BITCOIN Bloomberg: XBTFUND CUSIP: 09173T108 ISIN: US09173T1088 Ticker: GBTC* INVESTMENT TRUST TM www.bitcointrust.co | (212) 668-3911 | [email protected] Fund Description Performance (as of 3/16/2015) PERFORMANCE The Bitcoin Investment Trust (BIT) is a private, open-ended trust that is invested exclusively in bitcoin and derives its value solely from the price of bitcoin. Modeled on the popular SPDR Gold ETF, but functionally similar to a private fund, the BIT was created for sophisticated investors looking for exposure to bitcoin through a titled investment vehicle. 140.0% 120.0% 100.0% 80.0% 60.0% 40.0% 20.0% 0.0% -20.0% -40.0% -60.0% -80.0% 1 Month 25% 3 Months -14% Year to Date -7% 12 Months -54% Inception 119% Net Month 3 Months YTD 12 Months Inception Advantages and Differentiators The BIT provides individuals and institutions with a traditional investment solution that reflects the price performance of bitcoin. Simple, aggregated market access and liquidity Investments are made at a single NAV/share price, set daily according to a volume weighted average price across the market. Investors are able to transact quickly, even at scale and without materially moving the market, through a dedicated trading team with a broad set of established, compliant relationships, the majority of which are conducted through direct, private transactions. Offered through trusted counterparties within a regulated environment BIT shares are marketed and distributed through SecondMarket, Inc. a US-based, FINRA-registered broker-dealer. The BIT was structured with guidance from Sidley Austin LLP, and has engaged Ernst & Young as auditor and Continental Stock Transfer & Trust as registrar and transfer agent. Robust bitcoin storage, safekeeping and operations The BIT’s assets are safeguarded by a robust security system. The system’s underlying protocols are state of the art, designed by experienced security, financial and technology professionals, and are overseen by a financial operations principal. Titled, auditable ownership in a traditional private security Investors experience a simple investment structure, through which ownership is titled in the investor’s name and evidenced by shares of traditional private securities, making it more familiar to financial and tax advisors, and easily transferred to beneficiaries under estate law. Eligible for tax-advantaged/self-directed accounts Shares in the BIT are eligible to be held in certain IRAs, 401ks and other brokerage and investor accounts. BIT shares have been approved on a variety of self-directed account provider platforms and we can work with new providers to explore and finalize eligibility. Assets‡ $39.20 MM Performance quoted represents past performance, which is no guarantee of future results. ‡NAV is calculated daily based on a 24 hour VWAP across major bitcoin exchanges. *GBTC shares been approved for public quotation on OTCQX®, the top marketplace operated by OTC Markets, however, trading has not yet commenced and no assurances can be given as to whether an active public secondary market for the shares will develop or be maintained. All performance and fund information contained herein reflects the BIT’s ongoing private placement of restricted shares. Fund Information Inception: 09/25/2013 Investment Minimum $25,000 Investor Qualification Accredited Investors Shares Outstanding 1,389,700 Annual Administration & Safekeeping Fee 2.0% Service Providers Ernst & Young Auditor Sidley Austin LLP Legal Counsel to Trust Sponsor Continental Stock Transfer & Trust Transfer Agent Delaware Trust (FKA CSC) Delaware Statutory Trustee SecondMarket, Inc. Custodian, Administrator, Distributor, Marketplace and Authorized Participant Grayscale Investments, LLC (FKA Alternative Currency Asset Management) Sponsor BITCOIN INVESTMENT TRUST TM www.bitcointrust.co | (212) 668-3911 | [email protected] Bitcoin Overview What is Bitcoin? Bitcoin is both a global transaction network (often transcribed as Bitcoin with a capital “B”) and a digital currency of fixed supply (bitcoins with a lowercase “b”) as initially described in its 2008 founding whitepaper titled Bitcoin: A Peer-to-Peer Electronic Cash System which set forth “a system for electronic transactions without relying on trust.” In practice, it represents the first system to allow users to send payments and conduct financial transfers from anywhere in the world directly, without the need for an intermediary and often at minimal cost. More broadly, Bitcoin is an open-source protocol for a decentralized network using its own units called bitcoins to enable the proof and transfer of ownership, records or other information in a secure, verifiable manner without the need of a trusted third party. In this respect, the Bitcoin protocol is similar to other network-based protocols (such as TCP/IP for the internet, HTTP for the Web and SMTP for email) and their