WisdomTree Bitcoin Fund

What they do

The Trust holds bitcoin through custodian Coinbase Custody Trust Company LLC and issues common shares of beneficial interest representing fractional undivided interests in net assets. It offers and redeems Shares only in 5,000-Share Baskets to Authorized Participants. WisdomTree Digital Commodity Services, LLC is the Sponsor and manager; the Trust has no directors, officers or employees. It is not registered as an investment company under the 1940 Act and does not trade CFTC-regulated futures.

Revenue drivers

• Bitcoin price exposure — Substantially all returns come from changes in the value of the Trust's bitcoin holdings; net realized and unrealized loss on bitcoin was $(55,201,133) for the six months ended June 30, 2026.
• Share creation activity — The Trust takes in bitcoin when Authorized Participants create 5,000-Share Baskets and distributes bitcoin on redemptions, so net assets grow or shrink with creations and redemptions rather than product sales.
• Sponsor fee drag — The Trust pays the Sponsor a unified fee of 0.25% per annum; this produced a net investment loss of $(186,781) for the six months ended June 30, 2026, versus $(300,275) a year earlier.

Recent performance

For the three months ended June 30, 2026, the Trust reported a net decrease in net assets from operations of $(21,438,204), driven by a $(21,338,756) net realized and unrealized loss on bitcoin as the price fell from $68,097.76 on March 31, 2026 to $59,101.49 on June 30, 2026. For the six months ended June 30, 2026, the net decrease from operations was $(55,387,914) versus $(3,168,786) in the first half of 2025. Net investment loss narrowed to $(186,781) for the six months ended June 30, 2026 from $(300,275) a year earlier. Net assets stood at $136,476,680 at June 30, 2026, down from $165,872,607 at June 30, 2025. At December 31, 2025 the Trust held 1,598.2538 bitcoins valued at $139,552,377 on the Reference Rate, or $87,315.53 per bitcoin.

Strategy

The Trust is a passive vehicle that seeks only to track the price of bitcoin, less expenses and liabilities; the Sponsor does not speculatively sell at highs or buy at lows. It does not use leverage, derivatives or similar arrangements, and does not lend or pledge Trust assets except to secure repayment of Trade Credits. Valuation follows the CME CF Bitcoin Reference Rate - New York Variant for NAV, with a GAAP-consistent Coinbase-based principal market price used for financial statements. The Sponsor may replace the Reference Rate, the Benchmark Administrator or the valuation methodology if it deems them unreliable, with notice to Shareholders via website posting, prospectus supplement, post-effective amendment, Form 8-K, or annual or quarterly reports. Bitcoin is held entirely by Coinbase Custody Trust Company LLC.

Risks

• Bitcoin price volatility — Trading prices for bitcoin have been extremely volatile, and a decline in its price directly and fully reduces the value of the Shares.
• Concentration and total loss — Because the Trust holds only bitcoin, Shareholders could lose all or substantially all of their investment.
• Custody concentration — All of the Trust's bitcoin is held by a single custodian, Coinbase Custody Trust Company LLC.
• Early-stage asset adoption — The Bitcoin network has a limited history, and slowing or stopping of its development or acceptance could adversely affect the Trust.

Outlook

The filings do not provide forward guidance; the Trust states it is not aware of any trends, demands, conditions or events reasonably likely to result in material changes to its liquidity needs. Management reiterates the objective of tracking bitcoin's price less expenses, with no leverage or derivatives. Results will continue to depend on bitcoin prices and on creations and redemptions of 5,000-Share Baskets. The Sponsor notes it does not expect fair-value determinations to be a common occurrence.