Tidal Commodities Trust I Reports $1.7 Million Net Loss in Q1 2025

Tidal Commodities Trust I has reported its financial results for the first quarter of 2025, revealing a significant decline in profitability compared to the same period in 2024. The Trust recorded a net loss of $1.7 million for the three months ended March 31, 2025, a stark contrast to a net income of $7.9 million in the prior year. This downturn is attributed primarily to a realized and unrealized loss on investments totaling $1.7 million, compared to a gain of $7.6 million in the previous year. The Trust's total income for the quarter was reported at a loss of $1.7 million, down from $8 million in the same quarter last year.

The Trust's total assets decreased to $13.1 million as of March 31, 2025, from $14.9 million at the end of 2024. This decline was driven by a reduction in cash and cash equivalents, which fell to $724 from $29,680, and a decrease in the value of investments in cryptocurrency, specifically Bitcoin, which was valued at $13 million compared to $14.7 million at the end of the previous year. The net asset value per share also dropped to $93.62 from $106.00, reflecting a decrease of 11.68% in total return for the quarter.

Strategically, Tidal Commodities Trust I underwent a significant transformation with the merger of the Hashdex Bitcoin Futures ETF into the Trust on January 3, 2024. This merger allowed the Trust to shift its investment strategy to include spot Bitcoin holdings, with a policy to invest at least 95% of its assets in physical Bitcoin. The Fund's name was changed to Hashdex Bitcoin ETF, and it now tracks the Nasdaq Bitcoin Reference Price - Settlement (NQBTCS). This strategic pivot aims to enhance the Fund's alignment with the evolving cryptocurrency market.

Operationally, the Trust maintained a consistent share count of 140,000 shares outstanding. However, the average daily total net assets decreased to approximately $14.8 million from $18.1 million year-over-year. The management fee paid to the Sponsor was reduced from 0.90% to 0.25% per annum of the daily net assets effective February 10, 2025, which contributed to a decrease in total expenses from $58,529 in Q1 2024 to $20,385 in Q1 2025. The Trust's management continues to monitor market conditions and adjust its strategies accordingly, with a focus on maximizing returns through its new investment approach.

Looking ahead, Tidal Commodities Trust I remains cautiously optimistic about the cryptocurrency market, particularly Bitcoin, which has shown price appreciation from $69,487.25 to $82,520.96 between March 29, 2024, and March 31, 2025. The Trust's management is committed to navigating the challenges of the market while leveraging its new investment strategy to enhance shareholder value. However, they acknowledge the inherent risks associated with cryptocurrency investments, including market volatility and regulatory changes, which could impact future performance.