Tidal Commodities Trust I, established on February 10, 2023, has reported significant financial performance for the year ending December 31, 2024, following its transition to the Hashdex Bitcoin ETF. The Fund's total net assets surged to $14.8 million, a 585% increase from $2.5 million in the previous year. This growth was driven by a substantial rise in shares outstanding, which increased from 50,000 to 140,000, and a notable appreciation in the price of Bitcoin, which rose from $42,265.19 to $93,208.76 during the same period. The net asset value (NAV) per share also saw a significant increase, climbing from $50.74 to $106.00.
The Fund's operational changes included a merger with the Hashdex Bitcoin Futures ETF, which was completed on January 3, 2024. This merger allowed the Fund to adopt a new investment strategy focused on spot Bitcoin holdings, with a policy to invest at least 95% of its assets in physical Bitcoin. The Fund's investment objective now aims to reflect the daily changes in the Nasdaq Bitcoin Reference Price - Settlement (NQBTCS), which is designed to track Bitcoin's price performance. The transition to a spot Bitcoin ETF is expected to enhance the Fund's appeal to investors seeking direct exposure to Bitcoin.
In terms of operational metrics, the Fund reported a net income of $10.6 million for the year, compared to $1.4 million in 2023. The average daily total net assets also increased significantly, from $1.9 million to $13.1 million. The Fund's management fees amounted to $119,739, reflecting the increased scale of operations. Additionally, the Fund's total expense ratio was reported at 1.03%, a notable decrease from 15.34% in the previous year, primarily due to the waiving of expenses by the prior sponsor.
The Fund's strategic developments included the filing of a registration statement for another exchange-traded fund, the Nexo 7RCC Spot Bitcoin and Carbon Credit Futures ETF, indicating plans for future expansion. The Fund's operational structure is supported by Tidal Investments LLC, which serves as the sponsor and is registered as a commodity pool operator with the Commodity Futures Trading Commission (CFTC). The Fund's custodial arrangements are managed by BitGo Trust Company for Bitcoin holdings and U.S. Bank, N.A. for cash and cash equivalents.
Looking ahead, the Fund's management remains optimistic about its growth trajectory, particularly following the successful transition to a spot Bitcoin ETF. The management team anticipates that the increased investor interest in Bitcoin, coupled with the Fund's strategic positioning, will continue to drive asset growth and enhance shareholder value. The Fund's ability to adapt to market conditions and regulatory changes will be crucial in maintaining its competitive edge in the evolving cryptocurrency landscape.
About Tidal Commodities Trust I
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