BITW 10-Q
Bitwise 10 Crypto Index ETF (BITW)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
For the quarterly period ended
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For the transition period from to
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Securities registered pursuant to Section 12(b) of the Act: None
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Securities registered pursuant to Section 12(g) of the Act: Bitwise 10 Crypto Index Fund (BITW) Shares
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer |
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Emerging growth company |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No
Number of shares of the registrant’s common stock outstanding as of November 10, 2025:
Table of Contents
Statement Regarding Forward-Looking Statements
This Quarterly Report on Form 10-Q contains “forward-looking statements” with respect to the financial conditions, results of operations, plans, objectives, future performance and business of Bitwise 10 Crypto Index Fund (BITW) (the “Trust”). Statements preceded by, followed by or that include words such as “may,” “might,” “will,” “should,” “expect,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “potential” or “continue,” the negative of these terms and other similar expressions are intended to identify some of the forward-looking statements. All statements (other than statements of historical fact) included in this Quarterly Report that address activities, events or developments that will or may occur in the future, including such matters as changes in market prices and conditions, the Trust’s operations, the plans of Bitwise Investment Advisers, LLC (the “Sponsor”) and references to the Trust’s future success and other similar matters are forward-looking statements. These statements are only predictions. Actual events or results may differ materially from such statements. These statements are based upon certain assumptions and analyses the Sponsor made based on its perception of historical trends, current conditions and expected future developments, as well as other factors appropriate in the circumstances.
Whether or not actual results and developments will conform to the Sponsor’s expectations and predictions, however, is subject to a number of risks and uncertainties, including, but not limited to, those described in Part II, Item 1A. Risk Factors of this Quarterly Report on Form 10-Q and in Part I, Item 1A. Risk Factors or other sections of the Trust’s Annual Report on Form 10-K for the year ended December 31, 2024, filed with the Securities and Exchange Commission (the “SEC”) on February 20, 2025. Forward-looking statements are made based on the Sponsor’s beliefs, estimates and opinions on the date the statements are made and neither the Trust nor the Sponsor is under a duty or undertakes an obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change, other than as required by applicable laws. Investors are therefore cautioned against relying on forward-looking statements. Factors which could have a material adverse effect on the Trust's business, financial condition or results of operations and future prospects or which could cause actual results to differ materially from the Trust's expectations include, but are not limited to:
i
Unless otherwise stated or the context otherwise requires, the terms “we,” “our” and “us” in this Quarterly Report on Form 10-Q refer to the Sponsor acting on behalf of the Trust.
ii
Glossary
This glossary highlights some of the industry and other terms used elsewhere in this Quarterly Report on Form 10-Q but is not a complete list of all the terms used herein. Each of the following terms has the meaning set forth below:
“Airdrops” - means a method to promote the launch and use of new Crypto Assets by providing a small amount of such new Crypto Assets to the private wallets or exchange accounts that support the new Crypto Asset and that hold existing related Crypto Assets.
“Bitcoin” or “BTC” - means a type of Crypto Asset based on an open-source cryptographic protocol existing on the Bitcoin network, comprising one type of the Crypto Assets underlying the Trust's Shares. The native Crypto Asset for the Bitcoin network is Bitcoin.
“Blockchain” - means the public transaction ledger of a Crypto Asset’s network on which transactions are recorded.
"CME" The Chicago Mercantile Exchange.
“CME CF Cryptocurrency Reference Rates - New York Variant” - Calculated by CF Benchmarks Ltd. and published by the CME Group, is the U.S. Settlement Price that determines the U.S. dollar price of major cryptocurrencies and digital assets as of 4:00 p.m. ET daily, based on aggregated executed trade flows from major crypto trading platforms.
“Consensus Algorithm” - means the algorithm at the heart of the Blockchain system that enforces the convergence of all ledgers over time
“Crypto Assets” - means a Crypto Asset designed to work as a store or value and/or medium of exchange wherein individual Crypto Asset ownership records are stored in a ledger, a computerized database using cryptography to secure transaction records, to control the creation of additional Crypto Assets and to verify the transfer of Crypto Asset ownership.
“Crypto Asset Network” - means the online, end user to end user network hosting the public transaction ledger, known as the Blockchain, and the source code comprising the basis for the cryptographic and algorithmic protocols governing the Crypto Asset’s network.
