Note 8 – Share Purchases and Redemptions

The Trust processes all creations and redemptions of Shares in transactions with Authorized Participants. When the Trust
issues or redeems its Shares, it does so only in Creation Baskets based on the quantity of bitcoin attributable to each Share of the
Trust (net of accrued but unpaid Sponsor fees and any accrued but unpaid expenses or liabilities). Creation and redemption
transactions are conducted in exchange for bitcoin in-kind or cash. Authorized Participants are the only persons that may place orders
 

to create and redeem Creation Baskets. Authorized Participants must be (1) registered broker-dealers or other securities market
participants, such as banks or other financial institutions, that are not required to register as broker-dealers to engage in securities
transactions as described below, and (2) participants in DTC such as banks, dealers and trust companies (“DTC Participants”). To
become an Authorized Participant, a person must enter into an Authorized Participant Agreement.

When purchasing Creation Baskets in-kind with bitcoin, Authorized Participants and/or their designees deliver bitcoin to the
Bitcoin Custodian. After confirming receipt of the bitcoin by the Bitcoin Custodian, the Transfer Agent is authorized by the Sponsor
to issue Creation Baskets of Shares to the creating Authorized Participant in satisfaction of the creation order.

When purchasing Creation Baskets for cash, Authorized Participants will deliver cash to the Cash Custodian. The Execution Agent will be responsible for acquiring the requisite amount of bitcoin on behalf of the Trust on an agency basis. After receipt of the bitcoin by the Bitcoin Custodian, the Transfer Agent will issue Creation Baskets of Shares to the creating Authorized Participant in satisfaction of the creation order.

When redeeming Creation Baskets in-kind for bitcoin, the Transfer Agent will redeem the Shares and the Bitcoin Custodian will
distribute the resulting bitcoin to the redeeming Authorized Participant in satisfaction of the redemption order.

When redeeming Creation Baskets for cash, the Execution Agent will be responsible for selling the requisite amount of bitcoin on behalf of the Trust on an agency basis. After receipt of the cash payment, the Transfer Agent will redeem the Shares and the Cash Custodian will distribute the resulting cash to the redeeming Authorized Participant in satisfaction of the redemption order.