The Sponsor pays certain expenses on behalf of, and is reimbursed by, the Trust. For the years ended December 31, 2022, and 2021 the Trust reimbursed the Sponsor the expenses in the amount of $531,601 and $314,213, respectively. As of December 31, 2022 and 2021, $166,804 and $0 of expenses remain payable to the Sponsor, respectively, which are recorded as due to the Sponsor in the accompanying statements of assets and liabilities. The outstanding payable is comprised mostly of expenses related to insurance.

The Sponsor in its discretion, may elect to reduce, or waive, the Trust’s expenses. For years ended December 31, 2022, and 2021, the Sponsor irrevocably waived $0 and $109,000, respectively, of the Trust’s audit fees.

For the years ended December 31, 2022 and 2021, the Trust incurred Management Fees of $388,890 and $605,731, respectively, which are recorded in the accompanying statements of operations. As of December 31, 2022 and December 31, 2021, there were unpaid Management Fees of $19,213 and $53,985, respectively, which are recorded as management fee payable in the accompanying statements of assets and liabilities.

The Trust’s Management Fee is accrued daily in Bitcoins and will be payable, at the Sponsor’s sole discretion, in U.S. dollars or in Bitcoins at the Bitcoin market price in effect at the time of such payment. From inception through December 31, 2022, all Management Fees have been made in Bitcoin to the Sponsor.