“Crypto Asset Exchanges” - means a dealer market, a brokered market, principal to principal market or exchange market on which Crypto Assets are bought, sold, and traded.
“Custodian” - means Coinbase Custody Trust Company, LLC. On behalf of the Trust, the Custodian holds the Portfolio Crypto Assets.
“Emissions” - means regular awards provided to holders of Crypto Assets in the form of Crypto Asset grants, and often in the form of the “gas” that powers transactions on the relevant Crypto Asset Network.
"GAAP" - means the generally accepted accounting principles of the United States.
“Hard Fork” - occurs when there is a change in the set of rules governing a Blockchain that makes it more restrictive than the previous set of rules in place.
“Index” - means the Bitwise 10 Large Cap Crypto Index, the benchmark index for the Trust.
“Index Provider” - means Bitwise Index Services, LLC, an affiliate of the Trust that is controlled by the same parent entity as the Sponsor. The Index Provider administers the Index.
“Miners” - means stakeholders who help process transactions and ensure that the distributed ledgers that make up a proof of work Blockchain network stay consistent with one another.
“Mining” - means the act of solving computational puzzles through which transactions with Crypto Assets are verified and added to a proof of work Blockchain digital ledger in exchange for a Crypto Asset as a reward.
“NAV” - Net asset value of the Trust, which is a Non-GAAP metric and is determined each business day by valuing the Trust’s Crypto Assets using the CME CF Cryptocurrency Reference Rates, less the Trust’s accrued but unpaid expenses.
"NAV of the Trust" - means the sum of the assets and liabilities of the Trust.
“NAV Per Share” - means the NAV of the Trust calculated on a per share basis.
“Portfolio Crypto Assets” - means the group of selected Crypto Assets that are held by the Trust.
iii
"Principal Market NAV"- The net asset value of the Trust determined on a GAAP basis.
“Shareholders” - means holders of common units of fractional undivided beneficial interest of the Trust.
iv
EMERGING GROWTH COMPANY STATUS
The Trust is an “emerging growth company” as that term is used in the Jumpstart Our Business Startups Act (the “JOBS Act”) and, as such, may elect to comply with certain reduced reporting requirements. For as long as the Trust is an emerging growth company, unlike other public companies, it will not be required to:
The Trust will cease to be an “emerging growth company” upon the earliest of (i) when it has $1.235 billion or more in total annual gross revenues during its most recently completed fiscal year; (ii) when it is deemed to be a large accelerated filer under Rule 12b-2 promulgated pursuant to the Securities Exchange Act of 1934, as amended; (iii) when it has issued more than $1.0 billion of non-convertible debt over a three-year period; or (iv) the last day of the fiscal year following the fifth anniversary of its initial public offering.
In addition, Section 107 of the JOBS Act also provides that an emerging growth company can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act of 1933, as amended, for complying with new or revised accounting standards. In other words, an emerging growth company can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. The Trust has chosen not to “opt out” of such extended transition period, and as a result, the Trust will take advantage of such extended transition period.
v
Industry and Market Data
Although we are responsible for all disclosure contained in this Quarterly Report on Form 10-Q, in some cases we have relied on certain market and industry data obtained from third-party sources that we believe to be reliable. Market estimates are calculated by using independent industry publications in conjunction with our assumptions regarding the Crypto Asset industry and market. While we are not aware of any misstatements regarding any market, industry or similar data presented herein, such data involves risks and uncertainties and is subject to change based on various factors, including those discussed under the heading “Statement Regarding Forward-Looking Statements.”
vi
PART I – FINANCIAL INFORMATION:
Item 1. Financial Statements (Unaudited)
Bitwise 10 Crypto Index Fund
(formerly known as Bitwise 10 Private Index Fund, LLC)
Financial Statements
September 30, 2025 (unaudited) and December 31, 2024
1
Bitwise 10 Crypto Index Fund
Table of Contents
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Financial Statements (Unaudited) |
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2
Bitwise 10 Crypto Index Fund
Statements of Financial Condition
September 30, 2025 (unaudited) and December 31, 2024
Assets |
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September 30, 2025 |
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December 31, 2024 |
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Investments in Crypto Assets, at fair value (cost $ |
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Cash |
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Other assets |
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Total Assets |
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Liabilities |
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Management fee payable |
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Total Liabilities |
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Net Assets |
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Net Assets consist of: |
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Paid-in-capital |
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Accumulated net investment gain (loss) |
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Accumulated net realized gain (loss) on investments in Crypto Assets |
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Net unrealized appreciation (depreciation) on investments in Crypto Assets |
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Net Assets |
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Shares issued and outstanding, |
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Principal Market NAV per share |
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The accompanying notes are an integral part of the Financial Statements.
