Company: BTC
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0000950170-25-029405
Chunk: 57

Company: Grayscale Bitcoin Mini Trust ETF
Filing Date: 2025-02-28
Form: 10-K
Item: Item 1
Chunk 57
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 Markets. The Sponsor believes that investors will be able to more effectively implement strategic and tactical asset allocation strategies that use Bitcoin by using the Shares instead of directly purchasing and holding Bitcoin, and for many investors, transaction costs related to the Shares will be lower than those associated with the direct purchase, storage and safekeeping of Bitcoin. 

•Market-Traded and Transparent. The Shares are listed on NYSE Arca. The Sponsor believes the quotation of the Shares on NYSE Arca provides investors with an efficient means to implement various investment strategies. The Trust will not hold or employ any derivative securities. Furthermore, the value of the Trust’s assets will be reported each day on www.etfs.grayscale.com/btc.

•Minimal Credit Risk. The Shares represent an interest in actual Bitcoin owned by the Trust. The Trust’s Bitcoin are not subject to borrowing arrangements with third parties and are subject to counterparty and minimal credit risk with respect to the Custodian. This contrasts with the other financial products such as CoinShares exchange-traded notes, TeraExchange swaps and Bitcoin futures and options traded on the Chicago Mercantile Exchange (“CME”) and the Intercontinental Exchange (“ICE”) through which investors gain exposure to digital assets through the use of derivatives that are subject to counterparty and credit risks. 

•Safekeeping System. The Custodian has been appointed to control and secure the Bitcoin for the Trust using offline storage, or “cold storage”, mechanisms to secure the Trust’s private key “shards”. The hardware, software, administration and continued technological development that are used by the Custodian may not be available or cost-effective for many investors. 

The Trust differentiates itself from many competing digital asset financial vehicles in the following ways: 

•Custodian. The Custodian that holds the private key shards associated with the Trust’s Bitcoin is Coinbase Custody Trust Company, LLC. Other digital asset financial vehicles that use cold storage may not use a custodian to hold their private keys. 

•Cold Storage of Private Keys. The private key shards associated with the Trust’s Bitcoin are kept in cold storage, which means that the Trust’s Bitcoin are disconnected and/or deleted entirely from the internet. See “—Custody of the Trust’s Bitcoin” for more information relating to the storage and retrieval of the Trust’s private keys to and from cold storage. Other digital asset financial vehicles may not utilize cold storage or may utilize less effective cold storage-related hardware and security protocols. 

•Location of Private Vaults. Private key shards associated with the Trust’s Bitcoin are distributed