Grayscale CoinDesk Crypto 5 ETF
For the period ended Dec 31, 2025. Filed Feb 5, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Dec 31, 2025 · Filed Feb 5, 2026
GDLC$34.05-0.6%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-09-30; filed 2025-11-05.
0001193125-25-266921
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-12-31; filed 2026-02-05.
0001193125-26-039358
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 73 previous paragraphs and 75 current paragraphs.
63 unchanged; 10 reworded; 2 added; 0 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 19 previous and 19 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (2)
Current report
Net realized and unrealized gain on investments in digital assets for the three months ended December 31, 2024 was $235,735, which includes a realized gain of $3,369 on the transfer of digital assets to pay the Manager’s Fee, a realized gain of $339 as a result of the quarterly rebalance of digital assets, and net change in unrealized appreciation/depreciation on investments in digital assets of $232,027. Net increase in net assets resulting from operations was $231,597 for the three months ended December 31, 2024, which consisted of the net realized and unrealized gain on investments in digital assets, less the Manager’s Fee of $4,138. Net assets increased to $738,200 at December 31, 2024, a 46% increase for the three-month period. The increase in net assets primarily resulted from the price appreciation of Fund Components during the period, partially offset by the withdrawal of approximately 37 Bitcoin, 227 Ether, 882 SOL, 106,374 XRP, and 764 AVAX to pay the foregoing Manager’s Fee.
Current report
Net realized and unrealized gain on investments in digital assets for the six months ended December 31, 2024 was $218,517, which includes a realized gain of $5,731 on the transfer of digital assets to pay the Manager’s Fee, a realized gain of $1,117 as a result of the quarterly rebalance of digital assets, and net change in unrealized appreciation/depreciation on investments in digital assets of $211,669. Net increase in net assets resulting from operations was $211,244 for the six months ended December 31, 2024, which consisted of the net realized and unrealized gain on investments in digital assets, less the Manager’s Fee of $7,273. Net assets increased to $738,200 at December 31, 2024, a 40% increase for the six-month period. The increase in net assets resulted from the price appreciation of Fund Components during the period, partially offset by the withdrawal of approximately 74 Bitcoin, 455 Ether, 1,760 SOL, 212,066 XRP, and 1,512 AVAX to pay the foregoing Manager’s Fee.
Reworded paragraphs (10)
Previous wording
Historically, the Fund has not met its investment objective, and prior to their uplisting to NYSE Arca on September 19, 2025, the Shares quoted on OTCQX did not reflect the value of the digital assets held by the Fund, less the Fund’s expenses and other liabilities, but instead have traded at both premiums and discounts to such value, which at times have been substantial, although the Manager has observed that the Fund has begun to meet its investment objective more closely following the uplisting of the Shares to NYSE Arca.
Current wording
Historically, the Fund has not met its investment objective and, prior to their uplisting to NYSE Arca on September 19, 2025, the Shares quoted on OTCQX did not reflect the value of the digital assets held by the Fund, less the Fund’s expenses and other liabilities, but instead traded at both premiums and discounts to such value, which at times were substantial, although the Manager has observed that the Fund has begun to meet its investment objective more closely following the uplisting of the Shares to NYSE Arca.
Previous wording
Effective June 5, 2025, the Fund Components consist of the digital assets that make up the CoinDesk 5 Index (the “CD5” or the “Index”). For the period from July 1, 2024 until June 5, 2025, and the years ended June 30, 2024 and 2023, the Fund determined which Fund Components to hold pursuant to the DLCS Methodology. Prior to the adoption of the DLCS Methodology, the Digital Asset Reference Rates used to value the Fund Components were Index Prices. In connection with the adoption of the CD5 Methodology, as of July 1, 2025, Fund will value the Fund Components for operational purposes by reference to Index Prices. See “Item 1. Business—Investment Objective” and “Item 1. Business—Valuation of Digital Assets and Determination of NAV” in our Annual Report for additional information.
