such capacity, the &ldquo;Transfer Agent&rdquo;) and the administrator of the Trust (in such capacity,
the &ldquo;Administrator&rdquo;) and Coinbase Custody Trust Company, LLC is the custodian of the Trust (the &ldquo;Custodian&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-indent: 0.5in"> This is an initial public offering of
the Trust&rsquo;s Shares. The Trust is offering [&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;] of
the Shares in this offering. The Shares may be purchased from the Trust only in one or more blocks of 50,000 Shares (a block of
50,000 Shares is called a &ldquo;Basket&rdquo;). The Trust issues Baskets of Shares to certain authorized participants (&ldquo;Authorized
Participants&rdquo;) on an ongoing basis as described in &ldquo;Plan of Distribution.&rdquo; Baskets are offered continuously
in exchange for bitcoins. The Trust does not issue fractions of a Basket. The Trust intends to redeem Shares in Baskets on an
ongoing basis from Authorized Participants. See &ldquo;Description of the Shares&mdash;Redemption of the Shares.&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-indent: 0.5in">The Trust intends to list the Shares on
NYSE Arca  under the symbol &ldquo;[&nbsp;&nbsp;&nbsp;&nbsp;].&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-indent: 0.5in"> <b>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 NYSE Arca. Investing in the Trust involves risks similar to those involved with an investment directly in bitcoin and
other significant risks. See &ldquo;Risk Factors&rdquo; beginning on page 7.</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-indent: 0.5in">The offering of the Trust&rsquo;s Shares
is registered with the SEC 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 a mutual fund 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: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><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 7.</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-indent: 0.5in"></P>

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<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: 0.5in"><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>

<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: 0.5in"><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: 0pt 0; text-indent: 0.5in">&nbsp;</P>

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

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<P STYLE="font: small-caps bold 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>The date of this prospectus is [&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;],
2021.</B></P>

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


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

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

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



<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%">
<TR STYLE="text-align: left; vertical-align: bottom; font: small-caps 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 90%; text-align: left; text-indent: -13.5pt; padding-top: 0in; padding-bottom: 0pt; padding-left: 13.5pt"><A HREF="#valkyries04272121a001">STATEMENT REGARDING FORWARD-LOOKING STATEMENTS</A></TD>
    <TD STYLE="width: 10%; text-align: right; padding-top: 0in; padding-bottom: 0pt">ii</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: small-caps 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; text-indent: -13.5pt; padding-top: 0in; padding-bottom: 0pt; padding-left: 13.5pt"> <A HREF="#a_001">INDUSTRY
    AND MARKET DATA</A> </TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 0pt"> II </TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: small-caps 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; text-indent: -13.5pt; padding-top: 0in; padding-bottom: 0pt; padding-left: 13.5pt"><A HREF="#valkyries04272121a002">PROSPECTUS SUMMARY</A></TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 0pt">1</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: small-caps 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; text-indent: -13.5pt; padding-top: 0in; padding-bottom: 0pt; padding-left: 13.5pt"><A HREF="#valkyries04272121a003">THE OFFERING</A></TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 0pt">4</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: small-caps 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; text-indent: -13.5pt; padding-top: 0in; padding-bottom: 0pt; padding-left: 13.5pt"><A HREF="#valkyries04272121a004">RISK FACTORS</A></TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 0pt">7</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: small-caps 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; text-indent: -13.5pt; padding-top: 0in; padding-bottom: 0pt; padding-left: 13.5pt"><A HREF="#valkyries04272121a005">USE OF PROCEEDS</A></TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 0pt">33</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: small-caps 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; text-indent: -13.5pt; padding-top: 0in; padding-bottom: 0pt; padding-left: 13.5pt"><A HREF="#valkyries04272121a006">OVERVIEW OF THE BITCOIN INDUSTRY AND MARKET</A></TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 0pt">34</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: small-caps 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; text-indent: -13.5pt; padding-top: 0in; padding-bottom: 0pt; padding-left: 13.5pt"><A HREF="#valkyries04272121a007">ACTIVITIES OF THE TRUST</A></TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 0pt">40</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: small-caps 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; text-indent: -13.5pt; padding-top: 0in; padding-bottom: 0pt; padding-left: 13.5pt"> <A HREF="#valkyries04272121a007-a">USE
    OF THE CF BITCOIN US SETTLEMENT PRICE</A> </TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 0pt"> 43 </TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: small-caps 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; text-indent: -13.5pt; padding-top: 0in; padding-bottom: 0pt; padding-left: 13.5pt"> <A HREF="#valkyries04272121a008">CALCULATION
    OF NAV</A> </TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 0pt"> 44 </TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: small-caps 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; text-indent: -13.5pt; padding-top: 0in; padding-bottom: 0pt; padding-left: 13.5pt"> <A HREF="#valkyries04272121a009">DESCRIPTION
    OF THE TRUST</A> </TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 0pt"> 45 </TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: small-caps 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; text-indent: -13.5pt; padding-top: 0in; padding-bottom: 0pt; padding-left: 13.5pt"><A HREF="#valkyries04272121a010">THE SPONSOR</A></TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 0pt">46</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: small-caps 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; text-indent: -13.5pt; padding-top: 0in; padding-bottom: 0pt; padding-left: 13.5pt"><A HREF="#valkyries04272121a011">THE TRUSTEE</A></TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 0pt">47</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: small-caps 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; text-indent: -13.5pt; padding-top: 0in; padding-bottom: 0pt; padding-left: 13.5pt"><A HREF="#valkyries04272121a012">THE TRANSFER AGENT</A></TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 0pt">47</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: small-caps 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; text-indent: -13.5pt; padding-top: 0in; padding-bottom: 0pt; padding-left: 13.5pt"><A HREF="#valkyries04272121a013">THE ADMINISTRATOR</A></TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 0pt">48</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: small-caps 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; text-indent: -13.5pt; padding-top: 0in; padding-bottom: 0pt; padding-left: 13.5pt"><A HREF="#valkyries04272121a014">AUTHORIZED PARTICIPANTS</A></TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 0pt">48</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: small-caps 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; text-indent: -13.5pt; padding-top: 0in; padding-bottom: 0pt; padding-left: 13.5pt"><A HREF="#valkyries04272121a015">LIQUIDITY PROVIDERS</A></TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 0pt">48</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: small-caps 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; text-indent: -13.5pt; padding-top: 0in; padding-bottom: 0pt; padding-left: 13.5pt"><A HREF="#valkyries04272121a016">THE CUSTODIAN</A></TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 0pt">49</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: small-caps 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; text-indent: -13.5pt; padding-top: 0in; padding-bottom: 0pt; padding-left: 13.5pt"><A HREF="#valkyries04272121a017">CONFLICTS OF INTEREST</A></TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 0pt">49</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: small-caps 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; text-indent: -13.5pt; padding-top: 0in; padding-bottom: 0pt; padding-left: 13.5pt"><A HREF="#valkyries04272121a018">DESCRIPTION OF THE SHARES</A></TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 0pt">51</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: small-caps 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; text-indent: -13.5pt; padding-top: 0in; padding-bottom: 0pt; padding-left: 13.5pt"><A HREF="#valkyries04272121a019">CUSTODY OF THE TRUST&rsquo;S BITCOINS</A></TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 0pt">53</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: small-caps 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; text-indent: -13.5pt; padding-top: 0in; padding-bottom: 0pt; padding-left: 13.5pt"><A HREF="#valkyries04272121a020">DESCRIPTION OF CREATION AND REDEMPTION OF SHARES</A></TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 0pt">54</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: small-caps 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; text-indent: -13.5pt; padding-top: 0in; padding-bottom: 0pt; padding-left: 13.5pt"> <A HREF="#valkyries04272121a022">EXPENSES</A> </TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 0pt"> 59 </TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: small-caps 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; text-indent: -13.5pt; padding-top: 0in; padding-bottom: 0pt; padding-left: 13.5pt"> <A HREF="#valkyries04272121a023">BOOK-ENTRY-ONLY
    SHARES</A> </TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 0pt"> 60 </TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: small-caps 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; text-indent: -13.5pt; padding-top: 0in; padding-bottom: 0pt; padding-left: 13.5pt"> <A HREF="#valkyries04272121a023-a">PROVISIONS
    OF LAW</A> </TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 0pt"> 61 </TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: small-caps 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; text-indent: -13.5pt; padding-top: 0in; padding-bottom: 0pt; padding-left: 13.5pt"> <A HREF="#valkyries04272121a023-b">MANAGEMENT;
    VOTING BY SHAREHOLDERS</A> </TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 0pt"> 61 </TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: small-caps 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; text-indent: -13.5pt; padding-top: 0in; padding-bottom: 0pt; padding-left: 13.5pt"> <A HREF="#valkyries04272121a023-c">MEETINGS</A> </TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 0pt"> 61 </TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: small-caps 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; text-indent: -13.5pt; padding-top: 0in; padding-bottom: 0pt; padding-left: 13.5pt"> <A HREF="#valkyries04272121a023-d">BOOKS
    AND RECORDS</A> </TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 0pt"> 61 </TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: small-caps 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; text-indent: -13.5pt; padding-top: 0in; padding-bottom: 0pt; padding-left: 13.5pt"><A HREF="#valkyries04272121a023-e">GOVERNING LAW; CONSENT TO DELAWARE JURISDICTION</A></TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 0pt">61</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: small-caps 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; text-indent: -13.5pt; padding-top: 0in; padding-bottom: 0pt; padding-left: 13.5pt"><A HREF="#valkyries04272121a024">STATEMENTS, FILINGS AND REPORTS</A></TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 0pt">62</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: small-caps 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; text-indent: -13.5pt; padding-top: 0in; padding-bottom: 0pt; padding-left: 13.5pt"><A HREF="#valkyries04272121a025">DESCRIPTION OF THE TRUST DOCUMENTS</A></TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 0pt">63</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: small-caps 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; text-indent: -13.5pt; padding-top: 0in; padding-bottom: 0pt; padding-left: 13.5pt"><A HREF="#valkyries04272121a026">U.S. FEDERAL INCOME TAX CONSEQUENCES</A></TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 0pt">70</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: small-caps 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; text-indent: -13.5pt; padding-top: 0in; padding-bottom: 0pt; padding-left: 13.5pt"><A HREF="#valkyries04272121a027">ERISA AND RELATED CONSIDERATIONS</A></TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 0pt">74</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: small-caps 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; text-indent: -13.5pt; padding-top: 0in; padding-bottom: 0pt; padding-left: 13.5pt"><A HREF="#valkyries04272121a028">PLAN OF DISTRIBUTION</A></TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 0pt">75</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: small-caps 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; text-indent: -13.5pt; padding-top: 0in; padding-bottom: 0pt; padding-left: 13.5pt"><A HREF="#valkyries04272121a029">LEGAL MATTERS</A></TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 0pt">76</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: small-caps 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; text-indent: -13.5pt; padding-top: 0in; padding-bottom: 0pt; padding-left: 13.5pt"><A HREF="#valkyries04272121a030">EXPERTS</A></TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 0pt">76</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: small-caps 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; text-indent: -13.5pt; padding-top: 0in; padding-bottom: 0pt; padding-left: 13.5pt"><A HREF="#valkyries04272121a030-a">SUMMARY OF PROMOTIONAL AND SALES MATERIAL</A></TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 0pt">76</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: small-caps 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; text-indent: -13.5pt; padding-top: 0in; padding-bottom: 0pt; padding-left: 13.5pt"><A HREF="#valkyries04272121a030-b">PRIVACY POLICY</A> </TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 0pt">76</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: small-caps 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; text-indent: -13.5pt; padding-top: 0in; padding-bottom: 0pt; padding-left: 13.5pt"><A HREF="#valkyries04272121a031">WHERE YOU CAN FIND MORE INFORMATION</A></TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 0pt">76</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: small-caps 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; text-indent: -13.5pt; padding-top: 0in; padding-bottom: 0pt; padding-left: 13.5pt"> <A HREF="#valkyries04272121a031-a">REPORT
    OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM</A> </TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 0pt"> 77 </TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: small-caps 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; text-indent: -13.5pt; padding-top: 0in; padding-bottom: 0pt; padding-left: 13.5pt"><A HREF="#valkyries04272121a031-b">FINANCIAL STATEMENTS</A></TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 0pt">77</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: small-caps 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; text-indent: -13.5pt; padding-top: 0in; padding-bottom: 0pt; padding-left: 13.5pt"><A HREF="#valkyries04272121a032">GLOSSARY OF DEFINED TERMS</A></TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 0pt">77</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-indent: 0.5in"><B>Neither the Sponsor nor the Trust have
authorized anyone to provide you with information different from that contained in this prospectus, any amendment or supplement
to this prospectus or any free writing prospectus prepared by us or on our behalf. Neither the Sponsor nor the Trust take any responsibility
for, or can provide any assurance as to the reliability of, any information other than the information in this prospectus, any
amendment or supplement to this prospectus or any free writing prospectus prepared by the Sponsor, the Trust or on the Trust&rsquo;s
behalf. The Trust is offering to sell, and seeking offers to buy, the Trust&rsquo;s Shares only in jurisdictions where offers and
sales are permitted. The information in this prospectus is accurate only as of the date of this prospectus, regardless of the time
of delivery of this prospectus or any sale of the Trust&rsquo;s Shares. </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-indent: 0.5in">In this prospectus, unless otherwise stated
or the context otherwise requires, &ldquo;we,&rdquo; &ldquo;our&rdquo; and &ldquo;us&rdquo; refers to the Sponsor acting on behalf
of the Trust.</P>

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


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

<P STYLE="font: small-caps bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><A NAME="valkyries04272121a001"></A>STATEMENT REGARDING FORWARD-LOOKING
STATEMENTS</P>

<P STYLE="font: small-caps bold 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-indent: 0.5in">This prospectus contains &ldquo;forward-looking
statements&rdquo; with respect to the Trust&rsquo;s financial conditions, results of operations, plans, objectives, future performance
and business. Statements preceded by, followed by or that include words such as &ldquo;may,&rdquo; &ldquo;might,&rdquo; &ldquo;will,&rdquo;
&ldquo;should,&rdquo; &ldquo;expect,&rdquo; &ldquo;plan,&rdquo; &ldquo;anticipate,&rdquo; &ldquo;believe,&rdquo; &ldquo;estimate,&rdquo;
&ldquo;predict,&rdquo; &ldquo;potential&rdquo; or &ldquo;continue,&rdquo; the negative of these terms and other similar expressions
are intended to identify some of the forward-looking statements. 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 changes in market prices and conditions (for the bitcoin and the Shares), 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 made based on its perception of historical trends, current conditions and expected future developments, as well as
other factors appropriate in the circumstances. You should specifically consider the numerous risks outlined under &ldquo;Risk
Factors.&rdquo; 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:</P>

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

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

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

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

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD>the use of technology by us and our vendors, including the Custodian, in conducting our business, including disruptions in
our computer systems and data centers and our transition to, and quality of, new technology platforms;</TD></TR></TABLE>

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

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

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD>the costs and effect of any litigation or regulatory investigations;</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">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD>our ability to maintain a positive reputation; and</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD>other world economic and political developments.</TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Consequently, all the forward-looking statements
made in this prospectus are qualified by these cautionary statements, and there can be no assurance that the actual results or
developments the Sponsor anticipates will be realized or, even if substantially realized, that they will result in the expected
consequences to, or have the expected effects on, the Trust&rsquo;s operations or the value of the Shares. Should one or more of
these risks discussed in &ldquo;Risk Factors&rdquo; or other uncertainties materialize, or should underlying assumptions prove
incorrect, actual outcomes may vary materially from those described in forward-looking statements. Forward-looking statements are
made based on the Sponsor&rsquo;s beliefs, estimates and opinions on the date the statements are made and neither the Trust nor
the Sponsor is under a duty or undertakes an obligation to update forward-looking statements if these beliefs, estimates and opinions
or other circumstances should change, other than as required by applicable laws. Moreover, neither the Trust, the Sponsor, nor
any other person assumes responsibility for the accuracy and completeness of any of these forward-looking statements. Investors
are therefore cautioned against placing undue reliance on forward-looking statements.</P>

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

<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><A NAME="a_001"></A><FONT STYLE="text-transform: uppercase"><B>Industry
and Market Data</B></FONT></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: 0.5in">Although we are responsible for all disclosure
contained in this prospectus, in some cases we have relied on certain market and industry data obtained from third-party sources
that we believe to be reliable. Market estimates are calculated by using independent industry publications in conjunction with
our assumptions regarding the bitcoin industry and market. While we are not aware of any misstatements regarding any market, industry
or similar data presented herein, such data involves risks and uncertainties and is subject to change based on various factors,
including those discussed under the headings &ldquo;Statement Regarding Forward-Looking Statements&rdquo; and &ldquo;Risk Factors&rdquo;
in this prospectus.</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: 0.5in">&nbsp;&nbsp;</P>


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

<P STYLE="font: small-caps bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><A NAME="valkyries04272121a002"></A>PROSPECTUS SUMMARY</P>

<P STYLE="font: small-caps bold 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-indent: 0.5in"><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 which is material and/or which may be important to you. You should
read this entire prospectus, including &ldquo;Risk Factors&rdquo; beginning on page 7, before making an investment decision about
the Shares. </I></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"><B>Trust Overview </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-indent: 0.5in"> The investment objective of the Trust
is for the Shares to reflect the performance of the value of a bitcoin as represented by the CF Bitcoin US Settlement Price (the
&ldquo;Index&rdquo;), less the Trust&rsquo;s liabilities and expenses. In seeking to achieve its investment objective, the Trust will hold
bitcoin and will value its Shares daily based on the value of bitcoin as reflected by the Index, which is an independently calculated
value based on an aggregation of executed trade flow of major bitcoin spot exchanges. The Index currently uses substantially the
same methodology as the CME CF Bitcoin Reference Rate (&ldquo;BRR&rdquo;), including utilizing the same five bitcoin exchanges, which is the
underlying rate to determine settlement of CME bitcoin futures contracts, except that the Index is calculated as of 4 pm Eastern
time, whereas the BRR is calculated as of 4 pm London time. There can be no assurance that the Trust will achieve its investment
objective. The Shares are designed to provide investors with a cost-effective and convenient way to invest in bitcoin. Because
the value of the Shares is tied to the value of the bitcoins held by the Trust, it is important to first understand the investment
attributes of, and the market for, bitcoins. Investing in the Shares does not insulate the investor from certain risks, including
price volatility. See &ldquo;Risk Factors.&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-indent: 0.5in">Bitcoins are a digital commodity based on
an open source protocol. Bitcoins are not issued by any government, bank or central organization, and instead exist on an online,
peer-to-peer computer network (the &ldquo;Bitcoin Network&rdquo;) that hosts a public transaction ledger where bitcoin transfers
are recorded (the &ldquo;Blockchain&rdquo;). The Bitcoin Network is accessed through software, and software governs bitcoin creation,
movement and ownership.</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: 0.5in">Bitcoins have no physical existence beyond
the record of transactions on the Blockchain. The Blockchain is a public record of the creation, custody and flow of funds of bitcoins,
showing every transaction effected on the Blockchain among users&rsquo; online &ldquo;digital wallets&rdquo; where their bitcoins
are effectively stored. Bitcoins may be sent or received through users&rsquo; digital wallets by using public and private keys
that are part of the Bitcoin Network&rsquo;s cryptographic security mechanism.</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: 0.5in"> The Shares represent units of fractional undivided
beneficial interest in and ownership of the Trust and are expected to be traded under the ticker symbol &ldquo;[&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;]&rdquo;
on the NYSE Arca. The Trust issues Baskets of Shares to Authorized Participants on an ongoing basis in exchange for bitcoins that are
deposited for safekeeping with the Custodian (as defined below). The Trust will distribute bitcoins by redeeming Shares in Baskets on
an ongoing basis from Authorized Participants. See &ldquo;Description of the Shares&mdash;Redemption of the Shares.&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: 0"> <B>The CF Bitcoin US Settlement Price</B> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 10pt 0 0; text-indent: 0.5in"> The Index, which was introduced
on January&nbsp;27, 2021, is based on materially the same methodology (except calculation time) as the Administrator&rsquo;s BRR,
which was first introduced on November&nbsp;14, 2016 and is the rate on which bitcoin futures contracts are cash-settled in U.S.
dollars at the CME. The Index is designed based on the IOSCO Principals for Financial Benchmarks. The administrator of the Index
is CF Benchmarks Ltd. (the &ldquo;Benchmark Administrator&rdquo;). The Index is calculated daily and aggregates the notional value
of bitcoin trading activity across major bitcoin spot exchanges. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 10pt 0 0; text-indent: 0.5in"> The Sponsor believes that the use
of the Index is reflective of a reasonable valuation of the average spot price of bitcoin and that resistance to manipulation
is a priority aim of its design methodology. The methodology: (i)&nbsp;takes an observation period and divides it into equal partitions
of time; (ii)&nbsp;then calculates the volume-weighted median of all transactions within each partition; and (iii)&nbsp;the value
is determined from the arithmetic mean of the volume-weighted medians, equally weighted. By employing the foregoing steps, the
Index thereby seeks to ensure that transactions in bitcoin conducted at outlying prices do not have an undue effect on the value
of a specific partition, large trades or clusters of trades transacted over a short period of time will not have an undue influence
on the index level, and the effect of large trades at prices that deviate from the prevailing price are mitigated from having
an undue influence on the benchmark level. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-indent: 0.5in"> In addition, the Sponsor notes that
an oversight function is implemented by the Benchmark Administrator in seeking to ensure that the Index is administered through
codified policies for Index integrity. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-indent: 0.5in"> Index data and the description of
the Index are based on information made publicly available by the Benchmark Administrator on its website at https://www.cfbenchmarks.com.
<B>None of the information on the Benchmark Administrator&rsquo;s website is incorporated by reference into this prospectus.</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: 0pt 0"><B>Trust Structure </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-indent: 0.5in">The Trust is a Delaware statutory trust,
organized on January 20, 2021, that operates pursuant to a trust agreement between the Sponsor and the
Trustee (the &ldquo;Trust Agreement&rdquo;), authorizing the Sponsor to enter into a custody agreement (the &ldquo;Custodian Agreement&rdquo;)
with Coinbase Custody Trust Company, LLC (the &ldquo;Custodian&rdquo;). Pursuant to the Custodian Agreement, the Custodian establishes
accounts that hold the bitcoins deposited with the Custodian on behalf 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-indent: 0.5in"></P>

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<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: 0.5in"> The Trust&rsquo;s Sponsor is Valkyrie
Digital Assets LLC, a Delaware limited liability company and a wholly owned subsidiary of Valkyrie Investments Inc. Under the Delaware
Limited Liability Company Act and the governing documents of the Sponsor, Valkyrie Investments Inc., the sole member of the Sponsor,
is not responsible for the debts, obligations and liabilities of the Sponsor solely by reason of being the sole member 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-indent: 0.5in"> The Sponsor arranged for the creation of
the Trust and is arranging for the registration of the Shares for their public offering in the United States and their listing on
the NYSE Arca. The Sponsor is obligated to assume and pay the following fees and expenses of the Trust: the Trustee&rsquo;s fee
payable under the Trust Agreement, the Custodian Fee (as defined herein), the Transfer Agent Fee (as defined herein), the Marketing
Fee (as defined herein), applicable license fees, including the licensing fees related to the Index License Agreement (as defined
herein), the Administrator Fee (as defined herein), fees and expenses related to trading of Shares on the NYSE Arca (including
marketing, legal and audit fees and expenses), legal expenses, audit fees, regulatory fees, including any fees relating to the
registration of the Shares with the SEC, printing and mailing costs and costs of maintaining the Trust&rsquo;s website. The Sponsor
also paid the costs of the Trust&rsquo;s organization. </P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Sponsor and the Administrator are generally
responsible for the administration of the Trust under the provisions of the Trust Agreement. The responsibilities of the Sponsor
include (i)&nbsp;selecting and monitoring the Trust&rsquo;s Service Providers (as defined herein) and from time to time engaging
additional, successor or replacement Service Providers and (ii)&nbsp;upon dissolution of the Trust, distributing the Trust&rsquo;s
remaining bitcoins or the cash proceeds of the sale of the Trust&rsquo;s remaining bitcoins (determined at the sole discretion
of the Sponsor) to the owners of record of the Shares. The responsibilities of the Administrator include (i)&nbsp;preparing and
providing periodic reports on behalf of the Trust to investors, (ii)&nbsp;processing orders to create and redeem Baskets and coordinating
the processing of such orders with the Custodian, the Transfer Agent and The Depository Trust Company (&ldquo;DTC&rdquo;), (iii)&nbsp;publishing
the Trust&rsquo;s Bitcoin Holdings and Bitcoin Holdings per Share (each as defined herein) each business day at 4:00 p.m., New
York time, or as soon thereafter as practicable and (iv)&nbsp;instructing the Custodian to transfer the Trust&rsquo;s bitcoins,
as needed to pay the Sponsor&rsquo;s Fee and any Additional Trust Expenses (each as defined herein).</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: 0.5in">Although the Trust&rsquo;s bitcoins are
not stored in a physical sense, a record of the Trust&rsquo;s bitcoins are identifiable on the Bitcoin blockchain via digital addresses
established by the Custodian. These digital addresses are contained in a Wallet Account and a Vault Account (each as defined herein)
which together constitute the &ldquo;Bitcoin Account.&rdquo; The Bitcoin Account consists of multi-signature digital addresses,
which require several distinct &ldquo;private keys&rdquo; to authenticate access to and transfer of the Trust&rsquo;s bitcoins
from the Bitcoin Account. Notwithstanding bitcoins payable to the Sponsor for its management fee or bitcoins deposited into or
removed from the Trust in connection with the creation or redemption of Baskets, respectively, the Sponsor endeavors to instruct
the Custodian to maintain all of the Trust&rsquo;s bitcoins within a Vault Account. All of the private keys for the Trust&rsquo;s
Vault Account are kept in &ldquo;cold storage,&rdquo; which means that the bitcoins held in the Trust&rsquo;s Vault Account are
not directly connected to, or accessible from, the internet or other networks without the private keys. The Custodian is responsible
for the safekeeping of the Trust&rsquo;s private keys used to access the Bitcoin Account and facilitates the transfer of bitcoins
in accordance with the Sponsor&rsquo;s instructions.</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: 0.5in">The general role, responsibilities and regulation
of the Sponsor, Trustee, Administrator and Custodian are further described in &ldquo;The Sponsor,&rdquo; &ldquo;The Trustee,&rdquo;
&ldquo;The Administrator&rdquo; and &ldquo;The Custodian,&rdquo; respectively. Detailed descriptions of certain specific rights
and duties of the Sponsor, Trustee, Administrator and Custodian are set forth in &ldquo;Description of the Trust Documents&mdash;Description
of the Trust Agreement&rdquo; and &ldquo;&mdash;Description of the Custodian Agreement,&rdquo; respectively. The Trust Agreement
and Custodian Agreement are collectively referred to herein as &ldquo;Trust Documents.&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"><B>Bitcoin History </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-indent: 0.5in">The Bitcoin Network is a recent technological
innovation, and the bitcoins that are created, transferred, used and stored by entities and individuals have certain features associated
with several types of assets, most notably commodities and currencies. Many U.S. regulators, including the Financial Crimes Enforcement
Network of the U.S. Department of the Treasury (&ldquo;FinCEN&rdquo;), the CFTC, the U.S. Internal Revenue Service (&ldquo;IRS&rdquo;),
and state regulators, including the New York Department of Financial Services (&ldquo;NYDFS&rdquo;), have made official pronouncements
or issued guidance or rules regarding the treatment of bitcoins and other digital currencies. However, other U.S. and state agencies,
such as the SEC, have not made official pronouncements or issued guidance or rules regarding the treatment of bitcoins. Similarly,
the treatment of bitcoins and other digital currencies is often uncertain or contradictory in other countries. The regulatory uncertainty
surrounding the treatment of bitcoins creates risks for the Trust and its Shares. See &ldquo;Risk Factors&mdash;Risk Factors Related
to the Regulation of the Trust and the Shares.&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-indent: 0.5in">Some of the notable features of the Trust
and its Shares include the holding of bitcoins in the Trust&rsquo;s own accounts, the experience of the Sponsor&rsquo;s management
team in the Bitcoin industry and the use of the Custodian to protect the Trust&rsquo;s private keys. See &ldquo;Activities of the
Trust.&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-indent: 0.5in"></P>

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

<P STYLE="font: small-caps 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 84.95pt; text-indent: -84.95pt"><FONT STYLE="font-variant: normal"><B>Emerging
Growth Company Status </B></FONT></P>

<P STYLE="font: small-caps 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 84.95pt; text-indent: -84.95pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Trust is an &ldquo;emerging growth company&rdquo;
as defined in the Jumpstart Our Business Startups Act of 2012 (the &ldquo;JOBS Act&rdquo;). For as long as the Trust is an emerging
growth company, unlike other public companies, it will not be required to, among other things:</P>

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

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

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

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

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

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

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

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

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

<P STYLE="font: small-caps 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 84.95pt; text-indent: -84.95pt"><FONT STYLE="font-variant: normal"><B>Principal
Offices </B></FONT></P>

<P STYLE="font: small-caps 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 84.95pt; text-indent: -84.95pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Trustee&rsquo;s principal office is
located at 251 Little Falls Drive, Wilmington, DE 19808. The Sponsor&rsquo;s principal office is located at 100 Crescent Court,
Floor 7, Dallas, Texas 75201 and its telephone number is (202)&nbsp;854-1343. The Custodian&rsquo;s principal office is located
at 200 Park Avenue South, Suite 1208, New York, NY 10003.</P>

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


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-variant: small-caps"><B></B></FONT></P>

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

<P STYLE="font: small-caps bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><A NAME="valkyries04272121a003"></A>THE OFFERING</P>

<P STYLE="font: small-caps bold 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 1pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 1pt">&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="padding: 0; text-indent: 0; width: 2.5in">Shares offered by the Trust </TD>
    <TD STYLE="padding: 0; text-indent: 0">Shares representing units of fractional undivided beneficial interest in, and ownership of, the Trust.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD></TR>

<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0; text-indent: 0; width: 2.5in">Use of proceeds </TD>
    <TD>Proceeds received by the Trust from the issuance and sale of Baskets will consist of bitcoin deposits. Such bitcoins will only
be (i)&nbsp;owned by the Trust and held by the Custodian, (ii)&nbsp;disbursed (or converted to U.S.&nbsp;Dollars, if necessary)
to pay the Trust&rsquo;s expenses, (iii)&nbsp;distributed to Authorized Participants or Liquidity Providers in connection with
the redemption of Baskets and (iv)&nbsp;liquidated in the event that the Trust terminates or as otherwise required by law or regulation.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>

<TR STYLE="vertical-align: top">
    <TD STYLE="width: 2.5in"> NYSE Arca Exchange symbol </TD>
    <TD>[&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;]</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>

<TR STYLE="vertical-align: top">
    <TD STYLE="width: 2.5in">Bitcoin Index Price </TD>
    <TD> For purposes of determining the number of bitcoins required to create and redeem Baskets, the Trust uses the Index
    to calculate a volume-weighted per-bitcoin value in U.S. Dollars (the &ldquo;Bitcoin Index Price&rdquo;). The Bitcoin Index
    Price aggregates the trade flow of major bitcoin spot exchanges during a specific calculation window into a once-a-day reference
    rate of the U.S. dollar price of bitcoin. The Bitcoin Index Price is published between 4:00 p.m. and 4:30 p.m., Eastern time,
    every day including weekends and holidays. The Bitcoin Index Price is calculated using a non-GAAP methodology and is not used
    in the Trust&rsquo;s financial statements included in this prospectus. </TD></TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 2.5in; text-indent: -2.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 2.5in; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 2.5in; text-indent: 0in"> For more information on the
CF Bitcoin US Settlement Price, see &ldquo;Use of the CF Bitcoin US Settlement Price&rdquo; and &ldquo;Calculation of NAV&rdquo;
below. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 2.5in; text-indent: 0in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 2.5in">CUSIP</TD><TD>[&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;]</TD></TR>                                                                                                                 <TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD></TR>

<TR STYLE="vertical-align: top">
    <TD STYLE="width: 2.5in">Creation and Redemption </TD>
    <TD>The Trust issues Shares on an ongoing basis, but only in one or more whole Baskets. The Trust intends to redeem Shares in Baskets
on an ongoing basis from Authorized Participants. See &ldquo;Description of the Shares&mdash;Redemption of the Shares.&rdquo;</TD></TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 2.5in; text-indent: -2.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 2.5in; text-indent: 0in"> A Basket equals 50,000 Shares.
As of the date of this prospectus, each Share represents approximately [&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;] of a bitcoin. See &ldquo;Description
of Creation and Redemption of Shares.&rdquo; </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 2.5in; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 2.5in; text-indent: 0in"> The creation and redemption
of Baskets require the delivery to the Trust, or the distribution by the Trust, of the number of bitcoins represented by the Baskets
being created or redeemed, the number of which is determined by dividing the number of bitcoins owned by the Trust at 4:00 p.m.,
New York time, on the trade date of a creation or redemption order, as adjusted for the number of whole and fractional bitcoins
constituting accrued but unpaid fees and expenses of the Trust, by the number of Shares outstanding at such time (the quotient
so obtained calculated to one one-hundred-millionth of one bitcoin), and multiplying such quotient by 50,000 (the &ldquo;Basket
Bitcoin Amount&rdquo;). The number of bitcoins required to create a Basket, or to be delivered upon the redemption of a Basket,
will gradually decrease over time due to the transfer of the Trust&rsquo;s bitcoins to pay the Sponsor&rsquo;s Fee and the delivery
or sale of the Trust&rsquo;s bitcoins to pay any Trust expenses not assumed by the Sponsor. The Trust will not accept or distribute
cash in exchange for Baskets, other than upon its dissolution. See &ldquo;Description of Creation and Redemption of Shares&rdquo;
and &ldquo;Activities of the Trust&mdash;Trust Expenses.&rdquo; </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 2.5in; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 2.5in; text-indent: 0in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 2.5in; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 2.5in; text-indent: 0in">Although the Trust will create Baskets
only upon the receipt of bitcoins, and will redeem Baskets only by distributing bitcoins, an Authorized Participant may deposit
cash with the Administrator, which will facilitate the purchase or sale of bitcoins through a Liquidity Provider on behalf of an
Authorized Participant (the &ldquo;Conversion Procedures&rdquo;). See &ldquo;Description of Creation and Redemption of Shares.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 2.5in; text-indent: 0in">&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="width: 2.5in">The Trust&rsquo;s Bitcoin Holdings </TD>
    <TD>The Trust&rsquo;s &ldquo;Bitcoin Holdings&rdquo; is the aggregate U.S. Dollar value of the Trust&rsquo;s bitcoins less its liabilities
(which include estimated accrued but unpaid fees and expenses), as calculated using the Bitcoin Index Price. The Administrator
calculates the Trust&rsquo;s Bitcoin Holdings on a daily basis. </TD></TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 2.5in; text-indent: -2.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 2.5in; text-indent: 0in">The Administrator also calculates
the Trust&rsquo;s Bitcoin Holdings per Share, which equals the Trust&rsquo;s Bitcoin Holdings divided by the number of Shares then
outstanding. The Sponsor will publish the Trust&rsquo;s Bitcoin Holdings and Bitcoin Holdings per Share each business day as of
4:00 p.m., New York time, or as soon thereafter as practicable at the Trust&rsquo;s website at https://www.valkyriefunds.io. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 2.5in; text-indent: 0in">&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="width: 2.5in">Trust expenses </TD>
    <TD>The Trust&rsquo;s only ordinary recurring expense is expected to be the remuneration due to the Sponsor (the &ldquo;Sponsor&rsquo;s
Fee&rdquo;). The Sponsor&rsquo;s Fee will be determined by applying a [&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;]% annual rate to the Trust&rsquo;s
Bitcoin Holdings, and converting the resulting U.S. Dollar amount into bitcoins at the Bitcoin Index Price, on a daily basis.
The Sponsor&rsquo;s Fee will be payable in bitcoins at such times as determined in the Sponsor&rsquo;s sole discretion. Payments
of the Sponsor&rsquo;s Fee will occur monthly in arrears.</TD></TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 2.5in; text-indent: -2.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 2.5in; text-indent: 0in">To pay the Sponsor&rsquo;s Fee,
the Custodian will, when directed by the Sponsor, (i)&nbsp;withdraw from the Bitcoin Account the number of bitcoins equal to the
accrued but unpaid Sponsor&rsquo;s Fee, determined as described above, and (ii)&nbsp;transfer such bitcoins to an account maintained
by the Custodian for the Sponsor. The Sponsor, from time to time, may waive all or a portion of the Sponsor&rsquo;s Fee in its
discretion for stated periods of time. The Sponsor is under no obligation to extend a waiver after the end of any such stated period,
and, if such waiver is not continued, the Sponsor&rsquo;s Fee will be paid in full for subsequent periods. Presently, the Sponsor
does not intend to waive any of the Sponsor&rsquo;s Fee. The Sponsor will, from time to time, instruct the Custodian to deliver
bitcoins to the Sponsor&rsquo;s account in payment of the Sponsor&rsquo;s Fee.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 2.5in; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 2.5in; text-indent: 0in">As consideration for its receipt
of the Sponsor&rsquo;s Fee, the Sponsor is obligated to assume and pay the following fees and expenses of the Trust: the Marketing
Fee, the Administrator Fee, the Custodian Fee, the Transfer Agent Fee, the Trustee fee, applicable license fees, including the
licensing fees related to the Index License Agreement, fees and expenses related to trading of Shares on NYSE Arca (including marketing,
legal and audit fees and expenses), legal expenses, audit fees, regulatory fees, including any fees relating to the registration
of the Shares with the SEC, printing and mailing costs and costs of maintaining the Trust&rsquo;s website (the &ldquo;Sponsor-paid
Expenses&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 2.5in; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 2.5in; text-indent: 0in">The Trust may incur certain extraordinary,
non-recurring expenses and indemnification expenses that are not contractually assumed by the Sponsor (collectively, &ldquo;Additional
Trust Expenses&rdquo;). See &ldquo;Expenses.&rdquo; In such circumstances, the Sponsor will cause the Custodian to convert bitcoins
into U.S. Dollars or other fiat currencies at the Actual Exchange Rate (as defined herein), in such quantity as may be necessary
to pay such Additional Trust Expenses.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 2.5in; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 2.5in; text-indent: 0in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 2.5in; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 2.5in; text-indent: 0in">The number of bitcoins to be delivered
to the Sponsor in payment of the Sponsor&rsquo;s Fee or sold to pay Additional Trust Expenses will vary from time to time depending
on the level of the Trust&rsquo;s expenses and the value of bitcoins, as determined using the Bitcoin Index Price or the Actual
Exchange Rate, as applicable. See &ldquo;Activities of the Trust&mdash;Trust Expenses.&rdquo; Assuming that the Trust is treated
as a grantor trust for U.S. federal income tax purposes, each delivery or sale of bitcoins by the Trust for the payment of the
Sponsor&rsquo;s Fee or any Additional Trust Expenses will be a taxable event for Shareholders. See &ldquo;U.S. Federal Income Tax
Consequences&mdash;Tax Consequences to U.S. Holders.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 2.5in; text-indent: 0in">&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="width: 2.5in">Termination events </TD>
    <TD>Upon dissolution of the Trust and surrender of Shares by the Shareholders, Shareholders will receive a distribution in U.S. Dollars
or in bitcoins, at the sole discretion of the Sponsor, after the Sponsor has paid or made provision for the Trust&rsquo;s obligations.
See &ldquo;Description of the Trust Documents&mdash;Description of the Trust Agreement&mdash;The Trustee&mdash;Termination of
the Trust.&rdquo;</TD></TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 2.5in; text-indent: -2.5in">&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="width: 2.5in">Authorized Participants </TD>
    <TD>Baskets may be created or redeemed only by Authorized Participants. Each Authorized Participant must (i)&nbsp;be a registered
broker-dealer, (ii)&nbsp;have entered into a Participant Agreement with the Sponsor, the Administrator and the Liquidity Providers
and (iii)&nbsp;have access to an Authorized Participant Self-Administered Account (as defined herein) in the case of the creation
or redemption of Baskets that do not use the Conversion Procedures. The Participant Agreement provides the procedures for the
creation and redemption of Baskets. See &ldquo;Description of Creation and Redemption of Shares.&rdquo;</TD></TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 2.5in; text-indent: -2.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 2.5in; text-indent: 0in">The Trust has engaged [&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;]
as Authorized Participants. Additional Authorized Participants may be added at any time, subject to the discretion of the Sponsor.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 2.5in; text-indent: 0in">&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="width: 2.5in">Liquidity Providers </TD>
    <TD>Liquidity Providers facilitate the purchase and sale of bitcoins on behalf of Authorized Participants creating or redeeming Shares
in-cash. Liquidity Providers must have entered into a Participant Agreement with the Sponsor, the Trust and each Authorized Participant.
The Participant Agreement provides the procedures for the purchase and sale of bitcoins by the Liquidity Providers. See &ldquo;Description
of Creation and Redemption of Shares.&rdquo;</TD></TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 2.5in; text-indent: -2.5in">&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="width: 2.5in">Clearance and settlement </TD>
    <TD>The Shares are evidenced by one or more global certificates that the Transfer Agent issues to DTC. The Shares are, and will only
be, available in book-entry form. Shareholders may hold their Shares through DTC if they are direct participants in DTC (&ldquo;DTC
Participants&rdquo;), or indirectly through entities that are DTC Participants.</TD></TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 2.5in; text-indent: -2.5in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-variant: small-caps"><B></B></FONT></P>

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

<P STYLE="font: small-caps bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><A NAME="valkyries04272121a004"></A>RISK FACTORS</P>

<P STYLE="font: small-caps bold 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-indent: 0.5in"><I>You should consider carefully the risks
described below before making an investment decision. You should also refer to the other information included in this prospectus,
including the Trust&rsquo;s financial statements and related notes thereto. </I></P>

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

<P STYLE="font: small-caps 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 84.95pt; text-indent: -84.95pt"><FONT STYLE="font-variant: normal"><B>Risk
Factors Related to the Bitcoin Network and Bitcoins <I>&nbsp;</I></B></FONT></P>

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

<P STYLE="text-indent: 0.5in; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>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 blockchain technologies and to the fundamental investment characteristics of digital assets.</I></B></P>

