Company: DEFI
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001999371-25-006264
Chunk: 21

Company: Tidal Commodities Trust I
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 8
Chunk 21
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may be used to pay for goods and services, stored for future use, or converted to a fiat currency. As of the date of this update,
the adoption of bitcoin for these purposes has been limited. The value of bitcoin is not backed by any government, corporation,
or other identified body.

The
value of bitcoin is determined in part by the supply of (which is limited), and demand for, bitcoin in the markets for exchange
that have been organized to facilitate the trading of bitcoin. By design, the supply of bitcoin is limited 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