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 Mach 31, 2025 and its results of operations for the three months ended March 31, 2025 and the period January 10, 2024 to March 31, 2024. It should be read in conjunction with the audited 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 June 30, 2025 and its results of operations for the three and six months ended June 30, 2025, the three months ended June 30, 2024, and the period January 11, 2024 (commencement of operations) to June 30, 2024. It should be read in conjunction with the unaudited financial statements and related notes thereto contained in this Quarterly Report.

Previous wording

The Trust’s investment in bitcoin is recorded on the financial statements at fair value in accordance with FASB ASC Topic 820, “Fair Value Measurements and Disclosures” (“ASC 820”). Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A fair value measurement assumes that the transaction to sell the asset or transfer the liability takes place either in the principal market for the asset or liability or, in the absence of a principal market, in the most advantageous market for the asset for liability. ASC 820 defines “principal market” as the market with the greatest volume and level of activity for the asset or liability. The determination of the principal market (and, as a result, the market participants in the principal market) is made from the perspective of the reporting entity. ASC 820 defines “most advantageous market” as the market that maximizes the amount that would be received to sell the asset or minimizes the amount that would be paid to transfer the liability, after taking into account transaction costs and transportation costs. Based on the foregoing, the Trust has determined its principal market for GAAP reporting for its bitcoin investment to be the bitcoin platform operated by Coinbase, Inc. and utilizes an exchange-traded price from that principal market as of 11:59 p.m. Eastern Standard Time on the financial statement measurement date. The Sponsor will perform other procedures (consistent with GAAP) to value an investment in bitcoin when a market quote is not available.

Current wording

The Trust’s investment in bitcoin is recorded on the financial statements at fair value in accordance with FASB ASC Topic 820, “Fair Value Measurements and Disclosures” (“ASC 820”). Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A fair value measurement assumes that the transaction to sell the asset or transfer the liability takes place either in the principal market for the asset or liability or, in the absence of a principal market, in the most advantageous market for the asset for liability. ASC 820 defines “principal market” as the market with the greatest volume and level of activity for the asset or liability. The determination of the principal market (and, as a result, the market participants in the principal market) is made from the perspective of the reporting entity and the reporting entity must have access to the principal (or most advantageous) market at the measurement date. ASC 820 defines “most advantageous market” as the market that maximizes the amount that would be received to sell the asset or minimizes the amount that would be paid to transfer the liability, after taking into account transaction costs and transportation costs. Based on the foregoing, the Trust has determined its principal market for GAAP reporting for its bitcoin investment to be the bitcoin platform operated by Coinbase, Inc. and utilizes an exchange-traded price from that principal market as of 11:59 p.m. Eastern Standard Time on the financial statement measurement date. The Sponsor will perform other procedures (consistent with GAAP) to value an investment in bitcoin when a market quote is not available.

Previous wording

Selected Financial Highlights for the Three months ended March 31, 2025 and the period January 10, 2024 to March 31, 2024

Current wording

Selected Financial Highlights for the three and six months ended June 30, 2025, three months ended June 30, 2024, and the period January 11, 2024 (commencement of operations) to June 30, 2024

Previous wording

Net decrease in net assets resulting from operations was $(40,327,418) for the three months ended March 31, 2025, which consisted of net investment loss of $(204,357), net realized gain of $50,843,595 and $(90,966,656) in net decrease in unrealized appreciation on investment in bitcoin. Net increase in net assets resulting from operations was $18,463,897 for the period January 11, 2024*(commencement of operations)* to March 31, 2024, which consisted of net realized gain of $1,001,850 and increase in net unrealized appreciation on investment in bitcoin of $17,462,047. Net assets decreased to $152,575,557 at March 31, 2025 and total return (based on NAV per Share) for the three months ended March 31, 2025 was (11.21)%. For the three months ended March 31, 2025, the $(207,941,675) net decrease in net assets resulted from the aforementioned net decrease in net assets resulting from operations and by $(167,614,257) net decrease resulting from capital share transactions. For the period January 11, 2024*(commencement of operations)* to March 31, 2024, the $80,934,159 net increase in net assets resulted from the aforementioned net increase in net assets resulting from operations and by $62,470,262 of net increase resulting from capital share transactions.