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

<P STYLE="text-indent: 0.5in; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">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 the Bitcoin network and other digital asset networks, such as the infancy of their development,
their dependence on the internet and other technologies, their dependence on the role played by miners and developers and the potential
for malicious activity. For example, the realization of one or more of the following risks could materially adversely affect the
value of the Shares:</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="">Digital asset networks and the software used to operate them are in the early stages of development.
Digital assets have experienced, and we expect will experience in the future, sharp fluctuations in value. Given the infancy of
the development of digital asset networks, parties may be unwilling to transact in digital assets, which would dampen the growth,
if any, of digital asset networks.</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="">The trading prices of many digital assets, including bitcoin, are derived from a variety of factors
including supply and demand for bitcoin, as well as more indirect and macro factors such as interest rates, monetary policy, broader
market uncertainty and geopolitical, social and economic events.</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="">The trading prices of many digital assets, including bitcoin, have experienced extreme volatility
in recent periods and may continue to do so. For instance, there were steep increases in the value of certain digital assets, including
bitcoin, over the course of 2017, and multiple market observers asserted that digital assets were experiencing a &ldquo;bubble.&rdquo;
These increases were followed by steep drawdowns throughout 2018 in digital asset trading prices, including for Bitcoin. These
drawdowns notwithstanding, Bitcoin prices have increased significantly again during 2019, decreased significantly again in 2020
amidst broader market declines as a result of the novel coronavirus outbreak, and increased again in early 2021 to reach all time
highs. The bitcoin markets may still be experiencing a bubble or may experience a bubble again in the future. 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></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="">Digital asset networks are dependent upon the internet. A disruption of the internet or a digital
asset network, such as the Bitcoin network, would affect the ability to transfer digital assets, including bitcoin, and, consequently,
their value.</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="">The loss or destruction of a private key required to access a digital asset such as bitcoin may
be irreversible. If a private key is lost, destroyed or otherwise compromised and no backup of the private key is accessible, the
Trust will be unable to access the bitcoin held in the Bitcoin Account corresponding to that private key and the private key will
not be capable of being restored by the Bitcoin network.</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="">Miners, developers and users may 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"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="">Over the past several years, digital asset mining operations have evolved from individual users
mining with computer processors, graphics processing units and first generation application specific integrated circuit machines
to &ldquo;professionalized&rdquo; mining operations using proprietary hardware or sophisticated machines. If the profit margins
of digital asset mining operations are not sufficiently high, digital asset miners are more likely to immediately sell tokens earned
by mining, resulting in an increase in liquid supply of that digital asset, which would generally tend to reduce that digital asset&rsquo;s
market price.</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="">To the extent that any miners cease to record transactions that do not include the payment of a
transaction fee in solved blocks or do not record a transaction because the transaction fee is too low, such transactions will
not be recorded on the Blockchain until a block is solved by a miner who does not require the payment of transaction fees or is
willing to accept a lower fee. Any widespread delays in the recording of transactions could result in a loss of confidence in the
digital asset network.</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="">Many digital asset networks, including Bitcoin, face significant scaling challenges and are being
upgraded with various features to increase the speed and throughput of digital asset transactions. These attempts to increase the
volume of transactions may not be effective.</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="">The open-source structure of many digital asset network protocols, such as the protocol for the
Bitcoin network, means that developers and other contributors are generally not directly compensated for their contributions in
maintaining and developing such protocols. As a result, the developers and other contributors of a particular digital asset may
lack a financial incentive to maintain or develop the network, or may lack the resources to adequately address emerging issues.
Alternatively, some developers may be funded by companies whose interests are at odds with other participants in a particular digital
asset network. A failure to properly monitor and upgrade the protocol of the Bitcoin network could damage that network.</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="">The acceptance of software patches or upgrades by a significant, but not overwhelming, percentage
of the users and miners in a digital asset network, such as the Bitcoin network, could result in a &ldquo;fork&rdquo; in such network&rsquo;s
blockchain, resulting in the operation of multiple separate networks.</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="">Governance of the Bitcoin network is by voluntary consensus and open competition. As a result,
there may be a lack of consensus or clarity on the governance of the Bitcoin network, which may stymie the Bitcoin network&rsquo;s
utility and ability to grow and face challenges. In particular, it may be difficult to find solutions or martial sufficient effort
to overcome any future problems on the Bitcoin network, especially long-term problems. The foregoing notwithstanding, the Bitcoin
network&rsquo;s protocol is informally managed by a group of core developers that propose amendments to the Bitcoin network&rsquo;s
source code. The core developers evolve over time, largely based on self-determined participation. To the extent that a significant
majority of users and miners adopt amendments to the Bitcoin network, the Bitcoin network will be subject to new protocols that
may adversely affect the value of bitcoin.</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="">Bitcoin has only recently become selectively accepted as a means of payment by retail and commercial
outlets, and use of bitcoin by consumers to pay such retail and commercial outlets remains limited. As a result, the prices of
bitcoin are largely determined by speculators and miners, thus contributing to price volatility that makes retailers less likely
to accept it as a form of payment in the future.</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="">Banks may not provide banking services, or may cut off banking services, to businesses that provide
digital asset-related services or that accept digital assets as payment, which 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.</TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">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 Annual Report.</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: 0.5in"><B><I>The further development
and acceptance of the Bitcoin network and other digital asset systems, which represent a new and rapidly changing industry, are
subject to a variety of factors that are difficult to evaluate. The slowing or stopping of the development or acceptance of the
Bitcoin network may adversely affect an investment in the Shares.</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-indent: 0.5in">Digital assets such as bitcoin may be used,
among other things, to buy and sell goods and services or to transfer and store value by users. The Bitcoin network and other digital
asset networks are a new and rapidly evolving industry of which the Bitcoin network is a prominent, but not unique, part. The growth
of the digital asset industry in general, and the Bitcoin network in particular, is subject to a high degree of uncertainty. The
factors affecting the further development of the digital asset industry, as well as the Bitcoin network, include:</P>

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;text-indent: 0.5in"><B><I>The scheduled
creation of newly mined bitcoin and their subsequent sale may cause the price of bitcoin to decline, which could negatively affect
an investment in the Trust.</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-indent: 0.5in">Newly created bitcoin (&ldquo;newly mined
bitcoin&rdquo;) are generated through a process referred to as &ldquo;mining&rdquo; which involves the collection of a reward of
new bitcoin (also known as a &ldquo;coinbase&rdquo;). As of the date of this prospectus, the Bitcoin network creates 6.25 bitcoin
with each block added to the Blockchain; these newly mined bitcoin are awarded to the bitcoin miner that has added the block to
the Blockchain, which occurs on average approximately every 10 minutes. When the recipient makes newly mined bitcoin available
for sale, there can be downward pressure on the price of bitcoin as the new supply is introduced into the Bitcoin market. A bitcoin
mining operation may be more likely to sell a higher percentage of its newly created bitcoin, and more rapidly so, if it is operating
at a low profit margin, thus reducing the price of bitcoin. Lower bitcoin prices may result in further tightening of profit margins
for miners and decreasing profitability, thereby potentially causing even further selling pressure. Diminishing profit margins
and increasing sales of newly mined bitcoin could result in a reduction in the price of bitcoin, which could adversely impact an
investment in the Shares.</P>

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

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

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In addition to the coinbase, 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. Miners have historically accepted relatively low transaction confirmation
fees, because miners have a very low marginal cost of validating unconfirmed transactions. In addition, most iterations of mining
software will prioritize transaction recorded based on (i) thresholds selected by the user, (ii) the transaction fee paid with
the transaction, (iii) the value attached to the transaction and (iv) the time the transaction was received by the mining software.</P>

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

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Additionally, the coinbase reward for successfully
mining transactions (called the &ldquo;block reward&rdquo; or &ldquo;coinbase&rdquo;) will decrease over time. In May 2020, the
block reward was reduced from 12.5 to 6.25 bitcoin, and will further be reduced by half approximately every four years (e.g., to
3.125 bitcoin in 2024). As the block reward continues to decrease over time, the mining incentive structure may transition to a
higher reliance on transaction confirmation fees in order to incentivize miners to continue to dedicate processing power to the
blockchain. If transaction confirmation fees become too high, the marketplace may be reluctant to use bitcoin. Conversely, if the
combination of the block reward and transaction fees are too low, miners may not be incentivized to expend processing power to
solve blocks and confirmations of transactions on the Blockchain could be temporarily slowed. A reduction in the processing power
expended by miners on the Bitcoin Network could increase the likelihood of a malicious actor or botnet obtaining control. Any reduction
in infrastructure security may reduce confidence in the Bitcoin network or expose the Bitcoin network to a malicious actor or botnet
obtaining a majority of processing power on the Bitcoin network, reducing the confidence in and security of the Blockchain. Decreased
demand for bitcoin or reduced security on the Bitcoin network may adversely impact an investment in the Shares.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;text-indent: 0.5in"><B><I>Bitcoin transactions
are irrevocable and stolen or incorrectly transferred bitcoin may be irretrievable. As a result, any incorrectly executed bitcoin
transactions could adversely affect the value of the Shares.</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-indent: 0.5in">Bitcoin transactions are typically not
reversible without the consent and active participation of the recipient of the transaction. Once a transaction has been verified
and recorded in a block that is added to the Blockchain, an incorrect transfer or theft of bitcoin generally will not be reversible
and the Trust may not be capable of seeking compensation for any such transfer or theft. Although the Trust&rsquo;s transfers of
bitcoin will regularly be made to or from the Bitcoin Account, 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 Bitcoin Account in incorrect amounts or to unauthorized
third parties, or to uncontrolled accounts.</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: 0.5in">To the extent that the Trust is unable
to seek a corrective transaction with a third party recipient of an unauthorized or incorrect transaction or is incapable of identifying
the third party which has received the Trust&rsquo;s bitcoin through error or theft, the Trust will be unable to revert or otherwise
recover incorrectly transferred bitcoin. The Trust will also be unable to convert or recover its bitcoin transferred to uncontrolled
accounts. To the extent that the Trust is unable to seek redress for such error or theft, such loss could adversely affect the
value of the Shares.</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>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;text-indent: 0.5in"><B><I>A temporary or
permanent &ldquo;fork&rdquo; of the 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-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Bitcoin software is open source. Any user
can download the software, modify it and then propose that bitcoin users and miners adopt the modification. Bitcoin software updates
are user driven, meaning they are adopted when users of the software choose to update their software, in contrast to centralized
software solutions where a development company might &ldquo;push&rdquo; out mandatory software updates to the user community. When
a change is proposed that modifies the operation of the Bitcoin network and a substantial majority of users and miners consent
to the modification, the change is implemented and the Bitcoin network remains uninterrupted. However, if less than a substantial
majority of users and miners consent to the proposed modification, and the modification is nonetheless implemented by some users
and miners and the modification is not compatible or fully interoperable with the software prior to its modification, the consequence
would be what is known as a &ldquo;fork&rdquo; (i.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 tokens lacking interchangeability
across the respective networks. A party owning bitcoin at the time of the fork would hold equal amounts of both bitcoin and the
alternative forked digital asset (a &ldquo;IR Virtual Currency&rdquo;).</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: 0.5in">Forks have occurred already to the Bitcoin
Network, including a fork in August 2017 relating to a several-year dispute over how to increase the rate of transactions that
the Bitcoin network can process. This fork resulted in the creation of the &ldquo;Bitcoin Cash&rdquo; network and a new IR Virtual Currency
(bitcoin cash). Bitcoin Cash is an example of an intentional fork to create a new digital asset network with differentiated features.
To the extent such digital assets compete with Bitcoin, such competition could impact demand for Bitcoin and could adversely impact
the value of the Shares.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;text-indent: 0.5in"><B><I>A fork may also
occur as a result of an unintentional or unanticipated software flaw in the various versions of otherwise compatible software that
users run. Such a fork could lead to users and miners abandoning the digital asset with the flawed software. It is possible, however,
that a substantial number of users and miners could adopt an incompatible version of the digital asset while resisting community-led
efforts to merge the two chains. This could result in a permanent fork, as in the case of Ether and Ether Classic.</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-indent: 0.5in">The Trust has adopted procedures to address
situations involving a fork that result in the creation of IR Virtual Currencies that the Trust has a right to claim. Typically, the holder
of bitcoin has no discretion in a hard fork; it merely has the right to claim the IR Virtual Currency on a pro rata basis while it continues
to hold the same number of bitcoin. The Trust Agreement stipulates that, if such a transaction does occur, (i) the Sponsor will
promptly make a good faith determination as to which digital asset network is regarded by the community as the Bitcoin network
and which is the &ldquo;forked&rdquo; network, (ii) the Trust will as soon as is reasonably practical distribute the new IR Virtual Currency
in-kind to the Sponsor, as agent for the Shareholders, and (iii) the Sponsor will sell the new IR Virtual Currency and distribute the proceeds
to the Shareholders. Notwithstanding the foregoing, the Trust is under no obligation to claim the IR Virtual Currency if doing so will expose
the Trust&rsquo;s bitcoin holdings to risk, if it is not feasible to claim such IR Virtual Currency (e.g., if the Custodian does not support
the IR Virtual Currency), or if the cost of claiming such IR Virtual Currency exceeds the expected benefit to the Trust.</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: 0.5in"><B><I>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.</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-indent: 0.5in">In the event of a hard fork of the Bitcoin
network, the Sponsor will, if permitted by the terms of the Trust Agreement, use its discretion to determine which network should
be considered the appropriate network for the Trust&rsquo;s purposes, and in doing so may adversely affect the value of the Shares.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In the event of a hard fork of the Bitcoin
network, the Sponsor will, if permitted by the terms of the Trust Agreement, use its discretion to determine, in good faith, which
digital asset network, among a group of incompatible forks of the Bitcoin network, is generally accepted as the Bitcoin network
and should therefore be considered the appropriate network for the Trust&rsquo;s purposes. The Sponsor will base its determination
on a variety of then relevant factors, including, but not limited to, the Sponsor&rsquo;s beliefs regarding expectations of the
core developers of Bitcoin, users, services, businesses, miners and other constituencies, as well as the actual continued acceptance
of, mining power on, and community engagement with, the Bitcoin Network. There is no guarantee that the Sponsor will choose the
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, the Custodian and security vendors 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; ">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;text-indent: 0.5in"><B><I>In the event
of a hard fork of the Bitcoin network, the Custodian&rsquo;s operations may be interrupted or subject to additional security risks
that could disrupt the Trust&rsquo;s ability to process creations and redemptions of Shares or otherwise threaten the security
of the Trust&rsquo;s bitcoin holdings.</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-indent: 0.5in">In the event of a hard fork of the Bitcoin
network, the Custodian may temporarily halt the ability of customers (including the Trust) to deposit, withdraw or transfer bitcoin
on the Custodian&rsquo;s platform. Such a delay may be intended to permit the Custodian to assess the resulting versions of the
Bitcoin network, to determine how best to securely &ldquo;split&rdquo; the bitcoin from the IR Virtual Currency, and to prevent malicious
users from conducting &ldquo;replay attacks&rdquo; (i.e., broadcasting transactions on both versions of the forked networks to
put Custodian assets at risk. As a result, the Trust is likely to suspend creations and redemptions during a period in which the
Custodian&rsquo;s operations are halted.</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: 0.5in">In addition, any losses experienced by
the Custodian due to a hard fork, including due to replay attacks or technological errors in assessing the fork, may exceed the
insurance carried by the Custodian. In such a circumstance, losses to Trust property with the Custodian could have a materially
adverse impact on an investment in the Shares.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">A right to receive any such benefit of
a fork or airdrop is referred to as an &ldquo;Incidental Right&rdquo; and any digital asset acquired through an Incidental Right
as &ldquo;IR Virtual Currencies.&rdquo; There are likely to be operational, tax, securities law, regulatory, legal and practical issues that
significantly limit, or prevent entirely, Shareholders&rsquo; ability to realize a benefit, through their interests in the Trust,
from any such Incidental Rights or IR Virtual Currencies. For instance, the Custodian may not agree to provide access to the IR Virtual Currencies. In
addition, the Sponsor may determine that there is no safe or practical way to claim or custody the IR Virtual Currencies, or that trying to
do so may pose an unacceptable risk to the Trust&rsquo;s bitcoin holdings, or that the costs of taking possession and/or maintaining
ownership of the IR Virtual Currencies exceed the benefits of owning the IR Virtual Currencies. Additionally, laws, regulation or other factors may prevent
Shareholders from benefitting from the Incidental Right or IR Virtual Currencies, even if there is a safe and practical way to custody and
secure the IR Virtual Currencies. For example, it may be illegal to sell or otherwise dispose of the Incidental Right or IR Virtual Currencies, or there
may not be a suitable market into which the Incidental Right or IR Virtual Currencies can be sold (immediately after the fork or airdrop, or
ever). The Sponsor may also determine, in consultation with its legal advisors, that the Incidental Right or IR Virtual Currencies is, or is
likely to be deemed, a security under federal or state securities laws. In such a case, the Sponsor would irrevocably abandon such
Incidental Right or IR Virtual Currencies if the Sponsor determines that holding it would have an adverse effect on the Trust and it would
not be practicable to avoid such effect by disposing of the Incidental Right or IR Virtual Currencies in a manner that would result in Shareholders
receiving more than insignificant value thereof. In making such a determination, the Sponsor expects to take into account a number
of factors, including the definition of a &ldquo;security&rdquo; under Section 2(a)(1) of the Securities Act of 1933 (the &ldquo;Securities
Act&rdquo;) and Section 3(a)(10) of the Securities Exchange Act of 1934 (the &ldquo;Exchange Act&rdquo;), <I>SEC v. W.J. Howey
Co.</I>, 328 U.S. 293 (1946) and the case law interpreting it, as well as reports, orders, press releases, public statements and
speeches by the SEC providing guidance on when a digital asset is a &ldquo;security&rdquo; for purposes of the federal securities
laws.</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: 0.5in">When the Sponsor or the Trust becomes
aware of the existence of any Incidental Rights, the Sponsor will declare a record date, indicating the date that such
Incidental Right was initiated and seeking to record the assets and Shareholders of the Trust at such record date. The
Sponsor shall then cooperate with the Custodian and the Sponsor&rsquo;s legal and technical advisers to assess the following
characteristics of the Incidental Right: (i) whether the Incidental Right resulted from a hard fork or an airdrop; (ii) if
the Incidental Right relates to a hard fork, whether the old or new network represents the Bitcoin network; (iii) if the IR
Virtual Currency will be supported by the Custodian; (iv) whether claiming the IR Virtual Currency will present a risk to the
Trust and its assets; and (v) whether the cost of claiming the IR Virtual Currency is likely to exceed the value of the
proceeds of such IR Virtual Currency. If the Sponsor determines, in its reasonable, good faith determination, that the IR
Virtual Currency may and should be claimed by the Trust, it shall cooperate with the Custodian to segregate and transfer the
rights to the IR Virtual Currency to the Sponsor, as agent of the Trust, until such time that the Custodian may initiate an
&ldquo;on blockchain&rdquo; transaction to transfer such IR Virtual Currency to the custody of the Sponsor. Upon receipt of
the IR Virtual Currency, the Sponsor shall take commercially reasonable efforts to promptly sell such IR Virtual Currency at
market prices and distribute the proceeds of any such sale to the Shareholders of record on the record date for such
Incidental Rights.</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>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Sponsor intends to evaluate each fork
or airdrop on a case-by-case basis in consultation with the Trust&rsquo;s legal advisors, tax consultants and the Custodian. Any
inability to recognize the economic benefit of a hard fork or airdrop could adversely affect the value of the Shares. Even where
the Trust has claimed IR Virtual Currencies, there is no guarantee that the Sponsor will be able to realize material value relating to such
IR Virtual Currencies, and the Sponsor shall not time the sales of such IR Virtual Currencies to maximize potential revenue therefrom. Any Incidental Rights
may result in a tax liability to the Trust and its Shareholders, if not successfully disclaimed by the Trust. Incidental Rights
may result in an adverse interpretation regarding the Trust&rsquo;s ability to receive grantor trust treatment under the Code.</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: 0.5in"><B><I>If a malicious
actor or botnet obtains control of more than 50% of the processing power on the Bitcoin network, or otherwise obtains control over
the Bitcoin network through its influence over core developers or otherwise, such actor or botnet could manipulate how data is
recorded the Blockchain to adversely affect the value of the Shares or the ability of the Trust to operate.</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-indent: 0.5in">If a malicious actor or botnet (a volunteer
or hacked collection of computers controlled by networked software coordinating the actions of the computers) obtains a majority
of the processing power dedicated to mining on the Bitcoin network, it may be able to alter the Blockchain on which transactions
in Bitcoin rely by constructing fraudulent blocks or preventing certain transactions from completing in a timely manner, or at
all. The malicious actor or botnet could also control, exclude or modify the ordering of transactions. Although the malicious actor
or botnet would not be able to generate new bitcoin or transactions using such control, it could &ldquo;double-spend&rdquo; its
own tokens (i.e., spend the same tokens in more than one transaction) and prevent the confirmation of other users&rsquo; transactions
for so long as it maintained control. To the extent that such malicious actor or botnet did not yield its control of the processing
power on the Bitcoin network or the Bitcoin community did not reject the fraudulent blocks as malicious, reversing any changes
made to the Blockchain may not be possible. Further, a malicious actor or botnet could create a flood of transactions in order
to slow down the Bitcoin network or cause an increase in the transaction fees paid by users to confirm transactions.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">A malicious actor may also obtain control
over the Bitcoin Network through its influence over core developers by gaining direct control over a core developer or an otherwise
influential programmer. To the extent that the Bitcoin ecosystem does not grow, the possibility that a malicious actor may be able
to obtain control of the processing power or development control on the Bitcoin Network in this manner will remain heightened.</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>Risks Associated with Bitcoin Trading
Markets</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-indent: 0.5in"><B><I>The Trust is
subject to risks due to its concentration in a single asset: bitcoin. Any losses suffered as a result of a decrease in the value
of bitcoin or disruption of the bitcoin trading markets, generally, can be expected to reduce the value of the Shares and will
not be offset by other gains if the Trust were to invest in other assets.</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-indent: 0.5in">Unlike certain funds that may invest in
diversified assets, the Trust&rsquo;s investment strategy is concentrated in a single asset: bitcoin. This concentration maximizes
the degree of the Trust&rsquo;s exposure to a variety of market risks associated with bitcoin and the bitcoin trading market. By
concentrating its investment strategy solely in bitcoin, any losses suffered as a result of a decrease in the value of individual
bitcoin or disruption of the bitcoin trading markets, generally, can be expected to reduce the value of the Shares 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; ">&nbsp;</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;text-indent: 0.5in"><B><I>The value of
the Shares relates directly to the value of the bitcoin held by the Trust and fluctuations in the price of bitcoin could materially
and adversely affect an investment in the Shares.</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-indent: 0.5in">The investment objective of the Trust to
provide exposure to the value of the Trust&rsquo;s bitcoin holdings, less the Trust&rsquo;s liabilities (including estimated accrued
expenses). The price of bitcoin has fluctuated widely and may continue to experience significant price fluctuations.</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: 0.5in">Several factors may affect the price of
bitcoin, including:</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="">Global bitcoin supply, which is estimated at [18.59] million as of [January 10], 2021;</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="">Global bitcoin demand, which is influenced by such factors as purchases made by speculative investors,
acceptance of bitcoin by online merchants as a payment mechanism, purchases of bitcoin made by individuals for transactional purposes,
and expectations regarding the future value of bitcoin and the ability to easily buy, sell and use bitcoin without regulatory interference;</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="">Global or regional political, economic or financial events and situations;</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="">Investors&rsquo; expectations with respect to interest rates, the rates of inflation of fiat currencies
or bitcoin, and digital asset and currency exchange rates;</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="">The liquidity, solvency, security and withdrawal policies of digital asset trading platforms;</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="">Manipulative trading activity on digital asset trading platforms, which, in many cases, are unregulated;</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="">Investment and trading activities of hedge funds and other large bitcoin investors;</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="">A &ldquo;short squeeze&rdquo; resulting from speculation on the price of bitcoin, if aggregate
short exposure exceeds the number of Shares available for purchase;</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="">An active derivatives market for bitcoin or for digital assets generally;</TD></TR></TABLE>

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

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

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="">Monetary policies of governments, trade restrictions, currency devaluations and revaluations, and
any restrictions on the use of bitcoin as a form of payment or the ability to purchase and sell bitcoin in trading markets;</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="">Regulatory measures, if any, that restrict the ability to buy, sell or hold bitcoin or use bitcoin
as a form of payment;</TD></TR></TABLE>

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

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

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="">Transaction costs relating to the acquisition and transfer of bitcoin; and</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="">Global or regional political, economic or financial events and situations.</TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">If bitcoin markets continue to be subject
to sharp fluctuations, you may experience losses if you need to sell your Shares at a time when the price of bitcoin is lower than
it was when you made your prior investment. Even if you are able to hold Shares for the long-term, your Shares may never generate
a profit, since bitcoin markets have historically experienced extended periods of flat or declining prices, in addition to sharp
fluctuations.</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: 0.5in">In addition, investors should be aware
that there is no assurance that bitcoin will maintain its long-term value in terms of future purchasing power. In the event that
the price of bitcoin declines, the Sponsor expects the value of an investment in the Shares to decline.</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: 0.5in"><B><I>The platforms
on which users trade bitcoin are relatively new and, in some cases, largely 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.</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-indent: 0.5in">Over the past several years, a number of
bitcoin trading platforms have been closed or faced issues due to fraud, failure, security breaches or governmental regulations.
Particularly for operators outside of the U.S., bitcoin trading platforms are not regulated in ways similar to national securities
exchanges and other highly-regulated trading environments. As a result, capital requirements, clearing infrastructure and technical
and operational security requirements may vary. The nature of the assets held at bitcoin trading platforms makes them appealing
targets for hackers and a number of bitcoin trading platforms have been victims of cybercrimes. In many of these instances, the
customers of such bitcoin trading platforms were not compensated or made whole for the partial or complete losses of their account
balances in such trading platforms. No bitcoin trading platform is immune from these risks.</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: 0.5in"> While the Trust itself does not buy
or sell bitcoin on bitcoin trading platforms, certainty in bitcoin trading markets may impact the Trust&rsquo;s operation and
the value of the Shares. Negative perception, a lack of stability in the bitcoin trading markets and the closure or temporary
shutdown of digital asset trading platforms due to fraud, business failure, hackers or malware, or government-mandated regulation
may reduce confidence in the Bitcoin network and result in greater volatility in the prices of bitcoin. Furthermore, the closure
or temporary shutdown of a bitcoin trading platform used in calculating the CF Bitcoin US Settlement Price (the &ldquo;Index&rdquo;)
may result in a loss of confidence in the Trust&rsquo;s ability to determine its net asset value (&ldquo;NAV&rdquo;) on a daily
basis. These potential consequences of such a bitcoin trading platform&rsquo;s failure could adversely affect the value of the
Shares. Further, the failure of the bitcoin market, major bitcoin trading platforms or any other major component of the overall
bitcoin ecosystem can have a direct adverse effect on the liquidity and price of bitcoin and could therefore have a negative impact
on the performance of the Trust. </P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;text-indent: 0.5in"><B><I>The value of
bitcoin may be subject to momentum pricing whereby the current bitcoin price may account for speculation regarding future appreciation
in value. Momentum pricing may result in greater volatility and adversely affect an investment in the Shares.</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-indent: 0.5in">Momentum pricing typically is associated with growth
stocks and other assets whose valuation, as determined by the investing public, accounts for anticipated future appreciation in
value. The Sponsor believes that momentum pricing of bitcoin has resulted, and may continue to result, in speculation regarding
future appreciation in the value of bitcoin, inflating and making more volatile the price of bitcoin. As a result, bitcoin may
be more likely to fluctuate in value due to changing investor confidence in future appreciation (or depreciation) in the price
of bitcoin, which could adversely affect an investment in the Shares.</P>

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

<P STYLE="font: small-caps 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 84.95pt; text-indent: -84.95pt"><FONT STYLE="font-variant: normal"><B>Risk
Factors Related to the Bitcoin Exchange Market and the Index </B></FONT></P>

<P STYLE="font: small-caps 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 84.95pt; text-indent: -84.95pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B><I>The value of the Shares relates directly to
the value of the bitcoins held by the Trust and fluctuations in the price of bitcoins could materially and adversely affect an
investment in the Shares. </I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Shares are designed to mirror as closely
as possible the performance of the price of bitcoins, as measured by the Index, and the value of the Shares relates directly to
the value of the bitcoins held by the Trust, less the Trust&rsquo;s liabilities (including estimated accrued but unpaid fees and
expenses). The Index is derived from the transaction prices on electronic market places where exchange participants may first use
fiat currency to trade, buy and sell bitcoins based on bid-ask trading (a &ldquo;Bitcoin Exchange&rdquo;). The Index uses U.S.
Dollar-denominated trading data from the Bitcoin Exchanges to determine the Bitcoin Index Price. Whether a Bitcoin Exchange is
considered eligible to be included in the Index&rsquo;s calculation depends on considerations such as depth of liquidity, compliance
with applicable legal and regulatory requirements, data availability, U.S. domicile and acceptance of U.S. Dollar deposits. The
price of bitcoins has fluctuated widely over the past several years and may continue to experience significant price fluctuations.
Several factors may affect the Bitcoin Index Price, including, but not limited to:</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD>Total bitcoins in existence (estimated at approximately 18.587 million as of January 1, 2021);</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">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD>Global bitcoin demand, which is influenced by the growth of retail merchants&rsquo; and commercial businesses&rsquo; acceptance
of bitcoins as payment for goods and services, the security of online Bitcoin Exchanges and digital wallets that hold bitcoins,
the perception that the use and holding of bitcoins is safe and secure, the lack of regulatory restrictions on their use and the
reputation of bitcoins for illicit 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" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD>Global bitcoin supply, which is influenced by similar factors as global bitcoin demand, in addition to fiat currency needs
by miners (for example, to invest in equipment or pay electricity bills) and taxpayers who may liquidate bitcoin holdings around
tax deadlines to meet tax obligations;</TD></TR></TABLE>

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

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

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

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

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

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

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

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

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD>Fiat currency withdrawal and deposit policies of Bitcoin Exchanges and liquidity of such Bitcoin Exchanges;</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD>Interruptions in service from or failures of major Bitcoin Exchanges;</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD>Cyber theft of bitcoins from online bitcoin wallet providers, or news of such theft from such providers, or from individuals&rsquo;
bitcoin wallets;</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">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD>Investment and trading activities of large investors, including private and registered funds, that may directly or indirectly
invest in bitcoins;</TD></TR></TABLE>

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

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

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD>Regulatory measures, if any, that restrict the use of bitcoins as a form of payment or the purchase of bitcoins on the Bitcoin
Market;</TD></TR></TABLE>

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

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

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

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

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

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

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD>Global or regional political, economic or financial events and situations;</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">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD>Expectations among Bitcoin economy participants that the value of bitcoins will soon change; and</TD></TR></TABLE>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">If bitcoin markets continue to be subject
to sharp fluctuations, you may experience losses if you need to sell your Shares at a time when the price of bitcoins is lower
than it was when you made your prior investment. Even if you are able to hold Shares for the long-term, your Shares may never generate
a profit, since bitcoin markets have historically experienced extended periods of flat or declining prices, in addition to sharp
fluctuations.</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: 0.5in">In addition, investors should be aware that
there is no assurance that bitcoins will maintain their long-term value in terms of future purchasing power or that the acceptance
of bitcoin payments by mainstream retail merchants and commercial businesses will continue to grow. In the event that the price
of bitcoins declines, the Sponsor expects the value of an investment in the Shares to decline proportionately.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B><I>Due to the unregulated nature and lack of transparency
surrounding the operations of Bitcoin Exchanges, the marketplace may lose confidence in Bitcoin Exchanges, upon which the Trust
is dependent. </I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: .5in">Bitcoin Exchanges are relatively new and,
in some cases, unregulated. Furthermore, while many prominent Bitcoin Exchanges provide the public with significant information
regarding their ownership structure, management teams, corporate practices and regulatory compliance, many Bitcoin Exchanges do
not provide this information. As a result, the marketplace may lose confidence in Bitcoin 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: .5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: .5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: .5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: .5in">For example, in 2019 there were reports
claiming that 80-95% of Bitcoin trading volume on Bitcoin Exchanges was false or non-economic in nature, with specific focus on
unregulated exchanges located outside of the U.S. Such reports may indicate that the Bitcoin Exchange Market is significantly smaller
than expected and that the U.S. makes up a significantly larger percentage of the Bitcoin Exchange Market than is commonly understood.
Nonetheless, any actual or perceived false trading in the Bitcoin 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.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: .5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: .5in">In addition, over the past several years,
some Bitcoin Exchanges have been closed due to fraud and manipulative activity, business failure or security breaches. In many
of these instances, the customers of such Bitcoin Exchanges were not compensated or made whole for the partial or complete losses
of their account balances in such Bitcoin Exchanges. While smaller Bitcoin Exchanges are less likely to have the infrastructure
and capitalization that make larger Bitcoin Exchanges more stable, larger Bitcoin 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 Bitcoin Exchanges
could be subject to abrupt failure with consequences for both users of Bitcoin Exchanges and the Bitcoin industry as a whole. In
particular, in the two weeks that followed the February&nbsp;7, 2014 halt of Bitcoin withdrawals from Mt. Gox, the value of one
Bitcoin fell on other exchanges from around $795 on February&nbsp;6, 2014 to $578 on February&nbsp;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&nbsp;million were stolen from Bitfinex, a large Bitcoin
Exchange. The value of Bitcoin immediately decreased over 10% following reports of the theft at Bitfinex and the Shares suffered
a corresponding decrease in value. In July 2017, FinCEN assessed a $110&nbsp;million fine against BTC-E, a now defunct Bitcoin
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&nbsp;million, and in February 2018, the Italian digital asset exchange, Bitgrail, was hacked, resulting in approximately $170&nbsp;million
in losses. Most recently in May 2019, one of the world&rsquo;s largest Bitcoin Exchanges, Binance, was hacked, resulting in losses
of approximately $40&nbsp;million.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: .5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: .5in">Negative perception, a lack of stability
in the Bitcoin Markets and the closure or temporary shutdown of Bitcoin Exchanges due to fraud, business failure, hackers or malware,
or government-mandated regulation may reduce confidence in the Bitcoin Network and result in greater volatility in the prices of
Bitcoin. Furthermore, the closure or temporary shutdown of a Bitcoin Exchange used in calculating the Bitcoin Index Price may result
in a loss of confidence in the Trust&rsquo;s ability to determine its Bitcoin Holdings on a daily basis. These potential consequences
of such a Bitcoin Exchange&rsquo;s failure could adversely affect the value of the Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: .5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B><I>Since there is no limit on the number of bitcoins
that the Trust may acquire, the Trust itself, as it grows, may have an impact on the supply and demand of bitcoins that ultimately
may affect the price of the Shares in a manner unrelated to other factors affecting the global market for bitcoins. </I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Trust Agreement places no limit on the
number of bitcoins the Trust may hold. Moreover, the Trust may issue an unlimited number of Shares, subject to registration requirements,
and therefore acquire an unlimited number of bitcoins in existence at any point in time. The global market for bitcoins is characterized
by supply and demand constraints that generally are not present in the markets for commodities or other assets such as gold and
silver. The Bitcoin Network&rsquo;s mathematical protocols under which bitcoins are created or &ldquo;mined&rdquo; permit the creation
of a limited, predetermined number of bitcoins not to exceed 21&nbsp;million. Furthermore, the rate of creation or issuance of
bitcoins cannot be increased ahead of the protocol&rsquo;s schedule. As of April&nbsp;28, 2017, approximately 16.30 million bitcoins
had been created.</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: 0.5in">If the number of bitcoins acquired by the
Trust is large enough relative to global bitcoin supply and demand, further creations and redemptions of Shares could have an impact
on the supply of and demand for bitcoins in a manner unrelated to other factors affecting the global market for bitcoins. Such
an impact could affect the Bitcoin Index Price, which would directly affect the price at which Shares are traded on NYSE Arca or
the price of future Baskets created or redeemed by 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: 0.5in"></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: 0.5in"></P>

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<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: 0.5in"><B><I>The Shares may trade at a discount or premium
in the trading price relative to the Trust&rsquo;s Bitcoin Holdings per Share as a result of non-concurrent trading hours between
NYSE Arca and the Bitcoin Exchange Market. </I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The value of a Share may be influenced by
non-concurrent trading hours between NYSE Arca and various Bitcoin Exchanges, including those that represent components of the
Index. While NYSE Arca is open for trading in the Shares for a limited period each day, the Bitcoin Exchange Market is a 24-hour
marketplace; however, trading volume and liquidity on the Bitcoin Exchange Market is not consistent throughout the day and Bitcoin
Exchanges, including the larger-volume markets, have been known to shut down temporarily or permanently due to security concerns,
directed denial of service attacks and DDoS Attacks and other reasons. As a result, during periods when NYSE Arca is open but large
Bitcoin Exchanges (or a substantial number of smaller Bitcoin Exchanges) are either lightly traded or are closed, trading spreads
and the resulting premium or discount on the Shares may widen and, therefore, increase the difference between the price of the
Shares and the Trust&rsquo;s Bitcoin Holdings per Share. Premiums or discounts may have an adverse effect on an investment in the
Shares if a Shareholder sells or acquires its Shares during a period of discount or premium, respectively.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B><I>If bitcoin prices on the Exchange Market move
negatively during hours when NYSE Arca is closed, trading prices on NYSE Arca may &ldquo;gap&rdquo; down at market open. </I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The value of a Share may be influenced by
non-concurrent trading hours between NYSE Arca and various Bitcoin Exchanges, including those that represent components of the
Index. While NYSE Arca is open for trading in the Shares for a limited period each day, the Bitcoin Exchange Market is a 24-hour
marketplace. During periods when NYSE Arca is closed but Bitcoin Exchanges are open, significant changes in the price of bitcoin
on the Exchange Market could result in a difference in performance between the value of bitcoins as measured by the Index and the
most recent Bitcoin Holdings per Share or closing trading price. To the extent that the price of bitcoin on the Exchange Market,
and the value of bitcoins as measured by the Index, moves significantly in a negative direction after the close of NYSE Arca, the
trading price of the Shares may &ldquo;gap&rdquo; down to the full extent of such negative price shift when NYSE Arca reopens.
To the extent that the price of bitcoin on the Exchange Market drops significantly during hours NYSE Arca is closed, investors
may not be able to sell their Shares until after the &ldquo;gap&rdquo; down has been fully realized, resulting in an inability
to mitigate losses in a rapidly negative market.</P>

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

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Purchasing activity associated with acquiring
bitcoins required for deposit with the Trust in connection with the creation of Baskets may increase the market price of bitcoins
on the Bitcoin Exchange Market, which will result in higher prices for the Shares. Increases in the market price of bitcoins may
also occur as a result of the purchasing activity of other market participants. Other market participants may attempt to benefit
from an increase in the market price of bitcoins that may result from increased purchasing activity of bitcoins connected with
the issuance of Baskets. Consequently, the market price of bitcoins may decline immediately after Baskets are created.</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: 0.5in">Selling activity associated with sales of
bitcoins withdrawn from the Trust in connection with the redemption of Baskets may decrease the market price of bitcoins on the
Bitcoin Exchange Market, which will result in lower prices for the Shares. Decreases in the market price of bitcoins may also occur
as a result of the selling activity of other market participants. If the Bitcoin Index Price 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-indent: 0.5in">&nbsp;</P>

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

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<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: 0.5in"><B><I>An investment in the Shares may be adversely
affected by competition from other methods of investing in bitcoins. </I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Trust competes with direct investments
in bitcoins and other potential financial vehicles, possibly including securities backed by or linked to bitcoins and digital currency
financial vehicles similar to the Trust. Market and financial conditions, and other conditions beyond the Sponsor&rsquo;s control,
may make it more attractive to invest in other financial vehicles or to invest in bitcoins directly, which could limit the market
for the Shares and reduce the liquidity 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-indent: 0.5in"><B><I>The Bitcoin Index Price may be affected by the
sale of other digital currency financial vehicles that invest in and track the price of bitcoins. </I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">To the extent digital currency financial
vehicles other than the Trust tracking the price of bitcoins are formed and represent a significant proportion of the demand for
bitcoins, large redemptions of the securities of these digital currency financial vehicles, or private funds holding bitcoins,
could negatively affect the Bitcoin Index Price, the Trust&rsquo;s Bitcoin Holdings and the price 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-indent: 0.5in"><B><I>The impact of geopolitical or economic events
on the supply and demand for bitcoins is uncertain, but could motivate large-scale sales of bitcoins, which could result in a reduction
in the Bitcoin Index Price and adversely affect an investment in the Shares. </I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">As an alternative to fiat currencies that
are backed by central governments, digital assets such as bitcoins, which are relatively new, are subject to supply and demand
forces based upon the desirability of an alternative, decentralized means of buying and selling goods and services, and it is unclear
how such supply and demand will be impacted by geopolitical events. Nevertheless, political or economic crises may motivate large-scale
acquisitions or sales of bitcoins either globally or locally. Large-scale sales of bitcoins would result in a reduction in the
Bitcoin Index Price and could adversely affect 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-indent: 0.5in"><B><I>Demand for bitcoins is driven, in part, by its
status as the most prominent and secure digital asset. It is possible that a digital asset other than bitcoins could have features
that make it more desirable to a material portion of the digital asset user base, resulting in a reduction in demand for bitcoins,
which could have a negative impact on the price of bitcoins and adversely affect an investment in the Shares. </I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Bitcoin was the first digital asset to gain
global adoption and critical mass, and as a result, it has a &ldquo;first to market&rdquo; advantage over other digital assets.
As of December&nbsp;31, 2019, Bitcoin was the largest digital asset by market capitalization and had the largest user base and
largest combined mining power. Despite this first to market advantage, as of December&nbsp;31, 2019, there were over 5,000 alternative
digital assets tracked by CoinMarketCap.com, having a total market-capitalization of approximately $190.9&nbsp;billion (including
the approximately $130.4&nbsp;billion market cap of Bitcoin), as calculated using market prices and total available supply of each
digital asset. In addition, many consortiums and financial institutions are also researching and investing resources into private
or permissioned blockchain platforms rather than open platforms like the Bitcoin Network. Competition from the emergence or growth
of alternative digital assets could have a negative impact on the demand for, and price of, Bitcoin and thereby adversely affect
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-indent: 0.5in">Investors may invest in Bitcoin through
means other than the Shares, including through direct investments in Bitcoin and other potential financial vehicles, possibly including
securities backed by or linked to Bitcoin and digital asset financial vehicles similar to the Trust. Market and financial conditions,
and other conditions beyond the Sponsor&rsquo;s control, may make it more attractive to invest in other financial vehicles or to
invest in Bitcoin directly, which could limit the market for, and reduce the liquidity of, the Shares. In addition, to the extent
digital asset financial vehicles other than the Trust tracking the price of Bitcoin are formed and represent a significant proportion
of the demand for Bitcoin, large purchases or redemptions of the securities of these digital asset financial vehicles, or private
funds holding Bitcoin, could negatively affect the Bitcoin Index Price, the Bitcoin Holdings, the price of the Shares, the NAV
and 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 0pt 0.5in"><B><I></I></B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><B><I></I></B></P>

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

<P STYLE="font: small-caps 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 84.95pt; text-indent: -84.95pt"><FONT STYLE="font-variant: normal"><B>Risk
Factors Related to the Trust and the Shares </B></FONT></P>

<P STYLE="font: small-caps 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 84.95pt; text-indent: -84.95pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B><I>As the Sponsor and its management have no meaningful
history of operating an investment vehicle 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 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Sponsor was formed to be the Sponsor
of the Trust and has no meaningful history of past performance in managing investment vehicles like the Trust. The past performances
of the Sponsor&rsquo;s management in other investment vehicles, including their experiences in the Bitcoin and venture capital
industries, 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-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B><I>The value of the Shares could decrease if unanticipated
operational or trading problems arise. </I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The mechanisms and procedures governing
the creation, redemption and offering of the Shares and storage of the bitcoins have been developed specifically for this product.
There may be unanticipated problems or issues with respect to the mechanics of the Trust&rsquo;s operations and the trading of
the Shares that could have an adverse effect on an investment in the Shares. In addition, although the Trust is not actively &ldquo;managed&rdquo;
by traditional methods, to the extent that unanticipated operational or trading problems or issues arise, the Sponsor&rsquo;s past
experience and qualifications may not be suitable for solving these problems or issues.</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: 0.5in"><B><I>The Shares may trade at a price which is at,
above or below the Trust&rsquo;s Bitcoin Holdings per Share and any discount or premium in the trading price relative to the Trust&rsquo;s
Bitcoin Holdings per Share may widen as a result of non-concurrent trading hours. </I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Shares may trade on NYSE Arca at, above
or below the Trust&rsquo;s Bitcoin Holdings per Share. The Trust&rsquo;s Bitcoin Holdings per Share will fluctuate with changes
in the market value of the Trust&rsquo;s assets. The trading price of the Shares will fluctuate in accordance with changes in the
Trust&rsquo;s Bitcoin Holdings per Share as well as market supply and demand. The price difference may be due, in large part, to
the fact that supply and demand forces at work in the public trading market for Shares are closely related, but not identical,
to the same forces influencing the Bitcoin Index Price. Consequently, an Authorized Participant may be able to create or redeem
a Basket of Shares at a discount or a premium to the public trading price 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-indent: 0.5in">Authorized Participants, or their clients
or customers, may have an opportunity to realize a riskless profit if they can create a Basket at a discount to the public trading
price of the Shares or can redeem a Basket at a premium over the public trading price of the Shares. The Sponsor expects that the
exploitation of such arbitrage opportunities by Authorized Participants and their clients and customers will tend to cause the
public trading price to track the Bitcoin Holdings per Share closely over time. Such arbitrage opportunities will not be available
to Shareholders who are not Authorized Participants.</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: 0.5in"><B><I>If Authorized Participants are able to purchase
or sell large aggregations of bitcoins in the open market at prices that are different than the Bitcoin Index Price, the arbitrage
mechanism intended to keep the price of the Shares closely linked to the Bitcoin Index Price may not function properly and the
Shares may trade at a discount or premium to the Bitcoin Holdings per Share. </I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The arbitrage mechanism on which the Trust
relies to keep the price of the Shares closely linked to the Bitcoin Index Price may not function properly if Authorized Participants
are able to purchase or sell large aggregations of bitcoins in the open market at prices that are materially higher or lower than
the Bitcoin Index Price. Authorized Participants may purchase or sell bitcoins on public or private markets not included among
the Bitcoin Exchanges included in the Index, and such transactions may take place at prices materially higher or lower than the
Bitcoin Index Price. Furthermore, while the Index provides a U.S.&nbsp;Dollar-denominated composite reference rate for the price
of bitcoin based on the volume-weighted price of a bitcoin on certain constituent Bitcoin Exchanges at any given time, the prices
on each individual Bitcoin Exchange are not necessarily equal to the value of a bitcoin as represented by the Index.</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: 0.5in">Although the average price variance between
the Bitcoin Index Price and the price of bitcoins on the Bitcoin Exchanges, both individually and as a group, has historically
been immaterial, the price of bitcoins on an individual Bitcoin Exchange has historically, and could in the future, be materially
higher or lower than the Bitcoin Index Price. Under either such circumstance, the arbitrage mechanism will function to link the
price of the Shares to the prices at which Authorized Participants are able to purchase or sell large aggregations of bitcoins.
To the extent such prices differ materially from the Bitcoin Index Price, the price of the Shares may no longer track, whether
temporarily or over time, the Bitcoin Index Price, 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 and the Bitcoin Index 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-indent: 0.5in"></P>

