Company: DEFI
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001999371-25-011381
Chunk: 22

Company: Tidal Commodities Trust I
Filing Date: 2025-08-14
Form: 10-Q
Item: Item 8
Chunk 22
---
 to $21 million bitcoins.
As of the date of this update, there are approximately $19 million bitcoins in circulation.

F-22 

Bitcoin
is maintained on the Bitcoin Network. No single entity owns or operates the Bitcoin Network. The Bitcoin Network is accessed through
software and governs bitcoin’s creation and movement. The source code for the Bitcoin Network, often referred to as the
Bitcoin Protocol, is open-source, and anyone can contribute to its development.

Price
movements for bitcoin are influenced by, among other things, the environment, natural or man-made disasters, governmental oversight
and regulation, demographics, economic conditions, infrastructure limitations, existing and future technological developments,
and a variety of other factors now known and unknown, any and all of which can have an impact on the supply, demand, and price
fluctuations in the bitcoin markets. More generally, cryptocurrency prices may be influenced by economic and monetary events such
as changes in interest rates, changes in balances of payments and trade, U.S. and international inflation rates, currency valuations
and devaluations, U.S. and international economic events, and changes in the philosophies and emotions of market purchasers. Because
the Predecessor Fund invested in futures contracts in a single cryptocurrency, it was not a diversified investment vehicle, and
therefore may have been subject to greater volatility than a diversified portfolio of stocks or bonds or a more diversified commodity
or cryptocurrency pool. Likewise, because the Fund invests in spot bitcoin and futures contracts in a single cryptocurrency, it
is not a diversified investment vehicle, and therefore may be subject to greater volatility than a diversified portfolio of stocks
or bonds or a more diversified commodity or cryptocurrency pool.

Market
Risk

Trading
in instruments such as futures contracts will involve the Fund entering into contractual commitments to purchase or sell specific
amounts of cryptocurrencies at a specified date in the future. The gross or face amount of the contracts is expected to significantly
exceed the future cash requirements of the Fund as the Fund intends to close out any open positions prior to the contractual expiration
date. As a result, the Fund’s market risk is the risk of loss arising from the decline in value of the contracts, not from
the need to make delivery under the contracts. The Fund considers the “fair value” of derivative instruments to be
the unrealized gain or loss on the contracts. The market risk associated with the commitment by the Fund to purchase a specific
cryptocurrency will be limited to the aggregate face amount of the contacts