digitally-native, protocol-specific units of data, which is why many refer to Bitcoin as the “internet of money” as well as “money for the internet.” How does Bitcoin work? The Bitcoin protocol sets the parameters by which the network operates and creates a distributed, public ledger of all the bitcoins and transaction records in the system. This ledger, called the “blockchain,” is confirmed through network consensus and secured using advanced cryptography to prevent counterfeiting, double-spending or any later alteration. The protocol also dictates a fixed supply of bitcoins. There are currently ~13.9 million bitcoins with more being released at fixed, algorithmicallydetermined intervals until the maximum supply of 21 million is reached around the year 2140. Network users are incentivized to maintain the ledger and process transactions by which the prospect is rewarded in bitcoins through a process called “mining.” Mining involves using powerful computers to solve complex mathematical equations to generate a unique digital signature, which confirms pending network transactions and releases new bitcoins. Successful miners receive both the newly released bitcoins and any fees associated with the transactions they confirmed. Bitcoins in circulation are stored within digital wallets, represented by a numeric string on the blockchain called a public key. Wallet addresses also have a private key, which is similar to a password and known only to its owner. While anyone can send bitcoins to any public key address, sending bitcoins from an address requires both the public and private keys. The Bitcoin Investment Trust (“BIT”) is a private, unregistered investment vehicle and not subject to the same regulatory requirements as exchange traded funds or mutual funds, including the requirement to provide certain periodic and standardized pricing and valuation information to investors. There are substantial risks in investing in the BIT. Investors must have the financial ability, sophistication/experience and willingness to bear the risks of an investment. Any offering or solicitation will be made only to qualified accredited investors pursuant to a formal offering with additional documentation, all of which should be read in their entirety. Any offer or solicitation of an investment in the BIT may be made only by delivery of the BIT’s confidential offering documents to qualified accredited investors. You should rely solely on such offering documents in making any investment decision. An investment in the BIT is not suitable for all investors. This document is intended for those with an in-depth understanding of the high risk nature of alternative investments and these investments may not be suitable for you. This document may not be distributed in either excerpts or in its entirety beyond its intended audience and the BIT and Grayscale Investments, LLC (“Grayscale”) will not be held responsible if this document is used or is distributed beyond its initial recipient or if it is used for any unintended purpose. This document is not a solicitation for an order, and there is not enough information contained in this message in which to make an investment decision and any information contained herein should not be used as a basis for this purpose. This document and relevant pages are subject to change without notice; directed solely at eligible institutional buyside and/or sellside clients, qualified purchasers, qualified institutional brokers and other professional clients; and not directed at, may not be suitable for, and should not be relied on by, general retail clients, and to the best of our knowledge current as of the date of distribution. The BIT and Grayscale do not: produce in-house research; make recommendations to purchase or sell specific securities; provide investment advisory services; conduct a general retail business. Neither the BIT nor Grayscale, its affiliates, nor any of its directors, officers, employees or agents shall have any liability, howsoever arising, for any error or incompleteness of fact or opinion in it or lack of care in its preparation or publication, provided that this shall not exclude liability to the extent that this is impermissible under securities laws. The BIT and Grayscale logos, graphics, icons, trademarks, service marks and headers appearing herein are service marks, trademarks (whether registered or not) and/or trade dress of SecondMarket Holdings, Inc. (the “Marks”). All other trademarks, company names, logos, service marks and/or trade dress mentioned, displayed, cited or otherwise indicated herein (“Third Party Marks”) are the sole property of their respective owners. The Marks or the Third Party Marks may not be copied, downloaded, displayed, used as metatags, misused, or otherwise exploited in any manner without the prior express written permission of the BIT and Grayscale or the owner of such Third Party Mark.