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<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: 0.5in"><B><I>If the processes of creation and redemption
of Baskets encounter any unanticipated difficulties, the opportunities for arbitrage transactions intended to keep the price of
the Shares closely linked to the Bitcoin Index Price may not exist and, as a result, the price of the Shares may fall. </I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">If the creation and redemption of the Shares
(which depend on timely transfers of bitcoins to and from the custody accounts maintained by the Custodian) 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 Baskets to take advantage of any arbitrage opportunity arising from discrepancies between the price of the
Shares and the price of the underlying bitcoins may not 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 Bitcoin Index Price 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-indent: 0.5in"><B><I>The postponement, suspension or rejection of
creation or redemption orders may adversely affect an investment in the Shares. </I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Under the Trust Agreement, the Sponsor may
suspend or reject creation or redemption orders, as applicable, for a variety of permitted reasons under certain circumstances.
To the extent such orders are suspended or rejected, the arbitrage mechanism resulting from the process through which Authorized
Participants create and redeem Shares directly with the Trust may fail to closely link the price of the Shares to the value of
the underlying bitcoins, as measured using the Bitcoin Index Price. If this is the case, the liquidity of the Shares may decline
and the price of the Shares may fluctuate independently of the Bitcoin Index Price 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-indent: 0.5in">Furthermore, the placement of in-cash creation
and redemption orders require additional administrative steps as compared to in-kind creation and redemption orders, which could
hinder arbitrage opportunities for in-cash creation and redemption orders. The Sponsor, Administrator or Marketing Agent&rsquo;s
failure to quickly execute such administrative steps could cause a delay in the execution of an Authorized Participant&rsquo;s
order, which could hinder an Authorized Participant&rsquo;s ability to arbitrage the difference between the Bitcoin Index Price
and the price of the Shares, thereby impacting an Authorized Participant&rsquo;s ability to keep the price of the Shares closely
linked to the Bitcoin Index Price. See &ldquo;Description of Creation and Redemption of Shares.&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-indent: 0.5in"><B><I>The Trust could experience unforeseen difficulties
in operating and maintaining key elements of its technical infrastructure. </I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Bitcoin Account has been designed specifically
to provide security for the Trust&rsquo;s assets, and may be expanded, updated and altered from time to time. Any effort to expand,
update or alter the security system is likely to be complex, and unanticipated delays in the completion of these projects may lead
to unanticipated project costs, operational inefficiencies or vulnerabilities to security breaches. In addition, there may be problems
with the design or implementation of the Bitcoin Account or with an expansion or upgrade thereto that are not evident during the
testing phases of design and implementation, and that may only become apparent after the Trust has utilized the infrastructure.
Any issues relating to the performance and effectiveness of the security procedures used by the Trust and the Custodian to protect
the Bitcoin Account, such as algorithms, codes, passwords, multiple signature systems, encryption and telephone call-backs (together,
the &ldquo;Security Procedures&rdquo;), may have an adverse impact on 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-indent: 0.5in">The Security Procedures implemented by the
Custodian are technical and complex, and the Trust depends on the Security Procedures to protect the storage, acceptance and distribution
of data relating to bitcoins and the digital wallets into which the Trust deposits its bitcoins. The Security Procedures may not
protect against all errors, software flaws (i.e., bugs) or vulnerabilities. Defects in the Security Procedures may only be discovered
after a failure in the Custodian&rsquo;s safekeeping and storage of the Trust&rsquo;s bitcoins.</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: 0.5in">It is not uncommon for businesses in the
bitcoin space to experience large losses due to fraud and breaches of their security systems. For example, in September 2015, the
global bitcoin payment agent, BitPay, lost approximately $1.8 million of bitcoins due to a hacker&rsquo;s fraudulent impersonation
of BitPay&rsquo;s CFO, whereby the hacker was able to access the CFO&rsquo;s email account and successfully request BitPay&rsquo;s
custodian to transfer funds.</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: 0.5in"></P>

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<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: 0.5in">Furthermore, the Trust&rsquo;s private keys
required to transfer the Trust&rsquo;s bitcoins are stored in vaults located across the world, including but not limited to the
United States, Europe, including Switzerland, and South America, which could be subject to (i)&nbsp;hostile regulatory treatment
of bitcoin, (ii)&nbsp;unforeseen social, economic or political unrest and (iii)&nbsp;natural or man-made disaster. For example,
one of the Custodian&rsquo;s vaults is located in a South American country that could be considered to have an elevated risk of
hostile regulatory treatment and social, economic or political unrest, including high rates of inflation and general economic mismanagement.
If a vault were compromised, it could cause a possible delay in operations of up to 72&nbsp;hours which could have a negative impact
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-indent: 0.5in"><B><I>The Trust&rsquo;s and the Custodian&rsquo;s
ability to adopt technology in response to changing security needs or trends poses a challenge to the safekeeping of the Trust&rsquo;s
bitcoins. </I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Bitcoin Exchanges and large holders of bitcoins
must adapt to technological change in order to secure and safeguard client accounts. While the Sponsor believes the Security Procedures
in place have been reasonably designed to safeguard the Trust&rsquo;s bitcoins from theft, loss, destruction or other issues relating
to hackers and technological attack, such assessment is based upon known technology and threats. As technological change occurs,
the security threats to the Trust&rsquo;s bitcoins will likely adapt and previously unknown threats may emerge. Furthermore, the
Sponsor believes that the Trust may become a more appealing target of security threats as the size of the Trust&rsquo;s assets
grows. To the extent that the Trust or the Custodian is unable to identify and mitigate or stop new security threats, the Trust&rsquo;s
bitcoins may be subject to theft, loss, destruction or other attack, which could have a negative impact on the performance of the
Shares or result in loss of the Trust&rsquo;s 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-indent: 0.5in"><B><I>Security threats to the Bitcoin Account could
result in the halting of Trust operations, the suspension of redemptions, 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 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Security breaches, computer malware and
computer hacking attacks have been a prevalent concern in the Bitcoin Exchange Market since the launch of the Bitcoin Network.
Any security breach caused by hacking, which involves efforts to gain unauthorized access to information or systems, or to cause
intentional malfunctions or loss or corruption of data, software, hardware or other computer equipment, and the inadvertent transmission
of computer viruses, could harm the Trust&rsquo;s business operations or result in loss of the Trust&rsquo;s assets. Any breach
of the Trust&rsquo;s infrastructure could result in damage to the Trust&rsquo;s reputation and reduce demand for the Shares, resulting
in a reduction in the price of the Shares. Furthermore, the Sponsor believes that, as the Trust&rsquo;s assets grow, it may become
a more appealing target for security threats such as hackers and malware.</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: 0.5in">The Sponsor believes that the Security Procedures
that the Sponsor and Custodian utilize, such as hardware redundancy, segregation and offline data storage (i.e., the maintenance
of data on computers and/or storage media that is not directly connected to or accessible from the internet and/or networked with
other computers, also known as &ldquo;cold storage&rdquo;) protocols are reasonably designed to safeguard the Trust&rsquo;s bitcoins
from theft, loss, destruction or other issues relating to hackers and technological attack. Nevertheless, the Security Procedures
cannot guarantee the prevention of any loss due to a security breach, software defect or act of God that may be borne by the Trust,
absent gross negligence, willful misconduct or bad faith on the part of the Sponsor, the Custodian or their agents.</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: 0.5in">The Security Procedures and operational
infrastructure may be breached due to the actions of outside parties, error or malfeasance of an employee of the Sponsor or Custodian,
or otherwise, and, as a result, an unauthorized party may obtain access to the Bitcoin Account, private keys, data or bitcoins.
Additionally, outside parties may attempt to fraudulently induce employees of the Custodian or the Sponsor 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 may be unable to anticipate these techniques or implement
adequate preventative measures. If an actual or perceived breach of the Bitcoin Account occurs, the market perception of the effectiveness
of the Trust could be harmed, which could result in a reduction in the price 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-indent: 0.5in">In the event of a security breach of the
Bitcoin Account, the Trust may cease operations, suspend redemptions or suffer a reduction in assets, the occurrence of each of
which could result in a reduction in the price 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-indent: 0.5in"><B><I>A loss of confidence or breach in the Trust&rsquo;s
security and technology policies may adversely affect the Trust and the value of an investment in the Shares. </I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Trust, Sponsor, Custodian and each of
their agents will take measures to protect the Trust and its bitcoins from unauthorized access, damage or theft. However, it is
possible that the Security Procedures in place may not prevent the improper access to, or damage or theft of the Trust&rsquo;s
bitcoins. A security breach could harm the Trust&rsquo;s reputation or result in the loss of some or all of the Trust&rsquo;s bitcoins,
which represent the Trust&rsquo;s only asset. A resulting perception that the Security Procedures do not adequately protect the
Trust&rsquo;s bitcoins could result in a loss of current or potential Shareholders, reducing demand for, and price 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-indent: 0.5in"></P>

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<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: 0.5in"><B><I>Bitcoin transactions are irrevocable and stolen
or incorrectly transferred bitcoins may be irretrievable. As a result, any incorrectly executed bitcoin transactions could adversely
affect an investment in the Shares. </I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Bitcoin transactions are not reversible
without the consent and active participation of the recipient of the transaction. Once a transaction has been verified and recorded
in a block that is added to the Blockchain, an incorrect transfer of bitcoins or a theft of bitcoins generally will not be reversible
and the Trust may not be capable of seeking compensation for any such transfer or theft. Although the Trust&rsquo;s transfers of
bitcoins will regularly be made to or from the Bitcoin Account, it is possible that, through computer or human error, or through
theft or criminal action, the Trust&rsquo;s bitcoins could be transferred from the Trust Custody Account in incorrect amounts or
to unauthorized third parties, or to uncontrolled accounts.</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: 0.5in">For example, in September 2014, the Chinese
bitcoin exchange Huobi announced that it had sent approximately 900bitcoins and 8,000 litecoins (worth approximately $400,000 at
the prevailing market prices at the time) to the wrong customers, although it claimed that many customers returned the bitcoins
and litecoins. To the extent that the Trust is unable to seek a corrective transaction with such third party or is incapable of
identifying the third party which has received the Trust&rsquo;s bitcoins through error or theft, the Trust will be unable to revert
or otherwise recover incorrectly transferred Trust bitcoins. The Trust will also be unable to convert or recover Trust bitcoins
transferred to uncontrolled accounts. To the extent that the Trust is unable to seek redress for such error or theft, such loss
could adversely affect 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-indent: 0.5in"><B><I>The Trust&rsquo;s bitcoins may be subject to
loss, damage, theft or restriction on access. </I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">There is a risk that some or all of the
Trust&rsquo;s bitcoins could be lost, stolen or destroyed. The Sponsor believes that the Trust&rsquo;s bitcoins held in the Bitcoin
Account will be an appealing target to hackers or malware distributors seeking to destroy, damage or steal the Trust&rsquo;s bitcoins.
Although the Custodian uses Security Procedures with various elements such as redundancy, segregation and cold storage to minimize
the risk of loss, damage and theft, neither the Custodian nor the Sponsor can guarantee the prevention of such loss, damage or
theft, whether caused intentionally, accidentally or by an act of God. Access to the Trust&rsquo;s bitcoins could also be restricted
by natural events (such as an earthquake or flood) or human actions (such as a terrorist attack). Any of these events may adversely
affect the operations of the Trust and, consequently, an investment in the Shares.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B><I>The Shareholders&rsquo; limited rights of legal
recourse against the Trust, Trustee, Sponsor, Transfer Agent, Administrator and Custodian expose the Trust and its Shareholders
to the risk of loss of the Trust&rsquo;s bitcoins for which no person is liable. </I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Shareholders&rsquo; recourse against the
Trust, Trustee, Custodian and Sponsor under New York law governing their custody operations is limited. Similarly, the Shareholders&rsquo;
recourse against the Sponsor, the Transfer Agent and the Administrator for the services they provide to the Trust, including those
relating to the provision of instructions relating to the movement of bitcoins, is limited. Consequently, a loss may be suffered
with respect to the Trust&rsquo;s bitcoins for which no person is liable in damages. Further, there is no third-party insurance
to cover any loss that may be suffered with respect to the Trust&rsquo;s bitcoins.</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: 0.5in"><B><I>Bitcoins held by the Trust are not subject to
FDIC or SIPC protections. </I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">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, deposits held with or assets held by the Trust are not subject to the protections enjoyed
by depositors with FDIC or SIPC member institutions. The undivided interests in the Trust&rsquo;s bitcoins represented by Shares
in the Trust are not insured directly by the Trustee or 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-indent: 0.5in"><B><I>The Custodian&rsquo;s limited liability under
the Custodian Agreement may impair the ability of the Trust to recover losses relating to its bitcoins and any recovery may be
limited, even in the event of fraud, to the market value of the bitcoins at the time the fraud is discovered. </I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Under the Custodian Agreement, the Custodian&rsquo;s
liability is limited to the greater of (i)&nbsp;the market value of the Custodial Coins at the time the events giving rise to the
liability occurred and (ii)&nbsp;the fair market value of the Custodial Coins at the time that the Custodian notifies the Sponsor
or Trustee in writing, or the Sponsor or the Trustee otherwise has actual knowledge of the events giving rise to the liability.</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: 0.5in"></P>

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<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: 0.5in">In addition, the Custodian will not be liable
for any delay in performance or any non-performance of any of its custodial obligations under the Trust Agreement or any Authorized
Participant Self-Administered Agreement by reason of any cause beyond its reasonable control, including acts of God, war or terrorism.
The Custodian will also not be liable for any system failure or third-party penetration of the Bitcoin Account, unless such system
failure or third-party penetration is the result of gross negligence, bad faith or willful misconduct on the part of the Custodian.
As a result, the recourse of the Trust or the Shareholder, under New York law, is limited.</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: 0.5in"><B><I>The Trust may not have adequate sources of recovery
if its bitcoins are lost, stolen or destroyed. </I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">If the Trust&rsquo;s bitcoins are lost,
stolen or destroyed under circumstances rendering a party liable to the Trust, the responsible party may not have the financial
resources sufficient to satisfy the Trust&rsquo;s claim. For example, as to a particular event of loss, the only source of recovery
for the Trust might be limited to the Custodian or, to the extent identifiable, other responsible third parties (for example, a
thief or terrorist), any of which may not have the financial resources (including liability insurance coverage) to satisfy a valid
claim of the Trust.</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: 0.5in"><B><I>The liquidity of the Shares may be affected
if Authorized Participants or Liquidity Providers cease to perform their obligations under the Participant Agreements. </I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In the event that one or more Authorized
Participants having substantial interests in Shares or otherwise responsible for a significant portion of the Shares&rsquo; daily
trading volume on NYSE Arca terminates its Participant Agreement, the liquidity of the Shares would likely decrease, which could
adversely affect the market price of, and 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-indent: 0.5in">In addition, if one or more Liquidity Providers
refuses, or is unable, to perform its obligations under its Participant Agreements, the Trust may have difficulty maintaining the
participation of certain Authorized Participants or engaging additional Authorized Participants. Under such circumstances, the
liquidity of the Shares would likely decrease, which could adversely affect the market price of, and 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-indent: 0.5in"><B><I>There is no guarantee that an active trading
market for the Shares will continue to develop. </I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">There can be no assurance an active trading
market of the Shares will develop on NYSE Arca. The Sponsor may elect to terminate the Trust if it determines, in its sole discretion,
that the Trust is not an economically viable size, which could result in the liquidation of the Trust&rsquo;s bitcoins at a time
that is disadvantageous to 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-indent: 0.5in">To the extent that NYSE Arca halts trading
in the Shares, whether on a temporary or permanent basis, investors may not be able to buy or sell Shares, thus adversely affecting
an investment in the Shares. If an active trading market for the Shares does not exist or continue to exist, the market prices
and liquidity of the Shares may 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-indent: 0.5in"><B><I>The Trust may be required to 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 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">If the Trust is required to terminate and
liquidate, such termination and liquidation could occur at a time that is disadvantageous to Shareholders, such as when the Bitcoin
Index Price is lower than it was at the time when Shareholders purchased their Shares. In such a case, when the Trust&rsquo;s bitcoins
are sold as part of the Trust&rsquo;s liquidation, the resulting proceeds distributed to Shareholders will be less than if the
Bitcoin Index Price were higher at the time of sale. See &ldquo;Description of the Trust Documents&mdash;Description of the Trust
Agreement&mdash;The Trustee&mdash;Termination of the Trust&rdquo; for more information about the termination of the Trust, including
when the termination of the Trust may be triggered by events outside the direct control of the Sponsor, the Trustee or 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-indent: 0.5in"><B><I>The Trust Agreement includes a provision that
restricts the right of a beneficial owner of a statutory trust from bringing a derivative action. </I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Under Delaware law, the right of a beneficial
owner of a statutory trust (such as a Shareholder of the Trust) to bring a derivative action (i.e., to initiate a lawsuit in the
name of a the statutory trust in order to assert a claim belonging to the statutory trust against a fiduciary of the statutory
trust or against a third-party when the statutory trust&rsquo;s management has refused to do so) may be restricted by the terms
of the governing instrument of the statutory trust. The Trust Agreement provides that in addition to any other requirements of
applicable law, no Shareholder shall 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)&nbsp;are not affiliates of one another and (ii)&nbsp;collectively
hold at least 10% of the outstanding Shares join in the bringing or maintaining of such action, suit or other proceeding. Therefore,
the Trust Agreement limits the likelihood that a Shareholder could successfully assert a derivative action.</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: 0.5in"></P>

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<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: 0.5in"><B><I>The Administrator is solely responsible for
determining the value of the bitcoins, 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 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">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&nbsp;p.m., New York time on
each business day. The Administrator&rsquo;s determination is made utilizing data from the Custodian&rsquo;s operations and the
Bitcoin Index Price, calculated at 4:00 p.m., New York time on such day. To the extent that the Trust&rsquo;s Bitcoin Holdings
or Bitcoin Holdings per Share are incorrectly calculated, the Administrator may not be liable for any error and such misreporting
of valuation data could adversely affect 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-indent: 0.5in"><B><I>Extraordinary expenses resulting from unanticipated
events may become payable by the Trust, adversely affecting an investment in the Shares. </I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In consideration for the Sponsor&rsquo;s
Fee, the Sponsor has contractually assumed the Sponsor-assumed Fees, which are certain operational and periodic expenses of the
Trust. See &ldquo;Activities of the Trust&mdash;Trust Expenses.&rdquo; Extraordinary expenses of the Trust (for example, expenses
relating to litigation) are not assumed by the Sponsor and are instead borne by the Trust and paid through the sale of the Trust&rsquo;s
bitcoins. Because the Trust does not generate any income, every time that it delivers bitcoins to the Sponsor for the Sponsor&rsquo;s
Fee or sells bitcoins for the Additional Trust Expenses, the number of bitcoins represented by each Share will gradually decrease
over time. In addition, the Sponsor may, in its sole discretion, increase the Sponsor&rsquo;s Fee or decrease the Sponsor-paid
Expenses which could result in a greater decline in the number of bitcoins that the Trust holds. Such an increase in the Sponsor&rsquo;s
Fee or decrease in the Sponsor-paid Expenses could occur if the expenses of the Trust materially increase. Alternatively, the Sponsor
could choose to decrease the Sponsor&rsquo;s Fee in response to competitive pressures from other digital currency financial vehicles
similar to the Trust. The Sponsor will balance such competitive pressures and the costs that it incurs in acting as Sponsor for
the Trust when determining the Sponsor&rsquo;s Fee.</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: 0.5in"><B><I>The Trust&rsquo;s delivery or sale of bitcoins
to pay expenses or other operations of the Trust could result in Shareholders incurring tax liability without an associated distribution
from the Trust. </I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Assuming that the Trust is treated as a
grantor trust for U.S. federal income tax purposes, each delivery of bitcoins by the Trust to pay the Sponsor&rsquo;s Fee or other
expenses and each sale of bitcoins by the Trust to pay Additional Trust Expenses will be a taxable event to Shareholders. Thus,
the Trust&rsquo;s payment of expenses could result in Shareholders&rsquo; incurring tax liability without an associated distribution
from the Trust. Any such tax liability could adversely affect an investment in the Shares. See &ldquo;U.S. Federal Income Tax Consequences.&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-indent: 0.5in"><B><I>If the Trust incurs extraordinary expenses in
U.S. Dollars, the Trust will sell bitcoins to pay these expenses. The sale of the Trust&rsquo;s bitcoins to pay expenses at a time
of low bitcoin prices could adversely affect the value of the Shares. </I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Sponsor will sell bitcoins held by the
Trust to pay Trust expenses not assumed by the Sponsor on an as-needed basis, irrespective of then-current bitcoin prices on the
Bitcoin Exchange Market. The Trust is not actively managed and no attempt will be made to protect against or to take advantage
of fluctuations in the price of bitcoins. Consequently, if the Trust incurs expenses in U.S. Dollars, the Trust&rsquo;s bitcoins
may be sold at a time when the bitcoin prices on the Bitcoin Exchange Market are low, resulting in a negative impact 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-indent: 0.5in"><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, the Administrator or the Custodian under the
Trust Documents. </I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Under the Trust Documents, each of the Sponsor,
the Trustee, the Transfer Agent, the Administrator and the Custodian has a right to be indemnified by the Trust for certain liabilities
or expenses that it incurs without gross negligence, bad faith or willful misconduct on its part. Therefore, the Sponsor, Trustee,
Transfer Agent, the Administrator or 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 Trust&rsquo;s Bitcoin Holdings 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-indent: 0.5in"><B><I>Intellectual property rights claims may adversely
affect the Trust and an investment in the Shares. </I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Sponsor is not aware of any intellectual
property rights claims that may prevent the Trust from operating and holding bitcoins; 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 bitcoins. 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 Additional Trust Expenses and be borne by the Trust through the sale of the Trust&rsquo;s
bitcoins. Additionally, a meritorious intellectual property rights claim could prevent the Trust from operating and force the Sponsor
to terminate the Trust and liquidate the Trust&rsquo;s bitcoins. As a result, an intellectual property rights claim against the
Trust could adversely affect 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-indent: 0.5in"></P>

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

<P STYLE="font: small-caps 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 84.95pt; text-indent: -84.95pt"><FONT STYLE="font-variant: normal"><B>Risk
Factors Related to the Regulation of the Trust and the Shares </B></FONT></P>

<P STYLE="font: small-caps 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 84.95pt; text-indent: -84.95pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B><I>Shareholders do not have the protections associated
with ownership of shares in an investment company registered under the Investment Company Act or the protections afforded by the
CEA. </I></B></P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Trust is not registered as an investment
company under the Investment Company 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-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Trust will not hold or trade in commodity
futures contracts 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-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B><I>Regulatory changes or actions may alter the
nature of an investment in the Shares or restrict the use of bitcoins or the operation of the Bitcoin Network or the Bitcoin Exchange
Market in a manner that adversely affects an investment in the Shares. </I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">As bitcoins 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 Bitcoin Network, bitcoin users and
the Bitcoin Exchange Market, with particular focus on the extent to which bitcoins 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 bitcoins for users. Many of these state and federal agencies have issued consumer advisories regarding the risks posed by
bitcoins to investors. On-going and future regulatory actions may alter, perhaps to a materially adverse extent, the nature of
an investment in the Shares or the ability of the Trust to continue to operate.</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: 0.5in">In 2013 guidance, FinCEN took the position
that any administrator or exchanger of convertible digital currencies, including bitcoins, must register with FinCEN as a money
transmitter and must comply with the anti-money laundering regulations applicable to money transmitters. FinCEN subsequently issued
several interpretive letters clarifying which entities would be considered administrators or exchangers and which would be considered
mere &ldquo;users&rdquo; not subject to registration. The requirement that bitcoin 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 bitcoins and therefore
may 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-indent: 0.5in">In 2015, the NYDFS finalized a rule that
requires most businesses involved in digital currency business activity in or involving New York, excluding merchants and consumers,
to apply for a license, commonly known as a BitLicense, from the NYDFS and to comply with anti-money laundering, cyber security,
consumer protection, and financial and reporting requirements, among others. As an alternative to the BitLicense in New York, firms
can apply for a charter to become limited purpose trust companies qualified to engage in digital currency business activity. Other
states have considered regimes similar to the BitLicense (for example, a bill in California would have imposed a similar regime,
although the bill was shelved), or have required digital currency businesses to register with their states as money transmitters,
such as Washington and Georgia, which results in digital currency businesses being subject to requirements similar to those of
NYDFS&rsquo; BitLicense regime. Certain state regulators, such as the Texas Department of Banking, Kansas Office of the State Bank
Commissioner and the Illinois Department of Financial and Professional Regulation, have found that mere transmission of bitcoin,
without activities involving transmission of fiat currency, does not constitute money transmission requiring licensure. The North
Carolina Commissioner of Banks has issued guidance providing that North Carolina&rsquo;s money transmission regulations only apply
to the transmission of digital currency and not its use. The inconsistency in applying money transmitting licensure requirements
to certain bitcoin businesses may make it more difficult for bitcoin businesses to provide services, which may affect consumer
adoption of bitcoin and its 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-indent: 0.5in"></P>

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<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: 0.5in">To date, the SEC has not asserted regulatory
authority over the Bitcoin Network or bitcoin trading or ownership and has not expressed the view that digital currencies, including
bitcoin should be classified or treated as securities for purposes of U.S.&nbsp;federal securities laws. However, the SEC has commented
on bitcoin and bitcoin-related market developments and has taken action against investment schemes involving bitcoin. For example,
in the SEC&rsquo;s recent review of proposed rule changes to list and trade shares of certain bitcoin-related investment vehicles
on public markets, they have stated that the bitcoin markets are not properly regulated. The SEC asserts that this results in the
public markets&rsquo; inability to enter into surveillance-sharing agreements that help address concerns regarding fraudulent or
manipulative acts and practices.</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: 0.5in">If the SEC were to determine that bitcoin
is a security, the Trust and the Sponsor would be subject to additional regulatory and compliance requirements under U.S. federal
securities laws, including the Investment Company Act and, with respect to the Sponsor, the Investment Advisers Act.</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: 0.5in">The CFTC treats bitcoin and other digital
currencies as &ldquo;commodities&rdquo; under the CEA, thereby asserting jurisdiction over futures, swaps, and other CFTC-regulated
derivatives that reference digital currencies. The CFTC has not, to date, taken the view that bitcoin is a &ldquo;commodity interest,&rdquo;
which is defined under the CEA to include futures, swaps, and other derivatives based on commodities. Commodity interests are subject
to CFTC regulation and thus, if bitcoin were to be deemed a commodity interest by the CFTC, the Trust and the Sponsor would be
subject to additional regulatory and compliance requirements under the CEA and CFTC regulations.</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: 0.5in">To the extent that future regulatory actions
or policies limit the ability to exchange bitcoins or utilize them for payments, the demand for bitcoins will be reduced and Authorized
Participants may not seek to redeem Redemption Baskets in exchange for redemption proceeds in bitcoins. Furthermore, regulatory
actions may limit the ability of end-users to convert bitcoins into fiat currency (for example, U.S.&nbsp;Dollars) or use bitcoins
to pay for goods and services. Such regulatory actions or policies would result in a reduction of demand, and in turn, the Bitcoin
Index Price and the price 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-indent: 0.5in">Various foreign jurisdictions may, in the
near future, adopt laws, regulations or directives that affect the Bitcoin Network, the Bitcoin Exchange Market and their users,
particularly Bitcoin Exchanges and service providers that fall within such jurisdictions&rsquo; regulatory scope. Such laws, regulations
or directives may conflict with those of the United States and may negatively impact the acceptance of bitcoins by users, merchants
and service providers outside the United States and may therefore impede the growth or sustainability of the bitcoin economy in
the European Union, China, Japan, Russia and the United States and globally, or otherwise negatively affect the value of bitcoins.</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: 0.5in">Additionally, U.S. state and Federal, and
foreign regulators and legislatures have taken action against virtual currency businesses or enacted restrictive regimes in response
to adverse publicity arising from hacks, consumer harm, or criminal activity stemming from virtual currency activity. The value
of bitcoins could thus be impacted by such adverse publicity.</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: 0.5in"><B><I>If regulatory changes or interpretations of
an Authorized Participant or Liquidity Provider&rsquo;s activities require the regulation of an Authorized Participant or Liquidity
Provider 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 virtual currency business under state regimes for the licensing of such businesses, an Authorized
Participant or Liquidity Provider may be required to register and comply with such regulations, which could result in extraordinary,
recurring and/or nonrecurring expenses to the Authorized Participant or Liquidity Provider or increased commissions for the Authorized
Participant or Liquidity Provider&rsquo;s clients, thereby reducing the liquidity of the Trust. </I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">To the extent that the activities of an
Authorized Participant or Liquidity Provider 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, an Authorized Participant or Liquidity Provider may be
required to comply with FinCEN regulations, including those that would mandate an Authorized Participant or Liquidity Provider
to implement anti-money laundering programs, make certain reports to FinCEN and maintain certain records. Similarly, the activities
of an Authorized Participant or Liquidity Provider may require it to be licensed as a money transmitter or as a virtual currency
business, such as under NYDFS&rsquo;s BitLicense scheme.</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: 0.5in">Such additional regulatory obligations may
cause the Authorized Participant or Liquidity Provider to incur extraordinary expenses, possibly increasing the levels of the commissions
that an Authorized Participant or Liquidity Provider charges its clients in a material and adverse manner. If an Authorized Participant
or Liquidity Provider determines not to comply with such additional regulatory and registration requirements, an Authorized Participant
or Liquidity Provider may terminate its role as an Authorized Participant or Liquidity Provider of the Trust. Such a termination
may decrease the liquidity 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-indent: 0.5in"></P>

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<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: 0.5in">Additionally, to the extent an Authorized
Participant or Liquidity Provider is found to have operated without appropriate state or federal licenses, it may be subject to
investigation, administrative or court proceedings, and civil or criminal monetary fines and penalties, all of which would harm
the reputation of the Trust or its Sponsor, decrease the liquidity of the Trust, and have a material adverse effect on the price
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-indent: 0.5in"><B><I>Banks may not provide banking services, or may
cut off banking services, to businesses that provide bitcoin-related services or that accept bitcoin as payment, which could damage
the public perception of bitcoin and the utility of bitcoin as a payment system and could decrease the price of bitcoins and adversely
affect an investment in the Shares. </I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">A number of companies that provide bitcoin-related
services have been unable to find banks that are willing to provide them with bank accounts and banking services. Similarly, a
number of such companies have had their existing bank accounts closed by their banks. Banks may refuse to provide bank accounts
and other banking services to bitcoin-related companies or companies that accept bitcoin for a number of reasons, such as perceived
compliance risks or costs. The difficulty that many businesses that provide bitcoin-related services have and may continue to have
in finding banks willing to provide them with bank accounts and other banking services may be currently decreasing the usefulness
of bitcoin as a payment system and harming public perception of bitcoin or could decrease its usefulness and harm its public perception
in the future. Similarly, the usefulness of bitcoin as a payment system and the public perception of bitcoin could be damaged if
banks were to close the accounts of many or of a few key businesses providing bitcoin-related services. This could decrease the
price of bitcoins and therefore adversely affect 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-indent: 0.5in"><B><I>It may be illegal now, or in the future, to
acquire, own, hold, sell or use bitcoins in one or more countries, and ownership of, holding or trading in Shares may also be considered
illegal and subject to sanctions. </I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The United States, China, Russia or other
jurisdictions may take regulatory actions in the future that severely restrict the right to acquire, own, hold, sell or use bitcoins
or to exchange bitcoins for fiat currency. Such an action may also result in the restriction of ownership, holding or trading in
the Shares. Such a restriction could subject the Trust or its Sponsor to investigations, civil or criminal fines and penalties,
which could harm the reputation of the Trust or its Sponsor, and could result in the termination and liquidation of the Trust at
a time that is disadvantageous to Shareholders, or may adversely affect an investment in the Shares.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B><I>If regulatory changes or interpretations of
the Trust&rsquo;s or Sponsor&rsquo;s activities require registration as money service businesses under the regulations promulgated
by FinCEN under the authority of the U.S. Bank Secrecy Act or as money transmitters or digital currency businesses under state
regimes for the licensing of such businesses, the Trust and/or Sponsor could suffer reputational harm and also extraordinary, recurring
and/or nonrecurring expenses, which would adversely impact an investment in the Shares. </I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">If regulatory changes or interpretations
of the Trust&rsquo;s or Sponsor&rsquo;s activities require the registration of the Trust or Sponsor as a money services business
under the regulations promulgated by FinCEN under the authority of the U.S. Bank Secrecy Act, the Trust or Sponsor may be required
to register and comply with such regulations. If regulatory changes or interpretations of the Trust&rsquo;s or Sponsor&rsquo;s
activities require the licensing or other registration as a money transmitter or business engaged in digital currency activity
(e.g., under the New York BitLicense regime) (or equivalent designation) under state law in any state in which the Trust or Sponsor
operates, the Trust or Sponsor may be required to seek licensure or otherwise register and comply with such state law. In the event
of any such requirement, to the extent that the Sponsor decides to continue the Trust, the required registrations, licensure and
regulatory compliance steps may result in extraordinary, nonrecurring expenses to the Trust. Regulatory compliance would include,
among other things, implementing anti-money laundering and consumer protection programs. The Sponsor may also decide to terminate
the Trust. Any termination of the Trust in response to the changed regulatory circumstances may be at a time that is disadvantageous
to 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-indent: 0.5in">To the extent the Trust or its Sponsor is
found to have operated without appropriate state or federal licenses, it may be subject to investigation, administrative or court
proceedings, and civil or criminal monetary fines and penalties, all of which would harm the reputation of the Trust or its Sponsor,
decrease the liquidity of the Trust, and have a material adverse effect on the price of the Shares. If the Sponsor decides to comply
with such additional federal or state regulatory obligations and continue the Trust, the required registrations, licensure and
regulatory compliance steps may result in extraordinary, nonrecurring expenses to the Trust, possibly affecting an investment in
the Shares in a material and adverse manner. Furthermore, the Trust and its service providers may not be capable of complying with
certain federal or state regulatory obligations applicable to money service businesses&rsquo; money transmitters and businesses
involved in digital currency business activity. If the Sponsor determines not to comply with such requirements, the Sponsor will
act to dissolve and liquidate the Trust. Any such termination could result in the liquidation of the Trust&rsquo;s bitcoins at
a time that is disadvantageous to 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-indent: 0.5in"></P>

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<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: 0.5in"><B><I>Regulatory changes or interpretations could
cause the Trust and the Sponsor to register and comply with new regulations, resulting in potentially extraordinary, nonrecurring
expenses to the Trust. </I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Current and future legislation, CFTC and
SEC rulemaking and other regulatory developments may impact the manner in which bitcoins are treated for classification and clearing
purposes. In particular, bitcoins may be classified by the CFTC as &ldquo;commodity interests&rdquo; under the CEA or may be classified
by the SEC as &ldquo;securities&rdquo; under U.S. federal securities laws. As of the date of this prospectus, the Sponsor is not
aware of any rules that have been proposed to regulate bitcoins as a commodity interest or a security. Although several U.S. federal
district courts have recently held for certain purposes that bitcoins are currency or a form of money, these rulings are not definitive
and the Sponsor and the Trust cannot be certain as to how future regulatory developments will impact the treatment of bitcoins
under the law. 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-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">To the extent that bitcoins are 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. The Sponsor may be required to register as a commodity pool operator or commodity
trading advisor with the CFTC and become a member of the National Futures Association and may be subject to additional regulatory
requirements with respect to the Trust, including disclosure and reporting requirements. These additional requirements may result
in extraordinary, recurring and/or nonrecurring expenses of the Trust, thereby materially and adversely impacting the Shares. 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 bitcoins at a time that is disadvantageous
to 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-indent: 0.5in">To the extent that bitcoins are deemed to
fall within the definition of a security under U.S. federal securities laws, the Trust and the Sponsor may be subject to additional
requirements under the Investment Company Act and Investment Advisers Act. The Sponsor may be required to register as an investment
adviser under the Investment Advisers Act. Such additional registration may result in extraordinary, recurring and/or non-recurring
expenses of the Trust, thereby materially and adversely impacting the Shares. 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 bitcoins at a time that is disadvantageous to 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-indent: 0.5in"><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 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Sponsor intends to take the position
that the Trust will be 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, a <I>pro rata</I> 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-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">If the IRS were successful in asserting
that 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, although due to the uncertain treatment of bitcoins for U.S.&nbsp;federal income tax purposes (as discussed below
in &ldquo;U.S. Federal Income Tax Consequences&mdash;Uncertainty Regarding the U.S. Federal Income Tax Treatment of Bitcoins&rdquo;),
there can be no assurance in this regard. 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 the timing of recognition of gain or loss. In addition, tax information
reports provided to Shareholders 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 would be classified as a corporation for such purposes. In that event,
the Trust would be subject to entity-level U.S. federal income tax (currently at a maximum marginal rate of 21%) on its net taxable
income and certain distributions made by the Trust to Shareholders would be taxable as dividends to the extent of the Trust&rsquo;s
current and accumulated earnings and profits (which, in the case of a non-U.S. Shareholder, generally would be subject to U.S.
federal withholding tax at a 30% rate (or a lower rate provided by an applicable income tax treaty)).</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: 0.5in"></P>

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<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: 0.5in"><B><I>The treatment of bitcoins for U.S. federal income
tax purposes is uncertain. </I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">As discussed in the section entitled &ldquo;U.S.
Federal Income Tax Consequences&mdash;Uncertainty Regarding the U.S. Federal Income Tax Treatment of Bitcoins&rdquo; below, the
Trust intends to take the position that each beneficial owner of Shares generally will be treated for U.S. federal income tax purposes
as the owner of an undivided interest in the bitcoins held in the Trust. Many significant aspects of the U.S. federal income tax
treatment of bitcoins are uncertain, and the Sponsor does not intend to request a ruling from the IRS on these issues. On March&nbsp;25,
2014, the IRS released a notice (the &ldquo;Notice&rdquo;), which discusses certain aspects of the treatment of virtual currencies,
such as bitcoins, for U.S. federal income tax purposes. In the Notice, the IRS stated that, for U.S. federal income tax purposes,
(i)&nbsp;bitcoins are &ldquo;property&rdquo; that is not currency and (ii)&nbsp;bitcoins may be held as capital assets. There can
be no assurance, however, that the IRS will not alter its position with respect to bitcoins in the future or that a court would
uphold the treatment set forth in the Notice. In addition, legislation has been introduced that would, if enacted, cause bitcoins
to be treated as currency for U.S. federal income tax purposes. If bitcoins were properly treated as currency for U.S.&nbsp;federal
income tax purposes, gains recognized on the disposition of bitcoins would constitute ordinary income, and losses recognized on
the disposition of bitcoins could be subject to special reporting requirements applicable to &ldquo;reportable transactions.&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-indent: 0.5in">The Notice does not address other significant
aspects of the U.S. federal income tax treatment of bitcoins, including: (i)&nbsp;whether bitcoins are properly treated as &ldquo;commodities&rdquo;
for U.S. federal income tax purposes; (ii)&nbsp;whether bitcoins are properly treated as &ldquo;collectibles&rdquo; for U.S. federal
income tax purposes, (iii)&nbsp;the proper method of determining a holder&rsquo;s holding period and tax basis for bitcoins acquired
at different times or at varying prices; and (iv)&nbsp;whether and how a holder of bitcoins acquired at different times or at varying
prices may designate, for U.S. federal income tax purposes, which of the bitcoins is transferred in a subsequent sale, exchange
or other disposition. In 2019, the IRS Issued an FAQ that addressed some, but not all of these issues, but it has not confirmed
the answers provided in the FAQ in a manner upon which taxpayers may rely.</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: 0.5in">Prospective investors are urged to consult
their tax advisers regarding the substantial uncertainty regarding the tax consequences of an investment in bitcoins.</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: 0.5in"><B><I>Future developments in the tax treatment of
bitcoins could adversely affect an investment in the Shares. </I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The New York State Department of Taxation
and Finance (&ldquo;NYDTF&rdquo;) has issued guidance regarding the application of New York State tax law to virtual currencies
such as bitcoins. The NYDTF determined that New York State would follow the Notice with respect to the treatment of virtual currencies
such as bitcoins for state income tax purposes. Furthermore, the NYDTF took the position that virtual currencies such as bitcoin
are a form of &ldquo;intangible property,&rdquo; with the result that the purchase and sale of bitcoins for fiat currency is not
subject to New York state sales tax (although exchanges of bitcoin for other goods and services may be subject to sales tax under
barter transaction treatment). The New Jersey Division of Taxation has issued similar guidance, while the taxing authorities of
various states other than New York and New Jersey have issued guidance exempting the acquisition and/or disposition of bitcoins
from sales tax. It is unclear what further guidance on the treatment of bitcoins for state tax purposes may be issued in the future.
If a state does not follow the Notice, such state&rsquo;s treatment of bitcoins 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 bitcoins
generally. Any such treatment may have a negative effect on prices of bitcoins in the Bitcoin Exchange Market and may 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-indent: 0.5in">The treatment of virtual currencies such
as bitcoins for tax purposes by non-U.S. jurisdictions may differ from the treatment of virtual currencies by the IRS or the NYDTF.
If a foreign jurisdiction with a significant share of the market of bitcoin users imposes onerous tax burdens on bitcoin users,
or imposes sales or value-added tax on purchases and sales of bitcoins for fiat currency, such actions could result in decreased
demand for bitcoins in such jurisdiction, which could adversely affect the price of bitcoins and the value of the Shares.</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: 0; text-align: justify"> <B>Risk Factors Related to the Index</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"> <B><I>The CF Bitcoin US Settlement Price
has a limited history and there are limitations with the price of bitcoin reflected there.</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: 0.5in"> The Index has a limited
history and is an average composite Index calculated using volume-weighted trading price data from certain Bitcoin Exchanges.
These platforms are chosen by the Benchmark Administrator in accordance with the provisions of its publicly available CF Constituent
Exchange Criteria that is available on its website, conformance to which is supervised by an oversight body. This composition
may change over time. </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"> <B><I>The value of bitcoin as reflected
by the Index may be subject to momentum pricing due to speculation regarding future appreciation in value, leading to greater
volatility which could adversely affect an investment in the Shares.</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: 0.5in"> Momentum pricing typically
is associated with growth stocks and other assets whose valuation, as determined by the investing public, accounts for anticipated
future appreciation in value. The Index is determined using data from various Bitcoin Exchanges. The Sponsor believes that momentum
pricing of bitcoin has resulted, and may continue to result, in speculation regarding future appreciation in the value of bitcoin,
inflating and making the Index more volatile. As a result, bitcoin may be more likely to fluctuate in value due to changing investor
confidence in future appreciation or depreciation in the Index, which could adversely affect an investment in the Shares. </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"> <B><I>The Benchmark Administrator could
experience system failures or errors.</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-indent: 0.5in"> If the computers or other facilities of
the Benchmark Administrator, data providers and/or relevant stock exchange malfunction for any reason, calculation and dissemination
of the Index may be delayed and trading in the Shares may be suspended for a period of time. Errors in Index data, the Index computations
and/or construction may occur from time to time and may not be identified and/or corrected for a period of time or at all, which
may have an adverse impact on the Trust and the Shareholders. Any of the foregoing may lead to the errors in the Index, which
may lead to a different investment outcome for the Trust and its Shareholders than would have been the case had such events not
occurred. The Index is the reference price used to value the Trust&rsquo;s bitcoin for purposes of calculating the Trust&rsquo;s
NAV. Consequently, losses or costs associated with the Index&rsquo;s errors or other risks described above will generally be borne
by the Trust and the Shareholders and neither the Sponsor nor its affiliates or agents make any representations or warranties
regarding the foregoing. </P>

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

<P STYLE="font: small-caps 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 84.95pt; text-indent: -84.95pt"><FONT STYLE="font-variant: normal"><B>Risk
Factors Related to Potential Conflicts of Interest </B></FONT></P>

<P STYLE="font: small-caps 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 84.95pt; text-indent: -84.95pt">&nbsp;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Sponsor will manage the business and
affairs of the Trust. Conflicts of interest may arise among the Sponsor and its affiliates, including the Index Provider, the Authorized
Participants and [&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;], who serves as a Liquidity Provider, 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-indent: 0.5in">&nbsp;</P>