3
Bitwise 10 Crypto Index Fund
Schedules of Investments
September 30, 2025 (unaudited)
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Investments in Crypto Assets, at fair value * |
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Bitcoin |
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Solana |
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Cardano |
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Chainlink |
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Avalanche |
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Sui |
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Litecoin |
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Polkadot |
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Total investments in Crypto Assets, at fair value |
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Other liabilities in excess of assets |
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Net Assets |
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December 31, 2024
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Percentage of Net Assets |
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Investments in Crypto Assets, at fair value * |
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Bitcoin |
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Ethereum |
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Ripple |
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Solana |
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Cardano |
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Avalanche |
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Chainlink |
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Polkadot |
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Bitcoin Cash |
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NEAR Protocol |
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Total investments in Crypto Assets, at fair value |
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Other liabilities in excess of assets |
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Net Assets |
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* Crypto Assets do not have a singular country or geographic region, therefore country information is omitted.
The accompanying notes are an integral part of the Financial Statements.
4
Bitwise 10 Crypto Index Fund
Statements of Operations (Unaudited)
For the three and nine months ended September 30, 2025 and 2024
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Nine months ended September 30, |
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Income |
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Other |
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Expenses |
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Management fee |
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Transaction and other fees |
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Total Expenses |
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Net investment gain (loss) |
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Net realized and change in unrealized gain (loss) on investments |
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Net realized gain (loss) from Crypto Assets |
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Net change in unrealized appreciation (depreciation) from Crypto Assets |
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Net realized and change in unrealized gain (loss) on investments |
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Net increase (decrease) in Net Assets resulting from operations |
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The accompanying notes are an integral part of the Financial Statements.
5
Bitwise 10 Crypto Index Fund
Statements of Changes in Net Assets (Unaudited)
For the three and nine months ended September 30, 2025 and 2024
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Three months ended September 30, |
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Increase (decrease) in net assets from operations: |
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Net investment gain (loss) |
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Net realized gain (loss) from Crypto Assets |
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Net change in unrealized appreciation (depreciation) from Crypto Assets |
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Net increase (decrease) in net assets resulting from operations |
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Net Assets: |
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Beginning of Period |
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End of Period |
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Change in Shares outstanding: |
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Shares outstanding at beginning of period |
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Subscriptions |
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Net increase (decrease) in shares |
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The accompanying notes are an integral part of the Financial Statements.
6
Bitwise 10 Crypto Index Fund
Notes to Financial Statements
September 30, 2025 (unaudited)
1. Organization
Bitwise 10 Crypto Index Fund (the “Trust”) is a Delaware Statutory Trust that commenced operations on November 22, 2017. The Trust’s name was changed from “Bitwise Hold 10 Private Index Fund, LLC” on September 24, 2018, and changed again from “Bitwise 10 Private Index Fund, LLC” on May 1, 2020 when it was also simultaneously converted from a Delaware Limited Liability Company to a Delaware Statutory Trust. Bitwise Investment Advisers, LLC, is the sponsor (“Sponsor”) and investment adviser of the Trust. Bitwise Asset Management, Inc., an affiliate of the Sponsor, served as the Manager before the Trust’s conversion to a Delaware Statutory Trust. Delaware Trust Company is the Trustee of the Trust, and American Stock Transfer & Trust Company is the Transfer Agent of the Trust.
On December 9, 2020, the Trust received notice that its Shares were qualified for public trading on the OTCQX U.S. Marketplace of the OTC Markets Group, Inc. (“OTCQX”). On June 10, 2025, the Trust filed a registration statement on Form S-3 with the SEC seeking to offer Shares that would be listed on the NYSE Arca, Inc. The Sponsor expects to terminate quotation on the OTCQX on or about the date of the commencement of the offering of shares pursuant to such registration statement. As of the date of this periodic report, the registration statement has not been declared effective. The Trust’s trading symbol on OTCQX is “BITW” and the CUSIP number for its Shares is
The Trust’s principal investment objective is to invest in a portfolio of broad-based Crypto Assets that tracks the Bitwise 10 Large Cap Crypto Index (the “Index”), which is administered by Bitwise Index Services, LLC (the "Index Provider"), an affiliate of the Sponsor. The Trust rebalances monthly alongside the Index to stay current with changes.
