Invesco Galaxy Bitcoin ETF Liquidation Value

Invesco Galaxy Bitcoin ETF (BTCO) is a Delaware statutory trust organized as a grantor trust under ASC 946. Its sole asset is bitcoin held at Coinbase Custody Trust Company, LLC. The trust has no operating liabilities of consequence beyond the accrued sponsor fee. Under a liquidation lens, the recovery posture is straightforward and positive: total assets of $457.3M consist entirely of bitcoin carried at fair value (Level 1), with liabilities of $98,605 representing only the accrued sponsor fee. Net assets (stockholders equity) are $457.2M. Applied recovery haircut on the bitcoin position would depend on the liquidator's ability to sell into the spot market; the filing asserts Level 1 pricing, but a forced liquidation of the entire bitcoin position in a compressed timeframe would incur market impact. No standard balance-sheet haircut categories apply here—there is no AR, inventory, PP&E, or intangibles. The sole asset is a mark-to-market commodity. The liability stack is negligible at $98,605. Recovery to equity at face value of the bitcoin position is therefore effectively $457.2M less any execution slippage on liquidation. Compared to the prior period (12/31/2025), trust assets declined materially: bitcoin fair value dropped from $544.4M to $457.3M, a reduction of $87.1M, driven by both net redemptions (205,000 shares redeemed in Q1 2026 versus 2.775M shares redeemed in Q1 2025) and bitcoin price depreciation of approximately 22.55% over the quarter per the Lukka Prime Benchmark. Net unrealized depreciation on the bitcoin portfolio was $(118.9M) for the quarter. Shares outstanding declined from approximately 6.24M at year-end 2025 to 6.74M at period end (noting the 10-Q shows 5.3M at 3/31/2025 and 6.74M at 3/31/2026 per XBRL; the balance sheet date shares are reflected in LimitedPartnersCapitalAccountUnitsOutstanding at 6.74M). The trust carries zero cash, zero debt, no leases, no pension obligations, and no off-balance-sheet arrangements. The only liability that survives winding up at face value is the accrued sponsor fee of $98,605, which is de minimis relative to total assets. The filing does not separately XBRL-tag the cost basis of bitcoin holdings in a standalone line, but InvestmentOwnedAtCost of $362.7M versus fair value of $457.3M implies gross unrealized appreciation of $94.6M in the remaining portfolio at period end.