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

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD>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;</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">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD>The Trust has agreed to indemnify the Sponsor and its 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" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD>The Sponsor is responsible for allocating its own limited resources among different clients and potential future business ventures,
to each of which it owes fiduciary duties;</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">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD>The Sponsor&rsquo;s staff also services affiliates of the Sponsor and their respective clients and cannot devote all of its,
or their, respective time or resources to the management of the business and affairs of the Trust;</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD>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" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD>There is an absence of arm&rsquo;s-length negotiation with respect to certain terms of the Trust, and, where applicable, there
has been no independent due diligence conducted with respect to this 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" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD>The Sponsor decides whether to retain separate counsel, accountants or others to perform services for the Trust; and</TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">By investing in the Shares, investors agree
and consent to the provisions set forth in the Trust Agreement. See &ldquo;Description of the Trust Documents&mdash;Description
of the Trust Agreement.&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-indent: 0.5in">For a further discussion of the conflicts
of interest among the Sponsor, Authorized Participants, Liquidity Providers, Index Provider, Custodian, Trust and others, see &ldquo;Conflicts
of Interest.&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-indent: 0.5in"><B><I>Affiliates of the Sponsor may invest in or trade
bitcoin without regard to the interests of the Trust or its Shareholders. </I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Affiliates of the Sponsor have substantial
direct investments in bitcoins. Such affiliates of the Sponsor are permitted to manage such investments, taking into account their
own interests, without regard to the interests of the Trust or its Shareholders. Affiliates of the Sponsor may obtain exposure
to bitcoin through 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-indent: 0.5in">To the extent that any substantial investment
in bitcoins is initiated, materially increased or materially reduced, such investment can affect the Bitcoin Index Price. The initiation
of, or material increases in, a substantial investment in bitcoin may result in an increase in the Bitcoin Index Price. A material
reduction in a substantial investment may result in a decrease in the Bitcoin Index Price, having a negative impact on the value
of Shares. See &ldquo;Conflicts of Interest&mdash;Proprietary Trading/Other Clients.&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-indent: 0.5in"><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 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">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 the bitcoins
held by 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: 0.5in">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 currency financial vehicle, a substitute sponsor may not have the experience, knowledge or expertise required
to ensure that the Trust will operate successfully or to continue to operate at all. Therefore, the appointment of a substitute
sponsor may not necessarily be beneficial to the Trust or an investment in the Shares and the Trust may terminate. See &ldquo;Conflicts
of Interest&mdash;The Sponsor.&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-indent: 0.5in"><B><I>The Custodian owes no fiduciary duties to the
Trust or the Shareholders, is not required to act in their best interest and could resign or be removed by the Sponsor, which could
trigger early termination of the Trust. </I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Custodian is not a trustee for, and
owes no fiduciary duties to, the Trust or the Shareholders. In addition, the Custodian has no duty to continue to act as the custodian
of the Trust. The Custodian can terminate its role as custodian for any reason whatsoever upon the notice period provided under
the Custodian Agreement. The Custodian may also be terminated. If the Custodian resigns or is removed without replacement, the
Trust will dissolve 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-indent: 0.5in"></P>

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<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: 0.5in"><B><I>The Custodian&rsquo;s ability to adopt technology
in response to changing security needs or trends poses a challenge to the safekeeping of the Trust&rsquo;s bitcoins. </I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The history of the Bitcoin Exchange Market
has shown that bitcoin exchanges and large holders of bitcoins must adapt to technological change in order to secure and safeguard
client accounts. While the Custodian is required in its agreement to safeguard the Custodial Coins from theft, loss, destruction
or other issues relating to hackers and technological attack, its ability to do so is based upon known technology and threats.
As technological change occurs, the security threats to the Custodial Coins will likely adapt and previously unknown threats may
emerge. Furthermore, the Sponsor believes that the Trust may become a more appealing target of security threats as the size of
the Trust&rsquo;s assets grows. To the extent that the Custodian is unable to identify and mitigate or stop new security threats,
the Custodial Coins may be subject to theft, loss, destruction or other attack, which could have a negative impact on the performance
of the Shares or result in loss of the Trust&rsquo;s 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-indent: 0.5in"><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 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Sponsor has consulted with counsel,
accountants and other advisers regarding the formation and operation of the Trust. 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 an investment in 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-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B><I>Shareholders may be adversely affected by lack
of regular shareholder meetings and no voting rights. </I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Under the Trust Agreement, Shareholders
have limited voting rights and the Trust will not have regular Shareholder meetings and 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. Shareholders, may, however, remove
and replace the Sponsor by the affirmative vote of a majority of the outstanding Shares. The Shareholders&rsquo; limited voting
rights, however, give almost all control under the Trust Agreement to the Sponsor and the Trustee. The Sponsor may take actions
in the operation of the Trust that may be adverse to the interests of Shareholders. The Sponsor&rsquo;s operation of the Trust
could adversely affect an investment in the Shares.</P>

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


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-variant: small-caps"><B></B></FONT></P>

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

<P STYLE="font: small-caps bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><A NAME="valkyries04272121a005"></A>USE OF PROCEEDS</P>

<P STYLE="font: small-caps bold 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-indent: 0.5in">Proceeds received by the Trust from the
issuance and sale of Baskets will consist of bitcoin deposits. Pursuant to the Trust Agreement, during the life of the Trust such
bitcoins will only be (i)&nbsp;owned by the Trust and held by the Custodian, (ii)&nbsp;disbursed (or converted to U.S. Dollars,
if necessary) to pay the Trust&rsquo;s expenses, (iii)&nbsp;distributed to Authorized Participants or Liquidity Providers in connection
with the redemption of Baskets and (iv)&nbsp;liquidated in the event that the Trust terminates or as otherwise required by law
or regulation.</P>

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


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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-variant: small-caps"><B></B></FONT></P>

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

<P STYLE="font: small-caps bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><A NAME="valkyries04272121a006"></A>OVERVIEW OF THE BITCOIN
INDUSTRY AND MARKET</P>

<P STYLE="font: small-caps bold 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-indent: 0.5in">This section of the prospectus provides
a more detailed description of bitcoin, including information about the historical development of bitcoin, how a person holds bitcoin,
how to use bitcoin in transactions, how to trade bitcoin, the &ldquo;exchange&rdquo; market where bitcoin can be bought, held and
sold, the bitcoin OTC market and bitcoin mining. In this prospectus, Bitcoin with an upper case &ldquo;B&rdquo; is used to describe
the system as a whole that is involved in maintaining the ledger of bitcoin ownership and facilitating the transfer of bitcoin
among parties. When referring to the digital asset within the bitcoin network, bitcoin is written with a lower case &ldquo;b&rdquo;
(except, of course, at the beginning of sentences or paragraph sections, as below).</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; margin-left: 0in; text-indent: 0in"><FONT STYLE="font-variant: normal"><B>Bitcoin</B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Bitcoin is the digital asset that is native
to, and created and transmitted through the operations of, the peer-to-peer Bitcoin network, a decentralized network of computers
that operates on cryptographic protocols. No single entity owns or operates the Bitcoin network, the infrastructure of which is
collectively maintained by a decentralized user base. The Bitcoin network allows people to exchange tokens of value, called bitcoin,
which are recorded on a public transaction ledger known as the Blockchain. Bitcoin can be used to pay for goods and services, or
it can be converted to fiat currencies, such as the U.S. dollar, at rates determined on bitcoin trading platforms or in individual
end-user-to-end-user transactions under a barter system. Although nascent in use, bitcoin may be used as a medium of exchange,
unit of account or store of value.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Bitcoin network is decentralized and
does not require governmental authorities or financial institution intermediaries to create, transmit or determine the value of
bitcoin. In addition, no party may easily censor transactions on the Bitcoin network. As a result, the Bitcoin network is often
referred to as decentralized and censorship resistant.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The value of bitcoin is determined by the
supply of and demand for bitcoin. New bitcoin are created and rewarded to the parties providing the Bitcoin network&rsquo;s infrastructure
(&ldquo;miners&rdquo;) in exchange for their expending computational power to verifying transactions and add them to the Blockchain.
The Blockchain is effectively a decentralized database that includes all blocks that have been solved by miners and it is updated
to include new blocks as they are solved. Each bitcoin transaction is broadcast to the Bitcoin network and, when included in a
block, recorded in the Blockchain. As each new block records outstanding bitcoin transactions, and outstanding transactions are
settled and validated through such recording, the Blockchain represents a complete, transparent and unbroken history of all transactions
of the Bitcoin network.</P>

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

<P STYLE="font: small-caps 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 84.95pt; text-indent: -84.95pt"><FONT STYLE="font-variant: normal"><B>Bitcoin
Network</B></FONT></P>

<P STYLE="font: small-caps 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 84.95pt; text-indent: -84.95pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Bitcoin was first described in a white paper
released in 2008 and published under the pseudonym &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: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The first step in directly using the Bitcoin
network for transactions is to download specialized software referred to as a &ldquo;bitcoin wallet.&rdquo; A user&rsquo;s bitcoin
wallet can run on a computer or smartphone, and can be used both to send and to receive bitcoin. Within a bitcoin wallet, a user
can generate one or more unique &ldquo;bitcoin addresses,&rdquo; which are conceptually similar to bank account numbers. After
establishing a bitcoin address, a user can send or receive bitcoin from his or her bitcoin address to another user&rsquo;s address.
Sending bitcoin from one bitcoin address to another is similar in concept to sending a bank wire from one person&rsquo;s bank account
to another person&rsquo;s bank account; provided, however, that such transactions are not managed by an intermediary and erroneous
transactions generally may not be reversed or remedied once sent.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The amount of bitcoin associated with each
bitcoin address, as well as each bitcoin transaction to or from such address, is transparently reflected in the Blockchain and
can be viewed by websites that operate as &ldquo;blockchain explorers.&rdquo; Copies of the Blockchain exist on thousands of computers
on the Bitcoin network. A user&rsquo;s bitcoin wallet will either contain a copy of the blockchain or be able to connect with another
computer that holds a copy of the blockchain. The innovative design of the Bitcoin network protocol allows each Bitcoin user to
trust that their copy of the Blockchain will generally be updated consistent with each other user&rsquo;s copy.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">When a Bitcoin user wishes to transfer bitcoin
to another user, the sender must first have the recipient&rsquo;s Bitcoin address. The sender then uses his or her Bitcoin wallet
software to create a proposed transaction to be added to the Blockchain. The proposal would reduce the amount of bitcoin allocated
to the sender&rsquo;s address and increase the amount allocated recipient&rsquo;s address, in each case by the amount of bitcoin
desired to be transferred. The proposal is completely digital in nature, similar to a file on a computer, and it can be sent to
other computers participating in the Bitcoin network; however, the use of &ldquo;unspent transaction outputs&rdquo; that are verified
cryptographically prevents the ability to duplicate or counterfeit 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-indent: 0.5in"></P>

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

<P STYLE="font: small-caps 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 84.95pt; text-indent: -84.95pt"><FONT STYLE="font-variant: normal"><B>Bitcoin
Protocol</B></FONT></P>

<P STYLE="font: small-caps 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 84.95pt; text-indent: -84.95pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Bitcoin protocol is open source software,
meaning any developer can review the underlying code and suggest changes. There is no official company or group that is responsible
for making modifications to Bitcoin. There are, however, a number of individual developers that regularly contribute to a specific
distribution of Bitcoin software known as the &ldquo;Bitcoin Core,&rdquo; which is maintained in an open-source repository on the
website Github. There are many other compatible versions of Bitcoin software, but Bitcoin Core provides the de-facto standard for
the Bitcoin protocol, also known as the &ldquo;reference software.&rdquo; The core developers for Bitcoin Core operate under a
volunteer basis and without strict hierarchical administration.</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: 0.5in">Significant changes to the Bitcoin protocol
are typically accomplished through a so-called &ldquo;Bitcoin Improvement Proposal&rdquo; or BIP. Such proposals are generally
posted on websites, and the proposals explain technical requirements for the protocol change as well as reasons why the change
should be accepted. Upon its inclusion in the most recent version of Bitcoin Core, a new BIP becomes part of the reference software&rsquo;s
Bitcoin protocol. Several BIPs have been implemented since 2011 and have provided various new features and scaling improvements.</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: 0.5in">Because Bitcoin has no central authority,
updating the reference software&rsquo;s Bitcoin protocol will not immediately change the Bitcoin network&rsquo;s operations. Instead,
the implementation of a change is achieved by users and miners downloading and running updated versions of Bitcoin Core or other
Bitcoin software that abides by the new Bitcoin protocol. Users and miners must accept any changes made to the Bitcoin source code
by downloading a version of their Bitcoin software that incorporates the proposed modification of the Bitcoin network&rsquo;s source
code. A modification of the Bitcoin network&rsquo;s source code is only effective with respect to the Bitcoin users and miners
that download it. If an incompatible modification is accepted only by 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; in the Bitcoin network.</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: 0.5in">Such a fork in the Bitcoin network occurred
on August 1, 2017, when a group of developers and miners accepted certain changes to the Bitcoin network software intended to increase
transaction capacity. Blocks mined on this network 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 distinct related assets (bitcoin and bitcoin cash). Additional forks have followed
the Bitcoin Cash fork, including those for Bitcoin Gold and Bitcoin SegWit2X, in the months after the creation of Bitcoin Cash.
It is possible that additional &ldquo;forks&rdquo; will occur in the future. For a further discussion of Hard Forks, see &ldquo;Risk
Factors&mdash;A temporary or permanent &ldquo;fork&rdquo; of the Blockchain could adversely affect an investment in the Trust.&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; "><B>Bitcoin Transactions</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-indent: 0.5in">A bitcoin transaction contains the sender&rsquo;s
bitcoin address, the recipient&rsquo;s bitcoin address, the amount of bitcoin to be sent, a transaction fee and the sender&rsquo;s
digital signature. Bitcoin transactions are secured by cryptography known as public-private key cryptography, represented by the
bitcoin addresses and digital signature in a transaction&rsquo;s data file. Each Bitcoin network address, or wallet, is associated
with a unique &ldquo;public key&rdquo; and &ldquo;private key&rdquo; pair, both of which are lengthy alphanumeric codes, derived
together and possessing a unique relationship.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The public key is visible to the public
and analogous to the Bitcoin network address. The private key is a secret and may be used to digitally sign a transaction in a
way that proves the transaction has been signed by the holder of the public-private key pair, without having to reveal the private
key. 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. 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. Similarly, if a user loses his private key and cannot restore such access (e.g., through a backup), the user
may permanently lose access to the bitcoin contained in the associated address.</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: 0.5in">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 Blockchain, which is publicly available.
Thus, the Bitcoin network provides confirmation against double-spending by memorializing every transaction in the Blockchain, which
is publicly accessible and downloaded in part or in whole by all users of the Bitcoin network software program. Any user may validate,
through their Bitcoin wallet or a blockchain explorer, that each transaction in the Bitcoin network was authorized by the holder
of the applicable private key, and Bitcoin network mining software consistent with reference software requirements typically validates
each such transaction before including it in the Blockchain. This cryptographic security ensures that bitcoin transactions may
not generally be counterfeited, although it does not protect against the &ldquo;real world&rdquo; theft or coercion of use of a
Bitcoin user&rsquo;s private key, including the hacking of a Bitcoin user&rsquo;s computer or a service provider&rsquo;s systems.</P>

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

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

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<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: 0.5in">A Bitcoin transaction between two parties
is settled when recorded in a block added to the Blockchain. Validation of a block is achieved by confirming the cryptographic
hash value included in the block&rsquo;s solution and by the block&rsquo;s addition to the longest confirmed Blockchain on the
Bitcoin network. For a transaction, inclusion in a block on the Blockchain constitutes a &ldquo;confirmation&rdquo; of a Bitcoin
transaction. As each block contains a reference to the immediately preceding block, additional blocks appended to and incorporated
into the Blockchain constitute additional confirmations of the transactions in such prior blocks, and a transaction included in
a block for the first time is confirmed once against double-spending. The layered confirmation process makes changing historical
blocks (and reversing transactions) exponentially more difficult the further back one goes in the Blockchain.</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: 0.5in">To undo past transactions in a block recorded
on the Blockchain, a malicious actor would have to exert tremendous computer power in re-solving each block in the Blockchain starting
with and after the target block and broadcasting all such blocks to the Bitcoin network. The Bitcoin network is generally programmed
to consider the longest Blockchain containing solved and valid blocks to be the most accurate Blockchain. In order to undo multiple
layers of confirmation and alter the Blockchain, a malicious actor must re-solve all of the old blocks sought to be regenerated
and be able to continuously add new blocks to the Blockchain at a speed that would have to outpace that of all of the other miners
on the Bitcoin network, who would be continuously solving for and adding new blocks to the Blockchain.</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; "><B>Bitcoin Mining &ndash; Creation of New
Bitcoins</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; "><I>Mining Process</I></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: 0.5in">The process by which bitcoins are created
and bitcoin transactions are verified is called mining. To begin mining, a user, or &ldquo;miner,&rdquo; can download and run a
mining client, which, like regular Bitcoin network software, turns the user&rsquo;s computer into a &ldquo;node&rdquo; on the Bitcoin
network that validates blocks. Each time transactions are validated and bundled into new blocks added to the Blockchain, the Bitcoin
network awards the miner solving such blocks with newly issued bitcoin and any transaction fees paid by bitcoin transaction senders.
This reward system is the method by which new bitcoins enter into circulation to the public. Over time, the size of the fixed reward
of new bitcoin decreases, and miners increasingly rely on transaction fees to compensate them for exerting computational power
in solving blocks.</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: 0.5in">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 bitcoins
to the miner who solved the new block. In order to add blocks to the Blockchain, a miner must map an input data set (i.e., the
Blockchain, plus a block of the most recent Bitcoin Network transactions and an arbitrary number called a &ldquo;nonce&rdquo;)
to a desired output data set of a predetermined length (the &ldquo;hash value&rdquo;) using the SHA-256 cryptographic hash algorithm.
Each unique block can only be solved and added to the Blockchain by one miner; therefore, all individual miners and mining pools
on the Bitcoin network are engaged in a competitive process of constantly increasing their computing power to improve their likelihood
of solving for new blocks. As more miners join the Bitcoin network and its processing power increases, the Bitcoin network adjusts
the complexity of the block-solving equation to maintain a predetermined pace of adding a new block to the Blockchain approximately
every ten minutes.</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; "><B>Mathematically Controlled Supply</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-indent: 0.5in">The method for creating new bitcoin is mathematically
controlled in a manner so that the supply of bitcoin grows at a limited rate pursuant to a pre-set schedule. The number of bitcoin
awarded for solving a new block is automatically halved every 210,000 blocks. Thus, the current fixed reward for solving a new
block is 6.25 bitcoin per block; the reward decreased from twenty-five (25) bitcoin in July 2016 and 12.5 in May 2020. It is estimated
to halve again at the start of 2024. This deliberately controlled rate of bitcoin creation means that the number of bitcoin in
existence will never exceed twenty-one (21) million and that bitcoin cannot be devalued through excessive production unless the
Bitcoin network&rsquo;s source code (and the underlying protocol for bitcoin issuance) is altered. As of January 1, 2021, approximately
18,587,000 bitcoin have been mined. It is estimated that more than ninety (90) percent of the twenty-one (21) million bitcoin will
have been produced by 2022.</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; "><B>Forms of Attack Against the Bitcoin
Network</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-indent: 0.5in">All networked systems are vulnerable to
various kinds of attacks. As with any computer network, the Bitcoin network contains certain flaws. For example, the Bitcoin network
is currently vulnerable to a &ldquo;51% attack&rdquo; where, if a mining pool were to gain control of more than 50% of the hash
rate for a digital asset, a malicious actor would be able to gain full control of the network and the ability to manipulate the
Blockchain.</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: 0.5in"></P>

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<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: 0.5in">In addition, many digital asset networks
have been subjected to a number of denial of service attacks, which has led to temporary delays in block creation and in the transfer
of bitcoin. Any similar attacks on the Bitcoin network that impact the ability to transfer bitcoin could have a material adverse
effect on the price 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; "><B>Bitcoin Market and Bitcoin Trading Platforms</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-indent: 0.5in">In addition to using bitcoin to engage in
transactions, investors may purchase and sell bitcoin to speculate as to the value of bitcoin in the bitcoin market, or as a long-term
investment to diversify their portfolio. The value of bitcoin within the market is determined, in part, by the supply of and demand
for bitcoin in the bitcoin market, market expectations for the adoption of bitcoin by individuals, the number of merchants that
accept bitcoin as a form of payment and the volume of private end-user-to-end-user transactions.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The most common means of determining a reference
value is by surveying trading platforms where secondary markets for bitcoin exist. The most prominent bitcoin trading platforms
are often referred to as &ldquo;exchanges&rdquo;, although they are not regulated and do not report trade information in the same
way as a national securities exchange. As such, there is some difference in the form, transparency and reliability of trading data
from bitcoin trading platforms. Generally speaking, bitcoin data is available from these trading platforms with publicly disclosed
valuations for each executed trade, measured by one or more fiat currencies such as the U.S. dollar or Euro or another digital
asset such as ether or tether. OTC dealers or market makers do not typically disclose their trade data.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Currently, there are several digital asset
trading platforms operating worldwide and trading platforms represent a substantial percentage of bitcoin buying and selling activity
and provide the most data with respect to prevailing valuations of bitcoin. A bitcoin trading platform provides investors with
a way to purchase and sell bitcoin, similar to stock exchanges like the New York Stock Exchange or NASDAQ, which provide ways for
investors to buy stocks and bonds in the so-called &ldquo;secondary market.&rdquo; Unlike stock exchanges regulated to monitor
securities trading activity, bitcoin trading platforms are largely regulated as money services business (or a foreign regulatory
equivalent) that monitor against money-laundering and other illicit financing. Bitcoin trading platforms operate websites designed
to permit investors to open accounts with the trading platform and then purchase and sell bitcoin.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Although bitcoin was the first cryptocurrency,
since 2009, the number of digital assets, market participants and companies in the space has increased dramatically. In addition
to bitcoin, other well-known digital assets include ether, XRP, bitcoin cash, and litecoin. The digital asset marketplace is still
being defined and evolving, including the practices of exchanges, behavior of investors, and the protocols and prominence of particular
digital assets. Prior to 2017, bitcoin accounted for approximately 85% or more of the total market capitalization of all digital
assets. By January 2021, this figure had dropped to around 69% as other digital assets launched and/or grew faster than 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-indent: 0.5in">Authorized Participants will have the option
of purchasing and selling bitcoin used in Creation Unit transactions with the Trust either on bitcoin trading platforms, in the
OTC markets or in direct bilateral transactions. OTC trading and direct transactions of bitcoin are generally accomplished via
bilateral agreements on a principal-to-principal basis. All risks and issues related to creditworthiness are between the parties
directly involved in the transaction.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; "><B>Market Participants</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; "><I>Miners</I></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: 0.5in">Miners range from Bitcoin enthusiasts to
professional mining operations that design and build dedicated machines and data centers, including mining pools, which are groups
of miners that act cohesively and combine their processing to solve blocks. When a pool solves a new block, the pool operator receives
the bitcoin and, after taking a nominal fee, splits the resulting reward among the pool participants based on the processing power
each of them contributed to solve for such block. Mining pools provide participants with access to smaller, but steadier and more
frequent, bitcoin payouts.</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; "><I>Investment and Speculative Sector</I></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: 0.5in">This sector includes the investment and
trading activities of both private and professional investors and speculators. Historically, larger financial services institutions
are publicly reported to have limited involvement in investment and trading in digital assets, although the participation landscape
is beginning to change and large corporations, financial institutions and investment firms are taking positions providing exposure
to bitcoin and other digital 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-indent: 0.5in"></P>

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<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; "><I>Retail Sector</I></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: 0.5in">The retail sector includes users transacting
in direct peer-to-peer Bitcoin transactions through the direct sending of bitcoin over the Bitcoin network. The retail sector also
includes transactions in which consumers pay for goods or services from commercial or service businesses through direct transactions
or third-party service providers.</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; "><I>Service Sector</I></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: 0.5in">This sector includes companies that provide
a variety of services including the buying, selling, payment processing and storing of Bitcoin. Bitfinex, Bitstamp, Coinbase, Gemini,
Kraken and itBit are some of the largest trading platforms by volume traded. Coinbase Custody Trust Company, LLC, the Custodian
for the Trust, is a digital asset custodian that provides custodial accounts that store bitcoin for users. As the Bitcoin network
continues to grow in acceptance, it is anticipated that service providers will expand the currently available range of services
and that additional parties will enter the service sector for the Bitcoin network.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; "><B>Competition</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-indent: 0.5in">More than 5,000 other digital assets have
been developed since the inception of Bitcoin, currently the most developed digital asset because of the length of time it has
been in existence, the investment in the infrastructure that supports it, and the network of individuals and entities that are
using Bitcoin. Some industry groups are also creating private, permissioned blockchains that may or may not feature cryptocurrencies
or other digital assets. In addition, private enterprises and governments are exploring the use of stablecoins including central
bank backed digital currencies.</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; "><B>Regulation of Bitcoin</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-indent: 0.5in">Bitcoin and other digital assets have increasingly
attracted attention from U.S. and foreign regulators. Such regulatory attention has included enforcement actions for violations
of securities and commodities laws, as well as the release of regulatory guidance explaining how existing regulatory regimes apply
to digital assets, and orders approving certain digital asset-related products. In more limited cases, new legislation or regulations
have been proposed or adopted to govern the use of digital assets and their networks.</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: 0.5in">U.S. federal and state agencies have been
examining the operations of digital asset networks, digital asset users and the digital asset trading platforms, 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 trading platforms 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.</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: 0.5in">In addition, the SEC, U.S. state securities
regulators and several foreign governments have issued warnings that digital assets sold in initial coin offerings (&ldquo;ICOs&rdquo;)
may be classified as securities and that both those digital assets and ICOs may be subject to securities regulations. Generally
speaking, ICOs are offered and conducted on the Ethereum network or similar &ldquo;smart contract&rdquo; platforms, rather than
the Bitcoin network; however, bitcoin has been used for consideration in ICOs on multiple networks and ICOs may be conducted using
the Bitcoin network.</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: 0.5in">On-going and future regulatory actions may
alter, perhaps to a materially adverse extent, the nature of an investment in the Shares or the ability of the Trust to continue
to operate. Additionally, U.S. state and federal, and foreign regulators and legislatures have taken action against digital asset
businesses or enacted restrictive regimes in response to adverse publicity arising from hacks, consumer harm, or criminal activity
stemming from digital asset activity.</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: 0.5in">Various U.S. federal and state and 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 digital asset trading platforms and service providers that fall within such
jurisdictions&rsquo; regulatory scope. There remains significant uncertainty regarding the US and foreign government and quasi-governmental
regulatory actions with respect to digital assets and digital asset exchanges. Foreign laws, regulations or directives may conflict
with those of the U.S. and may negatively impact the acceptance of bitcoin by users, merchants and service providers and may therefore
impede the growth or sustainability of the Bitcoin economy in the European Union, China, South Korea, India and the U.S. and globally,
or otherwise negatively 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-indent: 0.5in"></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; "><B>Bitcoin Value</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-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">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 (e.g., </FONT>Bitstamp, Coinbase, Kraken, itBit and Gemini<FONT STYLE="font-family: Times New Roman, Times, Serif">).</FONT></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: .5in">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: 0pt 0; text-indent: .5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: .5in">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.  Historically, a large percentage of the
global Bitcoin trading volume occurred on self-reported, unregulated Bitcoin Exchanges located in China. Throughout 2017, however,
the Chinese government took several steps to tighten controls on Bitcoin Exchanges, culminating in a ban on domestic cryptocurrency
exchanges in November 2017, which forced such exchanges to cease their operations or relocate. As a result, reported Bitcoin trading
volume on Chinese exchanges is now substantially lower, representing a de minimis share of the global trade volume.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: .5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: .5in">From time to time, there may be intra-day
price fluctuations across Bitcoin Exchanges. However, they are generally relatively immaterial. For example, the variance of prices
on Bitcoin Exchanges with the highest transaction volumes on average is lower than 2%. These variances usually stem from small
changes in the fee structures on different Bitcoin Exchanges or differences in administrative procedures required to deposit and
withdraw fiat currency in exchange for Bitcoins and vice versa. The greatest variances are found at (i)&nbsp;smaller exchanges
with relatively low transaction volumes where even small trades can be large relative to an exchange&rsquo;s transaction volume
and as a result impact the trading price on those exchanges and (ii)&nbsp;exchanges that are inaccessible to the Trust because
they do not meet the Trust&rsquo;s regulatory requirements, and as a result are accessed and used by a captured market or by parties
that do not have regulatory or compliance requirements. Historically, the Trust has not needed to make any changes in the determination
of principal market due to variances in pricing, although it has changed its principal market due to disruption of operations of
the Bitcoin Market considered to be the principal market.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: .5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: .5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: .5in">&nbsp;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><A NAME="valkyries04272121a007"></A>ACTIVITIES OF THE 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-indent: 0.5in">The activities of the Trust will be limited
to (1)&nbsp;issuing Baskets in exchange for bitcoins deposited by the Authorized Participants or Liquidity Providers, as applicable,
with the Custodian as consideration, (2)&nbsp;transferring actual bitcoins as necessary to cover the Sponsor&rsquo;s Fee and selling
bitcoins as necessary to pay Additional Trust Expenses, (3)&nbsp;transferring actual bitcoins in exchange for Baskets surrendered
for redemption by the Authorized Participants, (4)&nbsp;causing the Sponsor to sell bitcoins on the termination of the Trust and
(5)&nbsp;engaging in all administrative and custodial procedures necessary to accomplish such activities in accordance with the
provisions of the Trust Agreement. The Trust will not be actively managed. It will not engage in any activities designed to obtain
a profit from, or to ameliorate losses caused by, changes in the market prices of bitcoins.</P>

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

<P STYLE="font: small-caps 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 84.95pt; text-indent: -84.95pt"><FONT STYLE="font-variant: normal"><B>Trust
Objective </B></FONT></P>

<P STYLE="font: small-caps 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 84.95pt; text-indent: -84.95pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The investment objective of the Trust is
for the Shares to reflect the performance of the value of a bitcoin as represented by the Index, less the Trust&rsquo;s liabilities
and expenses. The Shares are designed to provide investors with a cost-effective and convenient way to invest in bitcoin. A substantial
direct investment in bitcoins may require expensive and sometimes complicated arrangements in connection with the acquisition,
security and safekeeping of the bitcoins and may involve the payment of substantial fees to acquire such bitcoins from third-party
facilitators through cash payments of U.S. Dollars. Although the Shares will not be the exact equivalent of a direct investment
in bitcoins, they provide investors with an alternative that constitutes a relatively cost-effective way to participate in bitcoin
markets through the securities market. Because the value of the Shares is tied to the value of the bitcoins held by the Trust,
it is important to understand the investment attributes of, and the market for, bitcoins.</P>

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

<P STYLE="font: small-caps 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 84.95pt; text-indent: -84.95pt"><FONT STYLE="font-variant: normal"><B>Strategy
Behind the Shares </B></FONT></P>

<P STYLE="font: small-caps 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 84.95pt; text-indent: -84.95pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Shares are intended to offer investors
an opportunity to participate in bitcoin markets through an investment in securities. [On the first day the Shares were offered,
each Share in the initial Basket represented [&nbsp;&nbsp;&nbsp;&nbsp;] bitcoin.] The logistics of accepting, transferring and
safekeeping of bitcoins are dealt with by the Sponsor, Administrator and Custodian, and the related expenses are built into the
price of the Shares. Therefore, Shareholders do not have additional tasks or costs in addition to those associated with investing
in any other publicly traded security.</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: 0.5in">The Shares are intended to provide institutional
and retail investors with a simple and cost-effective means, with minimal credit risk, of gaining investment benefits similar to
those of directly holding bitcoins. The Shares offer an investment that is:</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD><I>Easily Accessible and Relatively Cost Efficient</I>. Investors in the Shares can also directly access bitcoin markets through
the Bitcoin Exchange Market. The Sponsor believes that investors will be able to more effectively implement strategic and tactical
asset allocation strategies that use bitcoins by using the Shares instead of directly purchasing and holding bitcoins, and for
many investors, transaction costs related to the Shares will be lower than those associated with the direct purchase, storage and
safekeeping of bitcoins.</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD><I>Exchange Traded and Transparent</I>. The Shares will be listed and trade on NYSE Arca, providing investors with an efficient
means to implement various investment strategies. Upon effectiveness of the registration statement of which this prospectus is
a part, the Shares will be eligible for margin accounts and will be backed by the assets of the Trust. The Trust will not hold
or employ any derivative securities. Furthermore, the value of the Trust&rsquo;s assets will be reported each day on [&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;].</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD><I>Minimal Credit Risk</I>. The Shares represent an interest in actual bitcoins owned by the Trust. The Trust&rsquo;s bitcoins
in the Custodian&rsquo;s possession are not subject to borrowing arrangements with third parties or counterparty or credit risks.</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD><I>Safekeeping System</I>. The Custodian has been appointed to store and safekeep the bitcoins for the Trust using a segregated
and therefore diversified safekeeping storage system. The hardware, software, administration and continued technological development
that are used by the Custodian may not be available or cost-effective for many investors.</TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Trust differentiates itself from competing
digital currency financial vehicles, to the extent that such digital currency financial vehicles may develop, in the following
ways:</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"> &#9679; </TD><TD> <I>Custodian</I>. The Custodian that holds the private
                                         keys for the digital wallets of the Trust is Coinbase Custody Trust Company, LLC. Other
                                         digital currency financial vehicles that use cold storage may not use a custodian to
                                         hold their private keys. </TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD><I>Cold Storage of Private Keys</I>. All of the private keys for the Trust&rsquo;s Vault Account are kept in &ldquo;cold storage,&rdquo;
which means that the bitcoins held by the Trust&rsquo;s Vault Account are not directly connected to, or accessible from, the internet
or other computers without the private keys. See &ldquo;Custody of the Trust&rsquo;s Bitcoins&rdquo; for more information relating
to the distribution and withdrawal of the Trust&rsquo;s private keys to and from cold storage. Other digital currency financial
vehicles may not utilize cold storage or may utilize less effective cold storage-related hardware and security protocols.</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD><I>Location of Private Vaults</I>. Vaults are located in geographically dispersed locations across the world, including but
not limited to the United States, Europe, including Switzerland, and South America. Confidential information such as the private
keys and cryptographic materials are physically stored on offline servers that never have and never will have access to the internet
or any other kind of network. Vault locations are protected by extraordinary security measures, including intense human, biometric
and automated systems, 24&nbsp;hours a day, seven days a week. Vaults incorporate multiple layers of extremely advanced forms of
cryptographic security to secure bitcoins. These processes include multi-factor authentication and private key segmentation. The
geographic dispersion of vaults is designed to protect assets from being lost due to the compromise of any given vault location.
Even if the physical and cryptographic layers of security in one jurisdiction are overcome, the other vault locations would remain
uncompromised.</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD><I>Enhanced Security</I>. The Custodian and Sponsor have put enhanced security procedures in place that require one or more
employees of the Sponsor to verify each transaction, with each employee having a unique verification method. The Custodian and
the Sponsor have put additional similar enhanced security procedures in place to protect against the malicious movement of bitcoin.</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD><I>Custodian Audits</I>. The Custodian has agreed to allow the Trust and the Sponsor take any necessary steps to verify that
satisfactory internal control system and procedures are in place, and to visit and inspect the systems on which the Custodian Coins
are held. The Custodian is also obligated to provide the Trust and Sponsor with both independent and audit reports on the Bitcoin
Account.</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD><I>Directly Held Bitcoins</I>. The Trust directly owns actual bitcoins held through the Custodian. The direct ownership of
bitcoins is not subject to counterparty or credit risks. This may differ from other digital currency financial vehicles that provide
bitcoin exposure through other means, such as the use of financial or derivative instruments.</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD><I>Structure</I>. The Shares intend to track the performance of the value of a bitcoin as represented by the Index, less the
Trust&rsquo;s liabilities and expenses. The Trust seeks to achieve this objective by directly owning bitcoins. This structure may
be different from other digital currency financial vehicles that seek to track the performance of the price of bitcoins or other
digital currencies through the use of futures contracts or derivative instruments.</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD><I>Sponsor&rsquo;s Fee</I>. The relatively low level of the Sponsor&rsquo;s Fee that is paid to the Sponsor is a competitive
factor that may influence an investor&rsquo;s decision to purchase Shares.</TD></TR></TABLE>

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

<P STYLE="font: small-caps 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 84.95pt; text-indent: -84.95pt"><FONT STYLE="font-variant: normal"><B>Secondary
Market Trading </B></FONT></P>

<P STYLE="font: small-caps 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 84.95pt; text-indent: -84.95pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">While the Trust&rsquo;s investment objective
is for the Shares to reflect the performance of the value of a bitcoin as represented by the Index, less the Trust&rsquo;s liabilities
and expenses, the Shares may trade in the secondary market at prices that are lower or higher than the Bitcoin Holdings per Share.
The amount of the discount or premium in the trading price relative to the Bitcoin Holdings per Share may be influenced by non-concurrent
trading hours and liquidity between the secondary market and larger Bitcoin Exchanges in the Bitcoin Exchange Market. While the
Shares will be listed and trade on NYSE Arca from 9:30 a.m. until 4:00&nbsp;p.m., New York time, liquidity in the Bitcoin Exchange
Market may fluctuate depending upon the volume and availability of larger Bitcoin Exchanges. As a result, during periods in which
Bitcoin Exchange Market liquidity is limited or a major Bitcoin Exchange is off-line, trading spreads, and the resulting premium
or discount, on the Shares may widen.</P>

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

<P STYLE="font: small-caps 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 84.95pt; text-indent: -84.95pt"><FONT STYLE="font-variant: normal"><B>Trust
Expenses </B></FONT></P>

<P STYLE="font: small-caps 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 84.95pt; text-indent: -84.95pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Trust&rsquo;s only ordinary recurring
expense is expected to be the Sponsor&rsquo;s Fee. The Sponsor&rsquo;s Fee will be determined by applying a [&nbsp;&nbsp;&nbsp;&nbsp;]%
annual rate to the Trust&rsquo;s Bitcoin Holdings, as calculated and published by the Sponsor or its delegates, and converting
the resulting U.S. Dollar amount into bitcoins at the Bitcoin Index Price, on a daily basis. The rate of the Sponsor&rsquo;s Fee
is subject to the sole discretion of the Sponsor. Payments of the Sponsor&rsquo;s Fee will occur monthly in arrears. To pay the
Sponsor&rsquo;s Fee, the Custodian will, when directed by the Sponsor, (i)&nbsp;withdraw from the Bitcoin Account the number of
bitcoins equal to the accrued but unpaid Sponsor&rsquo;s Fee, determined as described above and (ii)&nbsp;transfer such bitcoins
to an account maintained by the Custodian for 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-indent: 0.5in"></P>

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<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: 0.5in">The Sponsor, from time to time, may temporarily
waive all or a portion of the Sponsor&rsquo;s Fee in its discretion for stated periods of time. Presently, the Sponsor does not
intend to waive any of the Sponsor&rsquo;s Fee. As consideration for its receipt of the Sponsor&rsquo;s Fee, the Sponsor has assumed
the obligation to pay the Sponsor-paid Expenses.</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: 0.5in">The Sponsor has not assumed the obligation
to pay Additional Trust Expenses. If Additional Trust Expenses are incurred, the Sponsor will cause the Custodian to convert bitcoins
into U.S. Dollars or other fiat currencies at the Actual Exchange Rate in such quantity as may be necessary to permit payment of
such Additional Trust Expenses. The number of bitcoins represented by a Share will decline each time the Trust pays the Sponsor&rsquo;s
Fee or any Additional Trust Expenses. See &ldquo;Expenses.&rdquo;</P>

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

<P STYLE="font: small-caps 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 84.95pt; text-indent: -84.95pt"><FONT STYLE="font-variant: normal"><B>Impact
of Trust Expenses on the Trust&rsquo;s Bitcoin Holdings </B></FONT></P>

<P STYLE="font: small-caps 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 84.95pt; text-indent: -84.95pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Trust will pay the Sponsor&rsquo;s Fee
to the Sponsor in bitcoins. In addition, the Trust will sell bitcoins to raise the funds needed for the payment of any Additional
Trust Expenses. The purchase price received as consideration for such sales will be the Trust&rsquo;s sole source of funds to cover
its Additional Trust Expenses. The Trust will not engage in any activity designed to derive a profit from changes in the prices
of bitcoins. Because the number of bitcoins held by the Trust will decrease when bitcoins are used to pay the Sponsor&rsquo;s Fee
or sold to permit the payment of Additional Trust Expenses, the number of bitcoins represented by each Share will decrease over
the life of the Trust. Accordingly, the Shareholders will bear the cost of the Sponsor&rsquo;s Fee and Additional Trust Expenses.
New deposits of bitcoins into the Bitcoin Account that are received in exchange for additional new Baskets issued by the Trust
will not reverse this trend.</P>

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

<P STYLE="font: small-caps 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 84.95pt; text-indent: -84.95pt"><FONT STYLE="font-variant: normal"><B>Hypothetical
Expense Example </B></FONT></P>

<P STYLE="font: small-caps 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 84.95pt; text-indent: -84.95pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The following table illustrates the anticipated
impact of the payment of the Trust&rsquo;s expenses on the fractional number of bitcoins represented by each outstanding Share
for three years. It assumes that the only transfers of bitcoins will be those needed to pay the Sponsor&rsquo;s Fee and that the
price of bitcoins and the number of Shares remain constant during the three-year period covered. The table does not show the impact
of any Additional Trust Expenses. Any Additional Trust Expenses, if and when incurred, will accelerate the decrease in the fractional
number of bitcoins represented by each Share. In addition, the table does not show the effect of any waivers of the Sponsor&rsquo;s
Fee that may be in effect from time to time.</P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" ALIGN="CENTER" STYLE="font: 10pt Times New Roman, Times, Serif; width: 90%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="10" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>Year</B></FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>1</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>2</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>3</B></FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="background-color: #CCEEFF">
    <TD STYLE="vertical-align: top; padding-left: 10pt; text-indent: -10pt; width: 67%"><FONT STYLE="font-size: 10pt">Hypothetical price per bitcoin</FONT></TD>
    <TD STYLE="vertical-align: bottom; width: 1%">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; width: 1%"><FONT STYLE="font-size: 10pt">$</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right; width: 8%"><FONT STYLE="font-size: 10pt">[&nbsp;&nbsp;&nbsp;&nbsp;]</FONT></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom; width: 1%">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; width: 1%">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; width: 1%"><FONT STYLE="font-size: 10pt">$</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right; width: 8%"><FONT STYLE="font-size: 10pt">[&nbsp;&nbsp;&nbsp;&nbsp;]</FONT></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom; width: 1%">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; width: 1%">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; width: 1%"><FONT STYLE="font-size: 10pt">$</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right; width: 8%"><FONT STYLE="font-size: 10pt">[&nbsp;&nbsp;&nbsp;&nbsp;]</FONT></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom; width: 1%">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 10pt; text-indent: -10pt"><FONT STYLE="font-size: 10pt">Sponsor&rsquo;s Fee</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">[&nbsp;&nbsp;&nbsp;&nbsp;]</FONT></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom"><FONT STYLE="font-size: 10pt">%&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">[&nbsp;&nbsp;&nbsp;&nbsp;]</FONT></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom"><FONT STYLE="font-size: 10pt">%&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">[&nbsp;&nbsp;&nbsp;&nbsp;]</FONT></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom"><FONT STYLE="font-size: 10pt">%&nbsp;</FONT></TD></TR>
<TR STYLE="background-color: #CCEEFF">
    <TD STYLE="vertical-align: top; padding-left: 10pt; text-indent: -10pt"><FONT STYLE="font-size: 10pt">Shares of Trust, beginning</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">[&nbsp;&nbsp;&nbsp;&nbsp;]</FONT></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">[&nbsp;&nbsp;&nbsp;&nbsp;]</FONT></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">[&nbsp;&nbsp;&nbsp;&nbsp;]</FONT></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 10pt; text-indent: -10pt"><FONT STYLE="font-size: 10pt">Bitcoins in Trust, beginning</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">[&nbsp;&nbsp;&nbsp;&nbsp;]</FONT></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">[&nbsp;&nbsp;&nbsp;&nbsp;]</FONT></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">[&nbsp;&nbsp;&nbsp;&nbsp;]</FONT></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom">&nbsp;</TD></TR>
<TR STYLE="background-color: #CCEEFF">
    <TD STYLE="vertical-align: top; padding-left: 10pt; text-indent: -10pt"><FONT STYLE="font-size: 10pt">Hypothetical value of bitcoins in Trust</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 10pt">$</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">[&nbsp;&nbsp;&nbsp;&nbsp;]</FONT></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 10pt">$</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">[&nbsp;&nbsp;&nbsp;&nbsp;]</FONT></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 10pt">$</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">[&nbsp;&nbsp;&nbsp;&nbsp;]</FONT></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 10pt; text-indent: -10pt"><FONT STYLE="font-size: 10pt">Beginning Bitcoin Holdings of the Trust</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 10pt">$</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">[&nbsp;&nbsp;&nbsp;&nbsp;]</FONT></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 10pt">$</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">[&nbsp;&nbsp;&nbsp;&nbsp;]</FONT></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 10pt">$</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">[&nbsp;&nbsp;&nbsp;&nbsp;]</FONT></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom">&nbsp;</TD></TR>
<TR STYLE="background-color: #CCEEFF">
    <TD STYLE="vertical-align: top; padding-left: 10pt; text-indent: -10pt"><FONT STYLE="font-size: 10pt">Bitcoins to be delivered to cover the Sponsor&rsquo;s Fee</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">[&nbsp;&nbsp;&nbsp;&nbsp;]</FONT></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">[&nbsp;&nbsp;&nbsp;&nbsp;]</FONT></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">[&nbsp;&nbsp;&nbsp;&nbsp;]</FONT></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 10pt; text-indent: -10pt"><FONT STYLE="font-size: 10pt">Bitcoins in Trust, ending</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">[&nbsp;&nbsp;&nbsp;&nbsp;]</FONT></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">[&nbsp;&nbsp;&nbsp;&nbsp;]</FONT></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">[&nbsp;&nbsp;&nbsp;&nbsp;]</FONT></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom">&nbsp;</TD></TR>
<TR STYLE="background-color: #CCEEFF">
    <TD STYLE="vertical-align: top; padding-left: 10pt; text-indent: -10pt"><FONT STYLE="font-size: 10pt">Ending Bitcoin Holdings of the Trust</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 10pt">$</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">[&nbsp;&nbsp;&nbsp;&nbsp;]</FONT></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 10pt">$</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">[&nbsp;&nbsp;&nbsp;&nbsp;]</FONT></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 10pt">$</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">[&nbsp;&nbsp;&nbsp;&nbsp;]</FONT></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 10pt; text-indent: -10pt"><FONT STYLE="font-size: 10pt">Ending Bitcoin Holdings per Share</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 10pt">$</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">[&nbsp;&nbsp;&nbsp;&nbsp;]</FONT></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 10pt">$</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">[&nbsp;&nbsp;&nbsp;&nbsp;]</FONT></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 10pt">$</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">[&nbsp;&nbsp;&nbsp;&nbsp;]</FONT></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom">&nbsp;</TD></TR>
<TR STYLE="background-color: #CCEEFF">
    <TD STYLE="vertical-align: top; padding-left: 10pt; text-indent: -10pt"><FONT STYLE="font-size: 10pt">Hypothetical price per bitcoin</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 10pt">$</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">[&nbsp;&nbsp;&nbsp;&nbsp;]</FONT></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 10pt">$</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">[&nbsp;&nbsp;&nbsp;&nbsp;]</FONT></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 10pt">$</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">[&nbsp;&nbsp;&nbsp;&nbsp;]</FONT></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

