<SEC-DOCUMENT>0001214659-23-016547.txt : 20240208
<SEC-HEADER>0001214659-23-016547.hdr.sgml : 20240208

<ACCEPTANCE-DATETIME>20231218172833

<PRIVATE-TO-PUBLIC>

ACCESSION NUMBER:		0001214659-23-016547

CONFORMED SUBMISSION TYPE:	S-1/A

PUBLIC DOCUMENT COUNT:		5

FILED AS OF DATE:		20231218

DATE AS OF CHANGE:		20240110


FILER:


	COMPANY DATA:	

		COMPANY CONFORMED NAME:			WisdomTree Bitcoin Fund

		CENTRAL INDEX KEY:			0001850391

		STANDARD INDUSTRIAL CLASSIFICATION:	 [6221]

		ORGANIZATION NAME:           	09 Crypto Assets

		IRS NUMBER:				000000000



	FILING VALUES:

		FORM TYPE:		S-1/A

		SEC ACT:		1933 Act

		SEC FILE NUMBER:	333-254134

		FILM NUMBER:		231494842



	BUSINESS ADDRESS:	

		STREET 1:		250 WEST 34TH STREET

		STREET 2:		3RD FLOOR

		CITY:			NEW YORK

		STATE:			NY

		ZIP:			10119

		BUSINESS PHONE:		1-866-909-9473



	MAIL ADDRESS:	

		STREET 1:		250 WEST 34TH STREET

		STREET 2:		3RD FLOOR

		CITY:			NEW YORK

		STATE:			NY

		ZIP:			10119



	FORMER COMPANY:	

		FORMER CONFORMED NAME:	WisdomTree Bitcoin Trust

		DATE OF NAME CHANGE:	20210310



</SEC-HEADER>

<DOCUMENT>
<TYPE>S-1/A
<SEQUENCE>1
<FILENAME>e1218231s1a4.htm
<DESCRIPTION>AMENDMENT NO. 4
<TEXT>
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     <TITLE></TITLE>

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<P STYLE="margin: 0"></P>

<P STYLE="margin: 0">&#160;</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 December 18, 2023</B> </P>

<P STYLE="margin: 0">&#160;</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><B>Registration No. 333-254134 </B></P>



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

<P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>UNITED STATES </B></P>

<P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 18.35pt; text-align: center"><B>SECURITIES AND EXCHANGE COMMISSION
</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Washington, D.C. 20549 &#160;</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> <B>Amendment No. 4</B> </P>

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

<P STYLE="font: 18pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>FORM S-1 </B></P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><I>THE SECURITIES ACT OF 1933</I></B>&#160;</P>



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

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt">&#160;</P>

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

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

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  <TR>
    <TD STYLE="vertical-align: top; width: 34%; font-size: 10pt; text-align: center"> <B>Delaware</B> </TD>
    <TD STYLE="vertical-align: bottom; width: 33%; font-size: 10pt; text-align: center"> <B>6221</B> </TD>
    <TD STYLE="vertical-align: top; width: 33%; font-size: 10pt; text-align: center"> <B>[___]</B> </TD></TR>
  <TR>
    <TD STYLE="vertical-align: top"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> <B>(State or other jurisdiction of</B> </P>
    <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> <B>incorporation or organization)</B> </P></TD>
    <TD STYLE="vertical-align: bottom; font-size: 10pt; text-align: center"> <B>(Primary Standard Industrial <BR>
    Classification Code Number)</B> </TD>
    <TD STYLE="vertical-align: top"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> <B>(I.R.S. Employer</B> </P>
    <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> <B>Identification No.)</B> </P></TD></TR>
  </TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>c/o WisdomTree Digital Commodity Services,
LLC </B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>250 West 34th Street, 3rd Floor</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>New York, New York 10119</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(866) 909-9473 </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(Address, including zip code, and telephone
number, </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>including area code, of registrant&#8217;s
principal executive offices and for service of process purposes) </B></P>

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



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>700 13th Street, NW </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Suite 800 </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Washington, DC 20005 </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B><I>Approximate date of commencement of proposed
sale to the public: </I></B>As soon as practicable after the effective date of this Registration Statement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 24.5pt">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:&#160;&#160;
<FONT STYLE="font-family: Wingdings">x</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 24.5pt">If this Form is filed to register additional securities for an
offering pursuant to Rule 462(b) under the Securities Act, please check the following box and list the Securities Act registration statement
number of the earlier effective registration statement for the same offering:&#160;&#160;<FONT STYLE="font-family: Wingdings">&#168;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 24.5pt">If this Form is a post-effective amendment filed pursuant to
Rule 462(c) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier
effective registration statement for the same offering.&#160;&#160;<FONT STYLE="font-family: Wingdings">&#168;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 24.5pt">If this Form is a post-effective amendment filed pursuant to
Rule 462(d) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier
effective registration statement for the same offering.&#160;&#160;<FONT STYLE="font-family: Wingdings">&#168;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</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>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman; margin: 0pt 0; text-indent: 24.5pt">Indicate by check mark whether the registrant is a large accelerated
filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of
&ldquo;large accelerated filer,&rdquo; &ldquo;accelerated filer,&rdquo; &ldquo;smaller reporting company,&rdquo; and &ldquo;emerging growth
company&rdquo; in Rule 12b-2 of the Exchange Act.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

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    <TD>&#160;</TD>
    <TD><FONT STYLE="font-family: Wingdings; font-size: 10pt">&#168;</FONT></TD>
    <TD>&#160;</TD>
    <TD><FONT STYLE="font-size: 10pt">Accelerated&#160;filer</FONT></TD>
    <TD>&#160;</TD>
    <TD><FONT STYLE="font-family: Wingdings; font-size: 10pt">&#168;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD><FONT STYLE="font-size: 10pt">Non-accelerated filer</FONT></TD>
    <TD>&#160;</TD>
    <TD><FONT STYLE="font-family: Wingdings; font-size: 10pt">x</FONT></TD>
    <TD>&#160;</TD>
    <TD><FONT STYLE="font-size: 10pt">Smaller&#160;reporting&#160;company</FONT></TD>
    <TD>&#160;</TD>
    <TD><FONT STYLE="font-family: Wingdings; font-size: 10pt">&#168;</FONT></TD></TR>
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    <TD>&#160;</TD>
    <TD>&#160;</TD>
    <TD>&#160;</TD>
    <TD>&#160;</TD>
    <TD><FONT STYLE="font-size: 10pt">Emerging&#160;growth&#160;company</FONT></TD>
    <TD>&#160;</TD>
    <TD><FONT STYLE="font-family: Wingdings; font-size: 10pt">x</FONT></TD></TR>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">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&#160;7(a)(2)(B) of the Securities Act.&#160;&#160;<FONT STYLE="font-family: Wingdings">&#168;</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; margin-top: 0pt; margin-bottom: 0pt">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt">____________________&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">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&#160;8(a) of the Securities
Act of 1933 or until the registration statement shall become effective on such date as the Securities and Exchange Commission, acting
pursuant to said Section&#160;8(a), may determine.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&#160;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; margin-top: 0pt; margin-bottom: 0pt">&#160;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; margin-top: 0pt; margin-bottom: 0pt"></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; margin-top: 0pt; margin-bottom: 0pt">&#160;</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; color: #FF4338"><B>The information in this Preliminary Prospectus
is not complete and may be changed. We may not sell these securities until the registration statement filed with the Securities and Exchange
Commission is effective. This Preliminary Prospectus is not an offer to sell these securities and it is not soliciting an offer to buy
these securities in any jurisdiction where the offer or sale is not permitted. </B></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">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; color: #FF4338"><B>Subject to Completion </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; color: #FF4338"> <B>Preliminary Prospectus dated
December 18, 2023</B> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Common Shares of Beneficial Interest </B></P>

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

<P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> <B>WisdomTree Bitcoin Fund </B> </P>


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; margin-top: 0pt; margin-bottom: 0pt">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"> The WisdomTree Bitcoin Fund (the &ldquo;Trust&rdquo;)
is an exchange-traded fund that issues common shares of beneficial interest (the &ldquo;Shares&rdquo;) that will be listed on the Cboe
BZX Exchange, Inc. (the &ldquo;Exchange&rdquo;) and will trade under the ticker symbol &ldquo;BTCW.&rdquo; WisdomTree Digital Commodity
Services, LLC (the &ldquo;Sponsor&rdquo;) is the sponsor of the Trust, Delaware Trust Company (the &ldquo;Trustee&rdquo;) is the trustee
of the Trust, Coinbase Custody Trust Company LLC (the &ldquo;Bitcoin Custodian&rdquo;) is the custodian of the Trust with respect to
the Trust&rsquo;s bitcoin holdings. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; margin-top: 0pt; margin-bottom: 0pt">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><FONT STYLE="font-size: 10pt">The Trust&#8217;s
investment objective is to gain exposure to the price of bitcoin, less expenses and liabilities of the Trust&#8217;s operations. In seeking
to achieve its investment objective, the Trust will hold bitcoin and will value its Shares daily based on the </FONT>CME <FONT STYLE="font-size: 10pt">CF
Bitcoin </FONT>Reference Rate &#8211; New York Variant <FONT STYLE="font-size: 10pt">(the &#8220;Reference Rate&#8221;), which is an
independently calculated value based on an aggregation of executed trade flow of major bitcoin spot exchanges. </FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; margin-top: 0pt; margin-bottom: 0pt">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"> When the Trust sells or redeems its Shares,
it will do so in blocks of 5,000 Shares (a &ldquo;Basket&rdquo;) based on the quantity of bitcoin attributable to each Share of the Trust
(net of accrued but unpaid expenses and liabilities). For a subscription of Shares, the subscription shall be in the amount of either
bitcoin represented by the Basket being created or cash needed to purchase the amount of bitcoin represented by the Basket being created,
in each case as calculated by the Administrator (as defined below). For a redemption of Shares, the Sponsor shall arrange for the bitcoin
represented by the Basket to be distributed in-kind or sold and the cash proceeds distributed. Financial firms that are authorized to
purchase or redeem Shares with the Trust (known as &ldquo;Authorized Participants&rdquo;) will deliver, or facilitate the delivery of,
bitcoin to the Trust&rsquo;s account with the Bitcoin Custodian or cash to the Trust&rsquo;s account with the Cash Custodian (as defined
below) in exchange for Shares when they purchase Shares, and will receive bitcoin (from the Bitcoin Custodian) or cash (from the Cash
Custodian), as applicable, when they redeem Shares with the Trust. Shares initially comprising the same Basket but offered by the Authorized
Participants to the public at different times may have different offering prices, which depend on various factors, including the supply
and demand for Shares, the value of the Trust&rsquo;s assets, and market conditions at the time of a transaction. The initial price per
share is $50 and was selected as an appropriate and convenient price that would facilitate secondary market trading of shares. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Investors who decide to buy Shares of the Trust
or sell Shares of the Trust will place their trade orders through their brokers and may incur customary brokerage commissions and charges.
Investors who buy or sell Shares during the day from their broker may do so at a premium or discount relative to the net asset value
of the Shares of the Trust. Prior to this offering, there has been no public market for the Shares. Investing in the Trust involves risks
similar to those involved with an investment directly in bitcoin and other significant risks.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The offering of the Trust&#8217;s Shares is registered
with the Securities and Exchange Commission (the &#8220;SEC&#8221;) in accordance with the Securities Act of 1933, as amended (the &#8220;1933
Act&#8221;). 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.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The Trust qualifies as an &#8220;emerging growth
company&#8221; as defined under the Jumpstart Our Business Startups Act (the &#8220;JOBS Act&#8221;) and, as such, may elect to comply
with certain reduced reporting requirements.</P>

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

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

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    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 8pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%"><TR><TD STYLE="text-align: left; width: 100%"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR></TABLE></DIV>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><I>RISK DISCLOSURE STATEMENT </I></B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>YOU SHOULD CAREFULLY CONSIDER WHETHER YOUR
FINANCIAL CONDITION PERMITS YOU TO INVEST IN THIS TRUST. AN INVESTMENT IN THE TRUST INVOLVES SIGNIFICANT RISKS (INCLUDING THE POTENTIAL
FOR QUICK, LARGE LOSSES) 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. </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>THIS BRIEF STATEMENT CANNOT DISCLOSE ALL THE
RISKS AND OTHER FACTORS NECESSARY TO EVALUATE YOUR POTENTIAL INVESTMENT IN THIS TRUST. THEREFORE, BEFORE YOU DECIDE TO INVEST, YOU SHOULD
CAREFULLY STUDY THIS PROSPECTUS, AND YOU SHOULD CONSIDER ALL RISK FACTORS BEFORE INVESTING IN THE TRUST. PLEASE REFER TO &#8220;RISK
FACTORS&#8221; BEGINNING ON PAGE 11. </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>THE TRUST IS NOT A MUTUAL FUND REGISTERED
UNDER THE INVESTMENT COMPANY ACT OF 1940, AS AMENDED (THE &#8220;1940 ACT&#8221;) 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 &#8220;CEA&#8221;), AND THE SPONSOR
IS NOT SUBJECT TO REGULATION BY THE COMMODITY FUTURES TRADING COMMISSION (THE &#8220;CFTC&#8221;) AS A COMMODITY POOL OPERATOR OR A COMMODITY
TRADING ADVISOR. THE TRUST&#8217;S SHARES ARE NEITHER INTERESTS IN NOR OBLIGATIONS OF THE SPONSOR OR THE TRUSTEE OR ANY OF THEIR RESPECTIVE
AFFILIATES. </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><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; text-align: center; margin-top: 0pt; margin-bottom: 0pt">_______________________________</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;&nbsp;&nbsp;&nbsp;], 2023</B> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&#160;</B></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>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</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">&#160;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 95%; padding-left: 12pt; text-indent: -12pt"> <FONT STYLE="font-size: 10pt">STATEMENT REGARDING FORWARD-LOOKING
    STATEMENTS</FONT> </TD>
    <TD STYLE="white-space: nowrap; width: 5%; text-align: right"> <FONT STYLE="font-size: 10pt">2</FONT> </TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 12pt; text-indent: -12pt"> <FONT STYLE="font-size: 10pt">PROSPECTUS SUMMARY</FONT> </TD>
    <TD STYLE="white-space: nowrap; text-align: right"> <FONT STYLE="font-size: 10pt">3</FONT> </TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 12pt; text-indent: -12pt"> <FONT STYLE="font-size: 10pt">RISK FACTORS</FONT> </TD>
    <TD STYLE="white-space: nowrap; text-align: right"> 11 </TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 12pt; text-indent: -12pt"> <FONT STYLE="font-size: 10pt">BITCOIN, BITCOIN MARKET, BITCOIN EXCHANGES AND
    REGULATION OF BITCOIN</FONT> </TD>
    <TD STYLE="white-space: nowrap; text-align: right"> <FONT STYLE="font-size: 10pt">51</FONT> </TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 12pt; text-indent: -12pt"> <FONT STYLE="font-size: 10pt">THE TRUST AND BITCOIN PRICES</FONT> </TD>
    <TD STYLE="white-space: nowrap; text-align: right"> <FONT STYLE="font-size: 10pt">57</FONT> </TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 12pt; text-indent: -12pt"> <FONT STYLE="font-size: 10pt">CALCULATION OF NAV</FONT> </TD>
    <TD STYLE="white-space: nowrap; text-align: right"> <FONT STYLE="font-size: 10pt">61</FONT> </TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 12pt; text-indent: -12pt"> <FONT STYLE="font-size: 10pt">ADDITIONAL INFORMATION ABOUT THE TRUST</FONT> </TD>
    <TD STYLE="white-space: nowrap; text-align: right"> 63 </TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 12pt; text-indent: -12pt"> <FONT STYLE="font-size: 10pt">THE TRUST&#8217;S SERVICE PROVIDERS</FONT> </TD>
    <TD STYLE="white-space: nowrap; text-align: right"> <FONT STYLE="font-size: 10pt">65</FONT> </TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 12pt; text-indent: -12pt"> <FONT STYLE="font-size: 10pt">CUSTODY OF THE TRUST&#8217;S ASSETS</FONT> </TD>
    <TD STYLE="white-space: nowrap; text-align: right"> <FONT STYLE="font-size: 10pt">67</FONT> </TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 12pt; text-indent: -12pt"> <FONT STYLE="font-size: 10pt">FORM OF SHARES</FONT> </TD>
    <TD STYLE="white-space: nowrap; text-align: right"> <FONT STYLE="font-size: 10pt">69</FONT> </TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 12pt; text-indent: -12pt"> <FONT STYLE="font-size: 10pt">PLAN OF DISTRIBUTION</FONT> </TD>
    <TD STYLE="white-space: nowrap; text-align: right"> <FONT STYLE="font-size: 10pt">70</FONT> </TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 12pt; text-indent: -12pt"> <FONT STYLE="font-size: 10pt">CREATION AND REDEMPTION OF SHARES</FONT> </TD>
    <TD STYLE="white-space: nowrap; text-align: right"> <FONT STYLE="font-size: 10pt">72</FONT> </TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 12pt; text-indent: -12pt"> <FONT STYLE="font-size: 10pt">USE OF PROCEEDS</FONT> </TD>
    <TD STYLE="white-space: nowrap; text-align: right"> <FONT STYLE="font-size: 10pt">75</FONT> </TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 12pt; text-indent: -12pt"> <FONT STYLE="font-size: 10pt">CONFLICTS OF INTEREST</FONT> </TD>
    <TD STYLE="white-space: nowrap; text-align: right"> <FONT STYLE="font-size: 10pt">76</FONT> </TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 12pt; text-indent: -12pt"> <FONT STYLE="font-size: 10pt">DUTIES OF THE SPONSOR</FONT> </TD>
    <TD STYLE="white-space: nowrap; text-align: right"> <FONT STYLE="font-size: 10pt">78</FONT> </TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 12pt; text-indent: -12pt"> <FONT STYLE="font-size: 10pt">LIABILITY AND INDEMNIFICATION</FONT> </TD>
    <TD STYLE="white-space: nowrap; text-align: right"> <FONT STYLE="font-size: 10pt">78</FONT> </TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 12pt; text-indent: -12pt"> <FONT STYLE="font-size: 10pt">PROVISIONS OF FEDERAL AND STATE SECURITIES LAWS</FONT> </TD>
    <TD STYLE="white-space: nowrap; text-align: right"> <FONT STYLE="font-size: 10pt">80</FONT> </TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 12pt; text-indent: -12pt"> <FONT STYLE="font-size: 10pt">MANAGEMENT; VOTING BY SHAREHOLDERS</FONT> </TD>
    <TD STYLE="white-space: nowrap; text-align: right"> <FONT STYLE="font-size: 10pt">80</FONT> </TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 12pt; text-indent: -12pt"> <FONT STYLE="font-size: 10pt">BOOKS AND RECORDS</FONT> </TD>
    <TD STYLE="white-space: nowrap; text-align: right"> <FONT STYLE="font-size: 10pt">80</FONT> </TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 12pt; text-indent: -12pt"> <FONT STYLE="font-size: 10pt">STATEMENTS, FILINGS, AND REPORTS TO SHAREHOLDERS</FONT> </TD>
    <TD STYLE="white-space: nowrap; text-align: right"> 81 </TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 12pt; text-indent: -12pt"> <FONT STYLE="font-size: 10pt">FISCAL YEAR</FONT> </TD>
    <TD STYLE="white-space: nowrap; text-align: right"> 81 </TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 12pt; text-indent: -12pt"> <FONT STYLE="font-size: 10pt">GOVERNING LAW; CONSENT TO DELAWARE JURISDICTION</FONT> </TD>
    <TD STYLE="white-space: nowrap; text-align: right"> <FONT STYLE="font-size: 10pt">81</FONT> </TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 12pt; text-indent: -12pt"> <FONT STYLE="font-size: 10pt">LEGAL MATTERS</FONT> </TD>
    <TD STYLE="white-space: nowrap; text-align: right"> <FONT STYLE="font-size: 10pt">81</FONT> </TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 12pt; text-indent: -12pt"> EXPERTS </TD>
    <TD STYLE="white-space: nowrap; text-align: right"> 81 </TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 12pt; text-indent: -12pt"> <FONT STYLE="font-size: 10pt">UNITED STATES FEDERAL INCOME TAX CONSEQUENCES</FONT> </TD>
    <TD STYLE="white-space: nowrap; text-align: right"> <FONT STYLE="font-size: 10pt">82</FONT> </TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 12pt; text-indent: -12pt"> <FONT STYLE="font-size: 10pt">PURCHASES BY EMPLOYEE BENEFIT PLANS</FONT> </TD>
    <TD STYLE="white-space: nowrap; text-align: right"> <FONT STYLE="font-size: 10pt">86</FONT> </TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 12pt; text-indent: -12pt"> <FONT STYLE="font-size: 10pt">INFORMATION YOU SHOULD KNOW</FONT> </TD>
    <TD STYLE="white-space: nowrap; text-align: right"> <FONT STYLE="font-size: 10pt">86</FONT> </TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 12pt; text-indent: -12pt"> <FONT STYLE="font-size: 10pt">INTELLECTUAL PROPERTY</FONT> </TD>
    <TD STYLE="white-space: nowrap; text-align: right"> <FONT STYLE="font-size: 10pt">87</FONT> </TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 12pt; text-indent: -12pt"> <FONT STYLE="font-size: 10pt">WHERE YOU CAN FIND MORE INFORMATION</FONT> </TD>
    <TD STYLE="white-space: nowrap; text-align: right"> <FONT STYLE="font-size: 10pt">87</FONT> </TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 12pt; text-indent: -12pt"> REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM </TD>
    <TD STYLE="white-space: nowrap; text-align: right"> &nbsp;87 </TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 12pt; text-indent: -12pt"> <FONT STYLE="font-size: 10pt">APPENDIX A</FONT> </TD>
    <TD STYLE="white-space: nowrap; text-align: right"> <FONT STYLE="font-size: 10pt">88</FONT> </TD></TR>
  </TABLE>
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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">&#160;</P>

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

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><FONT STYLE="font-size: 10pt">This Prospectus
includes &#8220;forward-looking statements&#8221; which generally relate to future events or future performance. In some cases, you can
identify forward-looking statements by terminology such as &#8220;may,&#8221; &#8220;will,&#8221; &#8220;should,&#8221; &#8220;expect</FONT>,&#8221;
&#8220;intend<FONT STYLE="font-size: 10pt">,&#8221; &#8220;plan,&#8221; &#8220;anticipate,&#8221; &#8220;believe,&#8221; &#8220;estimate,&#8221;
&#8220;predict,&#8221; &#8220;potential&#8221; or the negative of these terms or other comparable terminology. All statements (other
than statements of historical fact) included in this Prospectus that address activities, events or developments that will or may occur
in the future, including such matters as movements in the cryptocurrencies markets and indexes that track such movements, the Trust&#8217;s
operations, the Sponsor&#8217;s plans and references to the Trust&#8217;s future success and other similar matters, are forward-looking
statements. These statements are only predictions. Actual events or results may differ materially. These statements are based upon certain
assumptions and analyses the Sponsor has made based on its perception of historical trends, current conditions and expected future developments,
as well as other factors appropriate in the circumstances. Whether or not actual results and developments will conform to the Sponsor&#8217;s
expectations and predictions, however, is subject to a number of risks and uncertainties, including the special considerations discussed
in this Prospectus, general economic, market and business conditions, changes in laws or regulations, including those concerning taxes,
made by governmental authorities or regulatory bodies, and other world economic and political developments. Consequently, all the forward-looking
statements made in this Prospectus are qualified by these cautionary statements, and there can be no assurance that actual results or
developments the Sponsor anticipates will be realized or, even if substantially realized, that they will result in the expected consequences
to, or have the expected effects on, the Trust&#8217;s operations or the value of its Shares. </FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</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">&#160;</P>

<DIV STYLE="padding-right: 2%; padding-left: 2%; border: Black 1pt solid">

<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>PROSPECTUS SUMMARY </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><I>This is only a summary of the information
contained in this Prospectus and, while it contains material information about the Trust and its Shares, it does not contain or summarize
all of the information about the Trust and the Shares contained in this Prospectus that is material and/or which may be important to
you. You should read this entire Prospectus before making an investment decision about the Shares. For a glossary of defined terms, see
Appendix A. </I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"> <I>As used below, Bitcoin with an uppercase
&ldquo;B&rdquo; is used to describe the system as a whole that is involved in maintaining the ledger of bitcoin ownership and facilitating
the transfer of bitcoin among parties. When referring to the digital asset within the Bitcoin network, bitcoin is written with a lower
-case &ldquo;b.&rdquo;</I> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Overview of the Trust, the Sponsor and Certain other Service Providers
</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"> The WisdomTree Bitcoin Fund (the &#8220;Trust&#8221;)
is an exchange-traded fund that issues common shares of beneficial interest (the &#8220;Shares&#8221;) that will be listed on the Cboe
BZX Exchange, Inc. (the &#8220;Exchange&#8221;) and will trade under a ticker symbol &#8220;BTCW.&#8221; </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><FONT STYLE="font-size: 10pt">WisdomTree Digital
Commodity Services, LLC (the &#8220;Sponsor&#8221;) is the sponsor of the Trust, Delaware Trust Company (the &#8220;Trustee&#8221;) is
the trustee of the Trust, </FONT>Coinbase Custody Trust Company LLC <FONT STYLE="font-size: 10pt">(the &#8220;Custodian&#8221;) is the
custodian of the Trust</FONT> that <FONT STYLE="font-size: 10pt">will hold all of the Trust&#8217;s bitcoin on the Trust&#8217;s behalf.
</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>The Trust&#8217;s Investment Objective and Strategies </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"> The Trust&rsquo;s investment objective is
to gain exposure to the price of bitcoin, less expenses and liabilities of the Trust&rsquo;s operations. In seeking to achieve its investment
objective, the Trust will hold bitcoin and will value its Shares daily based on the value of bitcoin as reflected by the CME CF Bitcoin
Reference Rate &ndash; New York Variant (the &ldquo;Reference Rate&rdquo;), which is an independently calculated value based on an aggregation
of executed trade flow of major bitcoin spot exchanges. The Reference Rate 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 Reference Rate 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 Trust is a passive
investment vehicle that does not seek to generate returns beyond tracking the price of bitcoin. The Trust will not utilize leverage,
derivatives or any similar arrangements in seeking to meet its investment objective. The Trust, the Sponsor and the service providers
will not loan or pledge the Trust's assets, nor will the Trust's assets serve as collateral for any loan or similar arrangement. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"> When the Trust sells or redeems its Shares,
it will do so in blocks of 5,000 Shares (a &ldquo;Basket&rdquo;) based on the quantity of bitcoin attributable to each Share of the Trust
(net of accrued but unpaid expenses and liabilities). For a subscription of Shares, the subscription shall be in the amount of either
bitcoin represented by the Basket being created or cash needed to purchase the amount of bitcoin represented by the Basket being created,
in each case as calculated by the Administrator. For a redemption of Shares, the Sponsor shall arrange for the bitcoin represented by
the Basket to be distributed in-kind or sold and the cash proceeds distributed. Financial firms that are authorized to purchase or redeem
Shares with the Trust (known as &ldquo;Authorized Participants&rdquo;) will deliver, or facilitate the delivery of, bitcoin to the Trust&rsquo;s
account with the Bitcoin Custodian or cash to the Trust&rsquo;s account with the Cash Custodian (as defined below) in exchange for Shares
when they purchase Shares, and will receive bitcoin (from the Bitcoin Custodian) or cash (from the Cash Custodian), as applicable, when
they redeem Shares with the Trust. The Transfer Agent (as defined below) will facilitate the processing of purchase and sale orders in
Baskets from the Trust. The initial price per share is $50 and was selected as an appropriate and convenient price that would facilitate
secondary market trading of shares. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">An investment in the Shares is anticipated to
be:</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 24.5pt"></TD><TD STYLE="width: 25pt"> &bull; </TD><TD> <I>Easily Accessible. </I>As the Shares will be listed on the
                                            Exchange, investors can invest in a portfolio comprised of bitcoin through a traditional
                                            brokerage account. The Trust provides investors with the opportunity to access the market
                                            for bitcoin through a traditional brokerage account without the potential barriers to entry
                                            or certain of the risks involved with holding or transferring bitcoin directly, acquiring
                                            it from a bitcoin exchange, or mining it. Investors may be able to more effectively implement
                                            strategic and tactical asset allocation strategies by investing in the Shares as compared
                                            to other means of investing in bitcoin. </TD></TR></TABLE>

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

</DIV>

<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">&#160;</P>

<DIV STYLE="padding-right: 2%; padding-left: 2%; border: Black 1pt solid">

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 24.5pt"></TD><TD STYLE="width: 25pt"> <FONT STYLE="font-size: 10pt">&#8226;</FONT> </TD><TD> <FONT STYLE="font-size: 10pt"><I>Exchange-traded
                                            and Transparent. </I>The Shares will trade on the Exchange, providing investors with an efficient
                                            means to implement various investment strategies. Furthermore, the Sponsor undertakes to
                                            cause the Trust&#8217;s holdings in bitcoin to be posted at www.wisdomtree.com</FONT>/investments
                                            <FONT STYLE="font-size: 10pt">daily, providing investors with a clear and timely picture
                                            of the Trust&#8217;s holdings in bitcoin. </FONT> </TD></TR></TABLE>




<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 24.5pt"></TD><TD STYLE="width: 25pt">&#8226;</TD><TD><I>Competitively Priced. </I>The Sponsor&#8217;s fee and
                                            certain other expenses paid by the Trust represent costs to an investor in the Shares. An
                                            investor&#8217;s decision to purchase Shares may be influenced by such fees and expenses
                                            relative to the costs associated with investing in bitcoin by other means.</TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 2pt; text-align: center"><B>Except when aggregated in Baskets,
Shares are not redeemable securities.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 2pt; text-align: center"><B>Baskets are only redeemable by Authorized
Participants.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"> Bitcoin is believed to have been largely conceptualized
in 2008 and in early 2009 the first-ever bitcoin was mined. Bitcoin is a system for a decentralized digital value exchange that is designed
to enable units of bitcoin to be transferred across borders without the need for currency conversion. Bitcoin is not legal tender. The
supply of bitcoin is not determined by a central government, but rather by an open-source software program that limits both the total
amount of bitcoin that will be produced and the rate at which it is released into the network. Under the source code that governs the
Bitcoin network, the supply of new bitcoin is mathematically controlled so that the number of bitcoin grows at a limited rate pursuant
to a pre-set schedule. The number of bitcoin awarded for solving a new block is automatically halved after every 210,000 blocks are added
to the Bitcoin blockchain, approximately every 4 years. Currently, the fixed reward for solving a new block is 6.25 bitcoin per block
and this is expected to decrease by half to become 3.125 bitcoin in approximately early 2024. This deliberately controlled rate of bitcoin
creation means that the number of bitcoin in existence will increase at a controlled rate until the number of bitcoin in existence reaches
the pre-determined 21 million bitcoin. However, the 21 million supply cap could be changed in a hard fork. As of December 1, 2023, approximately
19.5 million bitcoins were outstanding and the date when the 21 million bitcoin limitation will be reached is estimated to be the year
2140. The responsibility for maintaining the official ledger of who owns what bitcoin and for validating new bitcoin transactions is
not entrusted to any single central entity. Instead, it is distributed among the network&rsquo;s participants. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Bitcoin was designed to be a scarce digital asset
that allowed peer-to-peer transfers of value in an environment whereby value could be transferred without the need for a central authority.
The underlying protocol is essentially an amalgamation of existing digital practices but is built on a foundation of encryption and cryptography,
hence the common name &#8220;cryptocurrency.&#8221; The ability to store value digitally with no central authority providing verification
is achieved through distributed ledger &#8211; essentially a peer-to-peer network that shares a record of all transactions and verifies
all new ones by each member checking them against the rules of the protocol and coming to consensus.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><FONT STYLE="font-size: 10pt">Bitcoin is based
on the decentralized, open-source protocol of a peer-to-peer electronic network (the &#8220;Bitcoin network&#8221;). </FONT>It is widely
understood that no <FONT STYLE="font-size: 10pt">single entity owns or operates the Bitcoin network. Bitcoin is not issued by governments,
banks or any other centralized authority. The infrastructure of the Bitcoin network is collectively maintained on a distributed basis
by the network&#8217;s participants, consisting of &#8220;miners,&#8221; who run special software to validate transactions, developers,
who maintain and contribute updates to the Bitcoin network&#8217;s source code, and users, who download and maintain on their individual
computer a full or partial copy of the Bitcoin Blockchain (as defined below) and related software. Anyone can be a user, developer, or
miner. The Bitcoin network is accessed through software, and software governs bitcoin&#8217;s creation, movement, and ownership. The
source code for the Bitcoin network and related software protocol is open-source, and anyone can contribute to its development. The value
of bitcoin is, in part, determined by the supply of, and demand for, bitcoin in the global markets for the trading of bitcoin, market
expectations for the adoption of bitcoin as a decentralized store of value, the number of merchants and/or institutions that accept bitcoin
as a form of payment, and the volume of peer-to-peer transactions, among other factors. </FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">As part of the Bitcoin network, bitcoin transaction
and ownership records are reflected on the Bitcoin blockchain, which is a digital public recordkeeping system or ledger (the &#8220;Bitcoin
Blockchain&#8221;). The buying, holding and selling of bitcoin is very different than the buying, holding and selling of more conventional
instruments like cash, stocks or bonds. For example, bitcoin must either be acquired through the process of &#8220;mining&#8221; (as
further described below), obtained in a peer-to-peer transaction, or purchased through an online trading platform where bitcoin is sold
(each a &#8220;bitcoin exchange&#8221;) or other intermediary, such as a broker in the institutional over-the-counter (&#8220;OTC&#8221;)
market. Peer-to-peer transactions may be difficult to arrange, and involve complex and potentially risky procedures around safekeeping,
transferring and holding the bitcoin. Alternatively, purchasing bitcoin on a bitcoin exchange requires choosing a bitcoin exchange, opening
an account, and transferring money from a bank account or credit card to the bitcoin exchange in order to purchase the bitcoin. Some
bitcoin exchanges have been subject to unauthorized cybersecurity breaches (&#8220;hacks&#8221;), resulting in significant losses to
end users.</P>

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

</DIV>

<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">&nbsp;</P>

<DIV STYLE="padding-right: 2%; padding-left: 2%; border: Black 1pt solid">

<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: 24.5pt">Miners authenticate and bundle bitcoin transactions
sequentially into files called &#8220;blocks,&#8221; which requires performing computational work to solve a cryptographic puzzle set
by the Bitcoin network&#8217;s software protocol. Because each solved block contains a reference to the previous block, they form a chronological
&#8220;chain&#8221; back to the first bitcoin transaction. Copies of the Bitcoin Blockchain are stored in a decentralized manner on the
computers of each individual Bitcoin network full node, i.e., any user who chooses to maintain on their computer a full copy of the Bitcoin
Blockchain as well as related software. Each bitcoin is associated with a set of unique cryptographic &#8220;keys,&#8221; in the form
of a string of numbers and letters, which allow whoever is in possession of the private key to assign that bitcoin in a transfer that
the Bitcoin network will recognize.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The Sponsor believes that the bitcoin market
has matured such that it is operating at a level of efficiency and scale similar in material respects to established global equity, fixed
income and commodity markets. The Sponsor believes that this maturation is indicated by various objective factors, including, but not
limited to:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 24.5pt"></TD><TD STYLE="width: 24.1pt">&#8226;</TD><TD>the launch of futures contracts for bitcoin on a major,
                                            established and regulated commodity futures exchange in the United States;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 24.5pt"></TD><TD STYLE="width: 24.1pt">&#8226;</TD><TD>the subsequent growth of significant trading volume in
                                            those futures contracts;</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 24.5pt"></TD><TD STYLE="width: 24.1pt"><FONT STYLE="font-size: 10pt">&#8226;</FONT></TD><TD><FONT STYLE="font-size: 10pt">increased
                                            participation by established institutional firms and publicly traded companies of all types</FONT>,
                                            <FONT STYLE="font-size: 10pt">that are both helping to drive demand for bitcoin and building
                                            out its market and blockchain infrastructures to accommodate established investment channels
                                            and bitcoin applications beyond investment;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 24.5pt"></TD><TD STYLE="width: 24.1pt">&#8226;</TD><TD>the public offering of shares in registered investment
                                            companies, including ETFs, that invest primarily in bitcoin futures pursuant to a registration
                                            statement declared effective by the SEC, and the offering of interests in private investment
                                            vehicles that invest in bitcoin by numerous investment managers;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 24.5pt"></TD><TD STYLE="width: 24.1pt">&#8226;</TD><TD>the arrival of major, established market makers that
                                            rely on sophisticated and technologically enabled trading systems to arbitrage price discrepancies
                                            that may appear between bitcoin prices on different bitcoin exchanges;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 24.5pt"></TD><TD STYLE="width: 24.1pt">&#8226;</TD><TD>the development of a robust bitcoin lending market;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 24.5pt"></TD><TD STYLE="width: 24.1pt">&#8226;</TD><TD>a significant expansion in the availability of institutional-quality
                                            custody services from regulated third-party custodians;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 20pt">and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 24.5pt"></TD><TD STYLE="width: 24.1pt">&#8226;</TD><TD>the advent and increasing prevalence of significant insurance
                                            on custodied assets held at third-party custodians.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">These factors, among others, have combined to
improve the efficiency of the bitcoin market, creating a dynamic, institutional-quality, two-sided market. For more information on bitcoin
and the Bitcoin network, see &#8220;Bitcoin, Bitcoin Market, Bitcoin Exchanges and Regulation of Bitcoin&#8221; below.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 10pt"><B>The </B></FONT><B>CME <FONT STYLE="font-size: 10pt">CF
Bitcoin </FONT>Reference Rate &#8211; New York Variant</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><FONT STYLE="font-size: 10pt">The Reference Rate,
which was introduced on </FONT>February 28, 2022<FONT STYLE="font-size: 10pt">, is based on materially the same methodology (except calculation
time) as the Administrator&#8217;s BRR, which was first introduced </FONT>in <FONT STYLE="font-size: 10pt">2016 and is the rate on which
bitcoin futures contracts are cash-settled in U.S. dollars at the CME. The administrator of the Reference Rate is CF Benchmarks Ltd.
(the &#8220;Benchmark Administrator&#8221;), and is a member of the Crypto Facilities group of companies which is in turn a member of
the Payward, Inc. group of companies. Payward, Inc. is the owner and operator of the Kraken Exchange. The Reference Rate is calculated
daily and aggregates the notional value of bitcoin trading activity across major bitcoin spot exchanges. </FONT></P>

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

</DIV>

<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">&#160;</P>

<DIV STYLE="padding-right: 2%; padding-left: 2%; border: Black 1pt solid">

<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: 24.5pt"><FONT STYLE="font-size: 10pt">The Sponsor believes
that the use of the Reference Rate 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)&#160;takes an observation period and divides it into equal
partitions of time; (ii)&#160;then calculates the volume-weighted median of all transactions within each partition; and (iii)&#160;the
value is determined from the </FONT>equally-weighted average <FONT STYLE="font-size: 10pt">of the volume-weighted medians. By employing
the foregoing steps, the Reference Rate 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. </FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">In addition, the Sponsor notes that an oversight
function is implemented by the Benchmark Administrator in seeking to ensure that the Reference Rate is administered through codified
policies for Reference Rate integrity.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Reference Rate data and the description of the
Reference Rate 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&#8217;s website is incorporated by reference into this prospectus</B>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Emerging Growth Company Status </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><FONT STYLE="font-size: 10pt">The Trust is an
&#8220;emerging growth company&#8221; as defined in the </FONT>JOBS Act. <FONT STYLE="font-size: 10pt">An emerging growth company may
take advantage of specified reduced reporting requirements and is relieved of certain other significant requirements that are otherwise
generally applicable to public companies. For as long as the Trust is an emerging growth company, unlike other public companies, it will
not be required to, among other things: </FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 24.5pt"></TD><TD STYLE="width: 24.1pt">&#8226;</TD><TD>provide an auditor&#8217;s attestation report on management&#8217;s
                                            assessment of the effectiveness of our system of internal control over financial reporting
                                            pursuant to Section&#160;404(b) of the Sarbanes-Oxley Act of 2002; or</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 24.5pt"></TD><TD STYLE="width: 24.1pt">&#8226;</TD><TD>comply with any new audit rules adopted by the Public
                                            Company Accounting Oversight Board after April&#160;5, 2012, unless the SEC determines otherwise.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"> The Trust will remain an &ldquo;emerging growth
company&rdquo; until the earliest of (i) the last day of the fiscal year during which it has $1.235 billion or more in total annual gross
revenues, (ii) the date on which the Trust is deemed to be a large accelerated filer, (iii) the date on which it has, during the previous
three year period, issued more than $1.0 billion of non-convertible debt or (iv) the last day of the fiscal year following the fifth
anniversary of its initial public offering. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">In addition, Section&#160;107 of the JOBS Act
also provides that an emerging growth company can take advantage of the extended transition period provided in Section&#160;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.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>The Trust&#8217;s Legal Structure </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The Trust is a Delaware statutory trust, formed
on March 8, 2021, pursuant to the Delaware Statutory Trust Act. The Trust continuously issues common shares representing fractional undivided
beneficial interest in and ownership of the Trust that may be purchased and sold on the Exchange. The Trust operates pursuant to the
Declaration of Trust and Trust Agreement (the &#8220;Trust Agreement&#8221;), dated as of [&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;].
Delaware Trust Company, a Delaware trust company, is the Delaware trustee of the Trust (the &#8220;Trustee&#8221;). The Trust is managed
and controlled by the Sponsor. The Sponsor is a limited liability company formed in the state of Delaware on March&#160;5, 2021.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"> The Trustee&rsquo;s principal office is located
at 251 Little Falls Drive, Wilmington, DE 19808. The Sponsor&rsquo;s address is 250 West 34th Street, 3rd Floor, New York, NY 10119,
and its telephone number is 866-909-9473 (WISE). The Trust Administrator&rsquo;s, Fund Accountant&rsquo;s, Cash Custodian&rsquo;s and
Transfer Agent&rsquo;s principal office is located at One Congress Street, Boston, MA 02114. The Bitcoin Custodian&rsquo;s address is
200 Park Avenue South, Suite 1208, New York, NY 10003. </P>

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

</DIV>

<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">&#160;</P>

<DIV STYLE="padding-right: 2%; padding-left: 2%; border: Black 1pt solid">

<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>The Trust&#8217;s Service Providers </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The Sponsor arranged for the creation of the
Trust and is responsible for the ongoing registration of the Shares for their public offering in the United States and the listing of
Shares on the Exchange. In addition, the Sponsor:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 24.45pt"> (i) selects (and may remove, change or replace) the
Trust&rsquo;s other service providers, including the Trustee, Trust Administrator, Transfer Agent, Custodian, Marketing Agent and the
Trust&rsquo;s auditor, as well as the Reference Rate; </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 24.45pt">(ii) negotiates various agreements and fees; and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 24.45pt">(iii) performs such other services as the Sponsor believes
that the Trust may from time to time require.</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"></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"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">As further described below, (i)&#160;the Trust
will pay the Sponsor a fee for its services provided to the Trust; and (ii)&#160;the Sponsor has agreed to pay all routine operational,
administrative and ordinary expenses of the Trust. The Sponsor will not be reimbursed in connection with the payment of such expenses.&#160;&#160;&#160;&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"> The Trustee, a Delaware trust company, acts
as the trustee of the Trust as required to create a Delaware statutory trust in accordance with the Declaration of Trust and the Delaware
Statutory Trust Act. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> <B><I>The Trust Administrator , Fund Accountant and Transfer Agent</I></B> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"> State Street Bank and Trust Company (&ldquo;State
Street&rdquo;) serves as the Trust&rsquo;s administrator (the &ldquo;Trust Administrator&rdquo;), fund accountant (the &ldquo;Fund Accountant&rdquo;)
and transfer agent for the Trust (the &ldquo;Transfer Agent&rdquo;). Under the Administration Agreement, the Trust Administrator provides
certain services necessary for the administration of the Trust and also provides certain services necessary for the operation of the
Trust, including net asset value calculations and accounting services. Under the Transfer Agency Agreement, the Transfer Agent facilitates
the issuance and redemption of Shares of the Trust. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B><I><U>Bitcoin</U>. </I></B>Coinbase Custody
Trust Company, LLC <FONT STYLE="font-size: 10pt">serves as the Trust&#8217;s custodian </FONT>for bitcoin <FONT STYLE="font-size: 10pt">(the
&#8220;</FONT>Bitcoin <FONT STYLE="font-size: 10pt">Custodian&#8221;). Under the </FONT>Bitcoin <FONT STYLE="font-size: 10pt">Custody
Agreement, the </FONT>Bitcoin <FONT STYLE="font-size: 10pt">Custodian is responsible for safekeeping all of the bitcoin owned by the
Trust. </FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"> <B><I><U>Cash</U></I></B><I>. </I>State Street
also serves as the Trust&rsquo;s custodian for the Trust&rsquo;s cash (the &ldquo;Cash Custodian&rdquo;). Under the Cash Custodian Agreement
(the &ldquo;Cash Custody Agreement&rdquo;), the Cash Custodian is responsible for safekeeping all of all cash and other non-digital assets
owned by the Trust, if any. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><FONT STYLE="font-size: 10pt">Foreside Fund
Services, LLC (the &#8220;Marketing Agent&#8221;) is responsible for reviewing and approving the marketing materials prepared by the
Trust for compliance with applicable SEC and </FONT>Financial Industry Regulatory Authority (&#8220;FINRA&#8221;) <FONT STYLE="font-size: 10pt">advertising
laws, rules, and regulations. </FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>The Trust&#8217;s Fees and Expenses </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"> The Trust will pay the Sponsor a fee of [
]% (the &ldquo;Sponsor Fee&rdquo;). The Sponsor Fee is calculated on a daily basis (accrued at 1/365 of the applicable percentage of
the net asset value (the &ldquo;NAV&rdquo;) on that day) and paid on a monthly basis. The Sponsor Fee will accrue and be payable in U.S.
dollars. The Trust&rsquo;s only ordinary recurring expense is expected to be the Sponsor Fee. In exchange for the Sponsor&rsquo;s Fee,
the Sponsor has agreed to assume the marketing and the following administrative expenses of the Trust: the fees of the Trustee, the Trust
Administrator, Fund Accountant, Transfer Agent, and Marketing Agent, the Custodians&rsquo; Fee, Exchange listing fees, SEC registration
fees, printing and mailing costs, tax reporting fees, audit fees, license fees and ordinary legal fees and expenses. The Sponsor will
also pay the costs of the Trust&rsquo;s organization and the initial sale of the Shares. There is no cap on the amount of these Sponsor
paid expenses. </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: 24.5pt"> The Sponsor may, at its sole discretion and
from time to time, waive all or a portion of the Sponsor Fee for stated periods of time. The Sponsor is under no obligation to waive
any portion of its fees and any such waiver shall create no obligation to waive any such fees during any period not covered by the waiver.
As of the date of this prospectus, the Sponsor has not decided to waive any of the Sponsor Fee and there are no specific circumstances
under which the Sponsor has determined it will waive the fee. </P>

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

</DIV>

<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"> &nbsp; </P>

<DIV STYLE="padding-right: 2%; padding-left: 2%; border: Black 1pt solid">

<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: 24.5pt"> The Trust may incur certain extraordinary,
non-recurring expenses that are not assumed by the Sponsor, including but not limited to, taxes and governmental charges, any applicable
brokerage commissions, financing charges or fees, Bitcoin network fees and similar transaction fees, expenses and costs of any extraordinary
services performed by the Sponsor (or any other service provider) on behalf of the Trust to protect the Trust or the interests of Shareholders
(including, for example, in connection with any fork of the Bitcoin blockchain, any Incidental Rights and any IR Virtual Currency, both
defined below in the section entitled &ldquo;BITCOIN, BITCOIN MARKET, BITCOIN EXCHANGES AND REGULATION OF BITCOIN &ndash; Bitcoin Protocol&rdquo;),
any indemnification of the Cash Custodian, Bitcoin Custodian, Trust Administrator or other agents, service providers or counterparties
of the Trust and extraordinary legal fees and expenses, including any legal fees and expenses incurred in connection with litigation,
regulatory enforcement or investigation matters. </P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"> Because the Trust does not have any income,
it will need to sell bitcoin to cover the Sponsor&rsquo;s Fee and expenses not assumed by the Sponsor, if any. The Trust may also be
subject to other liabilities (for example, as a result of litigation) that have also not been assumed by the Sponsor. The only source
of funds to cover those liabilities will be sales of bitcoin held by the Trust. Even if there are no expenses other than those assumed
by the Sponsor, and there are no other liabilities of the Trust, the Trust will still need to sell bitcoin to pay the Sponsors Fee. The
result of these sales is a decrease in the amount of bitcoin represented by each Share. </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: 24.5pt"> To cover the Sponsor&rsquo;s Fee and expenses
not assumed by the Sponsor, the Sponsor or its delegate will cause the Trust (or its delegate) to convert bitcoin into U.S. dollars at
the price available through Coinbase, Inc. (&ldquo;Coinbase Inc.&rdquo; or the &ldquo;Prime Broker&rdquo;, which is an affiliate of the
Bitcoin Custodian). The number of bitcoins represented by a Share will decline each time the Trust pays the Sponsor Fee or any Trust
expenses not assumed by the Sponsor by transferring or selling bitcoins. The Trust is responsible for paying any costs associated with
the transfer of bitcoin to the Sponsor or the sale of bitcoin. However, under the terms of each Authorized Participant Agreement, the
Authorized Participants will be responsible for any brokerage or transaction costs associated with the sale or transfer of Bitcoin incurred
in connection with the fulfillment of a creation or redemption order. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Understanding Custody (Storage) of Digital Assets such as Bitcoin
</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">There 2 main options for storage:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 24.5pt"></TD><TD STYLE="width: 24.1pt"><FONT STYLE="font-size: 10pt">&#8226;</FONT></TD><TD><FONT STYLE="font-size: 10pt"><U>Hot
                                            storage</U>: Private keys used to sign transactions and prove ownerships of funds are held
                                            on online devices, that is to say connected to internet, and therefore do not </FONT>necessarily
                                            <FONT STYLE="font-size: 10pt">require human intervention to extract. As it is online it is
                                            more accessible, but it is </FONT>also <FONT STYLE="font-size: 10pt">more likely to be </FONT>a
                                            target for attackers<FONT STYLE="font-size: 10pt">. Common market practice is to only keep
                                            a small amount of a given cryptocurrency in hot wallets for trading, quick transfer etc.
                                            Attacks on </FONT>holdings of <FONT STYLE="font-size: 10pt">cryptocurrencies and hacking
                                            of private keys </FONT>commonly <FONT STYLE="font-size: 10pt">impacts hot wallet storage</FONT>,
                                            as opposed to cold wallet storage<FONT STYLE="font-size: 10pt">. </FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>


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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 24.5pt"></TD><TD STYLE="width: 24.1pt">&#8226;</TD><TD><U>Cold storage:</U> Private keys used to sign transactions
                                            and prove ownerships of funds are held on offline devices (<I>i.e.,</I> without connection
                                            to the internet) and therefore requires human intervention to extract. This feature makes
                                            it more secure, as further described immediately below, but more difficult to access.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 10pt"><B>Custody (Storage) of the Trust&#8217;s
</B></FONT><B>Bitcoin</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"> The Trust&rsquo;s Bitcoin Custodian will keep
custody of all of the Trust&rsquo;s bitcoin in one or more accounts that are required to be segregated from the assets held by the Bitcoin
Custodian as principal and the assets of its other customers (the &ldquo;Vault Balance&rdquo;). The Bitcoin Custodian will keep a substantial
portion of the private keys associated with the Trust&rsquo;s bitcoin in &ldquo;cold storage&rdquo; (the &ldquo;Cold Vault Balance&rdquo;),
with any remainder of the Vault Balance held as part of a &ldquo;hot storage&rdquo; (the &ldquo;Hot Vault Balance&rdquo;). Cold storage
is a safeguarding method with multiple layers of protections and protocols, by which the private key(s) corresponding to the Trust&rsquo;s
bitcoin is (are) generated and stored in an offline manner. Private keys are generated in offline computers that are not connected to
the internet so that they are resistant to being hacked. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><FONT STYLE="font-size: 10pt">Cold storage of
private keys may involve keeping such keys in an offline environment or non-networked computer or electronic device or storing the public
key and private keys on a storage device (for example, a USB thumb drive) or printed medium and deleting the keys from all computers.
</FONT>The Bitcoin <FONT STYLE="font-size: 10pt">Custodian may receive deposits of bitcoin but may not send bitcoin without use of the
corresponding private keys. In order to send bitcoin when the private keys are kept in cold storage, either the private keys must be
retrieved from cold storage and entered into a software program to sign the transaction, or the unsigned transaction must be sent to
the &#8220;cold&#8221; server in which the private keys are held for signature by the private keys. At that point, the </FONT>Bitcoin
<FONT STYLE="font-size: 10pt">Custodian can transfer the bitcoin. Investors should, however, be aware that bitcoin in transit from Authorized
Participants to cold storage or from cold storage to Authorized Participants will be exposed to the internet. </FONT></P>

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

</DIV>

<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">&#160;</P>

<DIV STYLE="padding-right: 2%; padding-left: 2%; border: Black 1pt solid">

<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: 24.5pt">The Trust&#8217;s Transfer Agent will facilitate
the settlement of Shares in response to the placement of creation orders and redemption orders from Authorized Participants.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">NAV means the total assets of the Trust including,
but not limited to, all bitcoin, cash or other assets, less total liabilities of the Trust, each determined on the basis of generally
accepted accounting principles in the U.S., consistently applied under the accrual method of accounting.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"> The Trust Administrator calculates the NAV
of the Trust and NAV per Share once each day that the Exchange is open for regular trading. 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. The Sponsor undertakes to post each daily NAV and NAV per Share at www.wisdomtree.com/investments. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"> The Trust continuously offers Baskets consisting
of 5,000 Shares to Authorized Participants. See &ldquo;Creation and Redemption of Shares.&rdquo; Authorized Participants may then offer
Shares to the public at prices that depend on various factors, including the supply and demand for Shares, the value of the Trust&rsquo;s
assets, and market conditions at the time of a transaction. Authorized Participants pay a transaction fee for each order they place to
create or redeem one or more Baskets. Investors who buy or sell Shares during the day from their broker may do so at a premium or discount
relative to the NAV of the Shares of the Trust. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><FONT STYLE="font-size: 10pt">The offering of
the Shares is a best efforts offering. The Trust does not intend to issue fractions of a Basket. The Shares are traded on the Exchange
under the symbol &#8220;BTCW.&#8221; </FONT>Prior to this offering, there has been no public market for the Shares. <FONT STYLE="font-size: 10pt">Investors
that purchase Shares through a commission or fee-based brokerage account may pay commissions or fees charged by the brokerage account.
Investors should review the terms of their brokerage accounts for details on applicable charges. </FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">It is expected that owners of Shares will be
treated, for U.S. federal income tax purposes, as if they own a proportionate share of the assets of the Trust, as if they directly receive
a proportionate share of any income of the Trust, and as if they will incur a proportionate share of the expenses of the Trust. Consequently,
each sale of bitcoin by the Trust (which includes under current Internal Revenue Service (&#8220;IRS&#8221;) guidance using bitcoin to
pay expenses of the Trust) would constitute a taxable event to shareholders. See &#8220;United States Federal Income Tax Consequences&#8212;Taxation
of U.S. Shareholders.&#8221;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><FONT STYLE="font-size: 10pt">Proceeds received
by the Trust from the issuance of Baskets consist of bitcoin</FONT> or cash. Deposits of bitcoin <FONT STYLE="font-size: 10pt">are held
by the </FONT>Bitcoin <FONT STYLE="font-size: 10pt">Custodian on behalf of the Trust</FONT>. Deposits of cash are held <FONT STYLE="font-size: 10pt">by
the </FONT>Cash <FONT STYLE="font-size: 10pt">Custodian </FONT>on behalf of <FONT STYLE="font-size: 10pt">the Trust</FONT>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> <B>Summary of Risk Factors </B> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"> <FONT STYLE="font-size: 10pt">An investment
in the Trust involves significant risks</FONT> and a high degree of risk. Digital assets, such as bitcoin, are highly speculative and
investors have the potential for loss of their entire investment in Shares. <FONT STYLE="font-size: 10pt">Some of the risks you may face
are summarized below. A more extensive discussion of these risks appears beginning on page 11. </FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 24.5pt"></TD><TD STYLE="width: 24.1pt">&#8226;</TD><TD>There can be no assurance that the Trust will achieve
                                            its investment objective.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 24.5pt"></TD><TD STYLE="width: 24.1pt">&#8226;</TD><TD>There is no assurance as to whether the Trust will be
                                            profitable or meet its expenses and liabilities.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 24.5pt"></TD><TD STYLE="width: 24.1pt"><FONT STYLE="font-size: 10pt">&#8226;</FONT></TD><TD><FONT STYLE="font-size: 10pt">An
                                            investment in the Trust carries with it the inherent risks associated with investments in
                                            bitcoin, the trading prices for which have exhibited high levels of volatility</FONT> and
                                            may continue to do so. <FONT STYLE="font-size: 10pt">Because of such volatility, Shareholders
                                            could lose all or substantially all of their investment in the Trust. </FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 24.5pt"></TD><TD STYLE="width: 24.1pt">&#8226;</TD><TD>Investors considering a purchase of Shares of the Trust
                                            should carefully consider how much of their total assets should be exposed to the bitcoin
                                            market, and should fully understand, be willing to assume, and have the financial resources
                                            necessary to withstand, the risks involved in the Trust&#8217;s investment strategy, and
                                            be in a position to bear the potential loss of their entire investment in the Trust.</TD></TR></TABLE>

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

</DIV>

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

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<DIV STYLE="padding-right: 2%; padding-left: 2%; border: Black 1pt solid">

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 24.5pt"></TD><TD STYLE="width: 24.1pt">&#8226;</TD><TD>The value of Shares depends on the development and acceptance
                                            of the Bitcoin network. The Bitcoin <FONT STYLE="font-size: 10pt">network is in the early
                                            stages of development and has a limited history, and there is no assurance that usage of
                                            </FONT>B<FONT STYLE="font-size: 10pt">itcoin network, and bitcoin itself, will continue to
                                            grow. </FONT>The slowing or stopping of the development of the Bitcoin network or acceptance
                                            of the Bitcoin network may adversely affect an investment in the Trust.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 27pt"></TD><TD STYLE="width: 22.5pt"> <FONT STYLE="text-decoration: none">&#8226;</FONT> </TD><TD STYLE="text-align: justify; padding-right: 5.5pt"> <FONT STYLE="text-decoration: none">The
                                            trading prices of many digital assets, including bitcoin, have experienced extreme volatility
                                            in recent periods and may continue to do so. Extreme volatility in the future, including
                                            declines in the trading prices of bitcoin, could have a material adverse affect on the value
                                            of the Shares and the Shares could lose all or substantially all of their value. </FONT> </TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 24.5pt"></TD><TD STYLE="width: 24.1pt">&#8226;</TD><TD>Regulation of bitcoin and the Bitcoin network continues
                                            to evolve in both the U.S. and foreign jurisdictions, which may result in restrictions on
                                            the use of bitcoin or otherwise impact the demand for bitcoin.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 24.5pt"></TD><TD STYLE="width: 24.1pt">&#8226;</TD><TD>Disruptions at bitcoin exchanges and in the OTC market
                                            could adversely affect the availability of bitcoin and the ability of Authorized Participants
                                            to purchase or sell bitcoin and therefore their ability to create and redeem Shares of the
                                            Trust.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 22.5pt"></TD><TD STYLE="width: 27pt"><FONT STYLE="font-size: 10pt">&#8226;</FONT></TD><TD><FONT STYLE="font-size: 10pt">The
                                            loss or destruction of certain &#8220;private keys,&#8221; including by the </FONT>Bitcoin
                                            <FONT STYLE="font-size: 10pt">Custodian, could prevent the Trust from accessing its bitcoin.
                                            Loss of these private keys may be irreversible and could result in the loss of all or substantially
                                            all of an investment in the Trust. </FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 24.5pt"></TD><TD STYLE="width: 24.1pt">&#8226;</TD><TD>Bitcoin transactions are irrevocable and stolen or incorrectly
                                            transferred bitcoin may be irretrievable. As a result, any incorrectly or unexpected bitcoin
                                            transactions could adversely affect an investment in the Trust.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 24.5pt"></TD><TD STYLE="width: 24.1pt">&#8226;</TD><TD>The lack of full insurance and Shareholders&#8217; limited
                                            rights of legal recourse against the Trust and its service providers expose the Trust and
                                            its Shareholders to the risk of loss of the Trust&#8217;s bitcoin for which no person or
                                            entity is liable.</TD></TR></TABLE>





<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>
<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 24.5pt"></TD><TD STYLE="width: 24.1pt">&#8226;</TD><TD>The lack of using a bank custodian, or the loss of a
                                            critical banking relationship for, or the failure of a bank used by, the Trust, could adversely
                                            impact the Trust, its ability to operate or could cause losses to the Trust.</TD></TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

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<TD STYLE="width: 24.5pt"></TD><TD STYLE="width: 24.1pt"><FONT STYLE="font-size: 10pt">&#8226;</FONT></TD><TD><FONT STYLE="font-size: 10pt">The
                                            Reference Rate has a limited history and the price of bitcoin reflected therein is an average
                                            composite reference rate calculated using volume-weighted trading price data from certain
                                            bitcoin exchanges. These bitcoin exchanges may change over time and the Benchmark Administrator
                                            may remove or add bitcoin exchanges to the Reference Rate in the future, as well as the provisions
                                            of its publicly available criteria (the &#8220;CF Constituent Exchange Criteria&#8221;) accessible
                                            on its website at www.cfbenchmarks.com. </FONT> The Reference Rate could fail, or may not
                                            otherwise accurately track the global bitcoin price, which could adversely affect the value
                                            of the Shares.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 24.5pt"></TD><TD STYLE="width: 24.1pt"><FONT STYLE="font-size: 10pt">&#8226;</FONT></TD><TD><FONT STYLE="font-size: 10pt">The
                                            Trust&#8217;s return will likely not match the performance of the price of bitcoin because
                                            the Trust incurs operating expenses.</FONT> Further, the amount of bitcoin represented by
                                            the Shares will decline over time.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 24.5pt"></TD><TD STYLE="width: 24.1pt"><FONT STYLE="font-size: 10pt">&#8226;</FONT></TD><TD><FONT STYLE="font-size: 10pt">The
                                            NAV of the Trust may not always correspond to the market price of its Shares</FONT> or the
                                            global price of bitcoin <FONT STYLE="font-size: 10pt">for a number of reasons, including
                                            price volatility, trading activity, normal trading hours for the Trust, the calculation methodology
                                            of the NAV, and/or the closing of bitcoin exchanges due to fraud, failure, security breaches
                                            or otherwise. As a result, although creations and redemptions </FONT>may <FONT STYLE="font-size: 10pt">take
                                            place in-kind in transactions with Authorized Participants, Baskets may be created or redeemed
                                            at a dollar value that differs from the market price of the Shares. Consequently, an Authorized
                                            Participant may be able to create or redeem a Basket of Shares at a discount or a premium
                                            to NAV. Investors also should note that the size of the Trust in terms of total assets held
                                            may change substantially over time and from time to time as Baskets are created and redeemed.
                                            </FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 22.5pt"></TD><TD STYLE="width: 26.1pt">&#8226;</TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">Potential
                                            conflicts of interest may arise among the Sponsor or its affiliates and the Trust. The Sponsor
                                            and its affiliates have no fiduciary duties to the Trust and its Shareholders other than
                                            as provided in the Trust Agreement, which may permit them to favor their own interests to
                                            the detriment of the Trust and its Shareholders.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