All shareholders are subject to a
Securitize Fund Services LLC, formerly Theorem Fund Services, LLC (the “Administrator”) serves as the Trust’s Administrator and performs certain administrative and accounting services on behalf of the Trust.
7
Bitwise 10 Crypto Index Fund
Notes to Financial Statements
September 30, 2025 (unaudited)
2. Significant Accounting Policies
Basis of Presentation
The financial statements are expressed in U.S. dollars and have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The Trust is an investment company and follows the specialized accounting and reporting guidance in the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC” or “Codification”) Topic 946, Financial Services—Investment Companies.
The accompanying financial statements are unaudited, but in the opinion of management of the Sponsor, contain all adjustments (which include normal recurring adjustments) considered necessary to present fairly the financial position of the Trust as of September 30, 2025 and December 31, 2024 and the results of operations for the three and nine months ended September 30, 2025 and 2024. These interim financial statements should be read in conjunction with the Trust’s annual report on Form 10-K for the year ended December 31, 2024. Interim period results are not necessarily indicative of results for a full-year period.
Pursuant to the Statement of Cash Flows Topic of the Codification, the Trust qualifies for an exemption from the requirement to provide a statement of cash flows and has elected not to provide a statement of cash flows.
Use of Estimates
The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates.
Cash
Cash represents cash deposits held at financial institutions and Crypto Asset exchanges. Cash in a bank deposit account, at times, may exceed U.S. federally insured limits. The Trust has not experienced any losses in such accounts and does not believe it is exposed to any significant credit risk on such bank deposits.
Investments Valuation - Principal Market NAV
The Trust’s investments in Crypto Assets are stated at fair value. For a further discussion of the Trust’s calculations of valuation, please see “Calculation of Valuation” in the footnote below. Crypto Assets are generally valued using prices as reported on reputable and liquid exchanges and may utilize an average of bid and ask quotes using closing prices provided by such exchanges as of the date and time of determination ("Calculation of Valuation" below). Factors such as the recent stability of the exchange, current liquidity of the exchange, and recent price activity of an exchange will be considered in the determination of which exchanges to utilize.
Crypto Asset transactions are recorded on the trade date. Realized gains and losses from Crypto Asset transactions are determined using the identified cost method. Any change in net unrealized gain or loss is reported in the statements of operations. Commissions and other trading fees are reflected as an adjustment to cost or proceeds at the time of the transaction.
The Trust intermittently receives Airdrops of new Crypto Assets. The use of Airdrops is generally to promote the launch and use of new Crypto Assets by providing a small amount of the new Crypto Assets to the private wallets or exchange accounts of holders of existing related Crypto Assets. Airdropped Crypto Assets can have substantially different Blockchain technology that has no relation to any existing Crypto Asset, and many Airdrops may be without value. The Trust will only record receipt of airdropped Crypto Assets if, when received, the airdropped Crypto Assets have value. Crypto Assets received from Airdrops have no cost basis and the Trust recognizes other income equal to the fair value of the new Crypto Asset received. There were no Airdrops recognized or unrecognized during the nine month period ended September 30, 2025 and year ended December 31, 2024.
8
Bitwise 10 Crypto Index Fund
Notes to Financial Statements
September 30, 2025 (unaudited)
Calculation of Valuation
Effective August 31, 2021, the process that the Sponsor developed for identifying a principal market, as described in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 820-10, which outlines the application of fair value accounting, was to begin by identifying publicly available, well-established and reputable Crypto Asset exchanges selected by the Sponsor and its affiliates in their sole discretion, and then calculating, on each valuation period, the highest volume exchange during the 60 minutes prior to 4:00 pm. ET for each asset. In evaluating the markets that could be considered principal markets, the Trust considered whether or not the specific markets were accessible to the Trust, either directly or through an intermediary, at the end of each period.