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


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"> <B><A NAME="valkyries04272121a007-a" TITLE="USE OF THE BITCOIN US SETTLEMENT PRICE"></A>USE
OF THE CF BITCOIN US SETTLEMENT PRICE</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: left;  text-indent: 0.5in"> The Trust will
determine the Bitcoin Index Price and value its Shares daily based on the value of bitcoin as reflected by the Index. The
Index is calculated daily and aggregates the notional value of bitcoin trading activity across major bitcoin spot exchanges.
The Index currently uses substantially the same methodology as the CME CF Bitcoin Reference Rate (&ldquo;BRR&rdquo;),
including utilizing the same constituent Bitcoin Exchanges, which is the underlying rate to determine settlement of CME
bitcoin futures contracts, except that the Index is calculated as of 4 p.m. ET, whereas the BRR is calculated as of 4 p.m.
London time. The Index is designed based on the IOSCO Principals for Financial Benchmarks. The administrator of the Index is
CF Benchmarks Ltd. (the &ldquo;Benchmark Administrator&rdquo;). The Trust also uses the Bitcoin Index Price to calculate its &ldquo;Bitcoin Holdings,&rdquo; which is the aggregate U.S. Dollar value
of bitcoins in the Trust, based on the Bitcoin Index Price, less its liabilities and expenses. &ldquo;Bitcoin Holdings per Share&rdquo;
is calculated by dividing Bitcoin Holdings by the number of Shares currently outstanding. Bitcoin Holdings and Bitcoin Holdings per Share
are not measures calculated in accordance with GAAP. Bitcoin Holdings is not intended to be a substitute for the Trust&rsquo;s NAV calculated
in accordance with GAAP, and Bitcoin Holdings per Share is not intended to be a substitute for the Trust&rsquo;s NAV per Share calculated
in accordance with GAAP. </P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left;  text-indent: 0.5in"> The Index was created to facilitate financial
products based on bitcoin. It serves as a once-a-day benchmark rate of the U.S. dollar price of bitcoin (USD/BTC), calculated
as of 4 p.m. ET. The Index, which has been calculated and published since January 27, 2021, aggregates the trade flow of several
Bitcoin Exchanges, during an observation window between 3:00 p.m. and 4:00 p.m. ET into the U.S. dollar price of one bitcoin at
4:00 p.m. ET. Specifically, the Index is calculated based on the &ldquo;Relevant Transactions&rdquo; (as defined below) of all
of its constituent Bitcoin Exchanges, which are currently Bitstamp, Coinbase, Kraken, itBit and Gemini (the &ldquo;Constituent
Platforms&rdquo;), as follows: </P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt/14pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="text-align: left; width: 0.50in"></TD><TD STYLE="text-align: left; width: 0.25in"> <FONT STYLE="font-family: Symbol">&#183;</FONT> </TD><TD STYLE="text-align: left"> All
                                         Relevant Transactions are added to a joint list, recording the time of execution, trade
                                         price and size for each transaction. </TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt/14pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="text-align: left; width: 0.50in"></TD><TD STYLE="text-align: left; width: 0.25in"> <FONT STYLE="font-family: Symbol">&#183;</FONT> </TD><TD STYLE="text-align: left"> The
                                         list is partitioned by timestamp into 12 equally-sized time intervals of 5 (five) minute
                                         length. </TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt/14pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="text-align: left; width: 0.50in"></TD><TD STYLE="text-align: left; width: 0.25in"> <FONT STYLE="font-family: Symbol">&#183;</FONT> </TD><TD STYLE="text-align: left"> For
                                         each partition separately, the volume-weighted median trade price is calculated from
                                         the trade prices and sizes of all Relevant Transactions, i.e., across all Constituent
                                         Platforms. A volume-weighted median differs from a standard median in that a weighting
                                         factor, in this case trade size, is factored into the calculation. </TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt/14pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="text-align: left; width: 0.50in"></TD><TD STYLE="text-align: left; width: 0.25in"> <FONT STYLE="font-family: Symbol">&#183;</FONT> </TD><TD STYLE="text-align: left"> The
                                         Index is then determined by the equally-weighted average of the volume medians of all
                                         partitions. </TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left;  text-indent: 0.5in"> The Index does not include any futures
prices in its methodology. A &ldquo;Relevant Transaction&rdquo; is any cryptocurrency versus U.S. dollar spot trade that occurs
during the observation window between 3:00 p.m. and 4:00 p.m. Eastern time on a Constituent Platform in the BTC/USD pair that
is reported and disseminated by a Constituent Platform through its publicly available API and observed by the Benchmark Administrator. </P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left;  text-indent: 0.5in"> An oversight function is implemented by
the Benchmark Administrator in seeking to ensure that the Index is administered through the Benchmark Administrator&rsquo;s codified
policies for Index integrity. </P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left;  text-indent: 0.5in"> The Sponsor believes that the use of the
Index is reflective of a reasonable valuation of the average spot price of bitcoin and that resistance to manipulation is a priority
aim of its design methodology. The methodology: (i) takes an observation period and divides it into equal partitions of time;
(ii) then calculates the volume-weighted median of all transactions within each partition; and (iii) the value is determined from
the arithmetic mean of the volume-weighted medians, equally weighted. By employing the foregoing steps, the Index thereby seeks
to ensure that transactions in bitcoin conducted at outlying prices do not have an undue effect on the value of a specific partition,
large trades or clusters of trades transacted over a short period of time will not have an undue influence on the index level,
and the effect of large trades at prices that deviate from the prevailing price are mitigated from having an undue influence on
the benchmark level. </P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left;  text-indent: 0.5in"> In addition, the Sponsor notes that an
oversight function is implemented by the Benchmark Administrator in seeking to ensure that the Index is administered through codified
policies for Index integrity. </P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left;  text-indent: 0.5in"> Index data and the description of the Index
are based on information made publicly available by the Benchmark Administrator on its website at https://www.cfbenchmarks.com.
<B>None of the information on the Benchmark Administrator&rsquo;s website is incorporated by reference into this prospectus.</B> </P>

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



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left;  text-indent: 0.5in"> The below table reflects the average daily
trading volume (in thousands of USD) of each of the Bitcoin Exchanges included in the Index as of [ ] using data observed by the
Benchmark Administrator through the public APIs of the Bitcoin Exchanges from January 27, 2021 to [ ]: </P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" ALIGN="CENTER" STYLE="width: 90%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left; width: 67%; border: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt"><P STYLE="text-align: left; font: 10pt Times New Roman, Times, Serif; margin: 0"> <B>Bitcoin Exchanges Included in the Index</B> </P>
        <P STYLE="text-align: left; font: 10pt Times New Roman, Times, Serif; margin: 0"> <B>As of [ ]</B> </P></TD>
    <TD STYLE="border-top: Black 1pt solid; border-right: Black 1pt solid; border-bottom: Black 1pt solid; text-align: center; width: 33%; padding-right: 5.4pt; padding-left: 5.4pt"> <B>Average
    Daily Volume<BR>
    (in thousands of USD)</B> </TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left; border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt"> Bitstamp </TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"> $[&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;] </TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left; border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt"> Coinbase </TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"> $[&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;] </TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left; border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt"> Gemini </TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"> $[&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;] </TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left; border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt"> itBit </TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"> $[&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;] </TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left; border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt"> Kraken </TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"> $[&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;] </TD></TR>
</TABLE>
<P STYLE="text-align: left; font: 10pt Times New Roman, Times, Serif; margin: 0"> &nbsp; </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left;  text-indent: 0.5in"> The domicile, regulation and legal compliance
of the Bitcoin Exchanges included in the Index varies. Information regarding each Bitcoin Exchange may be found, where available,
on the websites for such Bitcoin Exchanges and public registers for compliance with local regulations, among other places. </P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt; margin-left: 0pt; text-indent: 0.5in;"> <B>CF
BENCHMARKS LTD. DATA IS USED UNDER LICENSE AS A SOURCE OF INFORMATION FOR THE TRUST&rsquo;S PRODUCTS. CF BENCHMARKS LTD., ITS
AGENTS AND LICENSORS HAVE NO OTHER CONNECTION TO THE TRUST&rsquo;S PRODUCTS AND SERVICES AND DOES NOT SPONSOR, ENDORSE, RECOMMEND
OR PROMOTE ANY OF THE TRUST&rsquo;S PRODUCTS OR SERVICES. CF BENCHMARKS LTD., ITS AGENTS AND LICENSORS HAVE NO OBLIGATION OR LIABILITY
IN CONNECTION WITH THE TRUST&rsquo;S PRODUCTS AND SERVICES. CF BENCHMARKS LTD., ITS AGENTS AND LICENSORS DO NOT GUARANTEE THE
ACCURACY AND/OR THE COMPLETENESS OF ANY INDEX LICENSED TO THE TRUST AND SHALL NOT HAVE ANY LIABILITY FOR ANY ERRORS, OMISSIONS,
OR INTERRUPTIONS THEREIN.</B> </P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"> <B><A NAME="valkyries04272121a008"></A>CALCULATION
OF NAV</B> </P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"> The Trust&rsquo;s NAV per Share is calculated
by: </P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt/14pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="text-align: left; width: 0.50in"></TD><TD STYLE="text-align: left; width: 0.25in"> <FONT STYLE="font-family: Symbol">&#183;</FONT> </TD><TD STYLE="text-align: left"> Taking
                                         the current market value of its total assets; </TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt/14pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="text-align: left; width: 0.50in"></TD><TD STYLE="text-align: left; width: 0.25in"> <FONT STYLE="font-family: Symbol">&#183;</FONT> </TD><TD STYLE="text-align: left"> subtracting
                                         any liabilities; and </TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt/14pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="text-align: left; width: 0.5in"></TD><TD STYLE="text-align: left; width: 0.25in"> <FONT STYLE="font-family: Symbol">&#183;</FONT> </TD><TD STYLE="text-align: left"> dividing
                                         that total by the total number of outstanding Shares. </TD></TR></TABLE>

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


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left; text-indent: 0.5in"> The Administrator calculates the NAV of
the Trust once each Business Day. The NAV for a normal trading day will be released after 4:00 p.m. ET. Trading during the core
trading session on the NYSE Arca typically closes at 4:00 p.m. ET. However, NAVs are not officially struck until later in the
day. The pause between 4:00 p.m. ET and 5:30 p.m. ET (or later) provides
an opportunity to algorithmically detect, flag, investigate, and correct unusual pricing should it occur. </P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left; text-indent: 0.5in"> The Sponsor will publish the Bitcoin Index
Price, the Trust&rsquo;s Bitcoin Holdings and the Bitcoin Holdings per Share on the Trust&rsquo;s website as soon as practicable
after its determination. If the Trust&rsquo;s Bitcoin Holdings and Bitcoin Holdings per Share have been calculated using a price
per bitcoin other than the Bitcoin Index Price for such Evaluation Time, the publication on the Trust&rsquo;s website will note
the valuation methodology used and the price per bitcoin resulting from such calculation. </P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left; text-indent: 0.5in"> The Sponsor will publish the NAV, the NAV
per Share, the Bitcoin Index Price and the Trust&rsquo;s bitcoin holdings at www.valkyriefunds.io as soon as practicable after
their determination and availability. </P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left; text-indent: 0.5in"> To the extent there are any determinations that the Sponsor
and the Administrator make, such determinations will be made in good faith upon the basis of, and neither the Sponsor nor the
Administrator will be liable for any errors contained in, information reasonably available. Neither the Sponsor nor the Administrator
will be liable to The Depository Trust Company (&ldquo;DTC&rdquo;), Authorized Participants, the Shareholders or any other person
for errors in judgment. The Trust&rsquo;s daily activities are generally not reflected in the NAV determined for the Business
Day on which the transactions are effected (the trade date), but rather on the following Business Day. </P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: .5in">In addition, in order to provide updated
information relating to the Trust for use by Shareholders and market professionals, [&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;] 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 using the prior day&rsquo;s closing NAV per Share of the Trust as a base and updating that value
throughout the trading day to reflect changes in the most recently reported price level of the CME CF Bitcoin Real&nbsp;&mdash;&nbsp;Time
Index (&ldquo;BRTI&rdquo;), as reported by CME Group, Bloomberg, L.P. or another reporting service. as reported by Bloomberg, L.P.
or another reporting service. The CME CF BRTI is calculated in real time based on the Relevant Order Books of all Constituent Platforms
(defined below). A &ldquo;Relevant Order Book&rdquo; is the universe of the currently unmatched limit orders to buy or sell in
the BTC/USD pair that is reported and disseminated by CF Benchmarks Ltd., as the CME CF BRTI calculation agent.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: .5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: .5in">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. EST to 4:00
p.m. EST. [&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;] 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: 0pt 0; text-indent: .5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: .5in">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: 0pt 0; text-indent: .5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: .5in">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: 0pt 0; text-indent: .5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: .5in">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.<B>&nbsp;</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-indent: 0.5in"></P>

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<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: center"><B><A NAME="valkyries04272121a009"></A>DESCRIPTION OF THE 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-indent: 0.5in">The Trust is a Delaware Statutory Trust
that was formed on January 20, 2021 by the filing of the Certificate of Trust with the Delaware Secretary
of State in accordance with the provisions of the Delaware Statutory Trust Act (&ldquo;DSTA&rdquo;). The Trust operates pursuant
to 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-indent: 0.5in">The Trust holds only bitcoins and is expected
from time to time to issue Baskets in exchange for deposits of bitcoins and to distribute bitcoins in connection with redemptions
of Baskets. The investment objective of the Trust is for the Shares to reflect the performance of the value of bitcoins as represented
by the Index, less the Trust&rsquo;s liabilities and expenses. The Sponsor believes that, for many investors, the Shares will represent
a cost-effective and convenient investment relative to a direct, outright investment in bitcoins.</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: 0.5in">The Shares represent units of fractional
undivided beneficial interest in, and ownership of, the Trust. The Trust is passive and is not managed like a corporation or an
active investment vehicle. The bitcoins held by the Custodian on behalf of the Trust will be transferred out of the Bitcoin Account
only in the following circumstances: transferred to pay the Sponsor&rsquo;s Fee, distributed to Authorized Participants or Liquidity
Providers, as applicable, in connection with the redemption of Baskets, transferred to be sold on an as-needed basis to pay Additional
Trust Expenses, sold on behalf of the Trust in the event the Trust terminates and liquidates its assets or as otherwise required
by law or regulation. Assuming that the Trust is treated as a grantor trust for U.S. federal income tax purposes, each delivery
or sale of bitcoins to pay the Sponsor&rsquo;s Fee or any Additional Trust Expenses will be a taxable event for Shareholders. See
&ldquo;U.S. Federal Income Tax Consequences&mdash;Tax Consequences to U.S. Holders.&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-indent: 0.5in">The Trust is not registered as an investment
company under the Investment Company Act and the Sponsor believes that the Trust is not required to register under the Investment
Company Act. The Trust will not hold or trade in commodity futures contracts or other derivative contracts regulated by the CEA,
as administered by the CFTC. 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 as a commodity pool operator or a commodity trading adviser in connection
with the operation of the Trust.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"> The Trust expects to create and redeem
Shares from time to time but only in Baskets. A Basket equals a block of 50,000 Shares. The number of outstanding Shares is expected
to increase and decrease from time to time as a result of the creation and redemption of Baskets. The creation and redemption
of Baskets require the delivery to the Trust, or the distribution by the Trust, of the number of bitcoins represented by the Baskets
being created or redeemed. The creation and redemption of a Basket will be made only in exchange for the delivery to the Trust,
or the distribution by the Trust, of the number of whole and fractional bitcoins represented by each Basket being created or redeemed,
the number of which is determined by dividing the number of bitcoins owned by the Trust at 4:00 p.m., New York time, on the trade
date of a creation or redemption order, as adjusted for the number of whole and fractional bitcoins constituting accrued but unpaid
fees and expenses of the Trust, by the number of Shares outstanding at such time (the quotient so obtained calculated to one one-hundred-millionth
of one bitcoin), and multiplying such quotient by 50,000. [Each Share in the initial Baskets represented approximately [&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;]
bitcoin.] The number of bitcoins required to create a Basket, or to be delivered upon a redemption of a Basket, will gradually
decrease over time due to the transfer or sale of the Trust&rsquo;s bitcoins to pay the Sponsor&rsquo;s Fee and any Additional
Trust Expenses. The Trust will not accept or distribute cash in exchange for Baskets, other than upon its dissolution. See &ldquo;Plan
of Distribution.&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-indent: 0.5in"> The Administrator will determine the
Trust&rsquo;s Bitcoin Holdings (which is the aggregate U.S. Dollar value, based on the Bitcoin Index Price, of the Trust&rsquo;s
bitcoins less its liabilities) on each day the Shares trade on NYSE Arca as of 4:00 p.m., New York time, or as soon thereafter
as practicable. The Administrator will also determine the Bitcoin Holdings per Share, which equals the Trust&rsquo;s Bitcoin Holdings
divided by the number of outstanding Shares. Each Business Day, the Sponsor will publish the Trust&rsquo;s Bitcoin Holdings and
Bitcoin Holdings per Share on the Trust&rsquo;s website, https://www.valkyriefunds.io, as soon as practicable after the Trust&rsquo;s
Bitcoin Holdings and Bitcoin Holdings per Share have been determined by the Administrator. See &ldquo;Use of the CF Bitcoin US
Settlement Price.&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-indent: 0.5in">The Trust&rsquo;s assets will consist solely
of bitcoins. Each Share will represent a proportional interest, based on the total number of Shares outstanding, in the bitcoins
held by the Trust, less the Trust&rsquo;s liabilities (which include accrued but unpaid fees and expenses). The Sponsor expects
that the market trading price of the Shares will fluctuate over time in response to the market prices of bitcoins. In addition,
the Sponsor expects that the trading price of the Shares will reflect the estimated accrued but unpaid expenses 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-indent: 0.5in">Investors may obtain on a 24-hour basis
bitcoin pricing information from various financial information service providers or Bitcoin Network information sites such as Tradeblock.com
or bitcoincharts.com. Current Bitcoin Index Prices are also generally available with bid/ask spreads directly from Bitcoin Exchanges.
As of the date of this prospectus, the constituent Bitcoin Exchanges of the Index were Bitstamp, Coinbase, Kraken, itBit and Gemini.
Market prices for the Shares will be available from a variety of sources, including brokerage firms, information websites and other
information service providers. In addition, on each business day the Trust&rsquo;s website will provide pricing information for
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-indent: 0.5in">The Trust has no fixed termination date.</P>

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


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

<P STYLE="font: small-caps bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><A NAME="valkyries04272121a010"></A>THE SPONSOR</P>

<P STYLE="font: small-caps bold 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-indent: 0.5in"> The Trust&rsquo;s Sponsor is
Valkyrie Digital Assets LLC, a Delaware limited liability company formed on December 7, 2020 and a wholly owned subsidiary by Valkyrie
Investments Inc. The Sponsor&rsquo;s principal place of business is 100 Crescent Court Floor 7, Dallas, Texas 75201 and its
telephone number is (202)&nbsp;854-1343. Under the Delaware Limited Liability Company Act and the governing documents of the
Sponsor, Valkyrie Investments Inc., the sole member of the Sponsor, is not responsible for the debts, obligations and
liabilities of the Sponsor solely by reason of being the sole member 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: small-caps 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 84.95pt; text-indent: -84.95pt"><FONT STYLE="font-variant: normal"><B>The
Sponsor&rsquo;s Role </B></FONT></P>

<P STYLE="font: small-caps 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 84.95pt; text-indent: -84.95pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Sponsor arranged for the creation of
the Trust and will arrange for the registration of the Shares for their public offering in the United States and their listing
on NYSE Arca. As consideration for its receipt of the Sponsor&rsquo;s Fee from the Trust, the Sponsor is obligated to pay the Sponsor-paid
Expenses. The Sponsor also paid the costs of the Trust&rsquo;s organization and will pay for the costs of the initial sale 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-indent: 0.5in">The Sponsor is generally responsible for
the administration of the Trust under the provisions of the Trust Agreement. This includes (i)&nbsp;selecting and monitoring the
Trust&rsquo;s Service Providers and from time to time engaging additional, successor or replacement Service Providers and (ii)&nbsp;upon
dissolution of the Trust, distributing the Trust&rsquo;s remaining bitcoins or the cash proceeds of the sale of the Trust&rsquo;s
remaining bitcoins to the owners of record 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-indent: 0.5in">The Sponsor may transfer all or substantially
all of its assets to an entity that carries on the business of the Sponsor if at the time of the transfer the successor assumes
all of the obligations of the Sponsor under the Trust Agreement. In such an event, the Sponsor will be relieved of all further
liability under 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-indent: 0.5in">The Sponsor&rsquo;s Fee is paid by the Trust
to the Sponsor as compensation for services performed under the Trust Agreement and for the Sponsor&rsquo;s agreement to pay the
Sponsor-paid Expenses. See &ldquo;Activities of the Trust&mdash;Trust Expenses.&rdquo;</P>

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 63.35pt 0pt 0;text-indent: 0in">[Marketing
Agent Agreement</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 63.35pt 0pt 0;text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Sponsor has entered into a Marketing
Agent Agreement with an independent third party to assist the Sponsor in distributing the Shares, developing an ongoing marketing
plan for the Trust, preparing marketing materials regarding the Shares, including the content on the Trust&rsquo;s website, https://www.valkyriefunds.io,
executing the marketing plan for the Trust and providing strategic and tactical research on the global bitcoin market. For more
information about the distribution of the Shares, see &ldquo;Plan of Distribution.&rdquo;]</P>

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 63.35pt 0pt 0;text-indent: 0in">Index
License Agreement</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 63.35pt 0pt 0;text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Index Provider and the Sponsor have
entered into an index license agreement (the &ldquo;Index License Agreement&rdquo;) governing the Sponsor&rsquo;s use of the Index
for calculation of the Bitcoin Index Price. The Index Provider may adjust the calculation methodology for the Index without notice
to, or consent of, the Trust or its Shareholders. Under the Index License Agreement, the Sponsor pays a monthly fee and a fee based
on the Trust&rsquo;s Bitcoin Holdings to the Index Provider in consideration of its license to the Sponsor of Index-related intellectual
property.</P>

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 63.35pt 0pt 0;text-indent: 0in">Management
of the Sponsor</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 63.35pt 0pt 0;text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Under the Trust Agreement, all management
functions of the Trust have been delegated to and are conducted by the Sponsor, its agents and its affiliates, including without
limitation, the Custodian and its agents. As officers of the Sponsor, Leah Wald, the principal executive officer of the Sponsor,
and Steven McClurg, the principal investment officer of the Sponsor, may take certain actions and execute certain agreements and
certifications for the Trust, in their capacity as the principal officers 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; "><B><I>Leah Wald, Chief Executive Officer</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">Leah Wald is an economist with an expertise in asset management
focused on value investing. As a direct report to the CEO of Vital Financial, Wald spearheaded investment strategies for multi-billion
dollar asset managers on global macro strategy. Formerly, she was a Partner at Lucid Investment Strategies, an asset management
firm specialized in cryptocurrency investments. Wald worked at the World Bank Group and co-founded Veterati, a mentorship platform
assisting unemployed and transitioning US veterans to secure meaningful employment. Wald is a contributing writer for Forbes and
co-authored the book Hyperwave Theory: The Rogue Waves of Financial Markets. Wald has a BA in International Political Economy and
a MSc in Management specialized in International Business from IE Business School. Wald studied political economics abroad at multiple
universities and served as a research assistant to the Director of University of Cambridge&rsquo;s Lauterpacht Centre for International
Law where she researched and coded algorithms for a dataset examining the role of arbitrator background for outcomes in international
investment arbitration.</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>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Steven McClurg, Chief Investment Officer</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-indent: 0.5in">Steven McClurg has considerable finance and fintech experience. Most recently, Mr. McClurg founded Theseus Capital, a blockchain-powered
asset management platform, followed by joining blockchain-focused merchant bank, Galaxy Digital, where he continued as Managing Director,
building their asset management and public funds businesses. Most relevant, Mr. McClurg was a Managing Director at Guggenheim Partners,
where he was a portfolio manager and responsible for portfolio construction and strategy for fixed income and private equity. He also
has experience in leadership roles in technology companies such as Electronic Arts. Mr. McClurg holds a Master of Science and an MBA from
Pepperdine University, where he has served as an adjunct professor.</P>

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

<P STYLE="font: small-caps bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><A NAME="valkyries04272121a011"></A>THE TRUSTEE</P>

<P STYLE="font: small-caps bold 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-indent: 0.5in">Delaware Trust Company, a Delaware corporation,
serves as Delaware trustee of the Trust under the Trust Agreement. The Trustee has its principal office at 251 Little Falls Drive,
Wilmington, DE 19808. The Trustee is unaffiliated with the Sponsor. A copy of the Trust Agreement is available for inspection at
the Trustee&rsquo;s principal office identified above.</P>

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 63.35pt 0pt 0;text-indent: 0in">The
Trustee&rsquo;s Role</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 63.35pt 0pt 0;text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">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&nbsp;3807(a) of the
DSTA that the Trust have at least one trustee with a principal place of business in the State of Delaware. The duties of the Trustee
will be limited to (i)&nbsp;accepting legal process served on the Trust in the State of Delaware and (ii)&nbsp;the execution of
any certificates required to be filed with the Delaware Secretary of State which the Delaware Trustee is required to execute under
the DSTA. To the extent that, at law or in equity, the Trustee has duties (including fiduciary duties) and liabilities relating
thereto to the Trust or the Shareholders, such duties and liabilities will be replaced by the duties and liabilities of the Trustee
expressly set forth in the Trust Agreement. The Trustee will have no obligation to supervise, nor will it be liable for, the acts
or omissions of the Sponsor, Transfer Agent, Administrator, Custodian or any other Person.</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: 0.5in">Neither the Trustee, either in its capacity
as trustee on in its individual capacity, nor any director, officer or controlling person of the Trustee is, or has any liability
as, the issuer, director, officer or controlling person of the issuer of Shares. The Trustee&rsquo;s liability in connection with
the issuance and sale of Shares is limited solely to the express obligations of the Trustee as set forth in 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-indent: 0.5in">The Trustee has not prepared or verified,
and will not be responsible or liable for, any information, disclosure or other statement in this Prospectus or in any other document
issued or delivered in connection with the sale or transfer of the Shares. The Trust Agreement provides that the Trustee will not
be responsible or liable for the genuineness, enforceability, collectability, value, sufficiency, location or existence of any
of the bitcoins or other assets of the Trust. See &ldquo;Description of the Trust Documents&mdash;Description of the Trust Agreement.&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-indent: 0.5in">The Trustee is permitted to resign upon
at least 180 days&rsquo; notice to the Trust. The Trustee will be compensated by the Sponsor and indemnified by the Sponsor and
the Trust against any expenses it incurs relating to or arising out of the formation, operation or termination of the Trust, or
the performance of its duties pursuant to the Trust Agreement except to the extent that such expenses result from gross negligence,
willful misconduct or bad faith of the Trustee. The Sponsor has the discretion to replace the Trustee.</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: 0.5in">The Trustee&rsquo;s fees and expenses under
the Trust Agreement will be paid by the Sponsor.</P>

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

<P STYLE="font: small-caps bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><A NAME="valkyries04272121a012"></A>THE TRANSFER AGENT</P>

<P STYLE="font: small-caps bold 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-indent: 0.5in"> U.S. Bancorp Fund Services, LLC will
serve as the Transfer Agent of the Trust under the Trust Agreement and pursuant to the terms and provisions of the Transfer Agency
and Service Agreement. The Transfer Agent has its principal office at [&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;]. </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: 0.5in"></P>

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 63.35pt 0pt 0;text-indent: 0in">The
Transfer Agent&rsquo;s Role</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 63.35pt 0pt 0;text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Transfer Agent holds the Shares in book-entry
form. The Administrator directs the Transfer Agent to credit or debit the number of Creation Baskets or Redemption Baskets to the
applicable Authorized Participant. The Transfer Agent will issue or cancel each Authorized Participant&rsquo;s Creation Basket
or Redemption Basket, as applicable. The Transfer Agent will also assist with the preparation of Shareholders&rsquo; account and
tax statements.</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: 0.5in">The Sponsor will indemnify and hold harmless
the Transfer Agent, and the Transfer Agent will incur no liability for the refusal, in good faith, to make transfers which it,
in its judgment, deems improper or unauthorized.</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: 0.5in">The Transfer Agent Fee is a Sponsor-paid
Expense to be assumed and paid by the Sponsor.</P>

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

<P STYLE="font: small-caps bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><A NAME="valkyries04272121a013"></A>THE ADMINISTRATOR</P>

<P STYLE="font: small-caps bold 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-indent: 0.5in"> U.S. Bancorp Fund Services, LLC will
serve as the Administrator of the Trust under the Trust Agreement and pursuant to the terms and provisions of the Trust Administration
and Accounting Agreement. The Administrator has its principal office at [&nbsp;&nbsp;&nbsp;&nbsp;]. </P>

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 63.35pt 0pt 0;text-indent: 0in">The
Administrator&rsquo;s Role</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 63.35pt 0pt 0;text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Pursuant to the Trust Administration and
Accounting Agreement, the Administrator is generally responsible for the day-to-day administration of the Trust. The responsibilities
of the Administrator include (i) preparing and providing periodic reports on behalf of the Trust to investors, (ii)&nbsp;processing
orders to create and redeem Baskets and coordinating the processing of such orders with the Custodian, the Transfer Agent and DTC,
(iii)&nbsp;publishing the Trust&rsquo;s Bitcoin Holdings and Bitcoin Holdings per Share each business day at 4:00 p.m., New York
time, or as soon thereafter as practicable and (iv) instructing the Custodian to transfer the Trust&rsquo;s bitcoins as needed
to pay the Sponsor&rsquo;s Fee and any Additional Trust Expenses.</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: 0.5in">The Trust will indemnify the Administrator,
and the Administrator will incur no liability for its reliance upon (i)&nbsp;any law, act, regulation or interpretation of the
same even though the same may thereafter have been altered, changed, amended or repealed, (ii)&nbsp;the Trust&rsquo;s offering
materials or documents (excluding information provided by the Administrator), (iii)&nbsp;any instructions or (iv) any opinion of
legal counsel for the Trust or the Administrator, or arising out of transactions or other activities of the Trust which occurred
prior to the commencement of the Trust Administration and Accounting 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-indent: 0.5in">The Administrator will also agree to facilitate
the Conversion Procedures on behalf of Authorized Participants, whereby the Authorized Participants can purchase or sell bitcoins
through a Liquidity Provider. See &ldquo;Description of Creation and Redemption of Shares&rdquo; for further discussion of the
Administrator&rsquo;s role in the Conversion Procedures.</P>

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

<P STYLE="font: small-caps bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><A NAME="valkyries04272121a014"></A>AUTHORIZED PARTICIPANTS</P>

<P STYLE="font: small-caps bold 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-indent: 0.5in">An Authorized Participant must enter into
a &ldquo;Participant Agreement&rdquo; with the Sponsor and the Trust to govern its placement of orders to create and redeem Baskets.
The Participant Agreement sets forth the procedures for the creation and redemption of Baskets and for the delivery of bitcoins
required for creations and redemptions. The Participant Agreement also provides the Sponsor and the Administrator with the authority
to terminate the relationship with an Authorized Participant if the Sponsor or Administrator determines that an Authorized Participant
does not to comply with the regulatory and registration requirements promulgated by FinCEN or other state authorities.</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: 0.5in">Each Authorized Participant must (i)&nbsp;be
a registered broker-dealer, (ii)&nbsp;enter into a Participant Agreement with the Sponsor, the Administrator, the Marketing Agent
and Liquidity Providers and (iii)&nbsp;in the case of the creation or redemption of Baskets that do not use the Conversion Procedures,
own an Authorized Participant Self-Administered Account.</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: 0.5in">A list of the current Authorized Participants
can be obtained from the Sponsor. The Trust has engaged [&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;] as Authorized Participants. Additional
Authorized Participants may be added at any time, subject to the discretion 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: small-caps bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><A NAME="valkyries04272121a015"></A>LIQUIDITY PROVIDERS</P>

<P STYLE="font: small-caps bold 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-indent: 0.5in">In addition to setting forth the procedures
for the delivery of bitcoins required for creations and redemptions, the Participant Agreement also sets forth the procedures for
the delivery of bitcoins required for creations and redemptions in cash, as facilitated by the Liquidity Provider.</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: 0.5in"></P>

<!-- Field: Page; Sequence: 53; Value: 1 -->
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<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: 0.5in">Each Liquidity Provider must (i) enter into
a Participant Agreement with the Sponsor, the Trust, the Marketing Agent and the Authorized Participant and (ii) own a bitcoin
wallet address that is recognized by the Custodian as belonging to a Liquidity Provider (a &ldquo;Liquidity Provider Account&rdquo;).
A list of the current Liquidity Providers can be obtained from the Sponsor. [As of the date of this prospectus, [&nbsp;&nbsp;&nbsp;&nbsp;]
is the only acting Liquidity Provider.] The Sponsor intends to engage additional Liquidity Providers who are unaffiliated with
the Trust in the future.</P>

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

<P STYLE="font: small-caps bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><A NAME="valkyries04272121a016"></A>THE CUSTODIAN</P>

<P STYLE="font: small-caps bold 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-indent: 0.5in">Coinbase Custody Trust Company, LLC is the
Custodian of the Trust and has entered into a Custodial Services Agreement with the Trust (as amended, the &ldquo;Custodial Services
Agreement&rdquo;). The 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 Investment Advisers Act of 1940, as amended. The Custodian is authorized to serve as the Trust&rsquo;s
custodian under the Trust Agreement and pursuant to the terms and provisions of the Custodial Services Agreement. The Custodian
has its principal office at 200 Park Avenue South, Suite 1208, New York, NY 10003.</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: 0.5in">The Custodian stores the Trust&rsquo;s bitcoin
holdings and, from time to time, cash in the Bitcoin Account. In connection with the creation and redemption of Creation Units,
the Custodian will facilitate the transfer of Creation Bitcoin Amounts and Redemption Bitcoin Amounts, as applicable, among the
Bitcoin Account and the Authorized Participant Self-Administered Account. The Custodian is responsible for administering the Bitcoin
Account pursuant to the Custodial Services Agreement, and administered each Authorized Participant Self-Administered Account pursuant
to a separate custodial agreement with the applicable Authorized Participant.</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: 0.5in">If the Custodian resigns in its capacity
as custodian, the Sponsor may appoint an additional or replacement custodian and enter into a custody agreement on behalf of the
Trust with such custodian. Furthermore, the Sponsor and the Trust may use Bitcoin custody services or similar services provided
by entities other than Coinbase Custody Trust Company, LLC at any time without prior notice to Coinbase Custody Trust Company,
LLC</P>

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

<P STYLE="font: small-caps bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><A NAME="valkyries04272121a017"></A>CONFLICTS OF INTEREST</P>

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 63.35pt 0pt 0;text-indent: 0in">General</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 63.35pt 0pt 0;text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Sponsor has not established formal procedures
to resolve all potential conflicts of interest. Consequently, investors may be dependent on the good faith of the respective parties
subject to such conflicts to resolve them equitably. Although the Sponsor attempts to monitor these conflicts, it is extremely
difficult, if not impossible, for the Sponsor to ensure that these conflicts do not, in fact, result in adverse consequences to
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: 0.5in">Prospective investors should be aware that
the Sponsor presently intends to assert that Shareholders have, by subscribing for Shares of the Trust, consented to the following
conflicts of interest in the event of any proceeding alleging that such conflicts violated any duty owed by the Sponsor to investors.</P>

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 63.35pt 0pt 0;text-indent: 0in">The
Sponsor</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 63.35pt 0pt 0;text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Sponsor has a conflict of interest in
allocating its own limited resources among, when applicable, different clients and potential future business ventures, to each
of which it owes fiduciary duties. Additionally, the professional staff of the Sponsor also services other affiliates of the Sponsor
and their respective clients. Although the Sponsor and its professional staff cannot and will not devote all of its or their respective
time or resources to the management of the business and affairs of the Trust, the Sponsor intends to devote, and to cause its professional
staff to devote, sufficient time and resources to manage properly the business and affairs of the Trust consistent with its or
their respective fiduciary duties to the Trust and others.</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: 0.5in">Because of the Sponsor&rsquo;s affiliated
status, it may be disincentivized to replace affiliated service providers. In connection with these conflicts of interest, Shareholders
should understand that affiliated service providers receive fees for providing services to the Trust and clients of the affiliated
service providers may pay commissions at negotiated rates which are greater or less than the rate paid by 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: 0.5in">The Sponsor and the affiliated service providers
may, from time-to-time, have conflicting demands in respect of their obligations to the Trust and, in the future, to other clients.
It is possible that future business ventures of the Sponsor and the affiliated service providers may generate larger fees, resulting
in increased payments to employees, and therefore, incentivizing the Sponsor and/or the affiliated service providers to allocate
it/their limited resources accordingly to the potential detriment 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-indent: 0.5in"></P>

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<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: 0.5in">There is an absence of arm&rsquo;s length
negotiation with respect to some of the terms of this offering, and, where applicable, there has been no independent due diligence
conducted with respect to this offering. The Sponsor will, however, not retain any affiliated servicer provider for the Trust which
the Sponsor has reason to believe would knowingly or deliberately favor any other client over the Trust.</P>

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 63.35pt 0pt 0;text-indent: 0in">Proprietary
Trading/Other Clients</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 63.35pt 0pt 0;text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Because the officers of the Sponsor may
trade bitcoins for their own personal trading accounts (subject to certain internal trading policies and procedures) at the same
time that they are managing the account of the Trust, prospective investors should be aware that the activities of the officers
of the Sponsor, subject to their fiduciary duties, may, from time-to-time, result in taking positions in their personal trading
accounts which are opposite of the positions taken for the Trust. Records of the Sponsor&rsquo;s officers&rsquo; personal trading
accounts will not be available for inspection by Shareholders.</P>

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


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

<P STYLE="font: small-caps bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><A NAME="valkyries04272121a018"></A>DESCRIPTION OF THE SHARES</P>

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 63.35pt 0pt 0;text-indent: 0in">General</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 63.35pt 0pt 0;text-indent: 0in"> &nbsp; </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"> The Trust is authorized under the Trust
Agreement to create and issue an unlimited number of Shares. Shares will be issued only in Baskets (a Basket equals a block of
50,000 Shares) and only upon the order of an Authorized Participant. The Shares represent units of fractional undivided beneficial
interest in and ownership of the Trust and have no par value. Any creation and issuance of Shares above the amount registered
on the registration statement of which this prospectus is a part will require the registration of such additional Shares. </P>

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 63.35pt 0pt 0;text-indent: 0in">Description
of Limited Rights</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 63.35pt 0pt 0;text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Shares do not represent a traditional
investment and should not be viewed as similar to &ldquo;shares&rdquo; of a corporation operating a business enterprise with management
and a board of directors. A Shareholder will not have the statutory rights normally associated with the ownership of shares of
a corporation. Each Share is transferable, is fully paid and non-assessable and entitles the holder to vote on the limited matters
upon which Shareholders may vote under the Trust Agreement. For example, Shareholders do not have the right to elect directors
and will not receive dividends. The Shares do not entitle their holders to any conversion or pre-emptive rights or, except as provided
below, any redemption rights or rights to distributions.</P>

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 63.35pt 0pt 0;text-indent: 0in">Voting
and Approvals</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 63.35pt 0pt 0;text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Under the Trust Agreement, Shareholders
have limited voting rights. For example, the Sponsor will terminate the Trust upon the agreement of Shareholders owning at least
75% of the outstanding Shares. In addition, any amendment that adversely affects the rights of Shareholders, appoints a new Sponsor,
dissolves the Trust or makes any material change to the Trust&rsquo;s basic investment policies or structure must be approved by
the affirmative vote of Shareholders owning at least 50% of the outstanding Shares.</P>

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 63.35pt 0pt 0;text-indent: 0in">Distributions</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 63.35pt 0pt 0;text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">If the Trust is terminated and liquidated,
the Sponsor will distribute to the Shareholders any amounts of the cash proceeds of the liquidation remaining after the satisfaction
of all outstanding liabilities of the Trust and the establishment of reserves for applicable taxes, other governmental charges
and contingent or future liabilities as the Sponsor shall determine. See &ldquo;Description of the Trust Documents&mdash;Description
of the Trust Agreement&mdash;The Trustee&mdash;Termination of the Trust.&rdquo; Shareholders of record on the record date fixed
by the Transfer Agent for a distribution will be entitled to receive their pro rata portion of any distribution.</P>

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 63.35pt 0pt 0;text-indent: 0in">Redemption
of the Shares</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 63.35pt 0pt 0;text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Shares may be redeemed only by or through
an Authorized Participant and only in whole Baskets. See &ldquo;[Risk Factors&mdash;Risk Factors Related to the Regulation of the
Trust and the Shares&mdash;The Trust and an affiliate of the Trust recently entered into a settlement agreement with the SEC concerning
the operation of the Trust&rsquo;s former redemption program]&rdquo; and &ldquo;Description of Creation and Redemption of Shares.&rdquo;</P>

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 63.35pt 0pt 0;text-indent: 0in">Book-Entry
Form</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 63.35pt 0pt 0;text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Individual certificates will not be issued
for the Shares. Instead, one or more global certificates have been deposited by the Transfer Agent with DTC and registered in the
name of Cede&nbsp;&amp; Co., as nominee for DTC. The global certificates will evidence all of the Shares outstanding at any time.
Under the Trust Agreement, Shareholders are limited to (1)&nbsp;DTC Participants such as banks, brokers, dealers and trust companies,
(2)&nbsp;those who maintain, either directly or indirectly, a custodial relationship with a DTC Participant (&ldquo;Indirect Participants&rdquo;),
and (3)&nbsp;those banks, brokers, dealers, trust companies and others who hold interests in the Shares through DTC Participants
or Indirect Participants. The Shares are transferable only 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 will be made in accordance with standard
securities industry practice.</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: 0.5in"></P>

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 63.35pt 0pt 0;text-indent: 0in">Share
Splits</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 63.35pt 0pt 0;text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">If the Sponsor believes that the per Share
price in the public market for Shares has risen or fallen outside a desirable trading price range, the Sponsor may direct the Transfer
Agent to declare a split or reverse split in the number of Shares outstanding and to make a corresponding change in the number
of Shares constituting a Basket.</P>

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


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

<P STYLE="font: small-caps bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><A NAME="valkyries04272121a019"></A>CUSTODY OF THE TRUST&rsquo;S
BITCOINS</P>

