Bitcoin Tracker Fund (the “Fund”) - Dominion Capital Strategies Funds PCC Limited
Question: What is Bitcoin?
Answer: Bitcoin is a digital asset that is created and transmitted through the operations of the peer-to-peer Bitcoin network, a decentralized network of computers that operates on cryptographic protocols. No single entity owns or operates the Bitcoin network, the infrastructure of which is collectively maintained by its user base. The Bitcoin network allows people to exchange tokens of value, called Bitcoin, which are recorded on a public transaction ledger known as the Bitcoin blockchain. Bitcoin can be used to pay for goods and services, or it can be converted to fiat currencies, such as the U.S. dollar, at rates determined on Bitcoin platforms that enable trading in Bitcoin or in individual end-user-to-end-user transactions under a barter system.
Question: How is Bitcoin created?
Answer: New Bitcoins are created through the mining process as discussed below. The Bitcoin network is kept running by computers all over the world. In order to incentivise those who incur the computational costs of securing the network by validating transactions, there is a reward that is given to the computer that was able to create the latest block on the chain. Every 10 minutes, on average, a new block is added to the Bitcoin blockchain with the latest transactions processed by the network, and the computer that generated this block is currently awarded 6.25 Bitcoin. Due to the nature of the algorithm for block generation, this process (generating a “proof-of-work”) is random. Over time, rewards are expected to be proportionate to the computational power of each machine.
The process by which Bitcoin is “mined” results in new blocks being added to the Bitcoin blockchain and new Bitcoin tokens being issued to the miners. Computers on the Bitcoin network engage in a set of prescribed complex mathematical calculations in order to add a block to the Bitcoin blockchain and thereby confirm Bitcoin transactions included in that block’s data.
Question: Is the supply of Bitcoin unlimited?
Answer: No. Under the source code that governs the Bitcoin network, the supply of new Bitcoin is mathematically controlled so that the number of Bitcoin grows at a limited rate pursuant to a pre-set schedule. The number of Bitcoin awarded for solving a new block is automatically halved after every 210,000 blocks are added to the Bitcoin blockchain, approximately every four years. Currently, the fixed reward for solving a new block is 3.125 Bitcoin. This deliberately controlled rate of Bitcoin creation means that the number of Bitcoin in existence will increase at a controlled rate until the number of Bitcoin in existence reaches the pre-determined 21 million Bitcoin. As of August 2025, approximately 19.9 million Bitcoins were outstanding and the date when the 21 million Bitcoin limitation will be reached is estimated to be the year 2140.
Question: Is an investment in Bitcoin (and other digital assets) considered high risk?
Answer: Yes. The trading prices of many digital assets, including Bitcoin, have experienced extreme volatility in recent periods, and may continue to do so. The average one-year trailing volatility of Bitcoin over the past ten years to date remains elevated at 86%. Over the course of 2021, there were steep increases in the value of certain digital assets, including Bitcoin and multiple market observers asserted that digital assets were experiencing a “bubble.” These increases were followed by steep drawdowns throughout 2022 in digital asset trading prices, including for Bitcoin. In the 2021-2022 cycle, the price of Bitcoin peaked at $67,734 and bottomed at $15,632, marking a steep 77% drawdown.
These episodes of rapid price appreciation followed by steep drawdowns have occurred multiple times throughout Bitcoin’s history, including in 2011,2013-2014, and 2017-2018, before repeating again in 2021-2022. As of August 2025, the price of Bitcoin stands at circa $115,000, following a period of strong appreciation throughout 2025.
Question: Will the Fund hold Bitcoin directly?
Answer: No. The Fund will invest significantly all of its assets in an exchange-traded fund called BlackRock iSharesâ Bitcoin Trust ETF [1] (the “Bitcoin ETF”). The sponsor of the Bitcoin ETF is iShares Delaware Trust Sponsor LLC (the “Sponsor”), a Delaware limited liability company and an indirect subsidiary of BlackRock, Inc.(“BlackRock”).