</DIV>

<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"><B>&#160;</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><I>You should consider carefully the risks described
below before making an investment decision. You should also refer to the other information included in this prospectus, as well as information
found in documents incorporated by reference in this prospectus, before you decide to purchase any Shares. These risk factors may be
amended, supplemented or superseded from time to time by risk factors contained in any periodic report, prospectus supplement, post-effective
amendment or in other reports filed with the SEC in the future. </I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><U>Risk Factors Associated with bitcoin and the Bitcoin Network
</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Digital assets such as bitcoin are relatively new, and the 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 that are uncertain and difficult to evaluate. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><FONT STYLE="font-size: 10pt">Digital assets
such as bitcoin are relatively new, and the value of the Shares is influenced by a wide variety of factors that are uncertain and difficult
to evaluate, such as the infancy of their development, their dependence on technologies such as cryptographic protocols, their dependence
on the role played by miners and developers and the potential for malicious activity. For example, the following are some of the risks
</FONT>that <FONT STYLE="font-size: 10pt">could materially adversely affect the value of the Shares: </FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 24.5pt"></TD><TD STYLE="width: 24.1pt">&#8226;</TD><TD>Bitcoin&#8217;s lack of a physical form, reliance on
                                            technology for its creation, existence and transactional validation and its decentralization
                                            may subject its integrity to the threat of malicious attacks and technological obsolescence.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 24.5pt"></TD><TD STYLE="width: 24.1pt"><FONT STYLE="font-size: 10pt">&#8226;</FONT></TD><TD><FONT STYLE="font-size: 10pt">As
                                            an intangible asset without centralized issuers or governing bodies, bitcoin has been, and
                                            may in the future be, subject to security breaches, </FONT>coordinated manipulation, <FONT STYLE="font-size: 10pt">cyberattacks
                                            or other malicious activities, as well as human errors or computer malfunctions that may
                                            result in the loss or destruction of private keys needed to access such assets. While the
                                            Sponsor intends to take reasonable measures to secure the Trust&#8217;s holdings in bitcoin,
                                            if such threats are realized or the measures or controls created or implemented to secure
                                            the bitcoin holdings fail, it could result in a partial or total misappropriation or loss
                                            of the Trust&#8217;s bitcoin holdings, and the Trust&#8217;s financial condition and operating
                                            results would be harmed. </FONT></TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 24.5pt"></TD><TD STYLE="width: 24.1pt"> &bull; </TD><TD> The trading prices of many digital assets, including bitcoin,
                                            have experienced extreme volatility in recent periods and may continue to do so. Based on
                                            the last ten years, the historical annualized volatility of bitcoin was approximately 81%.
                                            Over the course of 2021, there were steep increases in the value of certain digital assets,
                                            including bitcoin and multiple market observers asserted that digital assets were experiencing
                                            a &ldquo;bubble.&rdquo; These increases were followed by steep drawdowns throughout 2022
                                            in digital asset trading prices, including for bitcoin. In the 2021-2022 cycle, the price
                                            of bitcoin peaked at $67,734 and bottomed at $15,632, marking a steep 77% drawdown. These
                                            episodes of rapid price appreciation followed by steep drawdowns have occurred multiple times
                                            throughout bitcoin&rsquo;s history, including in 2011, 2013-2014, and 2017-2018, before repeating
                                            again in 2021-2022. Extreme volatility may persist and the value of the Shares may significantly
                                            decline in the future without recovery. The digital asset markets may still be experiencing
                                            a bubble or may experience a bubble again in the future. For example, in the first half of
                                            2022, each of Celsius Network, Voyager Digital Ltd., and Three Arrows Capital declared bankruptcy,
                                            resulting in a loss of confidence in participants of the digital asset ecosystem and negative
                                            publicity surrounding digital assets more broadly. In November 2022, FTX Trading Ltd. (&ldquo;FTX&rdquo;),
                                            one of the largest digital asset exchanges by volume at the time, halted customer withdrawals
                                            amid rumors of the company&rsquo;s liquidity issues and likely insolvency, which were subsequently
                                            corroborated by its CEO. Shortly thereafter, FTX&rsquo;s CEO resigned and FTX and many of
                                            its affiliates filed for bankruptcy in the United States, while other affiliates have entered
                                            insolvency, liquidation, or similar proceedings around the globe, following which the U.S.
                                            Department of Justice brought criminal fraud and other charges, and the SEC and CFTC brought
                                            civil securities and commodities fraud charges, against certain of FTX&rsquo;s and its affiliates&rsquo;
                                            senior executives, including its former CEO. In addition, several other entities in the digital
                                            asset industry filed for bankruptcy following FTX&rsquo;s bankruptcy filing, such as BlockFi
                                            Inc. and Genesis Global Capital, LLC (&ldquo;Genesis&rdquo;). In response to these events
                                            (collectively, the &ldquo;2022 Events&rdquo;), the digital asset markets have experienced
                                            extreme price volatility and other entities in the digital asset industry have been, and
                                            may continue to be, negatively affected, further undermining confidence in the digital asset
                                            markets. These events have also negatively impacted the liquidity of the digital asset markets
                                            as certain entities affiliated with FTX engaged in significant trading activity. If the liquidity
                                            of the digital asset markets continues to be negatively impacted by these events, digital
                                            asset prices, including bitcoin, may continue to experience significant volatility or price
                                            declines and confidence in the digital asset markets may be further undermined. In addition,
                                            regulatory and enforcement scrutiny has increased, including from, among others, the Department
                                            of Justice, the SEC, the CFTC, the White House and Congress, as well as state regulators
                                            and authorities. These events are continuing to develop and the full facts are continuing
                                            to emerge. It is not possible to predict at this time all of the risks that they may pose
                                            to the Trust, its service providers or to the digital asset industry as a whole. Extreme
                                            volatility in the future, including further declines in the trading prices of bitcoin, could
                                            have a material adverse effect on the value of the Shares and the Shares could lose all or
                                            substantially all of their value. The Trust is not actively managed and will not take any
                                            actions to take advantage, or mitigate the impacts, of volatility in the price of bitcoin. </TD></TR></TABLE>

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

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<TD STYLE="width: 24.5pt"></TD><TD STYLE="width: 24.1pt"><FONT STYLE="font-size: 10pt">&#8226;</FONT></TD><TD><FONT STYLE="font-size: 10pt">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, including
                                            by the </FONT>Bitcoin <FONT STYLE="font-size: 10pt">Custodian, the Trust will be unable to
                                            access the bitcoin corresponding to that private key, resulting in loss. </FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 24.5pt"></TD><TD STYLE="width: 24.1pt"><FONT STYLE="font-size: 10pt">&#8226;</FONT></TD><TD><FONT STYLE="font-size: 10pt">Digital
                                            asset networks and the software used to operate them are in the early stages of development.
                                            Digital assets have experienced, and the Sponsor expects 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, including the Bitcoin network. </FONT>Further, given the recentness
                                            of the development of digital asset networks, digital assets may not function as intended
                                            and parties may be unwilling to use digital assets, which would dampen the growth, if any,
                                            of digital asset networks. Because bitcoin is a digital asset, the value of the Shares is
                                            subject to a number of factors relating to the fundamental investment characteristics of
                                            digital assets, including the fact that digital assets are bearer instruments and a theft,
                                            compromise, or destruction of the associated private keys could result in permanent loss
                                            of the asset.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 24.5pt"></TD><TD STYLE="width: 24.1pt">&#8226;</TD><TD>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, adversely
                                            affect their value.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 24.5pt"></TD><TD STYLE="width: 24.1pt">&#8226;</TD><TD>Because bitcoins have no physical existence beyond the
                                            record of transactions on the Bitcoin blockchain, a variety of technical factors related
                                            to the Bitcoin blockchain could also impact the price of bitcoin. For example, malicious
                                            attacks by &#8220;miners&#8221; who validate bitcoin transactions, inadequate mining fees
                                            to incentivize validating of bitcoin transactions, hard &#8220;forks&#8221; of the Bitcoin
                                            blockchain into multiple blockchains, and advances in quantum computing could undercut the
                                            integrity of the Bitcoin Blockchain and negatively affect the price of bitcoin.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 24.5pt"></TD><TD STYLE="width: 24.1pt">&#8226;</TD><TD>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 &#8220;fork&#8221; in such network&#8217;s blockchain,
                                            resulting in the creation of multiple separate networks, which could compete with one another
                                            for users, miners, and developers. This could adversely affect the Bitcoin network and bitcoin
                                            prices.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

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<TD STYLE="width: 24.5pt"></TD><TD STYLE="width: 24.1pt"><FONT STYLE="font-size: 10pt">&#8226;</FONT></TD><TD><FONT STYLE="font-size: 10pt">Governance
                                            of many digital asset networks, including 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&#8217;s utility and ability
                                            to grow and solve challenges</FONT> or lead to &#8220;forks&#8221;. <FONT STYLE="font-size: 10pt">In
                                            particular, it may be difficult to find solutions or mar</FONT>sh<FONT STYLE="font-size: 10pt">al
                                            sufficient effort to overcome current or future problems on the Bitcoin network. </FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 24.5pt"></TD><TD STYLE="width: 24.1pt">&#8226;</TD><TD>The foregoing notwithstanding, the Bitcoin network&#8217;s
                                            software protocol is informally managed by a group of core developers that propose amendments
                                            to the Bitcoin network&#8217;s source code.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 24.5pt"></TD><TD STYLE="width: 24.1pt">&#8226;</TD><TD>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="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 24.5pt"></TD><TD STYLE="width: 24.1pt">&#8226;</TD><TD>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 software protocol of the Bitcoin
                                            network could damage the network, and adversely affect the value of bitcoin.</TD></TR></TABLE>

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

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<TD STYLE="width: 24.5pt"></TD><TD STYLE="width: 24.1pt"><FONT STYLE="font-size: 10pt">&#8226;</FONT></TD><TD><FONT STYLE="font-size: 10pt">Bitcoin
                                            have only recently become selectively accepted as a means of payment by merchants and retail
                                            and commercial businesses, and use of bitcoin by consumers to pay such merchants and businesses
                                            remains limited. </FONT>As a result, the prices of bitcoins may be primarily determined by
                                            speculators and miners, thus contributing to price volatility that makes <FONT STYLE="font-size: 10pt">retailers
                                            less likely to accept it as a form of payment in the future. </FONT></TD></TR></TABLE>

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<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 24.5pt"></TD><TD STYLE="width: 24.1pt">&#8226;</TD><TD>Miners, developers and users may switch to or adopt certain
                                            digital asset networks 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="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 24.5pt"></TD><TD STYLE="width: 24.1pt"><FONT STYLE="font-size: 10pt">&#8226;</FONT></TD><TD><FONT STYLE="font-size: 10pt">Over
                                            the past several years, digital asset mining operations have become more costly as they have
                                            evolved from individual users mining with computer processors, graphics processing units
                                            and first generation application specific integrated circuit machines to &#8220;professionalized&#8221;
                                            mining operations using specialized hardware or sophisticated machines. </FONT>The reduction
                                            in mining rewards of bitcoin, including block reward halving events, which are events that
                                            occur after a specific period of time that reduce the block reward earned by miners, could
                                            be inadequate to incentivize miners to continue to perform mining activities. <FONT STYLE="font-size: 10pt">If
                                            the profit margins of digital asset mining operations are not sufficiently high, digital
                                            asset miners are more likely to immediately sell digital assets, earned by mining, resulting
                                            in an increase in liquid supply of that digital asset, which would generally tend to reduce
                                            that digital asset&#8217;s market price. </FONT>Moreover, concentration of mining operations
                                            could lead to a small number of mining operations having significant control or influence
                                            over the Bitcoin network.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>
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<TD STYLE="width: 24.5pt"></TD><TD STYLE="width: 24.1pt">&#8226;</TD><TD>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 Bitcoin 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 Bitcoin network.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 24.5pt"></TD><TD STYLE="width: 24.1pt">&#8226;</TD><TD>In the past, flaws in the source code for digital asset
                                            networks have been exposed and exploited, including flaws that disabled some functionality
                                            for users, exposed users&#8217; personal information and/or resulted in the theft of users&#8217;
                                            digital assets. The cryptography underlying Bitcoin could prove to be flawed or ineffective,
                                            or developments in mathematics and/or technology, such as advances in quantum computing,
                                            could result in such cryptography becoming ineffective, enabling a malicious actor to take
                                            the Trust&#8217;s bitcoin, which would adversely affect the value of the Shares. Even if
                                            another digital asset other than bitcoin were affected by similar circumstances, any reduction
                                            in confidence in the robustness of the source code or cryptography underlying digital assets
                                            generally could negatively affect the demand for all digital assets, including bitcoin, and
                                            therefore adversely affect the value of the Shares.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 24.5pt"></TD><TD STYLE="width: 24.1pt"><FONT STYLE="font-size: 10pt">&#8226;</FONT></TD><TD><FONT STYLE="font-size: 10pt">Banks
                                            and other established financial institutions may refuse to process funds for bitcoin transactions;
                                            process wire transfers to or from bitcoin exchanges, bitcoin-related companies or service
                                            providers; or maintain accounts for persons or entities transacting in bitcoin. This could
                                            dampen liquidity in the market and damage the public perception of digital assets generally
                                            or any one digital asset in particular, such as bitcoin, and their or its utility as a payment
                                            system, which could decrease the price of digital assets generally or individually. </FONT>Further,
                                            the lack of availability of banking services could prevent the Trust from being able to complete
                                            the timely liquidation of bitcoin and withdrawal of assets from the Bitcoin Custodian even
                                            if the Sponsor determined that such liquidation were appropriate or suitable.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Additionally, 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 or evaluate as of the date of this registration statement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>The value of the Shares relates directly to the value of bitcoin,
the value of which may be highly volatile and subject to fluctuations due to a number of factors. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The value of the Shares relates directly to the
value of the bitcoin held by the Trust. The price of bitcoin has fluctuated widely and may continue to experience significant price fluctuations,
which could adversely affect the value of the Shares.</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; text-indent: 24.5pt">The price of bitcoin could drop precipitously
(including to zero). Several factors may affect the price of bitcoin, including:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 24.5pt"></TD><TD STYLE="width: 24.1pt">&#8226;</TD><TD>Regulatory changes, whether in or outside the United
                                            States, which inhibit (or ban) the holding and/or transacting in bitcoin. For example, the
                                            application of securities laws and other regulations to such assets is unclear in many respects,
                                            and it is possible that regulators in the United States or foreign countries may create new
                                            regulations or interpret laws in a manner that adversely affects the price of bitcoin. The
                                            growth of the digital assets industry in general, and the use and acceptance of bitcoin in
                                            particular, may also impact the price of bitcoin and is subject to a high degree of uncertainty.</TD></TR></TABLE>

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

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<TD STYLE="width: 24.5pt"></TD><TD STYLE="width: 24.1pt"> &bull; </TD><TD> Global bitcoin existence was approximately 19,500,000, as
                                            of December 1, 2023, although not all of such bitcoin were in circulation as of such date,
                                            which amount varies day-over-day. The pace of worldwide growth in the adoption and use of
                                            bitcoin may depend, for instance, on public familiarity with digital assets, ease of buying
                                            and accessing bitcoin, institutional demand for bitcoin as an investment asset, consumer
                                            demand for bitcoin as a means of payment, regulatory or legislative developments and the
                                            availability and popularity of alternatives to bitcoin. Even if growth in bitcoin adoption
                                            occurs in the near or medium-term, there is no assurance that bitcoin usage will continue
                                            to grow over the long term; </TD></TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

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<TD STYLE="width: 24.5pt"></TD><TD STYLE="width: 24.1pt">&#8226;</TD><TD>The adoption of bitcoin as a medium of exchange, store-of-value
                                            or other consumptive asset and the maintenance and development of the open-source software
                                            protocol of the Bitcoin network, and speculative expectations related thereto;</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&#160;</P>

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<TD STYLE="width: 24.5pt"></TD><TD STYLE="width: 24.1pt">&#8226;</TD><TD>Forks in the Bitcoin network;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 24.5pt"></TD><TD STYLE="width: 24.1pt">&#8226;</TD><TD>Disruptions, failures, unavailability, or interruptions
                                            in service of trading venues for bitcoin, such as, for example, the announcement by the digital
                                            asset exchange FTX Trading that it would freeze withdrawals and transfers from its accounts
                                            and subsequent filing for bankruptcy protection and the recent SEC enforcement action brought
                                            against Binance Holdings Ltd., which initially sought to freeze all of its assets during
                                            the pendency of the enforcement action;</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&#160;</P>

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<TD STYLE="width: 22.5pt"></TD><TD STYLE="width: 27pt">&#8226;</TD><TD>The filing for bankruptcy protection by, liquidation of,
                                            or market concerns about the financial viability of digital asset custodians, trading venues,
                                            lending platforms, investment funds, or other digital asset industry participants, such as
                                            the filing for bankruptcy protection by digital asset trading venues FTX Trading and BlockFi
                                            and digital asset lending platforms Celsius Network and Voyager Digital Holdings in/ 2022,
                                            the ordered liquidation of the digital asset investment fund Three Arrows Capital in 2022,
                                            the announced liquidation of Silvergate Bank in 2023, the government-mandated closure and
                                            sale of Signature Bank in 2023, and the placement of Prime Trust, LLC into receivership following
                                            a cease-and-desist order issued by the Nevada Department of Business and Industry in 2023;</TD></TR></TABLE>

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

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<TD STYLE="width: 24.5pt"></TD><TD STYLE="width: 24.1pt">&#8226;</TD><TD>Investors&#8217; expectations with respect to interest
                                            rates, the rates of inflation of fiat currencies or bitcoin, and digital asset and fiat currency
                                            conversion and exchange rates;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

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                                            that adversely affect the price, ownership, transferability, trading volumes, legality or
                                            public perception of bitcoin, or that adversely affect the operations of or otherwise prevent
                                            digital asset custodians, trading venues, lending platforms or other digital assets industry
                                            participants from operating in a manner that allows them to continue to deliver services
                                            to the digital assets industry;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48.6pt; text-indent: -24.1pt">&#160;</P>

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<TD STYLE="width: 24.5pt"></TD><TD STYLE="width: 24.1pt">&#8226;</TD><TD>Developments in mathematics or technology, including
                                            in digital computing, algebraic geometry and quantum computing, that could result in the
                                            cryptography used by the Bitcoin Blockchain becoming insecure or ineffective;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

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<TD STYLE="width: 24.5pt"></TD><TD STYLE="width: 24.1pt">&#8226;</TD><TD>Monetary policies of governments, trade restrictions,
                                            currency devaluations and revaluations and regulatory measures or enforcement actions, if
                                            any, that restrict the use of bitcoin as a form of payment or the purchase of bitcoin on
                                            the bitcoin markets;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

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<TD STYLE="width: 24.5pt"></TD><TD STYLE="width: 24.1pt">&#8226;</TD><TD>Increased competition from other forms of digital assets
                                            or payment services, including digital currencies constituting legal tender that may be issued
                                            in the future by central banks, or digital assets meant to serve as a medium of exchange
                                            by major private companies or other institutions.</TD></TR></TABLE>

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

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                                            or regional political, economic or financial conditions, events and situations, such as the
                                            </FONT>COVID-19 <FONT STYLE="font-size: 10pt">coronavirus outbreak; </FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 24.5pt"></TD><TD STYLE="width: 24.1pt">&#8226;</TD><TD>Consumer and investor preferences and perceptions of
                                            bitcoin specifically and digital assets generally;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 24.5pt"></TD><TD STYLE="width: 24.1pt"><FONT STYLE="font-size: 10pt">&#8226;</FONT></TD><TD><FONT STYLE="font-size: 10pt">Decreased
                                            confidence in bitcoin </FONT>or digital asset <FONT STYLE="font-size: 10pt">exchanges generally
                                            due </FONT>to <FONT STYLE="font-size: 10pt">the failure of certain bitcoin </FONT>or digital
                                            asset <FONT STYLE="font-size: 10pt">exchanges or their being subject to hacks, service outages,
                                            </FONT>regulatory action, <FONT STYLE="font-size: 10pt">or manipulative trading activity,
                                            as well as to the</FONT> increase or <FONT STYLE="font-size: 10pt">lack of regulation and
                                            transparency associated with some of them; </FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 24.5pt"></TD><TD STYLE="width: 24.1pt">&#8226;</TD><TD>Fiat currency withdrawal and deposit policies on bitcoin
                                            exchanges;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 24.5pt"></TD><TD STYLE="width: 24.1pt">&#8226;</TD><TD>The liquidity of bitcoin markets;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 24.5pt"></TD><TD STYLE="width: 24.1pt">&#8226;</TD><TD>Levels of speculative interest and trading activity in
                                            bitcoin and other digital asset markets;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 24.5pt"></TD><TD STYLE="width: 24.1pt">&#8226;</TD><TD>Large transfers, transactions, or sales of bitcoin by
                                            significant holders of bitcoin, including accounts held by centralized exchanges (such as
                                            in liquidation), amounts re-entering the market related to dormant accounts or addresses
                                            (including those attributed to Satoshi Nakamoto), in addition to investment and trading activities
                                            of large holders of bitcoin in general;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 24.5pt"></TD><TD STYLE="width: 24.1pt">&#8226;</TD><TD>A &#8220;short squeeze&#8221; 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="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 24.5pt"></TD><TD STYLE="width: 24.1pt">&#8226;</TD><TD>An active derivatives market for bitcoin or for digital
                                            assets generally;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 24.5pt"></TD><TD STYLE="width: 24.1pt">&#8226;</TD><TD>Negative publicity, media, or social media coverage or
                                            sentiment due to events in or relating to, or perception of, bitcoin or the broader digital
                                            assets industries or markets, which may include (i) public perception that bitcoin can be
                                            used as a vehicle to circumvent sanctions, including sanctions imposed on Russia or certain
                                            regions related to the ongoing conflict between Russia and Ukraine; (ii) expected or pending
                                            civil, criminal, regulatory enforcement or other high profile actions against major participants
                                            in the bitcoin ecosystem, including the SEC&#8217;s enforcement actions against Ripple Labs,
                                            Coinbase, Inc. and Binance Holdings Ltd.; (iii) additional filings for bankruptcy protection
                                            or bankruptcy proceedings of major digital asset industry participants, such as the bankruptcy
                                            proceeding of FTX Trading and its affiliates; and (iv) the actual or perceived environmental
                                            impact of bitcoin and related activities, including environmental concerns raised by private
                                            individuals, governmental and non-governmental organizations, and other actors related to
                                            the energy resources consumed in the bitcoin mining process; (v) the restriction of access
                                            to cryptocurrency by service providers or financial institutions, such as banks, disallowing
                                            the purchase of cryptocurrency;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 24.5pt"></TD><TD STYLE="width: 24.1pt"><FONT STYLE="font-size: 10pt">&#8226;</FONT></TD><TD><FONT STYLE="font-size: 10pt">Fees
                                            associated with processing a bitcoin transaction and the speed at which bitcoin transactions
                                            are settled</FONT>; and</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 24.5pt"></TD><TD STYLE="width: 24.1pt">&#8226;</TD><TD>The availability and cost of funding and capital.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The Trust is not actively managed and does not
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 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 would harm the value of the Trust.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Due to the nature of private keys, bitcoin <FONT STYLE="font-size: 10pt">transactions
are irrevocable and stolen or incorrectly transferred bitcoin may be irretrievable. As a result, any incorrectly executed bitcoin transactions
could adversely affect an investment in the Trust. </FONT></I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><FONT STYLE="font-size: 10pt">Bitcoin transactions
are not reversible. Once a transaction has been</FONT> signed with private keys, <FONT STYLE="font-size: 10pt">verified and recorded
in a block that is added to the Bitcoin Blockchain, an incorrect transfer of cryptocurrency, such as bitcoin, or a theft of bitcoin generally
will not be reversible and the Trust may not be capable of seeking compensation for any such transfer or theft. To the extent that the
Trust is unable to successfully seek redress for such error or theft, such loss could adversely affect an investment in the Trust. </FONT></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">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><FONT STYLE="font-size: 10pt">The custody of
the Trust&#8217;s bitcoin is handled by the </FONT>Bitcoin Custodian. <FONT STYLE="font-size: 10pt">The Sponsor has evaluated the procedures
and internal controls of the Trust&#8217;s Custodian to safeguard the Trust&#8217;s bitcoin holdings. </FONT>However, itis possible that,
through computer or human error, or through theft or criminal action, the Trust&#8217;s bitcoin could be transferred from the Trust&#8217;s
account at the Bitcoin Custodian in incorrect amounts or to unauthorized third parties, or to uncontrolled accounts. Alternatively, if
the Bitcoin <FONT STYLE="font-size: 10pt">Custodian&#8217;s internal procedures and controls are inadequate to safeguard the Trust&#8217;s
bitcoin holdings, and the Trust&#8217;s private key(s) is (are) lost, destroyed or otherwise damaged or compromised and no backup of
the private key(s) is (are) accessible, the Trust will be unable to access its bitcoin, which could adversely affect an investment in
the Shares of the Trust. When used to sign transactions, the risk of private key theft is heightened as security measures like encryption
need to be reversed in order to access and use the private key. In addition, if the Trust&#8217;s private key(s) is (are) misappropriated
and the Trust&#8217;s bitcoin holdings are stolen, including from or by the </FONT>Bitcoin <FONT STYLE="font-size: 10pt">Custodian, the
Trust could lose some or all of its bitcoin holdings, which could adversely impact an investment in the Shares of the Trust</FONT>. Such
events have occurred in connection with digital assets in the past and should not be unexpected in the future. For example, in September
2014, the Chinese digital asset exchange Huobi announced that it sent bitcoin to the wrong customers<FONT STYLE="font-size: 10pt">.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 10pt"><B><I>Security threats to the Trust&#8217;s
account with the</I></B></FONT><B><I> Bitcoin <FONT STYLE="font-size: 10pt">Custodian could result in the halting of Trust operations
and a loss of Trust assets or damage to the reputation of the Trust, each of which could result in a reduction in the price of the Shares.
</FONT></I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><FONT STYLE="font-size: 10pt">Security breaches,
computer malware and computer hacking attacks have been a prevalent concern in relation to digital assets. The Sponsor believes that
the Trust&#8217;s bitcoin held in the Trust&#8217;s account with the </FONT>Bitcoin <FONT STYLE="font-size: 10pt">Custodian will be an
appealing target to hackers or malware distributors seeking to destroy, damage or steal the Trust&#8217;s bitcoin and will only become
more appealing as the Trust&#8217;s assets grow. To the extent that the Trust, the Sponsor or the </FONT>Bitcoin <FONT STYLE="font-size: 10pt">Custodian
is unable to identify and mitigate or stop new security threats or otherwise adapt to technological changes in the digital asset industry,
the Trust&#8217;s bitcoin may be subject to theft, loss, destruction or other attack. </FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><FONT STYLE="font-size: 10pt">The Sponsor has
evaluated the security procedures in place for safeguarding the Trust&#8217;s bitcoin. Nevertheless, the security procedures cannot guarantee
the prevention of any loss due to a security breach, </FONT>hack, <FONT STYLE="font-size: 10pt">software defect or act of God that may
be borne by the Trust</FONT> and the security procedures may not protect against all errors, software flaws or other vulnerabilities
in the Trust&#8217;s technical infrastructure, which could result in theft, loss or damage of its assets<FONT STYLE="font-size: 10pt">.
</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The Sponsor does not control the Bitcoin Custodian&#8217;s
operations or their implementation of such security procedures and there can be no assurance that such security procedures will actually
work as designed or prove to be successful in safeguarding the Trust&#8217;s assets against all possible sources of theft, loss or damage.
Assets not held in cold storage, may be more vulnerable to security breach, hacking or loss than assets held in cold storage.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"> The security procedures and operational infrastructure
may be breached due to the actions of outside parties, error or malfeasance of Sponsor personnel, the Bitcoin Custodian, or otherwise,
and, as a result, an unauthorized party may obtain access to the Trust&rsquo;s account with the Bitcoin Custodian, the private keys (and
therefore bitcoin) or other data of the Trust. Additionally, outside parties may attempt to fraudulently induce Sponsor personnel, the
Bitcoin Custodian, or the Trust&rsquo;s other service providers to disclose sensitive information in order to gain access to the Trust&rsquo;s
infrastructure. As the techniques used to obtain unauthorized access, disable or degrade service, or sabotage systems change frequently,
or may be designed to remain dormant until a predetermined event and often are not recognized until launched against a target, the Sponsor,
the Bitcoin Custodian and/or other Trust service providers may be unable to anticipate these techniques or implement adequate preventative
measures. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><FONT STYLE="font-size: 10pt">An actual or perceived
breach of the Trust&#8217;s account with the </FONT>Bitcoin <FONT STYLE="font-size: 10pt">Custodian </FONT>and/<FONT STYLE="font-size: 10pt">or
</FONT>other Trust service providers <FONT STYLE="font-size: 10pt">could harm the Trust&#8217;s operations, result in partial or total
loss of the Trust&#8217;s assets, damage the Trust&#8217;s reputation and negatively affect the market perception of the effectiveness
of the Trust, all of which could in turn reduce demand for the Shares, resulting in a reduction in the price of the Shares. The Trust
may also cease operations, suspend redemptions or suffer a reduction in assets, the occurrence of which could similarly result in a reduction
in the price of the Shares. </FONT></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">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>The value of the Shares depends on the development and acceptance
of the Bitcoin network. The slowing or stopping of the development or acceptance of the Bitcoin network may adversely affect an investment
in the Trust. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The Bitcoin network, including the cryptographic
and algorithmic protocols associated with the operation of the Bitcoin Blockchain, has only been in existence since 2009, and bitcoin
markets have a limited performance record, making them part of a new and rapidly evolving industry that is subject to a variety of factors
that are difficult to evaluate. The growth of the digital asset industry in general, and the Bitcoin network in particular, is subject
to a high degree of uncertainty.&#160;For example, the following are some of the risks that could materially adversely affect the value
of the Shares:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 24.5pt"></TD><TD STYLE="width: 24.1pt">&#8226;</TD><TD>As the Bitcoin network continues to develop and grow,
                                            certain technical issues might be uncovered and the troubleshooting and resolution of such
                                            issues requires the attention and efforts of Bitcoin&#8217;s global development community.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 24.5pt"></TD><TD STYLE="width: 24.1pt">&#8226;</TD><TD>In August 2017, the Bitcoin network underwent a hard
                                            fork that resulted in the creation of a new digital asset network called Bitcoin Cash. This
                                            hard fork was contentious, and as a result some users of the Bitcoin Cash network may harbor
                                            ill will toward the Bitcoin network. These users may attempt to negatively impact the use
                                            or adoption of the Bitcoin network.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 24.5pt"></TD><TD STYLE="width: 24.1pt"><FONT STYLE="font-size: 10pt">&#8226;</FONT></TD><TD><FONT STYLE="font-size: 10pt">Also
                                            in August 2017, the Bitcoin Network was upgraded with a technical feature known as &#8220;Segregated
                                            Witness&#8221; with the promise of increasing the number of transactions per second that
                                            can be handled on-chain and enabling so-called second layer solutions, such as the Lightning
                                            Network or payment channels</FONT> which continue to be developed<FONT STYLE="font-size: 10pt">,
                                            that increase transaction throughput by processing certain transactions outside the main
                                            Bitcoin Blockchain. These upgrades may fail to achieve the expected benefits or widespread
                                            adoption, leading to a decline in public support for, and the price of, bitcoin. </FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 24.5pt"></TD><TD STYLE="width: 24.1pt">&#8226;</TD><TD>It is possible that some of the largest bitcoin wallets
                                            are controlled by the same person or entity, or that other persons or entities control multiple
                                            wallets that collectively hold a significant number of bitcoin, even if each wallet individually
                                            only holds a small amount. As a result of this potential concentration of ownership, large
                                            sales by such holders may have an adverse effect on the market price of bitcoin.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">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">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>A disruption of the Internet may affect the operation of the
Bitcoin network, which may adversely affect the bitcoin industry and an investment in the Trust. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The Bitcoin network relies on the Internet. A
significant disruption of Internet connectivity (i.e., one that affects large numbers of users or geographic regions) could disrupt the
Bitcoin network&#8217;s functionality and operations until the disruption in the Internet is resolved. A disruption in the Internet could
adversely affect an investment in the Trust or the ability of the Trust to operate.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Potential amendments to the Bitcoin network&#8217;s protocols
and software could, if accepted and authorized by the Bitcoin network community, adversely affect an investment in the Trust. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><FONT STYLE="font-size: 10pt">The Bitcoin network
uses a cryptographic protocol to govern the interactions within the Bitcoin network. A loose community known as the core developers has
evolved to informally manage the source code for the protocol. Membership in the community of core developers evolve over time, largely
based on self-determined participation in the resource section dedicated to bitcoin on Github.com. The core developers can propose amendments
to the Bitcoin network&#8217;s source code that</FONT>, if accepted by miners and users, <FONT STYLE="font-size: 10pt">could alter the
protocols and software of the Bitcoin network and the properties of bitcoin. These alterations would occur through software upgrades,
and could potentially include changes to the irreversibility of transactions and limitations on the mining of new bitcoin</FONT>, which
could undermine the appeal and market value of bitcoin. Alternatively, software upgrades and other changes to the protocols of the Bitcoin
network could fail to work as intended or could introduce bugs, security risks, or otherwise adversely affect, the speed, security, usability,
or value of the Bitcoin network or bitcoins. As a result, the <FONT STYLE="font-size: 10pt">Bitcoin network could be subject to new protocols
and software </FONT>in the future <FONT STYLE="font-size: 10pt">that may adversely affect an investment in the Trust. </FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</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">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>The open-source structure of the Bitcoin network protocol means
that the core developers and other contributors are generally not directly compensated for their contributions in maintaining and developing
the Bitcoin network protocol. A failure to properly monitor and upgrade the Bitcoin network protocol could damage the Bitcoin network
and an investment in the Trust. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><FONT STYLE="font-size: 10pt">The Bitcoin network
operates based on an open-source protocol maintained by the core developers and other contributors, largely on the GitHub resource section
dedicated to bitcoin development. As the Bitcoin network protocol is not sold or made available subject to licensing or subscription
fees and its use does not generate revenues for its development team, the core developers are generally not compensated for maintaining
and updating the </FONT>source code for the <FONT STYLE="font-size: 10pt">Bitcoin network protocol. Consequently, there is a lack of
financial incentive for developers to maintain or develop the Bitcoin network and the core developers may lack the resources to adequately
address emerging issues with the Bitcoin network protocol. Although the Bitcoin network is currently supported by the core developers,
there can be no guarantee that such support will continue or be sufficient in the future. For example, there have been recent reports
that the number of core developers who have the authority to make amendments to the Bitcoin network&#8217;s source code in the GitHub
repository is relatively small, although there are believed to be a larger number of developers who contribute to the overall development
of the source code of the Bitcoin network. Further, a bad actor could also attempt to interfere with the operation of the Bitcoin network
by attempting to, or actually, influencing a core developer in a negative way or with malintent. Alternatively, some developers may be
funded by entities whose interests are at odds with other participants in the Bitcoin network. To the extent that material issues arise
with the Bitcoin network protocol and the core developers and open-source contributors are unable to address the issues adequately or
in a timely manner, the Bitcoin network and an investment in the Trust may be adversely affected. </FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>A temporary or permanent &#8220;fork&#8221; of the Bitcoin Blockchain
could adversely affect an investment in the Trust. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><FONT STYLE="font-size: 10pt">Bitcoin software
is open-source. Any user can download the software, modify it and then propose that </FONT>the core developers, <FONT STYLE="font-size: 10pt">users
and miners adopt the modification. When a modification is introduced 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 with the software prior to its modification, the consequence would be what is known as a &#8220;fork&#8221; (i.e., &#8220;split&#8221;)
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&#8217;s bitcoin lacking interchangeability. Such a fork in the Bitcoin Blockchain typically would be addressed by community-led
efforts to merge the forked Bitcoin Blockchains, and several prior forks have been so merged. Since the Bitcoin network&#8217;s inception,
modifications to the Bitcoin network have </FONT>generally <FONT STYLE="font-size: 10pt">been accepted by the majority of users and miners,
ensuring that the Bitcoin network remains a coherent economic system and the focal point of the majority of developer activity. There
is no assurance, however, that this will continue to be the case, and if it is not, then the price of bitcoin could be negatively affected.
The original blockchain and the forked blockchain could potentially compete with each other for users, developers, and miners, leading
to a loss of these for the original blockchain. A fork of any kind could adversely affect an investment in the Trust or the ability of
the Trust to operate and the Trust&#8217;s procedures may be inadequate to address the effects of a fork. </FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><FONT STYLE="font-size: 10pt">Additionally, a
fork could be introduced by an unintentional, unanticipated software flaw in the multiple versions of otherwise compatible software users
run. </FONT>It is also possible that, in a future accidental or unintentional fork, a substantial number of users and miners could adopt
an incompatible version of the digital asset while resisting community-led efforts to merge the two blockchains, which could cause bitcoin
to decline in value. Further, a hard fark could lead to new security concerns.</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"> Forks have occurred already to the Bitcoin
network. For example, in August 2017, Bitcoin &ldquo;forked&rdquo; into Bitcoin and a new digital asset, Bitcoin Cash, as a result of
a several-year dispute over how to increase the rate of transactions that the Bitcoin network can process. At the time of the fork, bitcoin was valued at roughly $2,700. Within approximately two weeks following the
fork, bitcoin reached a value of roughly $4,000, while nearly four months later in mid-December 2017, bitcoin reached an all-time high
at the time of roughly $19,500, before dropping to roughly $14,000 prior to year-end 2017. Forks may also occur as a network community&rsquo;s response to a significant security breach.
For example, in July 2016, Ethereum &ldquo;forked&rdquo; into Ethereum and a new digital asset, Ethereum Classic, as a result of the
Ethereum network community&rsquo;s response to a significant security breach in which an anonymous hacker exploited a smart contract
running on the Ethereum network to syphon approximately $60 million of ETH held by the DAO, a distributed autonomous organization, into
a segregated account. In response to the hack, most participants in the Ethereum community elected to adopt a &ldquo;fork&rdquo; that
effectively reversed the hack. However, a minority of users continued to develop the original blockchain, now referred to as &ldquo;Ethereum
Classic&rdquo; with the digital asset on that blockchain now referred to as Ethereum Classic, or ETC. ETC now trades on several digital
asset exchanges. 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 Ethereum and Ethereum
Classic. In addition, many developers have previously initiated hard forks in the Blockchain to launch new digital assets, such as Bitcoin
Gold and Bitcoin Diamond. 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>

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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: 24.5pt"> Furthermore, a hard fork can lead to new security
concerns. For example, when the Ethereum and Ethereum Classic networks, two other digital asset networks, split in July 2016, replay
attacks, in which transactions from one network were rebroadcast to nefarious effect on the other network, plagued Ethereum exchanges
through at least October 2016. An Ethereum exchange announced in July 2016 that it had lost 40,000 Ethereum Classic, worth about $100,000
at that time, as a result of replay attacks. Similar replay attack concerns occurred in connection with the Bitcoin Cash and Bitcoin
Satoshi&rsquo;s Vision networks split in November 2018. Another possible result of a hard fork is an inherent decrease in the level of
security due to significant amounts of mining power remaining on one network or migrating instead to the new forked network. After a
hard fork, it may become easier for an individual miner or mining pool&rsquo;s hashing power to exceed 50% of the processing power of
a digital asset network that retained or attracted less mining power, thereby making digital asset networks that rely on proof-of-work
more susceptible to attack. A hard fork may adversely affect the price of bitcoin at the time of announcement or adoption. For example,
the announcement of a hard fork could lead to increased demand for the pre-fork digital asset, in anticipation that ownership of the
pre-fork digital asset would entitle holders to a new digital asset following the fork. The increased demand for the pre-fork digital
asset may cause the price of the digital asset to rise. After the hard fork, it is possible the aggregate price of the two versions of
the digital asset running in parallel would be less than the price of the digital asset immediately prior to the fork. Furthermore, while
the Sponsor will, as permitted by the terms of the Trust Agreement, determine which network is generally accepted as the Bitcoin network
and should therefore be considered the appropriate network for the Trust&rsquo;s purposes, there is no guarantee that the Sponsor will
choose the network and the associated digital asset that is ultimately the most valuable fork. Either of these events could therefore
adversely impact the value of the Shares. </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: 24.5pt"> A future fork in the Bitcoin network could
adversely affect the value of 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: 24.5pt"> In addition to forks, a digital asset 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. For example, in March 2017 the promoters of Stellar Lumens announced that anyone
that owned bitcoin as of June 26, 2017 could claim, until August 27, 2017, a certain amount of Stellar Lumens. Airdrops could create
operational security, legal or regulatory, or other risks for the Trust, the Sponsor, the Bitcoin Custodian, Authorized Participants,
or other entities. Typically, the holder of bitcoin has no discretion in a hard fork; it merely has the right to claim the new forked
asset on a pro rata basis while it continues to hold the same number of bitcoin. The Trust Agreement stipulates that if such a transaction
does occur, the Trust will as soon as possible direct the Bitcoin Custodian to distribute the new cryptocurrency in-kind to the Sponsor,
as agent for the Shareholders, and the Sponsor will arrange to sell the new cryptocurrency and for the proceeds to be distributed to
the Shareholders. However, the Trust may not be able, or it may not be practical, to secure or realize any economic benefit from the
new asset for various reasons. For example, the Trust is under no obligation to claim the forked asset if doing so is impossible, impractical,
prohibited by law, operationally burdensome, will expose the Trust, the Sponsor or the Trust&rsquo;s (original) bitcoin holdings to risk,
may cause the Trust to fail to qualify as a grantor trust under the Code or any comparable provision, or is otherwise inadvisable, in
each case, as determined by the Sponsor in its sole discretion. Alternatively, the Bitcoin Custodian may not agree to provide the Trust
with access to the new asset and/or the Sponsor may determine, in its sole discretion, to cause the Trust to irrevocably and permanently
abandon such forked assets for no consideration. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>In the event of a hard fork of the Bitcoin network, the Sponsor
will, if permitted by the terms of the Trust Agreement, use its discretion to determine which network should be considered the appropriate
network for the Trust&#8217;s purposes, and in doing so may adversely affect the value of the Shares. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><FONT STYLE="font-size: 10pt">In the event of
a hard fork of the Bitcoin network, the Sponsor will, if permitted by the terms of the Trust Agreement, use its discretion to determine,
in good faith, which peer-to-peer network, among a group of incompatible forks of the Bitcoin network, is generally accepted as the Bitcoin
network and should therefore be considered the appropriate network for the Trust&#8217;s purposes. The Sponsor will base its determination
on a variety of then relevant factors, including, but not limited to, the Sponsor&#8217;s beliefs regarding expectations of the core
developers of Bitcoin, users, service providers, businesses, miners and other constituencies, as well as the actual continued acceptance
of, mining power on, and community engagement with, the Bitcoin network. However, even after taking these factors into consideration,
there is no guarantee that the Sponsor&#8217;s determination as to the most appropriate network for the Trust&#8217;s purposes will ultimately
become the most valuable fork, which may adversely affect the value of the Shares. The Sponsor may also disagree with Shareholders</FONT>,
the Bitcoin Custodian, other service providers <FONT STYLE="font-size: 10pt">and security vendors on what is generally accepted as Bitcoin
and should therefore be considered &#8220;bitcoin&#8221; for the Trust&#8217;s purposes, which may also adversely affect the value of
the Shares. </FONT></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">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>The Bitcoin Blockchain could be vulnerable to a &#8220;51% attack,&#8221;
which could adversely affect an investment in the Trust or the ability of the Trust to operate. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><FONT STYLE="font-size: 10pt">If the majority
of the processing power dedicated to mining on the Bitcoin network is controlled by a bad actor </FONT>or actors <FONT STYLE="font-size: 10pt">(often
referred to as a &#8220;51% attack&#8221;), </FONT>such persons <FONT STYLE="font-size: 10pt">may be able to alter the Bitcoin Blockchain
on which the Bitcoin network and bitcoin transactions rely. This could occur if the bad actor</FONT>(s) <FONT STYLE="font-size: 10pt">were
to construct fraudulent blocks or prevent certain transactions from completing in a timely manner, or at all. It could be possible for
the malicious actor to control, exclude or modify the ordering of transactions, though it could not generate new bitcoin or transactions.
Further, a bad actor could &#8220;double-spend&#8221; its own bitcoin (i.e., spend the same bitcoin in more than one transaction) and
prevent the confirmation of other users&#8217; transactions for so long as it maintained control. If the Bitcoin community did not reject
the fraudulent blocks as malicious or to the extent that such bad actor did not yield its control of processing power, reversing any
changes made to the Bitcoin Blockchain may be impossible. The possible crossing of this threshold indicates a greater risk that a single
mining pool </FONT>or coordinate group of pools <FONT STYLE="font-size: 10pt">could exert authority over the validation of bitcoin transactions.
If the feasibility of a bad actor gaining control of the processing power on the Bitcoin network increases, there may be a negative effect
on an investment in the Trust. </FONT></P>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">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 and have reportedly forced 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">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The 51% threshold is the level which would almost
guarantee a malicious actor&#8217;s success. However, such attacks could in theory occur at thresholds lower than 51% of the available
hash power. In addition, 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">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">If such an attack occurred, even outside of the
Bitcoin Blockchain, investor sentiment in the infrastructure of digital assets generally could be adversely affected, effecting demand
and therefore ultimately the price of a digital asset such as bitcoin, thus adversely impacting the value of the Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Transacting in bitcoin is subject to illicit financing risk.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 5.5pt 0pt 2pt">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Although transaction details of peer-to-peer
transactions are recorded on the Bitcoin network, a buyer or seller of bitcoin on a peer-to-peer basis directly on the Bitcoin network
may never know to whom the public key belongs or the true identity of the party with whom it is transacting. Public key addresses are
randomized sequences of alphanumeric characters that, standing alone, do not provide sufficient information to identify users. In addition,
certain technologies &#8211; such as bitcoin trading platforms commonly referred to as &#8220;mixers&#8221; - may obscure the origin
or chain of custody of bitcoin. The opaque nature of the market poses asset verification challenges for market participants, regulators
and auditors and gives rise to an increased risk of manipulation and fraud, including the potential for Ponzi schemes, bucket shops and
pump and dump schemes. Bitcoin in the past has been used to facilitate illicit activities. If bitcoin (or other digital assets) were
used to facilitate illicit activities, businesses that facilitate transactions in bitcoin or other digital assets could be at increased
risk of potential criminal or civil lawsuits, or of having banking or other services cut off, and such digital asset could be removed
from digital asset exchanges. Any of the aforementioned occurrences could adversely affect the price of the relevant digital asset, including
bitcoin, the attractiveness of the respective blockchain network such as the Bitcoin network and an investment in the Shares. If the
Trust, the Sponsor or the Trustee were to transact with a sanctioned entity, the Trust, the Sponsor or the Trustee would be at risk of
investigation, potential criminal or civil lawsuits or liability. have their assets frozen, lose access to banking services or services
provided by other service providers, or suffer disruptions to their operations, any of which could negatively affect the Trust's ability
to operate or cause losses in value of the Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</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">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>If miners expend less processing power on the Bitcoin network,
it could increase the likelihood of a malicious actor obtaining control. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Miners ceasing operations would reduce the collective
processing power on the Bitcoin network, which would adversely affect the confirmation process for transactions (i.e., temporarily decreasing
the speed at which</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">blocks are added to the Bitcoin Blockchain until the next scheduled
adjustment in difficulty for block solutions). If a reduction in processing power occurs, the Bitcoin network may be more vulnerable
to a malicious actor obtaining control in excess of fifty percent (50%) of the processing power on the Bitcoin network. As a result,
it may be possible for a bad actor to manipulate the Bitcoin Blockchain and hinder transactions. Any reduction in confidence in the confirmation
process or processing power of the Bitcoin network may adversely affect an investment in the Trust.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Blockchain technologies are based on the theoretical conjectures
as to the impossibility of solving certain cryptographical puzzles quickly. These premises may be incorrect or may become incorrect due
to technological advances. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Blockchain technologies are premised on theoretical
conjectures as to the impossibility, in practice, of solving certain mathematical problems quickly. Those conjectures remain unproven,
however, and mathematical or technological advances could conceivably prove them to be incorrect. Blockchain technology companies may
also be negatively affected by cryptography or other technological advances, such as the development of quantum computers with significantly
more power than computers presently available, that undermine or vitiate the cryptographic consensus mechanism underpinning the Bitcoin
Blockchain and other distributed ledger protocols. If either of these events were to happen, markets that rely on blockchain technologies,
such as the Bitcoin network, could quickly collapse, and an investment in the Trust may be adversely affected.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>The price of bitcoin on the bitcoin market has exhibited periods
of extreme volatility, which could have a negative impact on the performance of the Trust. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The price of bitcoin as determined by the bitcoin
market has experienced periods of extreme volatility and may be influenced by a wide variety of factors. Speculators and investors who
seek to profit from trading and holding bitcoin generate a significant portion of bitcoin demand. Such speculation regarding the potential
future appreciation in the value of bitcoin may cause the price of bitcoin to increase. Conversely, a decrease in demand for or speculative
interest regarding bitcoin may cause the price to decline. The volatility of the price of bitcoin, particularly arising from speculative
activity, may have a negative impact on the performance of the Trust.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>The price of bitcoin may become closely correlated with other
asset classes</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="text-decoration: none">&#160;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 22.5pt"><FONT STYLE="text-decoration: none">Returns from
investing in bitcoin have at times diverged from and/or have not been correlated with those associated with other asset classes, but
there can be no assurance that there will be any such divergence, either generally or with respect to any particular asset class, or
that price movements will not be correlated. In addition, there is no assurance that bitcoin will maintain its value in the long, intermediate,
short, or any other term. In the event that the price of bitcoin declines, the value of the Shares are likely to decline proportionately.</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="text-decoration: none">&#160;</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="text-decoration: none">Prices of bitcoin
may be affected due to stablecoins, the activities of stablecoin issuers and their regulatory treatment</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 22.5pt">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 22.5pt"><FONT STYLE="text-decoration: none">While the
Trust does not invest in &#8220;stablecoins,&#8221; such as those digital assets that are pegged to the U.S. dollar and holders expect
to receive one U.S. dollar in exchange for the stablecoin, it may nonetheless be exposed to risks that stablecoins pose for the bitcoin
market and other digital asset markets. Stablecoins are digital assets designed to have a stable value over time as compared to typically
volatile digital assets. Although the prices of stablecoins are intended to be stable, their market value may fluctuate. This volatility
has in the past indirectly or apparently impacted the price of bitcoin. Stablecoins are a relatively new phenomenon whereby assets held
in stablecoins has increased significantly over the past few years, such that it is impossible to know all of the risks that they could
pose to participants in the bitcoin market. In addition, some have argued that certain stablecoins are improperly issued without sufficient
backing in a way that, when the stablecoin is used to pay for bitcoin, could cause artificial rather than genuine demand for bitcoin,
which may artificially inflate the price of bitcoin. Some issuers of stablecoins may not be vetted or regulated, and it is not always
possible to discern whether there is sufficient backing for a given stablecoin or other mechanisms to maintain a stable price for the
asset. In addition, it is not possible to eliminate the possibility that some stablecoins are involved in illicit activities. Given the
foundational role that stablecoins play in global digital asset markets, their fundamental liquidity can have a dramatic impact on the
broader digital asset market, including the market for bitcoin. Because a large portion of the digital asset market trading volume occurs
in stablecoins, there is a risk that actual or perceived loss of value or backing could disrupt the digital asset market, including via
disorderly de-pegging or a run on stablecoins could lead to dramatic market volatility in digital assets more broadly. Perceived or actual
volatility in stablecoins, operational issues with stablecoins (for example, technical issues that prevent settlement), concerns about
the sufficiency of any reserves that support stablecoins or potential manipulative activity when unbacked stablecoins are used to pay
for other digital assets (including bitcoin), or regulatory concerns or actions about stablecoin issuers or intermediaries, such as exchanges,
that support stablecoins, could impact both the digital assets market and individuals&#8217; willingness to trade on trading venues that
rely on stablecoins, reduce liquidity in the bitcoin market, and affect the value of bitcoin, and in turn impact an investment in the
Shares.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</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">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Currently, there is relatively small use of bitcoin in the retail
and commercial marketplace in comparison to relatively large use by speculators and those perceiving bitcoin as a store of value, thus
contributing to price volatility that could adversely affect an investment in the Trust. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Certain merchants and major retail and commercial
businesses have only recently begun accepting bitcoin and the Bitcoin network as a means of payment for goods and services. Consumer
use of bitcoin to pay such retail and commercial outlets, however, remains limited. Yet, market speculators and investors seeking to
profit from the short- or long-term holding of bitcoin generate a significant portion of demand for bitcoin, which can contribute to
price volatility, which in turn can make bitcoin less attractive to merchants and commercial parties as a means of payment. A lack of
expansion by bitcoin into retail and commercial markets or a contraction of such use may result in a reduction in the price of bitcoin,
which could adversely affect an investment in the Trust.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 10pt"><B><I>Bitcoin exchanges on which bitcoin
trades are relatively new and, in some cases, unregulated, and, therefore, may be more exposed to fraud</I></B></FONT><B><I>, manipulation
<FONT STYLE="font-size: 10pt">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.</FONT></I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 5.7pt 0pt 2pt; text-indent: 34pt"> <B><I>Risk of Fraud and Market Manipulation</I></B> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 5.7pt 0pt 2pt; text-indent: 34pt"> Over the past several years, a number
of bitcoin exchanges have been closed or faced issues due to fraud, manipulation, failure, security breaches or governmental regulations.
Bitcoin exchanges may be more exposed to the risk of market manipulation than exchanges for more traditional assets. Some Bitcoin exchanges
are not subject to direct regulatory oversight, and some Bitcoin exchanges that are subject to such oversight typically must comply with
minimum net worth, cybersecurity, and anti-money laundering requirements, but are not typically required to protect customers or their
markets to the same extent that regulated securities exchanges or futures exchanges are required to do so. Tools to detect and deter
fraudulent or manipulative trading activities such as market manipulation, front-running of trades, and wash-trading may not be available
to or employed by digital asset exchanges, or may not exist at all. The SEC has identified possible sources of fraud and manipulation
in the bitcoin market generally, including, among others (1) &ldquo;wash trading&rdquo;; (2) persons with a dominant position in bitcoin
manipulating bitcoin pricing; (3) hacking of the Bitcoin network and trading platforms; (4) malicious control of the Bitcoin network;
(5) trading based on material, non-public information (for example, plans of market participants to significantly increase or decrease
their holdings in bitcoin, new sources of demand for bitcoin) or based on the dissemination of false and misleading information; (6)
manipulative activity involving stablecoins; and (7) fraud and manipulation at bitcoin trading platforms. The effect of potential market
manipulation, front-running, wash-trading, and other fraudulent or manipulative trading practices may inflate the volumes actually present
in crypto markets and/or cause distortions in price, which could adversely affect the Trust or Shares. Further, the closure or temporary
shutdown of bitcoin exchanges due to fraud, manipulation business failure, hackers or malware, or government-mandated regulation may
reduce confidence in the Bitcoin network and can slow down the mass adoption of bitcoin. Further, such bitcoin exchange failures or that
of any other major component of the overall bitcoin ecosystem can have an adverse effect on bitcoin markets and the price of bitcoin
and could therefore have a negative impact on the performance of the Trust. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 5.7pt 0pt 0"> &nbsp; </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 5.7pt 0pt 0; text-indent: 0.5in"> <B><I>Price Volatility</I></B> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 5.7pt 0pt 0; text-indent: 0.5in"> Many bitcoin exchanges lack certain
safeguards established by more traditional exchanges to enhance the stability of trading on the exchange, such as measures designed to
prevent sudden drops in value of items traded on the exchange (i.e., &ldquo;flash crashes&rdquo;). As a result, the prices of cryptocurrencies,
including bitcoin, on exchanges may be subject to larger and more frequent sudden declines than assets traded on more traditional exchanges. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Sales of new bitcoin may cause the price of bitcoin to decline,
which could negatively affect an investment in the Trust. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Newly created bitcoin (&#8220;newly mined bitcoin&#8221;)
are generated through a process referred to as &#8220;mining.&#8221; If entities engaged in bitcoin mining choose not to hold the newly
mined bitcoin, and, instead, make them available for sale, there can be downward pressure on the price of bitcoin. A bitcoin mining operation
may be more likely to sell a higher percentage of its newly created bitcoin, and more rapidly so, if it is operating at a low profit
margin, 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">&#160;</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">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Digital asset networks face significant scaling challenges and
efforts to increase the volume of transactions may not be successful. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><FONT STYLE="font-size: 10pt">Many digital asset
networks face significant scaling challenges due to the fact that public blockchains generally face a tradeoff between security and scalability.
One means through which public blockchains achieve security is decentralization, meaning that no intermediary is responsible for securing
and maintaining these systems. For example, a greater degree of decentralization generally means a given digital asset network is less
susceptible to manipulation or capture. Achieving decentralization may mean that every single node on a given digital asset network is
responsible for securing the system by processing every transaction and maintaining a copy of the entire state of the network. However,
this may involve tradeoffs from an efficiency perspective, impose constraints on throughput</FONT> or have other consequences (see the
next risk factor regarding the Bitcoin network&#8217;s decentralized governance structure).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">In an effort to increase the volume of transactions
that can be processed on a given digital asset network, many digital assets are being upgraded with various features to increase the
speed and throughput of digital asset transactions. In August 2017, the Bitcoin network was upgraded with a technical feature known as
&#8220;Segregated Witness&#8221; with the promise of increasing the number of transactions per second that can be handled on-chain and
enabling so-called second layer solutions, such as the Lightning Network or payment channels, that increase transaction throughput by
processing certain transactions outside the main Bitcoin Blockchain. However, this upgrade may fail to achieve the expected benefits
or widespread adoption.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><FONT STYLE="font-size: 10pt">If increases in
throughput on the Bitcoin network lag behind growth in usage of bitcoin, average fees and settlement times may increase considerably.
For example, the Bitcoin network has been, at times, </FONT>subject to congestion<FONT STYLE="font-size: 10pt">, which has led to increased
transaction fees. Increased fees and decreased settlement speeds could preclude certain uses for bitcoin (e.g., micropayments), and could
reduce demand for, and the price of, bitcoin, which could adversely impact the value of the Shares. </FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Many developers are actively researching and
testing scalability solutions for public blockchains that do not necessarily result in lower levels of security or decentralization.
However, there is no guarantee that any of the mechanisms in place or being explored for increasing the scale of settlement of the Bitcoin
network transactions will be effective, or how long these mechanisms will take to become effective, which could adversely impact the
value of the Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0; margin-bottom: 0pt">The Bitcoin network&#8217;s
decentralized governance structure may negatively affect its ability to grow and respond to <FONT STYLE="font-style: normal">challenges.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&#160;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><FONT STYLE="text-decoration: none">The governance
of decentralized networks, such as the Bitcoin network, is by voluntary consensus and open competition. In other words, the Bitcoin network
has no central decision-making body or clear manner in which participants can come to an agreement other than through voluntary, widespread
consensus. As a result, a lack of widespread consensus in the governance of the Bitcoin network may adversely affect the network&#8217;s
utility and ability to adapt and face challenges, including technical and scaling challenges. Historically the development of the source
code of the Bitcoin network has been overseen by the core developers. However, the Bitcoin network would cease to operate successfully
without both miners and users, and the core developers cannot formally compel them to adopt the changes to the source code desired by
core developers, or to continue to render services or participate in the Bitcoin network. As a general matter, the governance of the
Bitcoin network generally depends on most of members of the Bitcoin community ultimately reaching some form of voluntary agreement on
significant changes.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="text-decoration: none">&#160;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><FONT STYLE="text-decoration: none">The decentralized
governance of the Bitcoin network may make it difficult to find or implement solutions or marshal sufficient effort to overcome existing
or future problems, especially protracted ones requiring substantial directed effort and resource commitment over a long period of time,
such as scaling challenges. Deeply-held differences of the opinion have led to forks in the past, such as between Bitcoin and Bitcoin
Cash, and could lead to additional forks in the future, with potentially divisive effects. The Bitcoin network&#8217;s failure to overcome
governance challenges could exacerbate problems experienced by the network or cause the network to fail to meet the needs of its users,
and could cause users, miners, and developer talent to abandon the Bitcoin network or to choose competing blockchain protocols, or lead
to a drop in speculative interest, which could cause the value of bitcoin to decline. If the Bitcoin community is unable to reach consensus
in the future, it could have adverse consequences for the Bitcoin network or lead to a fork, which could affect the value of bitcoin.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</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">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>New competing digital assets may pose a challenge to bitcoin&#8217;s
current market position, resulting in a reduction in demand for bitcoin, which could have a negative impact on the price of bitcoin and
may have a negative impact on the performance of the Trust. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><FONT STYLE="font-size: 10pt">The Bitcoin network
and bitcoin, as an asset, hold a &#8220;first-to-market&#8221; advantage over other digital assets. This first-to-market advantage has
</FONT>contributed to <FONT STYLE="font-size: 10pt">the Bitcoin network evolving into the most well-developed network of any digital
asset. The Bitcoin network enjoys the largest user base and has more mining power in use to secure the Bitcoin Blockchain than any other
digital asset. Having a large mining network </FONT>could provide <FONT STYLE="font-size: 10pt">users confidence regarding the security
and long-term stability of the Bitcoin network. This in turn </FONT>could create <FONT STYLE="font-size: 10pt">a domino effect that inures
to the benefit of the Bitcoin network &#8211; namely, the advantage of more users and miners makes a digital asset more secure, which
potentially makes it more attractive to new users and miners, resulting in a network effect that potentially strengthens the first-to-market
advantage. However, despite the first-mover advantage of the Bitcoin network over other digital assets, it is possible that real or perceived
shortcomings in the Bitcoin network, or technological, regulatory or other developments, could result in a decline in popularity and
acceptance of bitcoin and the Bitcoin network, and other digital currencies and trading systems could become more widely accepted and
used than the Bitcoin network. </FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">In addition, leading technologies and/or payments
companies, from <FONT STYLE="font-size: 10pt">Facebook </FONT>to Paypal, <FONT STYLE="font-size: 10pt">have </FONT>explored plans, enacted
plans and/or introduced various <FONT STYLE="font-size: 10pt">digital </FONT>asset <FONT STYLE="font-size: 10pt">and </FONT>electronic
payments initiatives. Such initiatives <FONT STYLE="font-size: 10pt">could adversely affect the value of bitcoin and digital assets</FONT>,
in particular where technical limitations or perceived disadvantages of bitcoin or the Bitcoin network are compared to such other initiatives.
These could include operational <FONT STYLE="font-size: 10pt">cost </FONT>exceeding <FONT STYLE="font-size: 10pt">the award for solving
blocks or transaction fees</FONT>, and increased <FONT STYLE="font-size: 10pt">transaction fees </FONT>which <FONT STYLE="font-size: 10pt">may
adversely affect the usage of the Bitcoin network. </FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Competition from the emergence or growth of alternative
digital assets and smart contracts platforms, such as Ethereum, Solana, Avalanche, Polkadot, or Cardano, could have a negative impact
on the demand for, and price of, bitcoin and thereby adversely affect the value of the Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>The Trust and the Sponsor face competition from competing products</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 2pt">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"> The Trust and the Sponsor face competition
with respect to the creation of competing exchange-traded bitcoin products. If the SEC were to approve many or all of the currently pending
applications for such exchange-traded bitcoin products, many or all of such products, including the Trust, could fail to acquire substantial
assets, initially or at all. The Trust&rsquo;s competitors may also charge a substantially lower fee than the Sponsor&rsquo;s Fee in
order to achieve initial market acceptance and scale. Accordingly, the Sponsor&rsquo;s competitors may commercialize a competing product
more rapidly or effectively than the Sponsor is able to, which could adversely affect the Sponsor&rsquo;s competitive position and the
likelihood that the Trust will achieve initial market acceptance, and could have a detrimental effect on the scale and sustainability
of the Trust. If the Trust fails to achieve sufficient scale, approximately $200 million in assets or more, due to competition, limited
interest or otherwise, the Sponsor may have difficulty in covering the costs associated with launching and maintaining the Trust and
such shortfalls could impact the Sponsor&rsquo;s ability to properly invest in robust ongoing operations and controls of the Trust to
minimize the risk of operating events, errors, or other forms of losses to the Shareholders. In addition, the Trust may also fail to
attract adequate liquidity in the secondary market due to such competition, resulting in a sub-standard number of Authorized Participants
willing to make a market in the Shares, which in turn could result in a significant premium or discount in the Shares for extended periods
and the Trust&rsquo;s failure to reflect the performance of the price of bitcoin. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 10pt"><B><I>Competition from central bank
digital currencies (&#8220;CBDCs&#8221;) </I></B></FONT><B><I>and other initiatives <FONT STYLE="font-size: 10pt">could adversely affect
the value of bitcoin and other digital assets. </FONT></I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><FONT STYLE="font-size: 10pt">Central banks </FONT>in
certain countries <FONT STYLE="font-size: 10pt">have introduced digital forms of legal tender (CBDCs). </FONT>Research suggests over
100 countries are exploring CBDCs<FONT STYLE="font-size: 10pt">. Whether or not they incorporate blockchain or similar technology, CBDCs,
as legal tender in the issuing jurisdiction, could have an advantage in competing with, or replace, bitcoin and other cryptocurrencies
as a medium of exchange or store of value. </FONT>Central banks and other governmental entities have also announced cooperative initiatives
and consortia with private sector entities, with the goal of leveraging blockchain and other technology to reduce friction in cross-border
and interbank payments and settlement, and commercial banks and other financial institutions have also recently announced a number of
initiatives of their own to incorporate new technologies, including blockchain and similar technologies, into their payments and settlement
activities, which could compete with, or reduce the demand for, bitcoin. <FONT STYLE="font-size: 10pt">As a result, the value of bitcoin
could decrease, which could adversely affect an investment in the Trust. </FONT></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">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 10pt"><B><I>The scheduled </I></B></FONT><B><I>mining
<FONT STYLE="font-size: 10pt">of </FONT>additional <FONT STYLE="font-size: 10pt">bitcoin and their subsequent sale may cause the price
of bitcoin to decline, which could negatively affect an investment in the Trust. </FONT></I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><FONT STYLE="font-size: 10pt">The Bitcoin network
is designed to periodically reduce the fixed award given to miners for solving new blocks (the &#8220;block reward&#8221;), most recently
in May 2020, when the block reward reduced from 12.5 to 6.25 bitcoin. </FONT> The next such event, as referred to as a &#8220;halving&#8221;
event, is anticipated to occur at some point between March 2024 to May 2024. <FONT STYLE="font-size: 10pt">As the block reward continues
to decrease over time, the mining incentive structure may transition to a higher reliance on transaction confirmation fees in order to
incentivize miners to continue to dedicate processing power to the blockchain. If transaction confirmation fees become too high, the
marketplace may be reluctant to use bitcoin. Increased transaction fees may motivate market participants, such as merchants or commercial
institutions, to switch from bitcoin to another digital asset or back to fiat currency as their preferred medium of exchange. Decreased
demand for bitcoin may adversely affect its price, which may adversely affect an investment in the Trust. </FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><FONT STYLE="text-decoration: none">To the extent
that any miners cease to record transactions that do not include the payment of a transaction fee in mined blocks or do not record a
transaction because the transaction fee is too low, such transactions will not be recorded on the Bitcoin Blockchain until a block is
mined by a miner who does not require the payment of transaction fees or is willing to accept a lower fee. Also, some miners have financed
the acquisition of mining equipment or the development or construction of infrastructure to perform mining activities by borrowing. If
such miners experience financial difficulties and are unable to pay back their borrowings, their mining capacity could become unavailable
to the Bitcoin network, which could conceivably result in disruptions in recording transactions on the Bitcoin network. Any widespread
delays or disruptions in the recording of transactions could result in a loss of confidence in the Bitcoin network and disrupt transactions
with Authorized Participants, bitcoin more broadly or otherwise adversely impact the value of Shares. </FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Ultimately, if the awards of new bitcoin for
solving blocks declines and transaction fees for recording transactions are not sufficiently high to exceed the costs of mining, miners
may operate at a loss or cease operations. If the award does not exceed the costs of mining in the long-term, miners may have to cease
operations entirely. If miners cease their operations, this could have a negative impact on the Bitcoin network and could adversely affect
the value of the bitcoin held by the Trust.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Miners could act in collusion to raise transaction fees, which
may adversely affect the usage of the Bitcoin network. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><FONT STYLE="font-size: 10pt">Bitcoin miners
collect fees for each transaction they confirm. Miners validate unconfirmed transactions by adding the previously unconfirmed transactions
to new blocks in the blockchain. Miners are not forced to confirm any specific transaction, but they are economically incentivized to
confirm valid transactions as a means of collecting fees. To the extent that any miners cease to record transactions in solved blocks,
such transactions will not be recorded on the Bitcoin Blockchain until a block is solved by a miner who does not require the payment
of transaction fees. Miners have historically accepted relatively low transaction confirmation fees. If miners collude in an anticompetitive
manner to reject low transaction fees, then bitcoin users could be forced to pay higher fees, thus reducing the attractiveness of the
bitcoin network, or to wait longer times for their transactions to be validated by a miner who does not require the payment of a transaction
fee. Bitcoin mining occurs globally and it may be difficult for authorities to apply antitrust regulations </FONT>or similar doctrines
<FONT STYLE="font-size: 10pt">across multiple jurisdictions. Any collusion among miners may adversely impact an investment in the Trust
or the ability of the Trust to operate. </FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>As technology advances, miners may be unable to acquire the
digital asset mining hardware necessary to develop and launch their operations. A decline in the bitcoin mining population could adversely
affect the Bitcoin network and an investment in the Trust. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Due to the increasing demand for digital asset
mining hardware, miners may be unable to acquire the proper mining equipment or suitable amount of equipment necessary to continue their
operations or develop and launch their operations. In addition, because successful mining of a digital asset that uses &#8220;proof of
work&#8221; validation requires maintaining or exceeding a certain level of computing power relative to other validators, miners will
need to upgrade their mining hardware periodically to keep up with their competition. The development of supercomputers with disproportionate
computing power may threaten the integrity of the bitcoin market by concentrating mining power, which would make it unprofitable for
other miners to mine. The expense of purchasing or upgrading new equipment may be substantial and diminish returns to miners dramatically.
A decline in miners may result in a decrease in the value of bitcoin and the value of the Trust.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>If profit margins of bitcoin mining operations are not high,
miners may elect to immediately sell bitcoin earned by mining, resulting in a reduction in the price of bitcoin that could adversely
affect an investment in the Trust. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><FONT STYLE="font-size: 10pt">Bitcoin network
mining operations have rapidly evolved over the past several years from individual users mining with computer processors, graphics processing
units and first-generation ASIC (application-specific integrated circuit) machines. New processing power is predominantly added to the
Bitcoin network currently by &#8220;professionalized&#8221; mining operations. Such operations may use proprietary hardware or sophisticated
ASIC machines acquired from ASIC manufacturers. Significant capital is necessary for mining operations to acquire this hardware, lease
operating space (often in data centers or warehousing facilities), afford electricity costs and employ technicians to operate the mining
farms. As a result, professionalized mining operations are of a greater scale than prior Bitcoin network validators and have more defined,
regular expenses and liabilities. In addition, mining operations may choose to immediately sell bitcoin earned from their operations
into the global bitcoin market. In past years, individual miners are believed to have been more likely to hold newly mined bitcoin for
more extended periods. The immediate selling of newly mined bitcoin </FONT>c<FONT STYLE="font-size: 10pt">ould increase the supply of
bitcoin on the bitcoin market, creating downward pressure on the price of bitcoin. </FONT></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; text-indent: 24.5pt"><FONT STYLE="font-size: 10pt">A professional
mining operation operating at a low profit margin may be more likely to sell a higher percentage of its newly mined bitcoin rapidly,
and it may partially or completely cease operations if its profit margin is negative. </FONT>The reduction in mining rewards of bitcoin,
including block reward halving events, which are events that occur after a specific period of time that reduce the block reward earned
by miners, could be inadequate to incentivize miners to continue to perform mining activities. <FONT STYLE="font-size: 10pt">In a low
profit margin environment, a higher percentage of the new bitcoin mined each day will be sold into the bitcoin market more rapidly, thereby
reducing bitcoin prices. The network effect of reduced profit margins resulting in greater sales of newly mined bitcoin could result
in a reduction in the price of bitcoin that could adversely affect an investment in the Trust. </FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Congestion or delay in the Bitcoin network may delay purchases
or sales of bitcoin by the Trust. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><FONT STYLE="font-size: 10pt">The size of each
block on the Bitcoin Blockchain is currently limited, and is significantly below the level that centralized systems can provide </FONT>with
regard to volume of transaction processing. <FONT STYLE="font-size: 10pt">Increased transaction volume</FONT> on the Bitcoin network
<FONT STYLE="font-size: 10pt">could result in delays in the recording of transactions due to congestion in the Bitcoin network. Moreover,
unforeseen system failures, disruptions in operations, or poor connectivity may also result in delays in the recording of transactions
on the Bitcoin network. Any delay in the Bitcoin network could affect the Trust&#8217;s ability to buy or sell bitcoin at an advantageous
price, or may create the opportunity for a bad actor to double spend bitcoin, resulting in decreased confidence in the Bitcoin network.
Over the longer term, delays in confirming transactions could reduce the attractiveness to merchants and other commercial parties as
a means of payment. As a result, the Bitcoin network and the value of the Trust would be adversely affected. </FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B><I>Bitcoin mining is energy intensive and
concerns about climate change may raise the economic and societal costs of bitcoin mining. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><FONT STYLE="font-size: 10pt">Bitcoin mining
involves advanced computers that consume significant energy</FONT>, which may have a negative environmental impact and give rise to public
opinion against allowing, or government regulations restricting, the use of electricity for mining operations. <FONT STYLE="font-size: 10pt">Researchers
at the University of Cambridge estimate that bitcoin mining consumes 121.36 terawatt-hours per year, which equates to approximately the
annual energy consumption of Argentina. The energy intensive nature of bitcoin mining is </FONT>in some circumstances potentially <FONT STYLE="font-size: 10pt">mitigated
by the fact that many miners</FONT> could <FONT STYLE="font-size: 10pt">elect to operate geographically near renewable energy sources
where energy might be otherwise wasted. For example, miners are</FONT> understood to be <FONT STYLE="font-size: 10pt">located in China
near hydroelectric dams which produce more energy than local power grids can accommodate. </FONT>However, miners may be forced to cease
operations during an electricity shortage or power outage, or if electricity prices increase where the mining activities are performed.
This could adversely the price of bitcoin, or the operation of the Bitcoin network, and accordingly adversely affect the value of the
Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.85pt">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><FONT STYLE="text-decoration: none">In addition,
due to concerns around energy consumption and the impact on public utility companies, various states and cities have implemented, or
are considering implementing, moratoriums on mining activity in their jurisdictions. A significant reduction in mining activity as a
result of such actions could adversely affect the security of the Bitcoin network by making it easier for a malicious actor or botnet
to manipulate the relevant blockchain. If regulators or public utilities take action that restricts or otherwise impacts mining activities,
such actions could result in decreased security or activity of the Bitcoin network, consequently adversely impacting the value of the
Shares.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Risk Factors Associated with the Bitcoin Exchange Market </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><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">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The Shares are designed to mirror as closely
as possible the performance of the price of bitcoin, as determined by the Reference Rate, and the value of the Shares relates directly
to the value of the bitcoin held by the Trust, less the Trust&#8217;s liabilities (including estimated accrued but unpaid fees and expenses).
The Reference Rate is derived from the transaction prices on electronic market places where exchange participants may first use fiat
currency to trade, buy and sell bitcoin based on bid-ask trading. The Reference Rate uses U.S. Dollar-denominated trading data from bitcoin
exchanges to determine its value. Whether a bitcoin exchange is considered eligible to be included in the Reference Rate&#8217;s calculation
depends on considerations such as depth of liquidity, compliance with applicable legal and regulatory requirements, data availability,
domicile and acceptance of U.S.&#160;Dollar deposits. The price of bitcoin has fluctuated widely over the past several years and may
continue to experience significant price fluctuations. Several factors may affect the Reference Rate, including, but not limited to:</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">&nbsp;</P>