<P STYLE="font: small-caps bold 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-indent: 0.5in">All bitcoins exist and are stored on the
Blockchain, the decentralized transaction ledger of the Bitcoin Network. The Blockchain records most transactions (including mining
of new bitcoins) for all bitcoins in existence, and in doing so verifies the location of each bitcoin (or fraction thereof) in
a particular digital wallet. The Bitcoin Account is maintained by the Custodian and cold storage mechanisms are used for the Vault
Account by the Custodian. Each digital wallet of the Trust may be accessed using its corresponding private key. The Custodian&rsquo;s
custodial operations maintain custody of the private keys that have been deposited in cold storage at its various vaulting premises
which are located in geographically dispersed locations across the world, including but not limited to the United States, Europe,
including Switzerland, and South America. The locations of the vaulting premises change may regularly and are kept confidential
by the Custodian for security purposes.</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: 0.5in">The term &ldquo;cold storage&rdquo; refers
to a safeguarding method by which the private keys corresponding to bitcoins stored on a digital wallet are removed from any computers
actively connected to the internet. Cold storage of private keys may involve keeping such wallet on a non-networked computer or
electronic device or storing the public key and private keys relating to the digital wallet on a storage device (for example, a
USB thumb drive) or printed medium (for example, papyrus or paper) and deleting the digital wallet from all computers. A digital
wallet may receive deposits of bitcoins but may not send bitcoins without use of the bitcoins&rsquo; corresponding private keys.
In order to send bitcoin from a digital wallet in which the private keys are kept in cold storage, either the private keys must
be retrieved from cold storage and entered them into a bitcoin software program to sign the transaction, or the unsigned transaction
must be sent to the &ldquo;cold&rdquo; server in which the private keys are held for signature by the private keys. At that point,
the user of the digital wallet can transfer its bitcoins.</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: 0.5in">The Custodian is the custodian of the Trust&rsquo;s
private keys in accordance with the terms and provisions of the Custodian Agreement and will utilize the certain security procedures
such as algorithms, codes, passwords, encryption or telephone call-backs (together, the &ldquo;Security Procedures&rdquo;) in the
administration and operation of the Trust and the safekeeping of its bitcoins and private keys. The Custodian has created a Vault
Account for the Trust assets in which private keys are placed in cold storage. The Custodian segregates the private keys stored
with it from any other assets it holds or holds for others.</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: 0.5in">Multiple distinct private keys must sign
any transaction in order to transfer the Trust&rsquo;s bitcoins from a multi-signature address to any other address on the Bitcoin
blockchain. Distinct private keys required for multi-signature address transfers reside in geographically dispersed vault locations.
The Custodian refers to these vault locations, where transactions are signed by private keys, as &ldquo;signing vaults.&rdquo;
In addition to multiple signing vaults, the Custodian maintains multiple &ldquo;back-up vaults&rdquo; in which backup private keys
are stored. In the event that one or more of the &ldquo;signing vaults&rdquo; were to be compromised, back-up vaults can be activated
and used as signing vaults to complete a transaction within 72 hours.</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: 0.5in">As such, if any one signing vault were to
be compromised, it would have no impact on the ability of the Trust to access its bitcoins, other than a possible delay in operations
of 72 hours, while one or more of the &ldquo;backup vaults&rdquo; was transitioned to a signing vault. These security procedures
ensure that there is no single point of failure in the protection of the Trust&rsquo;s 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-indent: 0.5in">The Custodian is authorized to accept, on
behalf of the Trust, deposits of bitcoins from Authorized Participant Self-Administered Accounts or Liquidity Provider Accounts,
as applicable, held with the Custodian and transfer such bitcoins into the Bitcoin Account. Deposits of bitcoins will be immediately
available to the Trust to the extent such bitcoins have not already been transferred to the Vault Account. Generally, bitcoins
transferred to the Bitcoin Account will be directly deposited into digital wallets for which the keys are already in cold storage.</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: 0.5in">The process of accessing and withdrawing
bitcoins from the Trust for a redemption of a Basket will follow the same general procedure as depositing bitcoins with the Trust
for a creation of a Basket, only in reverse. See &ldquo;Description of Creation and Redemption of Shares.&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-indent: 0.5in">If bitcoins need to be withdrawn from the
Trust in connection with a redemption, the Custodian will ensure that the private keys to those bitcoins sign the withdrawal transaction.</P>

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


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

<P STYLE="font: small-caps bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><A NAME="valkyries04272121a020"></A>DESCRIPTION OF CREATION
AND REDEMPTION OF SHARES</P>

<P STYLE="font: small-caps bold 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-indent: 0.5in">The following is a description of the material
terms of the Trust Documents as they relate to the creation and redemption of the Trust&rsquo;s 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-indent: 0.5in"> The Trust issues Shares on an ongoing
basis, but only in one or more Baskets (with a Basket being a block of 50,000 Shares). The Trust intends to redeem Shares in Baskets
on an ongoing basis from Authorized Participants, according to the procedures described herein. </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: 0.5in"> The creation and redemption of a Basket
require the delivery to the Trust, or the distribution by the Trust, of the number of whole and fractional bitcoins represented
by each Basket being created or redeemed, the number of which is determined by dividing the number of bitcoins owned by the Trust
at 4:00 p.m., New York time, on the trade date of a creation or redemption order, as adjusted for the number of whole and fractional
bitcoins constituting accrued but unpaid fees and expenses of the Trust, by the number of Shares outstanding at such time (the
quotient so obtained calculated to one one-hundred-millionth of one bitcoin), and multiplying such quotient by 50,000 (the &ldquo;Basket
Bitcoin Amount&rdquo;). The Basket Bitcoin Amount multiplied by the number of Baskets being created or redeemed is the &ldquo;Total
Basket Bitcoin Amount.&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-indent: 0.5in">The Basket Bitcoin Amount will gradually
decrease over time as the Trust&rsquo;s bitcoins are used to pay the Trust&rsquo;s expenses.</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: 0.5in">Authorized Participants are the only persons
that may place orders to create and redeem Baskets. Each Authorized Participant must (i)&nbsp;be a registered broker-dealer, (ii)&nbsp;enter
into a Participant Agreement with the Sponsor, the Administrator, the Marketing Agent and the Liquidity Providers and (iii)&nbsp;in
the case of the creation or redemption of Baskets that do not use the Conversion Procedures, own a bitcoin wallet address that
is recognized by the Custodian as belonging to the Authorized Participant (an &ldquo;Authorized Participant Self-Administered Account&rdquo;).
Authorized Participants may act for their own accounts or as agents for broker-dealers, custodians and other securities market
participants that wish to create or redeem Baskets. Shareholders who are not Authorized Participants will only be able to redeem
their Shares through an Authorized Participant.</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: 0.5in">Although the Trust will create Baskets only
upon the receipt of bitcoins, and will redeem Baskets only by distributing bitcoins, an Authorized Participant may deposit cash
with the Administrator, which will facilitate the purchase or sale of bitcoins through a Liquidity Provider on behalf of an Authorized
Participant (the &ldquo;Conversion Procedures&rdquo;). Liquidity Providers must (i)&nbsp;enter into a Participant Agreement with
the Sponsor, the Administrator, the Marketing Agent and each Authorized Participant and (ii)&nbsp;own a Liquidity Provider Account.</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: 0.5in">The Conversion Procedures will be facilitated
by a single Liquidity Provider. On an order-by-order basis, the Sponsor will select the Liquidity Provider that it believes will
provide the best execution of the Conversion Procedures, and will base its decision on factors such as the Liquidity Provider&rsquo;s
creditworthiness, financial stability, the timing and speed of execution, liquidity and the likelihood of, and capabilities in,
execution, clearance and settlement. In the event that an order cannot be filled in its entirety by a single Liquidity Provider,
additional Liquidity Provider(s) will be selected by the Sponsor to fill the remaining amount based on the criteria 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-indent: 0.5in">The trade date on which the Basket Bitcoin
Amount is determined is different for in-kind and in-cash orders. For in-kind orders, the trade date is the day on which an order
is placed, whereas the trade date for in-cash orders is the day after which an order is placed. This could result in a different
execution price for in-kind and in-cash orders.</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: 0.5in">For example, if an Authorized Participant
submits an in-kind order at 2:00 p.m. on a Monday, the Basket Bitcoin Amount required to purchase a Basket of Shares will be determined
at 4:00 p.m., or as soon as practicable thereafter, on that same day. Alternatively, for in-cash orders, if an Authorized Participant
submits an order at 2:00&nbsp;p.m. on a Monday and pays the requisite Cash Collateral Amount at 3:00 p.m. on that same date, the
Total Basket Bitcoin Amount will nevertheless be determined at 4:00 p.m., or as soon as practicable thereafter, on Tuesday. Pursuant
to the Conversion Procedures, the Authorized Participant is obligated to pay the Cash Exchange Rate which is calculated on Monday,
times the Total Basket Bitcoin Amount, which is calculated on Tuesday. The Liquidity Provider is required to deposit the Total
Basket Bitcoin Amount as calculated on Tuesday, even if there were a change in the price of bitcoin since Monday.</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: 0.5in"></P>

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<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: 0.5in">Authorized Participants that create and
redeem Baskets using the Conversion Procedures will pay a transaction fee of 1% of the Cash Exchange Rate times the Total Basket
Bitcoin Amount (the &ldquo;1% Liquidity Provider Fee&rdquo;). The 1% Liquidity Provider Fee is intended to cover all of a Liquidity
Provider&rsquo;s expenses in connection with the creation or redemption order, including any exchange fees that the Liquidity Provider
incurs in connection with buying or selling bitcoins. Once the Authorized Participant&rsquo;s Cash Collateral Amount is received
by the Administrator, in the case of in-cash creation orders, and once the Administrator notifies a Liquidity Provider that an
in-cash redemption order has been accepted, in the case of in-cash redemption orders, Authorized Participants will be obligated
to accept the Liquidity Provider&rsquo;s Cash Exchange Rate and will have no recourse against the Trust, Administrator or Liquidity
Provider if they are dissatisfied with the Cash Exchange Rate. An in-cash creation or redemption order that has been accepted may
only be subsequently cancelled or withdrawn if there is no Liquidity Provider able to transact in bitcoin and purchase the Total
Basket Bitcoin Amount on behalf of the Authorized Participant.</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: 0.5in">Authorized Participants must also pay a
$500 transaction fee to the Administrator in connection with any creation or redemption order, regardless of the size of the order
or whether the order is made in-cash or in-kind. This $500 transaction fee and the 1% Liquidity Provider Fee, in the case of in-cash
orders, are the only fees that an Authorized Participant is required to pay in connection with the creation and redemption of Baskets.
Authorized Participants who deposit bitcoins with the Trust in exchange for Baskets will receive no fees, commissions or other
form of compensation or inducement of any kind from either the Sponsor or the Trust, and no such person has any obligation or responsibility
to the Sponsor or the Trust to effect any sale or resale of Shares.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Participant Agreement provides the procedures
for the creation and redemption of Baskets and for the delivery of the whole and fractional bitcoins required for such creations
and redemptions. The Participant Agreement and the related procedures attached thereto may be amended by the Sponsor and the relevant
Authorized Participant. Under the Participant Agreement, the Sponsor agrees to indemnify each Authorized Participant against certain
liabilities.</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: 0.5in">The following description of the procedures
for the creation and redemption of Baskets is only a summary and investors should refer to the relevant provisions of the Trust
Agreement, Custodian Agreement and the form of Participant Agreement for more detail.</P>

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 63.35pt 0pt 0;text-indent: 0in">Creation
Procedures</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 63.35pt 0pt 0;text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On any Business Day, an Authorized Participant
may order one or more Creation Baskets from the Trust by placing a creation order with the Administrator. Creation orders may be
placed either &ldquo;in-kind&rdquo; or &ldquo;in-cash,&rdquo; as described below.</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: 0.5in">Creation orders must be placed no later
than 3:59:59 p.m., New York time, for in-kind creations, and 4:59:59 p.m., New York time, for in-cash creations, on each Business
Day. Authorized Participants may only create Baskets and cannot create any Shares in an amount less than a Basket.</P>

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 63.35pt 0pt 0;text-indent: 0in">In-Kind
Creations</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 63.35pt 0pt 0;text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In-kind creations will take place as follows,
where &ldquo;T&rdquo; is the trade date and each day in the sequence must be a Business Day:</P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD COLSPAN="2" STYLE="white-space: nowrap">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; border-bottom: black 1pt solid"><B>T&nbsp;</B></P></TD>
    <TD STYLE="padding-top: 12pt"></TD>
    <TD COLSPAN="2" STYLE="white-space: nowrap">
        <P STYLE="text-indent: 0; font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; border-bottom: black 1pt solid"><B>T+1</B>&nbsp;</P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0; width: 3%; text-indent: 0">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left; text-indent: 0">&#9679;</P></TD>
    <TD STYLE="padding: 0; width: 46%"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left; text-indent: 0">The
Authorized Participant places a creation order with the Administrator.</P></TD>
    <TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 3%">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left; text-indent: 0">&#9679;</P></TD>
    <TD STYLE="width: 46%"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left; text-indent: 0">The
Authorized Participant transfers the Total Basket Bitcoin Amount from its Authorized Participant Self-Administered Account to
the Custodian.</P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0; text-indent: 0">&#9679;</TD>
    <TD STYLE="padding: 0">The Marketing Agent accepts (or rejects) the creation order, which is communicated to the Authorized Participant by the Administrator.</TD>
    <TD>&nbsp;</TD>
    <TD>&#9679;</TD>
    <TD>Once the Total Basket Bitcoin Amount is received by the Custodian, the Administrator directs the Transfer Agent to credit the
Creation Baskets to the Authorized Participant&rsquo;s DTC account.&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0; text-indent: 0">&#9679;</TD>
    <TD STYLE="padding: 0">The Total Basket Bitcoin Amount is determined as soon as practicable after 4:00&nbsp;p.m., New York time.&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 63.35pt 0pt 0;text-indent: 0in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 63.35pt 0pt 0;text-indent: 0in">In-Cash
Creations</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 63.35pt 0pt 0;text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Upon receiving instruction from the Administrator
that a creation order has been accepted by the Marketing Agent, the Authorized Participant will send 110% of the U.S. Dollar value
of the Total Basket Bitcoin Amount, as calculated using the most recently published Bitcoin Index Price (the &ldquo;Cash Collateral
Amount&rdquo;). Once the Cash Collateral Amount is received by the Administrator, the Sponsor will notify the Liquidity Provider
of the creation order. The Liquidity Provider will then (i) determine the Cash Exchange Rate, which, in the case of a creation
order, is the Index spot price at the time at which the Cash Collateral Amount is received by the Administrator, plus the 1% Liquidity
Provider Fee, and (ii) provide a firm quote to the Authorized Participant for the Total Basket Bitcoin Amount, determined by using
the Cash Exchange Rate. If the Liquidity Provider&rsquo;s quote is greater than the Cash Collateral Amount received, the Authorized
Participant will be required to pay the difference on the same day. Under the Conversion Procedures, the Authorized Participant
does not pay more than the firm quote provided by the Liquidity Provider. The Liquidity Provider bears the risk of any change in
the Total Basket Bitcoin Amount and of any change in the price of bitcoin once the Cash Exchange Rate has been determined. Provided
that payment for the Total Basket Bitcoin Amount is received by the Administrator, the Liquidity Provider will deliver the bitcoins
to the Custodian on the settlement date on behalf of the Authorized Participant. The Liquidity Provider may realize any arbitrage
opportunity between the firm quote that it provides to the Authorized Participant and the price at which it sources the requisite
bitcoin for the Total Basket Bitcoin Amount. After the Custodian receives the Total Basket Bitcoin Amount, the Administrator will
instruct the Transfer Agent to deliver the Creation Baskets to the Authorized Participant. The Administrator will then send the
Liquidity Provider the cash equal to the Cash Exchange Rate times the Total Basket Bitcoin Amount, plus the 1% Liquidity Provider
Fee. The Administrator will return any remaining amount of the Cash Collateral Amount to the Authorized Participant.</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: 0.5in"></P>

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<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: 0.5in">The above procedures are further explained
below, where &ldquo;T&rdquo; is the trade date and each day in the sequence must be a Business Day:</P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; padding: 0; white-space: nowrap; text-align: center; text-indent: 0"><FONT STYLE="font-size: 10pt"><B>T-1</B></FONT></TD>
    <TD STYLE="padding: 0; text-align: center; text-indent: 0">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; padding: 0; white-space: nowrap; text-align: center; text-indent: 0"><FONT STYLE="font-size: 10pt"><B>T</B></FONT></TD>
    <TD STYLE="padding: 0; text-align: center; text-indent: 0">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; padding: 0; white-space: nowrap; text-align: center; text-indent: 0"><FONT STYLE="font-size: 10pt"><B>T+1</B></FONT></TD></TR>
<TR>
    <TD STYLE="padding: 0; vertical-align: top; text-indent: 0; width: 3%">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0">&#9679;</P></TD>
    <TD STYLE="padding: 0; vertical-align: top; text-indent: 0; width: 27%"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0">The
Authorized Participant places a creation order with the Administrator.</P></TD>
    <TD STYLE="padding: 0; vertical-align: bottom; text-indent: 0; width: 2%"></TD>
    <TD STYLE="padding: 0; vertical-align: top; text-indent: 0; width: 3%">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0">&#9679;</P></TD>
    <TD STYLE="padding: 0; vertical-align: top; text-indent: 0; width: 27%"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0">The Total
Basket Bitcoin Amount is determined as soon as practicable after 4:00&nbsp;p.m., New York time.&nbsp;</P></TD>
    <TD STYLE="padding: 0; vertical-align: bottom; text-indent: 0; width: 2%"></TD>
    <TD STYLE="padding: 0; vertical-align: top; text-indent: 0; width: 3%">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0">&#9679;</P></TD>
    <TD STYLE="padding: 0; vertical-align: top; text-indent: 0; width: 33%"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0">The
Liquidity Provider delivers the Total Basket Bitcoin Amount to the Custodian.&nbsp;</P></TD></TR>
<TR>
    <TD STYLE="padding: 0; vertical-align: top; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; vertical-align: top; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; vertical-align: bottom; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; vertical-align: top; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; vertical-align: top; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; vertical-align: bottom; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; vertical-align: top; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; vertical-align: top; text-indent: 0">&nbsp;</TD></TR>
<TR>
    <TD STYLE="padding: 0; vertical-align: top; text-indent: 0">&#9679;</TD>
    <TD STYLE="padding: 0; vertical-align: top; text-indent: 0">The Marketing Agent accepts (or rejects) the creation order, which is communicated to the Authorized Participant by the Administrator.</TD>
    <TD STYLE="padding: 0; vertical-align: bottom; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; vertical-align: top; text-indent: 0">&#9679;</TD>
    <TD STYLE="padding: 0; vertical-align: top; text-indent: 0">Prior to &ldquo;T+1&rdquo;, the Liquidity Provider must complete its purchase of the Total Basket Bitcoin Amount.</TD>
    <TD STYLE="padding: 0; vertical-align: bottom; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; vertical-align: top; text-indent: 0">&#9679;</TD>
    <TD STYLE="padding: 0; vertical-align: top; text-indent: 0">Once the Total Basket Bitcoin Amount is received by the Custodian, the Administrator directs the Transfer Agent to credit the
Creation Baskets to the Authorized Participant&rsquo;s DTC account.</TD></TR>
<TR>
    <TD STYLE="padding: 0; vertical-align: top; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; vertical-align: top; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; vertical-align: bottom; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; vertical-align: top; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; vertical-align: top; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; vertical-align: bottom; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; vertical-align: top; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; vertical-align: top; text-indent: 0">&nbsp;</TD></TR>
<TR>
    <TD STYLE="padding: 0; vertical-align: top; text-indent: 0">&#9679;</TD>
    <TD STYLE="padding: 0; vertical-align: top; text-indent: 0">The Authorized Participant sends the Cash Collateral Amount to the Administrator.&nbsp;</TD>
    <TD STYLE="padding: 0; vertical-align: bottom; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; vertical-align: top; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; vertical-align: top; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; vertical-align: bottom; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; vertical-align: top; text-indent: 0">&#9679;</TD>
    <TD ROWSPAN="3" STYLE="padding: 0; vertical-align: top; text-indent: 0">The Administrator sends the Liquidity Provider an amount of cash equal to the Cash Exchange Rate times the Total Basket Bitcoin
Amount, plus the 1% Liquidity Provider Fee, and returns any remaining amount of the Cash Collateral Amount to the Authorized Participant.</TD></TR>
<TR>
    <TD STYLE="padding: 0; vertical-align: top; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; vertical-align: top; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; vertical-align: bottom; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; vertical-align: top; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; vertical-align: top; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; vertical-align: bottom; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; vertical-align: top; text-indent: 0">&nbsp;</TD>
    <TD ROWSPAN="3" STYLE="padding: 0; vertical-align: top; text-indent: 0">&nbsp;</TD></TR>
<TR>
    <TD STYLE="padding: 0; vertical-align: top; text-indent: 0">&#9679;</TD>
    <TD STYLE="padding: 0; vertical-align: top; text-indent: 0">The Sponsor advises a Liquidity Provider that the Cash Collateral Amount has been deposited.&nbsp;</TD>
    <TD STYLE="padding: 0; vertical-align: bottom; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; vertical-align: top; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; vertical-align: top; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; vertical-align: bottom; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; vertical-align: top; text-indent: 0">&nbsp;</TD>
    </TR>
<TR>
    <TD STYLE="padding: 0; vertical-align: top; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; vertical-align: top; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; vertical-align: bottom; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; vertical-align: top; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; vertical-align: top; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; vertical-align: bottom; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; vertical-align: top; text-indent: 0">&nbsp;</TD></TR>
<TR>
    <TD STYLE="padding: 0; vertical-align: top; text-indent: 0">&#9679;</TD>
    <TD STYLE="padding: 0; vertical-align: top; text-indent: 0">The Liquidity Provider provides the Authorized Participant with the Cash Exchange Rate and a firm quote for the Total Basket Bitcoin
Amount.&nbsp;</TD>
    <TD STYLE="padding: 0; vertical-align: bottom; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; vertical-align: top; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; vertical-align: top; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; vertical-align: bottom; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; vertical-align: top; text-indent: 0">&nbsp;</TD>
    </TR>
<TR>
    <TD STYLE="padding: 0; vertical-align: top; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; vertical-align: top; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; vertical-align: bottom; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; vertical-align: top; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; vertical-align: top; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; vertical-align: bottom; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; vertical-align: top; text-indent: 0">&nbsp;</TD></TR>
<TR>
    <TD STYLE="padding: 0; vertical-align: top; text-indent: 0">&#9679;</TD>
    <TD STYLE="padding: 0; vertical-align: top; text-indent: 0">If the Cash Collateral Amount deposited by the Authorized Participant is less than the firm quote provided by the Liquidity Provider,
the Authorized Participant sends the difference between the Cash Collateral Amount deposited and the firm quote to the Administrator.&nbsp;</TD>
    <TD STYLE="padding: 0; vertical-align: bottom; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; vertical-align: top; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; vertical-align: top; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; vertical-align: bottom; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; vertical-align: top; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; vertical-align: top; text-indent: 0">&nbsp;</TD></TR>
<TR>
    <TD STYLE="padding: 0; vertical-align: top; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; vertical-align: top; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; vertical-align: bottom; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; vertical-align: top; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; vertical-align: top; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; vertical-align: bottom; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; vertical-align: top; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; vertical-align: top; text-indent: 0">&nbsp;</TD></TR>
<TR>
    <TD STYLE="padding: 0; vertical-align: top; text-indent: 0">&#9679;</TD>
    <TD STYLE="padding: 0; vertical-align: top; text-indent: 0">The Liquidity Provider may begin purchasing bitcoins.&nbsp;</TD>
    <TD STYLE="padding: 0; vertical-align: bottom; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; vertical-align: top; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; vertical-align: top; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; vertical-align: bottom; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; vertical-align: top; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; vertical-align: top; text-indent: 0">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 63.35pt 0pt 0;text-indent: 0in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 63.35pt 0pt 0;text-indent: 0in">Determination
of Required Deposits</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 63.35pt 0pt 0;text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"> The Basket Bitcoin Amount required for
a Creation Basket will be determined by dividing the number of bitcoins owned by the Trust at 4:00 p.m., New York time, on the
trade date of a creation or redemption order, as adjusted for the number of whole and fractional bitcoins constituting accrued
but unpaid fees and expenses of the Trust, by the number of Shares outstanding at such time (the quotient so obtained calculated
to one one-hundred-millionth of one bitcoin), and multiplying such quotient by 50,000. All questions as to the composition of
a Basket Bitcoin Amount will be conclusively determined by the Sponsor and will be final and binding on all persons interested
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: 0.5in">Deposits other than those received from
an Authorized Participant Self-Administered Account or a Liquidity Provider Account will be rejected. The expense and risk of delivery,
ownership and safekeeping of bitcoins, until such bitcoins have been received and not rejected by the Trust, shall be borne solely
by the Authorized Participant. The Custodian may accept delivery of bitcoins by such other means as the Sponsor, from time to time,
may determine to be acceptable 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: bold 10pt Times New Roman, Times, Serif; margin: 0pt 63.35pt 0pt 0;text-indent: 0in">Redemption
Procedures</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 63.35pt 0pt 0;text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The procedures by which an Authorized Participant
can redeem one or more Baskets mirror the procedures for the creation of Baskets. On any business day, an Authorized Participant
may place a redemption order specifying the number of Redemption Baskets to be redeemed. Redemption orders may be placed either
&ldquo;in-kind&rdquo; or &ldquo;in-cash,&rdquo; as described below.</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: 0.5in"></P>

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<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: 0.5in">Redemption orders must be placed no later
than 3:59:59 p.m., New York time, for in-kind redemptions, and 4:59:59&nbsp;p.m., New York time, for in-cash redemptions, on each
Business Day. The Authorized Participants may only redeem Baskets and cannot redeem any Shares in an amount less than a Basket.</P>

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 63.35pt 0pt 0;text-indent: 0in">In-Kind
Redemptions</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 63.35pt 0pt 0;text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In-kind redemptions will take place as follows,
where &ldquo;T&rdquo; is the trade date and each day in the sequence must be a Business Day:</P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; padding: 0; white-space: nowrap; text-align: center; text-indent: 0"><FONT STYLE="font-size: 10pt"><B>T</B></FONT></TD>
    <TD STYLE="padding: 0; text-align: center; text-indent: 0">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; padding: 0; white-space: nowrap; text-align: center; text-indent: 0"><FONT STYLE="font-size: 10pt"><B>T+2</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0; text-indent: 0; width: 3%">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0">&#9679;</P></TD>
    <TD STYLE="padding: 0; text-indent: 0; width: 46%"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0">&nbsp;The
Authorized Participant places a redemption order with the Administrator.&nbsp;</P></TD>
    <TD STYLE="padding: 0; text-indent: 0; width: 2%">&nbsp;</TD>
    <TD STYLE="padding: 0; text-indent: 0; width: 3%">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0">&#9679;&nbsp;&nbsp;&nbsp;&nbsp;</P></TD>
    <TD STYLE="padding: 0; text-indent: 0; width: 46%"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0">The
Authorized Participant delivers to the Transfer Agent Redemption Baskets from its DTC account.&nbsp;</P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0; text-indent: 0">&#9679;</TD>
    <TD STYLE="padding: 0; text-indent: 0">The Marketing Agent accepts (or rejects) the redemption order.</TD>
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; text-indent: 0">&#9679;</TD>
    <TD STYLE="padding: 0; text-indent: 0">Once the Redemption Baskets are received by the Transfer Agent, the Custodian transfers the Total Basket Bitcoin Amount to the
Authorized Participant and the Transfer Agent cancels the Shares.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0; text-indent: 0">&#9679;</TD>
    <TD STYLE="padding: 0; text-indent: 0">The Total Basket Bitcoin Amount is determined as soon as practicable after 4:00&nbsp;p.m., New York time.</TD>
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 63.35pt 0pt 0;text-indent: 0in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 63.35pt 0pt 0;text-indent: 0in">In-Cash
Redemptions</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 63.35pt 0pt 0;text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">To redeem Baskets using the Conversion Procedures,
Authorized Participants will send the Administrator a redemption order. The Marketing Agent will accept or reject the redemption
order on that same date. A Liquidity Provider will then (i)&nbsp;determine the Cash Exchange Rate, which, in the case of a redemption
order, is the Index spot price minus the 1% Liquidity Provider Fee at the time at which the Administrator notifies the Authorized
Participant that an order has been accepted and (ii)&nbsp;provide a firm quote to an Authorized Participant for the Total Basket
Bitcoin Amount, determined by using the Cash Exchange Rate. Under the Conversion Procedures, the Authorized Participant does not
receive less than the firm quote provided by the Liquidity Provider. The Liquidity Provider bears the risk of any change in the
Total Basket Bitcoin Amount and of any change in the price of bitcoin once the Cash Exchange Rate has been determined.</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: 0.5in">The Liquidity Provider will send the Administrator
the cash proceeds equal to the Cash Exchange Rate times the Total Basket Bitcoin Amount, minus the 1% Liquidity Provider Fee. The
Liquidity Provider may realize any arbitrage opportunity between the firm quote that it provides to the Authorized Participant
and the price at which it sells the requisite bitcoin for the Total Basket Bitcoin Amount. Once the Authorized Participant delivers
the Redemption Baskets to the Transfer Agent, the Administrator will send the cash proceeds to the Authorized Participant and the
Transfer Agent will cancel the Shares. At the instruction of the Administrator, the Custodian will then send the Liquidity Provider
the Total Basket Bitcoin Amount.</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: 0.5in">The above procedures are further explained
below, where &ldquo;T&rdquo; is the trade date and each day in the sequence must be a Business Day:</P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="2" STYLE="padding: 0; white-space: nowrap; text-indent: 0">
        <P STYLE="text-indent: 0; font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; border-bottom: black 1pt solid"><B>T-1&nbsp;</B></P></TD>
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding: 0; white-space: nowrap; text-indent: 0">
        <P STYLE="text-indent: 0; font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; border-bottom: black 1pt solid"><B>T
through T+1</B>&nbsp;</P></TD>
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding: 0; white-space: nowrap; text-indent: 0">
        <P STYLE="text-indent: 0; font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; border-bottom: black 1pt solid"><B>T+2</B>&nbsp;</P></TD></TR>
<TR>
    <TD STYLE="padding: 0; vertical-align: top; width: 3%; text-indent: 0">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0">&#9679;&nbsp;&nbsp;&nbsp;&nbsp;</P></TD>
    <TD STYLE="padding: 0; vertical-align: top; width: 27%; text-indent: 0"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0">The
Authorized Participant places a redemption order with the Administrator.&nbsp;</P></TD>
    <TD STYLE="padding: 0; vertical-align: bottom; width: 2%; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; vertical-align: top; width: 3%; text-indent: 0">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0">&#9679;&nbsp;&nbsp;&nbsp;&nbsp;</P></TD>
    <TD STYLE="padding: 0; vertical-align: top; width: 27%; text-indent: 0"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0">The
Total Basket Bitcoin Amount is determined as soon as practicable after 4:00&nbsp;p.m., New York time, on &ldquo;T&rdquo;.&nbsp;</P></TD>
    <TD STYLE="padding: 0; vertical-align: bottom; width: 2%; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; vertical-align: top; width: 3%; text-indent: 0">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0">&#9679;&nbsp;&nbsp;&nbsp;&nbsp;</P></TD>
    <TD STYLE="padding: 0; vertical-align: top; width: 33%; text-indent: 0"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0">The
Authorized Participant delivers to the Transfer Agent Redemption Baskets from its DTC account.&nbsp;</P></TD></TR>
<TR>
    <TD STYLE="padding: 0; vertical-align: top; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; vertical-align: top; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; vertical-align: bottom; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; vertical-align: top; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; vertical-align: top; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; vertical-align: bottom; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; vertical-align: top; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; vertical-align: top; text-indent: 0">&nbsp;</TD></TR>
<TR>
    <TD STYLE="padding: 0; vertical-align: top; text-indent: 0">&#9679;</TD>
    <TD STYLE="padding: 0; vertical-align: top; text-indent: 0">The Marketing Agent accepts (or rejects) the redemption order.</TD>
    <TD STYLE="padding: 0; vertical-align: bottom; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; vertical-align: top; text-indent: 0">&#9679;</TD>
    <TD STYLE="padding: 0; vertical-align: top; text-indent: 0">Prior to &ldquo;T+2&rdquo;, Liquidity Provider must complete its sale of the Total Basket Bitcoin Amount.&nbsp;</TD>
    <TD STYLE="padding: 0; vertical-align: bottom; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; vertical-align: top; text-indent: 0">&#9679;</TD>
    <TD STYLE="padding: 0; vertical-align: top; text-indent: 0">The Liquidity Provider sends the Administrator the cash proceeds equal to Cash Exchange Rate times the Total Basket Bitcoin Amount,
minus the 1% Liquidity Provider Fee.&nbsp;</TD></TR>
<TR>
    <TD STYLE="padding: 0; vertical-align: top; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; vertical-align: top; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; vertical-align: bottom; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; vertical-align: top; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; vertical-align: top; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; vertical-align: bottom; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; vertical-align: top; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; vertical-align: top; text-indent: 0">&nbsp;</TD></TR>
<TR>
    <TD STYLE="padding: 0; vertical-align: top; text-indent: 0">&#9679;</TD>
    <TD STYLE="padding: 0; vertical-align: top; text-indent: 0">The Sponsor advises a Liquidity Provider that a redemption order has been accepted.&nbsp;</TD>
    <TD STYLE="padding: 0; vertical-align: bottom; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; vertical-align: top; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; vertical-align: top; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; vertical-align: bottom; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; vertical-align: top; text-indent: 0">&#9679;</TD>
    <TD STYLE="padding: 0; vertical-align: top; text-indent: 0">Once the Redemption Baskets are received by the Transfer Agent, the Administrator sends the above-mentioned cash proceeds to the
Authorized Participant and the Transfer Agent cancels the Shares.</TD></TR>
<TR>
    <TD STYLE="padding: 0; vertical-align: top; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; vertical-align: top; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; vertical-align: bottom; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; vertical-align: top; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; vertical-align: top; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; vertical-align: bottom; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; vertical-align: top; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; vertical-align: top; text-indent: 0">&nbsp;</TD></TR>
<TR>
    <TD STYLE="padding: 0; vertical-align: top; text-indent: 0">&#9679;</TD>
    <TD STYLE="padding: 0; vertical-align: top; text-indent: 0">The Liquidity Provider provides the Authorized Participant with the Cash Exchange Rate and a firm quote for the Total Basket Bitcoin
Amount.&nbsp;</TD>
    <TD STYLE="padding: 0; vertical-align: bottom; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; vertical-align: top; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; vertical-align: top; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; vertical-align: bottom; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; vertical-align: top; text-indent: 0">&#9679;</TD>
    <TD STYLE="padding: 0; vertical-align: top; text-indent: 0">The Custodian sends the Liquidity Provider the number of bitcoins equal to the Total Basket Bitcoin Amount.</TD></TR>
<TR>
    <TD STYLE="padding: 0; vertical-align: top; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; vertical-align: top; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; vertical-align: bottom; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; vertical-align: top; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; vertical-align: top; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; vertical-align: bottom; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; vertical-align: top; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; vertical-align: top; text-indent: 0">&nbsp;</TD></TR>
<TR>
    <TD STYLE="padding: 0; vertical-align: top; text-indent: 0">&#9679;</TD>
    <TD STYLE="padding: 0; vertical-align: top; text-indent: 0">The Liquidity Provider may begin selling bitcoins.</TD>
    <TD STYLE="padding: 0; vertical-align: bottom; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; vertical-align: top; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; vertical-align: top; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; vertical-align: bottom; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; vertical-align: top; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; vertical-align: top; text-indent: 0">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 63.35pt 0pt 0;text-indent: 0in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 63.35pt 0pt 0;text-indent: 0in"></P>

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<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 63.35pt 0pt 0;text-indent: 0in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 63.35pt 0pt 0;text-indent: 0in">Determination
of Redemption Distribution</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 63.35pt 0pt 0;text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"> The Basket Bitcoin Amount required for
a Redemption Basket will be determined by dividing the number of bitcoins owned by the Trust at 4:00 p.m., New York time, on the
trade date of a creation or redemption order, as adjusted for the number of whole and fractional bitcoins constituting accrued
but unpaid fees and expenses of the Trust, by the number of Shares outstanding at such time (the quotient so obtained calculated
to one one-hundred-millionth of one bitcoin), and multiplying such quotient by 50,000. </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: 0.5in">Redemption distributions will be subject
to the deduction of any applicable tax or other governmental charges that may be due. The Sponsor has final determination of all
questions as to the composition of the number of bitcoins required for a Redemption Basket.</P>

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 63.35pt 0pt 0;text-indent: 0in">Suspension
or Rejection of Orders</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 63.35pt 0pt 0;text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The creation or redemption of Shares may
be suspended generally, or refused with respect to particular requested creations or redemptions, during any period when the transfer
books of the Transfer Agent are closed or if circumstances outside the control of the Sponsor or its delegates make it for all
practical purposes not feasible to process creation orders or redemption orders. The Administrator may reject an order if such
order is not presented in proper form as described in the Participant Agreement or if the fulfillment of the order, in the opinion
of counsel, might be unlawful. None of the Sponsor or its delegates will be liable for the suspension, rejection or acceptance
of any creation order or redemption order.</P>

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 63.35pt 0pt 0;text-indent: 0in">Tax
Responsibility</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 63.35pt 0pt 0;text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Authorized Participants are responsible
for any transfer tax, sales or use tax, stamp tax, recording tax, value-added tax or similar tax or governmental charge applicable
to the creation or redemption of Baskets, regardless of whether such tax or charge is imposed directly on the Authorized Participant,
and agree to indemnify the Sponsor and the Trust if any Authorized Participant is required by law to pay any such tax, together
with any applicable penalties, additions to tax or interest thereon.</P>

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


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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: small-caps bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><A NAME="valkyries04272121a022"></A>EXPENSES</P>

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 63.35pt 0pt 0;text-indent: 0in">Expenses
to Be Paid by the Sponsor</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 63.35pt 0pt 0;text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Sponsor has agreed to assume the following
fees and expenses incurred by the Trust: the Marketing Fee, the Administrator Fee, the Custodian Fee, the Transfer Agent Fee, the
Trustee fee, applicable license fees, including the licensing fees related to the Index License Agreement, fees and expenses related
to public trading of the Shares on NYSE Arca (including marketing, legal and audit fees and expenses), legal expenses, audit fees,
regulatory fees, including any fees relating to the registration of the Shares with the SEC, printing and mailing costs and costs
of maintaining the Trust&rsquo;s website.</P>

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 63.35pt 0pt 0;text-indent: 0in">Extraordinary
and Other Expenses</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 63.35pt 0pt 0;text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In certain extraordinary circumstances,
the Trust may pay expenses in addition to the Sponsor&rsquo;s Fee, including, but not limited to, any expenses of the Trust that
are not assumed by the Sponsor, 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, indemnification expenses of the Custodian, Administrator or other
agents, service providers or counterparties of the Trust and extraordinary legal fees and expenses (collectively, &ldquo;Additional
Trust Expenses&rdquo;). If Additional Trust Expenses are incurred, the Trust will be required to pay these Additional Trust Expenses
by selling bitcoins. For purposes of paying any Additional Trust Expenses, bitcoins will be converted into U.S. Dollars or other
fiat currencies at the Actual Exchange Rate at the time of conversion. Although the Sponsor cannot definitively state the frequency
or magnitude of the Additional Trust Expenses, the Sponsor expects that they may occur infrequently, if at all.</P>

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 63.35pt 0pt 0;text-indent: 0in">Disposition
of Bitcoins</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 63.35pt 0pt 0;text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">To pay the Sponsor&rsquo;s Fee, the Custodian
will, when directed by the Sponsor, (i) withdraw from the Bitcoin Account the number of bitcoins with an aggregate U.S. Dollar
value, as calculated using the Bitcoin Index Price, equal to the accrued but unpaid Sponsor&rsquo;s Fee and (ii) transfer such
bitcoins to an account maintained by the Custodian for the Sponsor. In addition, if the Trust incurs any Additional Trust Expenses,
the Sponsor will cause the Custodian to convert bitcoins into U.S.&nbsp;Dollars or other fiat currencies at the Actual Exchange
Rate, in such quantity as may be necessary to permit payment of such Additional Trust Expenses. Shareholders do not have the option
of choosing to pay their proportionate shares of Additional Trust Expenses in lieu of having their shares of Additional Trust Expenses
paid by the Trust&rsquo;s disposition of bitcoins. Assuming that the Trust is treated a grantor trust for U.S. federal income tax
purposes, the transfer or sale of bitcoins to pay the Trust&rsquo;s expenses will be a taxable event for Shareholders. See &ldquo;U.S.
Federal Income Tax Consequences&mdash;Tax Consequences to U.S. Holders.&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-indent: 0.5in">Because the number of the Trust&rsquo;s
bitcoins will decrease as a consequence of the payment of the Sponsor&rsquo;s Fee in bitcoins or the sale of bitcoins to pay Additional
Trust Expenses (and the Trust will incur additional fees associated with converting bitcoins into U.S. Dollars), the number of
bitcoins represented by a Share will decline at such time and the Trust&rsquo;s Bitcoin Holdings may also decrease. Accordingly,
the Shareholders will bear the cost of the Sponsor&rsquo;s Fee and any Additional Trust Expenses.</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: 0.5in">The Sponsor will also cause the sale of
the Trust&rsquo;s bitcoins if the Sponsor determines that sale is required by applicable law or regulation or in connection with
the termination and liquidation of the Trust. The Sponsor will not be liable or responsible in any way for depreciation or loss
incurred by reason of any sale of bitcoins.</P>

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


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-variant: small-caps"><B></B></FONT></P>

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

<P STYLE="font: small-caps bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><A NAME="valkyries04272121a023"></A>BOOK-ENTRY-ONLY SHARES</P>

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 63.35pt 0pt 0;text-indent: 0in">The
Securities Depository; Book-Entry-Only System; Global Security</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 63.35pt 0pt 0;text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In accordance with the relevant provisions
of the Trust Documents, the Trust&rsquo;s Shares have been and will only be issued in book-entry-only form, so that individual
certificates will not be issued for the Shares but rather one or more global certificates will evidence all of the Shares outstanding
at any time.</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: 0.5in">DTC will act as securities depository for
the Shares. DTC is a limited-purpose trust company organized under the laws of the State of New York, 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&nbsp;17A of the Exchange Act. DTC was created to hold securities
of DTC Participants and to facilitate the clearance and settlement of transactions in such securities among the DTC Participants
through electronic book-entry changes. This eliminates the need for physical movement of securities certificates. DTC Participants
include securities brokers and dealers, banks, trust companies, clearing corporations, and certain other organizations, some of
whom (and/or their representatives) own DTC. Access to the DTC system is also available to others such as banks, brokers, dealers
and trust companies that clear through or maintain a custodial relationship with a DTC Participant, either directly or indirectly.
DTC is expected to agree with and represent to the DTC Participants that it will administer its book-entry system in accordance
with its rules and by-laws and the requirements of law.</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: 0.5in">Individual certificates will not be issued
for the Shares. Instead, one or more global certificates will be signed by the Transfer Agent on behalf of the Trust, registered
in the name of Cede&nbsp;&amp; Co., as nominee for DTC, and deposited with the Transfer Agent on behalf of DTC. The global certificates
will evidence all of the Shares outstanding at any time. The representations, undertakings and agreements made on the part of the
Trust in the global certificates are made and intended for the purpose of binding only the Trust and not the Transfer Agent or
the Sponsor individually.</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: 0.5in">Upon the settlement date of any creation,
transfer or redemption of Shares, DTC will credit or debit, on its book-entry registration and transfer system, the amount of the
Shares so created, transferred or redeemed to the accounts of the appropriate DTC Participants. The Transfer Agent and the Authorized
Participants will designate the accounts to be credited and charged in the case of creation or redemption of 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-indent: 0.5in">Beneficial ownership of the Shares will
be limited to DTC Participants, Indirect Participants and persons holding interests through DTC Participants and Indirect Participants.
Owners of beneficial interests in the Shares will be shown on, and the transfer of ownership will be effected only through, records
maintained by DTC (with respect to DTC Participants), the records of DTC Participants (with respect to Indirect Participants),
and the records of Indirect Participants (with respect to Shareholders that are not DTC Participants or Indirect Participants).
Shareholders are expected to receive from or through the DTC Participant maintaining the account through which the Shareholder
has purchased their Shares a written confirmation relating to such purchase.</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: 0.5in">Shareholders that are not DTC Participants
may transfer the Shares through DTC by instructing the DTC Participant or Indirect Participant through which the Shareholders hold
their Shares to transfer the Shares. Shareholders that are DTC Participants may transfer the Shares by instructing DTC in accordance
with the rules of DTC. Transfers of Shares will be made in accordance with standard securities industry practice.</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: 0.5in">DTC may decide to discontinue providing
its service with respect to Baskets and/or the Shares by giving notice to the Transfer Agent and the Sponsor. Under such circumstances,
the Sponsor will find a replacement for DTC to perform its functions at a comparable cost or, if a replacement is unavailable,
the Sponsor will act to terminate 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: 0.5in">The rights of the Shareholders generally
must be exercised by DTC Participants acting on their behalf in accordance with the rules and procedures of DTC. Because the Shares
can only be held in book-entry form through DTC and DTC Participants, investors must rely on DTC, DTC Participants and any other
financial intermediary through which they hold the Shares to receive the benefits and exercise the rights described in this section.
Investors should consult with their broker or financial institution to find out about procedures and requirements for securities
held in book-entry form through DTC.</P>

