Initially, each BIT share will represent 0.1 bitcoins, but the trust will not generate any income and will regularly sell/distribute bitcoins to pay for on-going expenses, so the amount of bitcoin represented by each share will gradually decline over time.
Thank you captain Obvious. The trust has a maintenance fee it has to cover. So what's your point?
The trust will keep buying bitcoin and selling new shares along the way. The 17,800 bitcoins they currently have will sell like hotcakes in no time and they'll have to buy more Bitcoins to meet shareholder demand. Trust uses same model as the famous GLD ETF
http://www.spdrgoldshares.com/.