Current wording
Effective June 5, 2025, the Fund Components consist of the digital assets that make up the CoinDesk 5 Index (the “CD5” or the “Index”). For the period from July 1, 2024 until June 5, 2025, and the years ended June 30, 2024 and 2023, the Fund determined which Fund Components to hold pursuant to the DLCS Methodology. Prior to the adoption of the DLCS Methodology, the Digital Asset Reference Rates used to value the Fund Components were Index Prices. In connection with the adoption of the CD5 Methodology, as of July 1, 2025, Fund values the Fund Components for operational purposes by reference to Index Prices. See “Item 1. Business—Investment Objective” and “Item 1. Business—Valuation of Digital Assets and Determination of NAV” in our Annual Report for additional information.
Previous wording
The cost basis of each Fund Component received in connection with a creation order is recorded by the Fund at the fair value of such Fund Component at 4:00 p.m., New York time, on the creation date for financial reporting purposes. The cost basis recorded by the Fund may differ from proceeds collected by the Authorized Participant from the sale of the corresponding Shares to investors.
Current wording
The cost basis of each Fund Component received by the Fund in connection with a creation order is recorded by the Fund at the fair value of such Fund Component at 4:00 p.m., New York time, on the creation date for financial reporting purposes. The cost basis recorded by the Fund may differ from proceeds collected by the Authorized Participant from the sale of the corresponding Shares to investors.
Previous wording
Financial Highlights for the Three Months Ended September 30, 2025 and 2024
Current wording
Financial Highlights for the Three and Six Months Ended December 31, 2025 and 2024
Previous wording
(All amounts in the following table and the subsequent paragraphs, except Share, per Share, each Fund Component and price of each Fund Component amounts, are in thousands)
Current wording
(All amounts in the following table and the subsequent paragraphs, except Share, each Fund Component and price of each Fund Component amounts, are in thousands)
Previous wording
Net realized and unrealized gain on investments in digital assets for the three months ended September 30, 2025 was $113,081, which includes a realized gain of $4,232 on the transfer of digital assets to pay the Manager’s Fee, a realized gain of $1,648 as a result of the quarterly rebalance of digital assets, a realized gain of $128,667 on the sale of digital assets to meet redemptions, and net change in unrealized appreciation on investments in digital assets of ($21,466). Net increase in net assets resulting from operations was $108,109 for the three months ended September 30, 2025, which consisted of the net realized and unrealized gain on investments in digital assets, less the Manager’s Fee of $4,972. Net assets decreased to $740,635 at September 30, 2025, a 5% decrease for the three-month period. The decrease in net assets resulted from the redemption of approximately 987 Bitcoin, 5,987 Ether, 2,932,484 XRP, 26,689 SOL, and 1,793,661 ADA, with a value of $151,128 from the Fund, and the withdrawal of approximately 33 Bitcoin, 197 Ether, 95,820 XRP, 861 SOL, and 58,866 ADA to pay the foregoing Manager’s Fee, partially offset by the price depreciation of Fund Components during the period and the contribution of approximately 43 Bitcoin, 262 Ether, 128,423 XRP, 1,168 SOL, and 78,550 ADA, with a value of $6,432 to the Fund in connection with Share creations during the period.
Current wording
Net realized and unrealized loss on investments in digital assets for the three months ended December 31, 2025 was ($182,167), which includes a realized gain of $656 on the transfer of digital assets to pay the Manager’s Fee, a realized gain of $733 as a result of the quarterly rebalance of digital assets, a realized gain of $100,362 on the sale of digital assets to meet redemptions, and net change in unrealized appreciation/depreciation on investments in digital assets of ($283,918). Net decrease in net assets resulting from operations was ($183,066) for the three months ended December 31, 2025, which consisted of the net realized and unrealized loss on investments in digital assets, plus the Manager’s Fee of $899. Net assets decreased to $538,856 at December 31, 2025, a 27% decrease for the three-month period. The decrease in net assets resulted from the price depreciation of Fund Components during the period, the redemption of approximately 946 Bitcoin, 5,734 Ether, 2,830,456 XRP, 25,821 SOL, and 1,727,064 ADA, with a value of $127,786 from the Fund, and the withdrawal of approximately 6 Bitcoin, 41 Ether, 20,281 XRP, 185 SOL, and 12,365 ADA to pay the foregoing Manager’s Fee, partially offset by the contribution of approximately 870 Bitcoin, 5,269 Ether, 2,614,755 XRP, 23,891 SOL, and 1,592,821 ADA, with a value of $109,073 to the Fund in connection with Share creations during the period.