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


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-variant: small-caps"><B></B></FONT></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: 0; text-align: center"> <B><A NAME="valkyries04272121a023-a" TITLE="PROVISIONS OF LAW"></A>PROVISIONS
OF LAW</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; text-indent: 0.5in"> According to applicable law, indemnification of the Sponsor
is payable only if the Sponsor determined, in good faith, that the act, omission or conduct that gave rise to the claim for indemnification
was in the best interest of the Trust and the act, omission or activity that was the basis for such loss, liability, damage, cost
or expense was not the result of negligence or misconduct and such liability or loss was not the result of negligence or misconduct
by the Sponsor, and such indemnification or agreement to hold harmless is recoverable only out of the assets of the Trust. </P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"> <B>Provisions of Federal and State Securities Laws</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; text-indent: 0.5in"> This offering is made pursuant to federal and state securities
laws. The SEC and state securities agencies take the position that indemnification of the Sponsor that arises out of an alleged
violation of such laws is prohibited unless certain conditions are met. </P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"> These conditions require that no indemnification of the Sponsor
or any underwriter for the Trust may be made in respect of any losses, liabilities or expenses arising from or out of an alleged
violation of federal or state securities laws unless: (i) there has been a successful adjudication on the merits of each count
involving alleged securities law violations as to the party seeking indemnification and the court approves the indemnification;
(ii) such claim has been dismissed with prejudice on the merits by a court of competent jurisdiction as to the party seeking indemnification;
or (iii) a court of competent jurisdiction approves a settlement of the claims against the party seeking indemnification and finds
that indemnification of the settlement and related costs should be made, provided that, before seeking such approval, the Sponsor
or other indemnitee must apprise the court of the position held by regulatory agencies against such indemnification. These agencies
are the SEC and the securities administrator of the State or States in which the plaintiffs claim they were offered or sold interests. </P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"> <B>Provisions of the Securities Act </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; text-indent: 0.5in"> Insofar as indemnification for liabilities arising under the
Securities Act may be permitted to the Sponsor or directors, officers, or persons controlling the Trust, the Trust has been informed
that the SEC believes that such indemnification is against public policy as expressed in the Securities Act and is therefore unenforceable. </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: center"> <A NAME="valkyries04272121a023-b" TITLE="MANAGEMENT; VOTING BY SHAREHOLDERS"></A><B>MANAGEMENT;
VOTING BY SHAREHOLDERS</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; text-indent: 0.5in"> 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"> &nbsp; </P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"> <B><A NAME="valkyries04272121a023-c" TITLE="MEETINGS"></A>MEETINGS</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; text-indent: 0.5in"> Meetings of the Trust&rsquo;s Shareholders may be called by
the Sponsor for such purposes as may be prescribed by law or the Trust Agreement. All notices of meetings will be sent or otherwise
given to each Shareholder of record not less than seven nor more than one hundred twenty days before the date of the meeting in
the manner determined by the Sponsor. The notice will specify: (a) the place, date and hour of the meeting; and (b) the general
nature of the business to be transacted. Shareholders may vote in person, by proxy, or in any manner determined by the Sponsor
at any such meeting. Except when a larger quorum is required by applicable law or by the Trust Agreement, the presence (in person
or by ballot) of thirty- three and one-third percent (33 1/3%) of the Shares entitled to vote will constitute a quorum at a shareholders&rsquo;
meeting. Any action taken by Shareholders may be taken without a meeting so long as Shareholders holding a majority of Shares
entitled to vote on the matter (or such larger proportion thereof as will be required by any express provision of this Trust Agreement
or federal law) or holding a majority (or such larger proportion as aforesaid) of the Shares entitled to vote separately on the
matter consent to the action in writing or by other electronic means. Such consent will be treated for all purposes as a vote
taken at a meeting of shareholders. </P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"> <A NAME="valkyries04272121a023-d" TITLE="BOOKS AND RECORDS"></A><B>BOOKS
AND RECORDS</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; text-indent: 0.5in"> The Trust keeps its books of record and account at the office
of the Sponsor located at 100 Crescent Court, Floor 7, Dallas, Texas 75201, 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"> &nbsp; </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"> The Trust keeps a copy of the Trust Agreement on file in the
Sponsor&rsquo;s office, which will be available for inspection by any Shareholder at all times during the Sponsor&rsquo;s usual
business hours upon reasonable advance notice. </P>

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


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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-variant: small-caps"><B></B></FONT></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: 0; text-align: center"> <B><A NAME="valkyries04272121a023-e" TITLE="GOVERNING LAW; CONSENT TO DELAWARE JURISDICTION"></A>GOVERNING
LAW; CONSENT TO DELAWARE JURISDICTION</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; text-indent: 0.5in"> The rights of the Sponsor, the Trust, DTC (as registered owner
of the Trust&rsquo;s global certificate for Shares) and the Shareholders are governed by the laws of the State of Delaware. The
Sponsor, the Trust and DTC and, by accepting Shares, each DTC Participant and each Shareholder, consent to the exclusive jurisdiction
of the courts of the State of Delaware and any federal courts located in Delaware. Such consent is not required for any person
to assert a claim of Delaware jurisdiction over the Sponsor or the Trust. </P>

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

<P STYLE="font: small-caps bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><A NAME="valkyries04272121a024"></A>STATEMENTS, FILINGS AND
REPORTS</P>

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 63.35pt 0pt 0;text-indent: 0in">Statements,
Filings and Reports</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 63.35pt 0pt 0;text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">After the end of each fiscal year, the Sponsor
will cause to be prepared an annual report containing audited financial statements prepared in accordance with U.S. GAAP for the
Trust. 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 shall be filed with
the SEC and NYSE Arca and shall be distributed to such persons and in such manner, as shall be required by applicable laws, rules
and regulations.</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: 0.5in">The Sponsor is responsible for the registration
and qualification of the Shares under the federal securities laws and any other securities and blue sky laws of the United States
or any other jurisdiction as the Sponsor may select. The Sponsor will also prepare, or cause to be prepared, and file any periodic
reports or updates required under the Exchange Act.</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: 0.5in">The accounts of the Trust will be audited,
as required by law and as may be directed by the Sponsor, by independent registered public accountants designated by the Sponsor.
The accountants&rsquo; report will be furnished by the Sponsor to Shareholders upon request.</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: 0.5in">The Sponsor will make elections, file tax
returns and prepare, disseminate and file tax reports, as advised by its counsel or accountants and/or as required by any applicable
statute, rule or regulation.</P>

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 63.35pt 0pt 0;text-indent: 0in">Fiscal
Year</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 63.35pt 0pt 0;text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The fiscal year of the Trust is the period
ending December&nbsp;31 of each year. The Sponsor may select an alternate fiscal year.</P>

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


<!-- Field: Page; Sequence: 67; Value: 1 -->
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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-variant: small-caps"><B></B></FONT></P>

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

<P STYLE="font: small-caps bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><A NAME="valkyries04272121a025"></A>DESCRIPTION OF THE TRUST
DOCUMENTS [To Be Updated]</P>

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 63.35pt 0pt 0;text-indent: 0in">Description
of the Trust Agreement</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 63.35pt 0pt 0;text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The following is a description of the material
terms of the Trust Agreement. The Trust Agreement establishes the roles, rights and duties of the Sponsor and the Trustee.</P>

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 63.35pt 0pt 0;text-indent: 0in">The
Sponsor</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 63.35pt 0pt 0;text-indent: 0in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 63.35pt 0pt 0;text-indent: 0in"><I>Liability
of the Sponsor and Indemnification</I></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 63.35pt 0pt 0;text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Sponsor and its affiliates (each a &ldquo;Covered
Person&rdquo;) will not be liable to the Trust or any Shareholder for any action taken, or for refraining from taking any action
in good faith, having determined that such course of conduct was in the best interests of the Trust. However, the preceding liability
exclusion will not protect the Sponsor against any liability resulting from its own willful misconduct, bad faith or gross negligence
in the performance of its duties.</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: 0.5in">Each Covered Person will be indemnified
by the Trust and held harmless against any loss, judgment, liability, expense incurred or amount paid in settlement of any claim
sustained by it in connection with the Covered Person&rsquo;s activities for the Trust, without fraud, gross negligence, bad faith,
willful misconduct or a material breach of the Trust Agreement on the part of such indemnified party arising out of or in connection
with the performance of its obligations under the Trust Agreement and under each other agreement entered into by the Sponsor in
furtherance of the administration of the Trust (including, without limiting the scope of the foregoing, any Participant Agreement)
or any actions taken in accordance with the provisions of the Trust Agreement. Such indemnity shall include payment from the Trust
of the costs and expenses incurred by such indemnified party in defending itself against any claim or liability in its capacity
as Sponsor. Any amounts payable to an indemnified party may be payable in advance or shall be secured by a lien on the Trust. The
Sponsor may, in its discretion, undertake any action that it may deem necessary or desirable in respect of the Trust Agreement
and the interests of the Shareholders and, in such event, the legal expenses and costs of any such actions shall be expenses and
costs of the Trust and the Sponsor shall be entitled to be reimbursed therefor by the Trust.</P>

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 63.35pt 0pt 0;text-indent: 0in"><I>Fiduciary
and Regulatory Duties of the Sponsor</I></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 63.35pt 0pt 0;text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Sponsor is not effectively subject to
the duties and restrictions imposed on &ldquo;fiduciaries&rdquo; under both statutory and common law. Rather, the general fiduciary
duties that would apply to the Sponsor are defined and limited in scope by 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-indent: 0.5in">The Trust Agreement provides that in addition
to any other requirements of applicable law, no Shareholder shall 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)&nbsp;are not affiliates of one
another and (ii)&nbsp;collectively hold at least 10% of the outstanding Shares join in the bringing or maintaining of such action,
suit or other proceeding.</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: 0.5in">Beneficial owners may have the right, subject
to certain legal requirements, to bring class actions in federal court to enforce their rights under the federal securities laws
and the rules and regulations promulgated thereunder by the SEC. Beneficial owners who have suffered losses in connection with
the purchase or sale of their beneficial interests may be able to recover such losses from the Sponsor where the losses result
from a violation by the Sponsor of the anti-fraud provisions of the federal securities laws.</P>

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 63.35pt 0pt 0;text-indent: 0in"><I>Actions
Taken to Protect the Trust</I></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 63.35pt 0pt 0;text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Sponsor may, in its own discretion,
prosecute, defend, settle or compromise actions or claims at law or in equity that it considers necessary or proper to protect
the Trust or the interests of the Shareholders. The expenses incurred by the Sponsor in connection therewith (including the fees
and disbursements of legal counsel) will be expenses of the Trust and are deemed to be Additional Trust Expenses. The Sponsor will
be entitled to be reimbursed for the Additional Trust Expenses.</P>

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 63.35pt 0pt 0;text-indent: 0in"><I>Successor
Sponsors</I></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 63.35pt 0pt 0;text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">If the Sponsor is adjudged bankrupt or insolvent,
the Trustee may terminate and liquidate the Trust and distribute its remaining assets. Neither the Trustee nor the Administrator
has any obligation to appoint a successor sponsor or to assume the duties of the Sponsor, and will have no liability to any person
because the Trust is or is not terminated as described in the preceding sentence.</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: 0.5in"></P>

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 63.35pt 0pt 0;text-indent: 0in">The
Trustee</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 63.35pt 0pt 0;text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Trustee is a fiduciary under the Trust
Agreement and must satisfy the requirements of Section&nbsp;3807 of the Delaware Trust Statute. However, the fiduciary duties,
responsibilities and liabilities of the Trustee are limited by, and are only those specifically set forth in, the Trust Agreement.</P>

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 63.35pt 0pt 0;text-indent: 0in"><I>Limitation
on Trustee&rsquo;s Liability</I></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 63.35pt 0pt 0;text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Under the Trust Agreement, the Sponsor has
exclusive control of the management of all aspects of the activities of the Trust and the Trustee has only nominal duties and liabilities
to the Trust. The Trustee is appointed to serve as the trustee for the sole purpose of satisfying Section&nbsp;3807(a) of the DSTA
which requires that the Trust have at least one trustee with a principal place of business in the State of Delaware. The duties
of the Trustee are limited to (i)&nbsp;accepting legal process served on the Trust in the State of Delaware and (ii)&nbsp;the execution
of any certificates required to be filed with the Delaware Secretary of State which the Trustee is required to execute under the
DSTA.</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: 0.5in">To the extent the Trustee has duties (including
fiduciary duties) and liabilities to the Trust or the Shareholders under the DSTA, such duties and liabilities will be replaced
by the duties and liabilities of the Trustee expressly set forth in the Trust Agreement. The Trustee will have no obligation to
supervise, nor will it be liable for, the acts or omissions of the Sponsor, Transfer Agent, Administrator, Custodian or any other
person. Neither the Trustee, either in its capacity as trustee or in its individual capacity, nor any director, officer or controlling
person of the Trustee is, or has any liability as, the issuer, director, officer or controlling person of the issuer of Shares.
The Trustee&rsquo;s liability is limited solely to the express obligations of the Trustee as set forth in 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-indent: 0.5in">Under the Trust Agreement, the Sponsor has
the exclusive management, authority and control of all aspects of the activities of the Trust. The Trustee has no duty or liability
to supervise or monitor the performance of the Sponsor, nor does the Trustee have any liability for the acts or omissions of the
Sponsor. The existence of a trustee should not be taken as an indication of any additional level of management or supervision over
the Trust. The Trust Agreement provides that the management authority with respect to the Trust is vested directly in the Sponsor.
The Trust Agreement provides that the Trustee is not responsible or liable for the genuineness, enforceability, collectability,
value, sufficiency, location or existence of any of the bitcoins or other assets 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: bold 10pt Times New Roman, Times, Serif; margin: 0pt 63.35pt 0pt 0;text-indent: 0in"><I>Possible
Repayment of Distributions Received by Shareholders; Indemnification by Shareholders</I></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 63.35pt 0pt 0;text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Shares are limited liability investments.
Investors may not lose more than the amount that they invest plus any profits recognized on their investment. Although it is unlikely,
the Sponsor may, from time to time, make distributions to the Shareholders. However, Shareholders could be required, as a matter
of bankruptcy law, to return to the estate of the Trust any distribution they received at a time when the Trust was in fact insolvent
or in violation of its Trust Agreement. In addition, the Trust Agreement provides that Shareholders will indemnify the Trust for
any harm suffered by it as a result of Shareholders&rsquo; actions unrelated to the activities 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-indent: 0.5in">The foregoing repayment of distributions
and indemnity provisions (other than the provision for Shareholders indemnifying the Trust for taxes imposed upon it by a state,
local or foreign taxing authority, which is included only as a formality due to the fact that many states do not have statutory
trust statutes therefore the tax status of the Trust in such states might, theoretically, be challenged) are commonplace in statutory
trusts and limited partnerships.</P>

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 63.35pt 0pt 0;text-indent: 0in"><I>Indemnification
of the Trustee</I></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 63.35pt 0pt 0;text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Trustee and any of the officers, directors,
employees and agents of the Trustee shall be indemnified by the Trust as primary obligor and held harmless against any loss, damage,
liability, claim, action, suit, cost, expense, disbursement (including the reasonable fees and expenses of counsel), tax or penalty
of any kind and nature whatsoever, arising out of, imposed upon or asserted at any time against such indemnified person in connection
with the performance of its obligations under the Trust Agreement, the creation, operation or termination of the Trust or the transactions
contemplated therein; provided, however, that neither the Trust nor the Sponsor shall be required to indemnify any such indemnified person
for any such expenses which are a result of the willful misconduct, bad faith or gross negligence of such indemnified person. If
the Trust shall have insufficient assets or improperly refuses to pay such an indemnified person within 60 days of a request for
payment owed under the Trust Agreement, the Sponsor shall, as secondary obligor, compensate or reimburse the Trustee or indemnify, defend
and hold harmless such an indemnified person as if it were the primary obligor under the Trust Agreement. Any amount payable to
such an indemnified person under the Trust Agreement may be payable in advance and shall be secured by a lien on the Trust property.
The obligations of the Sponsor and the Trust to indemnify such indemnified persons under the Trust Agreement shall survive the termination
of this 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-indent: 0.5in"></P>

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 63.35pt 0pt 0;text-indent: 0in"><I>Holding
of Trust Property</I></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 63.35pt 0pt 0;text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Trust will hold and record the ownership
of the Trust&rsquo;s assets in a manner such that it will be owned for the benefit of the Shareholders for the purposes of, and
subject to and limited by the terms and conditions set forth in, the Trust Agreement. Other than issuance of the Shares, the Trust
will not create, incur or assume any indebtedness or borrow money from or loan money to any person. The Trustee may not commingle
its assets with those of any other person.</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: 0.5in">The Trustee may employ agents, attorneys,
accountants, auditors and nominees and will not be answerable for the conduct or misconduct of any such custodians, agents, attorneys
or nominees if such custodians, agents, attorney and nominees have been selected with reasonable care.</P>

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 63.35pt 0pt 0;text-indent: 0in"><I>Resignation,
Discharge or Removal of Trustee; Successor Trustees</I></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 63.35pt 0pt 0;text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Trustee may resign as Trustee by written
notice of its election so to do, delivered to the Sponsor with at least 180 days&rsquo; notice. The Sponsor may remove the Trustee
in its discretion. If the Trustee resigns or is removed, the Sponsor, acting on behalf of the Shareholders, shall appoint a successor
trustee. The successor Trustee will become fully vested with all of the rights, powers, duties and obligations of the outgoing
Trustee.</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: 0.5in">If the Trustee resigns and no successor
trustee is appointed within 180 days after the Trustee notifies the Sponsor of its resignation, the Trustee will terminate and
liquidate the Trust and distribute its remaining assets.</P>

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 63.35pt 0pt 0;text-indent: 0in"><I>Amendments
to the Trust Agreement</I></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 63.35pt 0pt 0;text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Trust Agreement can be amended by the
Sponsor in its sole discretion and without the Shareholders&rsquo; consent by making an amendment, a Trust Agreement supplemental
thereto, or an amended and restated trust agreement, provided that no such amendment or supplement may be made if it would adversely
affect the status of the Trust as a grantor trust for U.S. federal income tax purposes. Any such restatement, amendment and/or
supplement shall be effective on such date as designated by Sponsor in its sole discretion. However, any amendment to the Trust
Agreement that affects the duties, liabilities, rights or protections of the Trustee shall require the Trustee&rsquo;s prior written
consent, which it may grant or withhold in its sole discretion. Any amendment to the Trust Agreement that materially adversely
affects the interests of the Shareholders shall not be effective any earlier than 20 days after receipt by the affected Shareholders
of a notice provided by the Sponsor with respect to any such amendment.</P>

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 63.35pt 0pt 0;text-indent: 0in"><I>Termination
of the Trust</I></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 63.35pt 0pt 0;text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Trust will dissolve if any of the following
events occur:</P>

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

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

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD>The Trust is determined to be a &ldquo;money service business&rdquo; under the regulations promulgated by FinCEN under the
authority of the U.S. Bank Secrecy Act and is required to comply with certain FinCEN regulations thereunder, and the Sponsor has
made the determination that dissolution of the Trust is advisable;</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&nbsp;&#9679;</TD><TD>The Trust is required to obtain a license or make a registration under any state law regulating money transmitters, money services
business, providers of prepaid or stored value or similar entities, or virtual currency businesses, and the Sponsor has made the
determination that dissolution of the Trust is advisable;</TD></TR></TABLE>

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

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

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

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

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD>A certificate of dissolution or revocation of the Sponsor&rsquo;s charter is filed (and 90 days have passed after the date
of notice to the Sponsor of revocation without a reinstatement of its charter) or upon the withdrawal, removal, adjudication or
admission of bankruptcy or insolvency of the Sponsor, or an event of withdrawal unless (i)&nbsp;at the time there is at least one
remaining Sponsor or (ii)&nbsp;within 90 days of such event of withdrawal Shareholders holding at least a majority of the Shares
(not including Shares held by the Sponsor and its affiliates) agree in writing to continue the Trust and to select, effective as
of the date of such event, one or more successor Sponsors;</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD>Shareholders holding at least 75% of the outstanding Shares notify the Sponsor that they elect to dissolve the Trust, notice
of which is sent to the Sponsor not less than 90 days prior to the effective date of dissolution; or</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD>The Custodian resigns or is removed without replacement.</TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Sponsor may, in its sole
discretion, dissolve the Trust if any of the following events occur:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD>The SEC determines that the Trust is an investment company required to be registered under the Investment Company Act of 1940;</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD>The CFTC determines that the Trust is a commodity pool under the CEA;</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD>The Trust becomes insolvent or bankrupt;</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD>All of the Trust&rsquo;s bitcoins are sold;</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD>The Sponsor determines that the size of the Trust Estate in relation to the expenses of the Trust make it unreasonable or imprudent
to continue the Trust;</TD></TR></TABLE>

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

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

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&nbsp;&#9679;</TD><TD>The Trustee notifies the Sponsor of the Trustee&rsquo;s election to resign and the Sponsor does not appoint a successor trustee
within 180 days.</TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The death, legal disability, bankruptcy,
insolvency, dissolution, or withdrawal of any Shareholder (as long as such Shareholder is not the sole Shareholder of the Trust)
shall not result in the termination of the Trust, and such Shareholder, his estate, custodian or personal representative shall
have no right to withdraw or value such Shareholder&rsquo;s Shares. Each Shareholder (and any assignee thereof) expressly agrees
that in the event of his death, he waives on behalf of himself and his estate, and he directs the legal representative of his estate
and any person interested therein to waive the furnishing of any inventory, accounting or appraisal of the assets of the Trust
and any right to an audit or examination of the books of the Trust, except for such rights as are set forth in Article&nbsp;VIII
of the Trust Agreement relating to the books of account and reports 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-indent: 0.5in">If the Trust is forced to liquidate, the
Trust will be liquidated under the Sponsor&rsquo;s direction. The Sponsor, on behalf of the Trust, will engage directly with either
accessible Bitcoin Exchanges or over-the-counter bitcoin markets to liquidate the Trust&rsquo;s bitcoin as promptly as possible
while obtaining the best fair value possible. The proceeds therefrom will be applied and distributed in the following order of
priority: (a)&nbsp;to the expenses of liquidation and termination and to creditors, including Shareholders who are creditors, to
the extent otherwise permitted by law, in satisfaction of liabilities of the Trust other than liabilities for distributions to
Shareholders and (b)&nbsp;to the holders of Shares pro rata in accordance with the respective percentage of percentages of Shares
that they hold. It is expected that the Sponsor would be subject to the same regulatory requirements as the Trust, and therefore,
the markets available to the Sponsor will be the same markets available to the Trust.</P>

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 63.35pt 0pt 0;text-indent: 0in"><I>Governing
Law; Consent to New York Jurisdiction</I></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 63.35pt 0pt 0;text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Trust Agreement and the rights of the
Sponsor, Trustee, DTC and Shareholders under the Trust Agreement are governed by the laws of the State of Delaware. The Custodian
Agreement and Participant Agreements are governed by the laws of the state of New York. The Sponsor, the Trustee and DTC and, by
accepting Shares, each DTC Participant and each Shareholder, consent to the jurisdiction of the courts of the State of New York
and any federal courts located in the borough of Manhattan in New York City.</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: 0.5in"></P>

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 63.35pt 0pt 0;text-indent: 0in">Description
of the Custodian Agreement</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 63.35pt 0pt 0;text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Custodian Agreement establishes the
rights and responsibilities of the Custodian, Sponsor, Trust and Authorized Participants with respect to the Custodial Coins in
the Wallet Account and Vault Account, which together with any associated subaccounts, constitute the Trust&rsquo;s Bitcoin Account,
which is maintained and operated by the Custodian on behalf of the Trust. For a general description of the Custodian&rsquo;s obligations,
see &ldquo;The Custodian&mdash;The Custodian&rsquo;s Role.&rdquo;</P>

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 63.35pt 0pt 0;text-indent: 0in"><I>Location
of Bitcoins; Accounts</I></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 63.35pt 0pt 0;text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Trust&rsquo;s bitcoins are stored on
multi-signature addresses on the Bitcoin blockchain. The private keys required to transfer the Trust&rsquo;s bitcoins are stored
in Vaults located around the world with physical, cryptographic and jurisdictional security layers.</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: 0.5in">Vaults are located deep underground in geographically
dispersed locations across the world, including but not limited to the United States, Europe, including Switzerland, and South
America. Confidential information such as the private keys and cryptographic materials are physically stored on offline devices
that never have and never will have access to the internet or any other kind of network. Vault locations are protected by extraordinary
security measures, including human, biometric and automated systems, 24 hours a day, 7 days a week. Vaults incorporate multiple
layers of the most advanced forms of cryptographic security, multi-factor authentication and private key segmentation. The geographic
dispersion of vaults is designed to protect bitcoins from being seized by any government entity. Even if a government were to determine
a way to bypass the physical and cryptographic layers of security in one jurisdiction, the other vault locations would remain uncompromised
and the bitcoins would remain safe. For more information, see &ldquo;Custody of the Trust&rsquo;s Bitcoins.&rdquo;</P>

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 63.35pt 0pt 0;text-indent: 0in"><I>Access
to the Bitcoin Account; Deposits, Withdrawals and Storage</I></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 63.35pt 0pt 0;text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Custodian will use its best efforts
to keep in safe custody of the Custodial Coins. The Bitcoin Account will be controlled at all times by or on behalf of the Custodian
by an affiliate of the Custodian. The Custodian Agreement provides that all Custodial Coins credited to the Bitcoin Account must
be appropriately identified as being held for the Sponsor or Trust and held in the Bitcoin Account on a non-fungible basis. The
Custodial Coins cannot be commingled with other bitcoins held by the Custodian and cannot be deposited or held with any third-party
depository, custodian, clearance system or wallet without prior written consent of the Sponsor or 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: 0.5in">The Sponsor or Trust will be able to transfer
bitcoins from the Bitcoin Account to another bitcoin account that is not maintained or controlled by the Custodian. Except in the
case of certain prohibited activities of the Trust and the Sponsor, the Custodian will not suspend the Trust or Sponsor&rsquo;s
access to the Bitcoin Account unless the Trust or Sponsor engages in certain prohibited activities, and any suspension of access
to the Bitcoin Account that is not permitted will constitute a breach of the Custodian Agreement. The Custodian may restrict access
or use of the Bitcoin Account by any Authorized Participants if, in the Custodian&rsquo;s good faith belief, it is reasonably necessary
to comply with the Custodian&rsquo;s anti-money laundering programs and policies or any requirements under applicable law, and
would, except with respect to the Trust or Sponsor&rsquo;s actions that caused or contributed to such restriction, constitute a
Loss as defined in the Custodian 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-indent: 0.5in">The Custodian will provide the Sponsor and
the Administrator with the information that is necessary for Authorized Participants and Liquidity Providers to make deposits to
the Bitcoin Account. To support the Trust&rsquo;s ordinary course deposits and withdrawals, which involve deposits from and withdrawals
to bitcoin accounts owned by Authorized Participants and Liquidity Providers, the Custodian&rsquo;s services will allow the Sponsor
and the Trust to receive a bitcoin address for deposits by Authorized Participants and Liquidity Providers, and to initiate withdrawals
to bitcoin addresses controlled by Authorized Participants and Liquidity Providers. The Custodian will use its best efforts to
design and put in place a secure procedure to allow the Sponsor and the Administrator to receive such addresses, and to facilitate
such withdrawals.</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: 0.5in">The Custodian Agreement provides that the
Trust, the Sponsor and certain designated officers and employees of the Trust and Sponsor will be able to access the Bitcoin Account
via the Custodian&rsquo;s services at all times, in order to check information about the Bitcoin Account, add bitcoins to the Bitcoin
Account, withdraw bitcoins from the Wallet Account and initiate withdrawal of bitcoins from the Vault Account. The Custodian Agreement
further provides that the Trust&rsquo;s and Sponsor&rsquo;s auditors or third-party accountants upon reasonable notice, have inspection
rights to visit and inspect the Bitcoin Account. The Sponsor has exercised its inspection rights of two of the vault locations
that comprise the Bitcoin Account.</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: 0.5in"></P>

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<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: 0.5in">Under the Custodian Agreement, the Custodian
will credit all bitcoins properly sent to the Custodian via the Custodian&rsquo;s services by authorized persons. The Custodian
will notify the Trust or Sponsor and the relevant authorized persons of the receipt and credit of Custodial Coins to the Bitcoin
Account. Such credit will be made on the same business day as the transaction is finalized by the Bitcoin Network, except that
transactions finalized after 5:00 p.m., New York time may be processed on the next business day.</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: 0.5in">The Custodian will only allow withdrawals
of bitcoins from the Bitcoin Account by authorized persons. Such withdrawals will be made on the same business day as the transaction
is finalized by the Bitcoin Network, except that transactions finalized after 5:00 p.m., New York time may be processed on the
next business day.</P>

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 63.35pt 0pt 0;text-indent: 0in"><I>Security
of the Account</I></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 63.35pt 0pt 0;text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Under the Custodian Agreement, the Custodian
must use its best efforts to keep private and public keys secure, and may not disclose such keys to the Sponsor, Trust or any other
individual or entity.</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: 0.5in">The Trust, Sponsor and Custodian will comply
with certain security procedures with respect to the delivery or authentication of instructions and will use its best efforts to
reasonably safeguard any codes, passwords or similar devices. Under the Custodian Agreement, the Custodian must exercise best efforts
in all Bitcoin Network transactions executed in connection with its services.</P>

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 63.35pt 0pt 0;text-indent: 0in"><I>Right
to Refuse Transfers or Amend Transfer Procedures</I></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 63.35pt 0pt 0;text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Sponsor will reject a redemption order
if the order is not in proper form as described in the Participant Agreement or if the fulfillment of the order, in the opinion
of its counsel, might be unlawful. The Sponsor may suspend redemption orders if it determines, in its sole discretion, that a suspension
is necessary or desirable. Suspension of redemption orders at any time and for any reason may have adverse effects on the Bitcoin
Index Price and the Trust&rsquo;s Bitcoin Holdings 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: bold 10pt Times New Roman, Times, Serif; margin: 0pt 63.35pt 0pt 0;text-indent: 0in"><I>Record
Keeping</I></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 63.35pt 0pt 0;text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Custodian will keep appropriate records
of its services pursuant to the Custodian Agreement, and such records must be retained by the Custodian for no less than seven
years. The Custodian Agreement also provides that the Custodian will permit, to the extent it may legally do so, the Trust or Sponsor&rsquo;s
auditors or third-party accountants, upon reasonable notice, to inspect, take extracts from and audit the records that it maintains.
The Custodian is obligated to provide a copy of any audit report prepared by its internal or independent auditors to the Trust
or 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-indent: 0.5in">Once per calendar year, the Sponsor or Trust
may request that the Custodian deliver a certificate signed by a duly authorized officer to certify that the Custodian has complied
and is currently in compliance with the Custodian Agreement and that all representations and warranties made by that Custodian
in the Custodian Agreement are true and correct as of the certificate date and have been true and correct throughout the preceding
year. The Sponsor and Trust are further entitled to request, not more than once per calendar year, that the Custodian produce or
commission a new Services Organization Controls 1 report and promptly deliver it to the Sponsor and Trust within a reasonable term
that shall not be less than 30 days.</P>

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 63.35pt 0pt 0;text-indent: 0in"><I>Standard
of Care; Limitations of Liability</I></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 63.35pt 0pt 0;text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Custodian will use best efforts in performing
its obligations under the Custodian Agreement. The Custodian is liable to the Sponsor and the Trust for the loss of any Custodial
Coins to the extent that the Custodian caused such loss, even if the Custodian meets its duty of exercising best efforts.</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: 0.5in">The Sponsor, Trust or Custodian&rsquo;s
total liability under the Custodian Agreement will never exceed the greater of the fair market value of the amount of Custodial
Coins either at the time in which events giving rise to the liability occurred or at the time the Custodian notifies the Sponsor
or Trust in writing or the Sponsor or Trust otherwise has actual knowledge of the events giving rise to the liability. The Custodian,
Sponsor and Trust are not liable to each other for any indirect, incidental, special or consequential damages whether or not such
losses were foreseeable or within contemplation of the parties. Furthermore, the Custodian is not responsible or liable to the
Trust and the Sponsor for a failure or inability to perform under the Custodian Agreement or for loss of Custodial Coins due to
circumstances beyond its reasonable control when exercising best efforts, including acts of God, terrorist activities, war, rebellion
or military or usurped power or confiscation. A cybersecurity attack, hack or other intrusion by a third party or by someone associated
with Custodian is not a circumstance that is beyond Custodian&rsquo;s reasonable control when exercising best efforts.</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: 0.5in"></P>

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<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: 0.5in">Pursuant to the Custodian Agreement, the
Custodian does not guarantee the value of the Custodial Coins. The Custodian is not responsible for the services provided by the
Bitcoin Network, such as verifying and confirming transactions that are submitted to the Bitcoin Network. Furthermore, the Custodian
cannot cancel or reverse a transaction that has been submitted to the Bitcoin Network. To the extent the Custodian does not cause
or contribute to a loss that the Trust or Sponsor suffers in connection with any bitcoin transaction initiated pursuant to the
Custodian&rsquo;s services, the Custodian will have no liability for such loss.</P>

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 63.35pt 0pt 0;text-indent: 0in"><I>Indemnity</I></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 63.35pt 0pt 0;text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Each of the Custodian and the Sponsor and
the Trust has agreed to indemnify and hold harmless the other such parties from and against any and all damages arising out of
or caused by (whether directly or indirectly) a third-party claim relating to the nonperformance or misperformance by the Custodian,
Sponsor or Trust, as the case may be, of its duties and obligations under the Custodian Agreement as well as a party&rsquo;s reasonable
reliance on any representations or warranties made by the Custodian, the Sponsor or Trust, as the case may be, under the Custodian
Agreement that were or are in fact untrue. The Custodian has further agreed to indemnify and hold harmless the Sponsor and Trust
from and against any and all damages arising out of or caused by a third-party claim relating to the holding of the Trust&rsquo;s
bitcoins by the Custodian, including any loss or damage caused by any act or omission of any employee of the Custodian or any agent,
representative or independent contractor engaged by the Custodian, whether or not such act or omission occurred within the scope
of his employment or engagement.</P>

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 63.35pt 0pt 0;text-indent: 0in"><I>Fees
and Expenses</I></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 63.35pt 0pt 0;text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Custodian is entitled to fees for services,
which may be increased upon 60 days written notice to the Sponsor or Trust. The Custodian must receive its fees within 30 days
of the Custodian&rsquo;s invoice. The Sponsor and the Trust will be liable for all taxes with respect to any bitcoins held on its
behalf or any transaction related to these bitcoins. The Trust, as primary obligor, and the Sponsor as secondary obligor, will
indemnify the Custodian for any damages related to any such tax, other than a tax arising out of the Custodian&rsquo;s negligence
or willful misconduct.</P>

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 63.35pt 0pt 0;text-indent: 0in"><I>Termination</I></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 63.35pt 0pt 0;text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Custodian Agreement provides for annual,
automatically renewable terms. Generally, the Custodian, Trust or Sponsor may terminate the Custodian Agreement for any reason
upon 60 days&rsquo; written prior notice. In certain situations, including a material breach or failure to perform obligations
of the Custodian Agreement, the Custodian, Sponsor and Trust may terminate the Custodian Agreement immediately after providing
written notice. Upon termination of the Custodian Agreement, the Custodian must promptly deliver all the Trust&rsquo;s bitcoins
to the Sponsor or Trust as of the effective date of termination, together with copies of the records maintained pursuant to the
Custodian Agreement.</P>

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 63.35pt 0pt 0;text-indent: 0in"><I>Governing
Law</I></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 63.35pt 0pt 0;text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Custodian Agreement is governed by New
York law.</P>

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


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-variant: small-caps"><B></B></FONT></P>

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

<P STYLE="font: small-caps bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><A NAME="valkyries04272121a026"></A>U.S. FEDERAL INCOME TAX
CONSEQUENCES</P>

<P STYLE="font: small-caps bold 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-indent: 0.5in">Subject to the discussion below in &ldquo;Tax
Treatment of the Trust&rdquo; and &ldquo;Uncertainty Regarding the U.S. Federal Income Tax Treatment of Bitcoins,&rdquo; the following
discussion constitutes the opinion of Chapman and Cutler LLP, special tax counsel to the Trust, regarding the material U.S. federal
income tax consequences of the ownership of Shares. This discussion does not describe all of the tax consequences that may be relevant
to a beneficial owner of Shares in light of the beneficial owner&rsquo;s particular circumstances, including tax consequences applicable
to beneficial owners subject to special rules, such as:</P>

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

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

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

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

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD>traders in securities or commodities that have elected to apply a mark-to-market method of tax accounting in respect thereof;</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD>persons holding Shares as part of a hedge, &ldquo;straddle,&rdquo; integrated transaction or similar transaction;</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD>persons holding Shares acquired by them as part of a Creation Basket or redeeming Shares in exchange for the underlying bitcoins
represented by the redeemed Shares;</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD>U.S. Holders (as defined below) whose functional currency is not the U.S. dollar;</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD>entities or arrangements classified as partnerships for U.S. federal income tax purposes;</TD></TR></TABLE>

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

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

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

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

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD>tax-exempt entities, including individual retirement accounts.</TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">This discussion applies only to Shares that
are held as capital assets and does not address alternative minimum tax consequences or consequences of the Medicare contribution
tax on net investment income.</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: 0.5in">If an entity or arrangement that is classified
as a partnership for U.S. federal income tax purposes holds Shares, the U.S. federal income tax treatment of a partner will generally
depend on the status of the partner and the activities of the partnership. Partnerships holding Shares and partners in those partnerships
are urged to consult their tax advisers about the particular U.S. federal income tax consequences of owning 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-indent: 0.5in">This discussion is based on the Code, administrative
pronouncements, judicial decisions and final, temporary and proposed Treasury regulations as of the date hereof, changes to any
of which subsequent to the date hereof may affect the tax consequences described herein. Prospective investors are urged to consult
their tax advisers about the application of the U.S.&nbsp;federal income tax laws to their particular situations, as well as any
tax consequences arising under the laws of any state, local or foreign taxing jurisdiction.</P>

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 63.35pt 0pt 0;text-indent: 0in">Tax
Treatment of the Trust</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 63.35pt 0pt 0;text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Sponsor intends to take the position
that the Trust will be 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, a <I>pro&nbsp;rata </I>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-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">If the IRS were successful in asserting
that 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, although due to the uncertain treatment of bitcoins for U.S.&nbsp;federal income tax purposes (discussed below),
there can be no assurance in this regard. 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. In addition, tax information reports provided to Shareholders
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 would be classified as a corporation for such purposes. In that event, the Trust would be subject to entity-level
U.S. federal income tax (currently at a maximum rate of 21%) on its net taxable income and certain distributions made by the Trust
to Shareholders would be taxable as dividends to the extent of the Trust&rsquo;s current and accumulated earnings and profits (which,
in the case of Non-U.S. Holders (as defined below), generally would be subject to U.S. federal withholding tax at a 30% rate (or
a lower rate provided by an applicable income tax treaty)).</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: 0.5in"></P>

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<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: 0.5in">The remainder of this discussion is based
on the assumption that the Trust will be treated as a grantor trust for U.S.&nbsp;federal income tax purposes.</P>

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 63.35pt 0pt 0;text-indent: 0in">Uncertainty
Regarding the U.S. Federal Income Tax Treatment of Bitcoins</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 63.35pt 0pt 0;text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">As discussed below, each beneficial owner
of Shares generally will be treated for U.S. federal income tax purposes as the owner of an undivided interest in the bitcoins
held in the Trust. Many significant aspects of the U.S. federal income tax treatment of bitcoins are uncertain, and the Sponsor
does not intend to request a ruling from the IRS on these issues. On March&nbsp;25, 2014, the IRS released a notice (the &ldquo;Notice&rdquo;),
which discusses certain aspects of the treatment of virtual currencies, such as bitcoins, for U.S. federal income tax purposes.
In the Notice, the IRS stated that, for U.S. federal income tax purposes, (i)&nbsp;bitcoins are &ldquo;property&rdquo; that is
not currency and (ii)&nbsp;bitcoins may be held as capital assets. There can be no assurance, however, that the IRS will not alter
its position with respect to bitcoins in the future or that a court would uphold the treatment set forth in the Notice. In addition,
legislation has been introduced that would, if enacted, cause bitcoins to be treated as currency for U.S. federal income tax purposes.
If bitcoins were properly treated as currency for U.S. federal income tax purposes, gain recognized on the disposition of bitcoins
would constitute ordinary income, and losses recognized on the disposition of bitcoin could be subject to special reporting requirements
applicable to &ldquo;reportable transactions.&rdquo; The remainder of this discussion assumes that bitcoins are properly treated
for U.S. federal income tax purposes as property that is not currency. Special tax counsel to the Trust expresses no opinion regarding
these aspects of the U.S. federal income tax treatment of bitcoins.</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: 0.5in">The Notice does not address other significant
aspects of the U.S. federal income tax treatment of bitcoins, including: (i)&nbsp;whether bitcoins are properly treated as &ldquo;commodities&rdquo;
for U.S. federal income tax purposes; (ii)&nbsp;whether bitcoins are properly treated as &ldquo;collectibles&rdquo; for U.S. federal
income tax purposes; (iii)&nbsp;the proper method of determining a holder&rsquo;s holding period and tax basis for bitcoins acquired
at different times or at varying prices; and (iv)&nbsp;whether and how a holder of bitcoins acquired at different times or at varying
prices may designate, for U.S. federal income tax purposes, which of the bitcoins is transferred in a subsequent sale, exchange
or other disposition. In 2019, the IRS Issued an FAQ that addressed some, but not all of these issues, but it has not confirmed
the answers provided in the FAQ in a manner upon which taxpayers may rely.</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: 0.5in">Prospective investors are urged to consult
their tax advisers regarding the substantial uncertainty regarding the tax consequences of an investment in bitcoins.</P>

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 63.35pt 0pt 0;text-indent: 0in">Tax
Consequences to U.S. Holders</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 63.35pt 0pt 0;text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">As used herein, the term &ldquo;U.S. Holder&rdquo;
means a beneficial owner of a Share for U.S. federal income tax purposes that is:</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD>an individual who is a citizen or resident of the United States for U.S. federal income tax purposes;</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD>a corporation, or other entity treated as a corporation for U.S. federal income tax purposes, created or organized in or under
the laws of the United States or of any political subdivision thereof; or</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD>an estate or trust the income of which is subject to U.S. federal income taxation regardless of its source.</TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">For U.S. federal income tax purposes, each
U.S. Holder will be treated as the owner of an undivided interest in the bitcoins held in the Trust and will be treated as directly
realizing its <I>pro rata </I>share of the Trust&rsquo;s income, gains, losses and deductions. When a U.S. Holder purchases Shares
for cash, the U.S. Holder&rsquo;s initial tax basis in its <I>pro rata </I>share of the bitcoins held in the Trust will be equal
to the amount paid for the Shares. <B>This discussion assumes that each U.S. Holder will acquire all of its Shares for cash on
the same date and at the same price per Share. U.S. Holders that acquire, or contemplate acquiring, multiple lots of Shares at
different times or prices are urged to consult their tax advisers regarding their tax bases and holding periods in their <I>pro
rata </I>shares of the bitcoins held in the Trust.</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-indent: 0.5in"></P>