BlackRock Inc. is listed on the New York Stock Exchange (ticker “BLK”). As of 2024, the BlackRock Group had in excess of US$11 trillion of assets under management.
Question: Does BlackRock in any way guarantee the performance of the Bitcoin ETF?
Answer: No. The shares in the Bitcoin ETF are not obligations of, and are not guaranteed by, iShares Delaware Trust Sponsor LLC, or any of its subsidiaries or affiliates (including an entities in the BlackRock group of companies).
The performance of the Bitcoin ETF will closely track the performance of Bitcoin itself, given that the purpose of the Bitcoin ETF is to buy, hold and sell Bitcoin. If the value of Bitcoin rises or falls significantly, then the performance of the Bitcoin ETF would be expected to move in similar ways.
Question: Why does the Fund not simply invest in Bitcoin directly itself?
Answer: The Fund’s investment manager (Dominion Capital Strategies Fund Management Limited) believes that, as one of the largest and most accomplished asset managers in the world, BlackRock is better suited to research and monitor the performance of Bitcoin than it is. The Fund will rely heavily on the investment expertise, and deep teams of investment professionals, within BlackRock to determine the optimal time(s) at which Bitcoin should be purchased, held and, ultimately, sold.
The Bitcoin ETF (and, by extension, the Fund) seeks to reflect generally the performance of the price of Bitcoin. The Bitcoin ETF seeks to reflect such performance before payment of its expenses and liabilities. The shares in the Bitcoin ETF are intended to constitute a simple means of making an investment similar to an investment in Bitcoin rather than by acquiring, holding and trading Bitcoin directly on a peer-to-peer or other basis or via a digital asset platform.
Question: Should I invest in the Fund as a way to speculate Bitcoin and seek to make short term gains?
Answer: Definitely not. The Fund should not be used a tool for speculating on the price of Bitcoin, and seeking to take advantage of short-term market volatility. An investor should consider an investment in the Fund as part of a balanced portfolio, and not allocate more to the Fund that he/she can afford to lose.
Further, given that the period for successfully applying for an investment in the Fund can take up to seven (7) days: (i) an investment in the Fund should not be used for the purposes of speculation, or seeking to generate short term gains; and (ii) the price of physical Bitcoin could move materially (up or down) during the processing period of an investment application.
As part of applying for shares in the Fund, potential investors will be required to acknowledge that they are not investing for the purposes of speculation, and that they agree to release and hold harmless each of the Fund, the investment manager, and their respective directors, for any price movements that may occur while the application in the Fund is being processed
In light of the risky nature of an investment in Bitcoin, investors in the Fund will also be required to confirm that they can afford to lose their entire investment in the Fund.
IMPORTANT NOTE FOR POTENTIAL INVESTORS: IF YOU CANNOT AFFORD TO LOSE YOUR ENTIRE INVESTMENT IN THE FUND, THEN YOU SHOULD NOT MAKE AN INVESTMENT IN THE FUND.
Question: What are some of the other risks related to an investment in Bitcoin (and the Fund)?
