Tidal Commodities Trust I Reports 33% Increase in Net Assets and Positive Profitability Shift

Tidal Commodities Trust I has reported its financial results for the six months ending June 30, 2025, revealing a significant increase in net assets and a positive shift in profitability compared to the previous fiscal period. The trust's total net assets reached $14.63 million, a 33% increase from $10.95 million in the same period last year. The net asset value (NAV) per share also saw a substantial rise, climbing to $121.88 from $68.43, reflecting a 78% increase. This growth is attributed to a notable appreciation in Bitcoin prices, which surged from approximately $59,874 to $107,677 during the reporting period.

The trust's income for the six months ended June 30, 2025, totaled $2.28 million, a decrease from $5.90 million in the same period of 2024. This decline was primarily due to a realized loss on cryptocurrency futures contracts, which amounted to $4,173, compared to a realized gain of $7.55 million in the prior year. However, the trust reported a net income of $2.25 million for the first half of 2025, a significant recovery from a net loss of $2.02 million in the same period last year. The overall performance was bolstered by a net change in unrealized appreciation on investments, which totaled $1.20 million.

Operationally, Tidal Commodities Trust I has undergone strategic changes, including a shift in its investment strategy to focus on spot Bitcoin holdings. Following the merger with the Hashdex Bitcoin Futures ETF in January 2024, the trust has aimed to maintain at least 95% of its assets in physical Bitcoin, with the remaining 5% allocated to Bitcoin futures contracts. This strategic pivot has resulted in a more stable investment profile, as evidenced by the increase in Bitcoin holdings to 13,487 units valued at $14.52 million as of June 30, 2025.

The trust's management fees have also been adjusted, decreasing from 0.90% to 0.25% per annum of daily NAV effective February 10, 2025. This reduction in fees, alongside a decrease in total expenses from $85,165 to $29,227, has contributed to improved profitability. The trust's average daily total net assets for the quarter were reported at $14.63 million, with a total expense ratio of 0.25%, down from 0.90% in the previous year.

Looking ahead, Tidal Commodities Trust I remains optimistic about its future performance, driven by the ongoing adoption of Bitcoin and favorable market conditions. The management anticipates that the trust's focus on spot Bitcoin will enhance its competitive position in the cryptocurrency market, potentially leading to further growth in net assets and shareholder value. The trust's commitment to transparency and effective management practices will be crucial as it navigates the evolving landscape of digital assets.