GRAYSCALE FUNDS TRUST NOTES TO FINANCIAL STATEMENTS December 31, 2025 (Continued)
The average monthly values of purchased and written equity options during the period ended December 31, 2025 in the Bitcoin Premium Income ETF were $889,795 and $(69,726), respectively. Ethereum 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 $55,300 The effect of Derivative Instruments on the Statement of Operations for the period ended December 31, 2025 is as follows: $1,192,900 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
$(2,925,000)
$305,313
Written Equity Options Contracts. . . . . . .
Written Equity Options Contracts
$ 571,046 $ 87,273 The average monthly values of purchased and written equity options during the period ended December 31, 2025 in the Ethereum Covered Call ETF were $1,082,588 and $(328,251), respectively. NOTE 3 – COMMITMENTS AND OTHER RELATED PARTY TRANSACTIONS Grayscale Advisors, LLC (the “Adviser”), serves as the investment adviser to the Funds. Pursuant to an Investment Advisory Agreement (“Advisory Agreement”) between the Trust, on behalf of the Funds, and the Adviser, the Adviser provides investment advice to the Funds and oversees the day-to-day operations of the Funds, subject to the direction and control of the Board and the officers of the Trust. Under the Advisory Agreement, the Adviser is also responsible for arranging, in consultation with Vident Asset Management (the “Sub-Adviser”), transfer agency, custody, fund administration and accounting, and all other non-distribution related services necessary for the Funds to operate. Under the Advisory Agreement, the Adviser has agreed to pay all expenses of the Funds, except for: the fee paid to the Adviser pursuant to the Advisory Agreement, interest charges on any borrowings, taxes, brokerage commissions and other expenses incurred in placing orders for the purchase and sale of securities and other investment instruments, acquired fund fees and expenses, accrued deferred tax liability, litigation and litigation-related indemnification expenses, distribution fees and expenses paid by the Fund under any distribution plan adopted pursuant to Rule 12b-1 under the 1940 Act, compensation payable to a party not affiliated with the Adviser in connection with the recovery of tax reclaims, and other extraordinary or non-routine expenses. For services provided to the Funds, each Fund pays the Adviser a unified management fee, which is calculated daily and paid monthly, at an annual rate of 0.59% for the Bitcoin Adopters ETF, 0.65% for the Bitcoin Covered Call ETF, 0.65% for the Bitcoin Premium Income ETF, 0.59% for the Bitcoin Miners ETF, and 0.65% for the Ethereum Covered Call ETF based on each Fund’s average daily net assets. There is no specific fee related to the management of the Cayman Subsidiaries. The Adviser is responsible for paying the Sub-Adviser. U.S. Bancorp Fund Services, LLC, doing business as U.S. Bank Global Fund Services (“Fund Services” or “Administrator”), acts as the Funds’ Administrator and, in that capacity, performs various administrative and accounting services for the Funds. The Administrator prepares various federal and state regulatory filings, reports and returns for the Funds, including regulatory compliance monitoring and financial reporting; prepares reports and materials to be supplied to the Board; monitors the activities of the Funds’ Custodian, transfer agent and fund accountant. Fund Services also serves as the transfer agent and fund accountant to the Funds. U.S. Bank N.A. (the “Custodian” and “Securities Lending Agent”), an affiliate of Fund Services, serves as the Funds’ Custodian. A trustee and all officers are affiliated with the Adviser.
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