WisdomTree Bitcoin Fund

Previous wording

The following discussion and analysis was prepared to supplement information contained in the accompanying financial statements and is intended to explain certain items regarding the Trust’s financial condition as of June 30, 2024 and its results of operations for the three and six months ended June 30, 2024. It should be read in conjunction with the unaudited financial statements and related notes thereto contained in this Quarterly Report.

Current wording

The following discussion and analysis was prepared to supplement information contained in the accompanying financial statements and is intended to explain certain items regarding the Trust’s financial condition as of September 30, 2024 and its results of operations for the three and nine months ended September 30, 2024. It should be read in conjunction with the unaudited financial statements and related notes thereto contained in this Quarterly Report.

Previous wording

Selected Financial Highlights for the Three- and Six-Month period ended June 30, 2024

Current wording

Selected Financial Highlights for the Three- and Nine-Month period ended September 30, 2024

Previous wording

Net realized and unrealized gain on investment in bitcoin for the six months ended June 30, 2024 was $8,415,937 (-$10,047,960 for the three months ended June 30, 2024) which, for the six months ended June 30, 2024, includes a net change in unrealized appreciation on investment in bitcoin of $7,245,671 (-$10,216,376 for the three months ended June 30, 2024). Decrease in net realized and unrealized gain on investment in bitcoin for the three-month period ended June 30, 2024 was driven by bitcoin price depreciation from $70,596.99 per bitcoin as of March 31, 2024 to $63,369.30 per bitcoin as of June 30, 2024. Increase in net realized and unrealized gain on investment in bitcoin for the six-month period ended June 30, 2024 was driven by bitcoin price appreciation from $46,411.68 per bitcoin as of January 10, 2024 (the end of day price prior to the commencement of operations) to $63,369.30 per bitcoin as of June 30, 2024. Net decrease in net assets resulting from operations was -$10,047,960 for the three months ended June 30, 2024 which consisted of net realized gains of $168,416 which was offset by a -$10,216,376 net decrease in unrealized appreciation on investment in bitcoin. Net increase in net assets resulting from operations was $8,415,937 for the six months ended June 30, 2024 which consisted of net realized gains of $1,170,266 and a $7,245,671 net increase in unrealized appreciation on investment in bitcoin. Net assets increased to $81,776,494 at June 30, 2024 and total return (based on NAV per Share) for the six-month period was 34.62% (-10.24% for the three months ended June 30, 2024). For the three months ended June 30, 2024, the $792,335 net increase in net assets resulted from the aforementioned bitcoin price depreciation which was offset by $10,840,295 of net increase resulting from capital share transactions. For the six months ended June 30, 2024, the $81,726,494 net increase in net assets resulted from the aforementioned bitcoin price appreciation and by $73,310,557 of net increase resulting from capital share transactions.

Current wording

Net realized and unrealized gain on investment in bitcoin for the nine months ended September 30, 2024 was $18,529,116 ($10,113,179 for the three months ended September 30, 2024) which, for the nine months ended September 30, 2024, includes a net change in unrealized appreciation on investment in bitcoin of $17,358,502 ($10,112,831 for the three months ended September 30, 2024). Increase in net realized and unrealized gain on investment in bitcoin for the three-month period ended September 30, 2024 was driven by bitcoin price appreciation from $63,369.30 per bitcoin as of June 30, 2024 to $63,677.63 per bitcoin as of September 30, 2024. Increase in net realized and unrealized gain on investment in bitcoin for the nine-month period ended September 30, 2024 was driven by bitcoin price appreciation from $46,411.68 per bitcoin as of January 10, 2024 (the end of day price prior to the commencement of operations) to $63,677.63 per bitcoin as of September 30, 2024. Net increase in net assets resulting from operations was $10,019,323 for the three months ended September 30, 2024 which consisted of net investment loss of -$93,856, net realized gains of $348 and $10,112,831 in unrealized appreciation on investment in bitcoin. Net increase in net assets resulting from operations was $18,435,260 for the nine months ended September 30, 2024 which consisted of net investment loss of -$93,856, net realized gains of $1,170,614 and a $17,358,502 net increase in unrealized appreciation on investment in bitcoin. Net assets increased to $235,911,375 at September 30, 2024 and total return (based on NAV per Share) for the nine-month period was 35.20% (0.43% for the three months ended September 30, 2024). For the three months ended September 30, 2024, the $154,134,881 net increase in net assets resulted from the aforementioned bitcoin price appreciation, net investment loss, net realized gain and by $144,115,558 of net increase resulting from capital share transactions. For the nine months ended September 30, 2024, the $235,861,375 net increase in net assets resulted from the aforementioned bitcoin price appreciation, net investment loss, net realized gain and by $217,426,115 of net increase resulting from capital share transactions.