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<TD STYLE="width: 24.5pt"></TD><TD STYLE="width: 24.1pt"> &bull; </TD><TD> Total bitcoin in existence was approximately 19,500,000 as
                                            of December 1, 2023; </TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>
<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
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                                            of retail merchants&#8217; and commercial businesses&#8217; acceptance of bitcoin as payment
                                            for goods and services, the security of online Bitcoin exchanges and digital wallets that
                                            hold bitcoin, the perception that the use and holding of bitcoin is safe and secure, the
                                            lack of regulatory restrictions on their use and the reputation of bitcoin for illicit use;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 24.5pt"></TD><TD STYLE="width: 24.1pt">&#8226;</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="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 24.5pt"></TD><TD STYLE="width: 24.1pt">&#8226;</TD><TD>Investors&#8217; expectations with respect to the rate
                                            of inflation of fiat currencies;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 24.5pt"></TD><TD STYLE="width: 24.1pt">&#8226;</TD><TD>Investors&#8217; expectations with respect to the rate
                                            of deflation of bitcoin;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 24.5pt"></TD><TD STYLE="width: 24.1pt">&#8226;</TD><TD>Interest rates;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 24.5pt"></TD><TD STYLE="width: 24.1pt">&#8226;</TD><TD>Currency exchange rates, including the rates at which
                                            bitcoin may be exchanged for fiat currencies;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 24.5pt"></TD><TD STYLE="width: 24.1pt">&#8226;</TD><TD>Fiat currency withdrawal and deposit policies of bitcoin
                                            exchanges and liquidity of such Bitcoin exchanges;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 24.5pt"></TD><TD STYLE="width: 24.1pt">&#8226;</TD><TD>Interruptions in service from or failures of major bitcoin
                                            exchanges;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 24.5pt"></TD><TD STYLE="width: 24.1pt">&#8226;</TD><TD>Cyber theft of bitcoin from online bitcoin wallet providers,
                                            or news of such theft from such providers, or from individuals&#8217; bitcoin wallets;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 24.5pt"></TD><TD STYLE="width: 24.1pt">&#8226;</TD><TD>Investment and trading activities of large investors,
                                            including private and registered funds, that may directly or indirectly invest in bitcoin;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

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                                            currency devaluations and revaluations;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
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                                            bitcoin as a form of payment or the purchase of bitcoin on the bitcoin market;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

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<TD STYLE="width: 24.5pt"></TD><TD STYLE="width: 24.1pt">&#8226;</TD><TD>The availability and popularity of businesses that provide
                                            bitcoin-related services;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 24.5pt"></TD><TD STYLE="width: 24.1pt">&#8226;</TD><TD>The maintenance and development of the open-source software
                                            protocol of the Bitcoin network;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
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                                            or payments services;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 24.5pt"></TD><TD STYLE="width: 24.1pt">&#8226;</TD><TD>Global or regional political, economic or financial events
                                            and situations;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 24.5pt"></TD><TD STYLE="width: 24.1pt">&#8226;</TD><TD>Expectations among Bitcoin economy participants that
                                            the value of bitcoin will soon change; and</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 24.5pt"></TD><TD STYLE="width: 24.1pt">&#8226;</TD><TD>Fees associated with processing a bitcoin transaction.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">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>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">In addition, investors should be aware that there
is no assurance that bitcoin 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 bitcoin declines,
the Sponsor expects the value of an investment in the Shares to decline proportionately.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><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">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><FONT STYLE="font-size: 10pt">Bitcoin exchanges
are relatively new and, in some cases, </FONT>not subject to direct regulatory oversight. <FONT STYLE="font-size: 10pt">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. Bitcoin exchanges do not
appear to be subject to, or may not comply with, regulation in a similar manner as other regulated trading platforms, such U.S. securities
exchanges. As a result, the marketplace may lose confidence in bitcoin exchanges, including prominent bitcoin exchanges that handle a
significant volume of bitcoin trading. </FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Many digital asset exchanges are unlicensed,
unregulated, operate without extensive supervision by governmental authorities, and do not provide the public with significant information
regarding their ownership structure, management team, corporate practices, cybersecurity, and regulatory compliance. In particular, those
located outside the United States may be subject to significantly less stringent regulatory and compliance requirements in their local
jurisdictions. As a result, trading activity on or reported by these digital asset exchanges is generally significantly less regulated
than trading in regulated U.S. securities and commodities markets, and may reflect behavior that would be prohibited in regulated U.S.
trading venues. For example, in 2019 there were reports claiming that 80.<FONT STYLE="font-size: 10pt">95% of Bitcoin trading volume
on bitcoin exchanges was false or non-economic in nature, with specific focus on unregulated bitcoin 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. </FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><FONT STYLE="font-size: 10pt">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 </FONT>and market <FONT STYLE="font-size: 10pt">as
a whole. In particular, in the two weeks that followed the February&#160;7, 2014</FONT>, <FONT STYLE="font-size: 10pt">halt of bitcoin
withdrawals from Mt. Gox, the value of one bitcoin fell on other bitcoin exchanges from around $795 on February&#160;6, 2014 to $578
on February&#160;20, 2014. Additionally, in January 2015, Bitstamp announced that approximately 19,000 bitcoin had been stolen from its
operational or &#8220;hot&#8221; wallets. Further, in August 2016, it was reported that almost 120,000 bitcoins worth around $78&#160;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&#160;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&#8217;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&#8217;s pending
bankruptcy proceedings. In addition, in January 2018, the Japanese digital asset exchange, Coincheck, was hacked, resulting in losses
of approximately $535&#160;million, and in June 2020 the platform suffered another data breach that resulted in the unauthorized access
to its domain registration service, forcing the Japanese exchange to halt its crypto remittance service. In February 2018, the Italian
digital asset exchange, Bitgrail, was hacked, resulting in approximately $170&#160;million in losses. In May 2019, one of the world&#8217;s
largest bitcoin exchanges, Binance, was hacked, resulting in losses of approximately $40&#160;million. More recently, the Spanish cryptocurrency
exchange, 2gether, disclosed in August 2020 that a cyberattack against its platform resulted in $1.45&#160;million in crypto assets&#8212;about
one-third of the firm&#8217;s holdings at that time&#8212;being stolen. </FONT>In November 2022, FTX Trading Ltd. (&#8220;FTX&#8221;),
one of the largest digital asset exchanges by volume at the time, halted customer withdrawals amid rumors of the company&#8217;s liquidity
issues and likely insolvency, which were subsequently corroborated by its CEO. Shortly thereafter, FTX&#8217;s CEO resigned and FTX and
many of its affiliates filed for bankruptcy in the United States, while other affiliates have entered insolvency, liquidation, or similar
proceedings around the globe, following which the U.S. Department of Justice brought criminal fraud and other charges, and the SEC and
CFTC brought civil securities and commodities fraud charges against certain of FTX&#8217;s and its affiliates&#8217; senior executives,
including its former CEO (and the CEO was subsequently convicted by a jury of fraud). Around the same time, there were reports that approximately
$300-600 million of digital assets were removed from FTX and the full facts remain unknown, including whether such removal was the result
of a hack, theft, insider activity, or other improper behavior.</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">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">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 Reference Rate may result in a loss of confidence in the Trust&#8217;s
ability to determine its bitcoin holdings on a daily basis, although the Benchmark Administrator has documented procedures in place in
its published methodology to mitigate against these situations and continue to calculate and publish the Reference Rate. These potential
consequences of such a bitcoin exchange&#8217;s failure could adversely affect the value of the Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The Trust Agreement places no limit on the number
of bitcoin 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 bitcoin in existence at any point in time. The Bitcoin network&#8217;s mathematical protocols
under which bitcoin is created or &#8220;mined&#8221; permit the creation of a limited, predetermined number of bitcoin not to exceed
21&#160;million. Furthermore, the rate of creation or issuance of bitcoin cannot be increased ahead of the protocol&#8217;s schedule.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">If the number of bitcoin 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 bitcoin in a manner unrelated to other factors affecting the global market for bitcoin. Such an impact could
affect the Reference Rate, which would directly affect the price at which Shares are traded on the Exchange 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">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>The Shares may trade at a discount or premium in the trading
price relative to the Trust&#8217;s bitcoin holdings per Share as a result of non-concurrent trading hours between the Exchange and the
bitcoin exchange market. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The value of a Share may be influenced by non-concurrent
trading hours between the Exchange and various bitcoin exchanges, including those that represent components of the Reference Rate. While
the Exchange 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 distributed denial-of-service attacks and other reasons. As a result, during periods when the Exchange 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&#8217;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: 24.5pt">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Investors in Shares in the secondary market may be subject to
brokerage commissions, over which the Funds have no control. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Investors buying or selling Shares in the secondary
market will pay brokerage commissions or other charges imposed by brokers, as determined by the applicable broker. Brokerage commissions
are often a fixed amount and may be a significant proportional cost for investors seeking to buy or sell relatively small amounts of
Shares. In addition, secondary market investors will also incur the cost of the difference between the price that an investor is willing
to buy shares (the &#8220;bid&#8221; price) and the price at which an investor is willing to sell Shares (the &#8220;ask&#8221; price).
This difference in bid and ask prices is often referred to as the &#8220;spread&#8221; or &#8220;bid/ask spread.&#8221; The bid/ask spread
varies over time for Shares based on trading volume and market liquidity of the Shares and the bitcoin comprising the Trust&#8217;s portfolio,
and is generally lower if Shares have more trading volume and market liquidity and higher if Shares have little trading volume and market
liquidity. Further, a relatively small investor base in the Trust, asset swings in the Trust and/or increased market volatility may cause
bid/ask spreads to increase. Shares, similar to shares of other issuers listed on a stock exchange, may be sold short and are therefore
subject to the risk of increased volatility associated with short selling. Due to the costs of buying or selling Shares, including bid/ask
spreads, frequent trading of Shares may significantly reduce investment results and an investment in the Shares may not be advisable
for investors who anticipate regularly making small investments.</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">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>If bitcoin prices on the bitcoin exchange market move negatively
during hours when the Exchange is closed, trading prices on the Exchange may &#8220;gap&#8221; down at market open. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The value of a Share may be influenced by non-concurrent
trading hours between the Exchange and various bitcoin exchanges, including those that represent components of the Reference Rate. While
the Exchange 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 the Exchange 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 bitcoin as measured by the Reference Rate 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 bitcoin
as measured by the Reference Rate, moves significantly in a negative direction after the close of the Exchange, the trading price of
the Shares may &#8220;gap&#8221; down to the full extent of such negative price shift when the Exchange reopens. To the extent that the
price of bitcoin on the Exchange Market drops significantly during hours the Exchange is closed, investors may not be able to sell their
Shares until after the &#8220;gap&#8221; 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">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>A possible &#8220;short squeeze&#8221; 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">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Investors may purchase Shares to hedge existing
bitcoin or other digital currencies, commodity or currency exposure or to speculate on the price of bitcoin. Speculation on the price
of bitcoin may involve long and short exposures. To the extent that aggregate short exposure exceeds the number of Shares available for
purchase (for example, in the event that large redemption requests by Authorized Participants dramatically affect Share liquidity), investors
with short exposure may have to pay a premium to repurchase Shares for delivery to Share lenders. Those repurchases may, in turn, dramatically
increase the price of the Shares until additional Shares are created through the creation process. This is often referred to as a &#8220;short
squeeze.&#8221; A short squeeze could lead to volatile price movements in the Shares that are not directly correlated to the price of
bitcoin.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Purchasing activity in the bitcoin exchange market associated
with Basket creations or selling activity following Basket redemptions may affect the Reference Rate 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">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Purchasing activity associated with acquiring
bitcoin required for deposit with the Trust in connection with the creation of Baskets may increase the market price of bitcoin on the
bitcoin exchange market, which will result in higher prices for the Shares. Increases in the market price of bitcoin 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 bitcoin that may result from increased purchasing activity of bitcoin connected with the issuance of Baskets. Consequently,
the market price of bitcoin may decline immediately after Baskets are created.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Selling activity associated with sales of bitcoin
withdrawn from the Trust in connection with the redemption of Baskets may decrease the market price of bitcoin on the bitcoin exchange
market, which will result in lower prices for the Shares. Decreases in the market price of bitcoin may also occur as a result of the
selling activity of other market participants. If the Reference Rate declines, the trading price of the Shares will generally also decline.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>An investment in the Shares may be adversely affected by competition
from other methods of investing in bitcoin. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The Trust competes with direct investments in
bitcoin and other potential financial vehicles, possibly including securities backed by or linked to bitcoin and digital currency financial
vehicles similar to the Trust. Market and financial conditions, and other conditions beyond the Sponsor&#8217;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 the Shares and
reduce the liquidity of the Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>The Reference Rate may be affected by the sale of other digital
currency financial vehicles that invest in and track the price of bitcoin. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">To the extent digital currency financial vehicles
other than the Trust tracking the price of bitcoin are formed and represent a significant proportion of the demand for bitcoin, large
redemptions of the securities of these digital currency financial vehicles, or private funds holding bitcoin, could negatively affect
the Reference Rate, the Trust&#8217;s bitcoin holdings and the price of the Shares.</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">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>The impact of geopolitical or economic events on the supply
and demand for bitcoin is uncertain, but could motivate large-scale sales of bitcoin, which could result in a reduction in the Reference
Rate and adversely affect an investment in the Shares. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">As an alternative to fiat currencies that are
backed by central governments, digital assets such as bitcoin, 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 bitcoin either globally or locally. Large-scale sales of bitcoin would result in a reduction in the Reference Rate and could
adversely affect an investment in the Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 10pt"><B><I>Demand for bitcoin is driven,
in part, by its </I></B></FONT><B><I>perceived <FONT STYLE="font-size: 10pt">status as </FONT>a <FONT STYLE="font-size: 10pt">prominent
and secure digital asset. It is possible that a digital asset other than bitcoin 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 bitcoin, which could have a negative impact on
the price of bitcoin and adversely affect an investment in the Shares. </FONT></I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Bitcoin was the first digital asset to gain global
adoption and critical mass, and as a result, it has a &#8220;first to market&#8221; advantage over other digital assets. [As of [&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;],
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[&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;],
there were over [8,000] alternative digital assets tracked by [&#160;&#160;&#160;&#160;], having a total market-capitalization of approximately
[$&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;] trillion (including the approximately $ [&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;]
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">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">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&#8217;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 investment vehicles holding bitcoin,
could negatively affect the Reference Rate, 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">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Risk Factors Associated with the Reference Rate </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>The Reference Rate 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: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"> The Reference Rate has a limited history,
having first been introduced on February 28, 2022. The Reference Rate is also based on the BRR&rsquo;s methodology, which was introduced
November 14, 2016.The value of both the Reference Rate and the BRR is the an average composite reference rate calculated using volume-weighted
trading price data from certain bitcoin exchanges (&ldquo;Constituent Exchanges&rdquo;). 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 (the &ldquo;Oversight Committee&rdquo;). This CF Constituent Exchange Criteria
and the composition of the Constituent Exchanges may change over time, and the current selection of Constituent Exchanges has only been
in place since May 2022. Neither the Benchmark Administrator nor the Oversight Committee are obligated to take the needs of the Trust,
the Shareholders, or anyone else into consideration in connection with such changes. There is no guarantee that the methodology currently
used in calculating the Reference Rate will appropriately track the price of bitcoin in the future. </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: 24.5pt"> For more information on the Oversight Committee,
the Constituent Exchanges, and the CF Constituent Exchange Criteria in the Reference Rate, see &ldquo;The Trust and Bitcoin Prices &mdash;
The Reference Rate&rdquo;. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>The value of bitcoin as reflected by the Reference Rate 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: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">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 Reference Rate 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 Reference Rate 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 Reference Rate, which could adversely affect an investment in the Shares.</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">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>The Benchmark Administrator could experience system failures
or errors. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">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 Reference
Rate may be delayed and trading in the Shares may be suspended for a period of time. Errors in Reference Rate data, the Reference Rate
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 Reference Rate,
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 Reference Rate is the reference price for calculating the Trust&#8217;s NAV. Consequently, losses or costs associated with
the Reference Rate&#8217;s errors or other risks described above will generally be borne by the Trust and the Shareholders and neither
the Sponsor nor its affiliates or agents make any representations or warranties regarding the foregoing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><FONT STYLE="text-decoration: none">If the Reference
Rate is not available, the Trust&#8217;s holdings may be fair valued in accordance with the policy approved by the Sponsor. To the extent
the valuation determined in accordance with the policy approved by the Sponsor differs materially from the actual market price of bitcoin,
the price of the Shares may no longer track, whether temporarily or over time, the global market price of bitcoin, which could adversely
affect an investment in the Trust by reducing investors&#8217; confidence in the Shares&#8217; ability to track the global market price
of bitcoins, which could adversely affect the value of the Shares.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&#160;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0; margin-bottom: 0pt"><FONT STYLE="text-decoration: none">The
Reference Rate could fail to track the global bitcoin price</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 4.9pt 0pt 0; text-indent: 22.5pt">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><FONT STYLE="text-decoration: none">Although
the Reference Rate is intended to provide a reasonable measure for the market price of bitcoin, third parties may be able to purchase
and sell bitcoin on public or private markets not included among the bitcoin exchanges used in calculating the Reference Rate, and such
transactions may take place at prices materially higher or lower than the Reference Rate. Moreover, there may be variances in the prices
of bitcoin on the various bitcoin exchanges used in calculating the Reference Rate and the price of bitcoins on the bitcoin exchanges
could be materially higher or lower than the Reference Rate price. To the extent the Reference Rate price differs materially from the
actual prices available on a bitcoin exchange used to calculate it, or the global market price of bitcoin, the price of the Shares may
no longer track, whether temporarily or over time, the global market price of bitcoin, which could adversely affect an investment in
the Trust by reducing investors&#8217; confidence in the Shares&#8217; ability to track the market price of bitcoin. To the extent such
prices differ from the Reference Rate, investors may lose confidence in the Shares&#8217; ability to track the market price of bitcoin,
which could adversely affect the value of the Shares.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="text-decoration: none">&#160;</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0; margin-bottom: 0pt"><FONT STYLE="text-decoration: none">The
Sponsor can discontinue using the Reference Rate and use a different pricing or valuation methodology instead.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 5.35pt 0pt 2pt; text-align: justify">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"> The Sponsor, in its sole discretion, may select,
remove, change, or replace the pricing or valuation methodology or policies used to value the Trust&rsquo;s assets and determine NAV
and NAV per Share, including the Reference Rate. To the extent such new or revised pricing or valuation methodologies or their pricing
output differ from the Reference Rate, investors may lose confidence in the Shares&rsquo; ability to track the market price of bitcoin,
which could adversely affect the value of the Shares. The Sponsor may make this decision for any reason, including, but not limited to,
a determination that the Reference Rate differs materially from the actual prices available on a bitcoin exchange used to calculate it,
that errors in the Reference Rate have negatively impacted the investment outcome for the Trust and its Shareholders, or that third parties
are able to purchase and sell bitcoin on exchanges at prices that are materially higher or lower than those reflected by the Reference
Rate. The Sponsor is under no obligation to select a different pricing or valuation method under any circumstance. If the Sponsor makes
the decision to materially change the valuation methodology or replace of either the Reference Rate or the Benchmark Administrator, the
Sponsor will notify Shareholders via a posting on the Trust&rsquo;s website or prospectus supplement or through a current report on Form
8-K or in the Trust&rsquo;s annual or quarterly reports. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</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">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Risk Factors Associated with Investing in the Trust </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>As the Sponsor and its management have no meaningful history
of operating an investment vehicle like the Trust within the United States, 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">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The Sponsor has no meaningful history of past
performance in managing investment vehicles like the Trust within the United States. The past performances of the Sponsor&#8217;s affiliate
in other investment vehicles in other jurisdictions, including their experiences with bitcoin and other commodities, are no indication
of the Sponsor&#8217;s ability to manage an investment vehicle such as the Trust within the United States. 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">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>The value of the Shares may be influenced by a variety of factors
unrelated to the value of bitcoin. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The value of the Shares may be influenced by
a variety of factors unrelated to the price of bitcoin that may have an adverse effect on the price of the Shares. These factors include
the following factors:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 24.5pt"></TD><TD STYLE="width: 24.1pt">&#8226;</TD><TD>Unanticipated problems or issues with respect to the
                                            mechanics of the Trust&#8217;s operations and the trading of the Shares may arise, in particular
                                            due to the fact that the mechanisms and procedures governing the creation and offering of
                                            the Shares and storage of bitcoin have been developed specifically for this product;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 24.5pt"></TD><TD STYLE="width: 24.1pt">&#8226;</TD><TD>The Trust could experience difficulties in operating
                                            and maintaining its technical infrastructure, including in connection with expansions or
                                            updates to such infrastructure, which are likely to be complex and could lead to unanticipated
                                            delays, unforeseen expenses and security vulnerabilities;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 24.5pt"></TD><TD STYLE="width: 24.1pt"> <FONT STYLE="font-size: 10pt">&#8226;</FONT> </TD><TD> <FONT STYLE="font-size: 10pt">The
                                            Trust could experience unforeseen issues relating to the performance and effectiveness of
                                            the security procedures used to protect the Trust&#8217;s account with the </FONT>Bitcoin
                                            <FONT STYLE="font-size: 10pt">Custodian, or the security procedures may not protect against
                                            all errors, software flaws or other vulnerabilities in the Trust&#8217;s technical infrastructure,
                                            which could result in theft, loss or damage of its assets; </FONT> </TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 24.5pt"></TD><TD STYLE="width: 24.1pt"> <FONT STYLE="font-size: 10pt">&#8226;</FONT> </TD><TD> <FONT STYLE="font-size: 10pt">Service
                                            providers may fail to perform their obligations or decide to terminate their relationships
                                            with the Trust due to concerns that the introduction of privacy enhancing features to the
                                            Bitcoin network may increase the potential for bitcoin to be used to facilitate crime, exposing
                                            such service providers to potential reputational harm. Any of these factors could affect
                                            the value of the Shares, either directly or indirectly through their effect on the Trust&rsquo;s
                                            assets; or</FONT> </TD></TR></TABLE>

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

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

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<TD STYLE="width: 24.5pt"></TD><TD STYLE="width: 24.1pt"> <FONT STYLE="font-size: 10pt">&#8226;</FONT> </TD><TD> Prime broker
                                            could experience difficulties from business failures, bankruptcies, hacking, fraud, crime,
                                            government investigations, or other negative developments affecting digital asset businesses,
                                            including digital asset exchanges, or banks or other financial institutions and service providers
                                            which provide services to the digital assets industry. </TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>The Shares are a relatively new securities product. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The mechanisms and procedures governing the creation,
redemption and offering of the Shares are recently developed securities products. Consequently, there may be unanticipated problems or
issues with respect to the mechanics of the operations and the trading of the Shares that could have a material adverse effect on an
investment in the Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>The Trust is subject to market risk. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Market risk refers to the risk that the market
price of bitcoin held by the Trust will rise or fall, sometimes rapidly or unpredictably. An investment in the Shares is subject to market
risk, including the possible loss of the entire principal of the investment.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Investors should not rely on past performance in deciding whether
to buy Shares. </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Investors should not rely on the past performance
of the Trust, the Reference Rate or bitcoin in deciding whether to buy Shares in the Fund.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>The NAV may not always correspond to the market price of bitcoin
and, as a result, Baskets may be created or redeemed at a value that is different from the market price of the Shares. </I></B></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">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The NAV of the Trust will change as fluctuations
occur in the market price of the Trust&#8217;s bitcoin holdings. Shareholders should be aware that the public trading price per Share
may be different from the NAV for a number of reasons, including price volatility, trading activity, the closing of bitcoin exchanges
due to fraud, failure, security breaches or otherwise, and the fact that supply and demand forces at work in the secondary trading market
for Shares are related, but not identical, to the supply and demand forces influencing the market price of bitcoin.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">An Authorized Participant may be able to create
or redeem a Basket at a discount or a premium to the public trading price per Share, although all such creations or redemptions must
take place in-kind, and the Trust will therefore maintain its intended fractional exposure to a specific amount of bitcoin per Share.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Shareholders also should note that the size of
the Trust in terms of total bitcoin held may change substantially over time and as Baskets are created and redeemed.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Authorized Participants&#8217; buying and selling activity associated
with the creation and redemption of Baskets may adversely affect an investment in the Shares of the Trust. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Authorized Participants&#8217; purchase of bitcoin
in connection with Basket creation orders may cause the price of bitcoin to increase, which will result in higher prices for the Shares.
Increases in the bitcoin prices may also occur as a result of bitcoin purchases by other market participants who attempt to benefit from
an increase in the market price of bitcoin when Baskets are created. The market price of bitcoin may therefore decline immediately after
Baskets are created.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Selling activity associated with sales of bitcoin
by Authorized Participants in connection with redemption orders may decrease the bitcoin prices, which will result in lower prices for
the Shares. Decreases in bitcoin prices may also occur as a result of selling activity by other market participants.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">In addition to the effect that purchases and
sales of bitcoin by Authorized Participants may have on the price of bitcoin, sales and purchases of bitcoin by similar investment vehicles
(if developed) could impact the price of bitcoin. If the price of bitcoin declines, the trading price of the Shares will generally also
decline.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Authorized Participants and market makers will
generally want to hedge their exposure in connection with Basket creation and redemption orders. To the extent Authorized Participants
and market makers are unable to hedge their exposure due to market conditions (e.g., insufficient bitcoin liquidity in the market, inability
to locate an appropriate hedge counterparty, etc.), such conditions may make it difficult to create or redeem Baskets or cause them to
not create or redeem Baskets. In addition, the hedging mechanisms employed by Authorized Participants and market makers to hedge their
exposure to bitcoin may not function as intended, which may make it more difficult for them to enter into such transactions. Such events
could negatively impact the market price of the Trust and the spread at which the Trust trades on the open market. The market for exchange-traded
bitcoin futures has limited trading history and operational experience and may be less liquid, more volatile and more vulnerable to economic,
market and industry changes than more established futures markets. The liquidity of the market will depend on, among other things, the
adoption of bitcoin and the commercial and speculative interest in the market for the ability to hedge against the price of bitcoin with
exchange-traded bitcoin futures.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The arbitrage mechanism on which the Trust relies
to keep the price of the Shares closely linked to the price of bitcoin, as reflected via the Reference Rate, 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 Reference Rate. Authorized Participants may purchase or sell bitcoins on public or private markets not included
among the Bitcoin Exchanges included in the Reference Rate, and such transactions may take place at prices materially higher or lower
than the Reference Rate. Furthermore, while the Reference Rate provides a U.S.&#160;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 Reference Rate.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The price of bitcoins on an individual Bitcoin
Exchange could be materially higher or lower than the Reference Rate. 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 Reference Rate, the price of the Shares may no longer track, whether temporarily
or over time, the Reference Rate, which could adversely affect an investment in the Trust by reducing investors&#8217; confidence in
the Shares&#8217; ability to track the market price of bitcoin.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</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">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 10pt"><B><I>Arbitrage transactions intended
to keep the price of Shares closely linked to the price of bitcoin may be problematic if the process for the creation and redemption
of Baskets </I></B></FONT><B><I>becomes more difficult, or if Authorized Participants or market makers encounter <FONT STYLE="font-size: 10pt">difficulties,
which may adversely affect an investment in the Shares. </FONT></I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><FONT STYLE="font-size: 10pt">If the processes
of creation and redemption of the Shares encounter any unanticipated difficulties, including, but not limited to, the</FONT> price volatility
of bitcoin, the insolvency, business failure or interruption, default, failure to perform, security breach, or other problems affecting
the Bitcoin Custodian, the closing of bitcoin trading platforms due to fraud, failures, regulatory or legislative action, security breaches
or otherwise, or network outages or congestion, spikes in fees demanded by miners, or other problems or disruptions affecting the Bitcoin
network, the <FONT STYLE="font-size: 10pt">Trust&#8217;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 bitcoin may not take the risk that, as a result of those difficulties, they may not be able to realize the profit they
expect. </FONT> In addition, in the case of a network outage or other problems affecting the Bitcoin network, the processing of transactions
on the Bitcoin network may be disrupted, which in turn may prevent Authorized Participants (or market makers via Authorized Participants)
from transacting in bitcoin and/or purchasing or redeeming Baskets. In such situations<FONT STYLE="font-size: 10pt">, the liquidity of
Shares may decline and the price of the Shares may fluctuate independently of the price of bitcoin and may fall. </FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>The Trust is subject to risks due to its concentration of investments
in a single asset class. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Unlike other funds that may invest in diversified
assets, the Trust&#8217;s investment strategy is concentrated in a single asset class: bitcoin. This concentration maximizes the degree
of the Trust&#8217;s exposure to a variety of market risks associated with bitcoin. By concentrating its investment strategy solely in
bitcoin, any losses suffered as a result of a decrease in the value of bitcoin can be expected to reduce the value of an interest in
the Trust and will not be offset by other gains if the Trust were to invest in underlying assets that were diversified.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"> The lack of full insurance and Shareholders&rsquo;
limited rights of legal recourse against the Trust, Trustee, Sponsor, Trust Administrator, Cash Custodian and Bitcoin Custodian expose
the Trust and its Shareholders to the risk of loss of the Trust&rsquo;s bitcoins for which no person or entity is liable. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="text-decoration: none"><B><I>&#160;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><FONT STYLE="text-decoration: none">The Trust
is not a banking institution or otherwise a member of the Federal Deposit Insurance Corporation (&#8220;FDIC&#8221;) or Securities Investor
Protection Corporation (&#8220;SIPC&#8221;) 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. In addition, neither the Trust nor the Sponsor insure the Trust&#8217;s
bitcoins. While the Bitcoin Custodian has advised the Sponsor that it has insurance coverage up to a certain amount that could be used
to repay losses of the digital assets it custodies on behalf of its clients, including the Trust&#8217;s bitcoin, resulting from theft,
Shareholders cannot be assured that the Bitcoin Custodian will maintain adequate insurance, that such coverage will cover losses with
respect to the Trust&#8217;s bitcoins, or that sufficient insurance proceeds will be available to cover the Trust&#8217;s losses in full.
The Bitcoin Custodian&#8217;s insurance may not cover the type of losses experienced by the Trust. Alternatively, the Trust may be forced
to share such insurance proceeds with other clients or customers of the Bitcoin Custodian, which could reduce the amount of such proceeds
that are available to the Trust. In addition, the bitcoin insurance market is limited, and the level of insurance maintained by the Bitcoin
Custodian may be substantially lower than the assets of the Trust. While the Bitcoin Custodian maintains certain capital reserve requirements
depending on the assets under custody, and such capital reserves may provide additional means to cover client asset losses, the Trust
cannot be assured that the Bitcoin Custodian will maintain capital reserves sufficient to cover actual or potential losses with respect
to the Trust&#8217;s digital assets.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 2pt">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 2pt"><FONT STYLE="text-decoration: none">&#160;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"> Furthermore, under the Custodian Agreement,
the Bitcoin Custodian&rsquo;s liability is limited in various ways. The Bitcoin Custodian is not liable for delays, suspension of operations,
failure in performance, or interruption of service to the extent it is directly due to a cause or condition beyond the reasonable control
of the Bitcoin Custodian. In the event of potential losses incurred by the Trust as a result of the Bitcoin Custodian losing control
of the Trust&rsquo;s bitcoins or failing to properly execute instructions on behalf of the Trust, the Bitcoin Custodian&rsquo;s liability
with respect to the Trust will be subject to certain limitations which may allow it to avoid liability for potential losses or may be
insufficient to cover the value of such potential losses. Furthermore, the insurance maintained by the Bitcoin Custodian may be insufficient
to cover its liabilities to the Trust. Both the Trust and the Bitcoin Custodian are required to indemnify each other under certain circumstances.
Although the Bitcoin Custodian carries insurance for the benefit of its account holders, the Bitcoin Custodian&rsquo;s insurance does
not cover any loss in value to bitcoin and only covers losses caused by certain events such as fraud or theft and, in such covered events,
it is unlikely the insurance would cover the full amount of any losses incurred by the Trust. The Bitcoin Custodian maintains a commercial
crime insurance policy, which is intended to cover the loss of client assets held in cold storage, including from employee collusion
or fraud, physical loss including theft, damage of key material, security breach or hack, and fraudulent transfer. The insurance maintained
by the Bitcoin Custodian is shared among all of the Bitcoin Custodian&rsquo;s customers, is not specific to the Trust or to customers
holding bitcoin with the Bitcoin Custodian, and may not be available or sufficient to protect the Trust from all possible losses or sources
of losses. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 2pt"><FONT STYLE="text-decoration: none">&#160;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><FONT STYLE="text-decoration: none">Moreover,
in the event of an insolvency or bankruptcy of the Bitcoin Custodian in the future, given that the contractual protections and legal
rights of customers with respect to digital assets held on their behalf by third parties are relatively untested in a bankruptcy of an
entity such as the Bitcoin Custodian in the virtual currency industry, there is a risk that customers&#8217; assets &#8211; including
the Trust&#8217;s assets &#8211; may be considered the property of the bankruptcy estate of the Bitcoin Custodian, and customers &#8211;
including the Trust &#8211; may be at risk of being treated as general unsecured creditors of such entities and subject to the risk of
total loss or markdowns on value of such assets.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 2pt"><FONT STYLE="text-decoration: none">&#160;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><FONT STYLE="text-decoration: none">The Custody
Agreement contains an agreement by the parties to treat the bitcoin credited to the Trust&#8217;s Vault Balance as financial assets under
Article 8 of the New York Uniform Commercial Code (&#8220;Article 8&#8221;), in addition to stating that the Bitcoin Custodian will serve
as fiduciary and custodian on the Trust&#8217;s behalf. It is possible that a court would not treat custodied digital assets as part
of the Bitcoin Custodian&#8217;s general estate in the event the Bitcoin Custodian were to experience insolvency. However, due to the
novelty of digital asset custodial arrangements courts have not yet considered this type of treatment for custodied digital assets and
it is not possible to predict with certainty how they would rule in such a scenario. If the Bitcoin Custodian became subject to insolvency
proceedings and a court were to rule that the custodied bitcoin were part of the Bitcoin Custodian&#8217;s general estate and not the
property of the Trust, then the Trust would be treated as a general unsecured creditor in the Bitcoin Custodian&#8217;s insolvency proceedings
and the Trust could be subject to the loss of all or a significant portion of its assets. Moreover, in the event of the bankruptcy of
the Bitcoin Custodian, an automatic stay could go into effect and protracted litigation could be required in order to recover the assets
held with the Bitcoin Custodian, all of which could significantly and negatively impact the Trust&#8217;s operations and the value of
the Shares.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 2pt"><FONT STYLE="text-decoration: none">&#160;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><FONT STYLE="text-decoration: none">[Under the
Trust Agreement, the Trustee and the Sponsor will not be liable for any liability or expense incurred, including, without limitation,
as a result of any loss of bitcoin by the Bitcoin Custodian, absent gross negligence or bad faith on the part of the Sponsor or breach
by the Sponsor of the Trust Agreement, as the case may be. As a result, the recourse of the Trust or the Shareholders to the Trustee
or the Sponsor, including in the event of a loss of bitcoin by the Bitcoin Custodian, is limited.]</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 2pt"><FONT STYLE="text-decoration: none">&#160;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><FONT STYLE="text-decoration: none">The Shareholders&#8217;
recourse against the Sponsor, the Trustee, and the Trust&#8217;s other service providers for the services they provide to the Trust,
including, without limitation, those relating to the holding of bitcoin or the provision of instructions relating to the movement of
bitcoin, is limited. For the avoidance of doubt, neither the Sponsor, the Trustee, nor any of their affiliates, nor any other party has
guaranteed the assets or liabilities, or otherwise assumed the liabilities, of the Trust, or the obligations or liabilities of any service
provider to the Trust, including, without limitation, the Bitcoin Custodian. Consequently, a loss may be suffered with respect to the
Trust&#8217;s bitcoin that is not covered by the Bitcoin Custodian&#8217;s insurance and for which no person is liability in damages.
As a result, the recourse of the Trust or the Shareholders, under applicable law, is limited.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&#160;</I></B></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0; margin-bottom: 0pt"><FONT STYLE="text-decoration: none">Loss
of a critical banking relationship for, or the failure of a bank used by, the Trust could adversely impact the Trust&#8217;s ability
to create or redeem Creation Baskets, or could cause losses to the Trust.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 7.8pt 0pt 0; text-indent: 22.5pt">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><FONT STYLE="text-decoration: none">The Cash
Custodian is necessary to facilitate the creation and redemption of Baskets (in exchange for cash subscriptions by Authorized Participants,
or in exchange for redemptions of Shares by Authorized Participants), and other cash movements, including in connection with the purchase
of bitcoin by the Sponsor to effectuate subscriptions for cash and the selling of bitcoin to effect redemptions for cash or pay the Sponsor
Fee and, to the extent applicable, other Trust expenses, and in extraordinary circumstances, to effect the liquidation of the Trust&#8217;s
bitcoin. The Trust relies on the Cash Custodian to hold any cash related to the purchase or sale of bitcoin. To the extent that the Trust
or Sponsor face difficulty establishing or maintaining banking relationships, the loss of the Trust&#8217;s banking partners, including
the Cash Custodian, or the imposition of operational restrictions by these banking partners and the inability for the Trust to utilize
other financial institutions may result in a disruption of creation and redemption activity of the Trust, or cause other operational
disruptions or adverse effects for the Trust. In the future, it is possible that the Trust could be unable to establish accounts at new
banking partners or establish new banking relationships, or that the banks with which the Trust is able to establish relationships may
not be as large or well-capitalized or subject to the same degree of prudential supervision as the existing providers.</FONT></P>

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

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><FONT STYLE="text-decoration: none">The Trust
could also suffer losses in the event that a bank in which the Trust holds customer cash, including the cash associated with the Trust&#8217;s
account at the Cash Custodian, fails, becomes insolvent, enters receivership, is taken over by regulators, enters financial distress,
or otherwise suffers adverse effects to its financial condition or operational status. Recently, some banks have experienced financial
distress. If the Cash Custodian were to experience financial distress or its financial condition is otherwise affected, the Cash Custodian&#8217;s
ability to provide services to the Trust could be affected. Moreover, the future failure of a bank at which the Trust maintains cash,
could result in losses to the Trust, to the extent the balances are not subject to deposit insurance, notwithstanding the regulatory
requirements to which the Cash Custodian is subject or other potential protections. As a result, the Trust could suffer losses.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>The lack of active trading markets for the Shares of the Trust
may result in losses on Shareholders&#8217; investments at the time of disposition of Shares. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"> Although Shares of the Trust will be publicly
listed and traded on the Exchange, there can be no guarantee that an active trading market for the Trust will develop or be maintained.
If Shareholders need to sell their Shares at a time when no active market for them exists, the price Shareholders receive for their Shares,
assuming that Shareholders are able to sell them, likely will be lower than the price that Shareholders would receive if an active market
did exist and, accordingly, a Shareholder may suffer losses. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Possible illiquid markets may exacerbate losses or increase
the variability between the Trust&#8217;s NAV and its market price. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><FONT STYLE="font-size: 10pt">Bitcoin is a </FONT>relatively
<FONT STYLE="font-size: 10pt">new asset with limited trading history. Therefore, the markets for bitcoin may be less liquid and more
volatile than other markets for more established products. It may be difficult to execute a bitcoin trade at a specific price when there
is a relatively small volume of buy and sell orders in the bitcoin market. A market disruption can also make it more difficult to liquidate
a position or find a suitable counterparty at a reasonable cost. </FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Market illiquidity may cause losses for the Trust.
The large size of the positions that the Trust may acquire will increase the risk of illiquidity by both making the positions more difficult
to liquidate and increasing the losses incurred while trying to do so should the Trust need to liquidate its bitcoin, or making it more
difficult for Authorized Participants to acquire or liquidate bitcoin as part of the creation and/or redemption of Shares of the Trust.
Any type of disruption or illiquidity will potentially be exacerbated due to the fact that the Trust will typically invest in bitcoin,
which is highly concentrated.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Several factors may affect the Trust&#8217;s ability to achieve
its investment objective on a consistent basis. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><FONT STYLE="font-size: 10pt">There is no guarantee
that the Trust will meet its investment objective. Factors that may affect the Trust&#8217;s ability to meet its investment objective
include</FONT>, without limitation<FONT STYLE="font-size: 10pt">: (1)&#160;Authorized Participants&#8217; </FONT>willingness and <FONT STYLE="font-size: 10pt">ability
to purchase and sell bitcoin</FONT> (or provide cash in relation thereto) <FONT STYLE="font-size: 10pt">in an efficient manner to effectuate
creation and redemption orders; (2)&#160;transaction fees associated with the Bitcoin network; (3)&#160;the bitcoin market becoming illiquid
or disrupted; (4)&#160;the Trust&#8217;s Share prices being rounded to the nearest cent and/or valuation methodologies; (5)&#160;the
need to conform the Trust&#8217;s portfolio holdings to comply with investment restrictions or policies or regulatory or tax law requirements;
(6)&#160;early or unanticipated closings of the markets on which bitcoin trades, resulting in the inability of Authorized Participants
to execute intended portfolio transactions; (7)&#160;accounting standards</FONT>; and (8) the Reference Rate becoming disrupted, unavailable
or unreliable<FONT STYLE="font-size: 10pt">. </FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>The amount of bitcoin represented by the Shares will decline
over time. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The amount of bitcoin represented by the Shares
will continue to be reduced during the life of the Trust due to the transfer of the Trust&#8217;s bitcoin to pay for the Sponsor Fee,
and to pay for extraordinary fees and expenses. This dynamic will occur irrespective of whether the trading price of the Shares rises
or falls in response to changes in the price of bitcoin.</P>

