STOCK TITAN

Bitcoin slump hits iShares Bitcoin Trust (Nasdaq: IBIT) Q1 NAV by 22%

Filing Impact
(High)
Filing Sentiment
(Neutral)
Form Type
10-Q

Rhea-AI Filing Summary

iShares Bitcoin Trust ETF reported a sharp first-quarter decline as bitcoin prices fell. Net assets dropped from $67.4B at December 31, 2025 to $53.4B at March 31, 2026, a 20.80% decrease, driven mainly by a 22.10% fall in bitcoin from $87,463.03 to $68,129.64.

The trust held 783,744 bitcoin with a fair value of $53.4B and 1,382,480,000 shares outstanding at quarter-end, resulting in NAV per share of $38.62, down from $49.61. Total return at NAV was (22.15)% for the quarter.

Operations produced a net decrease in net assets of $15.1B, including unrealized losses on bitcoin of $14.9B and a net investment loss of $36.7M, partially offset by realized gains on in-kind redemptions. The sponsor’s fee was $36.7M, reflecting an annualized expense ratio of 0.25%. The trust also highlighted an SEC interpretive release stating that, based on current views, bitcoin is a "digital commodity" and not itself a security, while warning that future legal or regulatory changes could still materially affect bitcoin and the shares.

Positive

  • None.

Negative

  • None.

Insights

Q1 NAV fell with bitcoin’s price, while regulatory clarity modestly improved.

iShares Bitcoin Trust ETF remains a pure-price exposure vehicle to bitcoin. Net assets declined from $67.4B to $53.4B as bitcoin’s price dropped 22.10%, driving a (22.15)% total return at NAV.

Operationally, the trust is straightforward: its only ordinary expense is the sponsor’s fee of $36.7M, equal to an annualized 0.25% of average net assets. Net cash flows were modest relative to asset size, with $7.76B in share creations and $6.65B in redemptions.

From a regulatory perspective, the SEC’s March 17, 2026 interpretive release classifying bitcoin as a "digital commodity" and not a security reduces near-term uncertainty, but the filing stresses that future courts, regulators or legislation could still change bitcoin’s status, potentially forcing trust liquidation or creating extraordinary expenses.

Net assets end of period $53,384,746,718 Net assets at March 31, 2026
Net assets start of period $67,401,155,244 Net assets at December 31, 2025
Quarterly NAV per share $38.62 NAV per share at March 31, 2026
Bitcoin price change $87,463.03 to $68,129.64 Bitcoin price from Dec 31, 2025 to Mar 31, 2026
Bitcoin holdings 783,744 bitcoin Quantity held at March 31, 2026
Sponsor’s fee $36,689,450 Three months ended March 31, 2026
Total return at NAV (22.15)% Three months ended March 31, 2026
Shares outstanding 1,382,480,000 shares At March 31, 2026
CF Benchmarks Index financial
"the CME CF Bitcoin Reference Rate – New York Variant for the Bitcoin – U.S. Dollar trading pair (the “CF Benchmarks Index”)"
digital commodity financial
"the SEC stated that, based on its current understanding of the digital asset markets, bitcoin, is a “digital commodity” and not itself a security"
A digital commodity is a scarce, tradable digital asset or service — such as certain cryptocurrencies, data streams, computing power, or bandwidth — treated like a raw material whose value is driven by supply and demand. Think of it like oil or wheat but measured in bits: investors care because its price can rise or fall with utility, scarcity, and market sentiment, and because it may carry different risks from physical commodities, including technology changes and regulatory shifts.
grantor trust financial
"The Trust is treated as a grantor trust for federal income tax purposes and, therefore, no provision for federal income taxes is required"
A grantor trust is a legal arrangement where the person who puts assets into the trust keeps enough control or rights that, for tax and legal purposes, those assets are treated as still belonging to that person. For investors, that matters because income, gains and losses generated by the trust typically flow through to the grantor (or directly to investors) for tax reporting and distributions, affecting after-tax returns and cash flow predictability — think of it like a mailbox that forwards all the mail back to the sender rather than holding it inside.
Authorized Participants financial
"Only registered broker-dealers that have previously entered into an agreement with the Sponsor ... (such broker-dealers, the “Authorized Participants”)"
Authorized participants are a small group of large financial firms that have a formal arrangement with an exchange-traded fund (ETF) or similar product to create and redeem shares directly with the issuer. They act like wholesalers for the fund, supplying or removing shares to keep the market price in line with the value of the underlying assets; their activity affects an ETF’s liquidity, trading costs and how closely it tracks its target holdings.
Net asset value per Share (NAV) financial
"The Trust Administrator calculates the net asset value of the Trust and the net asset value per Share (“NAV”)"
Net asset value per share (NAV) is the total value of an investment fund or company’s assets minus its liabilities, divided by the number of outstanding shares. It represents the underlying value attributable to each share and helps investors tell whether a market price is trading below or above that value—like comparing the price of a whole pie to the worth of each slice.
investment company financial
"the Trust could be considered an unregistered “investment company” under SEC rules, which could necessitate the Trust’s liquidation"
0001980994 iShares Bitcoin Trust ETF false --12-31 Q1 2026 100.02 0.02 100.00 100.02 0.02 100.00 false false false false Cost of investment in bitcoin: $65,593,608,745 and $64,696,243,884, respectively. Net decrease in net assets per Share based on average shares outstanding during the period. Percentage is annualized. Includes $925,972,811 of realized gains and $(1,100,805,304) of realized losses. Includes bitcoin purchased in-kind for Shares issued of $6,071,258,270. The amounts reported for a Share outstanding may not accord with the change in aggregate gains and losses on investment for the period due to the timing of Share transactions in relation to the fluctuating fair values of the Trust’s underlying investment. Includes $311,099,728 of bitcoin paid for the in-kind redemption of Shares. Includes bitcoin paid in-kind for Shares redeemed of $1,641,305,821 (Cost of bitcoin paid was $1,330,206,093 and realized gain of bitcoin paid was $311,099,728). Based on the change in net asset value of a Share during the period. Based on average Shares outstanding during the period. Percentage is not annualized. No par value, unlimited amount authorized. Includes $711,685,203 of realized gains and $(78,845,357) of realized losses. 65,593,608,745 64,696,243,884 0 0 1,382,480,000 1,358,680,000 311,099,728 925,972,811 711,685,203 1,100,805,304 78,845,357 00019809942026-01-012026-03-31 xbrli:shares 00019809942026-04-30 thunderdome:item iso4217:USD 00019809942026-03-31 00019809942025-12-31 iso4217:USDxbrli:shares 00019809942025-01-012025-03-31 00019809942024-12-31 00019809942025-03-31 xbrli:pure 0001980994ibit:BlackRockFinancialManagementIncMember2024-01-052024-01-05 0001980994ibit:BlackRockFinancialManagementIncMember2024-01-05 00019809942024-01-052024-01-05 00019809942024-01-112025-01-11 00019809942025-01-11 0001980994srt:MaximumMember2026-01-012026-03-31
 

 

Table of Contents

  



UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 


 

FORM 10-Q

 


 

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the quarterly period ended March 31, 2026

or

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the transition period fromto

 

Commission File Number: 001-41914

 


 

iShares® Bitcoin Trust ETF

(Exact name of registrant as specified in its charter)

 


 

Delaware

93-6461129

(State or other jurisdiction of
incorporation or organization)

(I.R.S. Employer
Identification No.)

 

c/o iShares Delaware Trust Sponsor LLC
400 Howard Street
San Francisco, California 94105

(Address of principal executive offices) (Zip Code)

 

(415) 670-2000

(Registrants telephone number, including area code)

 


 

N/A

(Former name, former address and former fiscal year, if changed since last report)

 


 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Shares

IBIT

The Nasdaq Stock Market LLC

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer ☒

Accelerated filer ☐

 

Non-accelerated filer ☐

Smaller reporting company 

Emerging growth company 

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes  No ☒

 

As of April 30, 2026, the Registrant had 1,429,680,000 Shares outstanding.

 



  

 

 

 

Table of Contents

 

 

    Page

PART I – FINANCIAL INFORMATION

 

     
Item 1.

Financial Statements (Unaudited)

1
     
 

Statements of Assets and Liabilities at March 31, 2026 and December 31, 2025

1
     
 

Statements of Operations for the three months ended March 31, 2026 and 2025

2
     
 

Statements of Changes in Net Assets for the three months ended March 31, 2026 and 2025

3
     
 

Statements of Cash Flows for the three months ended March 31, 2026 and 2025

5
     
 

Schedules of Investments at March 31, 2026 and December 31, 2025

6
     
 

Notes to Financial Statements

7
     
Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

12
     
Item 3.

Quantitative and Qualitative Disclosures About Market Risk

13
     
Item 4.

Controls and Procedures

13
   

PART II – OTHER INFORMATION

 
   
Item 1.

Legal Proceedings

14
     
Item 1A.

Risk Factors

14
     
Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

15
     
Item 3.

Defaults Upon Senior Securities

15
     
Item 4.

Mine Safety Disclosures

15
     
Item 5.

Other Information

15
     
Item 6.

Exhibits

16
     

SIGNATURES

17

 

 

 

 

PART I FINANCIAL INFORMATION

 

Item 1. Financial Statements

 

 

iShares® Bitcoin Trust ETF

Statements of Assets and Liabilities (Unaudited)

At March 31, 2026 and December 31, 2025

 

  

March 31,
2026

  

December 31,
2025

 

Assets

        

Investment in bitcoin, at fair value(a)

 $53,396,223,856  $67,415,764,355 

Cash

  21,295   38,894 

Total Assets

  53,396,245,151   67,415,803,249 
         

Liabilities

        

Sponsor’s fee payable

  11,498,433   14,648,005 

Total Liabilities

  11,498,433   14,648,005 
         

Commitments and contingent liabilities (Note 6)

        
         

Net Assets

 $53,384,746,718  $67,401,155,244 
         

Shares issued and outstanding(b)

  1,382,480,000   1,358,680,000 

Net asset value per Share (Note 2C)

 $38.62  $49.61 

 


(a) 

Cost of investment in bitcoin: $65,593,608,745 and $64,696,243,884, respectively.

(b) 

No par value, unlimited amount authorized.

 

 

See notes to financial statements.

 

1

 

 

iShares® Bitcoin Trust ETF

Statements of Operations (Unaudited)

For the three months ended March 31, 2026 and 2025

 

   

Three Months Ended
March 31,

 
   

2026

   

2025

 

Expenses

               

Sponsor’s fee

  $ 36,689,450     $ 33,043,551  

Sponsor’s fee waived

          (178,082 )

Total expenses

    36,689,450       32,865,469  

Net investment loss

    (36,689,450 )     (32,865,469 )
                 

Net Realized and Unrealized Gain (Loss)

               

Net realized gain (loss) from:

               

Bitcoin sold to pay expenses

    (5,559,506 )     8,440,558  

Bitcoin sold for the redemption of Shares

    (169,272,987 )(b)     624,399,288  

Net realized gain (loss)

    (174,832,493 )(c)     632,839,846 (d) 

Net change in unrealized appreciation/depreciation

    (14,916,905,360 )     (7,057,849,155 )

Net realized and unrealized loss

    (15,091,737,853 )     (6,425,009,309 )
                 

Net decrease in net assets resulting from operations

  $ (15,128,427,303 )   $ (6,457,874,778 )
                 

Net decrease in net assets per Share(a)

  $ (11.09 )   $ (6.41 )

  


(a) 

Net decrease in net assets per Share based on average shares outstanding during the period.

(b) 

Includes $311,099,728 of bitcoin paid for the in-kind redemption of Shares.

(c) 

Includes $925,972,811 of realized gains and $(1,100,805,304) of realized losses.

(d) 

Includes $711,685,203 of realized gains and $(78,845,357) of realized losses.

 

 

See notes to financial statements.

 

2

 

 

iShares® Bitcoin Trust ETF

Statements of Changes in Net Assets (Unaudited)

For the three months ended March 31, 2026

 

   

Three Months Ended
March 31, 2026

 

Net Assets at December 31, 2025

  $ 67,401,155,244  
         

Operations:

       

Net investment loss

    (36,689,450 )

Net realized loss

    (174,832,493 )

Net change in unrealized appreciation/depreciation

    (14,916,905,360 )

Net decrease in net assets resulting from operations

    (15,128,427,303 )
         

Capital Share Transactions:

       

Contributions for Shares issued

    7,758,988,443  

Distributions for Shares redeemed

    (6,646,969,666 )

Net increase in net assets from capital share transactions

    1,112,018,777  
         

Decrease in net assets

    (14,016,408,526 )
         

Net Assets at March 31, 2026

  $ 53,384,746,718  
         

Shares issued and redeemed

       

Shares issued

    176,920,000  

Shares redeemed

    (153,120,000 )

Net increase in Shares issued and outstanding

    23,800,000  

 

 

See notes to financial statements.

 

3

 

iShares® Bitcoin Trust ETF

Statements of Changes in Net Assets (Unaudited)

For the three months ended March 31, 2025

 

   

Three Months Ended
March 31, 2025

 

Net Assets at December 31, 2024

  $ 51,519,566,547  
         

Operations:

       

Net investment loss

    (32,865,469 )

Net realized gain

    632,839,846  

Net change in unrealized appreciation/depreciation

    (7,057,849,155 )

Net decrease in net assets resulting from operations

    (6,457,874,778 )
         

Capital Share Transactions:

       

Contributions for Shares issued

    5,614,100,414  

Distributions for Shares redeemed

    (2,900,294,791 )

Net increase in net assets from capital share transactions

    2,713,805,623  
         

Decrease in net assets

    (3,744,069,155 )
         

Net Assets at March 31, 2025

  $ 47,775,497,392  
         

Shares issued and redeemed

       

Shares issued

    100,440,000  

Shares redeemed

    (57,400,000 )

Net increase in Shares issued and outstanding

    43,040,000  

 

 

See notes to financial statements.

 

4

 

 

iShares® Bitcoin Trust ETF

Statements of Cash Flows (Unaudited)

For the three months ended March 31, 2026 and 2025

 

   

Three Months Ended
March 31,

 
   

2026

   

2025

 

Cash Flows from Operating Activities

               

Net decrease in net assets resulting from operations

  $ (15,128,427,303 )   $ (6,457,874,778 )

Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash provided by (used in) operating activities:

               

Purchases of bitcoin

    (1,687,685,141 )     (5,598,303,582 )

Proceeds from bitcoin sold

    5,045,440,236       2,956,051,074  

Net realized (gain) loss

    174,832,493       (632,839,846 )

Net change in unrealized appreciation/depreciation

    14,916,905,360       7,057,849,155  

Change in operating assets and liabilities:

               

Sponsor’s fee payable

    (3,149,572 )     (244,547 )

Net cash provided by (used in) operating activities

  $ 3,317,916,073     $ (2,675,362,524 )
                 

Cash Provided by Financing Activities

               

Proceeds from issuance of Shares

  $ 1,687,730,173     $ 5,599,010,733  

Payments for Shares redeemed

    (5,005,663,845 )     (2,923,745,231 )

Net cash provided by (used in) financing activities

  $ (3,317,933,672 )   $ 2,675,265,502  
                 

Cash

               

Net decrease in cash

  $ (17,599 )   $ (97,022 )

Cash, beginning of period

    38,894       126,735  

Cash, end of period

  $ 21,295     $ 29,713  
                 

Supplemental disclosure of non-cash information:

               

Bitcoin purchased for Shares issued

  $ 6,071,258,270     $  

Bitcoin paid for Shares redeemed

  $ (1,641,305,821 )   $  

 

 

See notes to financial statements.

 

5

 

 

iShares® Bitcoin Trust ETF

Schedules of Investments (Unaudited)

At March 31, 2026 and December 31, 2025

 

March 31, 2026

 

Description

 

Quantity

  

Cost

  

Fair Value

 

Bitcoin

  783,744  $65,593,608,745  $53,396,223,856 
             

Total Investments – 100.02%

          53,396,223,856 

Liabilities in Excess of Other Assets – (0.02)%

          (11,477,138)

Net Assets – 100.00%

         $53,384,746,718 

 

 

December 31, 2025

 

Description

 

Quantity

  

Cost

  

Fair Value

 

Bitcoin

  770,792  $64,696,243,884  $67,415,764,355 
             

Total Investments – 100.02%

          67,415,764,355 

Liabilities in Excess of Other Assets – (0.02)%

          (14,609,111)

Net Assets – 100.00%

         $67,401,155,244 

 

 

See notes to financial statements.

 

6

 

iShares® Bitcoin Trust ETF

Notes to Financial Statements (Unaudited)

March 31, 2026

 

 

1 -

Organization

 

The iShares Bitcoin Trust ETF (the “Trust”) was organized on June 8, 2023 as a Delaware statutory trust. The trustee is BlackRock Fund Advisors (the “Trustee”), which is responsible for the day-to-day administration of the Trust. The Trust’s sponsor is iShares Delaware Trust Sponsor LLC, a Delaware limited liability company (the “Sponsor”). The Bank of New York Mellon serves as the “Trust Administrator.” The Trust is governed by the provisions of the Third Amended and Restated Trust Agreement (the “Trust Agreement”) executed by the Sponsor, the Trustee and Wilmington Trust, National Association, a national association (“Delaware Trustee”), as of June 27, 2025. The Trust issues units of beneficial interest (“Shares”) representing fractional undivided beneficial interests in its net assets.

 

On January 5, 2024, BlackRock Financial Management, Inc. (the “Seed Capital Investor”) redeemed 4,000 Shares for $100,000 ($25.00 per share) (the “Seed Shares”) for cash and the Seed Capital Investor purchased 400,000 Shares at a per-Share price of $25.00 (the “Seed Creation Baskets”). Total proceeds to the Trust from the sale of the Seed Creation Baskets were $10,000,000. The Seed Capital Investor is an affiliate of the Sponsor. The Sponsor’s fee started accruing daily at an annualized rate equal to 0.25% of the net asset value of the Trust on January 5, 2024.

 

The Trust’s registration statement on Form S-1 relating to its continuous public offering of Shares was declared effective by the Securities and Exchange Commission (“SEC”) on January 10, 2024 (Effective Date) and the Shares were listed on The Nasdaq Stock Market LLC (“NASDAQ”) on January 11, 2024.

 

On July 29, 2025, the SEC issued 19b-4 orders permitting in-kind creations and redemptions by authorized participants for the Trust. On July 31, 2025, the amendment to the Trust’s registration statement on Form S-1 was declared effective. As a result of these regulatory actions, the Trust is authorized to create and redeem Shares with authorized participants on an in-kind basis.

 

The Trust seeks to reflect generally the performance of the price of bitcoin. The Trust seeks to reflect such performance before payment of the Trust’s expenses and liabilities. The Shares are intended to constitute a simple means of making an investment similar to an investment in bitcoin.

 

The accompanying unaudited financial statements were prepared in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”) for interim financial information and with the instructions for Form 10-Q and the rules and regulations of the SEC. In the opinion of management, all material adjustments, consisting only of normal recurring adjustments considered necessary for a fair statement of the interim period financial statements, have been made. Interim period results are not necessarily indicative of results for a full-year period. These financial statements and the notes thereto should be read in conjunction with the Trust’s financial statements included in its Annual Report on Form 10-K for the year ended December 31, 2025, as filed with the SEC on February 27, 2026.

 

The Trust qualifies as an investment company solely for accounting purposes and not for any other purpose and follows the accounting and reporting guidance under the Financial Accounting Standards Board Accounting Standards Codification Topic 946, Financial Services - Investment Companies, but is not registered, and is not required to be registered, as an investment company under the Investment Company Act of 1940, as amended.

 

 

2 -

Significant Accounting Policies

 

A.

Basis of Accounting

 

The following significant accounting policies are consistently followed by the Trust in the preparation of its financial statements in conformity with U.S. GAAP. The preparation of financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.

 

B.

Bitcoin

 

Coinbase Custody Trust Company, LLC (the “Bitcoin Custodian”) is responsible for safekeeping the bitcoin owned by the Trust. Anchorage Digital Bank N.A. is the “Additional Bitcoin Custodian” for the Trust. At the current time, the Sponsor has no plans to move any of the Trust’s bitcoin to the Additional Bitcoin Custodian. The Bitcoin Custodian and the Additional Bitcoin Custodian are appointed by the Trustee.

 

The net asset value of the Trust equals the total assets of the Trust, which consists solely of bitcoin and cash, less total liabilities of the Trust, each determined by the Trustee pursuant to policies established from time to time by the Trustee or its affiliates or otherwise described herein. The Trust’s periodic financial statements are prepared in accordance with the Financial Accounting Standards Board Accounting Standards Codification Topic 820, “Fair Value Measurement” and utilize an exchange-traded price from the Trust’s principal market for bitcoin as of 11:59 p.m. Eastern Time (“ET”) on the Trust’s financial statement measurement date. The Sponsor determines in its sole discretion the valuation sources and policies used to prepare the Trust’s financial statements in accordance with U.S. GAAP. The Trust engages a third-party vendor to obtain a price from a principal market for bitcoin, which is determined and designated by such third-party vendor daily based on its consideration of several exchange characteristics, including oversight, and the volume and frequency of trades.

 

The Sponsor has the exclusive authority to determine the Trust’s net asset value, which it has delegated to the Trustee under the Trust Agreement. The Trustee has delegated to the Trust Administrator the responsibility to calculate the net asset value of the Trust and the net asset value per Share (“NAV”), based on a pricing source selected by the Trustee. In determining the Trust’s net asset value, the Trust Administrator values the bitcoin held by the

 

7

 

Trust based on an index (the “Index”), unless the Sponsor in its sole discretion determines that the Index is unreliable. The methodology used to calculate the Index price to value bitcoin in determining the net asset value of the Trust may not be deemed consistent with U.S. GAAP. The CME CF Bitcoin Reference Rate – New York Variant for the Bitcoin – U.S. Dollar trading pair (the “CF Benchmarks Index”) shall constitute the Index, unless the CF Benchmarks Index is not available or the Sponsor in its sole discretion determines the CF Benchmarks Index is unreliable as the Index and therefore determines not to use the CF Benchmarks Index as the Index. If the CF Benchmarks Index is not available or the Sponsor determines, in its sole discretion, that the CF Benchmarks Index is unreliable (together a “Fair Value Event”), the Trust’s holdings may be fair valued on a temporary basis in accordance with the fair value policies approved by the Trustee.

 

Additionally, the Trust Administrator monitors for unusual prices and escalates to the Trustee if detected. If the CF Benchmarks Index is not used, the Trust will notify Shareholders in a prospectus supplement, in its periodic Exchange Act reports and/or on the Trust’s website. The Trust Administrator calculates the net asset value of the Trust and the NAV once on each day other than a Saturday or a Sunday or a day on which NASDAQ is closed for regular trading (a “Business Day”). The NAV for a normal trading day will be released after 4:00 p.m. ET. Trading during the core trading session on NASDAQ typically closes at 4:00 p.m. ET. However, NAVs are not officially released until after the completion of a comprehensive review of the NAV and prices utilized to determine the NAV of the Trust by the Trust Administrator. Upon the completion of the end of day reviews by the Trust Administrator the NAV is released to the public typically by 5:30 p.m. ET and generally no later than 8:00 p.m. ET. The period between 4:00 p.m. ET and the NAV release after 5:30 p.m. ET (or later) provides an opportunity for the Trust Administrator and the Trustee to detect, flag, investigate, and correct unusual pricing should it occur and implement a Fair Value Event, if necessary. Any such correction could adversely affect the value of the Shares.

 

The Trust’s periodic financial statements may not utilize the net asset value of the Trust to the extent the methodology used to calculate the Index is deemed not to be consistent with U.S. GAAP.

 

Gain or loss on sales of bitcoin is calculated on a trade date basis using the average cost method.

 

The following tables summarize activity in bitcoin for the three months ended March 31, 2026 and 2025:

 

Three Months Ended March 31, 2026

 

Quantity

  

Cost

  

Fair Value

  

Realized
Gain (Loss)

 

Beginning balance

  770,792  $64,696,243,884  $67,415,764,355  $ 

Bitcoin purchased(a)

  100,311   7,758,943,411   7,758,943,411    

Bitcoin sold for the redemption of Shares(b)

  (86,822)  (6,816,377,906)  (6,647,104,919)  (169,272,987)

Bitcoin sold to pay expenses

  (537)  (45,200,644)  (39,641,138)  (5,559,506)

Net realized loss(b)

        (174,832,493)   

Net change in unrealized appreciation/depreciation

        (14,916,905,360)   

Ending balance

  783,744  $65,593,608,745  $53,396,223,856  $(174,832,493)

 


(a) 

Includes bitcoin purchased in-kind for Shares issued of $6,071,258,270.

(b) 

Includes bitcoin paid in-kind for Shares redeemed of $1,641,305,821 (Cost of bitcoin paid was $1,330,206,093 and realized gain of bitcoin paid was $311,099,728).

  

Three Months Ended March 31, 2025

 

Quantity

  

Cost

  

Fair Value

  

Realized
Gain (Loss)

 

Beginning balance

  551,918  $37,372,942,571  $51,530,013,513  $ 

Bitcoin purchased

  57,098   5,613,392,900   5,613,392,900    

Bitcoin sold for the redemption of Shares

  (32,628)  (2,275,391,751)  (2,899,791,039)  624,399,288 

Bitcoin sold to pay expenses

  (350)  (24,368,414)  (32,808,972)  8,440,558 

Net realized gain

        632,839,846    

Net change in unrealized appreciation/depreciation

        (7,057,849,155)   

Ending balance

  576,038  $40,686,575,306  $47,785,797,093  $632,839,846 

 

C.

Calculation of Net Asset Value

 

On each Business Day, as soon as practicable after 4:00 p.m. ET, the net asset value of the Trust is obtained by subtracting all accrued fees, expenses and other liabilities of the Trust from the total assets held by the Trust. The Trust Administrator computes the NAV by dividing the net asset value of the Trust by the number of Shares outstanding on the date the computation is made.

 

D.

Cash and Cash Equivalents

 

Cash includes non-interest bearing, non-restricted cash maintained with one banking institution that does not exceed U.S. federally insured limits.

 

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E.

Offering of the Shares

 

Shares are issued and redeemed continuously in aggregations of 40,000 Shares (a “Basket”) or integral multiples thereof, based on the quantity of bitcoin attributable to each Share (net of accrued but unpaid Sponsor’s fee and any accrued but unpaid expenses or liabilities). Individual investors cannot purchase or redeem Shares in direct transactions with the Trust. Only registered broker-dealers that are eligible to settle securities transactions through the book entry facilities of the Depository Trust Company and that have entered into a contractual arrangement with the Sponsor governing, among other matters, the creation and redemption of Shares (such broker-dealers, the “Authorized Participants”), can place orders to receive Baskets in exchange for cash or bitcoin. Baskets  may be redeemed by the Trust in exchange for an amount of bitcoin corresponding to their redemption value or for the cash proceeds from selling the amount of bitcoin corresponding to their redemption value.

 

In connection with cash creations and redemptions, the Trust engages in bitcoin transactions for converting cash into bitcoin (in association with purchase orders) and bitcoin into cash (in association with redemption orders) by choosing, in its sole discretion, to trade directly with third parties (each, a “Bitcoin Trading Counterparty”), who are not registered broker-dealers pursuant to written agreements between such Bitcoin Trading Counterparties and the Trust, or choosing to trade through Coinbase, Inc. (the “Prime Execution Agent”) acting in an agency capacity with third parties through its Coinbase Prime service pursuant to the Prime Execution Agent Agreement.

 

F.

Federal Income Taxes

 

The Trust is treated as a grantor trust for federal income tax purposes and, therefore, no provision for federal income taxes is required. Any interest, expenses, gains and losses are passed through to the holders of Shares of the Trust. The Sponsor has analyzed applicable tax laws and regulations and their application to the Trust as of March 31, 2026 and does not believe that there are any uncertain tax positions that require recognition of a tax liability.

 

G.

Segment Reporting

 

The Chief Financial Officer of the Sponsor acts as the Trust’s Chief Operating Decision Maker (“CODM”) and is responsible for assessing performance and allocating resources with respect to the Trust. The CODM has concluded that the Trust operates as a single operating segment since the Trust has a single investment strategy as disclosed in its prospectus, against which the CODM assesses performance. The financial information provided to and reviewed by the CODM is presented within the Trust’s financial statements.

 

 

3 -

Trust Expenses

 

The Sponsor’s fee is accrued daily at an annualized rate equal to 0.25% of the net asset value of the Trust and is payable at least quarterly in arrears in U.S. dollars or in-kind or any combination thereof. For the three months ended March 31, 2026, the Sponsor’s fee was $36,689,450.

 

The Sponsor may, at its sole discretion and from time to time, waive all or a portion of the Sponsor’s fee for stated periods of time. The Sponsor is under no obligation to waive any portion of its fees and any such waiver shall create no obligation to waive any such fees during any period not covered by the waiver. For a twelve-month period, starting January 11, 2024, the Sponsor waived a portion of the Sponsor’s fee so that the Sponsor’s fee after the fee waiver would be equal to 0.12% of the net asset value of the Trust for the first $5.0 billion of the Trust’s assets. In the future, if the Sponsor decides to waive all or a portion of the Sponsor’s fee, Shareholders will be notified in a prospectus supplement, in its periodic Exchange Act reports and/or on the Trust’s website. For the three months ended March 31, 2026, there were no fees waived.

 

The Sponsor has agreed to assume the marketing and the following administrative expenses of the Trust: the fees of the Trustee, the Delaware Trustee, the Trust Administrator, the Bitcoin Custodian, the Additional Bitcoin Custodian, and The Bank of New York Mellon (the “Cash Custodian”), NASDAQ listing fees, SEC registration fees, printing and mailing costs, tax reporting fees, audit fees, license fees and expenses and up to $500,000 per annum in ordinary legal fees and expenses. The Sponsor may determine in its sole discretion to assume legal fees and expenses of the Trust in excess of the $500,000 per annum required under the Trust Agreement. To the extent that the Sponsor does not voluntarily assume such fees and expenses, they will be the responsibility of the Trust.

 

 

4 -

Related Parties

 

The Sponsor and the Trustee are considered to be related parties to the Trust. The Trustee’s fee is paid by the Sponsor and is not a separate expense of the Trust.

 

 

5 -

Indemnification

 

The Trust Agreement provides that the Sponsor shall indemnify the Trustee, its directors, employees, delegees and agents against, and hold each of them harmless from, any loss, liability, claim, cost, expense or judgment of any kind whatsoever (including the reasonable fees and expenses of counsel) that is incurred by any of them and that arises out of or is related to (1) any offer or sale by the Trust of Baskets, (2) acts performed or omitted pursuant to the provisions of the Trust Agreement (A) by the Trustee, its directors, employees, delegees and agents or (B) by the Sponsor or (3) any filings with or submissions to the SEC in connection with or with respect to the Shares, except that the Sponsor shall not have any obligations to pay any indemnification amounts incurred as a result of and attributable to (x) the willful misconduct, gross negligence or bad faith of, or material breach of the terms of the Trust Agreement by, the Trustee, (y) information furnished in writing by the Trustee to the Sponsor expressly for use in the registration statement, or any amendment thereto, filed with the SEC relating to the Shares that is not materially altered by the Sponsor or (z) any misrepresentations or omissions made by an authorized participant (other than the Sponsor) in connection with such authorized participant’s offer and sale of Shares.

 

9

 

The Trust Agreement provides that the Trustee shall indemnify the Sponsor, its directors, employees, delegees and agents against, and hold each of them harmless from, any loss, liability, claim, cost, expense or judgment of any kind whatsoever (including the reasonable fees and expenses of counsel) (1) caused by the willful misconduct, gross negligence or bad faith of the Trustee or (2) arising out of any information furnished in writing to the Sponsor by the Trustee expressly for use in the registration statement, or any amendment thereto or periodic report, filed with the SEC relating to the Shares that is not materially altered by the Sponsor.

 

The Trust Agreement provides that the Sponsor and its shareholders, directors, officers, employees, affiliates (as such term is defined under the Securities Act of 1933, as amended) and subsidiaries and agents shall be indemnified from the Trust and held harmless against any loss, liability, claim, cost, expense or judgment of any kind whatsoever (including the reasonable fees and expenses of counsel) arising out of or in connection with the performance of their obligations under the Trust Agreement or any actions taken in accordance with the provisions of the Trust Agreement and incurred without their (1) willful misconduct, gross negligence or bad faith or (2) reckless disregard of their obligations and duties under the Trust Agreement.

 

The Trust has agreed that the Cash Custodian will only be responsible for any loss or damage suffered by the Trust as a direct result of the Cash Custodian’s negligence, fraud or willful default in the performance of its duties.

 

The Trust’s maximum exposure under these arrangements is unknown because it involves future potential claims against the Trust, which cannot be predicted with any certainty.

 

 

6 -

Commitments and Contingent Liabilities

 

In the normal course of business, the Trust may enter into contracts with service providers that contain general indemnification clauses. The Trust’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Trust, that have not yet occurred.

 

 

7 -

Concentration Risk

 

Substantially all of the Trust’s assets are holdings of bitcoin, which creates a concentration risk associated with fluctuations in the price of bitcoin. Accordingly, a decline in the price of bitcoin will have an adverse effect on the value of the Shares of the Trust. Factors that may have the effect of causing a decline in the price of bitcoin include negative perception of digital assets; a lack of stability and standardized regulation in the digital asset markets; the closure or temporary shutdown of digital asset platforms due to fraud, business failure, security breaches or government mandated regulation; and a loss of investor confidence.

 

10

 
 

8 -

Financial Highlights

 

The following financial highlights relate to investment performance and operations for a Share outstanding for the three months ended March 31, 2026 and 2025.

 

   

Three Months Ended
March 31,

 
   

2026

   

2025

 

Net asset value per Share, beginning of period

  $ 49.61     $ 53.09  
                 

Net investment loss(a)

    (0.03 )     (0.03 )

Net realized and unrealized loss(b)

    (10.96 )     (5.92 )

Net decrease in net assets from operations

    (10.99 )     (5.95 )

Net asset value per Share, end of period

  $ 38.62     $ 47.14  
                 

Total return, at net asset value(c)(d)

    (22.15 )%     (11.21 )%
                 

Ratio to average net assets:

               

Net investment loss(e)

    (0.25 )%     (0.25 )%

Total expenses(e)

    0.25 %     0.25 %

Total expenses after fees waived(e)

    0.25 %     0.25 %

 


(a) 

Based on average Shares outstanding during the period.

(b) 

The amounts reported for a Share outstanding may not accord with the change in aggregate gains and losses on investment for the period due to the timing of Share transactions in relation to the fluctuating fair values of the Trust’s underlying investment.

(c) 

Based on the change in net asset value of a Share during the period.

(d) 

Percentage is not annualized.

(e) 

Percentage is annualized.

 

 

9 -

Investment Valuation

 

U.S. GAAP defines fair value as the price the Trust would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. The Trust’s policy is to value its investment at fair value.

 

Various inputs are used in determining the fair value of assets and liabilities. Inputs may be based on independent market data (“observable inputs”) or they may be internally developed (“unobservable inputs”). These inputs are categorized into a disclosure hierarchy consisting of three broad levels for financial reporting purposes. The level of a value determined for an asset or liability within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement in its entirety. The three levels of the fair value hierarchy are as follows:

 

 

Level 1  − 

Unadjusted quoted prices in active markets for identical assets or liabilities;

 

 

Level 2  − 

Inputs other than quoted prices included within Level 1 that are observable for the asset or liability either directly or indirectly, including quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not considered to be active, inputs other than quoted prices that are observable for the asset or liability, and inputs that are derived principally from or corroborated by observable market data by correlation or other means; and

 

 

Level 3  − 

Unobservable inputs that are unobservable for the asset or liability, including the Trust’s assumptions used in determining the fair value of investments.

 

At March 31, 2026, the value of the bitcoin held by the Trust is categorized as Level 1.

 

11

 
 

Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations.

 

This information should be read in conjunction with the financial statements and notes to financial statements included in Item 1 of Part I of this Form 10‑Q. The discussion and analysis that follows may contain statements that relate to future events or future performance. In some cases, such forward‑looking statements can be identified by terminology such as may, should, could, expect, plan, anticipate, believe, estimate, predict, potential or the negative of these terms or other comparable terminology. These statements are only predictions. Actual events or results may differ materially. These statements are based upon certain assumptions and analyses made by the Sponsor on the basis of its perception of historical trends, current conditions and expected future developments, as well as other factors it believes are appropriate in the circumstances. Whether or not actual results and developments will conform to the Sponsors expectations and predictions, however, is subject to a number of risks and uncertainties, including the special considerations discussed below, general economic, market and business conditions, changes in laws or regulations, including those concerning taxes, made by governmental authorities or regulatory bodies, and other world economic and political developments. Although the Sponsor does not make forward-looking statements unless it believes it has a reasonable basis for doing so, the Sponsor cannot guarantee their accuracy. Except as required by applicable disclosure laws, neither the Trust nor the Sponsor is under a duty to update any of the forward-looking statements to conform such statements to actual results or to a change in the Sponsors expectations or predictions.

 

Introduction

 

The iShares Bitcoin Trust ETF (the “Trust”) is a Delaware statutory trust. The Trust does not have any officers, directors, or employees and is administered by the Third Amended and Restated Trust Agreement dated as of June 27, 2025, among iShares Delaware Trust Sponsor LLC (the “Sponsor”), BlackRock Fund Advisors (the “Trustee”) and Wilmington Trust, National Association, a national association (the “Delaware Trustee”). The Trust issues shares (“Shares”) representing fractional undivided beneficial interests in its net assets. The assets of the Trust consist primarily of bitcoin held by a custodian on behalf of the Trust.

 

The Trust is a passive investment vehicle and seeks to reflect generally the performance of the price of bitcoin. The Trust seeks to reflect such performance before payment of the Trust’s expenses and liabilities. The Trust does not engage in any activities designed to obtain a profit from, or ameliorate losses caused by, changes in the price of bitcoin.

 

The Trust issues and redeems Shares only in aggregations of 40,000 Shares (a “Basket”) or integral multiples thereof, based on the quantity of bitcoin attributable to each Share (net of accrued but unpaid Sponsor’s fee and any accrued but unpaid expenses or liabilities). Only registered broker-dealers that have previously entered into an agreement with the Sponsor governing the terms and conditions of such transactions (such broker-dealers, the “Authorized Participants”), can place orders to receive Baskets in exchange for cash or bitcoin. Baskets may be redeemed by the Trust in exchange for an amount of bitcoin corresponding to their redemption value or for the cash proceeds from selling the amount of bitcoin corresponding to their redemption value.

 

In connection with cash creations and redemptions, the Trust engages in bitcoin transactions for converting cash into bitcoin (in association with purchase orders) and bitcoin into cash (in association with redemption orders) by choosing, in its sole discretion, to trade directly with third parties (each, a “Bitcoin Trading Counterparty”), who are not registered broker-dealers pursuant to written agreements between such Bitcoin Trading Counterparties and the Trust, or choosing to trade through Coinbase, Inc. (the “Prime Execution Agent”) acting in an agency capacity with third parties through its Coinbase Prime service pursuant to the Prime Execution Agent Agreement.

 

Shares of the Trust trade on The Nasdaq Stock Market LLC (“NASDAQ”) under the ticker symbol IBIT.

 

Valuation of Bitcoin; The CF Benchmarks Index

 

On each day other than a Saturday or a Sunday, or a day on which NASDAQ is closed for regular trading (a “Business Day”), as soon as practicable after 4:00 p.m. Eastern Time (“ET”), the Trust evaluates the bitcoin held by the Trust as reflected by the CME CF Bitcoin Reference Rate – New York Variant for the Bitcoin – U.S. Dollar trading pair (the “CF Benchmarks Index”) and determines the net asset value of the Trust and the net asset value per Share (“NAV”).

 

CF Benchmarks Index is calculated as of 4:00 p.m. ET. The CF Benchmarks Index is designed based on the IOSCO Principles for Financial Benchmarks and is a Registered Benchmark under the UK Benchmark Regulations (“BMR”). The administrator of the CF Benchmarks Index is CF Benchmarks Ltd. (the “Index Administrator”) a UK incorporated company, authorized and regulated by the Financial Conduct Authority of the UK as a Benchmark Administrator, under the UK BMR.

 

Liquidity

 

The Trust is not aware of any trends, demands, conditions or events that are reasonably likely to result in material changes to its liquidity needs. In exchange for a fee, the Sponsor has agreed to assume most of the expenses incurred by the Trust. As a result, the only ordinary expense of the Trust during the period covered by this report was the Sponsor’s Fee. The Trust’s only source of liquidity is its sales of bitcoin.

 

Critical Accounting Policies

 

The financial statements and accompanying notes are prepared in accordance with generally accepted accounting principles in the United States. The preparation of these financial statements relies on estimates and assumptions that impact the Trust’s financial position and results of operations. These estimates and assumptions affect the Trust’s application of accounting policies. A description of the valuation of bitcoin, a critical accounting policy that the Trust believes is important to understanding its results of operations and financial position, is provided in the section entitled “Valuation of Bitcoin; The CF Benchmark Index,” above. In addition, please refer to Note 2 to the financial statements included in this report for further discussion of the Trust’s accounting policies.

 

12

 

Results of Operations

 

The Quarter Ended March 31, 2026

 

The Trust’s net asset value decreased from $67,401,155,244 at December 31, 2025 to $53,384,746,718 at March 31, 2026, a 20.80% decrease. The decrease in the Trust’s net asset value resulted primarily from a decrease in the price of bitcoin, which fell 22.10% from $87,463.03 at December 31, 2025 to $68,129.64 at March 31, 2026. The decrease in the Trust’s net asset value was partially offset by an increase in the number of outstanding Shares, which rose from 1,358,680,000 Shares at December 31, 2025 to 1,382,480,000 Shares at March 31, 2026, a consequence of 176,920,000 Shares (4,423 Baskets) being created and 153,120,000 Shares (3,828 Baskets) being redeemed during the quarter.

 

The 22.15% decrease in the NAV for purposes of the Trust’s periodic financial statements (“Financial Statement NAV”) from $49.61 at December 31, 2025 to $38.62 at March 31, 2026 is directly related to the 22.10% decrease in the price of bitcoin. The Financial Statement NAV decreased slightly more than the price of bitcoin on a percentage basis due to the Sponsor’s Fee, which was $36,689,450 for the quarter, or 0.06% of the Trust’s average weighted assets of $59,535,040,296 during the quarter.

 

The NAV of $55.32 on January 14, 2026 was the highest during the quarter, compared with a low during the quarter of $36.23 on February 5, 2026.

 

The net decrease in net assets resulting from operations for the quarter ended March 31, 2026 was $15,128,427,303, resulting from a net realized loss of $5,559,506 from bitcoin sold to pay expenses, a net realized loss of $480,372,715 from bitcoin sold for the redemption of Shares, an unrealized loss on investment in bitcoin of $14,916,905,360 and a net investment loss of $36,689,450, partially offset by a net realized gain of $311,099,728 from bitcoin paid for the in-kind redemptions of Shares. Other than the Sponsor’s fee of $36,689,450, the Trust had no expenses during the quarter.

 

 

Item 3. Quantitative and Qualitative Disclosures About Market Risk.

 

Not applicable.

 

 

Item 4. Controls and Procedures.

 

The duly authorized officers of the Sponsor performing functions equivalent to those a principal executive officer and principal financial officer of the Trust would perform if the Trust had any officers, with the participation of the Trustee, have evaluated the effectiveness of the Trust’s disclosure controls and procedures, and have concluded that the disclosure controls and procedures of the Trust were effective as of March 31, 2026, the end of the period covered by this report, to provide reasonable assurance that information required to be disclosed in the reports that the Trust files or submits under the Securities Exchange Act of 1934, as amended, is recorded, processed, summarized and reported, within the time periods specified in the applicable rules and forms, and that it is accumulated and communicated to the duly authorized officers of the Sponsor performing functions equivalent to those a principal executive officer and principal financial officer of the Trust would perform if the Trust had any officers, as appropriate to allow timely decisions regarding required disclosure.

 

There are inherent limitations to the effectiveness of any system of disclosure controls and procedures, including the possibility of human error and the circumvention or overriding of the controls and procedures.

 

There were no changes in the Trust’s internal control over financial reporting that occurred during the quarter ended March 31, 2026 that have materially affected, or are reasonably likely to materially affect, the Trust’s internal control over financial reporting.

 

13

 

PART II OTHER INFORMATION

 

Item 1. Legal Proceedings.

 

None.

 

 

Item 1A. Risk Factors

 

Except as set forth below, there have been no material changes to the Risk Factors last reported under Part I, Item 1A of the registrant’s Annual Report on Form 10-K for the year ended December 31, 2025, filed with the Securities and Exchange Commission on February 27, 2026.

 

A determination that bitcoin or any other digital asset is a security may adversely affect the value of bitcoin and the value of the Shares, and result in potentially extraordinary, nonrecurring expenses to, or termination of, the Trust.

 

Depending on its characteristics, a digital asset may be considered a “security” under the federal securities laws. The test for determining whether a particular digital asset is a “security” is complex and difficult to apply, and the outcome is difficult to predict. Although certain public statements by SEC officials have suggested that bitcoin may not be treated as a security, such statements are non-binding and subject to change, and regulatory authorities or courts may reach a different conclusion.

 

Whether a digital asset is a security under the federal securities laws depends on whether it is included in the lists of instruments making up the definition of “security” in the Securities Act, the Exchange Act and the Investment Company Act. Digital assets as such do not appear in any of these lists, although each list includes the terms “investment contract” and “note,” and the SEC has typically analyzed whether a particular digital asset is a security by reference to whether it meets the tests developed by the federal courts interpreting these terms, known as the Howey and Reves tests, respectively. For many digital assets, whether or not the Howey or Reves tests are met is difficult to resolve definitively, and substantial legal arguments can often be made both in favor of and against a particular digital asset qualifying as a security under one or both of the Howey and Reves tests. Adding to the complexity, the SEC staff has indicated that the security status of a particular digital asset can change over time as the relevant facts evolve.

 

On March 17, 2026, the SEC issued an interpretive release (the “Interpretive Release”) regarding the application of the federal securities laws to certain types of digital assets and certain transactions involving digital assets. In the Interpretive Release, the SEC stated that, based on its current understanding of the digital asset markets, bitcoin, is a “digital commodity” and not itself a security. Although the Interpretive Release represents the official position of the SEC, it is not itself a statute or binding rule, does not supersede or replace the Howey test, is based on the SEC’s current understanding of the digital asset markets, and may be refined, revised or expanded. In addition, a court, regulator, or future administration could take a different view, and future legislation, rulemaking, enforcement positions, judicial decisions or other developments could result in bitcoin, the Trust, the Shares or transactions involving bitcoin being treated differently than contemplated by the Interpretive Release. Any such developments could adversely affect the Trust and the value of the Shares.

 

As part of determining whether bitcoin is a security for purposes of the federal securities laws, the Sponsor takes into account a number of factors, including the various definitions of “security” under the federal securities laws and federal court decisions interpreting elements of these definitions, such as the U.S. Supreme Court’s decisions in the Howey and Reves cases, as well as reports, orders, press releases, public statements and speeches by the SEC and its staff providing guidance on when a digital asset may be a security for purposes of the federal securities laws, and other materials relevant to the status of bitcoin as a security (or not). Finally, the Sponsor discusses the security status of bitcoin with its securities lawyers. Through this process the Sponsor believes that it is applying the proper legal standards in making a good faith determination that it believes bitcoin is not presently a security under federal law notwithstanding the uncertainties inherent in the Howey and Reves tests. However, because of these uncertainties and the fact-based nature of the analysis, the Sponsor acknowledges that bitcoin may currently be a security, based on the facts as they exist today, or may in the future be found by the SEC or a federal court to be a security under the federal securities laws notwithstanding the Sponsor’s prior conclusion; and the Sponsor’s prior conclusion, even if reasonable under the circumstances and made in good faith, would not preclude legal or regulatory action based on the presence of a security.

 

The Sponsor may dissolve the Trust if the Sponsor determines bitcoin is a security under the federal securities laws, whether that determination is initially made by the Sponsor itself, or because the SEC or a federal court subsequently makes that determination. Because the legal tests for determining whether a digital asset is or is not a security often leave room for interpretation, for so long as the Sponsor believes there to be good faith grounds to conclude that the Trust’s bitcoin is not a security, the Sponsor does not intend to dissolve the Trust on the basis that bitcoin could at some future point be determined to be a security.

 

Any enforcement action by the SEC or a state securities regulator asserting that bitcoin is a security, or a court decision, to that effect would be expected to have an immediate material adverse impact on the trading value of bitcoin, as well as the Shares. This is because the business models behind most digital assets are incompatible with regulations applying to transactions in securities.

 

If a digital asset is determined or asserted to be a security, it is likely to become difficult or impossible for the digital asset to be traded, cleared or custodied in the United States through the same channels used by non-security digital assets, which in addition to materially and adversely affecting the trading value of the digital asset is likely to significantly impact its liquidity and market participants’ ability to convert the digital asset into U.S. dollars. For example, in 2020 the SEC filed a complaint against the issuer of XRP, Ripple Labs, Inc., and two of its executives, alleging that they raised more than $1.3 billion through XRP sales that should have been registered under the federal securities laws, but were not. In the years prior to the SEC’s action, XRP’s market capitalization at times reached over $140 billion. However, in the weeks following the SEC’s complaint, XRP’s market capitalization fell to less than $10 billion, which was less than half of its market capitalization in the days prior to the complaint. Although the SEC and Ripple reached a settlement in August 2025 to resolve the enforcement action and to dismiss their respective court appeals, which has largely been viewed as positive in the digital assets market, there remains continued uncertainty as to the regulatory framework that will be applied by the SEC and courts to digital assets. Such uncertainty may remain until legislation providing a regulatory framework is adopted. There is currently legislation being considered that addresses this regulatory uncertainty, but it is unclear if the proposed legislation will be passed.

 

14

 

In addition, if bitcoin is determined to be a security, the Trust could be considered an unregistered “investment company” under SEC rules, which could necessitate the Trust’s liquidation. In this case, the Trust and the Sponsor may be deemed to have participated in an illegal offering of securities and there is no guarantee that the Sponsor will be able to register the Trust under the Investment Company Act at such time or take such other actions as may be necessary to ensure the Trust’s activities comply with applicable law, which could force the Sponsor to liquidate the Trust.

 

Moreover, whether or not the Sponsor or the Trust were subject to additional regulatory requirements as a result of any SEC or federal court determination that its assets include securities, the Sponsor may nevertheless decide to terminate the Trust, in order, if possible, to liquidate the Trust’s assets while a liquid market still exists. For example, in response to the SEC’s action against the issuer of XRP, certain significant market participants announced they would no longer support XRP and announced measures, including the delisting of XRP from major digital asset trading platforms. The sponsor of the Grayscale XRP Trust subsequently dissolved this trust and liquidated its assets. If the SEC or a federal court were to determine that bitcoin is a security, it is likely that the value of the Shares would decline significantly, and that the Trust itself may be terminated and, if practical, its assets liquidated.

 

Regulatory changes or interpretations could obligate the Trust, the Trustee or the Sponsor to register and comply with new regulations, resulting in potentially extraordinary, nonrecurring expenses to the Trust.

 

Current and future federal or state legislation, CFTC and SEC rulemaking and other regulatory developments may impact the manner in which bitcoin is treated. In particular, although the Interpretive Release classified bitcoin as a digital commodity and not a security under U.S. federal securities laws, bitcoin may nonetheless in the future be classified by the CFTC as a “commodity interest” under the CEA, or a court or a future SEC administration could conclude that bitcoin is a “security” under U.S. federal securities laws notwithstanding the Interpretive Release. The Sponsor, the Trustee and the Trust cannot be certain as to how future regulatory developments will impact the treatment of bitcoin under the law. In the face of such developments, the required registrations and compliance steps may result in extraordinary, nonrecurring expenses to the Trust. If the Trustee decides to terminate the Trust in response to the changed regulatory circumstances, the Trust may be dissolved or liquidated at a time that is disadvantageous to Shareholders.

 

To the extent that bitcoin is deemed to fall within the definition of a “commodity interest” under the CEA, the Trust, the Trustee and the Sponsor may be subject to additional regulation under the CEA and CFTC regulations. The Sponsor or the Trustee may be required to register as a commodity pool operator or commodity trading adviser with the CFTC and become a member of the National Futures Association (“NFA”) and may be subject to additional regulatory requirements with respect to the Trust, including disclosure and reporting requirements. These additional requirements may result in extraordinary, recurring and/or nonrecurring expenses of the Trust, thereby materially and adversely impacting the Shares. If the Sponsor or the Trustee determines not to comply with such additional regulatory and registration requirements, the Trustee will terminate the Trust. Any such termination could result in the liquidation of the Trust’s bitcoin at a time that is disadvantageous to Shareholders.

 

To the extent that bitcoin is deemed to fall within the definition of a security under U.S. federal securities laws, the Trust, the Trustee and the Sponsor may be subject to additional requirements under the Investment Company Act and the Sponsor or the Trustee may be required to register as an investment adviser under the Investment Advisers Act. Such additional registration may result in extraordinary, recurring and/or non-recurring expenses of the Trust, thereby materially and adversely impacting the Shares. If the Sponsor or the Trustee determines not to comply with such additional regulatory and registration requirements, the Trustee will terminate the Trust. Any such termination could result in the liquidation of the Trust’s bitcoin at a time that is disadvantageous to Shareholders.

 

 

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

 

a) None.

 

b) Not applicable.

 

c) 153,120,000 Shares (3,828 Baskets) were redeemed during the quarter ended March 31, 2026.

 

Period

 

Total Number of Shares
Redeemed

   

Average Price
Paid Per Share

 

01/01/26 to 01/31/26

    60,800,000     $  50.2087  

02/01/26 to 02/28/26

    61,800,000       38.7436  

03/01/26 to 03/31/26

    30,520,000       39.3162  

Total

    153,120,000     $  43.4102  

 

 

Item 3. Defaults Upon Senior Securities

 

None.

 

 

Item 4. Mine Safety Disclosures.

 

Not applicable.

 

 

 

Item 5. Other Information.

 

Section 13(r) Disclosure

 

Pursuant to Section 219 of the Iran Threat Reduction and Syria Human Rights Act of 2012, which added Section 13(r) of the Exchange Act, the Trust hereby incorporates by reference herein Exhibit 99.1 of this report, which includes disclosures regarding activities at Malaysia Airport Holdings Berhad, in which certain funds and entities affiliated with Global Infrastructure Management, LLC, a consolidated subsidiary of BlackRock, Inc., obtained a minority non-controlling interest.

 

15

 

 

Item 6. Exhibits

 

Exhibit No.

 

Description

3.1

 

Certificate of Trust of iShares Bitcoin Trust incorporated by reference to Exhibit 3.1 of the Registration Statement on Form S-1 (File No. 333-272680) filed by the Registrant on June 15, 2023

     

3.2

 

Certificate of Amendment to Certificate of Trust of iShares Bitcoin Trust incorporated by reference to Exhibit 3.2 of the Registration Statement on Form S-1/A (File No. 333-272680) filed by the Registrant on October 19, 2023

     

3.3

 

Certificate of Amendment to Certificate of Trust of iShares Bitcoin Trust incorporated by reference to Exhibit 3.3 of Form 10-Q (File No. 001-41914) filed by the Registrant on August 8, 2024

     

4.1

 

Third Amended and Restated Trust Agreement incorporated by reference to Exhibit 4.1 of the Pre-Effective Amendment No. 2 to Post‑Effective Amendment No. 2 to the Registration Statement on Form S-1 on Form S-3 (File No. 333-272680) filed by the Registrant on July 2, 2025

     

4.2

 

Form of Authorized Participant Agreement incorporated by reference to Exhibit 4.2 of the Pre-Effective Amendment No. 1 to Post-Effective Amendment No. 2 to the Registration Statement on Form S-1 on Form S-3 (File No. 333-272680) filed by the Registrant on May 9, 2025

     

10.1

 

Third Amended and Restated Coinbase Prime Broker Agreement incorporated by reference to Exhibit 10.1 of Form 10-Q (File No. 001‑41914) filed by the Registrant on August 8, 2024

     

10.2

 

Coinbase Custody Custodial Services Agreement (included as Exhibit A in Exhibit 10.1) incorporated by reference to Exhibit 10.2 of Form 10-Q (File No. 001-41914) filed by the Registrant on August 8, 2024

     

10.3

 

Coinbase Committed Trade Financing Agreement (included as Exhibit D in Exhibit 10.1) incorporated by reference to Exhibit 10.3 of Form 10-Q (File No. 001-41914) filed by the Registrant on August 8, 2024

     

10.4

 

Services Agreement with The Bank of New York Mellon, as cash custodian and trust administrator incorporated by reference to Exhibit 10.4 of the Registration Statement on Form S-1/A (File No. 333-272680) filed by the Registrant on December 29, 2023

     

10.5

 

ETF Services Agreement with BRIL incorporated by reference to Exhibit 10.4 of the Registration Statement on Form S-1/A (File No. 333‑272680) filed by the Registrant on October 19, 2023

     

10.6

 

Amendment to the Third Amended and Restated Coinbase Prime Broker Agreement incorporated by reference to Exhibit 10.1 of Form of 8-K (File No. 001-41914) filed by the Registrant on September 19, 2024

     

10.7

 

Master Custody Service Agreement with Anchorage Digital Bank N.A. incorporated by reference to Exhibit 10.1 of Form 8-K (File No. 001‑41914) filed by the Registrant on April 8, 2025

     

31.1*

 

Certification by Principal Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

     

31.2*

 

Certification by Principal Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

     

32.1*

 

Certification by Principal Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes‑Oxley Act of 2002

     

32.2*

 

Certification by Principal Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes‑Oxley Act of 2002

     

99.1*

 

Section 13(r) Disclosure

     

101.INS*

 

Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.

     

101.SCH*

 

Inline XBRL Taxonomy Extension Schema Document

     

101.CAL*

 

Inline XBRL Taxonomy Extension Calculation Linkbase Document

     

101.DEF*

 

Inline XBRL Taxonomy Extension Definition Linkbase Document

     

101.LAB*

 

Inline XBRL Taxonomy Extension Label Linkbase Document

     

101.PRE*

 

Inline XBRL Taxonomy Extension Presentation Linkbase Document

     

104

 

Cover Page Interactive Data File included as Exhibit 101 (embedded within the Inline XBRL document)

  


*    Filed herewith

 

16

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned in the capacities* indicated thereunto duly authorized.

 

iShares Delaware Trust Sponsor LLC,
Sponsor of the iShares Bitcoin Trust ETF (registrant)

 

/s/ Jay Jacobs

Jay Jacobs
Director, President and Chief Executive Officer
(Principal executive officer)

 

Date: May 7, 2026

 

 

/s/ Bryan Bowers

Bryan Bowers
Director and Chief Financial Officer
(Principal financial and accounting officer)

 

Date: May 7, 2026

  


*    The registrant is a trust and the persons are signing in their respective capacities as officers of iShares Delaware Trust Sponsor LLC, the Sponsor of the registrant.

 

 

17

FAQ

How did iShares Bitcoin Trust ETF (IBIT) perform in Q1 2026?

The trust’s net asset value fell as bitcoin declined. Net assets dropped from $67.4 billion to $53.4 billion, and NAV per share decreased from $49.61 to $38.62, resulting in a total return at NAV of (22.15)% for the quarter.

How much bitcoin does iShares Bitcoin Trust ETF (IBIT) hold?

At March 31, 2026, the trust held 783,744 bitcoin. The cost basis was $65.59 billion, while the fair value was $53.40 billion, reflecting unrealized losses due to the quarter’s bitcoin price decline from $87,463.03 to $68,129.64.

What were the main drivers of IBIT’s Q1 2026 net asset decline?

The decline was driven primarily by bitcoin’s price drop. The trust recorded an unrealized loss on bitcoin of $14.92 billion and total net realized and unrealized losses of $15.09 billion, plus a net investment loss of $36.69 million from sponsor fees.

What fees does the iShares Bitcoin Trust ETF (IBIT) charge investors?

The only ordinary expense is the sponsor’s fee. For the three months ended March 31, 2026, the sponsor’s fee was $36.69 million, corresponding to a total expense ratio of 0.25% of average net assets. No fee waivers were applied during this quarter.

Did IBIT experience net creations or redemptions in Q1 2026?

The trust saw modest net inflows. It issued 176,920,000 shares and redeemed 153,120,000, leading to a net increase of 23,800,000 shares. Contributions for shares issued were $7.76 billion, while distributions for redeeming shares totaled $6.65 billion.

What recent SEC guidance about bitcoin does the IBIT filing discuss?

The filing describes a March 17, 2026 SEC interpretive release stating that, based on current understanding, bitcoin is a “digital commodity” and not itself a security. However, it notes that future courts, regulators, or legislation could still treat bitcoin differently.

What are key regulatory risks highlighted for iShares Bitcoin Trust ETF (IBIT)?

The trust warns that if bitcoin were later deemed a security or a commodity interest requiring extra regulation, it could face extraordinary expenses or even forced liquidation. Additional registrations under securities or commodities laws could materially and adversely impact the shares.