Previous wording
Net realized and unrealized loss on investments in digital assets for the three months ended September 30, 2024 was ($17,218), which includes a realized gain of $2,362 on the transfer of digital assets to pay the Manager’s Fee, a realized gain of $778 as a result of the quarterly rebalance of digital assets, and net change in unrealized appreciation on investments in digital assets of ($20,358). Net decrease in net assets resulting from operations was ($20,353) for the three months ended September 30, 2024, which consisted of the net realized and unrealized loss on investments in digital assets, plus the Manager’s Fee of $3,135. Net assets decreased to $506,603 at September 30, 2024, a 4% decrease for the three-month period. The decrease in net assets resulted from the price depreciation of Fund Components during the period and the withdrawal of approximately 37 Bitcoin, 228 Ether, 105,692 XRP, 878 SOL, and 748 AVAX to pay the foregoing Manager’s Fee.
Current wording
Net realized and unrealized loss on investments in digital assets for the six months ended December 31, 2025 was ($69,086), which includes a realized gain of $4,888 on the transfer of digital assets to pay the Manager’s Fee, a realized gain of $2,381 as a result of the quarterly rebalance of digital assets, a realized gain of $229,029 on the sale of digital assets to meet redemptions, and net change in unrealized appreciation/depreciation on investments in digital assets of ($305,384). Net decrease in net assets resulting from operations was ($74,957) for the six months ended December 31, 2025, which consisted of the net realized and unrealized loss on investments in digital assets, plus the Manager’s Fee of $5,871. Net assets decreased to $538,856 at December 31, 2025, a 31% decrease for the six-month period. The decrease in net assets resulted from the price depreciation of Fund Components during the period, the redemption of approximately 1,933 Bitcoin, 11,721 Ether, 5,762,940 XRP, 52,510 SOL, and 3,520,725 ADA, with a value of $278,915 from the Fund, and the withdrawal of approximately 39 Bitcoin, 238 Ether, 116,101 XRP, 1,046 SOL, and 71,230 ADA to pay the foregoing Manager’s Fee, partially offset by the contribution of approximately 913 Bitcoin, 5,531 Ether, 2,743,178 XRP, 25,059 SOL, and 1,671,371 ADA, with a value of $115,506 to the Fund in connection with Share creations during the period.
Previous wording
As of September 30, 2025, the Fund had a net closing balance with a value of $740,581,613, based on the Index Prices in effect under the CD5 Methodology (non-GAAP methodology). As of September 30, 2025, the Fund had a total market value of $740,634,701, based on the principal market prices of the Fund Components.
Current wording
As of December 31, 2025, the Fund had a net closing balance with a value of $538,817,540, based on the Index Prices in effect under the CD5 Methodology (non-GAAP methodology). As of December 31, 2025, the Fund had a total market value of $538,856,356, based on the principal market prices of the Fund Components.
Previous wording
As of September 30, 2024, the Fund had a net closing balance with a value of $506,268,281, based on the Index Prices in effect under the CD5 Methodology (non-GAAP methodology). As of September 30, 2024, the Fund had a total market value of $506,602,839, based on the principal market prices of the Fund Components.
Current wording
As of December 31, 2024, the Fund had a net closing balance with a value of $740,237,525, based on the Index Prices in effect under the CD5 Methodology (non-GAAP methodology). As of December 31, 2024, the Fund had a total market value of $738,200,454, based on the principal market prices of the Fund Components.
Previous wording
The following table illustrates the movements in the Digital Asset Market price of SOL, as reported on the Fund’s principal market for SOL, from the addition of the token to the Fund’s portfolio on October 1, 2021 to September 30, 2025:
Current wording
The following table illustrates the movements in the Digital Asset Market price of SOL, as reported on the Fund’s principal market for SOL, from October 1, 2021 to December 31, 2025: