Osprey Bitcoin Trust

What they do

The Trust is a passive investment vehicle that issues shares representing fractional undivided beneficial interests in its net assets, which consist primarily of Bitcoin held by Coinbase Custody Trust Company. It does not hold or trade commodity futures contracts and is not registered as an investment company under the 1940 Act. The Trust's investment objective is for its shares to reflect Bitcoin's performance, less expenses and liabilities.

Revenue drivers

• Bitcoin price appreciation — The Trust's net assets and NAV are directly tied to the market price of Bitcoin. In 2024, a Bitcoin price increase from $42,014 to $93,393 drove a net realized and unrealized gain of $120,959,062.
• Management Fee — The Sponsor earns a Management Fee, paid in U.S. dollars, for managing the Trust. In 2024, the fee was $678,610; in 2025, it was $954,927.
• Creation and redemption activity — The Trust sells or redeems Baskets in exchange for Bitcoin or cash, which can generate realized gains or losses. In 2024, realized gains from transfers to pay fees, redemptions, and expenses were $52,607,095.

Recent performance

For the three months ended June 30, 2026, the Trust reported a net realized and unrealized loss on Bitcoin of $8,716,608, driven by a Bitcoin price drop from $67,832 to $58,605 per Bitcoin. Net assets decreased 13.7% to $55,366,014 as of June 30, 2026, from $136,695,615 at the end of 2025. The Trust had total assets of $55.4 million and liabilities of $24,197 as of June 30, 2026. In 2024, the Trust had net income of $119.4 million, but in 2025 it had a net loss of $13.4 million.

Strategy

The Trust is a passive vehicle with no active management; its strategy is to hold Bitcoin and reflect its performance. It recently transitioned from the CMBI Bitcoin Index to the CME CF Bitcoin Reference Rate - New York Variant as of December 18, 2025. The Trust aims to list shares on Nasdaq, which it did on December 19, 2025, and continues to offer creations and redemptions in Baskets. The Sponsor pays routine expenses, with the Trust holding no cash and selling Bitcoin to cover expenses as needed.

Risks

• Bitcoin price volatility — Bitcoin prices have experienced extreme swings, including a 77% drawdown in 2021-2022 and a 2025 range between $76,737 and $125,663, which could cause the Shares to lose all or substantially all of their value.
• No investment company protections — The Trust is not registered under the 1940 Act, and the Sponsor is not an investment adviser, so investors do not benefit from the regulatory protections of those regimes.
• Custody and counterparty risks — Bitcoin is held by a single custodian, Coinbase Custody Trust Company, and cash by U.S. Bank; a failure or security breach could result in loss of assets.
• Limited liquidity and cash resources — The Trust does not hold cash and relies on selling Bitcoin to pay expenses, which could be challenging during periods of market illiquidity.

Outlook

Management does not provide explicit forward-looking guidance. The Trust expects its cash balance to be zero at each reporting period, as it sells Bitcoin to pay expenses. The Sponsor is committed to paying routine operating expenses, and no material changes to liquidity needs are anticipated. The Trust will continue to measure performance against the Index, and Bitcoin price movements will directly impact shareholder value.