Current wording

Net realized and unrealized loss on investment in bitcoin for the six months ended June 30, 2025 was $(2,868,511) which includes a realized gain of $117,436 on the transfer of bitcoin to pay the Sponsor’s Fee, a realized gain of $56,238,619 on the sale of bitcoin to meet redemptions and a net change in unrealized appreciation on investment in bitcoin of $(59,224,566). Net realized and unrealized loss on investment in bitcoin for the six months ended June 30, 2025 was driven by bitcoin price appreciation from $93,358.58 per bitcoin as of December 31, 2024 to $107,221.44 per bitcoin as of June 30, 2025. Net decrease in net assets resulting from operations was $(3,168,786) for the six-month period ended June 30, 2025, which consisted of net investment loss of $(300,275), net realized gain of $56,356,055 and $(59,224,566) net decrease in unrealized appreciation on investment in bitcoin. Net assets decreased to $165,872,607 at June 30, 2025 and total return (based on NAV per Share) for the six-month period ended June 30, 2025 was 14.71%. For the six months ended June 30, 2025, the $(194,644,625) net decrease in net assets resulted from the aforementioned net decrease in net assets resulting from operations and by a $(191,475,839) net decrease resulting from capital share transactions.

Previous wording

Net realized and unrealized loss on investment in bitcoin for the three months ended March 31, 2025 was $(40,123,061) which includes a net decrease in unrealized appreciation on investment in bitcoin of $(90,966,656). Net realized and unrealized loss on investment in bitcoin for the three-month period ended March 31, 2025 was driven by bitcoin price depreciation from $93,358.58 per bitcoin as of December 31, 2024 to $82,944.98 per bitcoin as of March 31, 2025. Net realized and unrealized gain on investment in bitcoin for the period January 11, 2024 (commencement of operations) to March 31, 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 $70,596.99 per bitcoin as of March 31, 2024.

Current wording

Net realized and unrealized gain on investment in bitcoin for the six-month period ended June 30, 2024 was $8,415,937 which includes realized gain of $1,170,266 on the sale of bitcoin to meet redemptions and a net change in unrealized appreciation on investment in bitcoin of $7,245,671. Net realized and unrealized gain on investment in bitcoin for the six-month period ending June 30, 2025 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 increase in net assets resulting from operations was $8,415,937 for the six-month period ended June 30, 2024, which consisted of net realized gain of $1,170,266 and $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 ended June 30, 2024 was 34.62%. For the six-month period ended June 30, 2024, the $81,726,494 net increase in net assets resulted from the aforementioned net increase in net assets resulting from operations and by a $73,310,557 net increase resulting from capital share transactions.

Previous wording

As of March 31, 2025, the Trust had a net closing balance of 1,840.032 bitcoins with a value of $152,690,913 based on the Reference Rate Price of $82,982.75, which is calculated pursuant to non-GAAP methodology. For the three-month period ended March 31, 2025, the Trust determined that Coinbase was its principal market. As of March 31, 2025, the total market value of the Trust’s bitcoin was $152,621,409, based on the price of bitcoin in the principal market of $82,944.98.

Current wording

As of June 30, 2025, the Trust had a net closing balance of 1,547.3227 bitcoins with a value of $166,317,849 based on the Reference Rate Price of $107,487.50, which is calculated pursuant to non-GAAP methodology. For the three-month period ended June 30, 2025, the Trust determined that Coinbase was its principal market. As of June 30, 2025, the total market value of the Trust’s bitcoin was $165,906,168, based on the price of bitcoin in the principal market of $107,221.44.

Previous wording

The following chart illustrates the movement in the Market Price per Share and the Trust’s NAV per Share for the three months ended March 31, 2025.

Current wording

The following chart(s) illustrates the movement in the Market Price per Share and the Trust’s NAV per Share for the three and six months ended June 30, 2025.

Previous wording

The table below illustrates the high and low price of bitcoin as represented by the Reference Rate and the principal market during the three months ended March 31, 2025.

Current wording

The table below illustrates the high and low price of bitcoin as represented by the Reference Rate and the principal market during the three and six months ended June 30, 2025.