Grayscale Bitcoin Trust ETF

What they do

The Trust holds Bitcoin as its sole asset and issues Shares in Baskets of 10,000 to Authorized Participants in exchange for Bitcoin. Its investment objective is for the value of the Shares to reflect the value of Bitcoin held, less expenses, and it does not use leverage or derivatives. The Trust is managed by Sponsor Grayscale Investments Sponsors, LLC, with Coinbase Custody Trust Company, LLC as custodian.

Revenue drivers

• Bitcoin holdings — The Trust's sole source of value is its Bitcoin holdings, which were approximately 0.8% of Bitcoin in circulation as of December 31, 2025. Revenue is driven by the fair value of these holdings, not by operating income.
• Sponsor's Fee — The Trust pays the Sponsor's Fee in Bitcoin, which is the primary expense and deducted from assets. The fee is a percentage of the Trust's net asset value, and fee revenue to the Sponsor increases with the size of the Trust's Bitcoin holdings.
• Share creations and redemptions — The Trust issues Shares in exchange for Bitcoin and redeems Shares for Bitcoin, facilitating the flow of assets. This activity does not generate revenue but affects the amount of Bitcoin held and thus the total fee base.

Recent performance

For fiscal year 2025, the Trust reported a net loss of $993.5 million, compared to net income of $16.09 billion in 2024. Operating cash flow declined to $3.70 billion in 2025 from $21.49 billion in 2024. As of June 30, 2026, the Trust had total assets of $8.14 billion and no liabilities. The Trust's NAV is calculated using the CoinDesk Bitcoin Benchmark Rate from April 1, 2026.

Strategy

The Trust is a passive vehicle with a stated objective to track Bitcoin's price, not to generate returns beyond that. Management's strategy is to maintain a simple, cost-efficient structure with cold storage custody and no leverage or derivatives. The Sponsor focuses on operational aspects such as redemption program availability and transparency of NAV reporting, with no active investment management.

Risks

• Bitcoin price volatility — The value of the Shares is directly tied to Bitcoin's price, and significant volatility or declines in Bitcoin's market value would adversely affect the Trust's NAV and Share price.
• Custody risk — The Trust's Bitcoin is held by Coinbase Custody Trust Company, LLC in cold storage; any failure in custody or security could result in loss of assets, and the Trust is subject to minimal credit risk with respect to the Custodian.
• Regulatory risk — If Bitcoin is determined to be a security under federal securities laws, the Sponsor may dissolve the Trust or seek to operate it under the Investment Company Act, which could result in extraordinary expenses or termination.
• Index methodology change — The Trust changed its valuation index from CoinDesk Bitcoin Price Index (XBX) to CoinDesk Bitcoin Benchmark Rate effective April 1, 2026, which could affect NAV calculations and investor perception.

Outlook

Management does not provide forward-looking guidance for Bitcoin price or Trust performance, given its passive nature. The Trust will continue to issue and redeem Shares based on Authorized Participant demand, and its primary focus is on maintaining accurate NAV determination and custody arrangements. Potential dissolution remains a possibility under specific circumstances such as regulatory determinations.