v3.26.1
Note 10 - Investment Valuation
 6 Months Ended
Jun. 30, 2026
Notes to Financial Statements  
Fair Value Disclosures [Text Block]

10 -

Investment Valuation

 

U.S. GAAP defines fair value as the price the Trust would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. The Trust’s policy is to value its investment at fair value.

 

Various inputs are used in determining the fair value of assets and liabilities. Inputs may be based on independent market data (“observable inputs”) or they may be internally developed (“unobservable inputs”). These inputs are categorized into a disclosure hierarchy consisting of three broad levels for financial reporting purposes. The level of a value determined for an asset or liability within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement in its entirety. The three levels of the fair value hierarchy are as follows:

 

 

Level 1  − 

Unadjusted quoted prices in active markets for identical assets or liabilities;

 

 

Level 2  − 

Inputs other than quoted prices included within Level 1 that are observable for the asset or liability either directly or indirectly, including quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not considered to be active, inputs other than quoted prices that are observable for the asset or liability, and inputs that are derived principally from or corroborated by observable market data by correlation or other means; and

 

 

Level 3  − 

Unobservable inputs that are unobservable for the asset or liability, including the Trust’s assumptions used in determining the fair value of investments.

 

At June 30, 2026, the value of the bitcoin held by the Trust is categorized as Level 1.

 

Fair value pricing could result in a difference between the prices used to calculate the Trust’s net asset value and the prices used by the Trust’s underlying index, which in turn could result in a difference between the Trust’s performance and the performance of the Trust’s underlying index.

 

Exchange-traded options written on IBIT are valued by an independent pricing service using a mathematical model, which incorporates a number of market data factors, such as the trades and prices of the underlying instruments.

 

IBIT is valued at that day’s official closing price, as applicable, on the exchange where the stock is primarily traded.

 

The following table summarizes the value of each of the Trust’s investments by the fair value hierarchy levels as of June 30, 2026:

 

   

Level 1

    

Level 2

    

Level 3

    

Total

  

June 30, 2026

                                

Bitcoin

   $ 28,595,505     $ —     $ —     $ 28,595,505  

BlackRock Cash Funds: Treasury, SL Agency Shares

     20,094       —       —       20,094  

iShares® Bitcoin Trust ETF

     14,231,678       —       —       14,231,678  

Options Written

     (165,163 )     —       —       (165,163 )