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

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Each outstanding Share represents a fractional,
undivided interest in the bitcoin held by the Trust. The Trust does not generate any income and transfers bitcoin to pay for the Sponsor
Fee, and to pay for extraordinary fees and expenses. Therefore, the amount of bitcoin represented by each Share will gradually decline
over time. This is also true with respect to Shares that are issued in exchange for additional deposits of bitcoin over time, as the
amount of bitcoin required to create Shares proportionally reflects the amount of bitcoin represented by the Shares outstanding at the
time of such creation unit being created. Assuming a constant bitcoin price, the trading price of the Shares is expected to gradually
decline relative to the price of bitcoin as the amount of bitcoin represented by the Shares gradually declines.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Shareholders should be aware that the gradual
decline in the amount of bitcoin represented by the Shares will occur regardless of whether the trading price of the Shares rises or
falls in response to changes in the price of bitcoin.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>The development and commercialization of the Trust is subject
to competitive pressures. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The Trust and the Sponsor face competition with
respect to the creation of competing products. The Sponsor&#8217;s competitors may have greater financial, technical and human resources
than the Sponsor. These competitors may also compete with the Sponsor in recruiting and retaining qualified personnel. Smaller or early
stage companies may also prove to be effective competitors, particularly through collaborative arrangements with large and established
companies. Accordingly, the Sponsor&#8217;s competitors may commercialize a product involving bitcoin more rapidly or effectively than
the Sponsor is able to, which could adversely affect the Sponsor&#8217;s competitive position, the likelihood that the Trust will achieve
initial market acceptance and the Sponsor&#8217;s ability to generate meaningful revenues from the Trust.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>The Trust is an emerging growth company and the Trust cannot
be certain if the reduced disclosure requirements applicable to emerging growth companies will make the Shares less attractive to investors.
</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The Trust is an emerging growth company, as defined
in the JOBS Act, and may take advantage of certain exemptions from various reporting requirements that are applicable to other public
companies that are not emerging growth companies. The Trust cannot predict if investors will find the Shares less attractive because
of the Trust&#8217;s reliance on these exemptions. If some investors find the Trust&#8217;s Shares less attractive as a result, there
may be a less active trading market for the Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">In addition, under the JOBS Act, the Trust&#8217;s
independent registered public accounting firm will not be required to attest to the effectiveness of its internal control over financial
reporting pursuant to Section&#160;404 of the Sarbanes-Oxley Act of 2002 for so long as it is an emerging growth company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">For as long as the Trust takes advantage of the
reduced reporting obligations, the information that the Trust provides its Shareholders may be different from information provided by
other public companies.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>If the Trust issues all Shares registered in this offering or
such registration expires, it could have to cease creating new Baskets until additional shares are registered for sale. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Investors should be aware that if the Trust issues
all Shares registered in this offering or the offering expires, it could have to cease creating new Baskets until additional shares are
registered for sale. This could impact the trading price of the Trust&#8217;s Shares. Moreover, soon after new Baskets are created and
sold under this Prospectus, there is a possibility that the availability of newly created Shares may (or may not) affect the trading
price of the Shares already issued, and both current Shareholders and purchasers of newly created Shares could be adversely affected
by falling trading prices.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Regulatory Risks </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: 24.5pt"> <FONT STYLE="background-color: white">As bitcoin
and digital assets have grown in both popularity and market size, the U.S. Congress and a number of U.S. federal and state agencies have
been examining the operations of digital asset networks, digital asset users and the digital asset spot market. Many of these state and
federal agencies have brought enforcement actions and issued advisories and rules relating to digital asset markets. The U.S. Securities
Exchange Commission (the &ldquo;SEC&rdquo;) has recently charged certain large US digital asset trading platforms of supporting trading
and settlement of securities in violation of the US federal securities laws. Specifically, the SEC has alleged that these exchanges are
operating as unregistered securities exchanges, brokers and clearing agencies. For example, on June 5, 2023, the SEC filed lawsuits against
cryptocurrency exchanges Coinbase and Binance alleging, among other things, their operation of an unlicensed securities exchange. Although
the SEC has not alleged that bitcoin is a security, the outcome of these enforcement actions and others may result in the substantial
restructuring of the digital asset market in the United States. Moreover, until these actions are resolved, the structure of the digital
asset market in the United States will remain subject to substantial regulatory risk, which may impact the demand for digital assets
and the continued availability of existing exchanges and offerings. The U.S. Congress is also actively preparing new legislation to address
certain market structure issues relating to digital assets and stablecoins. The outcome of this legislation is unknown. Both the outcome
of the pending SEC enforcement actions and federal legislation are highly uncertain and may alter, perhaps to a materially adverse extent,
the nature of an investment in the Shares and/or the ability of the Trust to continue to operate.</FONT> </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"> &nbsp; </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"> <FONT STYLE="background-color: white">Although
neither the SEC nor the CFTC has exerted direct authority over bitcoin or bitcoin spot trading activity, the SEC and CFTC have broad
authority over the regulation of issuances of securities (including digital asset securities) and commodity interests (including derivative
instruments utilizing or referencing digital assets). The SEC and CFTC&rsquo;s engagement with the digital asset industry has had a material
impact on the development of digital asset markets, including initial coin offerings, margin trading, regulated and unregulated derivatives
markets, and decentralized finance markets. For example, the SEC has issued guidance as to the application of the securities laws to
digital assets and initiated enforcement actions against certain digital asset issuers and offerings on the basis that such digital assets
and offerings are securities under U.S. securities laws. In these actions, the SEC reasoned that the unregistered offer and sale of digital
assets can, in certain circumstances, including ICOs, be considered an illegal public offering of securities. Similarly, the CFTC, together
with the Department of Justice, has initiated enforcement actions against digital asset trading platforms relating to violations of the
CEA, on the basis that such platforms engaged in illegal,&nbsp;off-exchange&nbsp;retail commodity transactions in digital assets and
digital asset derivative transactions. Further enforcement actions against participants in the digital asset industry could have negative
impacts the price of digital assets, including bitcoin.</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: 24.5pt; background-color: white"> In August 2021, Gary
Gensler, the Chairman of the SEC, stated that he believed investors using digital asset trading platforms are not adequately protected,
and that activities on the platforms can implicate the securities laws, commodities laws and banking laws, raising a number of issues
related to protecting investors and consumers, guarding against illicit activity, and ensuring financial stability. Chair Gensler expressed
a need for the SEC to have additional authorities to prevent transactions, products, and platforms from &ldquo;falling between regulatory
cracks,&rdquo; as well as for more resources to protect investors in &ldquo;this growing and volatile sector.&rdquo; Chair Gensler called
for federal legislation centering on digital asset trading, lending, and decentralized finance platforms, seeking &ldquo;additional plenary
authority&rdquo; to write rules for digital asset trading and lending. It is not possible to predict whether the U.S. Congress will grant
additional authorities to the SEC or other regulators, what the nature of such additional authorities might be, how they might impact
the ability of digital assets markets to function or how any new regulations that may flow from such authorities might impact the value
of digital assets generally and bitcoin held by the Trust specifically. Subsequent to Chair Gensler&rsquo;s assertions in August 2021,
in April 2022, he announced that he instructed the SEC staff to work (i)&nbsp;to register and regulate digital asset platforms like securities
exchanges; (ii)&nbsp;with the CFTC on how to jointly address digital asset platforms that trade both securities and&nbsp;non-securities;&nbsp;(iii)&nbsp;on
segregating out digital asset platforms&rsquo; custody of customer assets, if appropriate; and (iv)&nbsp;on segregating out the market
making functions of digital asset platforms, if appropriate. At the same time and continuing through the date of this Prospectus, the
U.S. Congress continues to consider and debate a variety of proposals regarding how digital assets should be characterized and regulated. </P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt; background-color: white"> In addition to the
SEC&rsquo;s actions targeting digital assets and trading platforms directly, the SEC has also targeted regulated investments that provide
exposure to digital assets indirectly. For example, in a recent letter regarding the SEC&rsquo;s review of proposed rule changes to list
and trade shares of certain bitcoin-related investment vehicles on public markets, the SEC staff stated that it has significant investor
protection concerns regarding the markets for digital assets, including the potential for market manipulation and fraud. In March 2018,
it was reported that the SEC was examining as many as 100 investment funds with strategies focused on digital assets. The reported focus
of the examinations is on the accuracy of risk disclosures to investors in these funds, digital asset pricing practices, and compliance
with rules meant to prevent the theft of investor funds, as well as on information gathering so that the SEC can better understand new
technologies and investment products. It has further been reported that some of these funds have received subpoenas from the SEC&rsquo;s
Enforcement Division. Additionally, the SEC&rsquo;s Division of Examinations (then the Office of Compliance Inspections and Examinations
(&ldquo;OCIE&rdquo;)) stated that digital assets remain an examination priority for 2023. In particular, OCIE intended to focus its examination
on portfolio management of digital assets, safety of client funds and assets, pricing and valuation of client portfolios, compliance
and internal controls, and supervision of employee outside business activities. </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: 24.5pt; background-color: white"> OFAC has added digital
currency addresses to the list of Specially Designated Nationals whose assets are blocked, and with whom U.S. persons are generally prohibited
from dealing. Such actions by OFAC, or by similar organizations in other jurisdictions, may introduce uncertainty in the market as to
whether bitcoin that has been associated with such addresses in the past can be easily sold. This &ldquo;tainted&rdquo; bitcoin may trade
at a substantial discount to untainted bitcoin. Reduced fungibility in the bitcoin markets may reduce the liquidity of bitcoin and therefore
adversely affect its price. </P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt; background-color: white"> In December 2020,
FinCEN, a bureau within the U.S. Treasury Department, proposed a rule that would require financial institutions to submit reports, keep
records, and verify the identity of customers for certain transactions to or from&nbsp;so-called&nbsp;&ldquo;unhosted&rdquo; wallets,
also commonly referred to as self-hosted wallets. In May 2021, the U.S. Department of Treasury proposed new rules potentially requiring
businesses to record transactions in digital assets that exceed $10,000 in value. It remains unclear if these proposed rules will ultimately
be adopted. </P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt; background-color: white"> On March&nbsp;9,
2022, President Biden signed an Executive Order on Ensuring Responsible Development of Digital Assets (the &ldquo;Executive Order&rdquo;),
which outlined a unified federal regulatory approach to addressing the risks and benefits of digital assets. The Executive Order articulated
various policy objectives related to digital assets, including investor protections, financial and national security risks, and responsible
development and use of digital assets. The Executive Order directed federal government departments and agencies to produce various reports,
frameworks, analyses, and regulatory and legislative recommendations to the Biden Administration. The policies and objectives of the
Executive Order are broad and, at this time, it is unclear what impact it may have on the regulation of bitcoin and other digital assets.
The consequences of increased federal regulation of digital assets and digital asset activities could have a material adverse effect
on the Trust and the Shares. If the Sponsor determines not to comply with such additional regulatory and registration requirements, it
may seek to cease certain or all of the Trust&rsquo;s operations. Any such action could have a material adverse effect on our business,
financial condition and results of operations. </P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt; background-color: white"> The entire cryptocurrency
industry experienced a significant drawdown in 2022, particularly throughout the latter half of the year. The decline was due to numerous
factors, including a slowing macroeconomic environment, rising interest rates, expiring pandemic financial assistance, and the public
collapse of several major industry participants, including Three Arrows Capital, Voyager, Celsius, and most recently, FTX and Genesis.
The cryptocurrency industry&rsquo;s turbulent drawdown in 2022 is expected to draw increased regulatory scrutiny from the U.S. Congress,
SEC, and CFTC in the remainder of 2023 and beyond. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"> Under regulations from the New York State
Department of Financial Services (&ldquo;NYDFS&rdquo;), businesses involved in certain digital asset business activity involving New
York or a New York resident must apply for a license, commonly known as a BitLicense, from the NYDFS and must comply with anti-money
laundering, cyber security, consumer protection, and financial and reporting requirements, among others. As an alternative to a BitLicense,
a firm can apply for a charter to become a limited purpose trust company under New York law qualified to engage in digital asset business
activity. Other states have considered or approved digital asset business activity statutes or rules, passing, for example, regulations
or guidance indicating that certain digital asset business activities constitute money transmission requiring licensure. The regulation
of digital asset activity under state money transmission laws varies substantially. Differences between state regimes increase the complexity
and compliance burden of operating digital asset businesses across the U.S., which may affect consumer adoption of bitcoin and its price.
In an attempt to address these issues, the Uniform Law Commission passed a model law in July 2017, the Uniform Regulation of Virtual
Currency Businesses Act, which has many similarities to the BitLicense and features a multistate reciprocity licensure feature, wherein
a business licensed in one state could apply for accelerated licensure procedures in other states. As of 2023, only Rhode Island has
adopted the model law, while three other states have introduced it. It is still unclear; however, how many states will ultimately adopt
some or all of the model legislation. </P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt; background-color: white"> In June 2021, the
government of El Salvador announced and passed legislation that identified bitcoin as legal tender in El Salvador. Other South and Central
American political leaders have indicated a desire to explore the issues relating to legal tender status for bitcoin. In April 2022,
the government of the Central African Republic announced its adoption of bitcoin as legal tender in the Central African Republic. It
is unclear whether the designation of bitcoin as legal tender in El Salvador, the Central African Republic, or any other country will
impact the regulatory treatment of bitcoin in the United States, or whether other countries will adopt similar legislation. </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: 24.5pt; background-color: white"> On February&nbsp;15,
2022, Representative Warren Davidson introduced the &ldquo;Keep Your Coins Act,&rdquo; which is intended &ldquo;[t]o prohibit Federal
agencies from restricting the use of convertible virtual currency by a person to purchase goods or services for the person&rsquo;s own
use, and for other purposes.&rdquo; That same day, Congressman Josh Gottheimer also announced a&nbsp;discussion draft&nbsp;of the &ldquo;Stablecoin
Innovation and Protection Act,&rdquo; which is intended to define &ldquo;qualified stablecoins&rdquo; to differentiate them from &ldquo;more
volatile cryptocurrencies.&rdquo; </P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt; background-color: white"> On March&nbsp;17,
2022, Senators Elizabeth Warren, Jack Reed, Mark Warner, and Jon Tester introduced the&nbsp;Digital Asset Sanctions Compliance Enhancement
Act&nbsp;in an attempt to ensure blacklisted Russian individuals and businesses do not use cryptocurrency to evade economic sanctions.
The bill does not come without controversy, however, as it &ldquo;would place sweeping restrictions on persons who build, operate and
use cryptocurrency networks even if they have no knowledge or intent to help anyone evade sanctions,&rdquo; according to policy group
Coin Center. </P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt; background-color: white"> On March&nbsp;28,
2022, Representative Stephen Lynch, along with&nbsp;co-sponsors&nbsp;Jes&uacute;s G. Garc&iacute;a, Rashida Tlaib, Ayanna Pressley, and
Alma Adams, introduced&nbsp;H.R. 7231, the Electronic Currency and Secure Hardware Act (ECASH Act), which would direct the secretary
of the U.S. Department of the Treasury (not the Federal Reserve) to develop and issue a digital analogue to the U.S. dollar, or&nbsp;&ldquo;e-cash,&rdquo;&nbsp;which
is intended to &ldquo;replicate and preserve the privacy, anonymity-respecting, and minimal transactional data-generating properties
of physical currency instruments such as coins and notes to the greatest extent technically and practically possible,&rdquo; all without
requiring a bank account.&nbsp;E-cash&nbsp;would be legal tender, payable to the bearer and functionally identical to physical U.S. coins
and notes, &ldquo;capable of instantaneous, final, direct,&nbsp;peer-to-peer,&nbsp;offline transactions using secured hardware devices
that do not involve or require subsequent or final settlement on or via a common or distributed ledger, or any other additional approval
or validation by the United States Government or any other third-party payments processing intermediary,&rdquo; including fully anonymous
transactions, and &ldquo;interoperable with all existing financial institutions and payment systems and generally accepted payments standards
and network protocols, as well as other public payments programs.&rdquo; </P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt; background-color: white"> On April&nbsp;6,
2022, Senator Pat Toomey released a draft of his&nbsp;Stablecoin Transparency of Reserves and Uniform Safe Transactions Act, or Stablecoin
TRUST Act. The draft bill contemplates a &ldquo;payment stablecoin,&rdquo; which is convertible directly to fiat currency by the issuer.
Only an insured depositary institution, a money transmitting business (authorized by its respective state authority) or a new &ldquo;national
limited payment stablecoin issuer&rdquo; would be eligible to issue payment stablecoins. Additionally, payment stablecoins would be exempt
from the federal securities requirements, including the 1933 Act, the 1934 Act, and the Investment Company Act of 1940 (the &ldquo;1940
Act&rdquo;). </P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt; background-color: white"> On June&nbsp;7, 2022,
Senators Kirsten Gillibrand and Cynthia Lummis introduced the &ldquo;Responsible Financial Innovation Act,&rdquo; which was drafted to
&ldquo;create a complete regulatory framework for digital assets that encourages responsible financial innovation, flexibility, transparency
and robust consumer protections while integrating digital assets into existing law.&rdquo; Importantly, the legislation would assign
regulatory authority over digital asset spot markets to the CFTC and codify that digital assets that meet the definition of a commodity,
such as bitcoin and ether, would be regulated by the CFTC. </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: 24.5pt; background-color: white"> In 2023, Congress
continued to consider several stand-alone digital asset bills, including a formal process to determine when digital assets will be treated
as either securities to be regulated by the SEC or commodities under the purview of the CFTC, what type of federal/state regulatory regime
will exist for payment stablecoins and the how the Bank Secrecy Act (&ldquo;BSA&rdquo;) will apply to cryptocurrency providers. The Financial
Innovation and Technology for the 21st Century Act (&ldquo;FIT for the 21st Century Act&rdquo;) advanced through the House in a vote
along bipartisan lines. The FIT for the 21st Century Act would require the SEC and the CFTC to jointly issue rules or guidance that would
outline their process in delisting a digital asset that they deem inconsistent with the CEA, federal securities laws and the FIT for
the 21st Century Act. The bill, in part, would also provide a certification process for blockchains to be recognized as decentralized,
which would allow the SEC to challenge claims made by token issuers about meeting the outlined standards. </P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt; background-color: white"> Legislative efforts
have also focused on setting criteria for stablecoin issuers and what rules will govern redeemability and collateral. The Clarity for
Payment Stablecoins Act of 2023, as introduced by House Finance Committee Chair Patrick McHenry (the &ldquo;McHenry bill&rdquo;), would
make it unlawful for any entity other than a permitted payment stablecoin issuer to issue a payment stablecoin. The McHenry bill would
establish bank-like regulation and supervision for federal qualified nonbank payment stablecoin issuers. These requirements include capital,
liquidity and risk management requirements, application of the Bank Secrecy Act and the Gramm-Leach-Bliley Act&rsquo;s customer privacy
requirements, certain activities limits, and broad supervision and enforcement authority. The McHenry bill would grant state regulators
primary supervision, examination and enforcement authority over state stablecoin issuers, leaving the Federal Reserve Board with secondary,
backup enforcement authority for &ldquo;exigent&rdquo; circumstances. The McHenry bill would also amend the Investment Advisers Act of
1940, the 1940 Act, the 1933 Act, the 1934 Act and the Securities Investor Protection Act of 1970 to specify that payment stablecoins
are not securities for purposes of those federal securities laws. </P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt; background-color: white"> Several other bills
have advanced through Congress to curb crypto as a payment gateway for illicit activity and money laundering. The &ldquo;Blockchain Regulatory
Clarity Act&rdquo; would provide clarity to the regulatory classification of digital assets, providing market certainty for innovators
and clear jurisdictional boundaries for regulators by affirming that blockchain developers and other related service providers that do
not custody customer funds are not money transmitters. The &ldquo;Financial Technology Protection Act&rdquo;, another bipartisan measure,
would set up an independent Financial Technology Working Group to combat terrorism and illicit financing in cryptocurrency. The &ldquo;Blockchain
Regulatory Certainty Act&rdquo; aims to protect certain blockchain platforms from being designated as money-services businesses. Both
acts advanced through the House with bipartisan support. </P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt; background-color: white"> In a similar effort
to prevent money laundering and stop crypto-facilitated crime and sanctions violations, bipartisan legislation was introduced to require
decentralized finance (&ldquo;DeFi&rdquo;) services to meet the same anti-money laundering and economic sanctions compliance obligations
as other financial companies. DeFi generally refers to applications that facilitate&nbsp;peer-to-peer&nbsp;financial transactions that
are recorded on blockchains. By design, DeFi provides anonymity, which can allow malicious and criminal actors to evade traditional financial
regulatory tools. Noting that transparency and sensible rules are vital for protecting the financial system from crime, the &ldquo;Crypto-Asset
National Security Enhancement and Enforcement (CANSEE) Act&rdquo; was introduced. The CANSEE Act would end special treatment for DeFi
by applying the same national security laws that apply to banks and securities brokers, casinos and pawn shops, and other cryptocurrency
companies like centralized trading platforms. DeFi services would be forced to meet basic obligations, most notably to maintain anti-money
laundering programs, conduct due diligence on their customers, and report suspicious transactions to FinCEN. </P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt; background-color: white"> The continued evolution
of federal, state and foreign government regulators and policymakers will continue to impact the viability and success of digital asset
markets, broadly, and bitcoin, specifically. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Future and current regulations by a United States or foreign
government or quasi-governmental agency could have an adverse effect on an investment in the Trust. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><FONT STYLE="font-size: 10pt">The regulation
of bitcoin and related products and services continues to evolve, may take many different forms and will, therefore, impact bitcoin and
its usage in a variety of manners. The inconsistent and sometimes conflicting regulatory landscape may make it more difficult for bitcoin
businesses to provide services</FONT>, including trading markets or platforms<FONT STYLE="font-size: 10pt">, which may impede the growth
of the bitcoin economy and have an adverse effect on consumer adoption of bitcoin</FONT> or the ability to trade bitcoin. Many state
and federal agencies have brought enforcement actions or issued consumer advisories regarding the risks posed by digital assets to investors.
<FONT STYLE="font-size: 10pt">There is a possibility of future regulatory change</FONT> or actions <FONT STYLE="font-size: 10pt">altering,
perhaps to a material extent, the nature of an investment in the Trust or the ability of the Trust to continue to operate. </FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><FONT STYLE="font-size: 10pt">Additionally, changes
to current regulatory determinations of bitcoin&#8217;s status as not being a security</FONT> under U.S. federal law<FONT STYLE="font-size: 10pt">,
changes to regulations surrounding bitcoin futures or related products, or actions by a United States or foreign government or quasi-governmental
agency exerting regulatory authority over bitcoin, the Bitcoin network, bitcoin trading, </FONT>bitcoin mining <FONT STYLE="font-size: 10pt">or
related activities impacting other parts of the digital asset market, may adversely impact bitcoin and therefore may have an adverse
effect on the value of your investment in the Trust. </FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>The Trust is not an investment company registered under the
1940 Act or the Commodity Exchange Act. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">While the Sponsor has indicated that the Trust
will voluntarily comply with certain provisions of the 1940 Act, the Trust is not registered as an investment company under the 1940
Act and is not subject to the statutory requirements of the 1940 Act. Further. the Trust will not hold or trade in commodity interests
regulated by the CEA, as administered by the CFTC 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 statutory protections provided to investors in registered investment companies, CEA-regulated instruments or commodity pools.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Future regulations may require the Trust or the Sponsor to become
registered, which may cause the Trust to liquidate. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Current and future legislation, SEC and CFTC
rulemaking, and other regulatory developments may impact the manner in which bitcoin are treated for classification and clearing purposes.
In particular, bitcoin in the future may be classified by the CFTC as a &#8220;commodity interest&#8221; under the CEA and certain transactions
in bitcoin may be deemed to be commodity futures or bitcoin may be classified by the SEC as a &#8220;security&#8221; under U.S. federal
securities laws. In the face of such developments, the required registrations and compliance steps may result in extraordinary, nonrecurring
expenses to the Trust. If the Sponsor decides to terminate the Trust in response to the changed regulatory circumstances, the Trust may
be dissolved or liquidated at a time that is disadvantageous to Shareholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><FONT STYLE="font-size: 10pt">The SEC has stated
that certain digital assets may be considered &#8220;securities&#8221; under the federal securities laws. The test for determining whether
a particular digital asset is a &#8220;security&#8221; is complex and the outcome is difficult to predict. If bitcoin is determined to
be a &#8220;security&#8221; under federal or state securities laws by the SEC or any other agency, or in a proceeding in a court of law
or otherwise, </FONT>such a determination <FONT STYLE="font-size: 10pt">may have material adverse consequences for bitcoin as a digital
asset. For example, it may become more difficult for bitcoin to be traded, cleared and custodied as compared to other digital assets
that are not considered to be securities, which could in turn negatively affect the liquidity and general acceptance of bitcoin and cause
users to migrate to other digital assets. </FONT></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">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">To the extent that bitcoin is determined to be
a security, the Trust and the Sponsor may also be subject to additional regulatory requirements, including under the 1940 Act, and the
Sponsor may be required to register as an investment adviser under the Investment Advisers Act of 1940. 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&#8217;s bitcoin at a time that is disadvantageous to Shareholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">To the extent that bitcoin is deemed to fall
within the definition of a &#8220;commodity interest&#8221; under the CEA, the Trust and the Sponsor may be subject to additional regulation
under the CEA and CFTC regulations. These additional requirements may result in extraordinary, recurring and/or nonrecurring expenses
of the Trust, thereby materially and adversely impacting the Shares. If the Sponsor and/or the Trust determines not to comply with such
additional regulatory and registration requirements, the Sponsor may terminate the Trust. Any such termination could result in the liquidation
of the Trust&#8217;s bitcoin at a time that is disadvantageous to Shareholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Regulatory changes or interpretations of an Authorized Participant&#8217;s,
the Trust&#8217;s or the Sponsor&#8217;s activities could result in extraordinary, recurring and/or nonrecurring expenses to the Authorized
Participant, Trust or Sponsor or increased commissions for the Authorized Participant&#8217;s clients, thereby reducing the liquidity
of the Shares. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">To the extent that the activities of any Authorized
Participant, the Trust or the Sponsor cause it to be deemed a &#8220;money services business&#8221; under the regulations promulgated
by FinCEN under the authority of the U.S. Bank Secrecy Act, such Authorized Participant, the Trust or the Sponsor may be required to
comply with FinCEN regulations, including those that would mandate the Authorized Participant to implement anti-money laundering programs,
make certain reports to FinCEN and maintain certain records. Similarly, the activities of an Authorized Participant, the Trust or the
Sponsor may require it to be licensed as a money transmitter or as a digital asset business, such as under New York Department of Financial
Service&#8217;s BitLicense regulation.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Such additional regulatory obligations may cause
the Authorized Participant, the Trust or the Sponsor to incur extraordinary expenses. If the Authorized Participant, the Trust or the
Sponsor decide to seek the required licenses, there is no guarantee that they will timely receive them. The Authorized Participant may
also instead decide to terminate its role as Authorized Participant of the Trust, or the Sponsor may decide to terminate the Trust. Termination
by the Authorized Participant may decrease the liquidity of the Shares, which may adversely affect the value of the Shares, and any termination
of the Trust in response to the changed regulatory circumstances may be at a time that is disadvantageous to the Shareholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 10pt"><B><I>Trading on bitcoin exchanges outside
the United States is not subject to U.S. regulation, and may be less reliable than U.S. exchanges</I></B></FONT><B><I>, and regulatory
changes or actions in foreign jurisdictions may impact the value of Shares.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">To the extent any of the Trust&#8217;s trading
is conducted on bitcoin exchanges outside the U.S., trading on such exchanges is not regulated by any U.S. governmental agency and may
involve certain risks not applicable to trading on U.S. exchanges. Certain foreign markets may be more susceptible to disruption than
U.S. exchanges. These factors could adversely affect the performance of the Trust.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><FONT STYLE="text-decoration: none">Various foreign
jurisdictions have, and may continue to adopt laws, regulations or directives that affect digital asset networks (including the Bitcoin
network), the digital asset markets (including the bitcoin market), and their users, particularly digital asset exchanges and service
providers that fall within such jurisdictions&#8217; regulatory scope. A number of foreign jurisdictions have recently taken regulatory
action aimed at digital asset activities. Foreign laws, regulations or directives may conflict with those of the United States and may
negatively impact the acceptance of one or more digital assets (including bitcoin) by users, merchants and service providers outside
the United States and may therefore impede the growth or sustainability of the digital asset economy in the European Union, China, Japan,
Russia and the United States and globally, or otherwise negatively affect the value of bitcoin. The effect of any future regulatory change
on the Trust or bitcoin is impossible to predict, but such change could be adverse to the Trust and the value of the Shares.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>The Sponsor may need to find and appoint a replacement custodian
quickly, which could pose a challenge to the safekeeping of the Trust&#8217;s Bitcoin. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The Trust is dependent on the Bitcoin Custodian
to operate. The Bitcoin Custodian performs essential functions in terms of safekeeping the Trust&#8217;s bitcoin in the Vault Balance
and facilitates the selling of bitcoin by the Trust to pay the Sponsor&#8217;s Fee and, to the extent applicable, other Trust expenses,
and in extraordinary circumstances, to liquidate the Trust. <FONT STYLE="font-size: 10pt">The Sponsor could decide to replace the </FONT>Bitcoin
<FONT STYLE="font-size: 10pt">Custodian as the custodian of the Trust&#8217;s bitcoin</FONT> or the Bitcoin Custodian could experience
issues, exit the business or terminate its relationship with the Trust. <FONT STYLE="font-size: 10pt">Transferring maintenance responsibilities
of the Trust&#8217;s account with the</FONT> Bitcoin <FONT STYLE="font-size: 10pt">Custodian to another party will likely be complex
and could subject the Trust&#8217;s bitcoin to the risk of loss during the transfer, which could have a negative impact on the performance
of the Shares or result in loss of the Trust&#8217;s assets. </FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><FONT STYLE="font-size: 10pt">The Sponsor may
not be able to find </FONT>another <FONT STYLE="font-size: 10pt">party willing to serve as the custodian under the same terms as the
current Custodian Agreement. To the extent that Sponsor is not able to find a suitable party willing to serve as the custodian, the Sponsor
may be required to terminate the Trust and liquidate the Trust&#8217;s bitcoin. In addition, to the extent that the Sponsor finds a suitable
party but must enter into a modified Custodian Agreement that is less favorable for the Trust or Sponsor, the value of the Shares could
be adversely affected. </FONT></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">On March 22, 2023, the ultimate parent of the
Bitcoin Custodian (such parent, &#8220;Coinbase Global&#8221; and together with the other named subsidiary of Coinbase Global, the &#8220;Relevant
Coinbase Entities&#8221;) received a &#8220;Wells Notice&#8221; from the SEC staff stating that the SEC staff made a &#8220;preliminary
determination&#8221; to recommend that the SEC file an enforcement action against the Relevant Coinbase Entities alleging violations
of the federal securities laws, including the Exchange Act and the Securities Act. According to Coinbase Global&#8217;s public reporting
company disclosure, based on discussions with the SEC staff, the Relevant Coinbase Entities believe these potential enforcement actions
would relate to aspects of the Relevant Coinbase Entities&#8217; Coinbase Prime service, spot market, staking service Coinbase Earn,
and Coinbase Wallet,and the potential civil action may seek injunctive relief, disgorgement, and civil penalties. On June 6, 2023, the
SEC filed a complaint against the Relevant Coinbase Entities in federal district court in the Southern District of New York, alleging,
inter alia: (i) that Coinbase Inc. has violated the Exchange Act by failing to register with the SEC as a national securities exchange,
broker-dealer, and clearing agency, in connection with activities involving certain identified digital assets that the SEC&#8217;s complaint
alleges are securities, (ii) that Coinbase Inc. has violated the Securities Act by failing to register with the SEC the offer and sale
of its staking program, and (iii) that Coinbase Global is jointly and severally liable as a control person under the Exchange Act for
Coinbase Inc.&#8217;s violations of the Exchange Act to the same extent as Coinbase Inc. The SEC&#8217;s complaint against the Relevant
Coinbase Entities does not allege that bitcoin is a security nor does it allege that Coinbase Inc&#8217;s activities involving bitcoin
caused the alleged registration violations, and the Bitcoin Custodian was not named as a defendant. The SEC&#8217;s complaint seeks a
permanent injunction against the Relevant Coinbase Entities to prevent them from violations of the Exchange Act or Securities Act, disgorgement,
civil monetary penalties, and such other relief as the court deems appropriate or necessary. While the Bitcoin Custodian is not named
in the complaint, if Coinbase Global, as the ultimate parent of the Bitcoin Custodian, is required, as a result of a judicial determination,
or could choose, to restrict or curtail the services its subsidiaries provide to the Trust, or its financial condition is negatively
affected, it could negatively affect the Trust&#8217;s ability to operate.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> The Sponsor may not be able to find a party willing to serve as
the custodian of the Trust&rsquo;s bitcoin or as the Trust&rsquo;s prime broker under the same terms as the current Custodian Agreement
or agreement with prime broker or at all. To the extent that Trustee is not able to find a suitable party willing to serve as the custodian
or prime broker, it may be necessary to terminate the Trust and liquidate the Trust&rsquo;s bitcoin. In addition, to the extent that
the Sponsor finds a suitable party but must enter into a modified Custodian Agreement or modified agreement with prime broker that is
less favorable for the Trust, the value of the Shares could be adversely affected. If the Trust is unable to find a replacement prime
broker, its operations could be adversely affected. </P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> <B><I>The Trust Administrator calculates the NAV using the value
of the bitcoin holdings and bitcoin holdings per Share, and any errors, discontinuance or changes in such valuation calculations may
have an adverse effect on the value of the Shares.</I></B> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"> The Trust Administrator will calculate the
Trust&rsquo;s NAV using the value of the Trust&rsquo;s bitcoin holdings and bitcoin holdings per Share on a daily basis as soon as practicable
after 4:00 p.m. EST on each business day. The NAV is generally calculated utilizing the Reference Rate, calculated at 4:00 p.m. EST on
such day. To the extent that the bitcoin holdings or bitcoin holdings per Share are incorrectly calculated, the Trust Administrator may
not be liable for any error and such misreporting of valuation data could adversely affect the value of the Shares. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> <B><I>The value of the Shares will be adversely affected if the
Trust is required to indemnify the Sponsor, the Trustee, the Trust Administrator Transfer Agent, the Bitcoin Custodian or the Cash Custodian
under the Trust documents.</I></B> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"> Under the Trust documents, each of the Sponsor,
the Trustee, the Trust Administrator, the Transfer Agent, the Bitcoin Custodian and the Cash Custodian has a right to be indemnified
by the Trust for certain liabilities or expenses that it incurs without gross negligence, bad faith and/or willful misconduct on its
part. Therefore, such obligation(s) may require that the assets of the Trust be sold in order to cover losses or liability suffered by
it. Any sale of that kind would reduce the bitcoin holdings of the Trust and the value of the Shares. </P>

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

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Intellectual property rights claims may adversely affect the
Trust and the value of the Shares. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The Sponsor is not aware of any intellectual
property rights claims that may prevent the Trust from operating and holding bitcoin. However, third parties may assert intellectual
property rights claims relating to the operation of the Trust and the mechanics instituted for the investment in, holding of and transfer
of bitcoin. Regardless of the merit of an intellectual property or other legal action, any legal expenses to defend or payments to settle
such claims would be extraordinary expenses that would be borne by the Trust through the sale or transfer of its bitcoin. Additionally,
a meritorious intellectual property rights claim could prevent the Trust from operating and force the Sponsor to terminate the Trust
and liquidate its bitcoin. As a result, an intellectual property rights claim against the Trust could adversely affect the value of the
Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Shareholders could incur a tax liability without an associated
distribution of the Trust. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><FONT STYLE="font-size: 10pt">In the normal course
of business, it is possible that the Trust could incur a taxable gain in connection with the sale of bitcoin (including deemed sales
of bitcoin as a result of the Trust using bitcoin to pay its expenses) that is otherwise not associated with a distribution to Shareholders</FONT>.,
In the event that <FONT STYLE="font-size: 10pt">purchases and sales of bitcoin occur, Shareholders may be subject to tax due to the grantor
trust status of the Trust even though there is not a corresponding distribution from the Trust. </FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>The tax treatment of bitcoin and transactions involving bitcoin
for United States federal income tax purposes may change. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><FONT STYLE="font-size: 10pt">Current IRS guidance
indicates that bitcoin should be treated as property for U.S. federal income tax purposes and that transactions involving the exchange
of bitcoin in return for goods and services should be treated as barter exchanges. Such guidance allows transactions in bitcoin </FONT>held
for investment <FONT STYLE="font-size: 10pt">to qualify for beneficial capital gains treatment. However, because bitcoin is a new technological
innovation, the U.S. federal income tax treatment of an investment in bitcoin or in transactions relating to investments in bitcoin,
including without limitation the tax treatment of a fork, may evolve and change from those described in this prospectus, possibly with
retroactive effect. Any such change in the U.S. federal income tax treatment of bitcoin may have a negative effect on prices of bitcoin
and may adversely affect the value of the Shares. In this regard, the IRS has indicated that it has made it a priority to issue additional
guidance related to the taxation of virtual currency transactions, such as transactions involving bitcoin. While it has started to issue
such additional guidance, whether any future guidance will adversely affect the U.S. federal income tax treatment of an investment in
bitcoin or in transactions relating to investments in bitcoin is unknown. Moreover, future developments that may arise with respect to
digital currencies may increase the uncertainty with respect to the treatment of digital currencies for U.S. federal income tax purposes.
</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>The tax treatment of bitcoin and transactions involving bitcoin
for state and local tax purposes is not settled. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Because bitcoin is a new technological innovation,
the tax treatment of bitcoin for state and local tax purposes, including without limitation state and local income and sales and use
taxes, is not settled. It is uncertain what guidance, if any, on the treatment of bitcoin for state and local tax purposes may be issued
in the future. A state or local government authority&#8217;s treatment of bitcoin may have negative consequences, including the imposition
of a greater tax burden on investors in bitcoin or the imposition of a greater cost on the acquisition and disposition of bitcoin generally.
Any such treatment may have a negative effect on prices of bitcoin and may adversely affect the value of the Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>A hard &#8220;fork&#8221; of the Bitcoin Blockchain could result
in Shareholders incurring a tax liability. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><FONT STYLE="font-size: 10pt">If a hard fork
occurs in the Bitcoin Blockchain, the Trust could hold both the original bitcoin and the alternative new bitcoin. The IRS has held that
a hard fork resulting in the creation of new units of cryptocurrency is a taxable event giving rise to ordinary income. </FONT>The Trust
shall treat whichever asset the Sponsor determines is not bitcoin as Incidental Rights or IR Virtual Currency. <FONT STYLE="font-size: 10pt">Moreover,
the Trust Agreement requires that, if such a transaction occurs, the Trust will as soon as possible direct the </FONT>Bitcoin <FONT STYLE="font-size: 10pt">Custodian
to distribute </FONT>such Incidental Rights or IR Virtual Currency, including selling Incidental Rights <FONT STYLE="font-size: 10pt">and</FONT>/or
IR Virtual Currency <FONT STYLE="font-size: 10pt">and </FONT>distributing <FONT STYLE="font-size: 10pt">the</FONT> cash <FONT STYLE="font-size: 10pt">proceeds
to </FONT>Shareholders, or distributing Incidental Rights and/or IR Virtual Currency in-kind to the <FONT STYLE="font-size: 10pt">Shareholders
</FONT>or to an agent acting on behalf of the Shareholders for sale by such agent. <FONT STYLE="font-size: 10pt">The receipt, distribution
and/or sale of the </FONT>IR Virtual Currency <FONT STYLE="font-size: 10pt">may cause Shareholders to incur a federal, state, local,
or foreign tax liability. Any tax liability could adversely impact an investment in the Shares and may require Shareholders to prepare
and file tax returns. </FONT></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">&#160;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> <B><I>The Exchange on which the Shares will be listed may halt
trading in the Trust&rsquo;s Shares, which would adversely impact a Shareholder&rsquo;s ability to sell Shares.</I></B> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"> The Trust&rsquo;s Shares will be listed for
trading on the Exchange under the market symbol &ldquo;BTCW.&rdquo; Trading in Shares may be halted due to market conditions or, in light
of the Exchange rules and procedures, for reasons that, in the view of the Exchange, make trading in Shares inadvisable. In addition,
trading is subject to trading halts caused by extraordinary market volatility pursuant to &ldquo;circuit breaker&rdquo; rules that require
trading to be halted for a specified period based on a specified market decline. Additionally, there can be no assurance that the requirements
necessary to maintain the listing of the Trust&rsquo;s Shares will continue to be met or will remain unchanged. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>The liquidity of the Shares may also be affected by the withdrawal
from participation of Authorized Participants or other market participants, which could adversely affect the market price of the Shares.
</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The Trust has a limited number of financial institutions
that may act as Authorized Participants. In addition, there may be a limited number of market makers and/or liquidity providers in the
marketplace. In the event that one or more Authorized Participants or market makers that have substantial interests in the Trust&#8217;s
Shares withdraw, &#8220;step away&#8221; from participation, or have a business disruption or otherwise become unable or unwilling to
participate, in the purchase (creation) or sale (redemption) of the Trust&#8217;s Shares, the liquidity of the Shares will likely decrease,
which could adversely affect the market price of the Shares and result in Shareholders incurring a loss on their investment.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>The market infrastructure of the bitcoin spot market could result
in the absence of active Authorized Participants able to support the trading activity of the Trust. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Bitcoin is extremely volatile, and concerns exist
about the stability, reliability and robustness of many bitcoin exchanges. In a highly volatile market, or if one or more bitcoin exchanges
faces an issue, it could be extremely challenging for any Authorized Participant to provide continuous liquidity in the Shares. There
can be no guarantee that the Sponsor will be able to find an Authorized Participant to actively and continuously support the Trust.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Bitcoin exchanges are not subject to same regulatory oversight
as traditional equity exchanges, which could negatively impact the ability of Authorized Participants to implement arbitrage mechanisms.
</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The trading for bitcoin occurs on multiple trading
venues that have various levels and types of regulation, but are not regulated in the same manner as traditional stock and bond exchanges.
If these bitcoin exchanges do not operate smoothly or face technical, security or regulatory issues, that could impact the ability of
Authorized Participants to make markets in the Shares. In such an event, trading in the Shares could occur at a material premium or discount
to the NAV.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Shareholders that are not Authorized Participants may only purchase
or sell their Shares in secondary trading markets, and the conditions and operational risks associated with trading in secondary markets
may adversely affect Shareholders&#8217; investment in the Shares. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Only Authorized Participants may create or redeem
Baskets. All other Shareholders that desire to purchase or sell Shares must do so through the Exchange or in other markets, if any, in
which the Shares may be traded. Shares may trade at a premium or discount to the NAV per Share.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Investors in Shares should note that while transferring
Shares, specific risks should be noted. To generally initiate a transfer, a transaction must be signed using the private key of the asset
holder. The private key should remain secret at all times. If the private key is not secured when in use, an asset holder risks their
private key being obtained by third parties, including criminals, and risk losing all or some of their investment.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><FONT STYLE="font-size: 10pt">Exchanges are a
popular venue for bitcoin investors to store assets and facilitate transactions with other participants. As with any financial transaction,
investors in Shares need to ensure adequate controls are in place to authenticate themselves on these platforms. Failure to follow security
best practices, including multifactor authentication (MFA), well-formed strong passwords and checks on the validity of exchange URLs
may risk unauthori</FONT>z<FONT STYLE="font-size: 10pt">ed transfer and loss of assets.</FONT></P>

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

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<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; text-align: left; margin-top: 0pt; margin-right: 0; margin-bottom: 0pt"><FONT STYLE="text-decoration: none">&#160;</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 2pt"><FONT STYLE="text-decoration: none">As the Sponsor
and its management have limited history of operating investment vehicles like the Trust, their experience may be inadequate or unsuitable
to manage the Trust.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><FONT STYLE="text-decoration: none">The past
performances of the Sponsor&#8217;s management or affiliates of the Sponsor in other investment vehicles are no indication of their ability
to manage an investment vehicle such as the Trust. If the experience of the Sponsor and its management is inadequate or unsuitable to
manage an investment vehicle such as the Trust, the operations of the Trust may be adversely affected. Furthermore, management of the
Sponsor is currently engaged in the management of, or are otherwise involved with the operations of, other investment vehicles which
could divert their attention and resources.</FONT></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>The Sponsor is leanly staffed and relies heavily on key personnel.
</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The Sponsor is leanly staffed and relies heavily
on key personnel to manage its activities. These key personnel intend to allocate their time managing the Trust in a manner that they
deem appropriate. If such key personnel were to leave or be unable to carry out their present responsibilities, it may have an adverse
effect on the management of the Sponsor.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>The Trust is new, and if it is not profitable, the Trust may
terminate and liquidate at a time that is disadvantageous to Shareholders. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The Trust is new. If the Trust does not attract
sufficient assets to remain viable, then the Trust could be terminated and liquidated at the direction of the Sponsor. Termination and
liquidation of the Trust could occur at a time that is disadvantageous to Shareholders. When the Trust&#8217;s assets are sold as part
of the Trust&#8217;s liquidation, the resulting proceeds distributed to Shareholders may be less than those that may be realized in a
sale outside of a liquidation context. Shareholders may be adversely affected by redemption or creation orders that are subject to postponement,
suspension or rejection under certain circumstances.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Shareholders do not have the rights enjoyed by investors in
certain other vehicles and may be adversely affected by a lack of statutory rights and by limited voting and distribution rights. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The Shares have limited voting and distribution
rights. For example, Shareholders do not have the right to elect directors, the Trust may enact splits or reverse splits without Shareholder
approval and the Trust is not required to pay regular distributions, although the Trust may pay distributions at the discretion of the
Sponsor.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 10pt"><B><I>An investment in the Trust may
be adversely affected by competition from other </I></B></FONT><B><I>ETFs focused on bitcoin. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"> If the SEC were to approve other bitcoin ETFs
in addition to the Trust, the Trust could fail to acquire substantial assets, initially or at all. The Trust&rsquo;s bitcoin ETF competitors
may also charge a substantially lower fee than the Sponsor&rsquo;s Fee in order to achieve initial market acceptance and scale. Accordingly,
the Trust&rsquo;s bitcoin ETF competitors may commercialize a competing bitcoin ETF more rapidly or effectively than the Trust, which
could adversely affect the Trust&rsquo;s competitive position and the likelihood that the Trust will achieve initial market acceptance,
and could have a detrimental effect on the scale and sustainability of the Trust. If the Trust fails to achieve sufficient scale due
to competition, the Sponsor may have difficulty raising approximately $200 million in assets which would be sufficient to cover the costs
associated with launching and maintaining the Trust and such shortfalls could impact the Sponsor&rsquo;s ability to properly invest in
robust ongoing operations and controls of the Trust to minimize the risk of operating events, errors, or other forms of losses to the
Shareholders. In addition, the Trust may also fail to attract adequate liquidity in the secondary market due to such competition, resulting
in a sub-standard number of Authorized Participants willing to make a market in the Shares, which in turn could result in a significant
premium or discount in the Shares for extended periods and the Trust&rsquo;s failure to reflect the performance of the price of bitcoin. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>An investment in the Trust may be adversely affected by competition
from other <FONT STYLE="font-size: 10pt">investment vehicles focused on bitcoin or other cryptocurrencies. </FONT></I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The Trust will compete with direct investments
in bitcoin, other digital assets and other potential financial vehicles, possibly including securities backed by or linked to cryptocurrency
and other investment vehicles that <FONT STYLE="font-size: 10pt">focus on other digital assets. Market and financial conditions, and
other conditions beyond the Trust&#8217;s control, may make it more attractive to invest in other vehicles, which could adversely affect
the performance of the Trust. </FONT>In addition, a failure of any competitive bitcoin ETF or similar trust or other instrument could
have negative consequences with respect to the price of bitcoin generally or interest in bitcoin ETFs.</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">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Shareholders cannot be assured of the Sponsor&#8217;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">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><FONT STYLE="font-size: 10pt">Shareholders cannot
be assured that the Sponsor will be able to continue to service the Trust for any length of time. If the Sponsor discontinues its activities
on behalf of the Trust, the Trust may be adversely affected, as there may be no entity servicing the Trust for a period of time. Such
an event could result in termination of the Trust</FONT> and a liquidation of its bitcoin.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Shareholders may be adversely affected by creation or redemption
orders that are subject to postponement, suspension or rejection under certain circumstances. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><FONT STYLE="font-size: 10pt">The Trust may,
in its discretion, suspend the right of creation or redemption or may postpone the redemption or purchase settlement date, for (1)&#160;any
period during which an emergency exists as a result of which the fulfillment of a purchase order or the redemption distribution is not
reasonably practicable, or (2)&#160;such other period as the Sponsor determines to be necessary for the protection of the Shareholders
of the Trust</FONT> or if it is not feasible for Shares to be delivered or the redemption distribution to be made. <FONT STYLE="font-size: 10pt">In
addition, the Trust may reject a redemption order if the order is not in proper form as described in the Authorized Participant Agreement
or if the fulfillment of the order might be unlawful</FONT> as determined by the Sponsor or its counsel. <FONT STYLE="font-size: 10pt">Any
such postponement, suspension or rejection could adversely affect a redeeming Authorized Participant. Suspension of creation privileges
may adversely impact how the Shares are traded and arbitraged on the secondary market, which could cause them to trade at levels materially
different (premiums and discounts) from the fair value of their underlying holdings. </FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Shareholders may be adversely affected by an overstatement or
understatement of the NAV calculation of the Trust due to the valuation method employed on the date of the NAV calculation. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">In certain circumstances, the Trust&#8217;s bitcoin
investments may be valued using techniques other than reliance on the price established by the Reference Rate. The value established
by using the Reference Rate may be different from what would be produced through the use of another methodology. Bitcoin or other digital
asset investments that are valued using techniques other than those employed by the Reference Rate, including bitcoin investments that
are &#8220;fair valued,&#8221; may be subject to greater fluctuation in their value from one day to the next than would be the case if
market-price valuation techniques were used.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>The liability of the Sponsor and the Trustee is limited, and
the value of the Shares will be adversely affected if the Trust is required to indemnify the Trustee or the Sponsor. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Under the Trust Agreement, the Trustee and the
Sponsor are not liable, and have the right to be indemnified, for any liability or expense incurred absent gross negligence or willful
misconduct on the part of the Trustee or the Sponsor or breach by the Sponsor of the Trust Agreement, as the case may be. As a result,
the Sponsor may require the assets of the Trust to be sold in order to cover losses or liability suffered by it or by the Trustee. Any
sale of that kind would reduce the NAV of the Trust and the value of its Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><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">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"> 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 Fee or
sells bitcoins for expenses such as extraordinary 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 Fee or decrease the Sponsor-paid expenses which
could result in a greater decline in the number of bitcoins that the Trust holds. Such changes could occur if the expenses of the Trust
materially increase. For example, while the current Sponsor Fee is a unitary fee in which the Sponsor agrees to pay all the fee of the
Trust&rsquo;s service providers (except for extraordinary expenses), the Sponsor may unwind part of this unitary fee and have a service
providers&rsquo; (e.g., custodian&rsquo;s fee) charged directly to the Trust. In that case, the Sponsor would provide 60 days&rsquo;
advance notice to Shareholders via a posting on the Trust&rsquo;s website or prospectus supplement or through a current report on Form
8-K or in the Trust&rsquo;s annual or quarterly reports. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Third parties may infringe upon or otherwise violate intellectual
property rights or assert that the Sponsor has infringed or otherwise violated their intellectual property rights, which may result in
significant costs and diverted attention. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">It is possible that third parties might utilize
the Trust&#8217;s intellectual property or technology, including the use of its business methods and trademarks, without permission.
However, the Trust may not have adequate resources to implement procedures for monitoring unauthorized uses of their trademarks, proprietary
software and other technology. Also, third parties may independently develop business methods, trademarks or proprietary software and
other technology similar to that of the Trust or claim that the Trust has violated their intellectual property rights, including their
copyrights, trademark rights, trade names, trade secrets and patent rights. As a result, the Trust may have to litigate in the future
to protect its trade secrets, determine the validity and scope of other parties&#8217; proprietary rights, defend itself against claims
that it has infringed or otherwise violated other parties&#8217; rights, or defend itself against claims that its rights are invalid.
Any litigation of this type, even if the Trust is successful and regardless of the merits, may result in significant costs, divert its
resources from the Trust, or require it to change its proprietary software and other technology or enter into royalty or licensing agreements.</P>

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

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Due to the increased use of technologies, intentional and unintentional
cyber-attacks pose operational and information security risks. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"> With the increased use of technologies such
as the internet and the dependence on computer systems to perform necessary business functions, the Trust is susceptible to operational
and information security risks. In general, cyber incidents can result from deliberate attacks or unintentional events. Cyber-attacks
include, but are not limited to, gaining unauthorized access to digital systems for purposes of misappropriating assets or sensitive
information, corrupting data, or causing operational disruption. Cyber-attacks may also be carried out in a manner that does not require
gaining unauthorized access, such as causing denial-of-service attacks on websites. Cyber security failures or breaches of one or more
of the Trust&rsquo;s service providers (including, but not limited to, the Sponsor, Trust Administrator, Transfer Agent, the Bitcoin
Custodian and the Cash Custodian), as well as Authorized Participants and market makers, have the ability to cause disruptions and impact
business operations, potentially resulting in financial losses, the inability of the Shareholders to transact business, violations of
applicable privacy and other laws, regulatory fines, penalties, reputational damage, reimbursement or other compensation costs, and/or
additional compliance costs. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">In addition, substantial costs may be incurred
in order to prevent any cyber incidents in the future. The Trust and its Shareholders could be negatively impacted as a result. While
the Trust has established business continuity plans, there are inherent limitations in such plans.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>The Trust and its service providers are subject to certain operational
risks. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"> The Trust and its service providers, including
the Sponsor, Trust Administrator, Transfer Agent, Bitcoin Custodian and Cash Custodian (as well as Authorized Participants and market
makers) may experience disruptions that arise from human error, processing and communications errors, counterparty or third-party errors,
or technology or systems failures, any of which may have an adverse impact on the Trust. Although the Trust and its service providers
seek to mitigate these operational risks through their internal controls and operational risk management processes, these measures may
not identify or may be inadequate to address all such risks. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><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">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">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&#8217;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)&#160;are not affiliates of one another and (ii)&#160;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">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Due to this additional requirement, a Shareholder
attempting to bring or maintain a derivative action in the name of the Trust will be required to locate other Shareholders with which
it is not affiliated and that have sufficient Shares to meet the 10.0% threshold based on the number of Shares outstanding on the date
the claim is brought and thereafter throughout the duration of the action, suit or proceeding. This may be difficult and may result in
increased costs to a Shareholder attempting to seek redress in the name of the Trust in court. Moreover, if Shareholders bringing a derivative
action, suit or proceeding pursuant to this provision of the Trust Agreement do not hold 10.0% of the outstanding Shares on the date
such an action, suit or proceeding is brought, or such Shareholders are unable to maintain Share ownership meeting the 10.0% threshold
throughout the duration of the action, suit or proceeding, such Shareholders&#8217; derivative action may be subject to dismissal. As
a result, the Trust Agreement limits the likelihood that a Shareholder will be able to successfully assert a derivative action in the
name of the Trust, even if such Shareholder believes that he or she has a valid derivative action, suit or other proceeding to bring
on behalf of the Trust.</P>

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

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>COVID-19 and measures intended to prevent its spread could have
a material adverse effect on the Trust&#8217;s business and financial condition. </I></B></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The impact of the COVID-19 pandemic has adversely
affected the economies of many nations and the entire global economy as well as individual issuers, assets and capital markets and could
continue to, and other future public health emergencies could, have serious negative effects on social, economic and financial systems,
including significant uncertainty and volatility in the digital asset markets. For example, digital asset prices, including bitcoin,
decreased significantly in the first quarter of 2020 amidst broader market declines as a result of the COVID-19 outbreak.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Future public health emergencies could result
in an increase of the costs of the Trust and affect liquidity in the digital asset market, as well as the correlation between the price
of the Shares and the net asset value of the Trust, any of which could adversely affect the value of the Shares. In addition, future
public health emergencies could impair the information technology and other operational systems upon which the Trust&#8217;s service
providers, including the Sponsor, the Trustee, the Delaware Trustee and the Custodians, rely, and could otherwise disrupt the ability
of employees of the Trust&#8217;s service providers to perform essential tasks on behalf of the Trust. Governmental and quasi-governmental
authorities and regulators throughout the world have at times responded to major economic disruptions with a variety of fiscal and monetary
policy changes, including, but not limited to, direct capital infusions into companies and other issuers, new monetary tools and lower
interest rates. An unexpected or sudden reversal of these policies, or the ineffectiveness of these policies, is likely to increase volatility
in the digital asset markets, which could adversely affect the value of bitcoin and the price of the Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"> Further, future public health emergencies
could also interfere with the operations of the Reference Rate or the Benchmark Administrator, which the Sponsor uses to value the bitcoin
held by the trust calculate the net asset value of the Trust. The COVID-19 pandemic or other future public health emergencies could also
cause the closure of futures exchanges, which could eliminate the ability of Authorized Participants to hedge purchases of Baskets, increasing
trading costs of Shares and resulting in a sustained premium or discount in the Shares. Each of these outcomes would negatively impact
the Trust. </P>

<P STYLE="margin: 0">&#160;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">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 &#8220;bitcoin exchange&#8221; market where bitcoin can be bought, held and sold,
the bitcoin OTC market and bitcoin mining. In this prospectus, Bitcoin with an upper case &#8220;B&#8221; 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 &#8220;b&#8221; (except at the beginning
of sentences or paragraph sections, as below).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 24.45pt"><B>Bitcoin </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Bitcoin is a digital asset that can be transferred
among participants on the Bitcoin network on a peer-to-peer basis via the Internet. Unlike other means of electronic payments, bitcoin
can be transferred without the use of a central administrator or clearing agency. Because a central party is not necessary to administer
bitcoin transactions or maintain the bitcoin ledger, the term decentralized is often used in descriptions of bitcoin.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 24.45pt"><B>Bitcoin Network </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Bitcoin was first described in a white paper
released in 2008 and published under the name &#8220;Satoshi Nakamoto.&#8221; 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">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><FONT STYLE="font-size: 10pt">The first step
in using bitcoin for transactions is</FONT> generally <FONT STYLE="font-size: 10pt">to download specialized software referred to as a
&#8220;bitcoin wallet.&#8221; A user&#8217;s bitcoin wallet can run on a computer or smartphone, and can be used both to </FONT>&#8220;<FONT STYLE="font-size: 10pt">send</FONT>&#8221;
<FONT STYLE="font-size: 10pt">and to </FONT>&#8220;<FONT STYLE="font-size: 10pt">receive</FONT>&#8221; <FONT STYLE="font-size: 10pt">bitcoin
</FONT>by attributing a certain amount of bitcoin to the user&#8217;s wallet address. <FONT STYLE="font-size: 10pt">Within a bitcoin
wallet, a user can</FONT> sometimes <FONT STYLE="font-size: 10pt">generate one or more unique &#8220;bitcoin addresses,&#8221; which
are conceptually similar to bank account numbers on the Bitcoin Blockchain and are associated with a pair of public and private keys.
After establishing a bitcoin address, a user can send or receive bitcoin from his or her bitcoin address to another user&#8217;s address
using the public and private keys. Sending bitcoin from one bitcoin address to another is similar in concept to sending a bank wire from
one person&#8217;s bank account to another person&#8217;s bank account. </FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The amount of bitcoin associated with each bitcoin
address is listed in a public ledger, referred to as a &#8220;blockchain.&#8221; Copies of the Bitcoin Blockchain exist on thousands
of computers on the Bitcoin network throughout the Internet. A user&#8217;s bitcoin wallet will either contain a copy of the Bitcoin
Blockchain or be able to connect with another computer that holds a copy of the Bitcoin Blockchain.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">When a bitcoin user wishes to transfer bitcoin
to another user, the sender must first request a bitcoin address from the recipient. The sender then uses his or her bitcoin wallet software
to create a data packet containing the proposed addition (often referred to as a &#8220;transaction&#8221;) to the Bitcoin Blockchain.
The proposed transaction would reduce the sender&#8217;s address and increase the recipient&#8217;s address by the amount of bitcoin
desired to be transferred, and is sent on a peer-to-peer basis to other computers participating in the Bitcoin network.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 24.45pt"><B>Bitcoin Protocol </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"> Bitcoin is an open-source project with no
official company or group that controls the Bitcoin network, and anyone can review the underlying code and suggest changes. There are,
however, a number of individual developers that regularly contribute to a specific distribution of Bitcoin software known as the &ldquo;Bitcoin
Core,&rdquo; and who loosely oversee the development of its source code. There are many other compatible versions of Bitcoin software,
but Bitcoin Core is the most widely adopted and currently provides the de facto standard for the Bitcoin protocol. The core developers
are able to access, and can alter, the Bitcoin network source code and, as a result, they are responsible for quasi-official releases
of updates and other changes to the Bitcoin network&rsquo;s source code. However, because Bitcoin has no central authority, the release
of updates to the Bitcoin network&rsquo;s source code by the core developers does not guarantee that the updates will be automatically
adopted by the other participants in the Bitcoin network. Users and miners must accept any changes made to the Bitcoin source code by
downloading the proposed modification of the Bitcoin network&rsquo;s source code. A modification of the Bitcoin network&rsquo;s source
code is effective only with respect to those Bitcoin users and miners who choose to download it. If a modification is accepted by only
a percentage of users and miners, a division in the Bitcoin network will occur such that one network will run the pre-modification source
code and the other network will run the modified source code. Such a division is known as a &ldquo;fork.&rdquo; See &ldquo;Risk Factors&mdash;Risks
Associated with bitcoin and the Bitcoin network&mdash;A temporary or permanent &ldquo;fork&rdquo; of the Bitcoin Blockchain could adversely
affect an investment in the Trust.&rdquo; Consequently, as a practical matter, a modification to the source code becomes part of the
Bitcoin network only if accepted by participants collectively having most of the processing power on the Bitcoin network. There have
been several prominent forks in the Bitcoin network, including forks resulting in the creation of Bitcoin Cash (August 1, 2017), Bitcoin
Gold (October 24, 2017) and Bitcoin SegWit2X (December 28, 2017), among others. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</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">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"> 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. We refer to the right to receive any such benefit as an &ldquo;Incidental Right&rdquo; and any
such virtual currency acquired through an Incidental Right as &ldquo;IR Virtual Currency.&rdquo; The Sponsor has the right, in the Sponsor&rsquo;s
sole discretion, to determine: (i) with respect to any fork, airdrop or similar event, what action the Trust shall take, and (ii) what
action to take in connection with the Trust&rsquo;s entitlement to or ownership of Incidental Rights or any IR Virtual Currency. The
Sponsor intends to evaluate each fork, airdrop or similar occurrence on a case-by-case basis in consultation with the Trust&rsquo;s legal
advisors, tax consultants, the Delaware Trustee, and the Bitcoin Custodian. The Sponsor is under no obligation to realize any economic
benefit from any Incidental Rights or IR Virtual Currency on behalf 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; text-indent: 24.5pt"> 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 Shares in the Trust, from any such Incidental Rights or IR Virtual Currency. For instance, the Bitcoin Custodian may not
agree to provide access to Incidental Rights or IR Virtual Currency. In addition, the Sponsor may determine that there is no safe or
practical way to custody the IR Virtual Currency, or that trying to do so may pose an unacceptable risk to the Trust&rsquo;s holdings
in Bitcoin, or that the costs of taking possession and/or maintaining ownership of the IR Virtual Currency exceed the benefits of owning
the IR Virtual Currency. Additionally, laws, regulation or other factors may prevent Shareholders from benefitting from the Incidental
Right or IR Virtual Currency even if there is a safe and practical way to custody and secure the IR Virtual Currency. For example, it
may be illegal to sell or otherwise dispose of the Incidental Right or IR Virtual Currency, or there may not be a suitable market into
which the Incidental Right or IR Virtual Currency can be sold (immediately after the fork or airdrop, or ever). The Sponsor may also
determine, in consultation with its legal advisers, that the Incidental Right or IR Virtual Currency is, or is likely to be deemed, a
security under federal or state securities laws, or poses other legal or regulatory risks. In determining whether the Incidental Rights
or IR Virtual Currency is, or may be, a security under federal securities laws, the Sponsor takes into account a number of factors, including
the definition of a &ldquo;security&rdquo; under Section 2(a)(1) of the Securities Act and Section 3(a)(10) of the Exchange Act, SEC
v. W.J. Howey Co., 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. For these or other reasons, the Sponsor may determine, in its discretion, to cause the Trust to irrevocably and permanently abandon,
for no consideration, such Incidental Right or IR Virtual Currency. </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: 24.5pt"> If the Sponsor determines to attempt to claim
the Incidental Rights or IR Virtual Currency, it may elect to sell such assets for cash and distribute the cash proceeds (net of expenses
and any applicable withholding taxes) or distribute them in-kind to DTC, and registered holders of Shares are entitled to receive such
distributions in proportion to the number of shares owned. There can be no assurance that any of these courses of action will prove to
be successful, nor can there be any assurance as to the prices for any Incidental Rights or IR Virtual Currency that the Sponsor or agent
may realize. The value of the Incidental Rights or IR Virtual Currency may increase or decrease before or after any sale by the Sponsor
or the agent. </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: 24.5pt"> Although the Sponsor is under no obligation
to do so, an inability to realize the economic benefit of a hard fork or airdrop could adversely affect the value of the Shares. Investors
who prefer to have a greater degree of control over events such as forks, airdrops, and similar events, and any assets made available
in connection with each, should consider investing in bitcoin directly rather than purchasing Shares. In the event that the Trust&rsquo;s
or Sponsor&rsquo;s policy with respect to forked asset changes, the Shareholders will be given 60 days&rsquo; advance notice via a posting
on the Trust&rsquo;s website or prospectus supplement or through a current report on Form 8-K in the Trust&rsquo;s annual or quarterly
reports. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 24.45pt"><B>Bitcoin Transactions </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">A bitcoin transaction is similar in concept to
an irreversible digital check. The transaction contains the sender&#8217;s bitcoin address, the recipient&#8217;s bitcoin address, the
amount of bitcoin to be sent, a transaction fee and the sender&#8217;s digital signature. The sender&#8217;s use of his or her digital
signature enables participants on the Bitcoin network to verify the authenticity of the bitcoin transaction.</P>

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

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">A user&#8217;s digital signature is generated
via usage of the user&#8217;s so-called &#8220;private key,&#8221; one of two numbers in a so-called cryptographic &#8220;key pair.&#8221;
A key pair consists of a &#8220;public key&#8221; and its corresponding private key, both of which are lengthy alphanumeric codes, derived
together and possessing a unique relationship.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Public keys are associated with bitcoin addresses
that are publicly known and can accept a bitcoin transfer. Private keys are used to sign transactions that initiate the transfer of bitcoin
from a sender&#8217;s bitcoin address to a recipient&#8217;s bitcoin address. Only the holder of the private key associated with a particular
bitcoin address can digitally sign a transaction proposing a transfer of bitcoin from that particular bitcoin address.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><FONT STYLE="font-size: 10pt">A user&#8217;s
</FONT>public key <FONT STYLE="font-size: 10pt">bitcoin address may be safely distributed, but a user&#8217;s private key must be kept
in accordance with appropriate controls and procedures to ensure it is used only for legitimate and intended transactions. Only by using
a private key can a bitcoin user create a digital signature to transfer bitcoin to another user. In addition, if an unauthorized third
person learns of a user&#8217;s private key, that third person could </FONT>&#34;<FONT STYLE="font-size: 10pt">forge</FONT>&#8221; <FONT STYLE="font-size: 10pt">the
user&#8217;s digital signature and send the user&#8217;s bitcoin to any bitcoin </FONT>public key <FONT STYLE="font-size: 10pt">address,
thereby stealing the user&#8217;s bitcoin. </FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><FONT STYLE="font-size: 10pt">The usage of key
pairs is a cornerstone of the Bitcoin network. This is because the use of a private key is the only mechanism by which a bitcoin transaction
can be signed. If a private key is lost, the corresponding bitcoin is thereafter permanently non-transferable. Moreover, the theft of
a private key enables the thief immediate and unfettered access to the corresponding bitcoin. Bitcoin users must therefore understand
that in this regard, bitcoin is a bearer asset, similar to cash: that is, the person or entity in control of the private key corresponding
to a particular quantity of bitcoin has <I>de facto </I>control of the bitcoin. For large quantities of bitcoin, holders often employ
sophisticated security measures. For a discussion of how the Trust secures its bitcoin, see &#8220;The </FONT>Bitcoin <FONT STYLE="font-size: 10pt">Custodian&#8221;
below. </FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">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 &#8220;block&#8221; in the Bitcoin Blockchain, which is publicly available. Thus,
the Bitcoin network provides confirmation against double-spending by memorializing every transaction in the Bitcoin Blockchain, which
is publicly accessible and downloaded in part or in whole by all users of the Bitcoin network software program.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><FONT STYLE="font-size: 10pt">The process by
which bitcoin are created and bitcoin transactions are verified is called mining. To begin mining, a user, or &#8220;miner,&#8221; can
download and</FONT> run <FONT STYLE="font-size: 10pt">special mining software, which, like regular Bitcoin network software programs,
turns the user&#8217;s computer into a &#8220;node&#8221; on the Bitcoin network, and also has the ability to validate transactions and
add new blocks of transactions to the Blockchain. </FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Miners, through the use of the bitcoin software
program, engage in a set of prescribed complex mathematical calculations imposed by the Bitcoin network&#8217;s software protocol, called
&#8220;proof of work&#8221;, in order to validate proposed transactions and bundle them into a data packet known as a &#8220;block.&#8221;
The first miner who successfully solves the cryptographic puzzle imposed by the Bitcoin network&#8217;s software protocol is permitted
to add a block of transactions to the Bitcoin Blockchain and is rewarded by a grant of newly-issued bitcoin, known as the &#8220;block
reward.&#8221;. Bitcoin is created and allocated by the Bitcoin network protocol and distributed through a &#8220;mining&#8221; process
subject to a strict, well-known issuance schedule. Block rewards for mining are the method by which new bitcoin is issued. The supply
of bitcoin is limited to 21&#160;million by the Bitcoin network&#8217;s software protocol.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Confirmed and validated bitcoin transactions
are recorded in blocks added to the Bitcoin Blockchain. Each block contains the details of some or all of the most recent transactions
that are not memorialized in prior blocks, as well as a record of the award of bitcoin to the miner who added the new block. Each unique
block can only be solved and added to the Bitcoin Blockchain by one miner; as a result, individual miners and mining pools on the Bitcoin
network engage in a competitive process of constantly increasing their computing power to improve their individual likelihood of solving
new blocks. As more miners join the Bitcoin network and its processing power increases, or if miners leave the Bitcoin network and its
processing power declines, the Bitcoin network adjusts the complexity of a block-solving equation to maintain a predetermined pace of
adding a new block to the Bitcoin Blockchain approximately every ten minutes.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 24.45pt"><B>Bitcoin Market and Bitcoin Exchanges </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Bitcoin can be transferred in direct peer-to-peer
transactions through the direct sending of bitcoin over the Bitcoin Blockchain from one bitcoin address to another. Among end-users,
bitcoin can be used to pay other members of the Bitcoin network for goods and services under what resembles a barter system. Consumers
can also pay merchants and other commercial businesses for goods or services through direct peer-to-peer transactions on the Bitcoin
Blockchain or through third-party service providers.</P>

