GBTC Net Assets Surge to $20.2B Amid Bitcoin Gains

TL;DR

**GBTC is a strong buy as Bitcoin's rally fuels massive asset growth, despite ongoing share redemptions.**

AI Summary

Grayscale Bitcoin Trust ETF (GBTC) reported a significant increase in net assets from operations, reaching $3.68 billion for the nine months ended September 30, 2025, up from $9.55 billion in the same period of 2024. The Trust's investment in Bitcoin, at fair value, increased to $20.20 billion as of September 30, 2025, from $19.18 billion at December 31, 2024. Despite a net investment loss of $216.24 million for the nine months ended September 30, 2025, due to Sponsor's Fees, net realized and unrealized gains on investment totaled $3.89 billion. The Principal Market NAV per Share rose to $89.73 as of September 30, 2025, from $74.08 at December 31, 2024. However, the number of Shares outstanding decreased to 225,110,100 from 258,950,100, reflecting net redemptions of 33,840,000 shares during the nine-month period. The Trust also engaged Anchorage Digital Bank N.A. as an additional custodian on August 8, 2025, diversifying its custody arrangements beyond Coinbase.

Why It Matters

This report highlights GBTC's continued growth in net assets, driven by Bitcoin's price appreciation, which is crucial for investors seeking exposure to the cryptocurrency market through a regulated ETF. The increase in NAV per share to $89.73 signals strong performance, potentially attracting more institutional and retail investors. The diversification of custodians with Anchorage Digital Bank N.A. on August 8, 2025, enhances security and reduces single-point-of-failure risk, a key competitive differentiator in the crypto ETF space. For the broader market, GBTC's performance can influence sentiment around other crypto-backed financial products and the overall digital asset ecosystem.

Risk Assessment

Risk Level: medium — The Trust's value is entirely dependent on the price of Bitcoin, which is highly volatile, as evidenced by the significant net change in unrealized appreciation on investment in Bitcoin, which was a gain of $1.05 billion in the nine months ended September 30, 2025, compared to a loss of $8.16 billion in the same period of 2024. Additionally, the Trust experienced net redemptions of 33,840,000 shares during the nine months ended September 30, 2025, indicating potential investor outflows.

Analyst Insight

Investors should consider GBTC for long-term exposure to Bitcoin, acknowledging its inherent volatility. Given the positive net increase in net assets and rising NAV per share, current holders might consider holding, while new investors could look for entry points during market dips.

Financial Highlights

debt To Equity

0.0

revenue

$0

operating Margin

N/A

total Assets

$20.20B

total Debt

$0

net Income

$3.68B

eps

N/A

gross Margin

N/A

cash Position

$0

revenue Growth

N/A

Key Numbers

• $20.20B — Investment in Bitcoin, at fair value (Increased from $19.18 billion at December 31, 2024)
• $89.73 — Principal Market NAV per Share (Increased from $74.08 at December 31, 2024)
• $3.68B — Net increase in net assets from operations (For the nine months ended September 30, 2025, compared to $9.55 billion in 2024)
• 225,110,100 — Shares issued and outstanding (Decreased from 258,950,100 at December 31, 2024)
• $216.24M — Sponsor's Fee (For the nine months ended September 30, 2025)
• $1.05B — Net change in unrealized appreciation on investment in Bitcoin (For the nine months ended September 30, 2025)
• 176,564.29 — Quantity of Bitcoin held (As of September 30, 2025)
• 33,840,000 — Net decrease in Shares outstanding (For the nine months ended September 30, 2025)
• $2.66B — Net realized gain on investment in Bitcoin sold for redemption of Shares (For the nine months ended September 30, 2025)
• $183.10M — Net realized gain on investment in Bitcoin sold to pay expenses (For the nine months ended September 30, 2025)

Key Players & Entities

• Grayscale Bitcoin Trust ETF (company) — Registrant
• Grayscale Investments Sponsors, LLC (company) — Sole Sponsor of the Trust
• NYSE Arca, Inc. (company) — Exchange where GBTC shares are traded
• Coinbase, Inc. (company) — Prime Broker of the Trust
• Coinbase Custody Trust Company, LLC (company) — Custodian of the Trust's Bitcoin
• Anchorage Digital Bank N.A. (company) — Additional custodian engaged on August 8, 2025
• The Bank of New York Mellon (company) — Transfer Agent and Administrator for the Trust
• Digital Currency Group, Inc. (company) — Parent company of the Sponsor
• Grayscale Bitcoin Mini Trust ETF (company) — Recipient of Initial Distribution of Bitcoin
• Securities and Exchange Commission (regulator) — Approved 19b-4 application for NYSE Arca listing

