The Bitwise Bitcoin ETF (the “Trust”) is an exchange-traded product that issues common shares of beneficial interest (“Shares”) that are anticipated to be listed on the NYSE Arca, Inc.
(the “Exchange”) under the ticker symbol “BITB.” The Trust’s investment objective is to seek to provide exposure to the value of bitcoin held by the Trust, less the expenses of the Trust’s operations and other liabilities.
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In seeking to achieve its investment objective, the Trust will hold bitcoin and establish its net asset value (“NAV”) by reference to the CME CF Bitcoin Reference Rate - New York Variant (“BRRNY”).
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The BRRNY is calculated by CF Benchmarks Ltd. (the “Benchmark Provider”) based on an aggregation of executed trade flow of major bitcoin trading platforms (“Constituent Platforms”).
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The Trust is sponsored and managed by Bitwise Investment Advisers, LLC (the “Sponsor”). On January 9, 2024, the BRRNY was $46,777.71.
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Bitwise Asset Management, Inc., the parent of the Sponsor, served as seed capital investor to the Trust (the “Seed Capital Investor”). The Seed Capital Investor agreed to purchase $200 in Shares on November 9, 2023, and on November 9, 2023 took delivery of 4 Shares at a per-Share price of $50.00 (the “Seed Shares”). The $200 the Trust received in consideration for the sale of the Seed Shares served as the basis of the audit described in the sections entitled “Report of Independent Registered Public Accounting Firm” and “Statement of Financial Condition.”
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Bitwise Investment Manager, LLC, an affiliate of the Sponsor, is expected to purchase the initial Baskets of Shares for $2,500,000, at a per-Share price of $25 for these 100,000 Shares (the “Seed Baskets”). Such proceeds are expected to be used by the Trust to purchase bitcoin at or prior to the listing of Shares on the Exchange. Bitwise Investment Manager, LLC will act as a statutory underwriter in connection with the initial purchase of the Seed Baskets.