Previous wording

As of June 28, 2024 (the last business day), the Trust had a net closing balance of 1,290.474994 bitcoins with a value of $77,854,572 based on the Reference Rate Price of $60,330.17, which is calculated pursuant to non-GAAP methodology. As of June 30, 2024, the total market value of the Trust’s bitcoin was $81,776,494, based on the price of a bitcoin in the principal market of $63,369.30. For the three- and six-month period ended June 30, 2024, the Trust determined that Coinbase was its principal market.

Current wording

As of September 30, 2024 (the last business day), the Trust had a net closing balance of 3,705.4872 bitcoins with a value of $234,967,352 based on the Reference Rate Price of $63,410.65, which is calculated pursuant to non-GAAP methodology. As of September 30, 2024, the total market value of the Trust’s bitcoin was $235,956,643, based on the price of a bitcoin in the principal market of $63,677.63. For the three- and nine-month period ended September 30, 2024, the Trust determined that Coinbase was its principal market.

Previous wording

The Trust will pay the Sponsor a unified fee of 0.25% per annum of the Trust’s average daily NAV (the “Sponsor Fee”) as compensation for services performed under the Trust Agreement. The Trust’s only ordinary recurring expense is the Sponsor Fee. For the 6-month period commencing on January 11, 2024, the day the Trust’s Shares are initially listed onthe Exchange, the Sponsor waived the entire Sponsor Fee on the first $1.0 billion of Trust assets. Subsequent to June 30, 2024, after the close of business on July 11, 2024, the waiver expired and was not renewed.

Current wording

The Trust will pay the Sponsor a unified fee of 0.25% per annum of the Trust’s average daily NAV (the “Sponsor Fee”) as compensation for services performed under the Trust Agreement. The Trust’s only ordinary recurring expense is expected to be the Sponsor Fee. For the period commencing on January 11, 2024 (the day the Trust’s Shares were initially listed on the Exchange) through July 11, 2024, the Sponsor waived the entire Sponsor Fee on the first $1.0 billion of Trust assets. After the close of business on July 11, 2024, the waiver expired and was not renewed.

Previous wording

Except for periods during which all or a portion of the Sponsor Fee is being waived, the Sponsor Fee will accrue and be payable in U.S. dollars. The Trust’s only ordinary recurring expense is expected to be the Sponsor Fee. In exchange for the Sponsor’s Fee, the Sponsor has agreed to assume the marketing and the following administrative expenses of the Trust: the fees of the Trustee, the Trust Administrator, Fund Accountant, Transfer Agent, the Marketing Agent, the Bitcoin Custodian, the Cash Custodians’ Fee, Exchange listing fees, SEC registration fees, printing and mailing costs, tax reporting fees, audit fees, license fees and ordinary legal fees and expenses. The Sponsor will also pay the costs of the Trust’s organization and the initial sale of the Shares. There is no cap on the amount of these Sponsor paid expenses.

Current wording

Except for periods during which all or a portion of the Sponsor Fee was waived, the Sponsor Fee will accrue and be payable in U.S. dollars. In exchange for the Sponsor’s Fee, the Sponsor has agreed to assume the marketing and the following administrative expenses of the Trust: the fees of the Trustee, the Trust Administrator, Fund Accountant, Transfer Agent, the Marketing Agent, the Bitcoin Custodian, the Cash Custodians’ Fee, Exchange listing fees, SEC registration fees, printing and mailing costs, tax reporting fees, audit fees, license fees and ordinary legal fees and expenses. The Sponsor will also pay the costs of the Trust’s organization and the initial sale of the Shares. There is no cap on the amount of these Sponsor paid expenses.