FAQ

Risk Factors

• Bitcoin Price Volatility [high — market]: The Trust's net assets are primarily composed of Bitcoin. The fair value of Bitcoin can be highly volatile and subject to rapid and substantial declines. For the nine months ended September 30, 2025, the net change in unrealized appreciation on investment in Bitcoin was $1.05 billion, but this followed a net change in unrealized depreciation of $8.16 billion in the same period of 2024, highlighting significant price swings.
• Regulatory Uncertainty [high — regulatory]: The regulatory landscape for digital assets, including Bitcoin, is evolving and uncertain. Changes in regulations could impact the Trust's ability to operate, hold Bitcoin, or for investors to redeem shares. The SEC's stance and potential future regulations pose a significant risk.
• Custody and Security Risks [high — operational]: The Trust relies on custodians to hold its Bitcoin. While the Trust diversified custodians by adding Anchorage Digital Bank N.A. on August 8, 2025, alongside Coinbase, any failure of these custodians to safeguard the Bitcoin could result in a loss of assets. The Trust held $20.20 billion in Bitcoin as of September 30, 2025.
• Redemption Activity and NAV Discount/Premium [medium — financial]: The Trust experienced net redemptions of 33,840,000 shares during the nine months ended September 30, 2025, leading to a decrease in shares outstanding from 258,950,100 to 225,110,100. While the Principal Market NAV per Share increased to $89.73, the market price of the Trust's shares can trade at a discount or premium to its NAV, impacting investor returns.
• Sponsor's Fees [medium — financial]: The Sponsor's Fee is a significant expense. For the nine months ended September 30, 2025, the Sponsor's Fee amounted to $216.24 million. While this is a necessary cost of operations, it directly reduces the net assets available to shareholders.

Industry Context

The digital asset investment landscape continues to mature, with increasing institutional interest in regulated products like Bitcoin ETFs. Competition is intensifying as more entities seek to offer exposure to cryptocurrencies. Regulatory clarity remains a key factor influencing broader adoption and product development within the industry.

Regulatory Implications

The evolving regulatory environment for digital assets presents ongoing risks. Uncertainty surrounding SEC actions and potential new legislation could impact the Trust's operations, Bitcoin custody, and the ability for investors to redeem shares, requiring continuous monitoring and compliance efforts.

What Investors Should Do

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Key Dates

• 2025-08-08: Addition of Anchorage Digital Bank N.A. as an additional custodian — Diversifies custody arrangements, potentially enhancing security and reducing single-point-of-failure risk for the Trust's Bitcoin holdings.
• 2025-09-30: End of the nine-month reporting period — Key date for financial reporting, showing a net increase in net assets from operations of $3.68 billion and total assets of $20.20 billion.
• 2024-12-31: Previous year-end reporting date — Provides a baseline for comparison, showing total assets of $19.18 billion and 258,950,100 shares outstanding.
• 2024-07-31: Initial Distribution of Bitcoin to Grayscale Bitcoin Mini Trust ETF — A one-time event impacting prior period results, representing a return of capital.

Glossary

Principal Market NAV per Share

The Net Asset Value (NAV) per share calculated based on the price of Bitcoin in its primary trading market. (Indicates the per-share value of the Trust's underlying Bitcoin holdings, crucial for assessing potential investment value.)

Net realized and unrealized gain on investment

The total profit or loss from Bitcoin holdings, including gains/losses from sales (realized) and changes in market value (unrealized). (Represents the overall performance of the Trust's Bitcoin investment portfolio.)

Sponsor's Fee

Fees paid to the sponsor of the Trust for managing the fund and its operations. (A direct expense that reduces the Trust's net assets and impacts overall returns for shareholders.)

Net increase in net assets resulting from operations

The total change in the Trust's net assets over a period, reflecting investment gains/losses and expenses. (Measures the overall profitability and growth of the Trust's assets.)

Net realized gain on investment in Bitcoin sold for redemption of Shares

Profit made from selling Bitcoin specifically to fulfill shareholder redemption requests. (Shows the financial impact of shareholders exiting their positions in the Trust.)

Net change in unrealized appreciation on investment in Bitcoin

The change in value of the Trust's Bitcoin holdings that have not yet been sold. (Reflects the market performance of the Trust's Bitcoin assets without actual sales.)

Year-Over-Year Comparison

For the nine months ended September 30, 2025, Grayscale Bitcoin Trust ETF reported a net increase in net assets from operations of $3.68 billion, a significant decrease compared to $9.55 billion in the same period of 2024. Total assets grew to $20.20 billion from $19.18 billion, while the number of outstanding shares decreased by 33.84 million due to net redemptions. The net change in unrealized appreciation on investment in Bitcoin was positive at $1.05 billion, a substantial improvement from a $8.16 billion unrealized depreciation in the prior year's period.

Filing Documents

• gbtc-20250930.htm (10-Q) — 1518KB
• gbtc-ex31_1.htm (EX-31.1) — 25KB
• gbtc-ex31_2.htm (EX-31.2) — 25KB
• gbtc-ex32_1.htm (EX-32.1) — 8KB
• gbtc-ex32_2.htm (EX-32.2) — 9KB
• img104982666_0.jpg (GRAPHIC) — 1125KB
• img104982666_1.jpg (GRAPHIC) — 763KB
• img104982666_2.jpg (GRAPHIC) — 513KB
• img104982666_3.jpg (GRAPHIC) — 624KB
• img104982666_4.jpg (GRAPHIC) — 529KB
• 0001193125-25-266861.txt ( ) — 13604KB
• gbtc-20250930.xsd (EX-101.SCH) — 553KB
• gbtc-20250930_htm.xml (XML) — 878KB

Forward-Looking Statements

Forward-Looking Statements 3 Industry and Market Data 3

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION Item 1.