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

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">In addition to using bitcoin to engage in transactions,
investors may purchase and sell bitcoin to speculate as to the value of bitcoin in the bitcoin market, or as a long-term investment to
diversify their portfolio. The value of bitcoin within the market is determined, in part, by the supply of and demand for bitcoin in
the global bitcoin market, market expectations for the adoption of bitcoin as a store of value, the number of merchants that accept bitcoin
as a form of payment, and the volume of peer-to-peer transactions, among other factors.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><FONT STYLE="font-size: 10pt">A bitcoin exchange
</FONT>generally <FONT STYLE="font-size: 10pt">provides investors with a website that permits investors to open accounts with the exchange
and then purchase and sell bitcoin. Prices for trades on bitcoin exchanges are typically reported publicly. An investor opening a trading
account must deposit an accepted government-issued currency into their account with the bitcoin exchange, or a previously acquired digital
asset, before they can purchase or sell assets on the exchange. The process of establishing an account with a bitcoin exchange and trading
bitcoin is different from, and should not be confused with, the process of users sending bitcoin from one bitcoin address to another
bitcoin address on the Bitcoin Blockchain. This latter process is an activity that occurs on the Bitcoin network, while the former is
an activity that occurs entirely on the private website operated by the bitcoin exchange</FONT> and via accounts and addresses managed
by the exchange. <FONT STYLE="font-size: 10pt">The bitcoin exchange typically records the investor&#8217;s ownership of bitcoin in its
internal books and records, rather than on the Bitcoin Blockchain. The bitcoin exchange ordinarily does not transfer bitcoin to the investor
on the Bitcoin Blockchain unless the investor makes a request to the exchange to withdraw the bitcoin in their exchange account to an
off-exchange bitcoin wallet. </FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Outside of bitcoin exchanges, Bitcoin can be
traded OTC in transactions that are not publicly reported. The OTC market is largely institutional in nature, and OTC market participants
generally consist of institutional entities, such as firms that offer two-sided liquidity for bitcoin, investment managers, proprietary
trading firms, high-net-worth individuals that trade bitcoin on a proprietary basis, entities with sizeable bitcoin holdings, and family
offices. The OTC market provides a relatively flexible market in terms of quotes, price, quantity, and other factors, although it tends
to involve large blocks of bitcoin. The OTC market has no formal structure and no open-outcry meeting place. Parties engaging in OTC
transactions will agree upon a price&#8212;often via phone or email&#8212;and then one of the two parties will then initiate the transaction.
For example, a seller of bitcoin could initiate the transaction by sending the bitcoin to the buyer&#8217;s bitcoin address. The buyer
would then wire U.S. dollars to the seller&#8217;s bank account. OTC trades are sometimes hedged and eventually settled with concomitant
trades on bitcoin exchanges.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Although bitcoin was the first digital asset,
in the ensuing years, the number of digital assets, market participants and companies in the space has increased dramatically. In addition
to bitcoin, other well-known digital assets include ether, XRP, bitcoin cash, and litecoin. The category and protocols are still being
defined and evolving.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 24.45pt"><B>Market Volatility </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Cryptocurrencies, such as bitcoin, are one of
the most volatile asset classes, even higher than small cap equities, emerging market equities or energy futures. It is not uncommon
for even the most established digital assets, such as bitcoin, to have periods of annualized volatility of over 100%.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Several factors influence those high volatility
levels. Firstly, as digital assets evolve in a fast-changing environment, major developments are commonplace. Changes in areas such as
regulation, technology, financialization etc. can have a profound impact on digital assets&#8217; potential for adoption, development
and growth.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Secondly, the digital asset space lacks frameworks
for fundamental analysis of price and growth. As a new market, desired data sets can be non-existent or difficult to access. Valuation
theory and frameworks are still in development, and the estimation of digital assets intrinsic value varies dramatically depending on
the use case, models and assumption sets used.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">In this situation, the digital assets market,
and particularly the bitcoin market, is very sensitive to news releases, and largely driven by sentiment. Investors should expect this
situation to continue in the short and medium term.</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">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 24.45pt"><B>Regulation of Bitcoin and Government Oversight </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">As digital assets have grown in both popularity
and market size, the U.S. Congress and a number of federal and state agencies (including FinCEN, SEC, CFTC, FINRA, the Consumer Financial
Protection Bureau (&#8220;CFPB&#8221;), the Department of Justice, the Department of Homeland Security, the Federal Bureau of Investigation,
the IRS and state financial institution regulators) have been examining the operations of digital asset networks, digital asset users
and the digital asset exchange markets, with particular focus on the extent to which digital assets can be used to launder the proceeds
of illegal activities or fund criminal or terrorist enterprises and the safety and soundness of exchanges or other service-providers
that hold digital assets for users. Many of these federal and state 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">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Various foreign jurisdictions have, and may continue
to, in the near future, propose, adopt or suggest the potential for laws, regulations or directives that affect the Bitcoin network,
the bitcoin markets, and their users, particularly bitcoin exchanges and service providers that fall within such jurisdictions&#8217;
regulatory scope, including to require virtual asset service providers to register and comply with an AML and CFT framework, banning
trading or shutting down digital asset exchanges, ordering financial institutions to stop providing banking or funding to any activity
related to cryptocurrencies, or banning entities from providing services to any individuals or business entities dealing with or settling
digital assets, among others. There remains significant uncertainty regarding governments&#8217; future actions with respect to the regulation
of digital assets and digital asset exchanges. Such laws, regulations or directives may conflict with those of the United States and
may negatively impact the acceptance of Bitcoin by users, merchants and service providers outside the United States and may therefore
impede the growth or sustainability of the Bitcoin economy in the United States and globally, or otherwise negatively affect the value
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: 24.5pt"> The Trust and the Sponsor (or an affiliate
of the Sponsor) have adopted and implemented policies and procedures that are designed to comply with applicable anti-money laundering
laws and sanctions laws and regulations, including applicable know your customer (&ldquo;KYC&rdquo;) laws and regulations. The Sponsor
and the Trust will only interact with known third-party service providers with respect to whom the Sponsor or its affiliates have engaged
in a due diligence process. Each Authorized Participant is confirmed to be a U.S. registered broker-dealer prior to placing creation
or redemption orders with respect to the Trust. </P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"> Furthermore, Authorized Participants, as broker-dealers
and Bitcoin Custodian, as an entity licensed to conduct virtual currency business activity by the New York Department of Financial Services
and a limited purpose trust company subject to New York Banking Law, respectively, are &ldquo;financial institutions&rdquo; subject to
the U.S. Bank Secrecy Act, as amended (&ldquo;BSA&rdquo;), and U.S. economic sanctions laws. The Trust will only accept in-kind creation
and redemption requests from Authorized Participants who have represented to the Trust that they have implemented compliance programs
that are designed to ensure compliance with applicable sanctions and anti-money laundering laws. In addition, with respect to all bitcoin
delivered in connection with creation requests, the party delivering bitcoin must establish an account with the Prime Broker who has
represented that diligence will be conducted to confirm that delivery is not from a digital currency address which has been added to
the list of Specially Designated Nationals whose assets are blocked, and with whom U.S. persons are generally prohibited from dealing. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">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.
The following are specific risks that could have a substantial and adviser impact on the Trust and the value of the Shares:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><I>It may be illegal now, or in the future, to
acquire, own, hold, sell or use bitcoin in one or more countries, and ownership of, holding or trading in Shares may also be considered
illegal and subject to sanctions. </I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Although currently cryptocurrencies and certain
other digital assets are not regulated or are lightly regulated in many countries, some countries have taken, and may take in the future,
regulatory actions that severely restrict the right to acquire, own, hold, sell or use such cryptocurrencies or digital assets or to
exchange cryptocurrencies or digital assets for fiat currency. Such regulatory actions or restrictions could adversely affect the value
of the Shares or 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">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><I>States may require licenses that apply to
Blockchain technologies and digital assets, such as bitcoin and tokens, and token offerings. The Trust or Sponsor may be unable to comply
with state licensing requirements or policies, which may materially adversely affect the value of the Shares. </I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><FONT STYLE="font-size: 10pt">In the case of
virtual currencies, state regulators such as the New York State Department of Financial Services (&#8220;NYSDFS&#8221;) have created
new regulatory frameworks. NYSDFS has implemented a regulatory framework for licensing participants in &#8220;virtual currency business
activity&#8221; known as the &#8220;BitLicense,&#8221; which is intended to focus on consumer protection. The &#8220;BitLicense&#8221;
regulates the conduct of businesses that are involved in &#8220;virtual currencies&#8221; in New York or with New York customers and
prohibits any person or entity involved in such activity from conducting such activities without a license. </FONT>In addition, California&#8217;s
&#8220;Digital Financial Assets Law&#8221; was signed into law in October, 2023, and imposes significant obligations on companies involved
in virtual currency activities within California and with California residents.</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">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Other states, such as Texas, have published guidance
on how their existing regulatory regimes apply to virtual currencies. Some states, such as New Hampshire, North Carolina and Washington,
have amended their state&#8217;s statutes to include virtual currencies into existing licensing regimes. It is likely that, as Blockchain
technologies and the use of virtual currencies continues to grow, additional states will take steps to monitor the developing industry.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The issuance of Shares may require such state
licenses. The effect of any future regulatory action on the Trust, bitcoin, or the Shares is impossible to predict, but such change could
be substantial and could adversely affect the value of the Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><I>The Trust or Sponsor may be required to register
as a money services business with FinCEN and as a money transmitter in states with applicable money transmitter regulations. If the Trust
fails to operate with appropriate state or federal licenses 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></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The Trust&#8217;s or Sponsor&#8217;s activities
may 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. If regulatory changes or interpretations of the Trust&#8217;s or Sponsor&#8217;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 framework) (or equivalent designation) under state law in any state in which the Trust or Sponsor operate, the Trust or Sponsor
may be required to seek a license or otherwise register with a state regulator and comply with state regulations that may include, among
other things, the implementation of anti-money laundering programs, cyber security, consumer protection, financial and reporting requirements
and maintenance of certain records and other operational requirements. 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. Rather than incur these expenses or comply with licensing requirements, the Sponsor may 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">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Furthermore, the process of obtaining the necessary
licenses could take an extensive period of time. There is also a risk that necessary state or federal licenses will not be granted and
therefore, the Sponsor may have to act to dissolve and liquidate the Trust. Any such termination could result in the liquidation of the
Trust&#8217;s bitcoin at a time that is disadvantageous to Shareholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">In addition, to the extent the Trust or Sponsor
are found to have operated without appropriate state or federal licenses, the Trust or Sponsor may be subject to investigation, administrative
or court proceedings, and civil or criminal monetary fines and penalties, all of which could harm the reputation of the Trust or Sponsor
and affect the value of the Shares.</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">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>THE TRUST AND BITCOIN PRICES</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The Trust is an exchange-traded fund that issues
Shares that will be traded on the Exchange. The Trust&#8217;s investment objective is to gain exposure to the price of bitcoin as represented
by the Reference Rate, less expenses and liabilities of the Trust&#8217;s operations. In seeking to achieve its investment objective,
the Trust will hold bitcoin and will value its Shares daily based on the Reference Rate, which is based on an aggregation of executed
trade flow of major bitcoin exchanges.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> <B>Bitcoin Value and Trading Volume</B> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><FONT STYLE="font-size: 10pt">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 (<I>e.g.,</I>
Bitstamp, Coinbase, Gemini, Kraken, itBit</FONT> and LMAX Digital<FONT STYLE="font-size: 10pt">). </FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">On these bitcoin 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: 24.5pt">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"> Exchanges provide the necessary data with
respect to the prevailing valuations of bitcoin due to the many bitcoin exchanges operating worldwide that represent a substantial percentage
of bitcoin buying and selling activity. The Benchmark Administrator relies on a selection of exchanges for use in the Reference Rate.
An exchange selected for use must meet the criteria of the Benchmark Administrator, which is governed by the CME CF Oversight Committee
(the &ldquo;Oversight Committee&rdquo;). The below tables reflect the average daily trading volume (in thousands of USD) and market share
percentage of each of the bitcoin exchanges included in the Reference Rate over the preceding four calendar quarters: </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">[Table regarding Trading Volume for each exchange/past
four quarters]</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">[Table regarding market share percentage for
each exchange/past four quarters]</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"> The domicile, regulation and legal compliance
of the bitcoin exchanges included in the Reference Rate, along with the information or reporting requirements applicable to each exchange,
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: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"> Changes to the regulatory landscape, both domestic and foreign,
may impact the global trading volume of bitcoin. For example, a large percentage of the global bitcoin trading volume previously 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 exchanges in November 2017, which forced such exchanges to
cease their operations or relocate. As a result, reported Bitcoin trading volume on Chinese bitcoin exchanges is now substantially lower,
representing a de minimis share of the reported global trade volume. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"> From time to time, there may be intra-day
price fluctuations across bitcoin exchanges. However, they are generally relatively immaterial. 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 bitcoin 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 a bitcoin exchange&rsquo;s transaction volume and as a result
impact the trading price on those exchanges and (ii)&nbsp;bitcoin exchanges that are inaccessible 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: 22.5pt"> In order to provide updated information relating
to the Trust for use by Shareholders, the Trust intends to publish an intraday indicative value (&ldquo;IIV&rdquo;) using the CME CF
Bitcoin Real Time Index (&ldquo;BRTI&rdquo;). One or more major market data vendors will provide an IIV updated every 15 seconds, as
calculated by the Exchange or a third-party financial data provider during the Exchange&rsquo;s regular market session of 9:30 a.m. to
4:00 p.m. ET (the &ldquo;Regular Market Session&rdquo;). The IIV will be calculated by using the prior day&rsquo;s closing NAV as a base
and updating that value during the Regular Market Session to reflect changes in the value of the Trust&rsquo;s NAV during the trading
day. </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"> &nbsp; </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 22.5pt"> The IIV&rsquo;s dissemination during the Regular
Market Session should not be viewed as an actual real time update of the NAV, which will be calculated only once at the end of each trading
day. The IIV will be widely disseminated every 15 seconds during the Regular Market Session by one or more major market data vendors.
In addition, the IIV will be available through online information services. </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: 22.5pt"> All aspects of the BRTI methodology are publicly
available at the website of the provider CF Benchmarks (www.cfbencharks.com). The CME CF Bitcoin Real Time Index is calculated once per
second, in real time by utilizing the Order Books of bitcoin &ndash; U.S. dollar trading pairs operated by all Constituent Exchanges.
An &ldquo;Order Book&#750; is a list of buy and sell orders with associated limit prices and sizes that have not yet been matched, that
is reported and disseminated by CF Benchmarks Ltd., as the BRTI calculation agent. The Order Books are aggregated into one consolidated
order book by the BRTI calculation agent. The mid-price volume curve, which is the average of the bid price-volume curve (which maps
transaction volume to the marginal price per cryptocurrency unit a seller is required to accept in order to sell this volume to the consolidated
order book) and the ask price-volume curve (which maps a transaction volume to the marginal price per cryptocurrency unit a buyer is
required to pay in order to purchase this volume from the consolidated order book). The mid price-volume curve is weighted by the normalized
probability density of the exponential distribution up to the utilized depth (utilized depth being calculated as the maximum cumulative
volume for which the mid spread-volume curve does not exceed a certain percentage deviation from the mid price). The BRTI is then given
by the sum of the weighted mid price-volume curve obtained in the previous step. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"> The CME CF Bitcoin Reference Rate- New York
Variant (&ldquo;BRRNY&rdquo;) is a once-a-day benchmark index price for Bitcoin denominated in US Dollars that synchronizes with the
traditional close of U.S. financial markets. The index is calculated and published every day of the year at 4:00 p.m. Eastern time and
has been since its launch on 28th February 2022. The index is provided by CF Benchmarks as a Registered Benchmark under the UK Benchmarks
Regulation overseen by the UK Financial Conduct Authority (&ldquo;UK FCA&rdquo;). The Reference Rate was created to facilitate financial
products based on bitcoin. Specifically, the Reference Rate is calculated based on the &ldquo;Relevant Transactions&rdquo; (as defined
below) of all of its constituent bitcoin exchanges (the &ldquo;Constituent Bitcoin Exchanges&rdquo;), as follows: </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 10pt">&#160;</FONT></P>

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

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.4in"><FONT STYLE="font-size: 10pt">&#8226;</FONT></TD><TD><FONT STYLE="font-size: 10pt">All
                                            Relevant Transactions </FONT>that are executed between 3:00 p.m. <FONT STYLE="font-size: 10pt">and
                                            4:00 p.m. </FONT>Eastern time <FONT STYLE="font-size: 10pt">are added to a joint list, recording
                                            the trade price and size for each transaction. </FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.4in"><FONT STYLE="font-size: 10pt">&#8226;</FONT></TD><TD><FONT STYLE="font-size: 10pt">The
                                            list is partitioned into </FONT>a number of <FONT STYLE="font-size: 10pt">equally sized</FONT>,
                                            12 individual <FONT STYLE="font-size: 10pt">time intervals of 5 (five) minute length.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.4in"><FONT STYLE="font-size: 10pt">&#8226;</FONT></TD><TD><FONT STYLE="font-size: 10pt">For
                                            each </FONT>of the twelve (12) partitions <FONT STYLE="font-size: 10pt">separately, the volume-weighted
                                            median trade price is calculated from the trade prices and sizes of all Relevant Transactions,
                                            <I>i.e.</I>, across all Constituent Bitcoin Exchanges. A volume-weighted median differs from
                                            a standard median in that a weighting factor, in this case trade size, is factored into the
                                            calculation. </FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.4in"><FONT STYLE="font-size: 10pt">&#8226;</FONT></TD><TD><FONT STYLE="font-size: 10pt">The
                                            </FONT>BRRNY <FONT STYLE="font-size: 10pt">is then </FONT>given <FONT STYLE="font-size: 10pt">by
                                            the </FONT>equally-weighted average <FONT STYLE="font-size: 10pt">of the volume-weighted
                                            medians of all partitions.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"> The Reference Rate does not include any futures
prices in its methodology. A &ldquo;Relevant Transaction&rdquo; is any cryptocurrency versus U.S. dollar spot trade (the &ldquo;Relevant
Pair&rdquo;) that occurs during the TWAP Period&rdquo; on a Constituent Bitcoin Exchange in the BTC/USD pair that is reported and disseminated
by a Constituent Bitcoin Exchange through its publicly available application programming interface (&ldquo;API&rdquo;) and observed by
the Benchmark Administrator, CF Benchmarks Ltd. &ldquo;TWAP&rdquo; refers to the Time Weighted Average Price period for which trade data
is observed, or 60 minutes observation window between 3:00 p.m. and 4:00 p.m. Eastern time. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"> An oversight function is implemented by the
Benchmark Administrator in seeking to ensure that the Reference Rate is administered through the Benchmark Administrator&rsquo;s codified
policies for Reference Rate integrity. . The Reference Rate is administered through the Benchmark Administrator&rsquo;s codified policies
for index integrity, which have been developed to ensure compliance with the UK BMR regulations, which the Benchmark Administrator is
subject as a Registered Benchmark. The codified policies include the following: </P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.3in"> &bull; </TD><TD> <I>Input data policy</I>: The Input Data Policy governs the data
                                            that the Benchmark Administrator uses in benchmark determinations. </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"> &nbsp; </P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.3in"> <I>&bull;</I> </TD><TD> <I>Surveillance policy:</I> The Surveillance Policy governs
                                            Benchmark Surveillance, which is accomplished through a series of measures that are the product
                                            of an analysis of the Benchmark Administrator&rsquo;s methodologies and their susceptibility
                                            to manipulation. </TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.3in"> &bull; </TD><TD> <I>Conflicts of interest policy</I>: The Conflicts of Interest Policy
                                            governs the measures by which the Benchmark Administrator identifies, records, mitigates,
                                            and escalates potential and actual conflicts of interest that might impact the integrity
                                            of the benchmarks. </TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.3in"> &bull; </TD><TD> <I>Governance &amp; Oversight Framework</I>: This framework sets
                                            forth the measures by which the Benchmark Administrator manages the benchmark life cycle
                                            including the relevant junctures where Oversight Committee notification, escalation, review
                                            and resolution is relevant and required including the manner in which the Benchmark Administrator
                                            identifies risks to benchmark integrity and the processes and procedures it follows to mitigate
                                            and eliminate such risks. </TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.3in"> The Benchmark Administrator&rsquo;s compliance
such regulations has been subject to a Limited Assurance Audit under the ISAE 3000 standard as of September 12, 2022, which is publicly
available. </P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.3in"> The Reference Rate is also subject to oversight
by the Oversight Committee. The Oversight Committee was jointly established by the Benchmark Administrator and the Chicago Mercantile
Exchange (&ldquo;CME&rdquo;) and is comprised of five members, including two who are representatives of CME, one who is a representative
of the Benchmark Administrator, and two others who bring expertise and industry knowledge relating to benchmark determination, issuance,
and operations. The Oversight Committee&rsquo;s Founding Charter and quarterly meeting minutes are publicly available. The Oversight
Committee meets at least quarterly basis, and more frequently as needed, to review and make determinations of cryptocurrency pricing
products, including the Reference Rate, and attend to all other matters relating to such determination, including their definition, setting,
scope, methodology, and distribution. </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: 0.3in"> An exchange must meet a set of predefined criteria
to be approved by the Oversight Committee, and the operation of existing Constituent Exchanges are also monitored against the same criteria: </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> &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: 41.75pt"></TD><TD STYLE="width: 18pt"> 1. </TD><TD> The exchange&rsquo;s spot trading volume of the Relevant Pair for
                                            an index must meet the minimum thresholds as detailed below for it to be admitted as a constituent
                                            exchange: </TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> &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: 77.75pt"></TD><TD STYLE="width: 18pt"> a. </TD><TD> The average daily volume the venue would have contributed during
                                            the observation window for the Reference Rate of the Relevant Pair exceeds 3% for two consecutive
                                            calendar quarters. </TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> &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: 41.75pt"></TD><TD STYLE="width: 18pt"> 2. </TD><TD> The exchange has policies to ensure fair and transparent market
                                            conditions at all times and has processes in place to identify and impede illegal, unfair
                                            or manipulative trading practices. </TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> &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: 41.75pt"></TD><TD STYLE="width: 18pt"> 3. </TD><TD> The exchange does not impose undue barriers to entry or restrictions
                                            on market participants, and utilizing the exchange does not expose market participants to
                                            undue credit risk, operational risk, legal risk or other risks. </TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> &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: 41.75pt"></TD><TD STYLE="width: 18pt"> 4. </TD><TD> The exchange complies with applicable law and regulation, including,
                                            but not limited to capital markets regulations, money transmission regulations, client money
                                            custody regulations, know-your-client (KYC) regulations and anti-money laundering (AML) regulations. </TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> &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: 41.75pt"></TD><TD STYLE="width: 18pt"> 5. </TD><TD> The exchange cooperates with inquiries and investigations of regulators
                                            and the Benchmark Administrator upon request and must execute data sharing agreements with
                                            CME Group. </TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.3in"> Following admittance, a Constituent Exchange
must demonstrate that it continues to fulfill criteria two through five. In cases where a Constituent Exchange&rsquo;s average daily
contribution falls below three percent for the Reference Rate, then the continued inclusion of the exchange as a Constituent Exchange
to the Relevant Pair shall be assessed by the Oversight Committee. The Constituent Exchanges have changed over time. For example, the
BRR previously included OKCoin.com (HK) and Bitfinex, both of which were removed April 2017 due to trading restrictions. As of November
20, 2023, the Constituent Exchanges include: </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"> &nbsp; </P>

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<TD STYLE="width: 0"></TD><TD STYLE="width: 22.5pt"> &bull; </TD><TD> <I>Bitstamp</I>: A U.K.-based exchange registered as an MSB with
                                            FinCEN and licensed as a virtual currency business under the NYDFS BitLicense as well as
                                            money transmitter in various U.S. states. It is also regulated as a Payments Institution
                                            within the European Union and is registered as a Crypto Asset business with the UK FCA. </TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 22.5pt"> &bull; </TD><TD> <I>Coinbase</I>: A U.S.-based exchange registered as an MSB with
                                            FinCEN and licensed as a virtual currency business under the NYDFS BitLicense as well as
                                            a money transmitter in various U.S. states. Subsidiaries operating internationally are further
                                            regulated as an e-money provider (Republic of Ireland, Central Bank of Ireland) and Major
                                            Payment Institution (Singapore, Monetary Authority of Singapore). </TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 22.5pt"> &bull; </TD><TD> <I>Kraken</I>: A U.S.-based exchange that is registered as an MSB
                                            with FinCEN in various U.S. states, Kraken is registered with the FCA as a Crypto Asset Business
                                            and is authorized by the Central Bank of Ireland as a Virtual Asset Service Provider (&ldquo;VASP&rdquo;).
                                            Kraken also holds a variety of other licenses and regulatory approvals, including from the
                                            Canadian Securities Administrators (&ldquo;CSA&rdquo;). </TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 22.5pt"> &bull; </TD><TD> <I>itBit</I>: A U.S.-based exchange that is licensed as a virtual
                                            currency business under the NYDFS BitLicense. It is also registered FinCEN as an MSB and
                                            is licensed as a money transmitter in various U.S. states. </TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 22.5pt"> &bull; </TD><TD> <I>LMAX Digital</I>: A Gibraltar based exchange regulated by the
                                            Gibraltar Financial Services Commission (&#8223;GFSC&#750;) as a DLT provider for execution
                                            and custody services. LMAX Digital does not hold a BitLicense and is part of LMAX Group,
                                            a U.K-based operator of a FCA regulated Multilateral Trading Facility and Broker-Dealer. </TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 22.5pt"> &bull; </TD><TD> <I>Gemini</I>: A U.S.-based exchange that is licensed as a virtual
                                            currency business under the NYDFS BitLicense. It is also registered with FinCEN as an MSB
                                            and is licensed as a money transmitter in various U.S. states. It is also registered with
                                            the FCA as a Crypto Asset Business. </TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Once the Sponsor has actual knowledge of material
changes to the Constituent Bitcoin Exchanges used to calculate the Reference Rate, the Sponsor will post an announcement with respect
to such change on its website.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>CF BENCHMARKS LTD. DATA IS USED UNDER LICENSE AS A SOURCE OF INFORMATION
FOR THE TRUST&#8217;S PRODUCTS. CF BENCHMARKS LTD., ITS AGENTS AND LICENSORS HAVE NO OTHER CONNECTION TO THE TRUST&#8217;S PRODUCTS AND
SERVICES AND DOES NOT SPONSOR, ENDORSE, RECOMMEND OR PROMOTE ANY OF THE TRUST&#8217;S PRODUCTS OR SERVICES. CF BENCHMARKS LTD., ITS AGENTS
AND LICENSORS HAVE NO OBLIGATION OR LIABILITY IN CONNECTION WITH THE TRUST&#8217;S PRODUCTS AND SERVICES. CF BENCHMARKS LTD., ITS AGENTS
AND LICENSORS DO NOT GUARANTEE THE ACCURACY AND/OR THE COMPLETENESS OF ANY INDEX LICENSED TO THE TRUST AND SHALL NOT HAVE ANY LIABILITY
FOR ANY ERRORS, OMISSIONS, OR INTERRUPTIONS THEREIN. </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</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>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The Trust&#8217;s NAV per Share is calculated
by:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 24.5pt"></TD><TD STYLE="width: 24.1pt"><FONT STYLE="font-size: 10pt">&#8226;</FONT></TD><TD><FONT STYLE="font-size: 10pt">taking
                                            the current market value of its total assets</FONT> including, but not limited to, all bitcoin,
                                            cash or other assets;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 24.5pt"></TD><TD STYLE="width: 24.1pt">&#8226;</TD><TD>subtracting any liabilities; and</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 24.5pt"></TD><TD STYLE="width: 24.1pt">&#8226;</TD><TD>dividing that total by the total number of outstanding
                                            Shares.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"> The methodology of the Reference Rate used
to value bitcoin for purposes of calculating NAV Per Share may not be deemed consistent with generally accepted accounting principles
in the U.S. (&ldquo;GAAP&rdquo;). To the extent the methodology used to calculate the Reference Rate is deemed not to be consistent with
GAAP, the Trust will utilize an alternative GAAP-consistent pricing source for purposes of the Trust&rsquo;s periodic financial statements,
as further discussed below. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"> The Trust Administrator calculates the NAV
of the Trust once each Exchange trading day. The NAV for a normal trading day will be released after 4:00 p.m. EST. Trading during the
core trading session on the Exchange typically closes at 4:00 p.m. EST. However, NAVs are not officially struck until later in the day
(often by 5:30 p.m. EST and almost always by 8:00 p.m. EST). </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"> The Sponsor anticipates that the Reference
Rate will be reflective of a reasonable valuation of the average spot price of bitcoin. However, in the event the Reference Rate was
not available or determined by the Sponsor to not be reliable, the Sponsor would &ldquo;fair value&rdquo; the Trust&rsquo;s bitcoin holdings.
The Sponsor does not anticipate that the need to &ldquo;fair value&rdquo; bitcoin will be a common occurrence. The Sponsor reserves the
right to replace the Reference Rate with another valuation methodology which it believes will accurately track the price of bitcoin.
If the Sponsor makes the decision to materially change the valuation methodology or replace either the Reference Rate or the Benchmark
Administrator, the Sponsor will notify Shareholders via a posting on the Trust&rsquo;s website or prospectus supplement or through a
current report on Form 8-K or in the Trust&rsquo;s annual or quarterly reports. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"> The Sponsor will publish the NAV, NAV per
Share, Reference Rate, and the Trust&rsquo;s bitcoin holdings at www.wisdomtree.com/investments after their determination and availability. </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: 24.5pt"> The Trust&rsquo;s periodic financial statements
may not utilize the net asset value of the Trust determined by reference to the Reference Rate to the extent the methodology used to
calculate the Reference Rate is deemed not to be consistent with GAAP. The Trust&rsquo;s periodic financial statements will be prepared
in accordance with the Financial Accounting Standards Board (&ldquo;FASB&rdquo;) Accounting Standards Codification Topic 820, &ldquo;Fair
Value Measurements and Disclosures&rdquo; (&ldquo;ASC Topic 820&rdquo;) and utilize an exchange-traded price from the Trust&rsquo;s principal
market for bitcoin on the Trust&rsquo;s financial statement measurement date. The Sponsor will determine in its sole discretion the valuation
sources and policies used to prepare the Trust&rsquo;s financial statements in accordance with GAAP. The Trust will obtain a price from
a principal market for bitcoin, which may be through third party vendor or directly from such principal market. </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: 24.5pt"> To determine which market is the Trust&rsquo;s
principal market (or in the absence of a principal market, the most advantageous market) for purposes of calculating the Trust&rsquo;s
financial statements, the Trust follows ASC 820-10, which outlines the application of fair value accounting. ASC 820-10 determines fair
value to be the price that would be received for bitcoin in a current sale, which assumes an orderly transaction between market participants
on the measurement date. ASC 820-10 requires the Trust to assume that bitcoin is sold in its principal market to market participants
or, in the absence of a principal market, the most advantageous market. Market participants are defined as buyers and sellers in the
principal or most advantageous market that are independent, knowledgeable, and willing and able to transact. The Trust may transact through
bitcoin trading counterparties, in multiple markets, and its application of ASC 820-10 reflects this fact. The Trust anticipates that,
while multiple venues and types of markets will be available to the bitcoin trading counterparties from whom the Sponsor acquires or
disposes of the Trust&rsquo;s bitcoin, the principal market in each scenario is determined by looking at the market-based level of volume
and bitcoin trading activity. Bitcoin trading counterparties, may transact in a Brokered Market, a Dealer Market, Principal-to-Principal
Markets and Exchange Markets, each as defined in the FASB ASC Master Glossary. Based on information reasonably available to the Trust,
Exchange Markets have the greatest volume and level of activity for the asset. The Trust therefore looks to accessible Exchange Markets
as opposed to the Brokered Market, Dealer Market and Principal-to-Principal Markets to determine its principal market. As a result of
the aforementioned analysis, an Exchange Market has been selected as the Trust&rsquo;s principal market. The Trust determines its principal
market (or in the absence of a principal market the most advantageous market) on a quarterly basis to determine which market is its Principal
Market for the purpose of calculating fair value for the creation of quarterly and annual financial statements. </P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"> The Sponsor has developed a process for identifying
a principal market, as prescribed in ASC 820-10, which outlines the application of fair value accounting. The process begins by identifying
publicly available, well established and reputable bitcoin trading venues (Exchange Markets, as defined in the FASB ASC Master Glossary),
which are selected by the Sponsor and its affiliates in their sole discretion. Those markets include, but are not limited to, Binance,
Bitfinex, Bitflyer, Bitstamp, Coinbase, Crypto.com, Gemini, HitBTC, Huobi, itBit, Kraken, KuCoin, LMAX Digital, OKEx and Poloniex. The
Sponsor then, through a service provider, calculates on each valuation period, the highest volume venue during the 60 minute period prior
to 4:00 ET for bitcoin. The Sponsor then identifies that market as the principal market for bitcoin during that period, and uses the
price for bitcoin from that venue at 4:00 ET as the principal market price. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> &#160; </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"> To the extent there are any determinations
that the Sponsor and the Trust Administrator make, such determinations will be made in good faith, and neither the Sponsor nor the Trust
Administrator will be liable for any errors contained in, information reasonably available. Neither the Sponsor nor the Trust Administrator
will be liable to DTC, Authorized Participants, the Shareholders or any other person for errors in judgment. <B>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.</B> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&#160;</B></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>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&#160;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>ADDITIONAL INFORMATION ABOUT THE TRUST </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The Trust is a Delaware statutory trust, formed
on March&#160;8, 2021, pursuant to the Delaware Statutory Trust Act. The Trust continuously issues common shares representing fractional
undivided beneficial interest in and ownership of the Trust that may be purchased and sold on the Exchange. The Trust operates pursuant
to the Trust Agreement dated as [&#160;&#160;&#160;&#160;]. Delaware Trust Company, a Delaware trust company, is the Delaware trustee
of the Trust. The Trust is managed and controlled by the Sponsor. The Sponsor is a limited liability company formed in the state of Delaware
on March&#160;5, 2021.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"> The Trust is not registered as an investment
company under the 1940 Act and the Sponsor is not registered as an investment adviser under the Investment Advisers Act of 1940. The
Trust will not hold or trade in commodity futures contracts regulated by the Commodity Exchange Act (&ldquo;CEA&rdquo;), as administered
by the CTFC. The Trust is not a commodity pool for purposes of the CEA and neither the Sponsor, nor the Trustee is subject to regulation
as a commodity pool operator or a commodity trading adviser in connection with the Shares. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">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
requires the delivery to the Trust or the distribution by the Trust of the amount of bitcoin represented by the NAV of the Baskets being
created or redeemed. The total amount of bitcoin required for the creation of Baskets will be based on the combined net assets represented
by the number of Baskets being created or redeemed.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Trust has no fixed termination date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>The Trust&#8217;s Fees and Expenses </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"> The Trust will pay the Sponsor a fee of [&nbsp;&nbsp;&nbsp;&nbsp;]%
(the &ldquo;Sponsor Fee&rdquo;). The Sponsor Fee is calculated on a daily basis (accrued at 1/365 of the applicable percentage of the
net asset value (the &ldquo;NAV&rdquo;) on that day) and paid on a monthly basis. The Sponsor Fee will accrue and be payable in U.S.
dollars. The Trust&rsquo;s only ordinary recurring expense is expected to be the Sponsor Fee. In exchange for the Sponsor&rsquo;s Fee,
the Sponsor has agreed to assume the marketing and the following administrative expenses of the Trust: the fees of the Trustee, the fees
of the Trust Administrator, the Custodians&rsquo; Fees, Exchange listing fees, SEC registration fees, printing and mailing costs, tax
reporting fees, audit fees, license fees and ordinary legal fees and expenses. The Sponsor will also pay the costs of the Trust&rsquo;s
organization and the initial sale of the Shares. There is no cap on the amount of these Sponsor paid expenses. </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: 24.5pt"> The Sponsor may, at its sole discretion and
from time to time, waive all or a portion of the Sponsor Fee for stated periods of time. The Sponsor is under no obligation to waive
any portion of its fees and any such waiver shall create no obligation to waive any such fees during any period not covered by the waiver.
As of the date of this prospectus, the Sponsor has not decided to waive any of the Sponsor Fee and there are no specific circumstances
under which the Sponsor has determined it will waive the fee. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"> The Trust may incur certain extraordinary,
non-recurring expenses that are not assumed by the Sponsor, including but not limited to, taxes and governmental charges, any applicable
brokerage commissions, financing charges or fees, Bitcoin network fees and similar transaction fees, expenses and costs of any extraordinary
services performed by the Sponsor (or any other service provider) on behalf of the Trust to protect the Trust or the interests of Shareholders
(including, for example, in connection with any fork of the Bitcoin blockchain, any Incidental Rights and any IR Virtual Currency), any
indemnification of the Cash Custodian, Bitcoin Custodian, Trust Administrator or other agents, service providers or counterparties of
the Trust and extraordinary legal fees and expenses, including any legal fees and expenses incurred in connection with litigation, regulatory
enforcement or investigation matters. </P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"> Because the Trust does not have any income,
it will need to sell bitcoin to cover the Sponsor&rsquo;s Fee and expenses not assumed by the Sponsor, if any. Trust expenses not assumed
by the Sponsor shall accrue daily and be payable by the Trust to the Sponsor at monthly in arrears. The Trust may also be subject to
other liabilities (for example, as a result of litigation) that have also not been assumed by the Sponsor. The only source of funds to
cover those liabilities will be sales of bitcoin held by the Trust. Even if there are no expenses other than those assumed by the Sponsor,
and there are no other liabilities of the Trust, the Trust will still need to sell bitcoin to pay the Sponsors Fee. The result of these
sales is a decrease in the amount of bitcoin represented by each Share. </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"> &nbsp; </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"> To cover the Sponsor&rsquo;s Fee and expenses
not assumed by the Sponsor, the Sponsor or its delegate will cause the Trust (or its delegate) to convert bitcoin into U.S. dollars at
the price available through an affiliate of the Bitcoin Custodian. The number of bitcoins represented by a Share will decline each time
the Trust pays the Sponsor&rsquo;s Fee or any Trust expenses not assumed by the Sponsor by transferring or selling bitcoins. The Trust
is responsible for paying any costs associated with the transfer of bitcoin to the Sponsor or the sale of bitcoin. However, under the
terms of each Authorized Participant Agreement, the Authorized Participants will be responsible for any brokerage or transaction costs
associated with the sale of transfer of bitcoin incurred in connection with the fulfillment of a creation and redemption order. </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: 24.5pt"> The quantity of bitcoins to be sold to permit
payment of the Sponsor&rsquo;s Fee or Trust expenses not assumed by the Sponsor, will vary from time to time depending on the level of
the Trust&rsquo;s expenses and the value of bitcoins held by the Trust. Assuming that the Trust is a grantor trust for U.S. federal income
tax purposes, each delivery or sale of bitcoins, Incidental Rights and IR Virtual Currency by the Trust for the payment of expenses generally
will be a taxable event to Shareholders. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Termination of the Trust </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The Trust may be dissolved at any time for any
reason, or for no reason at all, by the Sponsor in its sole discretion. Any termination by the Fund will result in the compulsory redemption
of all outstanding 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: 24.5pt"> The term of the Trust is perpetual (unless
terminated earlier in certain circumstances). On and after termination of the Trust, the Trustee will wind up the business and affairs
of the Trust and deliver Trust property upon surrender and cancellation of Shares. The Trustee will not accept any purchase order or
redemption order after the date of dissolution. If any Shares remain outstanding after the date of dissolution of the Trust, the Trustee
thereafter will (i) discontinue the registration of transfer of Shares; (ii) continue to collect distributions pertaining to Trust property
and hold proceeds thereof uninvested, without liability for interest; and (iii) pay the Trust&rsquo;s expenses and may sell Trust property
as necessary to meet those expenses. After the dissolution of the Trust, the Trustee will sell or otherwise liquidate the Trust property
then held and after deducting any fees, expenses, taxes or other governmental charges payable by the Trust and any expenses for the account
of DTC of such Shares and any applicable taxes or other governmental charges, promptly distribute the net proceeds from such sale to
DTC. The Trustee and the Sponsor shall not be liable for any loss or depreciation resulting from any sale or other disposition of property
made by the Trustee pursuant to the Sponsor&rsquo;s instruction or otherwise made by the Trustee in good faith. The proceeds of the liquidation
of the Trust&rsquo;s assets are expected to be distributed in cash. Shareholders are not entitled to any of the Trust&rsquo;s underlying
bitcoin holdings upon the dissolution of the Trust. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Upon termination of the Trust, following completion
of winding up of its business by the Sponsor, the Sponsor will cause a certificate of cancellation of the Trust&#8217;s Certificate of
Trust to be filed in accordance with applicable Delaware law. Upon the termination of the Trust, the Sponsor will be discharged from
all obligations under the Trust Agreement except for its certain obligations that survive termination of the Trust Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"> The Sponsor and the Trustee may agree to amend
the Trust Agreement or Sponsor Agreement, as applicable, without Shareholder consent. The Sponsor shall determine the contents and manner
of notice of any Trust Agreement amendment. Such notice may be provided on the Trust&rsquo;s website, in a prospectus supplement, through
a current report on Form 8-K and/or in the Trust&rsquo;s annual or quarterly reports. If an amendment to the Trust Agreement or Sponsor
Agreement imposes new fees and charges or increases existing fees or charges, including the Sponsor Fee (except for taxes and other governmental
charges, registration fees or other such expenses), or prejudices a substantial right of Shareholders, it will become effective for outstanding
Shares 30 days after notice of such amendment is given to registered owners. Shareholders that are not registered owners (which most
Shareholders will not be) may not receive specific notice of a fee increase other than through an amendment to the prospectus. Moreover,
at the time an amendment becomes effective, by continuing to hold Shares, Shareholders are deemed to agree to the amendment and to be
bound by the Trust Agreement and Sponsor Agreement as amended without specific agreement to such increase (other than through the &ldquo;negative
consent&rdquo; procedure described above). </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</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>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>THE TRUST&#8217;S SERVICE PROVIDERS </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 24.45pt"><B>The Sponsor </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><FONT STYLE="font-size: 10pt">The Sponsor arranged
for the creation of the Trust and is responsible for the ongoing registration of the Shares for their public offering in the United States
and the listing of Shares on the Exchange. The Sponsor will not exercise day-to-day oversight over the Trustee or the Custodian</FONT>s<FONT STYLE="font-size: 10pt">.
</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in"> The Sponsor will develop a marketing plan
for the Trust, will prepare marketing materials regarding the Shares of the Trust, and will exercise the marketing plan of the Trust
on an ongoing basis. The Sponsor has agreed to pay all routine operational, administrative and ordinary expenses of the Trust out of
the Sponsor&rsquo;s fee as more fully described herein. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The Sponsor appoints and may remove the Trust&#8217;s
other service providers, as well as any additional, replacement, or successor service providers. The Sponsor does not take responsibility
for the Trust&#8217;s other service providers.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"> The Sponsor is a wholly-owned subsidiary of
WisdomTree, Inc. The Sponsor is a wholly-owned subsidiary of WisdomTree, Inc. (formerly WisdomTree Investments, Inc.), a global financial
innovator that, through its other subsidiaries worldwide (collectively, &ldquo;WisdomTree&rdquo;), makes available ETFs, including those
that hold bitcoin and other digital assets, as well as bitcoin futures. WisdomTree has also developed and launched next-generation digital
products, services and structures, including digital or blockchain-enabled mutual funds and tokenized assets, as well as a blockchain-native
digital wallet with bitcoin and ether available for purchase, sale and holding. While the Sponsor has not managed an ETF investing in
commodities or digital assets, such as bitcoin, prior to the Trust, the Sponsor will leverage WisdomTree&rsquo;s heritage of innovation
and extensive experience regarding bitcoin and the digital asset markets. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The principal office of the Sponsor is located
at 250 West 34th Street, 3rd Floor, New York, NY 10119:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 24.45pt"> <B>Executive Officers of the Sponsor </B> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"> The Trust does not have any directors, officers
or employees. The creation and operation of the Trust has been arranged by the Sponsor. The following persons serve in the below capacities
on behalf of the Sponsor: </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">
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    <TD STYLE="white-space: nowrap; width: 27%; border-bottom: black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 24.25pt 0pt 0; text-align: center"> <B>Position(s)</B> </P>
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    <TD STYLE="white-space: nowrap; width: 18%; border-bottom: black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 24.25pt 0pt 0; text-align: center"> <B>Length of</B> </P>
    <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 24.25pt 0pt 0; text-align: center"> <B>Time Served</B> </P></TD>
    <TD STYLE="white-space: nowrap"> &nbsp; </TD>
    <TD STYLE="white-space: nowrap; width: 27%; border-bottom: black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> <B>Principal</B> </P>
    <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> <B>Occupation(s)</B> </P>
    <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> <B>During the</B> </P>
    <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> <B>Past Five</B> </P>
    <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> <B>Years</B> </P></TD></TR>
  <TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; text-align: center"> <FONT STYLE="font-size: 10pt">Jeremy Schwartz (1981)</FONT> </TD>
    <TD STYLE="vertical-align: bottom"> &nbsp; </TD>
    <TD STYLE="vertical-align: top; text-align: center"> <FONT STYLE="font-size: 10pt">Chief Executive Officer</FONT> </TD>
    <TD STYLE="vertical-align: bottom"> &nbsp; </TD>
    <TD STYLE="vertical-align: top; text-align: center"> <FONT STYLE="font-size: 10pt">March 2021-Present</FONT> </TD>
    <TD STYLE="vertical-align: bottom"> &nbsp; </TD>
    <TD STYLE="vertical-align: top"> <FONT STYLE="font-size: 10pt">Global Chief Investment Officer for WisdomTree since 2021,&nbsp;&nbsp;Global
    Head of Research from 2018 to 2021 and Director of Research from 2008 to 2018. </FONT> </TD></TR>
  <TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; text-align: center"> <FONT STYLE="font-size: 10pt">David Castano (1971)</FONT> </TD>
    <TD STYLE="vertical-align: bottom; text-align: center"> &nbsp; </TD>
    <TD STYLE="vertical-align: top; text-align: center"> <FONT STYLE="font-size: 10pt">Chief Financial Officer and Treasurer</FONT> </TD>
    <TD STYLE="vertical-align: bottom; text-align: center"> &nbsp; </TD>
    <TD STYLE="vertical-align: top; text-align: center"> <FONT STYLE="font-size: 10pt">March 2021-Present</FONT> </TD>
    <TD STYLE="vertical-align: top"> &nbsp; </TD>
    <TD STYLE="vertical-align: top"> <FONT STYLE="font-size: 10pt">Head of Fund Accounting &amp; Administration, WisdomTree Asset Management,
    Inc. since 2020; Director of Fund Accounting&nbsp;&amp; Administration, WisdomTree Asset Management, 2011 to 2020.</FONT> </TD></TR>
  <TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; text-align: center"> <FONT STYLE="font-size: 10pt">Ryan Louvar (1972)</FONT> </TD>
    <TD STYLE="vertical-align: bottom; text-align: center"> &nbsp; </TD>
    <TD STYLE="vertical-align: top; text-align: center"> <FONT STYLE="font-size: 10pt">Chief Legal Officer and Secretary</FONT> </TD>
    <TD STYLE="vertical-align: bottom; text-align: center"> &nbsp; </TD>
    <TD STYLE="vertical-align: top; text-align: center"> <FONT STYLE="font-size: 10pt">March 2021-Present</FONT> </TD>
    <TD STYLE="vertical-align: bottom"> &nbsp; </TD>
    <TD STYLE="vertical-align: top"> <FONT STYLE="font-size: 10pt">Chief Legal Officer and Head of Business and Legal Affairs, WisdomTree
    Digital+, since 2021;&nbsp;General Counsel, WisdomTree Asset Management, Inc., 2013 to 2021.</FONT> </TD></TR>
  </TABLE>

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

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0"> + WisdomTree Digital refers to the separate division within WisdomTree
and its affiliates commencing in 2021 and includes the separate advisory subsidiary, WisdomTree Digital Management, Inc. commencing in
2022, and money services subsidiary, WisdomTree Digital Movement, Inc., commencing in 2023. </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">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 24.45pt"><B>The Trustee </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Delaware Trust Company, a Delaware trust company,
acts as the trustee of the Trust for the purpose of creating a Delaware statutory trust in accordance with the Delaware Statutory Trust
Act (&#8220;DSTA&#8221;). 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&#160;3807(a) of the DSTA that the Trust have at least one trustee with a principal place of
business in the State of Delaware.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 24.45pt"><B><I>General Duty of Care of Trustee </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The Trustee is a fiduciary under the Trust Agreement;
provided, however, that the fiduciary duties and responsibilities and liabilities of the Trustee are limited by, and are only those specifically
set forth in, the Trust Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 24.45pt"><B><I>Resignation, Discharge or Removal of Trustee; Successor
Trustees </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The Trustee may resign at any time by giving
at least 30 days advance written notice to the Sponsor. The Sponsor may remove the Trustee at any time by giving at least 30 days advance
written notice to the Trustee. Upon effective resignation or removal, the Trustee will be discharged of its duties and obligations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">If the Trustee resigns or is removed, the Sponsor,
acting on behalf of the Shareholders, is required to use reasonable efforts to appoint a successor trustee. Any successor Trustee must
satisfy the requirements of Section&#160;3807 of the DSTA. Any resignation or removal of the Trustee and appointment of a successor Trustee
cannot become effective until a written acceptance of appointment is delivered by the successor Trustee to the outgoing Trustee and the
Sponsor and any fees and expenses due to the outgoing Trustee are paid or waived by the outgoing Trustee. Following compliance with the
preceding sentence, the successor will become fully vested with the rights, powers, duties and obligations of the outgoing Trustee under
the Trust Agreement, with like effect as if originally named as Trustee, and the outgoing Trustee shall be discharged of its duties and
obligations herein. If no successor Trustee shall have been appointed and shall have accepted such appointment within forty-five (45)&#160;days
after the giving of such notice of resignation or removal, the Trustee may petition any court of competent jurisdiction for the appointment
of a successor Trustee.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">If the Trustee resigns and no successor trustee
is appointed within 180 days after the date the Trustee issues its notice of resignation, the Sponsor will terminate and liquidate the
Trust and distribute its remaining assets.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 24.45pt"> <B>The Trust Administrator </B> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"> Under the Administration Agreement, the Trust
Administrator provides certain services necessary for the operation and administration of the Trust, including net asset value calculations,
accounting and other administrative services. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 24.45pt"><FONT STYLE="font-size: 10pt"><B>The </B></FONT><B>Bitcoin
<FONT STYLE="font-size: 10pt">Custodian </FONT></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><FONT STYLE="font-size: 10pt">The</FONT> Bitcoin
<FONT STYLE="font-size: 10pt">Custodian is responsible for safekeeping all of the bitcoin owned by the Trust. </FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</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">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 24.45pt"><FONT STYLE="font-size: 10pt"><B>The</B></FONT><B> Cash
<FONT STYLE="font-size: 10pt">Custodian </FONT></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><FONT STYLE="font-size: 10pt">The </FONT>Cash
<FONT STYLE="font-size: 10pt">Custodian </FONT>is responsible <FONT STYLE="font-size: 10pt">for </FONT>safekeeping all <FONT STYLE="font-size: 10pt">of
</FONT>the non-<FONT STYLE="font-size: 10pt">bitcoin </FONT>assets owned by <FONT STYLE="font-size: 10pt">the Trust. </FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 24.45pt"><B>The Transfer Agent </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The Transfer Agent facilitates the issuance and
redemption of Shares of the Trust.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 24.45pt"><B>The Marketing Agent </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The Marketing Agent is responsible for (reviewing
and approving the marketing materials prepared by the Sponsor for compliance with applicable SEC and FINRA advertising laws, rules and
regulations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><FONT STYLE="font-size: 10pt">Information regarding
the Trust will be available at www.wisdomtree.com</FONT>/investments<FONT STYLE="font-size: 10pt">. This internet address is only provided
here as a convenience, and the information contained on or connected to such website is not considered part of this Prospectus. </FONT></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">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 24.45pt"><B>The Benchmark Administrator </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The Benchmark Administrator and the Sponsor&#8217;s
affiliate, which also covers the activities hereunder, have entered into a reference rate license agreement (the &#8220;License Agreement&#8221;),
governing the use of the Reference Rate. The Benchmark Administrator may adjust the calculation methodology for the Reference Rate without
notice to, or consent of, the Trust or its Shareholders. Under the License Agreement, the Sponsor pays a fee to the Benchmark Administrator
in consideration of its license of Reference Rate-related intellectual property.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>CUSTODY OF THE TRUST&#8217;S ASSETS </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"> The Trust has entered into an agreement with
the Bitcoin Custodian, the Bitcoin Custody Agreement, pursuant to which the Bitcoin Custodian will custody all of the Trust&rsquo;s bitcoin
in a segregated account from time to time (the &ldquo;Vault Balance&rdquo;). The Bitcoin Custodian will keep a substantial portion of
the private keys associated with the Trust&rsquo;s bitcoin in &ldquo;cold storage&rdquo; or similarly secure technology (the &ldquo;Cold
Vault Balance&rdquo;), with any remainder of the Vault Balance held as a &ldquo;Hot Vault Balance.&rdquo; The Sponsor expects that all
of the Trust&rsquo;s assets and private keys will be held in cold storage of the Bitcoin Custodian on an ongoing basis. </P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"> Custody of bitcoin typically involves the
generation, storage and utilization of private keys. These private keys are used to effect transfer transactions (i.e., transfers of
bitcoin from an address associated with the private key to another address). Cold storage of private keys may involve keeping such keys
on a non-networked computer or electronic device or storing the private keys on a storage device or printed medium and deleting the keys
from all computers. Cold storage is a safeguarding method with multiple layers of protections and protocols, by which the private key(s)
corresponding to the Trust&rsquo;s bitcoin is (are) generated and stored in an offline manner. Private keys are generated in offline
computers that are not connected to the internet so that they are resistant to being hacked. By contrast, in hot storage, the private
keys are held online, where they are more accessible, leading to more efficient transfers, though they are potentially more vulnerable
to being hacked. While the Bitcoin Custodian will generally keep all of the Trust&rsquo;s bitcoin in cold storage on an ongoing basis,
it is possible that, from time to time, portions of the Trust&rsquo;s bitcoin will be held outside of cold storage temporarily as part
of trade facilitation in connection with creations and redemptions of Baskets, to sell bitcoins including to pay Trust expenses, or to
pay the Sponsor Fee, as necessary. The Trust&rsquo;s bitcoin held in the Cold Vault Balance by the Bitcoin Custodian are held in segregated
wallets and therefore are not commingled with the Bitcoin Custodian&rsquo;s or other customer assets. The private key materials are stored
within secure storage facilities within the U.S. and Europe. For security reasons exact locations are never disclosed. A limited number
of employees at the Bitcoin Custodian are involved in private key management operations, and the Bitcoin Custodian has represented that
no single individual has access to full private keys. The Bitcoin Custodian carefully considers the design of the physical, operational
and cryptographic systems for secure storage of the Trust&rsquo;s private keys in an effort to lower the risk of loss or theft. No such
system is perfectly secure and loss or theft due to operational or other failure is always possible. The Sponsor and the Trust&rsquo;s
service providers will have the ability to verify the existence of the Trust&rsquo;s bitcoin through information provided from the Custodian. </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: 24.5pt"> The Bitcoin Custodian&rsquo;s internal audit
team performs periodic internal audits over custody operations, and the Bitcoin Custodian has represented that Systems and Organizational
Control attestations covering private key management controls are also performed on the Bitcoin Custodian by an external provider. </P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"> Under the terms of the Bitcoin Custody Agreement,
the Sponsor maintains sole discretion in allocating bitcoin among the Hot Vault Balance and Cold Vault Balance. Bitcoin custodied by
the Bitcoin Custodian is not commingled with assets of Bitcoin Custodian or its affiliates or with assets of other customers of Bitcoin
Custodian. Neither the Trust, the Sponsor, nor any other entity is permitted to lend, pledge, hypothecate or rehypothecate any of the
Trust&rsquo;s bitcoin. The Bitcoin Custodian has also agreed in the Bitcoin Custody Agreement that it will not, directly or indirectly,
lend, pledge, hypothecate or rehypothecate any of the Trust&rsquo;s bitcoin, and that the Trust&rsquo;s bitcoin assets are not treated
as general assets of the Bitcoin Custodian but are instead considered custodial assets that remain the Trust&rsquo;s property. Additionally,
the Bitcoin Custodian has agreed to provide the Trust or its authorized independent public accountant with confirmation of or access
to information sufficient to confirm the bitcoin held by the Bitcoin Custodian for the Trust and that the Trust&rsquo;s bitcoin is held
in a separate, segregated account under the Trust&rsquo;s name. Under the Bitcoin Custody Agreement, the Bitcoin Custodian is required
to obtain and maintain, at its sole expense, commercially reasonable insurance coverage for the custody services it provides to the Trust.
The Bitcoin Custody Agreement does not require that private key information with respect to the Trust&rsquo;s bitcoin be kept in a particular
physical location. </P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"> The Bitcoin Custodian may receive deposits
of bitcoin but may not send bitcoin without use of the corresponding private keys. In order to send bitcoin when the private keys are
kept in cold storage, unsigned transactions must be physically transferred to the offline cold storage facility and signed using a software/hardware
utility with the corresponding offline keys. At that point, the Bitcoin Custodian can upload the fully signed transaction to an online
network and transfer the bitcoin. Because the Bitcoin Custodian may need to retrieve private keys from offline storage prior to initiating
transactions, the initiation or crediting of withdrawals or other transactions may be delayed. </P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"> The Bitcoin Custodian maintains a commercial
crime insurance policy, which is intended to cover the loss of client assets held in cold storage, including from employee collusion
or fraud, physical loss including theft, damage of key material, security breach or hack, and fraudulent transfer. The insurance maintained
by the Bitcoin Custodian is shared among all of the Bitcoin Custodian&rsquo;s customers, is not specific to the Trust or to customers
holding bitcoin with the Bitcoin Custodian, and may not be available or sufficient to protect the Trust from all possible losses or sources
of losses. </P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 24.5pt"> The Bitcoin Custodian
maintains an annually renewed insurance policy in the amount of $320 million with comprehensive coverage terms and conditions. This insurance
policy covers the loss of client assets held in cold storage at the Bitcoin Custodian. This insurance program, which has continuously
run since 2013, provides the Bitcoin Custodian and its clients with some of the broadest and deepest insurance coverage in the crypto
industry, with coverage designed to be comprehensive, including losses from employee collusion or fraud, physical loss (including theft),
or damage of key material, security breach or hack, and fraudulent transfer. </P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 24.5pt"> The Bitcoin Custodian
has advised the Sponsor that, through its insurance program, it has insurance coverage up to a certain amount that could be used to repay
losses of the digital assets it custodies on behalf of its clients, including the Trust&rsquo;s bitcoin, resulting from theft. However,
Shareholders cannot be assured that the Bitcoin Custodian will maintain adequate insurance such that coverage will cover losses with
respect to the Trust&rsquo;s bitcoins, or that sufficient insurance proceeds necessarily will be available to cover the Trust&rsquo;s
losses in full. </P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 24.5pt"> The Bitcoin Custodian&rsquo;s
insurance covers losses resulting from employee collusion or fraud, physical loss (including theft), or damage of key material, security
breach or hack, and fraudulent transfer, but does not cover losses resulting from the Bitcoin Custodian&rsquo;s insolvency or certain
other events. The Bitcoin Custodian&rsquo;s insurance will not cover losses associated with the value of bitcoin and should not be viewed
as insuring against losses caused by the Trust&rsquo;s operations, performance, management or any of its other activities. For events
that are covered by the Bitcoin Custodian&rsquo;s insurance program, the Trust may be forced to share such insurance proceeds with other
clients or customers of the Bitcoin Custodian, which could reduce the amount of such proceeds that are available to the Trust. In addition,
the bitcoin insurance market is limited, and the level of insurance maintained by the Bitcoin Custodian may be substantially lower than
the assets of the Trust. While the Bitcoin Custodian maintains certain capital reserve requirements depending on the assets under custody,
and such capital reserves may provide additional sources of recovery in the event of losses, the Trust cannot be assured that the Bitcoin
Custodian will maintain capital reserves sufficient to cover actual or potential losses with respect to the Trust&rsquo;s digital assets. </P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 24.5pt"> The Bitcoin Custodian
will not be liable for any amount greater than the value of the supported digital assets on deposit in the Trust&rsquo;s custodial account(s)
at the time of the event giving rise to the liability, subject further to the maximum liability limit of $100 million for each cold storage
address. </P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 24.5pt"> The Shareholders&rsquo;
recourse against the Sponsor, the Trustee, and the Trust&rsquo;s other service providers for the services they provide to the Trust,
including, without limitation, those relating to the holding of bitcoin or the provision of instructions relating to the movement of
bitcoin, is limited. For the avoidance of doubt, neither the Sponsor, the Trustee, nor any of their affiliates, nor any other party has
guaranteed the assets or liabilities, or otherwise assumed the liabilities, of the Trust, or the obligations or liabilities of any service
provider to the Trust, including, without limitation, the Bitcoin Custodian. Consequently, a loss may be suffered with respect to the
Trust&rsquo;s bitcoin that is not covered by the Bitcoin Custodian&rsquo;s insurance and for which no person is liable in damages. As
a result, the recourse of the Trust or the Shareholders, under applicable law, is limited. </P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"> The Bitcoin Custodian may terminate the Bitcoin
Custody Agreement for any reason upon providing the applicable notice to the Trust, or immediately for &ldquo;Cause&rdquo; (as defined
in the Bitcoin Custody Agreement), including, among others, if the Trust: materially breaches the Bitcoin Custody Agreement and such
breach remains uncured, or undergoes a bankruptcy event. </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"> &nbsp; </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"> The Transfer Agent will facilitate the settlement
of Shares in response to the placement of creation orders and redemption orders from Authorized Participants. </P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"> The Trust has entered into the Cash Custody
Agreement with the Cash Custodian under which the Cash Custodian acts as custodian of the Trust&rsquo;s cash and cash equivalents. Under
the Cash Custody Agreement, the Cash Custodian will open and maintain one or more cash deposit accounts to keep all cash and open other
accounts for other non-digital assets of the Trust delivered to the Cash Custodian and, on behalf of the Trust, the Cash Custodian shall,
from time to time, accept delivery of cash and other non-bitcoin assets for safekeeping. Amounts received in connection with the sale
of bitcoin shall be deposited into the cash account. The Cash Custodian shall exercise the reasonable skill, care and diligence expected
of a professional provider of custody services to institutional investors and shall generally be liable to the Trust for losses caused
by the negligence, willful default or fraud of the Cash Custodian. </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: 24.5pt"> The Trust may engage third-party custodians
or vendors besides the Bitcoin Custodian and the Cash Custodian to provide custody and security services for all or a portion of its
bitcoin and/or cash, and the Sponsor will pay the custody fees and any other expenses associated with any such third-party custodian
or vendor. The Sponsor may, in its sole discretion, add or terminate custodians at any time. The Sponsor may, in its sole discretion,
change the custodian for the Trust&rsquo;s holdings, but it will have no obligation whatsoever to do so or to seek any particular terms
for the Trust from other such custodians. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><FONT STYLE="font-size: 10pt">Cold storage of
private keys may involve keeping such keys on a non-networked computer or electronic device or storing the public key and private keys
on a storage device (for example, a USB thumb drive) or printed medium and deleting the keys from all computers. The Custodian may receive
deposits of bitcoin but may not send bitcoin without use of the corresponding private keys. In order to send bitcoin when the private
keys are kept in cold storage, either the private keys must be retrieved from cold storage and entered into a software program to sign
the transaction, or the unsigned transaction must be sent to the &#8220;cold&#8221; server in which the private keys are held for signature
by the private keys. </FONT>At that point, the Bitcoin Custodian can transfer the bitcoin. Such private keys are stored in cold storage
facilities within the United States and Europe, exact locations of which are not disclosed for security reasons. The Bitcoin Custodian
has represented that a limited number of employees at the Bitcoin Custodian are involved in private key management operations, and the
Bitcoin Custodian has further represented that no single individual has access to full private keys.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 2.3pt 0pt 2pt">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The Bitcoin Custodian has represented that it
maintains a commercial crime insurance policy, which is intended to cover the loss of client assets held in cold storage, including from
employee collusion or fraud, physical loss including theft, damage of key material, security breach or hack, and fraudulent transfer.
Such insurance is not specific to the Trust or to customers holding bitcoin with the Bitcoin Custodian, and may not be available for
sufficient to protect the Trust from all possible losses or sources of losses.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"> Coinbase, an affiliate of the Bitcoin Custodian,
may provide prime broker services, including bitcoin trade execution, from time to time as requested by the Sponsor, although the Sponsor
may also trade directly with other third parties and/or market makers. The Trust may engage in purchases or sales of bitcoin by placing
orders with Coinbase. Coinbase will route orders placed by the Sponsor through Coinbase&rsquo;s execution platform where the order will
be executed. Each order placed by the Sponsor will be sent, processed and settled at each connected trading venue to which it is routed.
Subject to the foregoing, Coinbase (as well as the Trust and the Sponsor) shall have no liability, obligation, or responsibility whatsoever
for the selection or performance of any trading venue, and that other trading venues not used for the specific execution and/or trading
venues not used by Coinbase may offer better prices and/or lower costs than the trading venue used to execute the Trust&rsquo;s orders. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The Trust&#8217;s Transfer Agent will facilitate
the settlement of Shares in response to the placement of creation orders and redemption orders from Authorized Participants.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Shares are issued in registered form in accordance
with the Trust Agreement. The Transfer Agent has been appointed registrar and transfer agent for the purpose of transferring Shares in
certificated form. The Transfer Agent keeps a record of all Shareholders and holders of the Shares in certified form in the registry
(&#8220;Register&#8221;). The Sponsor recognizes transfers of Shares in certificated form only if done in accordance with the Trust Agreement.
The beneficial interests in such Shares are held in book-entry form through participants and/or accountholders in DTC.</P>

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

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Individual certificates are not issued for the
Shares. Instead, Shares are represented by one or more global certificates, which are deposited by the Transfer Agent with DTC and registered
in the name of Cede&#160;&amp; Co., as nominee for DTC. The global certificates evidence all of the Shares outstanding at any time. Shareholders
are limited to (1)&#160;participants in DTC such as banks, brokers, dealers and trust companies (&#8220;DTC Participants&#8221;), (2)
those who maintain, either directly or indirectly, a custodial relationship with a DTC Participant (&#8220;Indirect Participants&#8221;),
and (3)&#160;those who hold interests in the Shares through DTC Participants or Indirect Participants, in each case who satisfy the requirements
for transfers of Shares. DTC Participants acting on behalf of Shareholders holding Shares through such participants&#8217; accounts in
DTC will follow the delivery practice applicable to securities eligible for DTC&#8217;s Same-Day Funds Settlement System. Shares are
credited to DTC Participants&#8217; securities accounts following confirmation of receipt of payment.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">DTC is a limited purpose trust company organized
under the laws of the State of New York and is a member of the Federal Reserve System, a &#8220;clearing corporation&#8221; within the
meaning of the New York Uniform Commercial Code and a &#8220;clearing agency&#8221; registered pursuant to the provisions of Section&#160;17A
of the Exchange Act. DTC holds securities for DTC Participants and facilitates the clearance and settlement of transactions between DTC
Participants through electronic book-entry changes in accounts of DTC Participants.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Buying and Selling Shares </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"> Most investors buy and sell Shares of the
Trust in secondary market transactions through brokers. Shares will trade on the Exchange under the ticker symbol &ldquo;BTCW.&rdquo;
Shares are bought and sold throughout the trading day like other publicly traded securities. When buying or selling Shares through a
broker, investors may incur customary brokerage commissions and charges. Shareholders are encouraged to review the terms of their brokerage
account for details on applicable commissions and charges. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"> The offering of the Trust&rsquo;s Shares is
a best efforts offering. The Trust continuously offers Baskets consisting of 5,000 Shares to Authorized Participants, as further described
below. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">By executing a Participant Agreement, an Authorized
Participant becomes part of the group of parties eligible to purchase Baskets from, and put Baskets for redemption to, the Trust. An
Authorized Participant is under no obligation to create or redeem Baskets or to offer to the public Shares of any Baskets it does create.
Authorized Participants that offer to the public Shares from the Baskets they create will do so at a per-Share offering price that will
vary depending upon, among other factors, the trading price of the Shares, the NAV and the supply of and demand for the Shares at the
time of the offer. Shares initially comprising the same Basket but offered by Authorized Participants to the public at different times
may have different offering prices.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"> Authorized Participants pay a transaction
fee for each order they place to create or redeem one or more Baskets. With respect to cash creations and redemptions, transaction fees
are expected to include commissions, taxes, and transaction and market impact costs, as applicable, in relation to the Trust&rsquo;s
purchase or sale of bitcoin related thereto. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The offering of Baskets is being made in compliance
with Rule 2310 of the FINRA Rules. Accordingly, Authorized Participants will not make any sales to any account over which they have discretionary
authority without the prior written approval of a purchaser of Shares.</P>

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

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Because new Shares can be created and issued
on an ongoing basis, at any point during the life of the Trust, a &#8220;distribution,&#8221; as such term is used in the 1933 Act, will
be occurring. Authorized Participants, other broker-dealers and other persons are cautioned that some of their activities may result
in their being deemed participants in a distribution in a manner that would render them statutory underwriters and subject them to the
prospectus-delivery and liability provisions of the 1933 Act. For example, the initial Authorized Participant will be a statutory underwriter
with respect to the initial purchase of Baskets. Any purchaser who purchases Shares with a view towards distribution of such Shares may
be deemed to be a statutory underwriter. In addition, an Authorized Participant, other broker- dealer firm or its client will be deemed
a statutory underwriter if it purchases a Basket from the Trust, breaks the Basket down into the constituent Shares and sells the Shares
to its customers; or if it chooses to couple the creation of a supply of new Shares with an active selling effort involving solicitation
of secondary market demand for the Shares. In contrast, Authorized Participants may engage in secondary market or other transactions
in Shares that would not be deemed &#8220;underwriting.&#8221; For example, an Authorized Participant may act in the capacity of a broker
or dealer with respect to Shares that were previously distributed by other Authorized Participants. A determination of whether a particular
market participant is an underwriter must take into account all the facts and circumstances pertaining to the activities of the broker-dealer
or its client in the particular case, and the examples mentioned above should not be considered a complete description of all the activities
that would lead to designation as an underwriter and subject them to the prospectus- delivery and liability provisions of the 1933 Act.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Dealers who are neither Authorized Participants
nor &#8220;underwriters&#8221; but are nonetheless participating in a distribution (as contrasted to ordinary secondary trading transactions),
and thus dealing with Shares that are part of an &#8220;unsold allotment&#8221; within the meaning of Section&#160;4(a)(3)(C) of the
1933 Act, would be unable to take advantage of the prospectus-delivery exemption provided by Section&#160;4(a)(3) of the 1933 Act.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">While the Authorized Participants may be indemnified
by the Trust and/or the Sponsor, they will not be entitled to receive a discount or commission from the Trust or the Sponsor for their
purchases of Baskets.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</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>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"> The Trust issues and redeems Baskets on a
continuous basis. Baskets are only issued or redeemed in exchange for an amount of bitcoin or cash determined by the Trustee on each
day that the Exchange is open for regular trading. No Shares are issued unless the Bitcoin Custodian or Prime Broker has allocated to
the Trust&rsquo;s account the corresponding amount of bitcoin or cash. As of the date of this prospectus, a Basket requires delivery
of [ ] bitcoins. The amount of bitcoin necessary for the creation of a Basket, or to be received upon redemption of a Basket, will decrease
over the life of the Trust, due to the payment or accrual of fees and other expenses or liabilities payable by the Trust. Baskets may
be created or redeemed only by Authorized Participants. Authorized Participants pay a transaction fee for each order they place to create
or redeem one or more Baskets. With respect to cash creations and redemptions, transaction fees are expected to include commissions,
taxes, and transaction and market impact costs, as applicable, in relation to the Trust&rsquo;s purchase or sale of bitcoin related thereto. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><FONT STYLE="font-size: 10pt">&#160;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"> Authorized Participants, acting on authority
of the registered holder of Shares, may surrender Baskets in exchange for the corresponding amount of bitcoin or cash. A Authorized Participant,
or its designee, will receive bitcoin or cash related to the Authorized Participant&rsquo;s redemption order from the Trust&rsquo;s Trading
Balance to the designee&rsquo;s prime brokerage account at the Prime Broker. This transfer is an &ldquo;off-chain&rdquo; transaction
that is represented in the books and records of the Prime Broker. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"> When a redemption order is received, the Trust
will instruct the Prime Broker and Bitcoin Custodian to move the corresponding amount of bitcoin from the Trust&rsquo;s Vault Balance
to the Trading Balance by a specified time on the settlement date. Transfers of bitcoin from the Trust&rsquo;s Vault Balance to the Trust&rsquo;s
Trading Balance are &ldquo;on-chain&rdquo; transaction represented on the bitcoin blockchain. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"> Bitcoin transactions that occur on the blockchain
are susceptible to delays due to bitcoin network outages, congestion, spikes in transaction fees demanded by miners, or other problems
or disruptions. To the extent that bitcoin transfers from the Trust&rsquo;s Vault to the Trust&rsquo;s Trading Balance are delayed due
to congestion or other issues with the bitcoin network, redemptions in the Trust could be delayed. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"> Disruption of services at the Prime Broker
or Bitcoin Custodian would have the potential to delay settlement of the bitcoin related to Share redemptions. </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: 24.5pt"> Upon the surrender of such Shares and the
payment of the applicable transaction fee and of any expenses, taxes or charges (such as stamp taxes or stock transfer taxes or fees)
by the redeeming Authorized Participant, the Sponsor will instruct the Prime Broker to deliver from the Trust&rsquo;s Trading Balance
to the designee&rsquo;s prime brokerage account at the Prime Broker, the amount of bitcoin corresponding to the redeemed Baskets. Shares
can only be surrendered for redemption in Baskets of 5,000 Shares each. </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: 24.5pt"> Before surrendering Baskets for redemption,
an Authorized Participant must submit a redemption order through an electronic order entry system indicating the number of Baskets it
intends to redeem. The date the Trust receives that order determines the bitcoin to be received in exchange. However, orders received
after 3:59 p.m. ET on a Business Day (or such earlier cut-off time as communicated) will not be accepted and should be resubmitted on
the next following Business Day.&nbsp; </P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"> All taxes incurred in connection with the
delivery of bitcoin to the Bitcoin Custodian in exchange for Baskets (including any applicable value added tax) will be the sole responsibility
of the Authorized Participant making such delivery. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"> On any business day, an Authorized Participant
may place an order with the Transfer Agent to create one or more Baskets. For purposes of processing creation and redemption orders,
a &ldquo;business day&rdquo; means any day other than a day when the Exchange is closed for regular trading. Purchase orders must be
placed by 4:00 p.m. EST, or the close of regular trading on the Exchange, whichever is earlier, or such earlier time as disseminated
by the Trust the prior day for the following day&rsquo;s transactions (e.g., 1:00 p.m. EST). The day on which an order is received by
the Transfer Agent is considered the purchase order date. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"> The manner by which creations are made is
dictated by the terms of the Authorized Participant Agreement. By placing a creation order, an Authorized Participant agrees to facilitate
the deposit of bitcoin, generally through a designee of the Authorized Participant, with the Bitcoin Custodian or cash with the Cash
Custodian, as applicable. If an Authorized Participant fails to consummate the foregoing, the order will be cancelled. </P>

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

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"> The total deposit of bitcoin or cash required
to create each Basket is an amount of bitcoin (or value equal thereto with respect to cash) that is in the same proportion to the total
assets of the Trust (net of accrued but unpaid Sponsor fees and any accrued but unpaid extraordinary expenses and liabilities) on the
date the purchase order is properly received as the number of Shares to be created under the purchase order is to the total number of
Shares outstanding on the date the order is received. Each night, the Sponsor or Trust Administrator will publish the amount of bitcoin
or cash that will be required in exchange for each creation order. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"> It is anticipated that the required cash deposit
will have a value greater than the value of the anticipated corresponding amount of bitcoin as directed by the Trust, which is intended
to cover the commissions, transaction and market impact costs associated with the Trust&rsquo;s purchase of bitcoin that the Authorized
Participant will be obligated to pay. The Trust will return any unused portion of the excess cash deposit to the Authorized Participant.
Following an Authorized Participant&rsquo;s purchase order, the Trust&rsquo;s Bitcoin Custodian or Cash Custodian account must be credited
with the required bitcoin or cash, as the case may be, by the settlement date, or such earlier time as instructed, which may include
the trade date. Upon receipt of the deposit amount in the Trust&rsquo;s Bitcoin Custodian or Cash Custodian account (and thereafter after
purchase by the Trust of corresponding bitcoin with the cash deposited), as the case may be, such Custodian will notify the Transfer
Agent, the Authorized Participant, and the Sponsor that the applicable bitcoin has been deposited or purchased with cash deposited, as
applicable. The Transfer Agent will then direct DTC to credit the number of Shares created to the Authorized Participant&rsquo;s DTC
account. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><FONT STYLE="font-size: 10pt">Bitcoin held in
the Trust&#8217;s Custodian account at the </FONT>Bitcoin <FONT STYLE="font-size: 10pt">Custodian is the property of the Trust and is
not traded, leased, or loaned under any circumstances. The expense and risk of delivery and ownership of bitcoin until such bitcoin has
been received by the </FONT>Bitcoin <FONT STYLE="font-size: 10pt">Custodian on behalf of the Trust will be borne solely by the Authorized
Participant. </FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"> The procedures by which an Authorized Participant
can redeem one or more Baskets mirror the procedures for the creation of Baskets with an additional safeguard on bitcoin being removed
from the Trust&rsquo;s Bitcoin Custodian account. On any business day, an Authorized Participant may place an order with the Transfer
Agent to redeem one or more Baskets. Redemption orders must be placed by 4:00 p.m. EST, or the close of regular trading on the Exchange,
whichever is earlier, or such earlier time as disseminated by the Trust the prior day for the following day&rsquo;s transactions (e.g.,
1:00 p.m. EST). </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><FONT STYLE="font-size: 10pt">The redemption
distribution from the Trust consists of a movement of bitcoin representing the amount of bitcoin held by the Trust evidenced by the Shares
being redeemed</FONT> or the cash proceeds from the sale of such bitcoin<FONT STYLE="font-size: 10pt">. The redemption distribution due
from the Trust will be delivered once the Transfer Agent notifies the </FONT>Bitcoin <FONT STYLE="font-size: 10pt">Custodian</FONT> or
Cash Custodian, as applicable, <FONT STYLE="font-size: 10pt">and the Sponsor that the Authorized Participant has delivered the Shares
represented by the Baskets to be redeemed to the Trust&#8217;s DTC account. If the Trust&#8217;s DTC account has not been credited with
all of the Shares of the Baskets to be redeemed, the redemption distribution will be delayed until such time as the Transfer Agent confirms
receipt of all such Shares. </FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"> Once the Transfer Agent notifies the Bitcoin
Custodian or Cash Custodian, as applicable, and the Sponsor that the Shares have been received in the Trust&rsquo;s DTC account, the
Sponsor instructs the Bitcoin Custodian to transfer the redemption bitcoin amount from the Trust&rsquo;s Custodian account to the Authorized
Participant or instructs the Cash Custodian to pay the net cash proceeds (i.e., less transaction fees) to the Authorized Participant,
as applicable. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Bitcoin held in the Trust&#8217;s Custodian account
is the property of the Trust and is not traded, leased, or loaned under any circumstances.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Suspension or Rejection of Redemption Orders </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"> The Sponsor may, in its discretion, suspend
the right of redemption, or postpone the redemption settlement date, (1) for any period during which the Exchange is closed other than
customary weekend or holiday closings, or trading on the Exchange is suspended or restricted, (2) for any period during which an emergency
(for example, an interruption in services or availability of the Bitcoin Custodian, Cash Custodian, Administrator, or other service providers
to the Trust, act of God, catastrophe, civil disturbance, government prohibition, war, terrorism, strike or other labor dispute, fire,
force majeure, interruption in telecommunications, order entry systems, Internet services, or network provider services, unavailability
of Fedwire, SWIFT or banks&rsquo; payment processes, significant technical failure, bug, error, disruption or fork of the Bitcoin network,
hacking, cybersecurity breach, or power, Internet, or Bitcoin network outage, or similar event) exists as a result of which delivery,
disposal or evaluation of bitcoin is not reasonably practicable, or (3) for such other period as the Sponsor determines to be necessary
for the protection of the Shareholders. For example, the Sponsor may determine that it is necessary to suspend redemptions to allow for
the orderly liquidation of the Trust&rsquo;s assets. If the Sponsor has difficulty liquidating the Trust&rsquo;s positions, e.g., because
of a market disruption event or an unanticipated delay in the liquidation of a position in an over-the-counter contract, it may be appropriate
to suspend redemptions until such time as such circumstances are rectified. None of the Sponsor, the person authorized to take redemption
orders in the manner provided in the Authorized Participant Agreement, or the Bitcoin Custodian or Cash Custodian will be liable to any
person or in any way for any loss or damages that may result from any such suspension or postponement. </P>

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

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The Sponsor acting by itself or through the person
authorized to take redemption orders in the manner provided in the Authorized Participant Agreement may, in its sole discretion, reject
any redemption order (1)&#160;the Sponsor determines not to be in proper form, (2)&#160;the fulfillment of which its counsel advises
may be illegal under applicable laws and regulations, or (3)&#160;if circumstances outside the control of the Sponsor, the person authorized
to take redemption orders in the manner provided in the Authorized Participant Agreement or the Custodian make it for all practical purposes
not feasible for the Shares to be delivered under the redemption order. The Sponsor may also reject a redemption order if the number
of Shares being redeemed would reduce the remaining outstanding Shares to [&#160;&#160;&#160;&#160;] Shares (i.e., [&#160;&#160;&#160;&#160;]
Baskets) or less.</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: 24.5pt"> None of the Trust, Sponsor, the Transfer Agent,
the Bitcoin Custodian or the Cash Custodian will be liable for the rejection of any purchase order or Basket. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Creation and Redemption Transaction Fee </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"> To compensate for expenses incurred in connection
with the creation and redemption of Baskets, an Authorized Participant is required to pay a transaction fee to create or redeem Baskets.
In connection with a cash creation order or cash redemption order, an Authorized Participant is responsible for the cash transaction
fee, which consist of the operational processing and brokerage costs, transfers fees, network fees and stamp taxes. The transaction fee
may be reduced, increased or otherwise changed by the Sponsor. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Authorized Participants are responsible for any
transfer tax, sales or use tax, stamp tax, recording tax, value added tax or similar tax or governmental charge applicable to the creation
or redemption of Baskets, regardless of whether or not such tax or charge is imposed directly on the Authorized Participant, and agree
to indemnify the Sponsor and the Trust if they are required by law to pay any such tax, together with any applicable penalties, additions
to tax and interest thereon.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">As discussed above, Authorized Participants are
the only persons that may place orders to create and redeem Baskets. Authorized Participants must be registered broker-dealers or other
securities market participants, such as banks and other financial institutions that are not required to register as broker-dealers to
engage in securities transactions. An Authorized Participant is under no obligation to create or redeem Baskets, and an Authorized Participant
is under no obligation to offer to the public Shares of any Baskets it does create.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Authorized Participants that do offer to the
public Shares from the Baskets they create will do so at per-Share offering prices that are expected to reflect, among other factors,
the trading price of the Shares on the Exchange, the NAV of the Trust at the time the Authorized Participant purchased the Baskets, the
NAV of the Shares at the time of the offer of the Shares to the public, the supply of and demand for Shares at the time of sale, and
the liquidity of bitcoin or other portfolio investments. Baskets are generally redeemed when the price per Share is at a discount to
the NAV per Share. Shares initially comprising the same Basket but offered by Authorized Participants to the public at different times
may have different offering prices. An order for one or more Baskets may be placed by an Authorized Participant on behalf of multiple
clients. Authorized Participants who make deposits with the Trust in exchange for Baskets receive no fees, commissions or other forms
of compensation or inducement of any kind from either the Trust or the Sponsor and no such person has any obligation or responsibility
to the Sponsor or the Trust to effect any sale or resale of Shares. Shares trade in the secondary market on the Exchange.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"> Shares are expected to trade in the secondary
market on the Exchange. Shares may trade in the secondary market at prices that are lower (discount) or higher (premium) relative to
their NAV per Share. The amount of the discount or premium in the trading price relative to the NAV per Share may be influenced by various
factors, including the number of Shareholders who seek to purchase or sell Shares in the secondary market and the liquidity of bitcoin.
However, the Sponsor believes that the Basket size of 5,000 shares will enable Authorized Participants and market makers to manage inventory
and facilitate and effective arbitrage mechanism for the Trust. In addition, an investor may incur costs attributable to the difference
between the highest price a buyer is willing to pay to purchase shares (bid) and the lowest price a seller is willing to accept for shares
(ask) when buying and selling shares in the secondary market (the &ldquo;bid/ask spread&rdquo;). </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</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>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 6.05pt 0pt 0; text-indent: 22.5pt"> Proceeds received by the Trust
from the issuance and sale of Baskets, other than the initial seed capital, consist of bitcoin and cash. Bitcoin deposits are held by
the Bitcoin Custodian or Prime Broker on behalf of the Trust until (1) delivered to Authorized Participants in connection with redemptions
of Baskets or (2) sold to pay fees due to the Sponsor and Trust expenses and liabilities not assumed by the Sponsor. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"> The beneficial interest in the Trust is divided
into shares. Each Share of the Trust represents an equal beneficial interest in the net assets of the Trust, and each holder of Shares
is entitled to receive such holder&rsquo;s pro rata share of distributions of income and capital gains, if any. The Shares of the Trust
will be listed for trading, subject to notice of issuance, on the Exchange under the symbol &ldquo;BTCW.&rdquo; The Trust&rsquo;s Shares
may be bought and sold in the secondary market like any other exchange-listed security. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"> All Shares are transferable, fully paid and
non-assessable. No Share will have any priority or preference over any other Share of the Trust. All distributions, if any, will be made
ratably among all Shareholders from the assets of the Trust according to the number of Shares held of record by such Shareholders on
the record date for any distribution or on the date of termination of the Trust, as the case may be. Except as otherwise provided by
the Sponsor, Shareholders will have no preemptive or other right to subscribe to any additional Shares or other securities issued by
the Trust. Every Shareholder, by virtue of having purchased or acquired one or more Shares, shall have expressly consented and agreed
to be bound by the terms of the Trust Agreement. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The Sponsor will have full power and authority,
in its sole discretion, without seeking the approval of the Trustee or the Shareholders (a)&#160;to establish and designate and to change
in any manner and to fix such preferences, voting powers, rights, duties and privileges of the Trust as the Sponsor may from time to
time determine, (b)&#160;to divide the beneficial interest in the Trust into an unlimited amount of Shares, with or without par value,
as the Sponsor will determine, (c)&#160;to issue Shares without limitation as to number (including fractional shares), to such persons
and for such amount of consideration, subject to any restriction set forth in the by-laws of the Trust, if any, at such time or times
and on such terms as the Sponsor may deem appropriate, (d)&#160;to divide or combine the Shares into a greater or lesser number without
thereby materially changing the proportionate beneficial interest of the Shares in the assets held, and (e)&#160;to take such other action
with respect to the shares as the Sponsor may deem desirable. The ownership of Shares will be recorded on the books of the Trust or a
transfer or similar agent for the Trust. No certificates certifying the ownership of Shares will be issued except as the Sponsor may
otherwise determine from time to time. The Sponsor may make such rules as it considers appropriate for the issuance of share certificates,
transfer of Shares and similar matters. The record books of the Trust as kept by the Trust, or any transfer or similar agent, as the
case may be, will be conclusive as to the identity of the Shareholders and as to the number of Shares held from time to time by each.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Description of Limited Rights </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"> 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;
however, the DSTA does provide shareholders the right to bring &ldquo;oppression&rdquo; or &ldquo;derivative&rdquo; actions. All of the
Shares are of the same class with equal rights and privileges. Each of the Shares is transferable through the book-entry system of DTC,
is fully paid and nonassessable. Shareholders have the right to vote only if expressly required under Delaware or federal law or rules
or regulations of the Exchange, or if submitted to the Shareholders by the Sponsor in its sole discretion. The Shares do not entitle
their holders to any conversion or pre-emptive rights or any redemption rights or rights to distributions. See &ldquo;Management; Voting
by Shareholders.&rdquo; </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&#160;</B></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>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&#160;</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Shareholders are 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 Fund.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Prospective investors should be aware that the
Sponsor presently intends to assert that Shareholders have, by subscribing for Shares, consented to the conflicts of interest described
below 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">&#160;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"> The officers, directors and personnel providing
services with respect to the Sponsor do not devote their time exclusively to the Trust. These persons are directors, officers or employees
of other entities, including affiliates of the Sponsor, which may compete with the Trust for their services. They could have a conflict
between their responsibilities to the Trust and to those other entities. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The Sponsor has sole current authority to manage
the investments and operations of the Trust, and this may allow it to act in a way that furthers its own interests which may create a
conflict with your best interests. Shareholders have very limited voting rights, which will limit their ability to influence matters
such as amendment of the Trust Agreement, change in the Trust&#8217;s basic investment policy, dissolution of the Trust, or the sale
or distribution of the Trust&#8217;s assets.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> <B>Prime Broker</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: 24.5pt"> The Trust may engage in sales of bitcoin by
placing orders with the Prime Broker. The Prime Broker will route orders placed by the Sponsor through the prime broker execution platform
(the &ldquo;Trading Platform&rdquo;) to a connected Trading Venue where the order will be executed. Each order placed by the Sponsor
will be sent, processed and settled at each connected Trading Venue to which it is routed. The Prime Broker Agreement provides that the
Prime Broker is subject to certain conflicts of interest, including: (i) the Trust&rsquo;s orders may be routed to the Prime Broker&rsquo;s
own execution venue where the Trust&rsquo;s orders may be executed against other customers of the Prime Broker or with the Coinbase acting
as principal, (ii) the beneficial identity of the counterparty purchaser or seller with respect to the Trust&rsquo;s orders may be unknown
and therefore may inadvertently be another client of the Prime Broker, (iii) the Prime Broker does not engage in front-running, but is
aware of the Trust&rsquo;s orders or imminent orders and may execute a trade for its own inventory (or the account of an affiliate) while
in possession of that knowledge and (iv) the Prime Broker may act in a principal capacity with respect to certain orders. As a result
of these and other conflicts, when acting as principal, the Prime Broker may have an incentive to favor its own interests and the interests
of its affiliates over the Trust&rsquo;s interests. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 10pt"><B>Proprietary </B></FONT><B>and Individual
<FONT STYLE="font-size: 10pt">Trading/Other Clients </FONT></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"> The Sponsor and its respective directors,
officers, employees and/or affiliates (and the affiliates&rsquo; directors, officers and employees) may trade in the bitcoin, cryptocurrency,
derivative or other markets for their own accounts and for the accounts of their clients (such transactions may occur prior to, during,
or after the commencement of this offering), and in doing so may take positions opposite to those held by the Trust or ahead of may compete
with the Trust for positions in the marketplace. Such trading may create conflicts of interest on behalf of one or more such persons
in respect of their obligations to the Trust. Further, such transactions may not serve to benefit the Shareholders of the Trust and may
have a positive or negative effect on the value of the bitcoin held by the Trust and, consequently, on the market value of bitcoin. There
can be no assurance that any of the foregoing will not have an adverse effect on the performance of the Trust or its Shares. Records
of proprietary trading and trading on behalf of other clients will not be available for inspection by Shareholders. Internal written
trading policies will also not be available for inspection by Shareholders. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"> Because the Sponsor and its respective directors,
officers, employees and/or affiliates (and the affiliates&rsquo; directors, officers and employees) may trade for their own accounts
at the same time that the Sponsor is managing the Trust, prospective investors should be aware that such persons may from time-to-time
take positions in their proprietary accounts which are opposite, or ahead of, the positions taken for the Trust and proprietary accounts
may receive preferential treatment as it relates to the pool. </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">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Resolution of Conflicts Procedures </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The Trust Agreement provides that whenever a
conflict of interest exists between the Sponsor or any of its affiliates, on the one hand, and the Trust or any Shareholders or any other
person, on the other hand, the Sponsor will resolve such conflict of interest considering the relative interest of each party (including
its own interest) and the benefits and burdens relating to such interests, any customary or accepted industry practices, and any applicable
accepted accounting practices or principles.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> <B>Code of Conduct</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: 24.5pt"> The Sponsor has a Code of Conduct that applies to those personnel
of the Sponsor whose regular functions or duties involve making, participating in, or obtaining information regarding the purchase or
sale of bitcoin by the Trust, and requires pre-clearance of bitcoin by such persons. </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"><B>&#160;</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Under the Declaration of Trust, the Trustee has
delegated to the Sponsor the exclusive power and authority to manage the business and affairs of the respective Trust. The duties of
the Sponsor with respect to the Trust includes but are not limited to:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

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                                            of the Shares for public offering in the United States and the listing of the Shares;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 15.75pt">&#8226;</TD><TD>selecting the service providers and negotiating the applicable
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 15.75pt">&#8226;</TD><TD>developing and administering a marketing plan for the Fund
                                            and preparing marketing materials regarding the Shares, in each case in conjunction with
                                            the Marketing Agent;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 15.75pt">&#8226;</TD><TD>facilitating the available of a website for the Trust&#8217;s
                                            materials; and</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 15.75pt">&#8226;</TD><TD>performing such other services as the Sponsor believes that
                                            the Trust may from time to time require.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">To the extent that a law (common or statutory)
or in equity, the Sponsor has duties (including fiduciary duties) and liabilities relating thereto to the Trust, the Shareholders or
to any other person, the Sponsor will not be liable to the Trust, the Shareholders or to any other person for its good faith reliance
on the provisions of the Trust Agreement or this Prospectus unless such reliance constitutes gross negligence, bad faith, or willful
misconduct on the part of the Sponsor.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The Trustee will not be liable for the acts or
omissions of the Sponsor, nor will the Trustee be liable for supervising or monitoring the performance and the duties and obligations
of the Sponsor or the Trust under the Trust Agreement. The Trustee will not be personally liable under any circumstances, except for
its own willful misconduct, bad faith or gross negligence. In particular, but not by way of limitation:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">[&#160;&#160;&#160;&#160;]</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The Trustee or any officer, affiliate, director,
employee, or agent of the Trustee (each, an &#8220;Indemnified Person&#8221;) will be entitled to indemnification from the Sponsor or
the Trust, to the fullest extent permitted by law, from and against any and all losses, claims, taxes, damages, reasonable expenses,
and liabilities (including liabilities under State or federal securities laws) of any kind and nature whatsoever (collectively, &#8220;Expenses&#8221;),
to the extent that such Expenses arise out of or are imposed upon or asserted against such Indemnified Persons with respect to the creation,
operation or termination of the Trust, the execution, delivery or performance of the Trust Agreement or the transactions contemplated
in the Trust Agreement; provided, however, that the Sponsor and the Trust will not be required to indemnify any Indemnified Person for
any Expenses that are a result of the willful misconduct, bad faith or gross negligence of such Indemnified Person. The obligations of
the Sponsor and the Trust to indemnify the Indemnified Persons will survive the termination of the Trust Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The Sponsor will not be under any liability to
the Trust, the Trustee or any Shareholder for any action taken or for refraining from the taking of any action in good faith pursuant
to the Trust Agreement, or for errors in judgment or for depreciation or loss incurred by reason of the sale of any bitcoin or other
assets held in trust hereunder; provided, however, that this provision will not protect the Sponsor against any liability to which it
would otherwise be subject by reason of its own gross negligence, bad faith, or willful misconduct. The Sponsor</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">may rely in good faith on any paper, order, notice, list, affidavit,
receipt, evaluation, opinion, endorsement, assignment, draft or any other document of any kind prima facie properly executed and submitted
to it by the Trustee, the Trustee&#8217;s counsel or by any other Person for any matters arising hereunder. The Sponsor will in no event
be deemed to have assumed or incurred any liability, duty, or obligation to any Shareholder or to the Trustee other than as expressly
provided for herein.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</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">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The Sponsor and its shareholders, members, directors,
officers, employees, Affiliates and subsidiaries (each a &#8220;Sponsor Indemnified Party&#8221;) will be indemnified by the Trust and
held harmless against any loss, liability or expense incurred hereunder without gross negligence, bad faith, or willful misconduct on
the part of such Sponsor Indemnified Party arising out of or in connection with the performance of its obligations under the Trust Agreement
or any actions taken in accordance with the provisions of the Trust Agreement. Any amounts payable to a Sponsor Indemnified Party under
Section [&#160;&#160;&#160;&#160;] of the Trust Agreement may be payable in advance or will be secured by a lien on the Trust. The Sponsor
will not be under any obligation to appear in, prosecute or defend any legal action that in its opinion may involve it in any expense
or liability; provided, however, that the Sponsor may, in its discretion, undertake any action that it may deem necessary or desirable
in respect of the Trust Agreement and the rights and duties of the parties hereto and the interests of the Shareholders and, in such
event, the legal expenses and costs of any such action will be expenses and costs of the Trust and the Sponsor will be entitled to be
reimbursed therefor by the Trust. The obligations of the Trust to indemnify the Sponsor Indemnified Parties will survive the termination
of the Trust Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&#160;</B></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>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&#160;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>PROVISIONS OF FEDERAL AND STATE SECURITIES
LAWS </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">This offering is made pursuant to federal and
state securities laws. The SEC and state securities agencies take the position that indemnification of the Sponsor that arises out of
an alleged violation of such laws is prohibited unless certain conditions are met.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">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)&#160;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)&#160;such claim has been dismissed with prejudice on the merits by a court of competent jurisdiction as to the party seeking indemnification;
or (iii)&#160;a court of competent jurisdiction approves a settlement of the claims against the party seeking indemnification and finds
that indemnification of the settlement and related costs should be made, provided that, before seeking such approval, the Sponsor or
other indemnitee must apprise the court of the position held by regulatory agencies against such indemnification. These agencies are
the SEC and the securities administrator of the state or states in which the plaintiffs claim they were offered or sold interests.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"> Insofar as indemnification for liabilities
arising under the 1933 Act may be permitted to directors, officers or persons controlling the Trust pursuant to the foregoing provisions,
the Trust has been informed that in the opinion of the SEC such indemnification is against public policy as expressed in the 1933 Act
and is therefore unenforceable. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt"> The Shareholders do not generally have any
voting rights. The Shares do not represent a traditional investment and are not similar to shares of a corporation operating a business
enterprise with management and a board of directors. All Shares are of the same class with equal rights and privileges. The Shares do
not entitle their holders to any conversion or pre-emptive rights or any redemption rights. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 55.1pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt"> The Shareholders of the Trust take no part
in the management or control, and have no voice in, the Trust&rsquo;s operations or business. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt">The Sponsor generally has the right to amend
the Trust Agreement as it applies to the Trust provided that the Shareholders have the right to vote only if expressly required under
Delaware or federal law or rules or regulations of the Exchange, or if submitted to the Shareholders by the Sponsor in its sole discretion.
No amendment affecting the Trustee will be binding upon or effective against the Trustee unless consented to by the Trustee in the form
of an instruction letter.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The Trust does not have any directors, officers
or employees. The creation and operation of the Trust has been arranged by the Sponsor. The Sponsor is not governed by a board of directors.
However, the Sponsor is supported by principals and executive officers who perform certain functions that, if the Trust had directors
or executive officers, would typically be performed by them. See &#8220;The Trust&#8217;s Service Providers&#8212;The Sponsor&#8221;
for biographical information of the Sponsor&#8217;s principals and key personnel.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The Trust keeps its books of record and account
at the office of the Sponsor located at 250 West 34th Street, 3rd Floor, New York, NY 10119, 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&#8217;s satisfaction that such person is a Shareholder upon reasonable advance
notice at all reasonable times during usual business hours of the Trust.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The Trust keeps a copy of the Trust Agreement
on file in the Sponsor&#8217;s office which will be available for inspection by any Shareholder at all times during its usual business
hours upon reasonable advance notice.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</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>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>STATEMENTS, FILINGS, AND REPORTS TO SHAREHOLDERS
</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">After the end of each fiscal year, the Sponsor
will cause to be prepared an annual report for the Trust containing audited financial statements. The annual report will be in such form
and contain such information as will be required by applicable laws, rules and regulations and may contain such additional information
which the Sponsor determines shall be included. The annual report will be filed with the SEC and the Exchange and will be distributed
to such persons and in such manner, as is required by applicable laws, rules and regulations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The Sponsor is responsible for the registration
and qualification of the Shares under the federal securities laws. The Sponsor will also prepare, or cause to be prepared, and file any
periodic reports or updates required under the Exchange Act. The Administrator will assist and support the Sponsor in the preparation
of such reports.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The Administrator will make such elections, file
such tax returns, and prepare, disseminate and file such tax reports, as it is advised to by its counsel or accountants or as required
from time to time by any applicable statute, rule or regulation.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The fiscal year of the Trust is the calendar year. The Sponsor may
select an alternate fiscal year.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>GOVERNING LAW; CONSENT TO DELAWARE JURISDICTION
</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">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
except for causes of action for violation of U.S. federal or state securities laws. 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, provided that (i) the forum selection provisions do not apply to suits brought to enforce a duty or liability
created by the Exchange Act or any other claim for which the federal courts have exclusive jurisdiction and (ii) the federal district
courts of the United States of America shall be the exclusive forum for the resolution of any complaint asserting a cause of action arising
under the Securities Act, or the rules and regulations promulgated thereunder. 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">&#160;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 24.45pt"><B>Litigation and Claims </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Within the past five years of the date of this
Prospectus, there have been no material administrative, civil or criminal actions against the Sponsor, the Trust or any principal or
affiliate of any of them. This includes any actions pending, on appeal, concluded, threatened, or otherwise known to them.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 24.45pt"><B>Legal Opinion </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Perkins Coie LLP has advised the Sponsor in connection
with the Shares being offered. Perkins Coie LLP also advises the Sponsor with respect to its responsibilities as sponsor of, and with
respect to matters relating to, the Trust. Certain opinions of counsel will be filed with the SEC as exhibits to the Registration Statement
of which this Prospectus is a part.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"> The financial statement of the WisdomTree
Bitcoin Fund as of [&nbsp;&nbsp;&nbsp;], 2023 has been included herein in reliance on the report of [&nbsp;&nbsp;&nbsp;], an independent registered public accounting firm,
given on the authority of said firm as experts in auditing and accounting. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</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>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>UNITED STATES FEDERAL INCOME TAX CONSEQUENCES
</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The following discussion of the material U.S.
federal income tax consequences that generally will apply to the purchase, ownership and disposition of Shares by a U.S. Shareholder
(as defined below), and certain U.S. federal income consequences that may apply to an investment in Shares by a Non-U.S. Shareholder
(as defined below), represents, insofar as it describes conclusions as to U.S. federal income tax law and subject to the limitations
and qualifications described therein, the opinion of Perkins Coie LLP, special U.S. federal income tax counsel to the Sponsor. The discussion
below is based on the Internal Revenue Code of 1986, as amended (the &#8220;Code&#8221;), Treasury Regulations promulgated thereunder
and judicial and administrative interpretations of the Code, all as in effect on the date of this Prospectus and all of which are subject
to change either prospectively or retroactively. The tax treatment of Shareholders may vary depending upon their own particular circumstances.
Certain Shareholders (including but not limited to banks, financial institutions, insurance companies, regulated investment companies,
real estate investment trusts, tax-exempt organizations, tax-exempt or tax- advantaged retirement plans or accounts, brokers or dealers,
traders, partnerships for U.S. federal income tax purposes, persons holding Shares as a position in a &#8220;hedging,&#8221; &#8220;straddle,&#8221;
&#8220;conversion,&#8221; &#8220;constructive sale&#8221; or other integrated transaction for U.S. federal income tax purposes, persons
whose &#8220;functional currency&#8221; is not the U.S. dollar, persons required for U.S. federal income tax purposes to accelerate the
recognition of any item of gross income with respect to the Shares as a result of such income being recognized on an applicable financial
statement, or other investors with special circumstances) may be subject to special rules not discussed below. In addition, the following
discussion applies only to Shareholders who will hold Shares as &#8220;capital assets&#8221; (generally, property held for investment).
Moreover, the discussion below does not address the effect of any state, local or foreign tax law consequences that may apply to an investment
in Shares. Purchasers of Shares are urged to consult their own tax advisers with respect to all federal, state, local and foreign tax
law considerations potentially applicable to their investment in Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">For purposes of this discussion, a &#8220;U.S. Shareholder&#8221;
is a Shareholder that is:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

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<TD STYLE="width: 0"></TD><TD STYLE="width: 15.75pt">&#8226;</TD><TD>an individual who is treated as a citizen or resident of
                                            the United States for U.S. federal income tax purposes;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 15.75pt">&#8226;</TD><TD>a corporation (or entity treated as a corporation for U.S.
                                            federal income tax purposes) created or organized in or under the laws of the United States,
                                            any state thereof or the District of Columbia;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 15.75pt">&#8226;</TD><TD>an estate, the income of which is includible in gross income
                                            for U.S. federal income tax purposes regardless of its source; or</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

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<TD STYLE="width: 0"></TD><TD STYLE="width: 15.75pt">&#8226;</TD><TD>a trust, if a court within the United States is able to exercise
                                            primary supervision over the administration of the trust and one or more United States persons
                                            have the authority to control all substantial decisions of the trust.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">If a partnership or other entity or arrangement
treated as a partnership for U.S. federal income tax purposes holds Shares, the tax treatment of a partner generally depends upon the
status of the partner and the activities of the partnership. If you are a partner of a partnership holding Shares, the discussion below
may not be applicable and we urge you to consult your own tax adviser for the U.S. federal income tax implications of the purchase, ownership
and disposition of such Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Taxation of the Trust </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The Sponsor and the Trustee will treat the Trust
as a &#8220;grantor trust&#8221; for U.S. federal income tax purposes. In the opinion of Perkins Coie LLP, although not free from doubt
due to the lack of directly governing authority, the Trust should be classified as a &#8220;grantor trust&#8221; for U.S. federal income
tax purposes (and the following discussion assumes such classification). As a result, the Trust itself should not be subject to U.S.
federal income tax. Instead, the Trust&#8217;s income and expenses should &#8220;flow through&#8221; to the Shareholders, and the Trustee
will report the Trust&#8217;s income, gains, losses and deductions to the IRS on that basis. The opinion of Perkins Coie LLP is not binding
on the IRS or any court. Accordingly, there can be no assurance that the IRS will agree with the conclusions of counsel&#8217;s opinion
and it is possible that the IRS or another tax authority could assert a position contrary to one or all of those conclusions and that
a court could sustain that contrary position. Neither the Sponsor nor the Trustee will request a ruling from the IRS with respect to
the classification of the Trust for U.S. federal income tax purposes or with respect to any other matter. If the IRS were to assert successfully
that the Trust is not classified as a &#8220;grantor trust,&#8221; the Trust would likely be classified as a partnership for U.S. federal
income tax purposes, which may affect the timing and other tax consequences to the Shareholders, and might be classified as a publicly
traded partnership that would be taxable as a corporation for U.S. federal income tax purposes, in which case the Trust would be taxed
in the same manner as a regular corporation on its taxable income and distributions to Shareholders out of the earnings and profits of
the Trust would be taxed to Shareholders as ordinary dividend income. However, due to the uncertain treatment of digital currency for
U.S. federal income tax purposes, there can be no assurance in this regard. Except as otherwise indicated, the remainder of this discussion
assumes that the Trust is classified as a grantor trust for U.S. federal income tax purposes.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</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">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Taxation of U.S. Shareholders </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Shareholders will be treated, for U.S. federal
income tax purposes, as if they directly owned a pro rata share of the underlying assets held in the Trust. Shareholders also will be
treated as if they directly received their respective pro rata shares of the Trust&#8217;s income, if any, and as if they directly incurred
their respective pro rata shares of the Trust&#8217;s expenses. In the case of a Shareholder that acquires its Shares as part of the
creation of a Basket, the delivery of bitcoin to the Trust in exchange for a pro rata share of the underlying bitcoin represented by
the Shares will not be a taxable event to the Shareholder, and the Shareholder&#8217;s tax basis and holding period for the Shareholder&#8217;s
pro rata share of the bitcoin held in the Trust will be the same as its tax basis and holding period for the bitcoin delivered in exchange
therefor. For purposes of this discussion, and unless stated otherwise, it is assumed that all of a Shareholder&#8217;s Shares are acquired
on the same date and at the same price per Share. Shareholders that hold multiple lots of Shares, or that are contemplating acquiring
multiple lots of Shares, should consult their own tax advisers as to the determination of the tax basis and holding period for the underlying
bitcoin related to such Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Current IRS guidance on the treatment of convertible
virtual currencies classifies bitcoin as &#8220;property&#8221; that is not currency for U.S. federal income tax purposes and clarifies
that bitcoin could be held as a capital asset, but it does not address several other aspects of the U.S. federal income tax treatment
of bitcoin. Because bitcoin is a new technological innovation, the U.S. federal income tax treatment of bitcoin or transactions relating
to investments in bitcoin may evolve and change from those discussed below, possibly with retroactive effect. In this regard, the IRS
indicated that it has made it a priority to issue additional guidance related to the taxation of virtual currency transactions, such
as transactions involving bitcoin. While it has started to issue such additional guidance, whether any future guidance will adversely
affect the U.S. federal income tax treatment of an investment in bitcoin or in transactions relating to investments in bitcoin is unknown.
Moreover, future developments that may arise with respect to digital currencies may increase the uncertainty with respect to the treatment
of digital currencies for U.S. federal income tax purposes. This discussion assumes that any bitcoin the Trust may hold is properly treated
for U.S. federal income tax purposes as property that may be held as a capital asset and is not currency for purposes of the provisions
of the Code relating to foreign currency gain and loss.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Although the Trust does not intend to sell bitcoin,
it will use bitcoin to pay certain expenses of the Trust, which under current IRS guidance will be treated as a sale of such bitcoin.
If the Trust sells bitcoin (for example to generate cash to pay fees or expenses) or is treated as selling bitcoin (for example by using
bitcoin to pay fees or expenses), a Shareholder will recognize gain or loss in an amount equal to the difference between (a)&#160;the
Shareholder&#8217;s pro rata share of the amount realized by the Trust upon the sale and (b)&#160;the Shareholder&#8217;s tax basis for
its pro rata share of the bitcoin that was sold. A Shareholder&#8217;s tax basis for its share of any bitcoin sold by the Trust should
generally be determined by multiplying the Shareholder&#8217;s total basis for its share of all of the bitcoin held in the Trust immediately
prior to the sale, by a fraction the numerator of which is the amount of bitcoin sold, and the denominator of which is the total amount
of the bitcoin held in the Trust immediately prior to the sale. After any such sale, a Shareholder&#8217;s tax basis for its pro rata
share of the bitcoin remaining in the Trust should be equal to its tax basis for its share of the total amount of the bitcoin held in
the Trust immediately prior to the sale, less the portion of such basis allocable to its share of the bitcoin that was sold.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Upon a Shareholder&#8217;s sale of some or all
of its Shares, the Shareholder will be treated as having sold the portion or all, respectively, of its pro rata share of the bitcoin
held in the Trust at the time of the sale that is attributable to the Shares sold. Accordingly, the Shareholder generally will recognize
gain or loss on the sale in an amount equal to the difference between (a)&#160;the amount realized pursuant to the sale of the Shares,
and (b)&#160;the Shareholder&#8217;s tax basis for the portion of its pro rata share of the bitcoin held in the Trust at the time of
sale that is attributable to the Shares sold, as determined in the manner described in the preceding paragraph. Based on current IRS
guidance, such gain or loss (as well as any gain or loss realized by a Shareholder on account of the Trust selling bitcoin) will generally
be long-term or short-term capital gain or loss, depending upon whether the Shareholder has a holding period of greater than one year
in its pro rata share of the bitcoin that was sold.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">A redemption of some or all of a Shareholder&#8217;s
Shares in exchange for the underlying bitcoin represented by the Shares redeemed generally will not be a taxable event to the Shareholder.
The Shareholder&#8217;s tax basis for the bitcoin received in the redemption generally will be the same as the Shareholder&#8217;s tax
basis for the portion of its pro rata share of the bitcoin held in the Trust immediately prior to the redemption that is attributable
to the Shares redeemed. The Shareholder&#8217;s holding period with respect to the bitcoin received should include the period during
which the Shareholder held the Shares redeemed. A subsequent sale of the bitcoin received by the Shareholder will be a taxable event,
unless a nonrecognition provision of the Code applies to such sale.</P>

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

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">After any sale or redemption of less than all
of a Shareholder&#8217;s Shares, the Shareholder&#8217;s tax basis for its pro rata share of the bitcoin held in the Trust immediately
after such sale or redemption generally will be equal to its tax basis for its share of the total amount of the bitcoin held in the Trust
immediately prior to the sale or redemption, less the portion of such basis which is taken into account in determining the amount of
gain or loss recognized by the Shareholder upon such sale or, in the case of a redemption, that is treated as the basis of the bitcoin
received by the Shareholder in the redemption.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><FONT STYLE="font-size: 10pt">If a hard fork
occurs in the Bitcoin Blockchain, the Trust could hold both the original bitcoin and the alternative new asset. The IRS has held that
a har</FONT>d <FONT STYLE="font-size: 10pt">fork resulting in the creation of new units of cryptocurrency is a taxable event giving rise
to ordinary income. Moreover, the Trust Agreement requires that, if such a transaction occurs, the Trust will as soon as possible direct
the</FONT> Bitcoin <FONT STYLE="font-size: 10pt">Custodian to distribute the alternative new asset in-kind to the Sponsor, as agent for
the Shareholders, and the Sponsor will arrange to sell the new alternative asset and for the proceeds to be distributed to the Shareholders.
The receipt, distribution and/or sale of the new alternative asset may cause Shareholders to incur a U.S. federal income tax liability.
While the IRS has not addressed all situations in which airdrops occur, it is clear from the reasoning of the IRS&#8217;s current guidance
that it generally would treat an airdrop as a taxable event giving rise to ordinary income. </FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>3.8% Tax on Net Investment Income </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Certain U.S. Shareholders who are individuals
are required to pay a 3.8% tax on the lesser of the excess of their modified adjusted gross income over a threshold amount ($250,000
for married persons filing jointly and $200,000 for single taxpayers) or their &#8220;net investment income,&#8221; which generally includes
capital gains from the disposition of property. This tax is in addition to any capital gains taxes due on such investment income. A similar
tax applies to estates and trusts. U.S. Shareholders should consult their own tax advisers regarding the effect, if any, this tax may
have on their investment in the Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Brokerage Fees and Trust Expenses </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Any brokerage or other transaction fee incurred
by a Shareholder in purchasing Shares will be treated as part of the Shareholder&#8217;s tax basis in the underlying assets of the Trust.
Similarly, any brokerage fee incurred by a Shareholder in selling Shares will reduce the amount realized by the Shareholder with respect
to the sale.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Shareholders will be required to recognize the
full amount of gain or loss upon a sale or deemed sale of bitcoin by the Trust (as discussed above), even though some or all of the proceeds
of such sale are used by the Trustee to pay Trust expenses. Shareholders may deduct their respective pro rata shares of each expense
incurred by the Trust to the same extent as if they directly incurred the expense. Shareholders who are individuals, estates or trusts,
however, may be required to treat some or all of the expenses of the Trust as miscellaneous itemized deductions. An individual may not
deduct miscellaneous itemized deductions for tax years beginning after December&#160;31, 2017, and before January&#160;1, 2026. For tax
years beginning after December&#160;31, 2025, individuals may deduct certain miscellaneous itemized deductions only to the extent they
exceed in the aggregate 2% of the individual&#8217;s adjusted gross income. Similar rules apply to certain miscellaneous itemized deductions
of estates and trusts. In addition, such deductions may be subject to phase outs and other limitations under applicable provisions of
the Code.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Investment by Certain Retirement Plans </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Individual retirement accounts (&#8220;IRAs&#8221;)
and participant-directed accounts under tax-qualified retirement plans are limited in the types of investments they may make under the
Code. Potential purchasers of Shares that are IRAs or participant-directed accounts under a Code section 401(a) plan should consult with
their own tax advisors as to the tax consequences of a purchase of Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>United States Information Reporting and Backup Withholding </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The Trustee will file certain information returns
with the IRS, and provide certain tax-related information to Shareholders, in connection with the Trust. To the extent required by applicable
regulations, each Shareholder will be provided with information regarding its allocable portion of the Trust&#8217;s annual income, expenses,
gains and losses (if any). A U.S. Shareholder may be subject to United States backup withholding tax in certain circumstances unless
it provides its taxpayer identification number and complies with certain certification procedures. Non-U.S. Shareholders may have to
comply with certification procedures to establish that they are not a United States person, and some Non-U.S. Shareholders may be required
to meet certain information reporting or certification requirements imposed by the Foreign Account Tax Compliance Act, in order to avoid
certain information reporting and withholding tax requirements.</P>

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

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The amount of any backup withholding will be
allowed as a credit against a Shareholder&#8217;s U.S. federal income tax liability and may entitle the Shareholder to a refund, provided
that the required information is furnished to the IRS in a timely manner.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Taxation in Jurisdictions Other Than the United States </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Prospective purchasers of Shares that are based
in or acting out of a jurisdiction other than the United States are advised to consult their own tax advisers as to the tax consequences
under the laws of such jurisdiction (or any other jurisdiction other than the United States to which they are subject) of their purchase,
holding, sale and redemption of or any other dealing in Shares and, in particular, as to whether any value added tax, other consumption
tax or transfer tax is payable in relation to such purchase, holding, sale, redemption or other dealing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>PROSPECTIVE SHAREHOLDERS ARE URGED TO CONSULT
THEIR TAX ADVISERS BEFORE DECIDING WHETHER TO INVEST IN THE SHARES OF THE TRUST.</B></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>PURCHASES BY EMPLOYEE BENEFIT PLANS </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The Employee Retirement Income Security Act of
1974 (&#8220;ERISA&#8221;) and/or Section&#160;4975 of the Code impose certain requirements on:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">(i) employee benefit plans and certain other
plans and arrangements, including individual retirement accounts and annuities, Keogh plans and certain collective investment funds or
insurance company general or separate accounts in which such plans or arrangements are invested, that are subject to Title I of ERISA
and/or Section&#160;4975 of the Code (collectively, &#8220;Plans&#8221;); and (ii)&#160;persons who are fiduciaries with respect to the
investment of assets treated as &#8220;plan assets&#8221; within the meaning of U.S. Department of Labor (the &#8220;DOL&#8221;) regulation
29 C.F.R. &#167; 2510.3-101, as modified by Section&#160;3(42) of ERISA (the &#8220;Plan Assets Regulation&#8221;), of a Plan. Investments
by Plans are subject to the fiduciary requirements and the applicability of prohibited transaction restrictions under ERISA and the Code.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&#8220;Governmental plans&#8221; within the meaning
of Section&#160;3(32) of ERISA, certain &#8220;church plans&#8221; within the meaning of Section&#160;3(33) of ERISA and &#8220;non-U.S.
plans&#8221; described in Section&#160;4(b)(4) of ERISA, while not subject to the fiduciary responsibility and prohibited transaction
provisions of Title I of ERISA or Section&#160;4975 of the Code, may be subject to any federal, state, local, non-U.S. or other law or
regulation that is substantially similar to the foregoing provisions of ERISA and the Code. Fiduciaries of any such plans are advised
to consult with their counsel prior to an investment in the Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">In contemplating an investment of a portion of
Plan assets in the Shares, the Plan fiduciary responsible for making such investment should carefully consider, taking into account the
facts and circumstances of the Plan, the &#8220;Risk Factors&#8221; discussed above and whether such investment is consistent with its
fiduciary responsibilities. The Plan fiduciary should consider, among other issues, whether: (1)&#160;the fiduciary has the authority
to make the investment under the appropriate governing plan instrument; (2)&#160;the investment would constitute a direct or indirect
non-exempt prohibited transaction with a &#8220;party in interest&#8221; or &#8220;disqualified person&#8221; within the meaning of ERISA
and Section&#160;4975 of the Code respectively; (3)&#160;the investment is in accordance with the Plan&#8217;s funding objectives; and
(4)&#160;such investment is appropriate for the Plan under the general fiduciary standards of investment prudence and diversification,
taking into account the overall investment policy of the Plan, the composition of the Plan&#8217;s investment portfolio and the Plan&#8217;s
need for sufficient liquidity to pay benefits when due. When evaluating the prudence of an investment in the Shares, the Plan fiduciary
should consider the DOL&#8217;s regulation on investment duties, which can be found at 29 C.F.R. &#167; 2550.404a-1.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><FONT STYLE="font-size: 10pt">It is intended
that: (a)&#160;none of the Sponsor, the Trustee, the</FONT> Bitcoin Custodian, the Cash <FONT STYLE="font-size: 10pt">Custodian or any
of their respective affiliates (the &#8220;Transaction Parties&#8221;) has through this report and related materials provided any investment
advice within the meaning of Section&#160;3(21) of ERISA to the Plan in connection with the decision to purchase or acquire such Shares;
and (b)&#160;the information provided in this report and related materials will not make a Transaction Party a fiduciary to the Plan.
</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">This Prospectus contains information you should
consider when making an investment decision about the Shares. You should rely only on the information contained in this Prospectus or
any applicable prospectus supplement. None of the Trust or the Sponsor has authorized any person to provide you with different information
and, if anyone provides you with different or inconsistent information, you should not rely on it. This Prospectus is not an offer to
sell the Shares in any jurisdiction where the offer or sale of the Shares is not permitted.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The information contained in this Prospectus
was obtained from us and other sources we believe to be reliable.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">You should disregard anything we said in an earlier
document that is inconsistent with what is included in this Prospectus or any applicable prospectus supplement. Where the context requires,
when we refer to this &#8220;Prospectus,&#8221; we are referring to this Prospectus and (if applicable) the relevant prospectus supplement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">You should not assume that the information in
this prospectus or any applicable prospectus supplement is current as of any date other than the date on the front page of this Prospectus
or the date on the front page of any applicable prospectus supplement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">We include cross references in this Prospectus
to captions in these materials where you can find further related discussions. The table of contents tells you where to find these captions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</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>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"> WisdomTree, Inc. is the licensor of certain
trademarks, service marks and trade names of the Trust. WisdomTree, Inc. also owns trademark registrations for the Sponsor. The Sponsor
relies upon these trademarks through which it markets its services and strives to build and maintain brand recognition in the market
and among current and potential investors. WisdomTree, Inc. is not responsible for, and has not participated in, the determination of
the timing, prices, or quantities of Shares of the Trust to be issued or in the determination or calculation of the equation by which
the Shares of the Fund are redeemable. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>WHERE YOU CAN FIND MORE INFORMATION </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"> The Sponsor has filed on behalf of the Trust
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 you may inspect, without charge, online at www.sec.gov. Information about the Trust or the Shares can also be obtained from the
Sponsor&rsquo;s website at www.wisdomtree.com/investments. This Internet address is only provided here as a convenience to you, and the
information contained on or connected to the Trust&rsquo;s website is not considered part of this prospectus. We will make available,
free of charge, on our website our Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K (including any amendments
thereto), proxy statements and other information filed with, or furnished to, the SEC, as soon as reasonably practicable after such documents
are so filed or furnished. </P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"> The Trust will be subject to the informational
requirements of the Exchange Act and the Sponsor will, on behalf of the Trust, file certain reports and other information with the SEC.
These filings will contain certain important information that does not appear in this prospectus. For further information about the Trust,
you may read and copy these filings at the SEC&rsquo;s Internet site (www.sec.gov), which also contains reports and other information
regarding issuers that file electronically with the SEC. </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>REPORT OF INDEPENDENT REGISTERED PUBLIC
ACCOUNTING FIRM</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: 24.5pt"> [To be provided by amendment] </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</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>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In this Prospectus, each of the following terms have the meanings
set forth after such term:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#8220;1933 Act&#8221;: The Securities Act of 1933.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#8220;1940 Act&#8221;: Investment Company Act of 1940.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#8220;Authorized Participant&#8221;: One that purchases or redeems
Baskets from or to the Trust.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> &ldquo;Basket&rdquo;: A block of 5,000 Shares used by the Trust
to issue or redeem Shares. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#8220;Basket Deposit&#8221;: The total deposit required to create
each Basket.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 10pt">&#8220;</FONT>Bitcoin <FONT STYLE="font-size: 10pt">Custodian&#8221;:
</FONT>Coinbase Custodian Trust Company LLC</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#8220;Business Day&#8221;: Any day other than a day when the Exchange
or the New York Stock Exchange is closed for regular trading.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> &quot;Cash Custodian&rdquo;: State Street Bank and Trust Company
.. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#8220;CEA&#8221;: Commodity Exchange Act.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#8220;CFTC&#8221;: Commodity Futures Trading Commission, an independent
agency with the mandate to regulate commodity futures and options in the United States.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#8220;Code&#8221;: Internal Revenue Code of 1986, as amended.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#8220;DTC&#8221;: The Depository Trust Company. DTC will act as the
securities depository for the Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#8220;DTC Participant&#8221;: An entity that has an account with
DTC.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#8220;Exchange&#8221;: Cboe BZX Exchange, Inc.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#8220;Exchange Act&#8221;: The Securities Exchange Act of 1934.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#8220;FINRA&#8221;: Financial Industry Regulatory Authority, formerly
the National Association of Securities Dealers.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> &ldquo;Fund Accountant&rdquo;: State Street Bank and Trust Company. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#8220;Indirect Participants&#8221;: Banks, brokers, dealers and trust
companies that clear through or maintain a custodial relationship with a DTC Participant, either directly or indirectly.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#8220;IRS&#8221;: U.S. Internal Revenue Service.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#8220;Marketing Agent&#8221;: Foreside Fund Services, LLC.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#8220;NAV&#8221;: Net asset value of the Trust.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#8220;NFA&#8221;: National Futures Association.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#8220;Redemption Order Date&#8221;: The date a redemption order is
received in satisfactory form and approved. &#8220;Register&#8221;: The record of all shareholders and holders
of the Shares in certificated form kept by the Administrator.</P>

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

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#8220;SEC&#8221;: The U.S. Securities and Exchange Commission.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#8220;Shares&#8221;: Common shares representing fractional undivided
beneficial interests in the Trust.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#8220;Shareholders&#8221;: Holders of Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> &ldquo;Transfer Agent&rdquo;: State Street Bank and Trust Company. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> &ldquo;Trust Administrator&rdquo;: State Street Bank and Trust
Company . </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"> &ldquo;Trust Agreement&rdquo;: Declaration of Trust and Trust Agreement
of WisdomTree Bitcoin Fund. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#8220;The Sponsor&#8221;: WisdomTree Digital Commodity Services,
LLC, a Delaware limited liability company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> &ldquo;The Trust&rdquo;: WisdomTree Bitcoin Fund. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#8220;Trustee&#8221;: Delaware Trust Company, a Delaware trust company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#8220;You&#8221;: The owner or holder of Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</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>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</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"><B>&#160;</B></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; text-align: center; margin-top: 0pt; margin-bottom: 0pt">_______________________________</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in"><B>[&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;],
2023 </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> Until [&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;],
2024 (25 calendar days after the date of this Prospectus) all dealers that effect transactions in these securities, whether or not participating
in this offering, may be required to deliver a Prospectus. This is in addition to the dealers&#8217; obligation to deliver a Prospectus
when acting as underwriters and with respect to their unsold allotments or subscriptions. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&#160;</B></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>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&#160;</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>INFORMATION NOT REQUIRED IN PROSPECTUS </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Item&#160;13. <I>Other Expenses of Issuance and Distribution.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Set forth below is an estimate (except as indicated)
of the amount of fees and expenses (other than underwriting commissions and discounts) payable by the registrant in connection with the
issuance and distribution of the Shares pursuant to the Prospectus contained in</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-left: auto; border-collapse: collapse; width: 80%; margin-right: auto">
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  <TR STYLE="vertical-align: bottom; background-color: White">
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  <TR STYLE="vertical-align: bottom; background-color: White">
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    <TD STYLE="text-align: left">&#160;</TD><TD STYLE="text-align: right">&#160;</TD><TD STYLE="white-space: nowrap; text-align: left">&#160;</TD><TD>&#160;</TD>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 13.5pt">*</TD><TD>To be provided by amendment.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Item&#160;14. <I>Indemnification of Directors and Officers.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The Trust Agreement provides that the Sponsor
and its shareholders, members, directors, officers, employees, Affiliates and subsidiaries (each a &#8220;Sponsor Indemnified Party&#8221;)
will be indemnified by the Trust and held harmless against any loss, liability or expense incurred under the Trust Agreement without
gross negligence, bad faith, or willful misconduct on the part of such Sponsor Indemnified Party arising out of or in connection with
the performance of its obligations hereunder or any actions taken in accordance with the provisions of the Trust Agreement. Any amounts
payable to a Sponsor Indemnified Party under the Trust Agreement may be payable in advance or will be secured by a lien on the Trust.
The Sponsor will not be under any obligation to appear in, prosecute or defend any legal action that in its opinion may involve it in
any expense or liability; provided, however, that the Sponsor may, in its discretion, undertake any action that it may deem necessary
or desirable in respect of the Trust Agreement and the rights and duties of the parties hereto and the interests of the Shareholders
and, in such event, the legal expenses and costs of any such action will be expenses and costs of the Trust and the Sponsor will be entitled
to be reimbursed therefor by the Trust. The obligations of the Trust to indemnify the Sponsor Indemnified Parties will survive the termination
of the Trust Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Item&#160;15. <I>Recent Sales of Unregistered Securities.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">None.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Item&#160;16. <I>Exhibits and Financial Statement Schedules.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.3in">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;Exhibits.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 24.45pt">The exhibits to this registration statement are listed
in the Exhibit Index to this registration statement, which is incorporated herein by reference.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.3in">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;Financial Statement
Schedules.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 55.05pt">Not applicable.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</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">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Item&#160;17. <I>Undertakings.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 24.45pt">The undersigned registrant hereby undertakes:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 27pt"></TD><TD STYLE="width: 22.05pt">(1)</TD><TD>To file, during any period in which offers or sales are being
                                            made, a post-effective amendment to this registration statement:</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 72pt"></TD><TD STYLE="width: 27pt">(i)</TD><TD>to include any prospectus required by section 10(a)(3) of the
                                            Securities Act of 1933;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 72pt"></TD><TD STYLE="width: 27pt">(ii)</TD><TD>to reflect in the prospectus any facts or events arising after
                                            the effective date of the registration statement (or the most recent post-effective amendment
                                            thereof) which, individually or in the aggregate, represent a fundamental change in the information
                                            set forth in the registration statement. Notwithstanding the foregoing, any increase or decrease
                                            in volume of securities offered (if the total dollar value of securities offered would not
                                            exceed that which was registered) and any deviation from the low or high end of the estimated
                                            maximum offering range may be reflected in the form of prospectus filed with the Commission
                                            pursuant to Rule 424(b) if, in the aggregate, the changes in volume and price represent no
                                            more than 20% change in the maximum aggregate offering price set forth in the &#8220;Calculation
                                            of Registration Fee&#8221; table in the effective registration statement; and</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 72pt"></TD><TD STYLE="width: 27pt">(iii)</TD><TD>to include any material information with respect to the plan
                                            of distribution not previously disclosed in the registration statement or any material change
                                            to such information in the registration statement;</TD></TR></TABLE>

<P STYLE="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: 24.5pt"> Provided, however, That paragraphs (1)(i),
(ii), and (iii) of this section do not apply if the registration statement is on Form S-1 and the information required to be included
in a post-effective amendment by those paragraphs is contained in reports filed with or furnished to the SEC by the registrant pursuant
to section 13 or section 15(d) of the 1934 Act that are incorporated by reference in the registration statement; and </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 27pt"></TD><TD STYLE="width: 22.05pt">(2)</TD><TD>That, for the purpose of determining any liability under the
                                            Securities Act of 1933, each such post-effective amendment shall be deemed to be a new registration
                                            statement relating to the securities offered therein, and the offering of such securities
                                            at that time shall be deemed to be the initial bona fide offering thereof.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 27pt"></TD><TD STYLE="width: 22.05pt">(3)</TD><TD>To remove from registration by means of a post-effective amendment
                                            any of the securities being registered which remain unsold at the termination of the offering.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 27pt"></TD><TD STYLE="width: 22.05pt">(4)</TD><TD>That, for the purpose of determining liability under the Securities
                                            Act of 1933 to any purchaser:</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 72pt"></TD><TD STYLE="width: 27pt">(i)</TD><TD>If the registrant is relying on Rule 430B:</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 117pt"></TD><TD STYLE="width: 27pt">(A)</TD><TD>each prospectus filed by the registrant pursuant to Rule 424(b)(3)
                                            shall be deemed to be part of the registration statement as of the date the filed prospectus
                                            was deemed part of and included in the registration statement; and</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 117pt"></TD><TD STYLE="width: 27pt">(B)</TD><TD>each prospectus required to be filed pursuant to Rule 424(b)(2),
                                            (b)(5), or (b)(7) as part of a registration statement in reliance on Rule 430B relating to
                                            an offering made pursuant to Rule 415(a)(1)(i), (vii), or (x)&#160;for the purpose of providing
                                            the information required by section 10(a) of the Securities Act of 1933 shall be deemed to
                                            be part of and included in the registration statement as of the earlier of the date such
                                            form of prospectus is first used after effectiveness or the date of the first contract of
                                            sale of securities in the offering described in the prospectus. As provided in Rule 430B,
                                            for liability purposes of the issuer and any person that is at that date an underwriter,
                                            such date shall be deemed to be a new effective date of the registration statement relating
                                            to the securities in the registration statement to which that prospectus relates, and the
                                            offering of such securities at that time shall be deemed to be the initial bona fide offering
                                            thereof. Provided, however, that no statement made in a registration statement or prospectus
                                            that is part of the registration statement or made in a document incorporated or deemed incorporated
                                            by reference into the registration statement or prospectus that is part of the registration
                                            statement will, as to a purchaser with a time of contract of sale prior to such effective
                                            date, supersede or modify any statement that was made in the registration statement or prospectus
                                            that was part of the registration statement or made in any such document immediately prior
                                            to such effective date; or</TD></TR></TABLE>

<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">&#160;</P>

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<TD STYLE="width: 72pt"></TD><TD STYLE="width: 27pt">(ii)</TD><TD>If the registrant is subject to Rule 430C, each prospectus filed
                                            pursuant to Rule 424(b) as part of a registration statement relating to an offering, other
                                            than registration statements relying on Rule 430B or other than prospectuses filed in reliance
                                            on Rule 430A, shall be deemed to be part of and included in the registration statement as
                                            of the date it is first used after effectiveness. Provided, however, that no statement made
                                            in a registration statement or prospectus that is part of the registration statement or made
                                            in a document incorporated or deemed incorporated by reference into the registration statement
                                            or prospectus that is part of the registration statement will, as to a purchaser with a time
                                            of contract of sale prior to such first use, supersede or modify any statement that was made
                                            in the registration statement or prospectus that was part of the registration statement or
                                            made in any such document immediately prior to such date of first use.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

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<TD STYLE="width: 27pt"></TD><TD STYLE="width: 22.05pt">(5)</TD><TD>That, for the purpose of determining liability of the registrant
                                            under the Securities Act of 1933 to any purchaser in the initial distribution of the securities:</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 49.05pt">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">&#160;</P>

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<TD STYLE="width: 72pt"></TD><TD STYLE="width: 27pt">(i)</TD><TD>any preliminary prospectus or prospectus of the undersigned registrant
                                            relating to the offering required to be filed pursuant to Rule 424;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 72pt"></TD><TD STYLE="width: 27pt">(ii)</TD><TD>any free writing prospectus relating to the offering prepared
                                            by or on behalf of the undersigned registrant or used or referred to by the undersigned registrant;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 72pt"></TD><TD STYLE="width: 27pt">(iii)</TD><TD>the portion of any other free writing prospectus relating to
                                            the offering containing material information about the undersigned registrant or its securities
                                            provided by or on behalf of the undersigned registrant; and</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

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<TD STYLE="width: 72pt"></TD><TD STYLE="width: 27pt">(iv)</TD><TD>any other communication that is an offer in the offering made
                                            by the undersigned registrant to the purchaser.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 27pt"></TD><TD STYLE="width: 22.05pt">(6)</TD><TD>Insofar as indemnification for liabilities arising under the
                                            Securities Act of 1933 may be permitted to directors, officers and controlling persons of
                                            the registrant pursuant to the foregoing provisions, or otherwise, the registrant has been
                                            advised that in the opinion of the Securities and Exchange Commission such indemnification
                                            is against public policy as expressed in the Act and is, therefore, unenforceable. In the
                                            event that a claim for indemnification against such liabilities (other than the payment by
                                            the registrant of expenses incurred or paid by a director, officer or controlling person
                                            of the registrant in the successful defense of any action, suit or proceeding) is asserted
                                            by such director, officer or controlling person in connection with the securities being registered,
                                            the registrant will, unless in the opinion of its counsel the matter has been settled by
                                            controlling precedent, submit to a court of appropriate jurisdiction the question whether
                                            such indemnification by it is against public policy as expressed in the Act and will be governed
                                            by the final adjudication of such issue.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&#160;</B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&#160;</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&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>Exhibit<BR>
                                    No.</B></P></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="white-space: nowrap"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; border-bottom: black 1pt solid"><B>Exhibit
                                    Description</B></P></TD></TR>
  <TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="white-space: nowrap; vertical-align: top">&nbsp;&nbsp;3.1</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">Declaration of Trust and Trust Agreement*</TD></TR>
  <TR STYLE="background-color: White">
    <TD STYLE="white-space: nowrap; vertical-align: top">&nbsp;&nbsp;3.2</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top"><A HREF="http://www.sec.gov/Archives/edgar/data/0001850391/000119312521077493/d122075dex32.htm">Certificate
    of Trust (1) </A></TD></TR>
  <TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="white-space: nowrap; vertical-align: top"> &nbsp;&nbsp;3.3 </TD>
    <TD STYLE="vertical-align: bottom"> &nbsp; </TD>
    <TD STYLE="vertical-align: top"> <A HREF="ex3_3.htm">Amended Certificate of Trust**</A> </TD></TR>
  <TR STYLE="background-color: White">
    <TD STYLE="white-space: nowrap; vertical-align: top">&nbsp;&nbsp;5.1</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">Opinion of Perkins Coie LLP as to legality*</TD></TR>
  <TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="white-space: nowrap; vertical-align: top">&nbsp;&nbsp;8.1</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">Opinion of Perkins Coie LLP as to tax matters*</TD></TR>
  <TR STYLE="background-color: White">
    <TD STYLE="white-space: nowrap; vertical-align: top"> 10.1 </TD>
    <TD STYLE="vertical-align: bottom"> &nbsp; </TD>
    <TD STYLE="vertical-align: top"> Form of Coinbase Prime Broker Agreement* </TD></TR>
  <TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="white-space: nowrap; vertical-align: top"> 10.2 </TD>
    <TD STYLE="vertical-align: bottom"> &nbsp; </TD>
    <TD STYLE="vertical-align: top"> Form of Coinbase Custodial Services Agreement (including in Exhibit 10.1)* </TD></TR>
  <TR STYLE="background-color: White">
    <TD STYLE="white-space: nowrap; vertical-align: top"> 10.3 </TD>
    <TD STYLE="vertical-align: bottom"> &nbsp; </TD>
    <TD STYLE="vertical-align: top"> Form of Marketing Agent Agreement* </TD></TR>
  <TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="white-space: nowrap; vertical-align: top"> 10.4 </TD>
    <TD STYLE="vertical-align: bottom"> &nbsp; </TD>
    <TD STYLE="vertical-align: top"> Form of Custodian Agreement (Cash and Cash Equivalents)* </TD></TR>
  <TR STYLE="background-color: White">
    <TD STYLE="white-space: nowrap; vertical-align: top"> 10.5 </TD>
    <TD STYLE="vertical-align: bottom"> &nbsp; </TD>
    <TD STYLE="vertical-align: top"> Form of Trust Administration Agreement (including Accounting)* </TD></TR>
  <TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="white-space: nowrap; vertical-align: top"> 10.6 </TD>
    <TD STYLE="vertical-align: bottom"> &nbsp; </TD>
    <TD STYLE="vertical-align: top"> Form of Transfer Agency Agreement* </TD></TR>
  <TR STYLE="background-color: White">
    <TD STYLE="white-space: nowrap; vertical-align: top"> 10.7 </TD>
    <TD STYLE="vertical-align: bottom"> &nbsp; </TD>
    <TD STYLE="vertical-align: top"> Form of Authorized Participant Agreement* </TD></TR>
  <TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="white-space: nowrap; vertical-align: top">23.1</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">Consent of Independent Registered Public Accounting Firm*</TD></TR>
  <TR STYLE="background-color: White">
    <TD STYLE="white-space: nowrap; vertical-align: top">23.2</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">Consent of Perkins Coie LLP (included in Exhibits 5.1 and 8.1)*</TD></TR>
  <TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="white-space: nowrap; vertical-align: top"> 107 </TD>
    <TD STYLE="vertical-align: bottom"> &nbsp; </TD>
    <TD STYLE="vertical-align: top"> <A HREF="ex107.htm">Calculating of Filing Fee Table**</A> </TD></TR>
  </TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 22.5pt">(1)</TD><TD>Previously filed as an exhibit to the Trust&#8217;s Registration
                                            Statement on Form S-1 on March 11, 2021.</TD></TR></TABLE>

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<TD STYLE="width: 0"></TD><TD STYLE="width: 22.5pt">*</TD><TD>To be filed by amendment.</TD></TR></TABLE>

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

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<TD STYLE="width: 0"></TD><TD STYLE="width: 22.5pt"> ** </TD><TD> Filed herewith. </TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</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">&#160;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"> <FONT STYLE="font-size: 10pt">Pursuant to
the requirements of the Securities Act of 1933, the registrant has duly caused this registration statement to be signed on its behalf
by the undersigned, thereunto duly authorized in the City of New York, State of New York, on </FONT>December 18<FONT STYLE="font-size: 10pt">,
2023. </FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</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>&#160;</TD>
    <TD COLSPAN="3"><FONT STYLE="font-size: 10pt"><B>WisdomTree Bitcoin Fund</B></FONT></TD></TR>
  <TR>
    <TD STYLE="vertical-align: top">&#160;</TD>
    <TD COLSPAN="3" STYLE="vertical-align: bottom"><FONT STYLE="font-size: 10pt">By: WisdomTree Digital Commodity Services, LLC as Sponsor
    of the Trust</FONT></TD></TR>
  <TR>
    <TD STYLE="vertical-align: top">&#160;</TD>
    <TD>&#160;</TD>
    <TD COLSPAN="2">&#160;</TD></TR>
  <TR>
    <TD STYLE="vertical-align: top; width: 57%">&#160;</TD>
    <TD STYLE="vertical-align: bottom; width: 5%"><FONT STYLE="font-size: 10pt">By:</FONT></TD>
    <TD STYLE="vertical-align: bottom; width: 1%">&#160;</TD>
    <TD STYLE="vertical-align: bottom; width: 37%"><P STYLE="border-bottom: Black 0.5pt solid; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">/s/
                                            Jeremy Schwartz</P></TD></TR>
  <TR>
    <TD STYLE="vertical-align: top">&#160;</TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 10pt">Name:</FONT></TD>
    <TD STYLE="vertical-align: bottom">&#160;</TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 10pt">Jeremy Schwartz</FONT></TD></TR>
  <TR>
    <TD STYLE="vertical-align: top">&#160;</TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 10pt">Title:</FONT></TD>
    <TD STYLE="vertical-align: bottom">&#160;</TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 10pt">Chief Executive Officer</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Pursuant to the requirements of the Securities
Act of 1933, this registration statement has been signed by the following persons in the capacities* and on the dates indicated.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
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    <TD STYLE="white-space: nowrap"><P STYLE="border-bottom: black 1pt solid; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> <B>Signature</B> </P></TD>
    <TD> &#160; </TD>
    <TD STYLE="white-space: nowrap"><P STYLE="border-bottom: black 1pt solid; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> <B>Title</B> </P></TD>
    <TD> &#160; </TD>
    <TD STYLE="white-space: nowrap"><P STYLE="border-bottom: black 1pt solid; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> <B>Date</B> </P></TD></TR>
  <TR>
    <TD> &#160; </TD>
    <TD COLSPAN="2"> &#160; </TD>
    <TD COLSPAN="2"> &#160; </TD></TR>
  <TR>
    <TD STYLE="vertical-align: top"> <FONT STYLE="font-size: 10pt"><U>/s/ Jeremy Schwartz</U></FONT> </TD>
    <TD STYLE="vertical-align: bottom"> &#160; </TD>
    <TD STYLE="vertical-align: top"> <FONT STYLE="font-size: 10pt">Chief&#160;Executive&#160;Officer&#160;(Principal&#160;Executive&#160;Officer)</FONT> </TD>
    <TD STYLE="vertical-align: bottom"> &#160; </TD>
    <TD STYLE="vertical-align: top; text-align: center"> <FONT STYLE="font-size: 10pt">December 18, 2023</FONT> </TD></TR>
  <TR>
    <TD> &#160; </TD>
    <TD COLSPAN="2"> &#160; </TD>
    <TD COLSPAN="2"> &#160; </TD></TR>
  <TR>
    <TD STYLE="vertical-align: top"> <FONT STYLE="font-size: 10pt"><U>/s/ David Castano</U></FONT> </TD>
    <TD STYLE="vertical-align: bottom"> &#160; </TD>
    <TD STYLE="vertical-align: top"> <FONT STYLE="font-size: 10pt">Chief Financial Officer and Treasurer (Principal Financial Officer
    and Principal Accounting Officer)</FONT> </TD>
    <TD STYLE="vertical-align: bottom"> &#160; </TD>
    <TD STYLE="vertical-align: top; text-align: center"> <FONT STYLE="font-size: 10pt">December 18, 2023</FONT> </TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

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<TD STYLE="width: 4.5pt"></TD><TD STYLE="width: 18pt">*</TD><TD>The registrant will be a trust and the persons are signing in
                                            their capacities as officers of WisdomTree Digital Commodity Services, LLC, the Sponsor of
                                            the registrant.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</P>

<P STYLE="margin: 0">&#160;</P>

<P STYLE="text-align: center; margin-top: 0; margin-bottom: 0">95</P>

<P STYLE="margin: 0"></P>

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<DOCUMENT>
<TYPE>EX-3.3
<SEQUENCE>3
<FILENAME>ex3_3.htm
<DESCRIPTION>EXHIBIT 3.3
<TEXT>
<HTML>
<HEAD>
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<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="text-align: right; margin: 0"> <B>EXHIBIT 3.3</B> </P>

<P STYLE="margin: 0"> &nbsp; </P>

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> THIS CERTIFICATE OF AMENDMENT
TO THE CERTIFICATE OF TRUST OF WISDOMTREE BITCOIN TRUST (the &ldquo;<U>Trust</U>&rdquo;) is being duly executed and filed by the undersigned
to amend the Certificate of Trust under the Delaware Statutory Trust Act, 12 Del. C. &sect; 3801 et seq. (as amended from time to time,
the &ldquo;<U>Act</U>&rdquo;). </P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 31.5pt"> 1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Current
Name</U>. The current name of the statutory trust is &ldquo;WisdomTree Bitcoin Trust.&rdquo; </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: 31.5pt"> &nbsp; </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 31.5pt"> 2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Change
of Name</U>. The name of the statutory trust is changed to &ldquo;WisdomTree Bitcoin Fund.&rdquo; </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: 31.5pt"> &nbsp; </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 31.5pt"> 3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<U>Effective Date</U>. This Certificate of Amendment shall be effective upon filing. </P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 31.5pt"> IN WITNESS WHEREOF, the
undersigned trustee of the Trust has duly executed this Certificate of Amendment in accordance with Section 3811(a)(2) of the Act. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> &nbsp; </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-size: 10pt">DELAWARE TRUST COMPANY, </FONT> </TD></TR>
  <TR STYLE="vertical-align: top">
    <TD> &nbsp; </TD>
    <TD COLSPAN="3"> <FONT STYLE="font-size: 10pt">not in its individual capacity but solely as trustee</FONT> </TD></TR>
  <TR STYLE="vertical-align: top">
    <TD> &nbsp; </TD>
    <TD COLSPAN="3"> &nbsp; </TD></TR>
  <TR STYLE="vertical-align: top">
    <TD> &nbsp; </TD>
    <TD COLSPAN="3"> &nbsp; </TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 49%"> &nbsp; </TD>
    <TD STYLE="width: 1%"> By:&nbsp;&nbsp; </TD>
    <TD STYLE="border-bottom: Black 1pt solid; width: 15%"> <FONT STYLE="font-size: 10pt">/s/ Gregory Daniels</FONT> </TD>
    <TD STYLE="width: 35%"> &nbsp; </TD></TR>
  <TR STYLE="vertical-align: top">
    <TD> &nbsp; </TD>
    <TD COLSPAN="3"> <FONT STYLE="font-size: 10pt">Name: Gregory Daniels</FONT> </TD></TR>
  <TR STYLE="vertical-align: top">
    <TD> &nbsp; </TD>
    <TD COLSPAN="3"> <FONT STYLE="font-size: 10pt">Title:  Vice President</FONT> </TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>



<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="margin: 0"></P>

<!-- Field: Rule-Page --><DIV ALIGN="LEFT" STYLE="margin-top: 3pt; margin-bottom: 3pt"><DIV STYLE="font-size: 1pt; border-top: Black 2px solid; width: 100%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="margin: 0">&nbsp;</P>

</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-FILING FEES
<SEQUENCE>4
<FILENAME>ex107.htm
<DESCRIPTION>EXHIBIT 107
<TEXT>
<HTML>
<HEAD>
     <TITLE></TITLE>
</HEAD>
<BODY STYLE="font: 10pt Times New Roman, Times, Serif">

<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="text-align: right; margin: 0"> <B>Exhibit 107</B> </P>

<P STYLE="margin: 0"> &nbsp; </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white"> <B>Calculation of
Filing Fee Tables</B> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white"> Form&nbsp;S-1 </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white"> (Form Type) </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white"> WisdomTree Bitcoin
Fund </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white"> (Exact Name of Registrant
as Specified in its Charter) </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white"> <U>Table 1: Newly
Registered and Carry Forward Securities</U> </P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; background-color: white; border-collapse: collapse">
  <TR>
    <TD STYLE="width: 19%"> &nbsp; </TD>
    <TD STYLE="vertical-align: bottom; width: 1%"> &nbsp; </TD>
    <TD STYLE="width: 8%"> &nbsp; </TD>
    <TD STYLE="vertical-align: bottom; width: 1%"> &nbsp; </TD>
    <TD STYLE="width: 6%"> &nbsp; </TD>
    <TD STYLE="vertical-align: bottom; width: 1%"> &nbsp; </TD>
    <TD STYLE="width: 6%"> &nbsp; </TD>
    <TD STYLE="vertical-align: bottom; width: 1%"> &nbsp; </TD>
    <TD STYLE="width: 6%"> &nbsp; </TD>
    <TD STYLE="vertical-align: bottom; width: 1%"> &nbsp; </TD>
    <TD STYLE="width: 6%"> &nbsp; </TD>
    <TD STYLE="vertical-align: bottom; width: 1%"> &nbsp; </TD>
    <TD STYLE="width: 6%"> &nbsp; </TD>
    <TD STYLE="vertical-align: bottom; width: 1%"> &nbsp; </TD>
    <TD STYLE="width: 1%"> &nbsp; </TD>
    <TD STYLE="vertical-align: bottom; width: 1%"> &nbsp; </TD>
    <TD STYLE="width: 9%"> &nbsp; </TD>
    <TD STYLE="vertical-align: bottom; width: 1%"> &nbsp; </TD>
    <TD STYLE="width: 5%"> &nbsp; </TD>
    <TD STYLE="vertical-align: bottom; width: 1%"> &nbsp; </TD>
    <TD STYLE="width: 5%"> &nbsp; </TD>
    <TD STYLE="vertical-align: bottom; width: 1%"> &nbsp; </TD>
    <TD STYLE="width: 5%"> &nbsp; </TD>
    <TD STYLE="vertical-align: bottom; width: 1%"> &nbsp; </TD>
    <TD STYLE="width: 6%"> &nbsp; </TD></TR>
  <TR>
    <TD STYLE="border-top: black 1pt solid; border-left: black 1pt solid"> &nbsp; </TD>
    <TD COLSPAN="2" STYLE="border-top: black 1pt solid; border-left: black 1pt solid"> &nbsp; </TD>
    <TD COLSPAN="2" STYLE="border-top: black 1pt solid; border-left: black 1pt solid"> &nbsp; </TD>
    <TD COLSPAN="2" STYLE="border-top: black 1pt solid; border-left: black 1pt solid"> &nbsp; </TD>
    <TD COLSPAN="2" STYLE="border-top: black 1pt solid; border-left: black 1pt solid"> &nbsp; </TD>
    <TD COLSPAN="2" STYLE="border-top: black 1pt solid; border-left: black 1pt solid"> &nbsp; </TD>
    <TD COLSPAN="2" STYLE="border-top: black 1pt solid; border-left: black 1pt solid"> &nbsp; </TD>
    <TD COLSPAN="2" STYLE="border-top: black 1pt solid; border-left: black 1pt solid"> &nbsp; </TD>
    <TD COLSPAN="2" STYLE="border-top: black 1pt solid; border-left: black 1pt solid"> &nbsp; </TD>
    <TD COLSPAN="2" STYLE="border-top: black 1pt solid; border-left: black 1pt solid"> &nbsp; </TD>
    <TD COLSPAN="2" STYLE="border-top: black 1pt solid; border-left: black 1pt solid"> &nbsp; </TD>
    <TD COLSPAN="2" STYLE="border-top: black 1pt solid; border-left: black 1pt solid"> &nbsp; </TD>
    <TD COLSPAN="2" STYLE="border-top: black 1pt solid; border-right: black 1pt solid; border-left: black 1pt solid"> &nbsp; </TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="white-space: nowrap; border-left: black 1pt solid"> &nbsp; </TD>
    <TD STYLE="white-space: nowrap; border-left: black 1pt solid"> &nbsp; </TD>
    <TD STYLE="white-space: nowrap; text-align: center"> <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Security
    <BR>
    Type</FONT> </TD>
    <TD STYLE="white-space: nowrap; border-left: black 1pt solid"> &nbsp; </TD>
    <TD STYLE="white-space: nowrap; text-align: center"> <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Security<BR>
    Class&nbsp;Title</FONT> </TD>
    <TD STYLE="white-space: nowrap; border-left: black 1pt solid"> &nbsp; </TD>
    <TD STYLE="white-space: nowrap; text-align: center"> <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Fee<BR>
    Calculation<BR>
    or Carry<BR>
    Forward<BR>
    Rule</FONT> </TD>
    <TD STYLE="white-space: nowrap; border-left: black 1pt solid"> &nbsp; </TD>
    <TD STYLE="white-space: nowrap; text-align: center"> <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Amount<BR>
    Registered</FONT> </TD>
    <TD STYLE="white-space: nowrap; border-left: black 1pt solid"> &nbsp; </TD>
    <TD STYLE="white-space: nowrap; text-align: center"> <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Proposed<BR>
    Maximum&nbsp;<BR>
    Offering<BR>
    Price Per<BR>
    Unit</FONT> </TD>
    <TD STYLE="white-space: nowrap; border-left: black 1pt solid"> &nbsp; </TD>
    <TD STYLE="white-space: nowrap; text-align: center"> <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Maximum&nbsp;<BR>
    Aggregate&nbsp;<BR>
    Offering<BR>
    Price</FONT> </TD>
    <TD STYLE="white-space: nowrap; border-left: black 1pt solid"> &nbsp; </TD>
    <TD STYLE="white-space: nowrap; text-align: center"> <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Fee<BR>
    Rate</FONT> </TD>
    <TD STYLE="white-space: nowrap; border-left: black 1pt solid"> &nbsp; </TD>
    <TD STYLE="white-space: nowrap; text-align: center"> <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Amount
    of<BR>
    Registration <BR>
    Fee</FONT> </TD>
    <TD STYLE="white-space: nowrap; border-left: black 1pt solid"> &nbsp; </TD>
    <TD STYLE="white-space: nowrap; text-align: center"> <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Carry<BR>
    Forward&nbsp;<BR>
    Form<BR>
    Type</FONT> </TD>
    <TD STYLE="white-space: nowrap; border-left: black 1pt solid"> &nbsp; </TD>
    <TD STYLE="white-space: nowrap; text-align: center"> <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Carry<BR>
    Forward&nbsp;<BR>
    File<BR>
    Number</FONT> </TD>
    <TD STYLE="white-space: nowrap; border-left: black 1pt solid"> &nbsp; </TD>
    <TD STYLE="white-space: nowrap; text-align: center"> <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Carry<BR>
    Forward<BR>
    Initial<BR>
    Effective<BR>
    Date</FONT> </TD>
    <TD STYLE="white-space: nowrap; border-left: black 1pt solid"> &nbsp; </TD>
    <TD STYLE="white-space: nowrap; border-right: black 1pt solid; text-align: center"> <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Filing
    Fee<BR>
    Previously<BR>
    Paid In<BR>
    Connection<BR>
    with<BR>
    Unsold<BR>
    Securities<BR>
    to be<BR>
    Carried<BR>
    Forward</FONT> </TD></TR>
  <TR>
    <TD COLSPAN="25" STYLE="border-top: black 1pt solid; border-right: black 1pt solid; border-left: black 1pt solid"> &nbsp; </TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD COLSPAN="25" STYLE="border-left: black 1pt solid; border-right: black 1pt solid; text-align: center"> <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Newly
    Registered Securities</FONT> </TD></TR>
  <TR>
    <TD STYLE="border-top: black 1pt solid; border-left: black 1pt solid"> &nbsp; </TD>
    <TD COLSPAN="2" STYLE="border-top: black 1pt solid; border-left: black 1pt solid"> &nbsp; </TD>
    <TD COLSPAN="2" STYLE="border-top: black 1pt solid; border-left: black 1pt solid"> &nbsp; </TD>
    <TD COLSPAN="2" STYLE="border-top: black 1pt solid; border-left: black 1pt solid"> &nbsp; </TD>
    <TD COLSPAN="2" STYLE="border-top: black 1pt solid; border-left: black 1pt solid"> &nbsp; </TD>
    <TD COLSPAN="2" STYLE="border-top: black 1pt solid; border-left: black 1pt solid"> &nbsp; </TD>
    <TD COLSPAN="2" STYLE="border-top: black 1pt solid; border-left: black 1pt solid"> &nbsp; </TD>
    <TD COLSPAN="2" STYLE="border-top: black 1pt solid; border-left: black 1pt solid"> &nbsp; </TD>
    <TD COLSPAN="2" STYLE="border-top: black 1pt solid; border-left: black 1pt solid"> &nbsp; </TD>
    <TD COLSPAN="2" STYLE="border-top: black 1pt solid; border-left: black 1pt solid"> &nbsp; </TD>
    <TD COLSPAN="2" STYLE="border-top: black 1pt solid; border-left: black 1pt solid"> &nbsp; </TD>
    <TD COLSPAN="2" STYLE="border-top: black 1pt solid; border-left: black 1pt solid"> &nbsp; </TD>
    <TD COLSPAN="2" STYLE="border-top: black 1pt solid; border-right: black 1pt solid; border-left: black 1pt solid"> &nbsp; </TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="border-left: black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> Fees to Be </P>
    <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> Paid </P></TD>
    <TD STYLE="border-left: black 1pt solid"> &nbsp; </TD>
    <TD STYLE="text-align: center"> <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Exchange-Traded Vehicle
    Securities</FONT> </TD>
    <TD STYLE="border-left: black 1pt solid"> &nbsp; </TD>
    <TD STYLE="text-align: center"><P STYLE="margin-top: 0; margin-bottom: 0"> <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">WisdomTree Bitcoin Fund</FONT> </P>
                                   <P STYLE="margin-top: 0; margin-bottom: 0"> <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(previously WisdomTree Bitcoin Trust)</FONT> </P></TD>
    <TD STYLE="border-left: black 1pt solid"> &nbsp; </TD>
    <TD STYLE="text-align: center"> <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Rule 457(u)</FONT> </TD>
    <TD STYLE="border-left: black 1pt solid"> &nbsp; </TD>
    <TD STYLE="text-align: center"> <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(1)</FONT> </TD>
    <TD STYLE="border-left: black 1pt solid"> &nbsp; </TD>
    <TD STYLE="text-align: center"> <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(1)</FONT> </TD>
    <TD STYLE="border-left: black 1pt solid"> &nbsp; </TD>
    <TD STYLE="text-align: center"> <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(1)</FONT> </TD>
    <TD STYLE="border-left: black 1pt solid"> &nbsp; </TD>
    <TD STYLE="text-align: center"> <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(1)</FONT> </TD>
    <TD STYLE="border-left: black 1pt solid"> &nbsp; </TD>
    <TD STYLE="text-align: center"> <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(1)</FONT> </TD>
    <TD STYLE="border-left: black 1pt solid"> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD STYLE="border-left: black 1pt solid"> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD STYLE="border-left: black 1pt solid"> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD STYLE="border-left: black 1pt solid"> &nbsp; </TD>
    <TD STYLE="border-right: black 1pt solid"> &nbsp; </TD></TR>
  <TR>
    <TD STYLE="border-top: black 1pt solid; border-left: black 1pt solid"> &nbsp; </TD>
    <TD COLSPAN="2" STYLE="border-top: black 1pt solid; border-left: black 1pt solid"> &nbsp; </TD>
    <TD COLSPAN="2" STYLE="border-top: black 1pt solid; border-left: black 1pt solid"> &nbsp; </TD>
    <TD COLSPAN="2" STYLE="border-top: black 1pt solid; border-left: black 1pt solid"> &nbsp; </TD>
    <TD COLSPAN="2" STYLE="border-top: black 1pt solid; border-left: black 1pt solid"> &nbsp; </TD>
    <TD COLSPAN="2" STYLE="border-top: black 1pt solid; border-left: black 1pt solid"> &nbsp; </TD>
    <TD COLSPAN="2" STYLE="border-top: black 1pt solid; border-left: black 1pt solid"> &nbsp; </TD>
    <TD COLSPAN="2" STYLE="border-top: black 1pt solid; border-left: black 1pt solid"> &nbsp; </TD>
    <TD COLSPAN="2" STYLE="border-top: black 1pt solid; border-left: black 1pt solid"> &nbsp; </TD>
    <TD COLSPAN="2" STYLE="border-top: black 1pt solid; border-left: black 1pt solid"> &nbsp; </TD>
    <TD COLSPAN="2" STYLE="border-top: black 1pt solid; border-left: black 1pt solid"> &nbsp; </TD>
    <TD COLSPAN="2" STYLE="border-top: black 1pt solid; border-left: black 1pt solid"> &nbsp; </TD>
    <TD COLSPAN="2" STYLE="border-top: black 1pt solid; border-right: black 1pt solid; border-left: black 1pt solid"> &nbsp; </TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="border-left: black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> Fees </P>
    <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> Previously </P>
    <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> Paid </P></TD>
    <TD STYLE="border-left: black 1pt solid"> &nbsp; </TD>
    <TD STYLE="text-align: center"> <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Exchange-Traded Vehicle
    Securities</FONT> </TD>
    <TD STYLE="border-left: black 1pt solid"> &nbsp; </TD>
    <TD><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> WisdomTree Bitcoin Fund </P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> (previously WisdomTree Bitcoin Trust) </P></TD>
    <TD STYLE="border-left: black 1pt solid"> &nbsp; </TD>
    <TD STYLE="text-align: center"> <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Rule 457(d)</FONT> </TD>
    <TD STYLE="border-left: black 1pt solid"> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD STYLE="border-left: black 1pt solid"> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD STYLE="border-left: black 1pt solid"> &nbsp; </TD>
    <TD STYLE="text-align: center"> <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$1,000,000
    (2)</FONT> </TD>
    <TD STYLE="border-left: black 1pt solid"> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD STYLE="border-left: black 1pt solid"> &nbsp; </TD>
    <TD STYLE="text-align: center"> <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$109.10&nbsp;(2)</FONT> </TD>
    <TD STYLE="border-left: black 1pt solid"> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD STYLE="border-left: black 1pt solid"> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD STYLE="border-left: black 1pt solid"> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD STYLE="border-left: black 1pt solid"> &nbsp; </TD>
    <TD STYLE="border-right: black 1pt solid"> &nbsp; </TD></TR>
  <TR>
    <TD COLSPAN="25" STYLE="border-top: black 1pt solid; border-right: black 1pt solid; border-left: black 1pt solid"> &nbsp; </TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD COLSPAN="25" STYLE="border-left: black 1pt solid; border-right: black 1pt solid; text-align: center"> <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Carry
    Forward Securities</FONT> </TD></TR>
  <TR>
    <TD STYLE="border-top: black 1pt solid; border-left: black 1pt solid"> &nbsp; </TD>
    <TD COLSPAN="2" STYLE="border-top: black 1pt solid; border-left: black 1pt solid"> &nbsp; </TD>
    <TD COLSPAN="2" STYLE="border-top: black 1pt solid; border-left: black 1pt solid"> &nbsp; </TD>
    <TD COLSPAN="2" STYLE="border-top: black 1pt solid; border-left: black 1pt solid"> &nbsp; </TD>
    <TD COLSPAN="2" STYLE="border-top: black 1pt solid; border-left: black 1pt solid"> &nbsp; </TD>
    <TD COLSPAN="2" STYLE="border-top: black 1pt solid; border-left: black 1pt solid"> &nbsp; </TD>
    <TD COLSPAN="2" STYLE="border-top: black 1pt solid; border-left: black 1pt solid"> &nbsp; </TD>
    <TD COLSPAN="2" STYLE="border-top: black 1pt solid; border-left: black 1pt solid"> &nbsp; </TD>
    <TD COLSPAN="2" STYLE="border-top: black 1pt solid; border-left: black 1pt solid"> &nbsp; </TD>
    <TD COLSPAN="2" STYLE="border-top: black 1pt solid; border-left: black 1pt solid"> &nbsp; </TD>
    <TD COLSPAN="2" STYLE="border-top: black 1pt solid; border-left: black 1pt solid"> &nbsp; </TD>
    <TD COLSPAN="2" STYLE="border-top: black 1pt solid; border-left: black 1pt solid"> &nbsp; </TD>
    <TD COLSPAN="2" STYLE="border-top: black 1pt solid; border-right: black 1pt solid; border-left: black 1pt solid"> &nbsp; </TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="border-left: black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> Carry </P>
    <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> Forward </P>
    <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> Securities </P></TD>
    <TD STYLE="border-left: black 1pt solid"> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD STYLE="border-left: black 1pt solid"> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD STYLE="border-left: black 1pt solid"> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD STYLE="border-left: black 1pt solid"> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD STYLE="border-left: black 1pt solid"> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD STYLE="border-left: black 1pt solid"> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD STYLE="border-left: black 1pt solid"> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD STYLE="border-left: black 1pt solid"> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD STYLE="border-left: black 1pt solid"> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD STYLE="border-left: black 1pt solid"> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD STYLE="border-left: black 1pt solid"> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD STYLE="border-left: black 1pt solid"> &nbsp; </TD>
    <TD STYLE="border-right: black 1pt solid"> &nbsp; </TD></TR>
  <TR>
    <TD STYLE="border-top: black 1pt solid; border-left: black 1pt solid"> &nbsp; </TD>
    <TD COLSPAN="8" STYLE="border-top: black 1pt solid; border-left: black 1pt solid"> &nbsp; </TD>
    <TD COLSPAN="2" STYLE="border-top: black 1pt solid; border-left: black 1pt solid"> &nbsp; </TD>
    <TD COLSPAN="2" STYLE="border-top: black 1pt solid; border-left: black 1pt solid"> &nbsp; </TD>
    <TD COLSPAN="2" STYLE="border-top: black 1pt solid; border-left: black 1pt solid"> &nbsp; </TD>
    <TD COLSPAN="2" STYLE="border-top: black 1pt solid; border-left: black 1pt solid"> &nbsp; </TD>
    <TD COLSPAN="2" STYLE="border-top: black 1pt solid; border-left: black 1pt solid"> &nbsp; </TD>
    <TD COLSPAN="2" STYLE="border-top: black 1pt solid; border-left: black 1pt solid"> &nbsp; </TD>
    <TD COLSPAN="2" STYLE="border-top: black 1pt solid; border-left: black 1pt solid"> &nbsp; </TD>
    <TD COLSPAN="2" STYLE="border-top: black 1pt solid; border-right: black 1pt solid; border-left: black 1pt solid"> &nbsp; </TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="border-left: black 1pt solid"> &nbsp; </TD>
    <TD STYLE="border-left: black 1pt solid"> &nbsp; </TD>
    <TD COLSPAN="7" STYLE="text-align: right"> <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Total Offering
    Amounts&nbsp;</FONT> </TD>
    <TD STYLE="border-left: black 1pt solid"> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD STYLE="border-left: black 1pt solid"> &nbsp; </TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="border-left: black 1pt solid"> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD STYLE="border-left: black 1pt solid"> &nbsp; </TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="border-left: black 1pt solid"> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD STYLE="border-left: black 1pt solid"> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD STYLE="border-left: black 1pt solid"> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD STYLE="border-left: black 1pt solid"> &nbsp; </TD>
    <TD STYLE="border-right: black 1pt solid"> &nbsp; </TD></TR>
  <TR>
    <TD STYLE="border-top: black 1pt solid; border-left: black 1pt solid"> &nbsp; </TD>
    <TD COLSPAN="8" STYLE="border-top: black 1pt solid; border-left: black 1pt solid"> &nbsp; </TD>
    <TD COLSPAN="2" STYLE="border-top: black 1pt solid; border-left: black 1pt solid"> &nbsp; </TD>
    <TD COLSPAN="2" STYLE="border-top: black 1pt solid; border-left: black 1pt solid"> &nbsp; </TD>
    <TD COLSPAN="2" STYLE="border-top: black 1pt solid; border-left: black 1pt solid"> &nbsp; </TD>
    <TD COLSPAN="2" STYLE="border-top: black 1pt solid; border-left: black 1pt solid"> &nbsp; </TD>
    <TD COLSPAN="2" STYLE="border-top: black 1pt solid; border-left: black 1pt solid"> &nbsp; </TD>
    <TD COLSPAN="2" STYLE="border-top: black 1pt solid; border-left: black 1pt solid"> &nbsp; </TD>
    <TD COLSPAN="2" STYLE="border-top: black 1pt solid; border-left: black 1pt solid"> &nbsp; </TD>
    <TD COLSPAN="2" STYLE="border-top: black 1pt solid; border-right: black 1pt solid; border-left: black 1pt solid"> &nbsp; </TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="border-left: black 1pt solid"> &nbsp; </TD>
    <TD STYLE="border-left: black 1pt solid"> &nbsp; </TD>
    <TD COLSPAN="7" STYLE="text-align: right"> <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Total Fees
    Previously Paid&nbsp;</FONT> </TD>
    <TD STYLE="border-left: black 1pt solid"> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD STYLE="border-left: black 1pt solid"> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD STYLE="border-left: black 1pt solid"> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD STYLE="border-left: black 1pt solid"> &nbsp; </TD>
    <TD STYLE="text-align: center"> <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT> </TD>
    <TD STYLE="border-left: black 1pt solid"> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD STYLE="border-left: black 1pt solid"> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD STYLE="border-left: black 1pt solid"> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD STYLE="border-left: black 1pt solid"> &nbsp; </TD>
    <TD STYLE="border-right: black 1pt solid"> &nbsp; </TD></TR>
  <TR>
    <TD STYLE="border-top: black 1pt solid; border-left: black 1pt solid"> &nbsp; </TD>
    <TD COLSPAN="8" STYLE="border-top: black 1pt solid; border-left: black 1pt solid"> &nbsp; </TD>
    <TD COLSPAN="2" STYLE="border-top: black 1pt solid; border-left: black 1pt solid"> &nbsp; </TD>
    <TD COLSPAN="2" STYLE="border-top: black 1pt solid; border-left: black 1pt solid"> &nbsp; </TD>
    <TD COLSPAN="2" STYLE="border-top: black 1pt solid; border-left: black 1pt solid"> &nbsp; </TD>
    <TD COLSPAN="2" STYLE="border-top: black 1pt solid; border-left: black 1pt solid"> &nbsp; </TD>
    <TD COLSPAN="2" STYLE="border-top: black 1pt solid; border-left: black 1pt solid"> &nbsp; </TD>
    <TD COLSPAN="2" STYLE="border-top: black 1pt solid; border-left: black 1pt solid"> &nbsp; </TD>
    <TD COLSPAN="2" STYLE="border-top: black 1pt solid; border-left: black 1pt solid"> &nbsp; </TD>
    <TD COLSPAN="2" STYLE="border-top: black 1pt solid; border-right: black 1pt solid; border-left: black 1pt solid"> &nbsp; </TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="border-left: black 1pt solid"> &nbsp; </TD>
    <TD STYLE="border-left: black 1pt solid"> &nbsp; </TD>
    <TD COLSPAN="7" STYLE="text-align: right"> <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Total Fee
    Offsets&nbsp;</FONT> </TD>
    <TD STYLE="border-left: black 1pt solid"> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD STYLE="border-left: black 1pt solid"> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD STYLE="border-left: black 1pt solid"> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD STYLE="border-left: black 1pt solid"> &nbsp; </TD>
    <TD STYLE="text-align: center"> <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&mdash;</FONT> </TD>
    <TD STYLE="border-left: black 1pt solid"> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD STYLE="border-left: black 1pt solid"> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD STYLE="border-left: black 1pt solid"> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD STYLE="border-left: black 1pt solid"> &nbsp; </TD>
    <TD STYLE="border-right: black 1pt solid"> &nbsp; </TD></TR>
  <TR>
    <TD STYLE="border-top: black 1pt solid; border-left: black 1pt solid"> &nbsp; </TD>
    <TD COLSPAN="8" STYLE="border-top: black 1pt solid; border-left: black 1pt solid"> &nbsp; </TD>
    <TD COLSPAN="2" STYLE="border-top: black 1pt solid; border-left: black 1pt solid"> &nbsp; </TD>
    <TD COLSPAN="2" STYLE="border-top: black 1pt solid; border-left: black 1pt solid"> &nbsp; </TD>
    <TD COLSPAN="2" STYLE="border-top: black 1pt solid; border-left: black 1pt solid"> &nbsp; </TD>
    <TD COLSPAN="2" STYLE="border-top: black 1pt solid; border-left: black 1pt solid"> &nbsp; </TD>
    <TD COLSPAN="2" STYLE="border-top: black 1pt solid; border-left: black 1pt solid"> &nbsp; </TD>
    <TD COLSPAN="2" STYLE="border-top: black 1pt solid; border-left: black 1pt solid"> &nbsp; </TD>
    <TD COLSPAN="2" STYLE="border-top: black 1pt solid; border-left: black 1pt solid"> &nbsp; </TD>
    <TD COLSPAN="2" STYLE="border-top: black 1pt solid; border-right: black 1pt solid; border-left: black 1pt solid"> &nbsp; </TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="border-left: black 1pt solid; border-bottom: black 1pt solid"> &nbsp; </TD>
    <TD STYLE="border-left: black 1pt solid; border-bottom: black 1pt solid"> &nbsp; </TD>
    <TD COLSPAN="7" STYLE="border-bottom: black 1pt solid; text-align: right"> <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Net
    Fee Due&nbsp;</FONT> </TD>
    <TD STYLE="border-left: black 1pt solid; border-bottom: black 1pt solid"> &nbsp; </TD>
    <TD STYLE="border-bottom: black 1pt solid"> &nbsp; </TD>
    <TD STYLE="border-left: black 1pt solid; border-bottom: black 1pt solid"> &nbsp; </TD>
    <TD STYLE="border-bottom: black 1pt solid"> &nbsp; </TD>
    <TD STYLE="border-left: black 1pt solid; border-bottom: black 1pt solid"> &nbsp; </TD>
    <TD STYLE="border-bottom: black 1pt solid"> &nbsp; </TD>
    <TD STYLE="border-left: black 1pt solid; border-bottom: black 1pt solid"> &nbsp; </TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: center">&nbsp;</TD>
    <TD STYLE="border-left: black 1pt solid; border-bottom: black 1pt solid"> &nbsp; </TD>
    <TD STYLE="border-bottom: black 1pt solid"> &nbsp; </TD>
    <TD STYLE="border-left: black 1pt solid; border-bottom: black 1pt solid"> &nbsp; </TD>
    <TD STYLE="border-bottom: black 1pt solid"> &nbsp; </TD>
    <TD STYLE="border-left: black 1pt solid; border-bottom: black 1pt solid"> &nbsp; </TD>
    <TD STYLE="border-bottom: black 1pt solid"> &nbsp; </TD>
    <TD STYLE="border-left: black 1pt solid; border-bottom: black 1pt solid"> &nbsp; </TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid"> &nbsp; </TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"> (1) An indeterminate number of the securities
is being registered as may from time to time be sold at indeterminate prices. In accordance with Rules 456(d) and 457(u), the registrant
is deferring payment of all of the registration fee and will pay the registration fee subsequently on an annual basis. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"> (2) Prior to the effect of this amendment
to the registration statement, the registration statement contemplated the registration of securities up to a maximum aggregate offering
price. The proposed maximum aggregate offering price was previously estimated solely for the purposes of calculating the amount of registration
fee pursuant to Rule 457(d). </P>

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

<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="margin: 0"></P>

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</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>CORRESP
<SEQUENCE>6
<FILENAME>filename6.htm
<TEXT>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">December 18, 2023</P>

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

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Washington, DC 20549</P>

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<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: 3%; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Re: </B></FONT></TD>
    <TD STYLE="width: 97%"><B>WisdomTree Bitcoin Fund (formerly WisdomTree
Bitcoin Trust)<BR>
Amendment No. 3 to Registration Statement on Form S-1 <BR>
Filed November 16, 2023<BR>
File No. 333-254134</B></TD></TR>
  </TABLE>



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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">This response is provided on behalf of WisdomTree
Bitcoin Fund (the &ldquo;Trust&rdquo; or the &ldquo;Registrant&rdquo;) with respect to Staff comments received on December 6, 2023, regarding
Amendment No. 3 to the Trust&rsquo;s Registration Statement on Form S-1 (the &ldquo;Filing&rdquo;), which was filed with the U.S. Securities
and Exchange Commission (&ldquo;SEC&rdquo;) on November 16, 2023, for the purpose of registering shares of the Trust. The Staff&rsquo;s
comments and the Trust&rsquo;s responses are set forth below. Capitalized terms used, but not defined herein have the same meaning given
to them in the Trust&rsquo;s registration statement.</P>

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

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

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">1.</TD><TD STYLE="text-align: justify"><B>Comment:</B> To the extent that you intend to use a fact sheet, please provide us with a copy for our
review.</TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B>Response</B>: <I>The Registrant
confirms that there will be no fact sheet used until after the Trust has been in operation for a quarter. A fact sheet would be released
approximately two weeks after the quarter end</I>. <I>The Registrant can share the fact sheet with the Staff once it has been created.</I></P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">2.</TD><TD STYLE="text-align: justify"><B>Comment:</B> Please revise throughout your prospectus so that it includes updated information regarding
bitcoin, the Bitcoin network, the crypto asset market, enacted and pending crypto asset legislation and regulation. By way of example
only, we note that you disclose the Lightning Network upgrade as of August 2017, you provide an example of incorrect transfers of bitcoin
by the Huobi exchange as of September 2014, and you do not include updated disclosure regarding enacted and pending legislation and regulation
and recent developments that may impact the Bitcoin network and the crypto asset market generally, such as the March 9, 2022 Executive
Order on Ensuring Responsible Development of Digital Assets and the resulting reports, and other more recent events and actions. We may
have additional comments after reviewing your revised disclosure.</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: 0pt 0 0pt 0.75in; text-align: justify"><B>Response</B>: <I>Additional disclosure
has been added in the section entitled &ldquo;Risk Factors &ndash; Regulatory Risks&rdquo; of the prospectus to address the comment.</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">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>WisdomTree Bitcoin Fund </B> 250 West 34th Street,
3rd Floor, New York, NY 10119 | 212-801-2080 Tel</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>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">3.</TD><TD STYLE="text-align: justify"><B>Comment:</B> Please revise your Prospectus Summary to disclose, if true, that:</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 94.5pt"></TD><TD STYLE="width: 13.5pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">The Trust is a passive investment vehicle that
does not seek to generate returns beyond tracking the price of bitcoin;</FONT></TD></TR></TABLE>

<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: 94.5pt"></TD><TD STYLE="width: 13.5pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">The Trust, the Sponsor and the service providers
will not loan or pledge the Trust's assets, nor will the Trust's assets serve as collateral for any loan or similar arrangement; and</FONT></TD></TR></TABLE>

<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: 94.5pt"></TD><TD STYLE="width: 13.5pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">The Trust will not utilize leverage, derivatives
or any similar arrangements in seeking to meet its investment objective.</FONT></TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 58.5pt; text-align: justify"><B>Response</B>: <I>In the section
entitled &ldquo;Prospectus Summary &ndash; The Trust&rsquo;s Investment Objective and Strategies,&rdquo; the following disclosure has
been added:</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 0pt 1in; text-align: justify"><I>The Trust is a passive investment vehicle
that does not seek to generate returns beyond tracking the price of bitcoin. The Trust will not utilize leverage, derivatives or any similar
arrangements in seeking to meet its investment objective. The Trust, the Sponsor and the service providers will not loan or pledge the
Trust's assets, nor will the Trust's assets serve as collateral for any loan or similar arrangement.</I></P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">4.</TD><TD STYLE="text-align: justify"><B>Comment:</B> Please revise to include the filing fee table as an exhibit to the registration statement
as required by Item 601(b)(107) of Regulation S-K.</TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B>Response: </B><I>The Registrant
confirms that the filing fee table has been added as an exhibit to the section entitled &ldquo;Exhibit Index&rdquo; in Part II of the
registration statement.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B>&nbsp;</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">5.</TD><TD STYLE="text-align: justify"><B>Comment: </B>Please revise your disclosure here to identify the initial Authorized Participant as an
underwriter, and disclose the initial price per Share.</TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B>Response: </B><I>The following disclosure
has been added to the third paragraph of the Cover Page of the prospectus:</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify"><I>Any purchaser who purchases Shares
with a view towards distribution of such Shares may be deemed to be a statutory underwriter.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><I>However, the Registrant respectfully
declines to identify the initial Authorized Participant as an underwriter as the Registrant is not aware of such requirement.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify; text-indent: 0.25in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify; text-indent: 0.25in"><B>&nbsp;</B></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">6.</TD><TD STYLE="text-align: justify"><B>Comment: </B>We note your disclosure that the Sponsor is applying certain of the substantive requirements
of the 1940 Act to the operations of the Trust in order to provide investors with daily disclosure similar to ETFs registered under the
1940 Act. Please either remove this discussion or move it to another part of the prospectus and revise to describe any voluntary website
disclosures you intend to provide without linking those disclosures to 1940 Act requirements or compliance.</TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B>Response: </B><I>The references
to the 1940 Act and its requirements have been removed, and the following statement has been added to the section entitled &ldquo;Where
You Can Find More Information&rdquo; of the prospectus</I>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify"><I>We will make available, free of charge,
on our website our Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K (including any amendments thereto), proxy
statements and other information filed with, or furnished to, the SEC, as soon as reasonably practicable after such documents are so filed
or furnished.</I></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><U>The Trust's Fees and Expenses, page 7</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></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">7.</TD><TD STYLE="text-align: justify"><B>Comment: </B>Please revise to disclose whether sales of the Trust's bitcoin will be facilitated through
an affiliate of the Bitcoin Custodian. If so, please revise to describe the potential conflicts of interest associated with such an arrangement
and the impact it may have on the price.</TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B>Response: </B><I>Revision has been
made to the referenced disclosure to indicate that an affiliate of the Bitcoin Custodian will be used to facilitate sale of bitcoin, and
the following paragraph has been added to the section entitled &ldquo;Conflicts of Interest&rdquo; of the prospectus</I>:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify"><B><I>Prime Broker</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify"><I>The Trust may engage in sales of bitcoin
by placing orders with the Prime Broker. The Prime Broker will route orders placed by the Sponsor through the prime broker execution platform
(the &ldquo;Trading Platform&rdquo;) to a connected Trading Venue where the order will be executed. Each order placed by the Sponsor will
be sent, processed and settled at each connected Trading Venue to which it is routed. The Prime Broker Agreement provides that the Prime
Broker is subject to certain conflicts of interest, including: (i) the Trust&rsquo;s orders may be routed to the Prime Broker&rsquo;s
own execution venue where the Trust&rsquo;s orders may be executed against other customers of the Prime Broker or with the Coinbase acting
as principal, (ii) the beneficial identity of the counterparty purchaser or seller with respect to the Trust&rsquo;s orders may be unknown
and therefore may inadvertently be another client of the Prime Broker, (iii) the Prime Broker does not engage in front-running, but is
aware of the Trust&rsquo;s orders or imminent orders and may execute a trade for its own inventory (or the account of an affiliate) while
in possession of that knowledge and (iv) the Prime Broker may act in a principal capacity with respect to certain orders. As a result
of these and other conflicts, when acting as principal, the Prime Broker may have an incentive to favor its own interests and the interests
of its affiliates over the Trust&rsquo;s interests.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B></B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><U>Net Asset Value, page 8</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></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">8.</TD><TD STYLE="text-align: justify"><B>Comment</B>: You disclose that NAV means the total assets of the Trust including, but not limited to,
all bitcoin, cash or other assets, less total liabilities of the Trust, each determined on the basis of generally accepted accounting
principles in the U.S., consistently applied under the accrual method of accounting but that 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. Tell us how the lag of reflecting daily activities of the Trust in the determination of NAV is consistent with the application
of GAAP. Provide the authoritative guidance to support your determination.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B>Response: </B><I>While the FASB
Accounting Standards Codification (&ldquo;ASC&rdquo;) is the exclusive reference for authoritative GAAP, the rules and interpretive releases
of the SEC are also sources of authoritative GAAP for SEC registrants. The Trust should qualify as an investment company under FASB ASC
Topic 946 (&ldquo;Financial Services &ndash; Investment Companies&rdquo;). While the Trust intends to only hold Bitcoin (and thus does
not have &ldquo;more than one&rdquo; investment typically associated with an investment company under 946-10-15-7(a)), the absence of
one or more of those typical investment company characteristics enumerated in FASB ASC Topic 946 does not necessarily preclude an entity
from being an investment company. Rule 2a-4 under the Investment Company Act of 1940, as amended, provides the basis for T+1 processing
typically associated with investment company activities. However, for Financial Reporting under GAAP, all activities will be reflected
on the trade date</I>.</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><U>Risk Factors Associated with bitcoin and
the Bitcoin Network Digital assets such as bitcoin are relatively new, page 10</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></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">9.</TD><TD STYLE="text-align: justify"><B>Comment:</B> Please revise your disclosure to provide quantitative information that demonstrates the
volatility of the price of bitcoin.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B>Response: </B>Revision has been
made to the referenced disclosure. The revised disclosure now states:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify"><I>The trading prices of many digital
assets, including bitcoin, have experienced extreme volatility in recent periods and may continue to do so. Based on the last ten years,
the historical annualized volatility of bitcoin was approximately 81%. Over the course of 2021, there were steep increases in the value
of certain digital assets, including bitcoin and multiple market observers asserted that digital assets were experiencing a &ldquo;bubble.&rdquo;
These increases were followed by steep drawdowns throughout 2022 in digital asset trading prices, including for bitcoin. In the 2021-2022
cycle, the price of bitcoin peaked at $67,734 and bottomed at $15,632, marking a steep 77% drawdown. These episodes of rapid price appreciation
followed by steep drawdowns have occurred multiple times throughout bitcoin&rsquo;s history, including in 2011, 2013-2014, and 2017-2018,
before repeating again in 2021-2022. Extreme volatility may persist and the value of the Shares may significantly decline in the future
without recovery. The digital asset markets may still be experiencing a bubble or may experience a bubble again in the future. For example,
in the first half of 2022, each of Celsius Network, Voyager Digital Ltd., and Three Arrows Capital declared bankruptcy, resulting in a
loss of confidence in participants of the digital asset ecosystem and negative publicity surrounding digital assets more broadly. In November
2022, FTX Trading Ltd. (&ldquo;FTX&rdquo;), one of the largest digital asset exchanges by volume at the time, halted customer withdrawals
amid rumors of the company&rsquo;s liquidity issues and likely insolvency, which were subsequently corroborated by its CEO. Shortly thereafter,
FTX&rsquo;s CEO resigned and FTX and many of its affiliates filed for bankruptcy in the United States, while other affiliates have entered
insolvency, liquidation, or similar proceedings around the globe, following which the U.S. Department of Justice brought criminal fraud
and other charges, and the SEC and CFTC brought civil securities and commodities fraud charges, against certain of FTX&rsquo;s and its
affiliates&rsquo; senior executives, including its former CEO. In addition, several other entities in the digital asset industry filed
for bankruptcy following FTX&rsquo;s bankruptcy filing, such as BlockFi Inc. and Genesis Global Capital, LLC (&ldquo;Genesis&rdquo;).
In response to these events (collectively, the &ldquo;2022 Events&rdquo;), the digital asset markets have experienced extreme price volatility
and other entities in the digital asset industry have been, and may continue to be, negatively affected, further undermining confidence
in the digital asset markets. These events have also negatively impacted the liquidity of the digital asset markets as certain entities
affiliated with FTX engaged in significant trading activity. If the liquidity of the digital asset markets continues to be negatively
impacted by these events, digital asset prices, including bitcoin, may continue to experience significant volatility or price declines
and confidence in the digital asset markets may be further undermined. In addition, regulatory and enforcement scrutiny has increased,
including from, among others, the Department of Justice, the SEC, the CFTC, the White House and Congress, as well as state regulators
and authorities. These events are continuing to develop and the full facts are continuing to emerge. It is not possible to predict at
this time all of the risks that they may pose to the Trust, its service providers or to the digital asset industry as a whole. Extreme
volatility in the future, including further declines in the trading prices of bitcoin, could have a material adverse effect on the value
of the Shares and the Shares could lose all or substantially all of their value. The Trust is not actively managed and will not take any
actions to take advantage, or mitigate the impacts, of volatility in the price of bitcoin.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify"><B></B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify"><B>&nbsp;</B></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">10.</TD><TD STYLE="text-align: justify"><B>Comment: </B>Please revise your disclosure to address the maximum number of bitcoins that may be released
into circulation, and the number of bitcoins currently in circulation.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B>Response: </B><I>Disclosure has
been added, stating as follows</I>:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify"><I>Under the source code that governs
the Bitcoin network, the supply of new bitcoin is mathematically controlled so that the number of bitcoin grows at a limited rate pursuant
to a pre-set schedule. The number of bitcoin awarded for solving a new block is automatically halved after every 210,000 blocks are added
to the Bitcoin blockchain, approximately every 4 years. Currently, the fixed reward for solving a new block is 6.25 bitcoin per block
and this is expected to decrease by half to become 3.125 bitcoin in approximately early 2024. This deliberately controlled rate of bitcoin
creation means that the number of bitcoin in existence will increase at a controlled rate until the number of bitcoin in existence reaches
the pre-determined 21 million bitcoin. However, the 21 million supply cap could be changed in a hard fork. As of December 2023, approximately
19.5 million bitcoins were outstanding and the date when the 21 million bitcoin limitation will be reached is estimated to be the year
2140</I>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><U>A temporary or permanent &quot;fork&quot;,
page 16</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></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">11.</TD><TD STYLE="text-align: justify"><B>Comment: </B>Please revise to provide an example of the impact that hard forks have had on crypto assets,
including quantitative information regarding the price of the impacted crypto asset immediately before and after the fork.</TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B>Response: </B><I>Disclosure has
been added, stating as follows</I>:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify"><I>For example, in August 2017, Bitcoin
&ldquo;forked&rdquo; into Bitcoin and a new digital asset, Bitcoin Cash, as a result of a several-year dispute over how to increase the
rate of transactions that the Bitcoin network can process. At the time of the fork, bitcoin was valued at roughly $2,700. Within approximately two weeks following the fork, bitcoin reached a value
of roughly $4,000, while nearly four months later in mid-December 2017, bitcoin reached an all-time high at the time of roughly $19,500,
before dropping to roughly $14,000 prior to year-end 2017. Forks
may also occur as a network community&rsquo;s response to a significant security breach. For example, in July 2016, Ethereum &ldquo;forked&rdquo;
into Ethereum and a new digital asset, Ethereum Classic, as a result of the Ethereum network community&rsquo;s response to a significant
security breach in which an anonymous hacker exploited a smart contract running on the Ethereum network to syphon approximately $60 million
of ETH held by the DAO, a distributed autonomous organization, into a segregated account. In response to the hack, most participants in
the Ethereum community elected to adopt a &ldquo;fork&rdquo; that effectively reversed the hack. However, a minority of users continued
to develop the original blockchain, now referred to as &ldquo;Ethereum Classic&rdquo; with the digital asset on that blockchain now referred
to as Ethereum Classic, or ETC. ETC now trades on several digital asset exchanges. 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 Ethereum and Ethereum Classic. In addition, many developers have previously initiated hard forks
in the Blockchain to launch new digital assets, such as Bitcoin Gold and Bitcoin Diamond. 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.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify"><I></I></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify"><I>Furthermore, a hard fork can lead to
new security concerns. For example, when the Ethereum and Ethereum Classic networks, two other digital asset networks, split in July 2016,
replay attacks, in which transactions from one network were rebroadcast to nefarious effect on the other network, plagued Ethereum exchanges
through at least October 2016. An Ethereum exchange announced in July 2016 that it had lost 40,000 Ethereum Classic, worth about $100,000
at that time, as a result of replay attacks. Similar replay attack concerns occurred in connection with the Bitcoin Cash and Bitcoin Satoshi&rsquo;s
Vision networks split in November 2018. Another possible result of a hard fork is an inherent decrease in the level of security due to
significant amounts of mining power remaining on one network or migrating instead to the new forked network. After a hard fork, it may
become easier for an individual miner or mining pool&rsquo;s hashing power to exceed 50% of the processing power of a digital asset network
that retained or attracted less mining power, thereby making digital asset networks that rely on proof-of-work more susceptible to attack.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify"><I>A hard fork may adversely affect the
price of bitcoin at the time of announcement or adoption. For example, the announcement of a hard fork could lead to increased demand
for the pre-fork digital asset, in anticipation that ownership of the pre-fork digital asset would entitle holders to a new digital asset
following the fork. The increased demand for the pre-fork digital asset may cause the price of the digital asset to rise. After the hard
fork, it is possible the aggregate price of the two versions of the digital asset running in parallel would be less than the price of
the digital asset immediately prior to the fork. Furthermore, while the Sponsor will, as permitted by the terms of the Trust Agreement,
determine which network is generally accepted as the Bitcoin network and should therefore be considered the appropriate network for the
Trust&rsquo;s purposes, there is no guarantee that the Sponsor will choose the network and the associated digital asset that is ultimately
the most valuable fork. Either of these events could therefore adversely impact the value of the Shares.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify"><I>A future fork in the Bitcoin network
could adversely affect the value of the Shares or the ability of the Trust to operate. </I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify"><I></I></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify"><I>In addition to forks, a digital asset
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. For example, in March 2017 the promoters of Stellar Lumens announced that anyone
that owned bitcoin as of June 26, 2017 could claim, until August 27, 2017, a certain amount of Stellar Lumens. Airdrops could create operational
security, legal or regulatory, or other risks for the Trust, the Sponsor, the Bitcoin Custodian, Authorized Participants, or other entities.</I></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><U>Bitcoin exchanges on which bitcoin trades
are relatively new, page 19</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></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">12.</TD><TD STYLE="text-align: justify"><B>Comment: </B>Please revise to divide this risk factor into separate risk factors with headings that
describe the specific risk highlighted. In this regard, we note, for example, that this risk factor currently addresses the risk related
to the lack of regulation of bitcoin exchanges, the risk of wash trading, the risk of fraudulent practices, and the risk of price manipulation.</TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B>Response: </B><I>The referenced
disclosure has been divided accordingly under two different headings: Risk of Fraud and Market Manipulation; and Price Volatility</I>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 7pt; text-align: justify"><B><U>The Trust and the Sponsor face competition
from competing products, page 21</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B>&nbsp;</B></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">13.</TD><TD STYLE="text-align: justify"><B>Comment: </B>We note your disclosure here and on page 39 that if the Trust fails to achieve sufficient
scale due to competition, the Sponsor may have difficulty raising sufficient revenue to cover the costs associated with launching and
maintaining the Trust. Please revise to quantify or otherwise describe what &ldquo;sufficient scale&rdquo; and &ldquo;sufficient revenue&rdquo;
mean.</TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B>Response: </B><I>The referenced
disclosure has been revised to state as follows:</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify"><I>If the Trust fails to achieve sufficient
scale, approximately $200 million in assets or more, due to competition, limited interest or otherwise, the Sponsor may have difficulty
in covering the costs associated with launching and maintaining the Trust and such shortfalls could impact the Sponsor&rsquo;s ability
to properly invest in robust ongoing operations and controls of the Trust to minimize the risk of operating events, errors, or other forms
of losses to the Shareholders.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.1in; text-align: justify"><B><U>Risk Factors Associated with the
Reference Rate</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.1in; text-align: justify"><B><U>The Reference Rate has a limited
history, page 28</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&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">14.</TD><TD STYLE="text-align: justify"><B>Comment: </B>We note your disclosure that the 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. Please revise, either here or in your description of the Trust and the reference rate, to
describe in greater detail the CF Constituent Exchange Criteria, and the composition and operation of such oversight body.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B>Response: </B><I>Disclosure has
been revised to describe the CF Constituent Exchange Criteria, the Oversight Committee, and the current Constituent Exchanges under the
heading Other Risks (pages 48-49).</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B>&nbsp;</B></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">15.</TD><TD STYLE="text-align: justify"><B>Comment: </B>Please expand your discussion to describe in greater detail the particular risks associated
with the limited operational history of the Reference Rate.</TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in"><B>Response: </B><I>Disclosure has been revised to expand
on the risks specific to the Reference Rate&rsquo;s limited operational history, as follows:</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify"><I>The Reference Rate has a limited history,
having first been introduced on February 28, 2022. The Reference Rate is also based on the BRR&rsquo;s methodology, which was introduced
November 14, 2016. The value of both the Reference Rate and the BRR is the average composite reference rate calculated using volume-weighted
trading price data from certain bitcoin exchanges (&ldquo;Constituent Exchanges&rdquo;). 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 (the &ldquo;Oversight Committee&rdquo;). This CF Constituent Exchange Criteria and the composition
of the Constituent Exchanges may change over time, and the current selection of Constituent Exchanges has only been in place since May
2022. Neither the Benchmark Administrator nor the Oversight Committee are obligated to take the needs of the Trust, the Shareholders,
or anyone else into consideration in connection with such changes. There is no guarantee that the methodology currently used in calculating
the Reference Rate will appropriately track the price of bitcoin in the future.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify"><I><BR>
For more information on the Oversight Committee, the Constituent Exchanges, and the CF Constituent Exchange Criteria in the Reference
Rate, see &ldquo;The Trust and Bitcoin Prices &mdash; The Reference Rate&rdquo;.</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-align: justify"><B><U>The Sponsor can discontinue using the Reference
Rate, page 28</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></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">16.</TD><TD STYLE="text-align: justify"><B>Comment: </B>We note your response to prior comment 6 and your disclosure that the Sponsor, in its
sole discretion, may select, remove, change, or replace the pricing or valuation methodology or policies used to value the Trust&rsquo;s
assets and determine NAV and NAV per Share, including the Reference Rate. We also note your disclosure on page 49 that the Sponsor reserves
the right to replace the Reference Rate with another valuation methodology which it believes will accurately track the price of bitcoin.
Please disclose here and on page 49 how you will notify investors of any material adjustments to the Reference Rate, including a change
in methodology or the Sponsor's decision to replace the Reference Rate or the Benchmark Administrator.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B>Response: </B><I>Disclosure has
been revised to note that Shareholders will be notified of changes to the Reference Rate or the Benchmark Administrator via prospectus
supplement or through a current report on Form 8-K or in the Trust&rsquo;s annual or quarterly reports.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B></B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B>&nbsp;</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><U>The lack of full insurance and Shareholders'
limited rights of legal recourse, page 31</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></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">17.</TD><TD STYLE="text-align: justify"><B>Comment: </B>Please expand this risk factor and page 52 to discuss the insurance policy held by the
Bitcoin Custodian so that investors understand the amount to which the insurance policy covers or does not cover the Trust's bitcoin held
by the Bitcoin Custodian.</TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B>Response: </B><I>Disclosure has
been added to the referenced risk factor, stating as follows:</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify"><I>Although the Bitcoin Custodian carries
insurance for the benefit of its account holders, the Bitcoin Custodian&rsquo;s insurance does not cover any loss in value to bitcoin
and only covers losses caused by certain events such as fraud or theft and, in such covered events, it is unlikely the insurance would
cover the full amount of any losses incurred by the Trust. The Bitcoin Custodian maintains a commercial crime insurance policy, which
is intended to cover the loss of client assets held in cold storage, including from employee collusion or fraud, physical loss including
theft, damage of key material, security breach or hack, and fraudulent transfer. The insurance maintained by the Bitcoin Custodian is
shared among all of the Bitcoin Custodian&rsquo;s customers, is not specific to the Trust or to customers holding bitcoin with the Bitcoin
Custodian, and may not be available or sufficient to protect the Trust from all possible losses or sources of losses.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><I>Disclosure has been added to the
referenced page 52, stating as follows:</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify"><I>The Bitcoin Custodian maintains an
annually renewed insurance policy in the amount of $320 million with comprehensive coverage terms and conditions. This insurance policy
covers the loss of client assets held in cold storage at the Bitcoin Custodian. This insurance program, which has continuously run since
2013, provides the Bitcoin Custodian and its clients with some of the broadest and deepest insurance coverage in the crypto industry,
with coverage designed to be comprehensive, including losses from employee collusion or fraud, physical loss (including theft), or damage
of key material, security breach or hack, and fraudulent transfer.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify"><I>The Bitcoin Custodian has advised the
Sponsor that, through its insurance program, it has insurance coverage up to a certain amount that could be used to repay losses of the
digital assets it custodies on behalf of its clients, including the Trust&rsquo;s bitcoin, resulting from theft. However, Shareholders
cannot be assured that the Bitcoin Custodian will maintain adequate insurance such that coverage will cover losses with respect to the
Trust&rsquo;s bitcoins, or that sufficient insurance proceeds necessarily will be available to cover the Trust&rsquo;s losses in full.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify"><I>The Bitcoin Custodian&rsquo;s insurance
covers losses resulting from employee collusion or fraud, physical loss (including theft), or damage of key material, security breach
or hack, and fraudulent transfer, but does not cover losses resulting from the Bitcoin Custodian&rsquo;s insolvency or certain other events.
The Bitcoin Custodian&rsquo;s insurance will not cover losses associated with the value of bitcoin and should not be viewed as insuring
against losses caused by the Trust&rsquo;s operations, performance, management or any of its other activities. For events that are covered
by the Bitcoin Custodian&rsquo;s insurance program, the Trust may be forced to share such insurance proceeds with other clients or customers
of the Bitcoin Custodian, which could reduce the amount of such proceeds that are available to the Trust. In addition, the bitcoin insurance
market is limited, and the level of insurance maintained by the Bitcoin Custodian may be substantially lower than the assets of the Trust.
While the Bitcoin Custodian maintains certain capital reserve requirements depending on the assets under custody, and such capital reserves
may provide additional sources of recovery in the event of losses, the Trust cannot be assured that the Bitcoin Custodian will maintain
capital reserves sufficient to cover actual or potential losses with respect to the Trust&rsquo;s digital assets.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify"><I>The Bitcoin Custodian will not be liable
for any amount greater than the value of the supported digital assets on deposit in the Trust&rsquo;s custodial account(s) at the time
of the event giving rise to the liability, subject further to the maximum liability limit of $100 million for each cold storage address.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify"><I>The Shareholders&rsquo; recourse against
the Sponsor, the Trustee, and the Trust&rsquo;s other service providers for the services they provide to the Trust, including, without
limitation, those relating to the holding of bitcoin or the provision of instructions relating to the movement of bitcoin, is limited.
For the avoidance of doubt, neither the Sponsor, the Trustee, nor any of their affiliates, nor any other party has guaranteed the assets
or liabilities, or otherwise assumed the liabilities, of the Trust, or the obligations or liabilities of any service provider to the Trust,
including, without limitation, the Bitcoin Custodian. Consequently, a loss may be suffered with respect to the Trust&rsquo;s bitcoin that
is not covered by the Bitcoin Custodian&rsquo;s insurance and for which no person is liable in damages. As a result, the recourse of the
Trust or the Shareholders, under applicable law, is limited.</I></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><U>The Sponsor may need to find and appoint
a replacement custodian quickly, page 35</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B>&nbsp;</B></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">18.</TD><TD STYLE="text-align: justify"><B>Comment: </B>Please revise this risk factor to address the risks associated with having to replace
the prime broker. Please also revise the risk factor disclosure in the first paragraph on page 31 to address the risks associated with
the insolvency, business failure or interruption, default, failure to perform, security breach, or other problems affecting the prime
broker.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B>Response: </B><I>The following disclosure
has been added to page 35:</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify"><I>The Sponsor may not be able to find
a party willing to serve as the custodian of the Trust&rsquo;s bitcoin or as the Trust&rsquo;s prime broker under the same terms as the
current Custodian Agreement or agreement with prime broker or at all. To the extent that Trustee is not able to find a suitable party
willing to serve as the custodian or prime broker, it may be necessary to terminate the Trust and liquidate the Trust&rsquo;s bitcoin.
In addition, to the extent that the Sponsor finds a suitable party but must enter into a modified Custodian Agreement or modified agreement
with prime broker that is less favorable for the Trust, the value of the Shares could be adversely affected. If the Trust is unable to
find a replacement prime broker, its operations could be adversely affected.</I></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in"><I>The following
disclosure has been added to page 31:</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: 0.5in"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify"><I>Prime broker could experience difficulties
from business failures, bankruptcies, hacking, fraud, crime, government investigations, or other negative developments affecting digital
asset businesses, including digital asset exchanges, or banks or other financial institutions and service providers which provide services
to the digital assets industry.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B>&nbsp;</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><U>The Exchange on which the Shares are listed,
page 37</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></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">19.</TD><TD STYLE="text-align: justify"><B>Comment: </B>Please reconcile your statement here and on pages 8 and 53 that the Trust&rsquo;s Shares
&ldquo;are&rdquo; listed for trading on the Exchange under the symbol &ldquo;BTCW,&rdquo; with disclosures elsewhere that indicate the
listing remains subject to notice of issuance.</TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 22.5pt"><B>Response: </B><I>The
referenced statements have been revised as follows:</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 0pt 1in; text-align: justify"><I>Although Shares of the Trust will be
publicly listed and traded on the Exchange, there can be no guarantee that an active trading market for the Trust will develop or be maintained.</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 0pt 1in; text-align: justify"><I>The Shares of the Trust will be listed
for trading, subject to notice of issuance, on the Exchange under the symbol &ldquo;BTCW.&rdquo; The Trust&rsquo;s Shares may be bought
and sold in the secondary market like any other exchange-listed security.</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-align: justify"><B><U>Extraordinary expenses resulting from unanticipated
events, page 40</U></B></P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">20.</TD><TD STYLE="text-align: justify"><B>Comment: </B>We note that the Sponsor may, in its sole discretion, increase the Sponsor Fee or decrease
the Sponsor-paid expenses. Please revise to disclose examples of when the Sponsor may increase the Sponsor Fee or decrease expenses it
pays, and disclose whether and how Shareholders will be notified.</TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B>Response: </B><I>The following disclosure
has been made:</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify"><I>For example, while the current Sponsor
Fee is a unitary fee in which the Sponsor agrees to pay all the fees of the Trust&rsquo;s service providers (except for extraordinary
expenses), the Sponsor may unwind part of this unitary fee and have a service providers&rsquo; (e.g., custodian&rsquo;s fee) charged directly
to the Trust. In that case, the Sponsor would provide 60 days&rsquo; advance notice to Shareholders via a posting on the Trust&rsquo;s
website or prospectus supplement or through a current report on Form 8-K or in the Trust&rsquo;s annual or quarterly reports</I>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B>&nbsp;</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><U>Bitcoin Protocol, page 42</U></B></P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">21.</TD><TD STYLE="text-align: justify"><B>Comment: </B>We note that in the event of a fork, the Trust will as soon as possible direct the Bitcoin
Custodian to distribute the new cryptocurrency in-kind to the Sponsor, as agent for the Shareholders, and the Sponsor will arrange to
sell the new cryptocurrency and for the proceeds to be distributed to the Shareholders. Please revise to clarify:</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></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: 94.5pt"></TD><TD STYLE="width: 9pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Whether you have criteria for determining whether
to support the inclusion of forked assets, and if so, please describe the criteria, including how you determine whether a fork is material;</FONT></TD></TR></TABLE>

<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: 94.5pt"></TD><TD STYLE="width: 9pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Describe the situations in which the Bitcoin
Custodian may not agree to provide the Trust with access to the new asset;</FONT></TD></TR></TABLE>

<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: 94.5pt"></TD><TD STYLE="width: 9pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Disclose how you will inform investors if your
or the Sponsor&rsquo;s policy with respect to forked assets changes;</FONT></TD></TR></TABLE>

<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: 94.5pt"></TD><TD STYLE="width: 9pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Describe the specifics of how the Sponsor will
arrange to sell the new cryptocurrency and distribute proceeds to the Shareholders, including whether and under what circumstances the
Sponsor will utilize an affiliate or third-party to sell the cryptocurrency;</FONT></TD></TR></TABLE>

<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: 94.5pt"></TD><TD STYLE="width: 9pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Discuss whether the policies and procedures for
forks are also applicable to airdrops or any other incidental rights to which the Trust has a claim;</FONT></TD></TR></TABLE>

<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: 94.5pt"></TD><TD STYLE="width: 9pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Disclose whether there would be any circumstances
in which the Trust could or would retain any incidental rights as assets of the Trust; and</FONT></TD></TR></TABLE>

<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: 94.5pt"></TD><TD STYLE="width: 9pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Disclose whether any entity will be responsible
for verifying the instructions that are in place with the Trustee and the Sponsor regarding forks.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 103.5pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B>Response: </B><I>The third and fourth
paragraphs of the referenced disclosure have been replaced by the following disclosure:</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify"><I>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. We refer to the right to receive any such benefit as an &ldquo;Incidental Right&rdquo; and any
such virtual currency acquired through an Incidental Right as &ldquo;IR Virtual Currency.&rdquo; The Sponsor has the right, in the Sponsor&rsquo;s
sole discretion, to determine: (i) with respect to any fork, airdrop or similar event, what action the Trust shall take, and (ii) what
action to take in connection with the Trust&rsquo;s entitlement to or ownership of Incidental Rights or any IR Virtual Currency. The Sponsor
intends to evaluate each fork, airdrop or similar occurrence on a case-by-case basis in consultation with the Trust&rsquo;s legal advisors,
tax consultants, the Delaware Trustee, and the Bitcoin Custodian. The Sponsor is under no obligation to realize any economic benefit from
any Incidental Rights or IR Virtual Currency on behalf of the Trust.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify"><I></I></P>

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    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify"><I>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 Shares in the Trust, from any such Incidental Rights or IR Virtual Currency. For instance, the Bitcoin
Custodian may not agree to provide access to Incidental Rights or IR Virtual Currency. In addition, the Sponsor may determine that there
is no safe or practical way to custody the IR Virtual Currency, or that trying to do so may pose an unacceptable risk to the Trust&rsquo;s
holdings in Bitcoin, or that the costs of taking possession and/or maintaining ownership of the IR Virtual Currency exceed the benefits
of owning the IR Virtual Currency. Additionally, laws, regulation or other factors may prevent Shareholders from benefitting from the
Incidental Right or IR Virtual Currency even if there is a safe and practical way to custody and secure the IR Virtual Currency. For example,
it may be illegal to sell or otherwise dispose of the Incidental Right or IR Virtual Currency, or there may not be a suitable market into
which the Incidental Right or IR Virtual Currency can be sold (immediately after the fork or airdrop, or ever). The Sponsor may also determine,
in consultation with its legal advisers, that the Incidental Right or IR Virtual Currency is, or is likely to be deemed, a security under
federal or state securities laws, or poses other legal or regulatory risks. In determining whether the Incidental Rights or IR Virtual
Currency is, or may be, a security under federal securities laws, the Sponsor takes into account a number of factors, including the definition
of a &ldquo;security&rdquo; under Section 2(a)(1) of the Securities Act and Section 3(a)(10) of the Exchange Act, SEC v. W.J. Howey Co.,
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. For these or other
reasons, the Sponsor may determine, in its discretion, to cause the Trust to irrevocably and permanently abandon, for no consideration,
such Incidental Right or IR Virtual Currency.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify"><I>If the Sponsor determines to attempt
to claim the Incidental Rights or IR Virtual Currency, it may elect to sell such assets for cash and distribute the cash proceeds (net
of expenses and any applicable withholding taxes) or distribute them in-kind to DTC, and registered holders of Shares are entitled to
receive such distributions in proportion to the number of shares owned. There can be no assurance that any of these courses of action
will prove to be successful, nor can there be any assurance as to the prices for any Incidental Rights or IR Virtual Currency that the
Sponsor or agent may realize. The value of the Incidental Rights or IR Virtual Currency may increase or decrease before or after any sale
by the Sponsor or the agent.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify"><I>Although the Sponsor is under no obligation
to do so, an inability to realize the economic benefit of a hard fork or airdrop could adversely affect the value of the Shares. Investors
who prefer to have a greater degree of control over events such as forks, airdrops, and similar events, and any assets made available
in connection with each, should consider investing in bitcoin directly rather than purchasing Shares. In the event that the Trust&rsquo;s
or Sponsor&rsquo;s policy with respect to forked asset changes, the Shareholders will be given 60 days&rsquo; advance notice via a posting
on the Trust&rsquo;s website or prospectus supplement or through a current report on Form 8-K in the Trust&rsquo;s annual or quarterly
reports.</I></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><U>Regulation of Bitcoin and Government Oversight,
page 45</U></B></P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">22.</TD><TD STYLE="text-align: justify"><B>Comment: </B>Please describe the AML, KYC and any other procedures conducted by the Trust, the Sponsor,
the Authorized Participant and the Custodians to determine, among other things, whether the counter-party in any transactions is not a
sanctioned entity.</TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B>Response: </B><I>Additional disclosure
has been made as follows</I>:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify"><I>The Trust and the Sponsor (or an affiliate
of the Sponsor) have adopted and implemented policies and procedures that are designed to comply with applicable anti-money laundering
laws and sanctions laws and regulations, including applicable know your customer (&ldquo;KYC&rdquo;) laws and regulations. The Sponsor
and the Trust will only interact with known third-party service providers with respect to whom the Sponsor or its affiliates have engaged
in a due diligence process. Each Authorized Participant is confirmed to be a U.S. registered broker-dealer prior to placing creation or
redemption orders with respect to the Trust.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify"><I>Furthermore, Authorized Participants,
as broker-dealers and Bitcoin Custodian, as an entity licensed to conduct virtual currency business activity by the New York Department
of Financial Services and a limited purpose trust company subject to New York Banking Law, respectively, are &ldquo;financial institutions&rdquo;
subject to the U.S. Bank Secrecy Act, as amended (&ldquo;BSA&rdquo;), and U.S. economic sanctions laws. The Trust will only accept in-kind
creation and redemption requests from Authorized Participants who have represented to the Trust that they have implemented compliance
programs that are designed to ensure compliance with applicable sanctions and anti-money laundering laws. In addition, with respect to
all bitcoin delivered in connection with creation requests, the party delivering bitcoin must establish an account with the Prime Broker
who has represented that diligence will be conducted to confirm that delivery is not from a digital currency address which has been added
to the list of Specially Designated Nationals whose assets are blocked, and with whom U.S. persons are generally prohibited from dealing.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: 0.5in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><U>The Trust and Bitcoin Prices Bitcoin Value,
page 47</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></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">23.</TD><TD STYLE="text-align: justify"><B>Comment: </B>Please describe the CME CF Oversight Committee, including how many members are on the
committee, how the committee members are selected, and how often the committee meets to consider changes to the Reference Rate and the
constituent exchanges.</TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B>Response: </B><I>Disclosure has
been revised to describe the CF Constituent Exchange Criteria, the Oversight Committee, and the current Constituent Exchanges under the
heading The Reference Rate.</I></P>

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

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

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></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">24.</TD><TD STYLE="text-align: justify"><B>Comment: </B>Please revise your disclosure to address the following regarding the Reference Rate:</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 94.5pt"></TD><TD STYLE="width: 9pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Describe the Benchmark Administrator&rsquo;s
criteria and explain how the identified constituent exchanges are selected;</FONT></TD></TR></TABLE>

<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: 94.5pt"></TD><TD STYLE="width: 9pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Include a brief description of each of the constituent
exchanges, including where they are located and how they are licensed and regulated;</FONT></TD></TR></TABLE>

<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: 94.5pt"></TD><TD STYLE="width: 9pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Disclose the extent to which any constituent
exchange has previously been removed from the Reference Rate by the Benchmark Administrator and the reasons thereof; and</FONT></TD></TR></TABLE>

<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: 94.5pt"></TD><TD STYLE="width: 9pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Disclose the extent to which the Benchmark Administrator
periodically reassesses the constituent exchanges and makes adjustments to the Reference Rate.</FONT></TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B>Response: </B><I>Disclosure has
been revised to describe the CF Constituent Exchange Criteria, the Oversight Committee, and the current Constituent Exchanges under the
heading The Reference Rate.</I></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><U>The Reference Rate, page 47</U></B></P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">25.</TD><TD STYLE="text-align: justify"><B>Comment: </B>We note your disclosure here and on page 5 that &ldquo;an oversight function is implemented
by the Benchmark Administrator in seeking to ensure that the Reference Rate is administered through codified policies for Reference Rate
integrity.&rdquo; Please revise to describe the Benchmark Administrator&rsquo;s oversight procedures to ensure that the Reference Rate
is administered through codified policies for Reference Rate integrity, and provide a brief description of the material codified policies
for Reference Rate integrity.</TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in"><B>Response: </B><I>Disclosure has been revised to further
describe the Benchmark Administrator&rsquo;s oversight procedures and codified policies, which includes a description of the policies
related to the Reference Rate&rsquo;s integrity, as follows (page 48):</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify"><I>An oversight function is implemented
by the Benchmark Administrator in seeking to ensure that the Reference Rate is administered through the Benchmark Administrator&rsquo;s
codified policies for Reference Rate integrity. The Reference Rate is administered through the Benchmark Administrator&rsquo;s codified
policies for index integrity, which have been developed to ensure compliance with the UK BMR regulations, which the Benchmark Administrator
is subject as a Registered Benchmark. The codified policies include the following:<BR>
<BR>
</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify"><I>&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Input data policy: The Input
Data Policy governs the data that the Benchmark Administrator uses in benchmark determinations.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify"><I>&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Surveillance policy: The
Surveillance Policy governs Benchmark Surveillance, which is accomplished through a series of measures that are the product of an analysis
of the Benchmark Administrator&rsquo;s methodologies and their susceptibility to manipulation.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify"><I>&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Conflicts of interest policy:
The Conflicts of Interest Policy governs the measures by which the Benchmark Administrator identifies, records, mitigates, and escalates
potential and actual conflicts of interest that might impact the integrity of the benchmarks.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify"><I>&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Governance &amp; Oversight
Framework: The framework sets forth the measures by which the Benchmark Administrator manages the benchmark life cycle including the relevant
junctures where Oversight Committee notification, escalation, review and resolution is relevant and required including the manner in which
the Benchmark Administrator identifies risks to benchmark integrity and the processes and procedures it follows to mitigate and eliminate
such risks.<BR>
<BR>
</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify"><I>The Benchmark Administrator&rsquo;s
compliance with such regulations has been subject to a Limited Assurance Audit under the ISAE 3000 standard as of September 12, 2022,
which is publicly available.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><U>Intraday Indicative Value, page 48</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B>&nbsp;</B></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">26.</TD><TD STYLE="text-align: justify"><B>Comment: </B>Please clarify how the intraday indicative value is calculated. In this regard, we note
your disclosure that it is calculated &quot;by using the prior day'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 Time Index (&ldquo;BRTI&rdquo;),
as reported by Bloomberg, L.P. or another reporting service.&rdquo;</TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B>Response: </B><I>The following disclosure
has been added:</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify"><I>In order to provide updated information
relating to the Trust for use by Shareholders, the Trust intends to publish an intraday indicative value (&ldquo;IIV&rdquo;) using the
CME CF Bitcoin Real Time Index (&ldquo;BRTI&rdquo;). One or more major market data vendors will provide an IIV updated every 15 seconds,
as calculated by the Exchange or a third-party financial data provider during the Regular Market Session. The IIV will be calculated by
using the prior day&rsquo;s closing NAV as a base and updating that value during the Regular Market Session to reflect changes in the
value of the Trust&rsquo;s NAV during the trading day.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify"><I>The IIV&rsquo;s dissemination during
the Regular Market Session should not be viewed as an actual real time update of the NAV, which will be calculated only once at the end
of each trading day. The IIV will be widely disseminated every 15 seconds during the Regular Market Session by one or more major market
data vendors. In addition, the IIV will be available through online information services.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify"><I></I></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify"><I>All aspects of the Index Methodology
are publicly available at the website of Index Provider, CF Benchmarks (www.cfbencharks.com). The CME CF Bitcoin Real Time Index is calculated
once per second, in real time by utilizing the Order Books of bitcoin &ndash; U.S. dollar trading pairs operated by all Constituent Exchanges.
An &ldquo;Order Book&#750; is a list of buy and sell orders with associated limit prices and sizes that have not yet been matched, that
is reported and disseminated by CF Benchmarks Ltd., as the BRTI calculation agent. The Order Books are aggregated into one consolidated
order book by the BRTI calculation agent. The mid-price volume curve, which is the average of the bid price-volume curve (which maps transaction
volume to the marginal price per cryptocurrency unit a seller is required to accept in order to sell this volume to the consolidated order
book) and the ask price-volume curve (which maps a transaction volume to the marginal price per cryptocurrency unit a buyer is required
to pay in order to purchase this volume from the consolidated order book). The mid price-volume curve is weighted by the normalized probability
density of the exponential distribution up to the utilized depth (utilized depth being calculated as the maximum cumulative volume for
which the mid spread-volume curve does not exceed a certain percentage deviation from the mid price). The BRTI is then given by the sum
of the weighted mid price-volume curve obtained in the previous step.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></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">27.</TD><TD STYLE="text-align: justify"><B>Comment: </B>Please clarify who calculates and disseminates the intraday indicative value. In this
regard, we note your disclosure that the Trust, the Sponsor and its affiliates are not involved in, or responsible for, the calculation
or dissemination of the IIV and make no warranty as to its accuracy.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B>Response:</B><I>. Please see the
response to Comment 26.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><U>Calculation of NAV, page 49</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></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">28.</TD><TD STYLE="text-align: justify"><B>Comment: </B>We note your response to prior comment 7. Please address the following with respect to
your application of ASC Topic 820:</TD></TR></TABLE>

<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: 94.5pt"></TD><TD STYLE="width: 9pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Provide us with your accounting policy for determining
the fair value of bitcoin in accordance with ASC Topic 820.</FONT></TD></TR></TABLE>

<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: 94.5pt"></TD><TD STYLE="width: 9pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">As the Trust is expected to primarily transact
with the bitcoin markets through the Authorized Participants, confirm for us that your determination of the principal market will be from
the perspective of the Authorized Participants.</FONT></TD></TR></TABLE>

<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: 94.5pt"></TD><TD STYLE="width: 9pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Tell us if you and/or your Authorized Participants
plan to transact in multiple markets. If so, ensure that your accounting policy reflects that fact and describes the types of markets
in which you and/or your Authorized Participants expect to transact. In that regard, we note that ASC 820-10-35-36A includes definitions
of four types of markets (e.g. brokered market, dealer market, exchange market, and principal to principal market).</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<P STYLE="margin-top: 0; margin-bottom: 0"></P>

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<P STYLE="margin-top: 0; margin-bottom: 0">&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: 94.5pt"></TD><TD STYLE="width: 9pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Confirm for us that your principal market will
be one which you or your Authorized Participants will be able to access and clarify for us whether you anticipate your principal market
will be one in which you or your Authorized Participants will normally transact. Refer to ASC Topics 820-10-35-6A and 820-10-35-5A respectively.</FONT></TD></TR></TABLE>

<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: 94.5pt"></TD><TD STYLE="width: 9pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">You disclose that the Trust&rsquo;s NAV will
be calculated using the current market value determined on the basis of U.S. GAAP and that the Sponsor will publish the NAV, NAV per Share,
Reference Rate and the Trust&rsquo;s bitcoin holdings. Tell us and enhance your disclosures to clarify 1) if the Reference Rate will form
the basis for your determination of fair value in accordance with U.S. GAAP and 2) how your determination of the &ldquo;current market
value and or Reference Rate&quot; for bitcoin is consistent with the guidance in ASC Topic 820-10-35-6A which states that the principal
market shall be considered from the perspective of the reporting entity.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 103.5pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B>Response: </B><I>Disclosure has
been revised to address each of the foregoing items under the section entitled &ldquo;Calculation of NAV&rdquo; section of the Prospectus.</I></P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">29.</TD><TD STYLE="text-align: justify"><B>Comment: </B>You state that the &quot;pause between 4:00 p.m. EST and 5:30 p.m. EST (or later) provides
an opportunity to algorithmically detect, flag, investigate, and correct unusual pricing should it occur.&quot; Please revise to clarify
who is responsible for monitoring for unusual pricing, who can correct the price, and how any such correction would impact the Reference
Rate and/or NAV.</TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B>Response: </B><I>The referenced
statement has deleted and the disclosure revised.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><U>Additional Information About the Trust &ndash;
The Trust's Fees and Expenses, page 50</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></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">30.</TD><TD STYLE="text-align: justify"><B>Comment:</B> Please expand this section to describe the mechanics of how the Sponsor will sell bitcoin,
and how the Bitcoin Custodian may facilitate the Sponsor&rsquo;s sale of bitcoin, to pay the Sponsor Fee and Trust&rsquo;s expenses and
liabilities, including whether the Bitcoin Custodian will use an affiliate to assist in the sale of the Trust&rsquo;s bitcoin, and, if
so, disclose any risks or conflicts of interests that may exist in connection with how the Trustee or Sponsor arranges for the sale of
the Trust&rsquo;s bitcoin.</TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B>Response: </B><I>The referenced
disclosure has been replaced by the following disclosure:</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: 24.5pt"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify"><I>To cover the Sponsor&rsquo;s Fee and
expenses not assumed by the Sponsor, the Sponsor or its delegate will cause the Trust (or its delegate) to convert bitcoin into U.S. dollars
at the price available through Coinbase, Inc. (&ldquo;Coinbase Inc.&rdquo; or the &ldquo;Prime Broker&rdquo;, which is an affiliate of
the Bitcoin Custodian). The number of bitcoins represented by a Share will decline each time the Trust pays the Sponsor Fee or any Trust
expenses not assumed by the Sponsor by transferring or selling bitcoins. The Trust is responsible for paying any costs associated with
the transfer of bitcoin to the Sponsor or the sale of bitcoin. However, under the terms of each Authorized Participant Agreement, the
Authorized Participants will be responsible for any brokerage or transaction costs associated with the sale or transfer of Bitcoin incurred
in connection with the fulfillment of a creation or redemption order.</I></P>

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

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

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

<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">31.</TD><TD STYLE="text-align: justify"><B>Comment: </B>Please disclose whether the Trust is responsible for paying any costs associated with
the transfer of bitcoin to the Sponsor or the sale of bitcoin for expenses not included in the Sponsor Fee. Also disclose whether any
of the Trust's expenses payable by the Sponsor from the Sponsor Fee are capped.</TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B>Response: </B><I>The Registrant
confirms that the Trust&rsquo;s expenses that are assumed by the Sponsor under the Sponsor Fee are not capped. Appropriate disclosure
has been added to the referenced disclosure. The Trust is responsible for the expenses associated with the sale of bitcoin necessary to
pay the Sponsor Fee. Under the terms of each Authorized Participant Agreement, the Authorized Participants will be responsible for any
brokerage or transaction costs associated with the sale or transfer of Bitcoin incurred in connection with the fulfillment of a creation
or redemption order.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><U>Amendments, page 50</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></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">32.</TD><TD STYLE="text-align: justify"><B>Comment: </B>Please revise to disclose how and when the Sponsor will notify the Shareholders of material
amendments to the Trust Agreement.</TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B>Response: </B><I>The referenced
disclosure has been revised as follows</I>:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify"><I>The Sponsor and the Trustee may agree
to amend the Trust Agreement or Sponsor Agreement, as applicable, without Shareholder consent. The Sponsor shall determine the contents
and manner of notice of any Trust Agreement amendment. Such notice may be provided on the Trust&rsquo;s website, in a prospectus supplement,
through a current report on Form 8-K and/or in the Trust&rsquo;s annual or quarterly reports. If an amendment to the Trust Agreement or
Sponsor Agreement imposes new fees and charges or increases existing fees or charges, including the Sponsor Fee (except for taxes and
other governmental charges, registration fees or other such expenses), or prejudices a substantial right of Shareholders, it will become
effective for outstanding Shares 30 days after notice of such amendment is given to registered owners. Shareholders that are not registered
owners (which most Shareholders will not be) may not receive specific notice of a fee increase other than through an amendment to the
prospectus. Moreover, at the time an amendment becomes effective, by continuing to hold Shares, Shareholders are deemed to agree to the
amendment and to be bound by the Trust Agreement and Sponsor Agreement as amended without specific agreement to such increase (other than
through the &ldquo;negative consent&rdquo; procedure described above).</I></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><U>Termination of the Trust, page 50</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B>33.&nbsp;Comment:
</B>Please revise to clarify whether Shareholders will receive bitcoin or cash upon the termination of the Trust. In addition, if Shareholders
will be entitled to cash, please explain how the Trust's bitcoin will be sold in connection with the termination of the Trust.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B>Response: </B><I>The following disclosure
has been added</I>:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify"><I>The term of the Trust is perpetual
(unless terminated earlier in certain circumstances). On and after termination of the Trust, the Trustee will wind up the business and
affairs of the Trust and deliver Trust property upon surrender and cancellation of Shares. The Trustee will not accept any purchase order
or redemption order after the date of dissolution. If any Shares remain outstanding after the date of dissolution of the Trust, the Trustee
thereafter will (i) discontinue the registration of transfer of Shares; (ii) continue to collect distributions pertaining to Trust property
and hold proceeds thereof uninvested, without liability for interest; and (iii) pay the Trust&rsquo;s expenses and may sell Trust property
as necessary to meet those expenses. After the dissolution of the Trust, the Trustee will sell or otherwise liquidate the Trust property
then held and after deducting any fees, expenses, taxes or other governmental charges payable by the Trust and any expenses for the account
of DTC of such Shares and any applicable taxes or other governmental charges, promptly distribute the net proceeds from such sale to DTC.
The Trustee and the Sponsor shall not be liable for any loss or depreciation resulting from any sale or other disposition of property
made by the Trustee pursuant to the Sponsor&rsquo;s instruction or otherwise made by the Trustee in good faith. The proceeds of the liquidation
of the Trust&rsquo;s assets are expected to be distributed in cash. Shareholders are not entitled to any of the Trust&rsquo;s underlying
bitcoin holdings upon the dissolution of the Trust.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><U>The Trust's Service Providers The Sponsor,
page 51</U></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B>34.&nbsp;Comment:
</B>Please revise to discuss the Sponsor&rsquo;s experience sponsoring exchange traded products and specifically its experience related
to crypto asset markets.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B>Response: </B><I>The following language
has been added:</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify"><I>The Sponsor is a wholly-owned subsidiary
of WisdomTree, Inc. The Sponsor is a wholly-owned subsidiary of WisdomTree, Inc. (formerly WisdomTree Investments, Inc.), a global financial
innovator that, through its other subsidiaries worldwide (collectively, &ldquo;WisdomTree&rdquo;), makes available ETFs, including those
that hold bitcoin and other digital assets, as well as bitcoin futures. WisdomTree has also developed and launched next-generation digital
products, services and structures, including digital or blockchain-enabled mutual funds and tokenized assets, as well as a blockchain-native
digital wallet with bitcoin and ether available for purchase, sale and holding. While the Sponsor has not managed an ETF investing in
commodities or digital assets, such as bitcoin, prior to the Trust, the Sponsor will leverage WisdomTree&rsquo;s heritage of innovation
and extensive experience regarding bitcoin and the digital asset markets.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B></B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><U>Custody of the Trust's Assets, page 52</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B>35.&nbsp;Comment:
</B>We note your disclosure here and on page 7 that the Bitcoin Custodian will keep a substantial portion of the private keys associated
with the Trust&rsquo;s bitcoin in cold storage or similarly secure technology, with any remainder held as part of a hot storage. Please
revise your disclosure to describe the &ldquo;similarly secure technology.&rdquo; In addition, we note that the Trust may receive cash
or bitcoin from the Authorized Participants in connection with creations and may give the Authorized Participants bitcoin or cash in connection
with redemptions. Please disclose how and when the Bitcoin Custodian is directed to transfer the bitcoin from the Cold Vault Balance to
the Hot Vault Balance or from the Hot Vault Balance to the Cold Vault Balance in connection with (i) receiving bitcoin from the Authorized
Participants, (ii) selling bitcoin to pay the Trust's expenses and liabilities, (iii) transferring bitcoin to the Authorized Participants,
and (iv) paying the Sponsor's fee. Please also quantify the percentage of the Trust's private keys that will be held in cold storage.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B>Response: </B><I>The reference to
&ldquo;similarly secure technology&rdquo; has been removed. Disclosure has been added under the section entitled &ldquo;Custody of the
Trust&rsquo;s Assets&rdquo; to address the comment.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B>36.&nbsp;Comment:
</B>We note your response to prior comment 9 and re-issue in part. Please revise to describe the material terms of your agreement with
the Bitcoin Custodian and Cash Custodian. In addition, please revise to disclose whether any entity will be responsible for verifying
the existence of the Trust&rsquo;s bitcoins.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B>Response: </B><I>Disclosure has
been added under the section entitled &ldquo;Custody of the Trust&rsquo;s Assets&rdquo; to address the comment.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B>37.&nbsp;Comment:
</B>We note that Coinbase, an affiliate of the Bitcoin Custodian, may provide prime broker services, including bitcoin trade execution,
from time to time as requested by the Sponsor. Please provide a separately captioned section to describe the prime broker, including without
limitation any affiliation and relationship with the other transaction parties, the material provisions of any material agreement between
any transaction party and the prime broker, the prime broker&rsquo;s experience and operating history, the prime broker's policies and
procedures with respect to any assets held by it on behalf of the Trust, how the prime broker will be compensated, who will be responsible
for any fees associated with bitcoin transactions between the Authorized Participants, Bitcoin Custodian and prime broker, and any potential
or existing conflicts of interest involving the prime broker. Please also disclose whether any assets of the Trust will be held at the
prime broker, and if so, whether or not those assets will be held in segregated accounts and whether there are any limits on the percentage
or amount of Trust assets that may be held at the prime broker at any point in time.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B>Response: </B><I>The referenced
disclosure has been revised to address this comment under the section entitled &ldquo;Custody of the Trust&rsquo;s Assets.&rdquo;</I></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><U>Plan of Distribution, page 53</U></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B>38.&nbsp;Comment:
</B>Please identify by name all of the Authorized Participants with which you have an agreement at the time of effectiveness of the registration
statement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B>Response: </B><I>The Registrant
is still in the process of negotiating AP Agreements and will respond further to this comment in a future amendment.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><U>Creation and Redemption of Shares, page
55</U></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B>39.&nbsp;Comment:
</B>Please revise to describe how the creation and redemption process for both in-kind and cash transactions will work between the Trust,
the Authorized Participants, the Bitcoin Custodian and the Cash Custodian. For example:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B>&nbsp;</B></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: 94.5pt"></TD><TD STYLE="width: 9pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Please revise to include a statement that creation
and redemption transactions will not be settled on-chain.</FONT></TD></TR></TABLE>

<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: 94.5pt"></TD><TD STYLE="width: 9pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Please describe the specifics of how an Authorized
Participant will &ldquo;facilitate the deposit of bitcoin&rdquo; with the Bitcoin Custodian, including the various steps necessary to
transfer the bitcoin to its ultimate storage location with the Bitcoin Custodian, and whether and under what circumstances the Authorized
Participant will utilize an affiliate or third party to transfer bitcoin to the Bitcoin Custodian.</FONT></TD></TR></TABLE>

<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: 94.5pt"></TD><TD STYLE="width: 9pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Please revise to disclose whether your Authorized
Participants will be required to maintain an account with your Bitcoin Custodian and Cash Custodian, and whether and how the Authorized
Participants are able to participate directly in the acquisition, transfer or receipt of bitcoin.</FONT></TD></TR></TABLE>

<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: 94.5pt"></TD><TD STYLE="width: 9pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Please revise to discuss the impact that volatility
in the spot bitcoin market may have on the Trust&rsquo;s ability to purchase or sell bitcoin at the same value as the Basket Deposit or
redemption distribution.</FONT></TD></TR></TABLE>

<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: 94.5pt"></TD><TD STYLE="width: 9pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Please revise to disclose the price at which
the Trust will seek to transact in bitcoin and whether the Trust may profit from any spread between the price of the bitcoin transaction
and the price of the creation or redemption transaction.</FONT></TD></TR></TABLE>

<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: 94.5pt"></TD><TD STYLE="width: 9pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">For cash creation and redemption transactions,
please explain how the Cash Custodian will facilitate the transfer of cash for the purchase of bitcoin, or vice versa, including the identity
of any other entities involved of those transactions, whether there are any additional fees paid to the Cash Custodian or other entities
involved in the purchase or sale of bitcoin, and who bears the risk of any volatility in the price of bitcoin.</FONT></TD></TR></TABLE>

<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: 94.5pt"></TD><TD STYLE="width: 9pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Please also clarify whether, for cash creations,
the shares will be issued upon receipt of the cash by the Cash Custodian, or upon receipt of the bitcoin by the Bitcoin Custodian.</FONT></TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B>Response: </B><I>The referenced
disclosure has been revised to address the comment.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B></B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><U>Suspension or Rejection of Redemption Orders,
page 56</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B>40.&nbsp;Comments:
</B>Please revise to provide a more detailed description of what is deemed as an &quot;emergency&quot; such that the delivery, disposal
or evaluation of bitcoin is not reasonably practicable, and disclose the factors the Sponsor will consider to determine whether the suspension
of creations and redemptions or the postponement of settlement dates are necessary for the protection of the Shareholders. Please also
revise to disclose whether and how the Sponsor will notify investors of such suspensions, and describe the potential impact of suspending
creations and redemptions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B>Response: </B><I>The first paragraph
of the referenced disclosure has been revised as follows</I>:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify"><I>The Sponsor may, in its discretion,
suspend the right of redemption, or postpone the redemption settlement date, (1) for any period during which the Exchange is closed other
than customary weekend or holiday closings, or trading on the Exchange is suspended or restricted, (2) for any period during which an
emergency (for example, an interruption in services or availability of the Bitcoin Custodian, Cash Custodian, Administrator, or other
service providers to the Trust, act of God, catastrophe, civil disturbance, government prohibition, war, terrorism, strike or other labor
dispute, fire, force majeure, interruption in telecommunications, order entry systems, Internet services, or network provider services,
unavailability of Fedwire, SWIFT or banks&rsquo; payment processes, significant technical failure, bug, error, disruption or fork of the
Bitcoin network, hacking, cybersecurity breach, or power, Internet, or Bitcoin network outage, or similar event) exists as a result of
which delivery, disposal or evaluation of bitcoin is not reasonably practicable, or (3) for such other period as the Sponsor determines
to be necessary for the protection of the Shareholders. For example, the Sponsor may determine that it is necessary to suspend redemptions
to allow for the orderly liquidation of the Trust&rsquo;s assets. If the Sponsor has difficulty liquidating the Trust&rsquo;s positions,
e.g., because of a market disruption event or an unanticipated delay in the liquidation of a position in an over-the-counter contract,
it may be appropriate to suspend redemptions until such time as such circumstances are rectified. None of the Sponsor, the person authorized
to take redemption orders in the manner provided in the Authorized Participant Agreement, or the Bitcoin Custodian or Cash Custodian will
be liable to any person or in any way for any loss or damages that may result from any such suspension or postponement.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><U>Creation and Redemption Transaction Fee,
page 57</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B>41.&nbsp;Comment</B>:
Please revise to disclose the amount of transaction fee that is payable by Authorized Participants to create or redeem Baskets, including
the basis on which such fee is calculated and the timing and manner in which such fee may be paid, and the circumstances under which the
Sponsor may reduce, increase or otherwise change such fee.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B>Response: </B><I>The following disclosure
has been added:</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><I>In connection with a cash creation
order or cash redemption order, an Authorized Participant is responsible for the cash transaction fee, which consist of the operational
processing and brokerage costs, transfers fees, network fees and stamp taxes. </I></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><U>Use of Proceeds, page 58</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B>42.&nbsp;Comment:
</B>Please disclose whether the Cash or Bitcoin Custodian will use a third party or affiliate to assist in the purchase of bitcoin, and,
if so, disclose any risks or conflicts of interests that may exist in connection with how such Custodian arranges for the purchase of
the Trust&rsquo;s bitcoin.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B>Response: </B><I>Disclosure has
been added to the section entitled &ldquo;The Trust&rsquo;s Fees and Expenses&rdquo; of the prospectus, stating as follows:</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify"><I>To cover the Sponsor&rsquo;s Fee and
expenses not assumed by the Sponsor, the Sponsor or its delegate will cause the Trust (or its delegate) to convert bitcoin into U.S. dollars
at the price available through Coinbase, Inc. (&ldquo;Coinbase Inc.&rdquo; or the &ldquo;Prime Broker&rdquo;, which is an affiliate of
the Bitcoin Custodian). The sales of the Trust&rsquo;s bitcoin will be facilitated through the Prime Broker. The number of bitcoins represented
by a Share will decline each time the Trust pays the Sponsor&rsquo;s Fee or any Trust expenses not assumed by the Sponsor by transferring
or selling bitcoins. The Trust is responsible for paying any costs associated with the transfer of bitcoin to the Sponsor or the sale
of bitcoin.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><I>Disclosure has been added to the
section entitled &ldquo;Conflicts of Interest&rdquo; of the prospectus, stating as follows:</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify"><B><I>Prime Broker</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify"><I>The Trust may engage in sales of bitcoin
by placing orders with the Prime Broker. The Prime Broker will route orders placed by the Sponsor through the prime broker execution platform
(the &ldquo;Trading Platform&rdquo;) to a connected Trading Venue where the order will be executed. Each order placed by the Sponsor will
be sent, processed and settled at each connected Trading Venue to which it is routed. The Prime Broker Agreement provides that the Prime
Broker is subject to certain conflicts of interest, including: (i) the Trust&rsquo;s orders may be routed to the Prime Broker&rsquo;s
own execution venue where the Trust&rsquo;s orders may be executed against other customers of the Prime Broker or with the Coinbase acting
as principal, (ii) the beneficial identity of the counterparty purchaser or seller with respect to the Trust&rsquo;s orders may be unknown
and therefore may inadvertently be another client of the Prime Broker, (iii) the Prime Broker does not engage in front-running, but is
aware of the Trust&rsquo;s orders or imminent orders and may execute a trade for its own inventory (or the account of an affiliate) while
in possession of that knowledge and (iv) the Prime Broker may act in a principal capacity with respect to certain orders. As a result
of these and other conflicts, when acting as principal, the Prime Broker may have an incentive to favor its own interests and the interests
of its affiliates over the Trust&rsquo;s interests.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B></B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><U>Conflicts of Interest, page 59</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B>43.&nbsp;Comment:
</B>We note your response to prior comment 12 and re-issue in part. Please revise to disclose whether you have a code of conduct or other
requirements for pre-clearance of bitcoin- related transactions that apply to your employees, the Sponsor, or any of its affiliates.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B>Response: </B><I>The Registrant
confirms that the Sponsor has a Code of Conduct that applies to applicable personnel of the Sponsor and requires pre-clearance of bitcoin.
The referenced disclosure has been revised accordingly.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><U>Management; Voting by Shareholders, page
62</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B>44.&nbsp;Comment:
</B>Please revise to describe in greater detail the &ldquo;limited circumstances&rdquo; under which Shareholders have voting rights under
the Trust Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B>Response: </B><I>The referenced
disclosure has been revised as follows</I>:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify"><I>Shareholders have the right to vote
only if expressly required under Delaware or federal law or rules or regulations of the Exchange, or if submitted to the Shareholders
by the Sponsor in its sole discretion.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><U>Governing Law; Consent to Delaware Jurisdiction,
page 63</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B>45.&nbsp;Comment:
</B>We note your disclosure that each Shareholder consents to the exclusive jurisdiction of the courts of the State of Delaware and any
federal courts located in Delaware. Please disclose whether this provision applies to actions arising under the Securities Act or Exchange
Act. If so, please also state that there is uncertainty as to whether a court would enforce such provision. If the provision applies to
Securities Act claims, please also state that investors cannot waive compliance with the federal securities laws and the rules and regulations
thereunder. In that regard, we note that Section 22 of the Securities Act creates concurrent jurisdiction for federal and state courts
over all suits brought to enforce any duty or liability created by the Securities Act or the rules and regulations thereunder. If this
provision does not apply to actions arising under the Securities Act or Exchange Act, please also ensure that the exclusive forum provision
in the governing documents states this clearly, or tell us how you will inform investors in future filings that the provision does not
apply to any actions arising under the Securities Act or Exchange Act.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B>Response: </B><I>The referenced
disclosure has been revised as follows:</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify"><I>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 except for causes of action for violation of U.S. federal or state securities laws. 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, provided that (i) the forum selection provisions do not apply to suits brought to enforce
a duty or liability created by the Exchange Act or any other claim for which the federal courts have exclusive jurisdiction and (ii) the
federal district courts of the United States of America shall be the exclusive forum for the resolution of any complaint asserting a cause
of action arising under the Securities Act, or the rules and regulations promulgated thereunder. Such consent is not required for any
person to assert a claim of Delaware jurisdiction over the Sponsor or the Trust.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B></B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B>&nbsp;</B></P>

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify"></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="font-size: 10pt">Sincerely,</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: Black 1pt solid; width: 25%; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">/s/Ryan Louvar</FONT></TD>
    <TD STYLE="width: 25%">&nbsp;</TD>
    <TD STYLE="width: 50%">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">Ryan Louvar, Esq.</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</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: 3%; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">cc: </FONT></TD>
    <TD STYLE="width: 97%">Todd Zerega, Esq. (Perkins Coie
LLP)</TD></TR>
  </TABLE>


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