Effective February 13, 2023, the Sponsor adapted a nearly identical principal market valuation process, with no material impact to the Trust, using a third-party valuation vendor, Lukka, Inc., to identify publicly available, well-established and reputable Crypto Asset exchanges selected by Lukka, Inc. in their sole discretion, including Binance, Bitfinex, Bitflyer, Bitstamp, Bullish, Coinbase, Crypto.com, Gate.io, Gemini, HitBTC, Huobi, itBit, Kraken, KuCoin, LMAX, MEXC Global, OKX and Poloniex, and then determining, on each valuation period, the principal market exchange during the 60 minutes prior to 4:00 pm. ET for each asset. In evaluating the markets that could be considered principal markets, the Trust considered whether the specific markets were accessible to the Trust, either directly or through an intermediary, at the end of each period.
The following provides an overview of the Principal Market and the Principal Market Prices for Portfolio Crypto Assets that comprised the majority of the Trust’s assets for the nine-month period ended September 30, 2025.
Crypto Asset |
|
Principal Market Price |
|
|
Principal |
|
Bitcoin (BTC) |
|
$ |
|
|
Crypto.com |
|
Ethereum (ETH) |
|
$ |
|
|
Crypto.com |
|
Ripple (XRP) |
|
$ |
|
|
Coinbase |
|
Solana (SOL) |
|
$ |
|
|
Coinbase |
|
Cardano (ADA) |
|
$ |
|
|
Coinbase |
|
Chainlink (LINK) |
|
$ |
|
|
Coinbase |
|
Avalanche (AVAX) |
|
$ |
|
|
Coinbase |
|
Sui (SUI) |
|
$ |
|
|
Coinbase |
|
Litecoin (LTC) |
|
$ |
|
|
Coinbase |
|
Polkadot (DOT) |
|
$ |
|
|
Coinbase |
|
3. Fair Value Measurements
The Trust carries its investments at fair value in accordance with FASB ASC Topic 820, Fair Value Measurement. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., the “exit price”) in an orderly transaction between market participants at the measurement date. Fair value investments are not adjusted for transaction costs.
In determining fair value, the Trust uses a single, principal market approach. A fair value hierarchy for inputs is used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs are to be used when available. The fair value hierarchy is categorized into three levels based on the inputs as follows:
Level 1 – Valuations based on unadjusted quoted prices in active markets for identical assets or liabilities that the Trust has the ability to access.
Level 2 – Valuations based on quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly. These inputs may include (a) quoted prices for similar assets in active markets, (b) quoted prices for identical or similar assets in markets that are not active, (c) inputs other than quoted prices that are observable for the asset, or (d) inputs derived principally from or corroborated by observable market data by correlation or other means.
Level 3 – Valuations based on inputs that are unobservable and significant to the overall fair value measurement.
9
Bitwise 10 Crypto Index Fund
Notes to Financial Statements
September 30, 2025 (unaudited)
The availability of valuation techniques and observable inputs can vary from investment to investment and are affected by a wide variety of factors, including the type of investment, whether the investment is new and not yet established in the marketplace, the liquidity of markets, and other characteristics particular to the transaction.
In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level in the fair value hierarchy which the fair value measurement falls in its entirety is determined based on the lowest level input that is significant to the fair value measurement.
The following summarizes the Trust’s assets accounted for at fair value at September 30, 2025.
|
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
|
Total |
|
||||
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Investments in Crypto Assets, at fair value |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
The following summarizes the Trust’s assets accounted for at fair value at December 31, 2024.
|
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
|
Total |
|
||||
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Investments in Crypto Assets, at fair value |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
During the periods ended September 30, 2025 and December 31, 2024, there were
4. Risks and Uncertainties
Crypto Assets
Crypto Assets are loosely regulated and there is no central marketplace for currency exchange. Supply is determined by a computer code, not by a central bank, and prices have been extremely volatile. Crypto Asset exchanges have been closed due to fraud, failure, or security breaches. Any of the Trust’s assets that reside on an exchange that closes may be lost. At September 30, 2025, Crypto Assets of approximately $
Several factors may affect the price of Crypto Assets, including, but not limited to: supply and demand, investors’ expectations with respect to the rate of inflation, interest rates, currency exchange rates, or future regulatory measures (if any) that restrict the trading of Crypto Assets or the use of Crypto Assets as a form of payment. There is no assurance that Crypto Assets will maintain their long-term value in terms of purchasing power in the future, or that acceptance of Crypto Asset payments by mainstream retail merchants and commercial businesses will continue to grow.