Financial Statements (Unaudited)

Financial Statements (Unaudited) 4 Statements of Assets and Liabilities at September 30, 2025 and December 31, 2024 4 Schedules of Investment at September 30, 2025 and December 31, 2024 5 Statements of Operations for the Three and Nine Months Ended September 30, 2025 and 2024 6 Statements of Changes in Net Assets for the Three and Nine Months Ended September 30, 2025 and 2024 7 Statements of Cash Flows for the Nine Months Ended September 30, 2025 and 2024 8 Notes to the Unaudited Financial Statements 9 Item 2.

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

Management's Discussion and Analysis of Financial Condition and Results of Operations 20 Item 3.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 30 Item 4.

Controls and Procedures

Controls and Procedures 30

– OTHER INFORMATION

PART II – OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 31 Item 1A.

Risk Factors

Risk Factors 31 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 32 Item 3. Defaults Upon Senior Securities 33 Item 4. Mine Safety Disclosures 33 Item 5. Other Information 33 Item 6. Exhibits 34 GLOSSARY OF DEFINED TERMS 35

SIGNATURES

SIGNATURES 40 2

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS This Quarterly Report on Form 10-Q contains "forward-looking statements" with respect to the financial conditions, results of operations, plans, objectives, future performance and business of Grayscale Bitcoin Trust ETF (the "Trust"). Statements preceded by, followed by or that include words such as "may," "might," "will," "should," "expect," "plan," "anticipate," "believe," "estimate," "predict," "potential," or "continue," the negative of these terms and other similar expressions are intended to identify some of the forward-looking statements. All statements (other than statements of historical fact) included in this Quarterly Report that address activities, events or developments that will or may occur in the future, including such matters as changes in market prices and conditions, the Trust's operations, the plans of Grayscale Operating, LLC ("GSO"), the co-sponsor of the Trust from January 1, 2025 to May 3, 2025, and Grayscale Investments Sponsors, LLC ("GSIS"), the co-sponsor of the Trust from January 1, 2025 to May 3, 2025 and the sole remaining sponsor thereafter (each of GSO and GSIS, the "Sponsor", as the context may require, and GSO and GSIS, together, the "Co-Sponsors"), and references to the Trust's future success and other similar matters are forward-looking statements. These statements are only predictions. Actual events or results may differ materially from such statements. These statements are based upon certain assumptions and analyses the Sponsor made based on its perception of historical trends, current conditions and expected future developments, as well as other factors appropriate in the circumstances. Whether or not actual results and developments will conform to the Sponsor's expectations and predictions, however, is subject to a number of risks and uncertainties, including, but not limited to, those described in "Part I, Item 1A. Risk Factors" of our Annual Report on Form 10-K for the year ended December 31, 20

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION: Item1. Financial Statements (Unaudited) GRAYSCALE BITCOIN TRUST ETF STATEMENTS OF ASSETS AND LIABILITIES (UNAUDITED) (Amounts in thousands, except Share and per Share amounts) September 30, 2025 December 31, 2024 Assets: Investment in Bitcoin, at fair value (cost $ 2,913,223 and $ 2,941,518 as of September 30, 2025 and December 31, 2024, respectively) $ 20,199,306 $ 19,182,244 Total assets $ 20,199,306 $ 19,182,244 Liabilities: Sponsor's Fee payable, related party $ - $ - Total liabilities - - Net assets $ 20,199,306 $ 19,182,244 Shares issued and outstanding, no par value (unlimited Shares authorized) 225,110,100 258,950,100 Principal Market NAV per Share $ 89.73 $ 74.08 See accompanying notes to the unaudited financial statements. 4 GRAYSCALE BITCOIN TRUST ETF SCHEDULES OF INVESTMENT (UNAUDITED) (Amounts in thousands, except quantity of Bitcoin and percentages) September 30, 2025 Quantity of Bitcoin Cost Fair Value % of Net Assets Investment in Bitcoin 176,564.29142426 $ 2,913,223 $ 20,199,306 100 % Total Investment $ 2,913,223 $ 20,199,306 100 % Net assets $ 20,199,306 100 % December 31, 2024 Quantity of Bitcoin Cost Fair Value % of Net Assets Investment in Bitcoin 205,398.85921873 $ 2,941,518 $ 19,182,244 100 % Total Investment $ 2,941,518 $ 19,182,244 100 % Net assets $ 19,182,244 100 % See accompanying notes to the unaudited financial statements. 5 GRAYSCALE BITCOIN TRUST ETF STATEMENTS OF OPERATIONS (UNAUDITED) (Amounts in thousands) Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Investment income: Investment income $ - $ - $ - $ - Expenses: Sponsor's Fee, related party 77,959 55,761 216,235 222,644 Net investment loss ( 77,959 ) ( 55,761 )