Answer: There are a number of important risks to be considered when an investor contemplates an investment in Bitcoin (and the Fund). Digital assets, including Bitcoin, are subject to extreme volatility, and the market price of Bitcoin can be affected by a range of factors including, but not limited to, the following:
an increase in the global Bitcoin supply or a decrease in global Bitcoin demand;
market conditions of, and overall sentiment towards, the digital assets and blockchain technology industry;
trading activity on digital asset platforms, which, in many cases, are largely unregulated or may be subject to manipulation;
the adoption of Bitcoin as a medium of exchange, store-of-value or other consumptive asset and the maintenance and development of the open-source software protocol of the Bitcoin network, and their ability to meet user demands;
manipulative trading activity on digital asset platforms, which, in many cases, are largely unregulated;
forks in the Bitcoin network;
investors’ expectations with respect to interest rates, the rates of inflation of fiat currencies or Bitcoin, and digital asset exchange rates;
consumer preferences and perceptions of Bitcoin specifically and digital assets generally;
negative events, publicity, and social media coverage relating to the digital assets and blockchain technology industry;
fiat currency withdrawal and deposit policies on digital asset platforms;
the liquidity of digital asset markets and any increase or decrease in trading volume or market making on digital asset markets;
business failures, bankruptcies, hacking, fraud, crime, government investigations, or other negative developments affecting digital asset businesses, including digital asset platforms, or banks or other financial institutions and service providers which provide services to the digital assets industry;
the use of leverage in digital asset markets, including the unwinding of positions, “margin calls”, collateral liquidations and similar events;
investment and trading activities of large or active consumer and institutional users, speculators, miners, and investors in Bitcoin;
an active derivatives market for Bitcoin or for digital assets generally;
monetary policies of governments, legislation or regulation, trade restrictions, currency devaluations and revaluations and regulatory measures or enforcement actions, if any, that restrict the use of Bitcoin as a form of payment or the purchase of Bitcoin on the digital asset markets;
global or regional political, economic or financial conditions, events and situations, or major public issues, such as the novel coronavirus (“COVID-19”);
fees associated with processing a Bitcoin transaction and the speed at which Bitcoin transactions are settled;
the maintenance, troubleshooting, and development of the Bitcoin network including by miners and developers worldwide;
the ability for the Bitcoin network to attract and retain miners to secure and confirm transactions accurately and efficiently;
ongoing technological viability and security of the Bitcoin network and Bitcoin transactions, including vulnerabilities against hacks and scalability;
financial strength of market participants;
the availability and cost of funding and capital;
the liquidity and credit risk of digital asset platforms;
interruptions in service from or closures or failures of major digital asset platforms or their banking partners, or outages or system failures affecting the Bitcoin network;
decreased confidence in digital assets and digital assets platforms;
poor risk management or fraud by entities in the digital assets ecosystem;
increased competition from other forms of digital assets or payment services; and
the Bitcoin ETF’s own acquisitions or dispositions of Bitcoin, since there is no limit on the number of Bitcoin that it may acquire, and the ETF sponsor is an affiliate of BlackRock, which is a prominent participant in financial markets.
The Fund’s Offering Memorandum contains an extensive (but not exhaustive) summary of the risks associated with investing in Bitcoin, as well as risks related to the Bitcoin ETF, and the Fund.
As part of making an investment in the Fund, investors will be required to acknowledge and agree that they have read and understood these risks, and wish to proceed with an investment notwithstanding. As noted above, investors will also be required to confirm that they have also read and understood these Q&As, as well as giving a separate confirmation that they are able to sustain a complete loss of their investment in the Fund (if, for example, the Bitcoin ETF suffers a complete failure and write-down of its Bitcoin holding to zero).
Question: Is an investment in the Fund for everyone?
Answer: No. The investment manager expects that typical investors in the Fund would be sophisticated, experienced investors, with a balanced portfolio, who have a clear understanding of risk/return principles. If this is not you, then an investment in the Fund may not be for you.
Accordingly, the Fund’s Net Asset Value may be more volatile than another investment vehicle with a more broadly diversified portfolio, and may fluctuate substantially over short or long periods of time. Fluctuations in the price of Bitcoin are expected to have a direct impact on the value of the shares in the Fund. That said, because of the product costs of each of the Bitcoin ETF and the Fund, the Fund’s Net Asset Value will not move directly in line with the price movements of Bitcoin.
An investment in the Fund may be deemed speculative and is not intended as a complete investment program. An investment in shares in the Fund should be considered only by persons financially able to maintain their investment and who can bear the risk of total loss associated with an investment in the Fund. Potential investors should review closely the objective and strategy of the Bitcoin ETF, and familiarise themselves with the risks associated with the Fund’s investment in the Bitcoin ETF.
Prior to making an investment in the Fund, and in accordance with the requirements of the Guernsey Financial Services Commission (the regulator of the Fund), potential investors will be required to confirm to the Fund that: (i) they have received the necessary professional advice concerning an investment in a digital asset-backed product; and (ii) they are not investing more than they can afford to lose.
[1] “iShares” is a registered trademark of BlackRock, Inc. or its affiliates.