Crypto Asset Regulation
As Crypto Assets have grown in popularity and market size, various countries and jurisdictions have begun to develop regulations governing the Crypto Assets industry. To the extent that future regulatory actions or policies limit the ability to exchange Crypto Assets or utilize them for payments, the demand for Crypto Assets will be reduced. Furthermore, regulatory actions may limit the ability of end-users to convert Crypto Assets into fiat currency (e.g., U.S. dollars) or use Crypto Assets to pay for goods and services. Such regulatory actions or policies could result in a reduction of demand, and in turn, a decline in the underlying Crypto Asset unit prices.
The effect of any future regulatory change on the Trust or Crypto Assets in general is impossible to predict, but such change could be substantial and adverse to the Trust and the value of the Trust’s investments in Crypto Assets.
Custody of Crypto Assets
Coinbase Custody Trust Company, LLC (the “Custodian”) serves as the Trust’s Custodian for Crypto Assets for which qualified custody is available. The Custodian is subject to change in the sole discretion of the Sponsor. At September 30, 2025 and December 31, 2024, Crypto Assets of approximately $
10
Bitwise 10 Crypto Index Fund
Notes to Financial Statements
September 30, 2025 (unaudited)
Crypto Asset Trading is Volatile and Speculative
Crypto Assets represent a speculative investment and involve a high degree of risk. Prices of Crypto Assets have fluctuated widely for a variety of reasons including uncertainties in government regulation and may continue to experience significant price fluctuations. If Crypto Asset markets continue to be subject to sharp fluctuations, Shareholders may experience losses as the value of the Trust’s investments decline. Even if Shareholders are able to hold their Shares in the Trust for the long-term, their Shares may never generate a profit, since Crypto Asset markets have historically experienced extended periods of flat or declining prices in addition to sharp fluctuations.
Over-the-Counter Transactions
Some of the markets in which the Trust may execute its transactions are “over-the-counter” or “interdealer” markets. The participants in such markets are typically not subject to credit evaluation and regulatory oversight as are members of “exchange-based” markets. This exposes the Trust to the risk that a counterparty will not settle a transaction in accordance with its terms and conditions because of a dispute over the terms of the contract (whether or not bona fide) or because of a credit or liquidity problem, thus causing the Trust to suffer a loss. Such “counterparty risk” is accentuated for Crypto Assets where the Trust has concentrated its transactions with a single or small group of counterparties. The Trust is not restricted from dealing with any particular counterparty or from concentrating any or all of its transactions with one counterparty. Moreover, the Trust has no internal credit function that evaluates the creditworthiness of its counterparties. The ability of the Trust to transact business with any one or number of counterparties, the lack of any meaningful and independent evaluation of such counterparty’s financial capabilities and the absence of a regulated market to facilitate settlement may increase the potential for losses by the Trust.
No FDIC or SIPC Protection
The Trust is not a banking institution or otherwise a member of the Federal Deposit Insurance Corporation (“FDIC”) or the Securities Investor Protection Corporation (“SIPC”). Accordingly, deposits or assets held by the Trust are not subject to the protections enjoyed by depositors with FDIC or SIPC member institutions. The Trust’s Crypto Asset custodians do however carry bespoke insurance policies related to the Crypto Assets over which they provide custody.
The Trust must adapt to technological change in order to secure and safeguard client accounts. While management believes they have developed an appropriate proprietary security system reasonably designed to safeguard the Trust’s Crypto Assets from theft, loss, destruction, or other issues relating to hackers and technological attack, such assessment is based upon known technology and threats. To the extent that the Trust is unable to identify and mitigate or stop new security threats, the Trust’s Crypto Assets may be subject to theft, loss, destruction, or other attack, which could have a negative impact on the performance of the Trust or result in loss of the Trust’s Crypto Assets.
Risks Associated With a Crypto Asset Majority Control
Since Crypto Assets are virtual and transactions in such currencies reside on distributed networks, governance of the underlying distributed network could be adversely altered should any individual or group obtain
Transaction Authentication
As of the date of these financial statements, the transfer of Crypto Assets from one party to another typically relies on an authentication process by an outside party known as a miner or validator. In exchange for compensation, the miner or validator will authenticate the transfer of the currency through the solving of a complex algorithm known as a proof of work, or will vouch for the transfer through other means, such as a proof of stake. Effective transfers of and therefore realization of Crypto Assets, and tokens are dependent on interactions from these miners or validators. In the event that there were a shortage of miners to perform this function, that shortage could have an adverse effect on either the fair value or realization of the Crypto Assets.
