M&A - Bitwise Bitcoin ETF

Form Type: 10-K

Filing Date: 2025-03-18

Corporate Action: Acquisition

Type: Update

Accession Number: 000095017025040572

Filing Summary: Bitwise Bitcoin ETF is a Delaware statutory trust that commenced operations on January 10, 2024, and trades under the ticker symbol BITB on NYSE Arca, Inc. The Trust's investment objective is to provide shareholders with exposure to the value of bitcoin held by the Trust, reflecting the actual bitcoin market minus operational expenses. It holds bitcoin and its net asset value (NAV) is established by the CME CF Bitcoin Reference Rate, which aggregates trade flows from major bitcoin trading platforms. The Trust executes share creations and redemptions in blocks of 10,000 Shares (Baskets), involving Bitcoin Trading Counterparties for acquisitions. A significant event during the fiscal year was the acquisition agreement between the Bitwise Bitcoin ETF and the Osprey Bitcoin Trust, aimed at purchasing all bitcoin owned by the Osprey Trust. However, this agreement was terminated on February 10, 2025, following a settlement amount agreed upon in a separate accord. The Trust retains its focus on passive management without leverage, and secures its bitcoin through Coinbase Custody Trust Company, LLC. The risks include the volatility of bitcoin, regulatory changes, and reliance on service providers for transactions and custody. As of the end of the fiscal year, the Trust's NAV was reported at $93,730.35 for bitcoin, and it aims to distribute any incidental rights or assets acquired through bitcoin ownership back to its Shareholders evenly.

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