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<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: 0.5in">When the Trust transfers bitcoins to the
Sponsor as payment of the Sponsor&rsquo;s Fee, or sells bitcoins to fund payment of any Additional Trust Expenses, each U.S. Holder
will be treated as having sold its <I>pro rata </I>share of those bitcoins for their fair market value at that time (which, in
the case of bitcoins sold by the Trust, generally will be equal to the cash proceeds received by the Trust in respect thereof).
As a result, each U.S. Holder will recognize gain or loss in an amount equal to the difference between (i)&nbsp;the fair market
value of the U.S. Holder&rsquo;s <I>pro rata </I>share of the bitcoins that were transferred and (ii)&nbsp;the U.S. Holder&rsquo;s
tax basis for its <I>pro rata </I>share of the bitcoins that were transferred. Assuming that bitcoins are not treated as currency
for U.S. federal income tax purposes, any such gain or loss will generally be short-term capital gain or loss if the U.S. Holder
has held its Shares for one year or less and long-term capital gain or loss if the U.S. Holder has held its Shares for more than
one year. The deductibility of capital losses may be subject to significant limitations. A U.S. Holder&rsquo;s tax basis in its
<I>pro rata </I>share of any bitcoins transferred by the Trust generally will be determined by multiplying the tax basis of the
U.S. Holder&rsquo;s <I>pro rata </I>share of all of the bitcoins held in the Trust immediately prior to the transfer by a fraction
the numerator of which is the amount of bitcoins transferred and the denominator of which is the total amount of bitcoins held
in the Trust immediately prior to the transfer. Immediately after the transfer, the U.S. Holder&rsquo;s tax basis in its <I>pro
rata </I>share of the bitcoins remaining in the Trust will be equal to the tax basis in its <I>pro rata </I>share of the bitcoins
held in the Trust immediately prior to the transfer, less the portion of that tax basis allocable to its <I>pro rata </I>share
of the bitcoins transferred.</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: 0.5in">U.S. Holders may deduct their respective
<I>pro rata </I>shares of the expenses incurred by the Trust to the same extent as if the expenses were directly incurred by the
U.S. Holders. U.S. Holders&rsquo; <I>pro rata</I> shares of the expenses incurred by the Trust will be treated as &ldquo;miscellaneous
itemized deductions&rdquo; for U.S. federal income tax purposes. If a U.S. Holder is an individual, trust or estate, the U.S. Holder&rsquo;s
share of these expenses will be deductible for regular U.S. federal income tax purposes only to the extent that the U.S. Holder&rsquo;s
share of the expenses, when combined with other &ldquo;miscellaneous itemized deductions,&rdquo; exceeds 2% of the U.S. Holder&rsquo;s
adjusted gross income for the particular year, will not be deductible for U.S.&nbsp;federal alternative minimum tax purposes and
will be subject to certain other limitations on deductibility.</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: 0.5in">On a sale or other disposition of Shares,
a U.S. Holder will be treated as having sold the bitcoins underlying such Shares. Accordingly, the Shareholder generally will recognize
gain or loss in an amount equal to the difference between (i)&nbsp;the amount realized on the sale of the Shares and (ii)&nbsp;the
portion of the U.S. Holder&rsquo;s tax basis in its <I>pro rata </I>share of the bitcoins held in the Trust that is attributable
to the Shares disposed of. Such tax basis generally will be determined by multiplying the tax basis of the U.S. Holder&rsquo;s
<I>pro rata </I>share of all of the bitcoins held by the Trust immediately prior to such sale or other disposition by a fraction
the numerator of which is the number of Shares disposed of and the denominator of which is the total number of Shares held by such
U.S. Holder immediately prior to such sale or other disposition. Assuming that bitcoins are not treated as currency for U.S. federal
income tax purposes, that gain or loss will generally be short-term capital gain or loss if the U.S. Holder has held its Shares
for one year or less and long-term capital gain or loss if the U.S.&nbsp;Holder has held its Shares for more than one year.</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: 0.5in">After any sale (or other disposition) of
fewer than all of a U.S. Holder&rsquo;s Shares, the U.S. Holder&rsquo;s tax basis in its <I>pro&nbsp;rata </I>share of the bitcoins
held in the Trust immediately after the sale (or other disposition) generally will equal the tax basis in its <I>pro rata </I>share
of the total amount of the bitcoins held in the Trust immediately prior to the sale, less the portion of that tax basis that is
taken into account in determining the amount of gain or loss recognized by the U.S. Holder upon the sale (or other disposition)
(or, in the case of a redemption, which is treated as the basis of the bitcoins received by the Shareholder in the redemption).</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: 0.5in">Any brokerage or other transaction fee incurred
by a U.S. Holder in purchasing Shares will be added to the U.S.&nbsp;Holder&rsquo;s tax basis in the underlying assets of the Trust.
Similarly, any brokerage fee or other transaction fee incurred by a U.S. Holder in selling Shares will reduce the amount realized
by the U.S. Holder with respect to the sale.</P>

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 63.35pt 0pt 0;text-indent: 0in">Tax
Consequences to Non-U.S. Holders</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 63.35pt 0pt 0;text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">As used herein, the term &ldquo;non-U.S.
Holder&rdquo; means a beneficial owner of a Share for U.S. federal income tax purposes that is, for such purposes:</P>

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

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

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

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

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD>a foreign estate or trust.</TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The term &ldquo;non-U.S. Holder&rdquo; does
not include (i)&nbsp;nonresident alien individuals present in the United States for 183&nbsp;days or more in a taxable year, (ii)&nbsp;former
U.S. citizens and certain expatriated entities or (iii)&nbsp;persons whose Shares are effectively connected with the conduct of
a trade or business in the United States. Prospective investors described in the preceding sentence should consult their tax advisers
regarding the U.S. federal income tax consequences of owning 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-indent: 0.5in"></P>

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<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: 0.5in">The Trust does not expect to generate taxable
income other than gain (if any) that will be recognized on the transfer of bitcoins in payment of the Sponsor&rsquo;s Fee and the
sale of bitcoins in connection with the payment of any Additional Trust Expenses. A non-U.S. Holder generally will not be subject
to U.S. federal income or withholding tax with respect to any such gain or with respect to any gain the non-U.S. Holder recognizes
upon a sale of Shares. However, if the income from the trust is effectively connected to a U.S. trade or business, or, in the case
of an individual, the individual is in the United States more than 180 days, the gains may be subject to U.S. tax.</P>

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 63.35pt 0pt 0;text-indent: 0in">U.S.
Information Reporting and Backup Withholding</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 63.35pt 0pt 0;text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Trust or the appropriate broker will
file certain information returns with the IRS and provide holders of Shares with information regarding their shares of the Trust&rsquo;s
annual income (if any) and expenses in accordance with applicable Treasury regulations.</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: 0.5in">A U.S. Holder may be subject to backup withholding
in certain circumstances if it fails to provide its taxpayer identification number or to comply with certain certification procedures.
In order to avoid the information reporting and backup withholding requirements, a non-U.S. Holder may have to comply with certification
procedures to establish that it is not a U.S. person. The amount of any backup withholding will be allowed as a credit against
the holder&rsquo;s U.S. federal income tax liability and may entitle the holder to a refund, provided that the required information
is furnished to the IRS.</P>

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


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

<P STYLE="font: small-caps bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><A NAME="valkyries04272121a027"></A>ERISA AND RELATED CONSIDERATIONS</P>

<P STYLE="font: small-caps bold 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-indent: 0.5in">The Employee Retirement Income Security
Act of 1974, as amended (&ldquo;ERISA&rdquo;), and/or Code section 4975 impose certain requirements on 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 ERISA and/or the Code (collectively, &ldquo;Plans&rdquo;), and on persons who are fiduciaries with respect to the investment
of assets treated as &ldquo;plan assets&rdquo; of a Plan. Government plans and some church plans are not subject to the fiduciary
responsibility provisions of ERISA or the provisions of section 4975 of the Code, but may be subject to substantially similar rules
under state or other federal law.</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: 0.5in">In contemplating an investment of a portion
of Plan assets in 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, including, but not limited to (1)&nbsp;whether the fiduciary has the authority to make the
investment under the appropriate governing plan instrument, (2)&nbsp;whether the investment would constitute a direct or indirect
non-exempt prohibited transaction with a party in interest, (3)&nbsp;the Plan&rsquo;s funding objectives, and (4)&nbsp;whether
under the general fiduciary standards of investment prudence and diversification such investment is appropriate for the Plan, 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.</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: 0.5in">It is anticipated that the Shares will constitute
&ldquo;publicly-held offered securities&rdquo; as defined in the Department of Labor Regulations &sect; 2510.3-101(b)(2). Accordingly,
Shares purchased by a Plan, and not the Plan&rsquo;s interest in the underlying bitcoins held in the Trust represented by the Shares,
should be treated as assets of the Plan, for purposes of applying the &ldquo;fiduciary responsibility&rdquo; and &ldquo;prohibited
transaction&rdquo; rules of ERISA and the Code.</P>

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 63.35pt 0pt 0;text-indent: 0in">Investment
by Certain Retirement Plans</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 63.35pt 0pt 0;text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Individual retirement accounts (IRA) 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 consequences of a purchase of Shares.</P>

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


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-variant: small-caps"><B></B></FONT></P>

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

<P STYLE="font: small-caps bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><A NAME="valkyries04272121a028"></A>PLAN OF DISTRIBUTION</P>

<P STYLE="font: small-caps bold 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-indent: 0.5in">The Trust issues Shares in Baskets only
to Authorized Participants in exchange for deposits of bitcoins on a continuous basis. The Trust does not issue fractions of a
Basket. 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 Securities Act, will be occurring. Authorized Participants, other broker-dealers and other persons
are cautioned that some of their activities will result in their being deemed participants in a distribution in a manner which
would render them statutory underwriters and subject them to the prospectus delivery and liability provisions of the Securities
Act. For example, an Authorized Participant, other broker-dealer firm or its client will be deemed a statutory underwriter if it
purchases a Basket from the Trust, breaks the Basket down into its constituent Shares and sells the Shares directly to its customers,
or if it chooses to couple the creation of a new Basket with an active selling effort involving solicitation of secondary market
demand for the Shares. 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 could lead to designation as an underwriter
and subject them to the prospectus delivery and liability provisions of the Securities Act.</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: 0.5in">Investors that purchase shares through a
brokerage account (whether commission based or fee-based) may pay commissions or fees charged by the brokerage account.</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: 0.5in">Dealers that are not &ldquo;underwriters&rdquo;
but are 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&nbsp;4(3)(C) of the Securities Act, would be unable
to take advantage of the prospectus delivery exemption provided by Section&nbsp;4(3) of the Securities Act.</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: 0.5in">The Sponsor intends to qualify the Shares
in states selected by the Sponsor and that sales be made through broker-dealers who are members of FINRA. Investors intending to
create or redeem Baskets through Authorized Participants in transactions not involving a broker-dealer registered in such investor&rsquo;s
state of domicile or residence should consult their legal advisor regarding applicable broker-dealer or securities regulatory requirements
under the state securities laws prior to such creation or redemption.</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: 0.5in">The offering of Baskets is being made in
compliance with Conduct Rule 2310 of FINRA. Authorized Participants will not receive from the Trust or the Sponsor any compensation
in connection with an offering or reoffering of the Shares. Accordingly, there is, and will be, no payment of underwriting compensation
in connection with any such offering of Shares in excess of 10% of the gross proceeds of the offering.</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: 0.5in">[Pursuant to a Marketing Agent Agreement
(the &ldquo;Marketing Agent Agreement&rdquo;) entered into between the Sponsor and [&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;], as Marketing
Agent, [&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;] will be paid by the Sponsor an annual fee. In addition, the Sponsor will pay certain out-of-pocket
fees and expenses of the Marketing Agent incurred in connection with its assistance in the marketing of the Trust and 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-indent: 0.5in">Under the Marketing Agent Agreement, the
Marketing Agent will provide the following services to the Sponsor:&nbsp;</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD>Review marketing related legal documents and contracts;</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD>Consult with the Sponsor&rsquo;s marketing staff and on development of FINRA compliant marketing campaigns;</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD>Review and file applicable marketing materials with FINRA;</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD>Maintain, reproduce and store applicable books and records related to the services provided under the Marketing Agent Agreement;</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD>Develop an overall strategic sales and marketing plan;</TD></TR></TABLE>

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

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

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD>Provide a dedicated national accounts manager, certain shared external wholesalers, certain shared internal wholesalers, resources
from its call center, marketing staff and resources from its order desk to assist in various aspects of its services under the
Marketing Agent Agreement.</TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Shares will be listed and trade on NYSE Arca under the symbol
&ldquo;[&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;].&rdquo;</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>

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

<P STYLE="font: small-caps bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><A NAME="valkyries04272121a029"></A>LEGAL MATTERS</P>

<P STYLE="font: small-caps bold 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-indent: 0.5in"> The validity of the Shares will be passed
upon for the Sponsor by Chapman and Cutler LLP. Chapman and Cutler LLP, as special tax counsel to the Trust, will also render
an opinion regarding the material U.S. federal income tax consequences of the ownership of Shares. [ ] will render an opinion regarding
the Trust&rsquo;s status under Delaware law. </P>

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

<P STYLE="font: small-caps bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><A NAME="valkyries04272121a030"></A>EXPERTS</P>

<P STYLE="font: small-caps bold 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-indent: 0.5in">The financial statements of the
Valkyrie Bitcoin Fund will be included herein in reliance on the report of [ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;], an independent
registered public accounting firm, given on the authority of said firm as experts in auditing and accounting.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0.25in 0 0; text-align: center"> <A NAME="valkyries04272121a030-a" TITLE="SUMMARY OF PROMOTIONAL AND SALES MATERIAL"></A><FONT STYLE="font-variant: small-caps"><B>SUMMARY
OF PROMOTIONAL AND SALES MATERIAL</B></FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 10pt 0 0; text-indent: 0.5in"> The Trust expects to use the following
sales material it has prepared: </P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 75px"> &nbsp; </TD>
    <TD STYLE="width: 48px; padding-top: 12pt; font: 10pt Times New Roman, Times, Serif"> <FONT STYLE="font-family: Symbol; font-size: 10pt">&#183;</FONT> </TD>
    <TD STYLE="padding-top: 12pt; font: 10pt Times New Roman, Times, Serif"> <FONT STYLE="font-size: 10pt">the Trust&rsquo;s
    website, www.valkyriefunds.io; and</FONT> </TD></TR>
<TR STYLE="vertical-align: top">
    <TD> &nbsp; </TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-top: 12pt"> <FONT STYLE="font-family: Symbol; font-size: 10pt">&#183;</FONT> </TD>
    <TD STYLE="padding-top: 12pt; font: 10pt Times New Roman, Times, Serif"> <FONT STYLE="font-size: 10pt">the Trust Fact Sheet
    found on the Trust&rsquo;s website.</FONT> </TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 10pt 0 0; text-indent: 0.5in"> The materials described above are
not a part of this Prospectus or the registration statement of which this prospectus is a part. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0.25in 0 0; text-align: center"> <A NAME="valkyries04272121a030-b" TITLE="PRIVACY POLICY"></A><FONT STYLE="font-variant: small-caps"><B>PRIVACY
POLICY</B></FONT> </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: 0; text-indent: 0.5in"> 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: 0"> &nbsp; </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"> The Trust and the Sponsor do not disclose nonpublic personal
information except as required by law or as described in their Privacy Policy. In general, the Trust and the Sponsor restrict
access to the nonpublic personal information they collect about 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: 0"> &nbsp; </P>

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

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

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

<P STYLE="font: small-caps bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><A NAME="valkyries04272121a031"></A>WHERE YOU CAN FIND MORE
INFORMATION</P>

<P STYLE="font: small-caps bold 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-indent: .5in">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-indent: .5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: .5in">Information about the Trust and the Shares
can also be obtained from the Trust&rsquo;s website, which is https://www.valkyriefunds.io. 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-indent: .5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The reports and other information
are available online at www.sec.gov.</P>

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


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0.25in 0 0; text-align: center"> <A NAME="valkyries04272121a031-a" TITLE="REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM"></A><FONT STYLE="font-variant: small-caps"><B>REPORT
OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM</B></FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: center"> [TO BE PROVIDED BY AMENDMENT.] </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0.25in 0 0; text-align: center"> <A NAME="valkyries04272121a031-b" TITLE="FINANCIAL STATEMENTS"></A><FONT STYLE="font-variant: small-caps"><B>FINANCIAL
STATEMENTS</B></FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: center"> [TO BE PROVIDED BY AMENDMENT.] </P>

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

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


<P STYLE="font: small-caps bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><A NAME="valkyries04272121a032"></A>GLOSSARY OF DEFINED TERMS</P>

<P STYLE="font: small-caps bold 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-indent: 0.5in">In this prospectus, each of the following
quoted terms has the meanings set forth after such term:</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: 0.5in">&ldquo;1% Liquidity Provider Fee&rdquo;&mdash;A
fee equal to 1% of the Cash Exchange Rate times the Total Basket Bitcoin Amount, which shall be paid by the Authorized Participant
to a Liquidity Provider in connection with in-cash creations and redemptions.</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: 0.5in">&ldquo;Actual Exchange Rate&rdquo;&mdash;The
highest exchange rate and lowest fees the Sponsor can find within a reasonable time frame in order to pay any Additional Trust
Expenses in U.S. Dollars or any other fiat currency.</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: 0.5in">&ldquo;Additional Trust Expenses&rdquo;&mdash;Together,
any expenses of the Trust that are not assumed by the Sponsor, 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, indemnification expenses of the Custodian,
Administrator or other agents, service providers or counterparties of the Trust and extraordinary legal fees and expenses.</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: 0.5in">&ldquo;Administrator Fee&rdquo;&mdash;The
fee payable to the Administrator for services it provides to the Trust, which the Sponsor shall pay the Administrator as a Sponsor-paid
Expense.</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: 0.5in">&ldquo;Auditor&rdquo;&mdash; [&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;].</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: 0.5in">&ldquo;Authorized Participant&rdquo;&mdash;Certain
eligible financial institutions that have entered into an agreement with the Trust and the Sponsor concerning the creation and
redemption of Shares. Each Authorized Participant (i)&nbsp;is a registered broker-dealer, (ii)&nbsp;has entered into a Participant
Agreement with the Sponsor, the Administrator and Liquidity Providers, if applicable, and (iii)&nbsp;has access to an Authorized
Participant Self-Administered Account in the case of the creation or redemption of Baskets that do not use the Conversion Procedures.</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: 0.5in">&ldquo;Authorized Participant Self-Administered
Account&rdquo;&mdash;A bitcoin wallet address previously known to the Custodian as belonging to the Authorized Participant.</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: 0.5in"> &ldquo;Basket&rdquo;&mdash;A block of
50,000 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-indent: 0.5in"> &ldquo;Basket Bitcoin Amount&rdquo;&mdash;On
any trade date, the number of bitcoins as of such trade date for each Creation Basket or Redemption Basket, as determined by dividing
(x) the number of bitcoins owned by the Trust at 4:00 p.m., New York time on such trade date, after deducting the number of bitcoins
representing the U.S. Dollar value of accrued but unpaid fees and expenses of the Trust (converted using the Bitcoin Index Price
at such time, and carried to the eighth decimal place), by (y)&nbsp;the number of Shares outstanding at such time and multiplying
the quotient so obtained by 50,000. </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: 0.5in">&ldquo;Bitcoin&rdquo;&mdash;A type of a
digital currency based on an open source cryptographic protocol existing on the Bitcoin Network, facilitating units of bitcoins
which constitute the assets underlying the Trust&rsquo;s Shares. See &ldquo;Overview of the Bitcoin Industry and Market.&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-indent: 0.5in">&ldquo;Bitcoin Account&rdquo;&mdash;Together,
the Wallet Account and Vault Account and any subaccounts associated therewith.</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: 0.5in">&ldquo;Bitcoin Exchange&rdquo;&mdash;An
electronic marketplace where exchange participants may trade, buy and sell bitcoins based on bid-ask trading. The largest Bitcoin
Exchanges are online and typically trade on a 24-hour basis, publishing transaction price and volume 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-indent: 0.5in"></P>

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<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: 0.5in">&ldquo;Bitcoin Exchange Market&rdquo;&mdash;The
global bitcoin exchange market for the trading of bitcoins, which consists of transactions on electronic Bitcoin Exchanges.</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: 0.5in">&ldquo;Bitcoin Holdings&rdquo;&mdash;The
Bitcoin Index Price-derived U.S. Dollar value of the Trust as calculated by the Administrator for operational purposes. </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: 0.5in">&ldquo;Bitcoin Index Price&rdquo;&mdash;The
U.S. Dollar value of a bitcoin as represented by the Index. </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: 0.5in">&ldquo;Bitcoin Network&rdquo;&mdash;The
online, end-user-to-end-user network hosting the public transaction ledger, known as the Blockchain, and the source code comprising
the basis for the cryptographic and algorithmic protocols governing the Bitcoin Network. See &ldquo;Overview of the Bitcoin Industry
and Market.&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-indent: 0.5in">&ldquo;Blockchain&rdquo;&mdash;The public
transaction ledger of the Bitcoin Network on which miners or mining pools solve algorithmic equations allowing them to add records
of recent transactions (called &ldquo;blocks&rdquo;) to the chain of transactions in exchange for an award of bitcoins from the
Bitcoin Network and the payment of transaction fees, if any, from users whose transactions are recorded in the block being added.</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: 0.5in">&ldquo;Book Entry System&rdquo;&mdash;The
Federal Reserve Treasury Book Entry System for U.S. and federal agency securities.</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: 0.5in">&ldquo;Business Day&rdquo;&mdash;Each day
the Shares trade on NYSE Arca.</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: 0.5in">&ldquo;Cash Collateral Amount&rdquo;&mdash;An
amount in U.S. Dollars equal to the product of (i) the number of Baskets to which a creation order relates and (ii) 110% of the
U.S. Dollar value of the most recently known Basket Bitcoin Amount, which is calculated using the Bitcoin Index Price as of 4:00
p.m., New York time, most recently published by the Index Provider.</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: 0.5in">&ldquo;Cash Exchange Rate&rdquo;&mdash;For
any creation or redemption order, the spot price of bitcoin as reported on the [&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;] at (a) the time
at which the Cash Collateral Amount is received by the Administrator, in the case of in-cash creations, or (b) the time at which
the Administrator notifies the Authorized Participant that the order has been accepted, in the case of in-cash redemptions.</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: 0.5in">&ldquo;CEA&rdquo;&mdash;Commodity Exchange
Act of 1936, as amended.</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: 0.5in">&ldquo;CFTC&rdquo;&mdash;The U.S. Commodity
Futures Trading Commission, an independent agency with the mandate to regulate commodity futures and option markets in the United
States.</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: 0.5in">&ldquo;Code&rdquo;&mdash;The U.S. Internal
Revenue Code of 1986, as amended.</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: 0.5in">&ldquo;Constituent Platforms&rdquo; &mdash;Bitstamp,
Coinbase, Kraken, itBit and Gemini.</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: 0.5in">&ldquo;Conversion Procedures&rdquo;&mdash;The
procedures by which a Liquidity Provider facilitates the purchase or sale of bitcoins on behalf of an Authorized Participant in
connection with the creation or redemption of 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-indent: 0.5in">&ldquo;Covered Person&rdquo;&mdash;As defined
in the section &ldquo;Description of the Trust Documents&mdash;Description of the Trust Agreement&mdash;Fiduciary and Regulatory
Duties of the Sponsor.&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-indent: 0.5in">&ldquo;Creation Basket&rdquo;&mdash;Basket
of Shares issued by the Trust in exchange for deposits of the Basket Bitcoin Amount required for each such Creation Basket.</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: 0.5in">&ldquo;Custodial Coins&rdquo;&mdash;The
bitcoins of the Sponsor and the Trust kept by the Custodian.</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: 0.5in">&ldquo;Custodian&rdquo;&mdash; Coinbase
Custody Trust Company, LLC.</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: 0.5in"></P>

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<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: 0.5in">&ldquo;Custodian Agreement&rdquo;&mdash;The
agreement between the Sponsor and the Custodian which sets forth the obligations and responsibilities of the Custodian in respect
of the safekeeping of the Trust&rsquo;s bitcoins.</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: 0.5in">&ldquo;Custodian Fee&rdquo;&mdash;Fee payable
to the Custodian for services it provides to the Trust, which the Sponsor shall pay to the Custodian as a Sponsor-paid Expense.</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: 0.5in">&ldquo;DDoS Attack&rdquo;&mdash;Distributed
denial of service attacks are coordinated hacking attempts to disrupt websites, web servers or computer networks in which an attacker
bombards an online target with a large quantity of external requests, thus precluding the target from processing requests from
genuine users.</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: 0.5in">&ldquo;DSTA&rdquo;&mdash;The Delaware Statutory
Trust Act, as amended.</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: 0.5in">&ldquo;DTC&rdquo;&mdash;The Depository Trust
Company. DTC is a limited purpose trust company organized under New York law, a member of the U.S. Federal Reserve System and a
clearing agency registered with the SEC. DTC will act as the securities depository for 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-indent: 0.5in">&ldquo;DTC Participant&rdquo;&mdash;A direct
participant in DTC, such as a bank, broker, dealer or trust company.</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: 0.5in">&ldquo;ERISA&rdquo;&mdash;Employee Retirement
Income Security Act of 1974, as amended.</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: 0.5in">&ldquo;Evaluation Time&rdquo;&mdash;Each
business day at 4:00 p.m., New York time, or as soon thereafter as practicable.</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: 0.5in">&ldquo;Exchange&rdquo; or &ldquo;NYSE Arca&rdquo;&mdash;The
venue where Shares are listed and traded.</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: 0.5in">&ldquo;Exchange Act&rdquo;&mdash;The Securities
Exchange Act of 1934, as amended.</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: 0.5in">&ldquo;FDIC&rdquo;&mdash;The Federal Deposit
Insurance Corporation.</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: 0.5in">&ldquo;FinCEN&rdquo;&mdash;The Financial
Crimes Enforcement Network, a bureau of the U.S. Department of the Treasury.</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: 0.5in">&ldquo;FINRA&rdquo;&mdash;The Financial
Industry Regulatory Authority, Inc., which is the primary regulator in the United States for broker-dealers, including Authorized
Participants.</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: 0.5in">&ldquo;GAAP&rdquo;&mdash;The U.S. generally
accepted accounting principles.</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: 0.5in">&ldquo;IIV&rdquo;&mdash;The intraday indicative
value 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-indent: 0.5in"> &ldquo;Index&rdquo;&mdash;CF Bitcoin
US Settlement 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-indent: 0.5in">&ldquo;Index License Agreement&rdquo;&mdash;The
license agreement entered into by the Index Provider and the Sponsor governing the Sponsor&rsquo;s use of the Index for calculation
of the Bitcoin Index 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-indent: 0.5in"> &ldquo;Index Provider&rdquo;&mdash;CF Benchmarks Ltd. </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: 0.5in">&ldquo;Indirect Participants&rdquo;&mdash;Those
banks, brokers, dealers, trust companies and others who maintain, either directly or indirectly, a custodial relationship with
a DTC Participant.</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: 0.5in">&ldquo;Investment Advisers Act&rdquo;&mdash;Investment
Advisers Act of 1940, as amended.</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: 0.5in">&ldquo;Investment Company Act&rdquo;&mdash;Investment
Company Act of 1940, as amended.</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: 0.5in">&ldquo;IRA&rdquo;&mdash;An individual retirement
account provided for under Section&nbsp;408(m) of the Code.</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: 0.5in">&ldquo;IRS&rdquo;&mdash;The U.S. Internal
Revenue Service, a bureau of the U.S. Department of the Treasury.</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: 0.5in"></P>

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<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: 0.5in">&ldquo;Liquidity Provider&rdquo;&mdash;An
entity eligible to facilitate the purchase or sale of bitcoins on behalf of an Authorized Participant in connection with the creation
or redemption of Shares for cash. Each Liquidity Provider (i) has entered into a Participant Agreement with the Sponsor, the Administrator,
the Marketing Agent and each Liquidity Provider and (ii)&nbsp;has access to a Liquidity Provider Account.</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: 0.5in">&ldquo;Liquidity Provider Account&rdquo;&mdash;With
respect to any Liquidity Provider, a bitcoin wallet address previously known to the Custodian as belonging to such Liquidity Provider.</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: 0.5in">[&ldquo;Marketing Agent&rdquo;&mdash;[&nbsp;&nbsp;&nbsp;&nbsp;],
which is engaged by the Sponsor to assist in the marketing 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-indent: 0.5in">[&ldquo;Marketing Agent Agreement&rdquo;&mdash;The
agreement between the Sponsor and [&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;], as Marketing Agent, which will set forth the obligations and
responsibilities of the Marketing Agent.]</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: 0.5in">&ldquo;Marketing Fee&rdquo;&mdash;Fee payable
to the Marketing Agent for services it provides to the Trust, which the Sponsor shall pay to the Marketing Agent as a Sponsor-paid
Expense.</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: 0.5in">&ldquo;NAV&rdquo;&mdash;The net asset value
of the Trust determined on a GAAP basis.</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: 0.5in">&ldquo;Participant Agreement&rdquo;&mdash;An
agreement entered into by an Authorized Participant with the Sponsor, the Administrator, the Marketing Agent and each Liquidity
Provider which provides the procedures for the creation and redemption of Baskets and for the delivery of bitcoins required for
Creation Baskets and the distribution of bitcoins from the Trust for Redemption Baskets.</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: 0.5in">&ldquo;Redemption Basket&rdquo;&mdash;Baskets
of Shares redeemed in exchange for bitcoins in an amount equal to the Basket Bitcoin Amount required for each such Redemption Basket.</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: 0.5in">&ldquo;SEC&rdquo;&mdash;The U.S. Securities
and Exchange Commission.</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: 0.5in">&ldquo;Securities Act&rdquo;&mdash;The Securities
Act of 1933, as amended.</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: 0.5in">&ldquo;Service Providers&rdquo;&mdash;Collectively,
[&nbsp;&nbsp;&nbsp;&nbsp;].</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: 0.5in">&ldquo;Shareholder&rdquo;&mdash;Any beneficial
owner of a 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-indent: 0.5in">&ldquo;Shares&rdquo;&mdash;Common units
of fractional undivided beneficial interest in, and ownership 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-indent: 0.5in">&ldquo;SIPC&rdquo;&mdash;The Securities
Investor Protection Corporation.</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: 0.5in"> &ldquo;Sponsor&rdquo;&mdash;Valkyrie
Digital Assets LLC. </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: 0.5in">&ldquo;Sponsor-paid Expense(s)&rdquo;&mdash;
The Trust&rsquo;s fees and expenses that the Sponsor is obligated to assume and pay: the Marketing Fee, the Administrator Fee,
the Custodian Fee, the Transfer Agent Fee, the Trustee fee, applicable license fees, including the licensing fees related to the
Index License Agreement, fees and expenses related to trading of Shares on NYSE Arca (including marketing, legal and audit fees
and expenses), legal expenses, audit fees, regulatory fees, including any fees relating to the registration of the Shares with
the SEC, printing and mailing costs and costs of maintaining the Trust&rsquo;s website.</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: 0.5in">&ldquo;Sponsor&rsquo;s Fee&rdquo;&mdash;A
fee, payable in Bitcoins, which accrues daily in U.S. Dollars at an annual rate of a percentage, to be determined by the Sponsor,
of the Bitcoin Holdings of the Trust, calculated at the Bitcoin Index Price as of 4:00 p.m. (New York time) on each day, provided
that for a day that is not a Business Day, the calculation shall be based on the Bitcoin Index Price from the most recent Business
Day.</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: 0.5in">&ldquo;Total Basket Bitcoin Amount&rdquo;&mdash;With
respect to any creation or redemption order, the applicable Basket Bitcoin Amount multiplied by the number of Baskets being created
or redeemed.</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: 0.5in">&ldquo;Transfer Agent&rdquo;&mdash;The Bank
of New York Mellon, a New York corporation.</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: 0.5in"></P>

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<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: 0.5in">&ldquo;Transfer Agency and Service Agreement&rdquo;&mdash;The
agreement between the Sponsor and the Transfer Agent which sets forth the obligations and responsibilities of the Transfer Agent
with respect to transfer agency services and related matters.</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: 0.5in">&ldquo;Transfer Agent Fee&rdquo;&mdash;Fee
payable to the Transfer Agent for services it provides to the Trust, which the Sponsor shall pay to the Transfer Agent as a Sponsor-paid
Expense.</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: 0.5in">&ldquo;Trust&rdquo;&mdash;The Valkyrie Bitcoin
Fund, a Delaware statutory trust, formed on January 20, 2021 under the DSTA and the pursuant to 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-indent: 0.5in">&ldquo;Trust Administration and Accounting
Agreement&rdquo;&mdash;The Agreement between the Sponsor and the Administrator which sets forth the obligations and responsibilities
of the Administrator in respect of the administration 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-indent: 0.5in">&ldquo;Trust Agreement&rdquo;&mdash;The
Amended and Restated Declaration of Trust and Trust Agreement between the Trustee and the Sponsor establishing and governing the
operations of the Trust, as the same may be amended from time to time.</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: 0.5in">&ldquo;Trustee&rdquo;&mdash;Delaware Trust
Company (formerly known as CSC Trust Company of Delaware), a Delaware trust company, is the Delaware trustee 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-indent: 0.5in">&ldquo;U.S.&nbsp;Dollar&rdquo; or &ldquo;$&rdquo;&mdash;United
States Dollar or Dollars.</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: 0.5in">&ldquo;Vault Account&rdquo;&mdash;One or
more cold storage accounts in the name of the Sponsor and of the Trust held for the safekeeping of the Trust&rsquo;s bitcoins.</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: 0.5in">&ldquo;Wallet Account&rdquo;&mdash;One or
more wallets in the name of the Sponsor and of the Trust held for the deposit and withdrawal of bitcoins.</P>

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


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

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; text-align: left">
    <TD STYLE="width: 100%; border-bottom: Black 2.5pt double">&nbsp;</TD></TR>
</TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><IMG SRC="valk_logo2.jpg" ALT="" STYLE="width: 350px"></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>PROSPECTUS</B></P>

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

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

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

<P STYLE="font: small-caps bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.75in">[&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;]
SHARES</P>

<P STYLE="font: small-caps bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.75in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;text-indent: 0.5in">Until [&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;],
2021 (25 calendar days after the date of this prospectus), all dealers effecting transactions in the Shares, whether or not participating
in this distribution, may be required to deliver a prospectus. This requirement is in addition to the obligations of dealers to
deliver a prospectus when acting as underwriters and with respect to unsold allotments or subscriptions.</P>

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

<P STYLE="font: small-caps bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.75in">[&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;],
2021</P>

<P STYLE="font: small-caps bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.75in"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; text-align: left">
    <TD STYLE="width: 100%; border-bottom: Black 2.5pt double">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: small-caps bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.75in"></P>

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


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    <DIV STYLE="page-break-before: always; margin-top: 6pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

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

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 1in">Item&nbsp;13.</TD><TD STYLE="padding-right: 63.35pt">Other Expenses of Issuance and Distribution.</TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"> The Registrant
(&ldquo;Registrant&rdquo; or &ldquo;Trust&rdquo;) shall not bear any expenses incurred in connection with the issuance and
distribution of the securities being registered. These expenses shall be paid by Valkyrie Digital Assets LLC, the sponsor of the
Registrant (&ldquo;Sponsor&rdquo;). </P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 1in">Item&nbsp;14.</TD><TD STYLE=" padding-right: 63.35pt">Indemnification of Directors and Officers.</TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">[To Be Provided By Amendment]</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 1in">Item&nbsp;15.</TD><TD STYLE=" padding-right: 63.35pt">Recent Sales of Unregistered 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; text-indent: 0.5in">None.</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 1in">Item&nbsp;16.</TD><TD STYLE=" padding-right: 63.35pt">Exhibits and Financial Statement Schedules.</TD></TR></TABLE>

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

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

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

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 12%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Exhibit</B></FONT></TD>
    <TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 86%">&nbsp;</TD>
    </TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Number</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: center"><B>Description</B></TD>
    </TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">3.1</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Form of Trust Agreement*</FONT></TD>
    </TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">3.2</FONT></TD>
    <TD>&nbsp;</TD>
    <TD> <font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="https://www.sec.gov/Archives/edgar/data/1841175/000138713121001118/ex3-2.htm">Form
    of Certificate of Trust**</a></font> </TD>
    </TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">5.1</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Opinion of [&nbsp;&nbsp;&nbsp;&nbsp;] as to legality*</FONT></TD>
    </TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">8.1</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Opinion of Chapman and Cutler LLP as to tax matters*</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.1</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Custodian Agreement*</FONT></TD>
    </TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.2</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Marketing Agent Agreement*</FONT></TD>
    </TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.3</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Index License Agreement*</FONT></TD>
    </TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.4</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Trust Administration and Accounting Agreement*</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.5</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Transfer Agency and Service Agreement*</FONT></TD>
    </TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.6</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Form of Participant Agreement*</FONT></TD>
    </TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">23.1</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Consent of Independent Registered Public Accounting Firm*</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">23.2</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Consent of Chapman and Cutler LLP is included in Exhibit 5.1*</FONT></TD></TR>
</TABLE>


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

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

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



<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 22.5pt">*</TD><TD>To be filed by amendment.</TD></TR><tr style="vertical-align: top">
<td>&nbsp;</td><td> ** </td><td> As filed on January 22, 2021. </td></tr>
                                                                                                 </TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">(b) Financial Statement Schedules</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: 0.5in">Not applicable.</P>

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; margin-left: 0in; text-indent: 0in">Item&nbsp;17.
Undertakings.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The undersigned Registrant hereby undertakes:</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: 0.5in"> (1)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To
file, during any period in which offers or sales are being made, a post-effective amendment to this registration statement:</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 0pt 0.5in; text-indent: 0.5in"> (i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To include any prospectus required by section
10(a)(3) of the Securities Act of 1933;</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: 0.5in">(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 SEC pursuant to Rule 424(b) if, in the aggregate, the changes in
volume and price represent no more than a 20% change in the maximum aggregate offering price set forth in the &ldquo;Calculation
of Registration Fee&rdquo; table in the effective registration statement; and</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"> (2)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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.</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: 0.5in"> (3)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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.</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: 0.5in"> (4)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;That, for the purpose of determining liability under
the Securities Act of 1933 to any purchaser:</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 0pt 0.5in; text-indent: 0.5in"> (i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If the Registrant is relying on Rule 430B:</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-indent: 0.5in"> (A)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each prospectus filed by the Registrant pursuant
to Rule 424(b)(3) shall be deemed to be part of the registration statement as of the date the filed prospectus was deemed part
of and included in the registration statement; and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-indent: 0.5in"> (B)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 or 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 an 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 proposes 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 purchase with a time of contract of sale prior to such effective
date, supersede or modify any statement that was made in the registration statement or prospectus that was part of the registration
statement or made in any such document immediately prior to such effective date; or</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">&nbsp;</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"> (5)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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:</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: 0.5in">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; text-indent: 0.5in">&nbsp;</P>

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

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<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 0pt 0.5in; text-indent: 0.5in"> (i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any preliminary prospectus or prospectus
of the undersigned Registrant relating to the offering required to be filed pursuant to Rule 424;</P>

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

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: 0.5in"> (iv)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any other communication that is an offer
in the offering made by the undersigned Registrant to the purchaser.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"> (6) That 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 Securities Act of 1933 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 of whether such indemnification by it is against public policy as expressed in the Securities Act of
1933 and will be governed by the final adjudication of such issue.</P>

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


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

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

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

<P STYLE="font: small-caps bold 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-indent: 0.5in"> Pursuant to the requirements of the
Securities Act of 1933, the Registrant has duly caused this amendment to the registration statement to be signed on its behalf
by the undersigned, thereunto duly authorized, in the City of Dallas, Texas, on April 30, 2021. </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: 0.5in"></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD> &nbsp; </TD>
    <TD COLSPAN="3"> <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Valkyrie Digital Assets LLC</FONT> </TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="3"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Sponsor of the Valkyrie Bitcoin Fund</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="3">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 50%">&nbsp;</TD>
    <TD STYLE="width: 3%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">By: </FONT></TD>
    <TD STYLE="width: 7%; border-bottom: Black 1pt solid">/s/</TD>
    <TD STYLE="width: 40%; border-bottom: Black 1pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"> Leah Wald</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"></FONT></TD>
    <TD>Name:</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Leah Wald</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"></FONT></TD>
    <TD>Title:</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Chief Executive Officer</FONT></TD></TR>
</TABLE>


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 3.5in; text-indent: -0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Pursuant to the requirements of the
Securities Act of 1933, this amendment to the 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-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="white-space: nowrap"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; border-bottom: black 1pt solid"> <B>Signature&nbsp;</B> </P></TD>
    <TD STYLE="padding-top: 12pt"> &nbsp; </TD>
    <TD STYLE="white-space: nowrap"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; border-bottom: black 1pt solid"> <B>Capacity</B>&nbsp; </P></TD>
    <TD STYLE="padding-top: 12pt"> &nbsp; </TD>
    <TD STYLE="white-space: nowrap"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; border-bottom: black 1pt solid"> <B>Date</B>&nbsp; </P></TD></TR>
<TR>
    <TD> &nbsp; </TD>
    <TD COLSPAN="2"> &nbsp; </TD>
    <TD COLSPAN="2"> &nbsp; </TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; border-bottom: black 0.75pt solid"> /s/&nbsp;&nbsp;&nbsp;&nbsp;Leah
        Wald&nbsp; </P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> Leah Wald </P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> &nbsp; </P></TD>
    <TD STYLE="vertical-align: bottom"> &nbsp; </TD>
    <TD STYLE="vertical-align: top"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 10pt; text-indent: -10pt"> Chief Executive Officer&nbsp; </P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 10pt; text-indent: -10pt"> (Principal Executive
        Officer)&nbsp; </P></TD>
    <TD STYLE="vertical-align: bottom"> &nbsp; </TD>
    <TD STYLE="white-space: nowrap; vertical-align: top; text-align: center"> <FONT STYLE="font-size: 10pt">April 30,
    2021</FONT> </TD></TR>
<TR>
    <TD> &nbsp; </TD>
    <TD COLSPAN="2"> &nbsp; </TD>
    <TD COLSPAN="2"> &nbsp; </TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; border-bottom: black 0.75pt solid"> /s/&nbsp;&nbsp;&nbsp;&nbsp;John
        Key&nbsp; </P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> John Key&nbsp; </P></TD>
    <TD STYLE="vertical-align: bottom"> &nbsp; </TD>
    <TD STYLE="vertical-align: top"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 10pt; text-indent: -10pt"> Managing Director&nbsp; </P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 10pt; text-indent: -10pt"> (Principal Financial
        Officer and&nbsp; </P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 10pt; text-indent: -10pt"> Principal Accounting
        Officer)&nbsp; </P></TD>
    <TD STYLE="vertical-align: bottom"> &nbsp; </TD>
    <TD STYLE="white-space: nowrap; vertical-align: top; text-align: center"> <FONT STYLE="font-size: 10pt">April 30,
    2021</FONT> </TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> &nbsp; </P>

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<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"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"> * </TD><TD> The Registrant is a trust and the persons are signing in their
                                         capacities as officers of Valkyrie Digital Assets LLC, the Sponsor of the Registrant. </TD></TR></TABLE>

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


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<DOCUMENT>
<TYPE>COVER
<SEQUENCE>6
<FILENAME>filename6.htm
<TEXT>
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<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 78%; font: 12pt Times New Roman, Times, Serif"><IMG SRC="cover_img001.jpg" ALT="" STYLE="height: 40px; width: 211px"></TD>
    <TD STYLE="width: 22%">
        <P STYLE="font: 7pt Arial, Helvetica, Sans-Serif; margin: 0">111 West Monroe Street</P>
        <P STYLE="font: 7pt Arial, Helvetica, Sans-Serif; margin: 0">Chicago, Illinois 60603-4080</P>
        <P STYLE="font: 7pt Arial, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>
        <P STYLE="font: 7pt Arial, Helvetica, Sans-Serif; margin: 0">T 312.845.3000</P>
        <P STYLE="font: 7pt Arial, Helvetica, Sans-Serif; margin: 0">F 312.701.2361</P>
        <P STYLE="font: 7pt Arial, Helvetica, Sans-Serif; margin: 0">www.chapman.com</P>
        <P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P></TD></TR>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 24pt 0 0; text-align: left"><B><U><IMG SRC="cover_img002.jpg" ALT='Text Box: Text box:  &#13;&#10;Horizontal Absolute 4.75" to Right of Page&#13;&#10;Vertical:   Absolute .58" below Page&#13;&#10;' STYLE="height: 23px; width: 9px">VIA
EDGAR</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 24pt 0 32pt; text-align: center"> April 30,
2021 </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">United States Securities and Exchange Commission</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">100 F Street, NE</P>

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

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

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

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 7%; font: 12pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 7%; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Re:</FONT></TD>
    <TD STYLE="width: 30%; border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Valkyrie Bitcoin Fund</FONT></TD>
    <TD STYLE="width: 56%; font: 12pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.7pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.7pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.7pt">Ladies and Gentlemen:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 10pt 0 0; text-align: justify; text-indent: 0.5in"> On behalf of
Valkyrie Bitcoin Fund (the <I>&ldquo;Registrant&rdquo;</I>), we are transmitting for electronic filing under the Securities Act
of 1933, as amended (the <I>&ldquo;1933 Act&rdquo;</I>), the Registrant&rsquo;s amendment no. 1 to the registration statement
on Form S-1 (the &ldquo;<I>Registration Statement</I>&rdquo;). The Registration Statement relates to common shares of beneficial
interest of Valkyrie Bitcoin Fund, a newly formed Delaware statutory trust intending to operate as an exchange-traded fund. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 10pt 0 0; text-align: justify; text-indent: 0.5in"> We are aware
that the Staff of the Division of Corporation Finance has deferred review of this Registration Statement until such time as the
Division of Trading and Markets has ordered a related self-regulatory organization rule change pursuant to an application on Form
19b-4. The purpose of this amendment is to update the preliminary prospectus disclosure to harmonize it with the related application
on Form 19b-4, and we are not requesting that the Staff of the Division of Corporation Finance reverse its deferral position at
this time. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 10pt 0 0; text-align: justify; text-indent: 0.5in">If you have any
questions please do not hesitate to contact Morrison C. Warren at&nbsp;(312)&nbsp;845-3484 or James M. Audette at (312) 845-3421.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&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="text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Very truly yours,</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-indent: 0in">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-indent: 0in">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 60%; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; width: 40%; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">/s/
    CHAPMAN AND CUTLER LLP</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-variant: small-caps">Chapman and Cutler LLP</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</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>

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