Other Risks
Management continues to evaluate the impact of current or anticipated military conflict, including between Russia and Ukraine, terrorism, sanctions; and other geopolitical events; as well as adverse developments in the economy, the capital markets and the Blockchain markets, including rising energy costs, inflation and interest rates, in the United States and globally; and catastrophic
11
Bitwise 10 Crypto Index Fund
Notes to Financial Statements
September 30, 2025 (unaudited)
events such as fires, floods, earthquakes, tornadoes, hurricanes, and global health epidemics. Management has concluded that while it is reasonably possible that these events could have a negative effect on the financial performance and operations of the Trust, the specific impact is not readily determinable as of the date of the financial statements. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.
5. Income Taxes
The Trust is classified as a partnership for U.S. federal income tax purposes. The Trust does not record a provision for U.S. federal, U.S. state, or local income taxes because the Shareholders report their share of the Trust’s income or loss on their income tax returns. The Trust files an income tax return in the U.S. federal jurisdiction and may file income tax returns in various U.S. states and foreign jurisdictions.
The Trust is required to determine whether its tax positions are more likely than not to be sustained on examination by the applicable taxing authority, based on the technical merits of the position. Tax positions not deemed to meet a more likely than not threshold would be recorded as a tax expense in the current year. As of September 30, 2025 and December 31, 2024, the Trust has determined that
6. Shareholders’ Equity
Subscriptions
As of November 18, 2021, the Sponsor to the Trust has closed the acceptance of all subscriptions to the Bitwise 10 Crypto Index Fund, pursuant to its rights under Sections 5 and 6 of the Trust Agreement.
In-Kind Subscriptions
The Sponsor may, at its sole discretion, accept Crypto Assets (“In-Kind Investments”) in lieu of, or in addition to, cash as payment for investment in the Trust. Such In-Kind Investments are valued using the same Crypto Asset prices as per the Trust’s valuation policy at any given valuation date as of 4:00 pm ET on the date of the subscription. As of November 18, 2021, the Sponsor to the Trust has closed the acceptance of all subscriptions to the Bitwise 10 Crypto Index Fund, pursuant to its rights under Sections 5 and 6 of the Trust Agreement.
Withdrawals
In connection with the Trust seeking approval for the quotation of its Shares on OTCQX, the Trust halted the withdrawal program on October 7, 2020.
7. Related Party Transactions
The Trust considers the Sponsor, its directors and employees to be related parties of the Trust. In consideration for the management services to be provided to the Trust, the Sponsor will receive from the Trust a management fee (the “Management Fee”) payable monthly, in arrears at a rate of
The Sponsor may, in its discretion, waive, reduce, or rebate the Management Fee with respect to any Shareholder or group of Shareholders (which group may, but need not, include all Shareholders), including affiliates of the Sponsor; provided that such waiver, reduction, or rebate shall not increase the Management Fee payable in respect of any other Shareholder.
12
Bitwise 10 Crypto Index Fund
Notes to Financial Statements
September 30, 2025 (unaudited)
For the periods January 1, 2025 to September 30, 2025 and January 1, 2024 to September 30, 2024, the Shareholders were charged Management Fees of $
8. Indemnifications
9. Financial Highlights
The following presents the financial highlights for the three and nine months ended September 30, 2025 and 2024.
