GRAYSCALE FUNDS TRUST NOTES TO FINANCIAL STATEMENTS December 31, 2025 (Continued)
When the Fund purchases an option, the premium paid by it is recorded as an asset of the Fund. When the Fund writes an option, an amount equal to the net premium (the premium less the commission) received by the Fund is included in the liability section of the Fund’s statement of assets and liabilities as a deferred credit. The amount of this asset or deferred credit will be subsequently marked-to-market to reflect the current value of the option purchased or written. The current value of the traded option is the last sale price or, in the absence of a sale, the current bid price. If an option purchased by the Fund expires unexercised, the Fund realizes a loss equal to the premium paid. The Bitcoin Covered Call ETF, Bitcoin Premium Income ETF, and Ethereum Covered Call ETF invest in traditional exchange-traded and FLEX options contracts. The following tables represent a summary of derivative instruments as of and for the period ended December 31, 2025: Bitcoin Covered Call ETF Statement of Assets and Liabilities - Values of Derivative Instruments as of December 31, 2025
Asset Derivatives
Liability Derivatives
Derivatives not Accounted for as Hedging Instruments
Location
Value
Location
Value
Equity Options Contracts . . . . . . . . . . . . . Investments, at value $294,789 The effect of Derivative Instruments on the Statement of Operations for the period ended December 31, 2025 is as follows: $4,322,872 Written equity option contracts, at value
Change in Unrealized Appreciation on Derivatives Recognized in Income
Amount of Realized Gain on Derivatives Recognized in Income
Derivatives not Accounted for as Hedging Instruments
Derivatives
Purchased Equity Options Contracts. . . . .
Purchased Equity Options Contracts
$(8,481,242)
$494,291
Written Equity Options Contracts. . . . . . .
Written Equity Options Contracts
$ 870,268 $ 92,621 The average monthly values of purchased and written equity options during the period ended December 31, 2025 in the Bitcoin Covered Call ETF were $4,393,568 and $(645,402), respectively. Bitcoin Premium Income ETF Statement of Assets and Liabilities - Values of Derivative Instruments as of December 31, 2025
Asset Derivatives
Liability Derivatives
Derivatives not Accounted for as Hedging Instruments
Location
Value
Location
Value
Equity Options Contracts . . . . . . . . . . . . .
Investments, at value
Written equity option contracts, at value
$461,550 $21,229 The effect of Derivative Instruments on the Statement of Operations for the period ended December 31, 2025 is as follows:
Change in Unrealized Appreciation on Derivatives Recognized in Income
Amount of Realized Gain on Derivatives Recognized in Income
Derivatives not Accounted for as Hedging Instruments
Derivatives
Purchased Equity Options Contracts. . . . .
Purchased Equity Options Contracts
$(805,026)
$55,275
Written Equity Options Contracts. . . . . . .
Written Equity Options Contracts
$ 88,114
$12,536
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