Company: DEFI
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001999371-25-017892
Chunk: 28

Company: Tidal Commodities Trust I
Filing Date: 2025-11-14
Form: 10-Q
Item: Item 8
Chunk 28
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 only. The Fund will use Bitcoin Futures Contracts for the primary purpose
of using such Bitcoin Futures Contracts to acquire physical bitcoin through Exchange for Physical (“EFP”) transactions
and to offset cash and receivables for better tracking the Benchmark. The net realized and unrealized loss on futures contracts
was related to the decrease in the Fund’s net assets and the Bitcoin price depreciation during the three months ended September
30, 2025.

F-24 

In the three months ended September 30, 2025 compared to the
three months ended September 30, 2024 the amount of interest income earned as a percentage of daily total net assets was significantly
lower. The decrease in interest and other income over these periods was primarily due to a decrease in the investments within
short-term Treasury Securities, demand deposits, money market funds and/or investments in commercial paper; in the Fund’s
current policy, only up to 5% of the Fund’s assets may be invested in CME-traded bitcoin futures contracts and in cash and
cash equivalents. The Fund seeks to earn interest and other income in investments that may include, but are not limited to, short-term
Treasury Securities, demand deposits, money market funds and investments in commercial paper. These interest rate levels may be
lower or higher than the projected interest rates stated in the prospectuses and thus will impact your breakeven point.

The decrease in management fee
paid to the Sponsor for the three months ended September 30, 2025, compared to the three months ended September 30, 2024, despite
higher Fund average net assets overall, is a result of the Sponsor lowering the management fee from 0.90% to 0.25% per annum of
the daily NAV of the Fund effective February 10, 2025. Other than the management fee to the Sponsor, the Fund incurred total gross
fees and other expenses excluding management fees and brokerage commissions, which were significantly lower than during the three
months ended September 30, 2024, where the Fund incurred brokerage commissions. Brokerage commissions are recognized on a per-trade
basis to each futures contract’s or bitcoin share’s cost basis. Trading fees for the Fund are recorded in the statement
of operations as broker expenses. The actual amount of trading fees to be incurred will vary based upon the trading frequency of
the Fund.

For the three months ended September
30, 2024, most of the expenses incurred by the Predecessor Fund were associated