Grayscale Bitcoin Trust ETF Reports $16.38 Million Gain for 2024, Sees 27% Decrease in Net Assets

Grayscale Bitcoin Trust ETF (formerly Grayscale Bitcoin Trust (BTC)) reported a net realized and unrealized gain on its Bitcoin investments of $16.38 million for the year ended December 31, 2024. This figure includes a realized gain of $232,398 from Bitcoin transferred to pay the Sponsor’s Fee, a realized gain of $17.83 million from Bitcoin sold to meet redemptions, and a realized gain of $1.41 million from Bitcoin sold for the initial distribution to Grayscale Bitcoin Mini Trust ETF. A net change in unrealized appreciation on Bitcoin investments of ($3.09 million) also contributed to the overall gain. The net increase in net assets resulting from operations was $16.09 million, reflecting the net gain less the Sponsor’s Fee of $290,476. Net assets decreased by 27% to $19.18 million during the year, primarily due to Bitcoin withdrawals for the Sponsor’s Fee, redemptions, and the initial distribution, partially offset by Bitcoin price appreciation and new Bitcoin contributions from share creations.

Significant changes occurred compared to the previous fiscal year. In 2023, the Trust reported a net realized and unrealized gain of $16.25 million, driven by Bitcoin price appreciation. The net increase in net assets was $15.89 million, resulting in a 152% increase in net assets to $26.35 million. In 2022, the Trust experienced a net realized and unrealized loss of ($18.75 million) due to Bitcoin price depreciation, leading to a 65% decrease in net assets to $10.46 million. The company's name changed from Grayscale Bitcoin Trust (BTC) to Grayscale Bitcoin Trust ETF on November 4, 2024, and its shares began trading on NYSE Arca on January 11, 2024. On January 1, 2025, Grayscale Investments, LLC underwent a reorganization, resulting in Grayscale Investments Sponsors, LLC becoming the sole sponsor of the Trust effective May 3, 2025.

Operational developments included a significant decrease in the number of outstanding shares from 692,370,100 as of December 31, 2023 to 258,950,100 as of December 31, 2024. This reduction is attributed to the pro rata distribution of shares in Grayscale Bitcoin Mini Trust ETF and redemptions. The Trust's Bitcoin holdings also decreased significantly during 2024, from 619,526 to 205,399, primarily due to redemptions and the initial distribution. The Trust's shares traded at a discount of 0.10% to its NAV per share as of December 31, 2024, a significant improvement from the substantial premiums and discounts observed prior to the uplisting to NYSE Arca.

The Trust's activities are limited to issuing and redeeming shares in Baskets of 10,000 shares in exchange for Bitcoin, and transferring Bitcoin to cover fees and expenses. The Trust does not actively manage its investments or seek to generate returns beyond tracking the price of Bitcoin. Authorized Participants, primarily registered broker-dealers, facilitate these transactions. Coinbase Custody Trust Company, LLC serves as the custodian, while Coinbase, Inc. acts as the prime broker. The Trust's Bitcoin are held primarily in cold storage for security. The Sponsor's fee is 1.5% of the NAV Fee Basis Amount, effective January 11, 2024.

The filing includes forward-looking statements regarding the Trust's ability to achieve its investment objective and the potential impact of regulatory changes on its operations and the value of its shares. The Trust acknowledges significant risks associated with the volatility of Bitcoin, the regulatory landscape of digital assets, and the reliance on third-party service providers. A legal proceeding filed against the Sponsor in Connecticut Superior Court is also mentioned, although the Sponsor believes it will not materially affect the Trust's operations.