|
|
Three months ended |
|
|
Three months ended |
|
|
|
Nine months ended September 30, 2025 |
|
|
Nine months ended September 30, 2024 |
|
|
||||
Per Share Performance |
|
Investor Class |
|
|
Investor Class |
|
|
|
Investor Class |
|
|
Investor Class |
|
|
||||
(for a share outstanding throughout the period) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net asset value per share at beginning of period |
|
$ |
|
|
$ |
|
|
|
$ |
|
|
$ |
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net increase (decrease) in Net Assets resulting from operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net realized and change in unrealized gain (loss) on investments (1) |
|
|
|
|
|
( |
) |
|
|
|
|
|
|
|
|
|||
Net investment gain (loss) (1) |
|
|
( |
) |
|
|
( |
) |
|
|
|
( |
) |
|
|
( |
) |
|
Net increase (decrease) in Net Assets resulting |
|
|
|
|
|
( |
) |
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net asset value per share at end of period |
|
$ |
|
|
$ |
|
|
|
$ |
|
|
$ |
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Total return |
|
|
|
% |
|
( |
) |
% |
|
|
|
% |
|
|
% |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Supplemental Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Ratios to average net asset value(2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Expenses |
|
|
|
% |
|
|
% |
|
|
|
% |
|
|
% |
||||
Net investment loss |
|
|
( |
) |
% |
|
( |
) |
% |
|
|
( |
) |
% |
|
( |
) |
% |
Net Assets at end of period |
|
$ |
|
|
$ |
|
|
|
$ |
|
|
$ |
|
|
||||
Average net assets(3) |
|
$ |
|
|
$ |
|
|
|
$ |
|
|
$ |
|
|
||||
Portfolio turnover |
|
|
|
% |
|
|
% |
|
|
|
% |
|
|
% |
||||
Total returns are calculated based on the change in value of a share during the period. The total return and the ratios to average net asset value are calculated for each class as a whole. An individual Shareholder’s return and ratios may vary based on the timing of capital transactions. Ratios have been annualized for the periods ended September 30, 2025 and 2024; total returns and portfolio turnover have not been annualized.
13
Bitwise 10 Crypto Index Fund
Notes to Financial Statements
September 30, 2025 (unaudited)
10. Segment Reporting
In 2024, the Trust adopted FASB Accounting Standards Update 2023-07, Segment Reporting (Topic 280) - Improvements to Reportable Segment Disclosures (“ASU 2023-07”). Adoption of the new standard impacted financial statement disclosures only and did not affect the Trust’s financial position or the results of its operations. An operating segment is defined in Topic 280 as a component of a public entity that engages in business activities from which it may recognize revenues and incur expenses, has operating results that are regularly reviewed by the public entity’s Chief Operating Decision Maker (“CODM”) to make decisions about resources to be allocated to the segment and assess its performance, and has discrete financial information available. Selective members of the of the Trust’s Sponsor, act as the Trust’s CODM. The Trust represents a operating segment, as
11. Subsequent Events
The Sponsor has evaluated subsequent events through November 10, 2025, the date the financial statements were issued, and has determined that there are no material subsequent events that require disclosure.
14
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
The following discussion and analysis of our financial condition and results of operations should be read together with, and is qualified in its entirety by reference to our unaudited financial statements and related notes included elsewhere in this Quarterly Report on Form 10-Q, which have been prepared in accordance with U.S. GAAP. The following discussion may contain forward-looking statements based on current expectations that involve risks and uncertainties. Our actual results could differ materially from those discussed in these forward-looking statements as a result of various factors including those set forth under “Part II. Item 1A. Risk Factors,” “Statement Regarding Forward-Looking Statements” or in other sections of this Quarterly Report on Form 10-Q.
Trust Overview
The Trust is a Delaware Statutory Trust that issues units of fractional undivided beneficial interest in the form of shares, which represent ownership in the Trust (“Shares”). All Shareholders of “investor class” units received 10 Shares for each unit owned prior to the corporate action date, and all Shareholders of “institutional class” units received 10.12602229 Shares for each unit owned prior to the corporate action date.
The purpose of the Trust is to make it easier for an investor to invest in the Crypto Asset market as a whole without having to pick specific tokens, manage a portfolio, and constantly monitor ongoing news and developments. Although the Shares are not the exact equivalent of a direct investment in Crypto Assets, they provide investors with an alternative that constitutes a relatively cost-effective, professionally managed way to participate in Crypto Asset markets. The Trust holds a Portfolio of Crypto Assets, referred to as the Portfolio Crypto Assets.
In furtherance of this objective, the activities of the Trust include (i) issuing Shares in exchange for subscriptions, (ii) selling or buying Portfolio Crypto Assets in connection with monthly rebalancing, (iii) selling Portfolio Crypto Assets as necessary to cover the Management Fee (as defined below) and/or any Organizational Expenses (as defined below), (iv) causing the Sponsor to sell Portfolio Crypto Assets upon any potential future termination of the Trust, and (v) engaging in all administrative and security procedures necessary to accomplish such activities in accordance with the provisions of the Trust Agreement of Bitwise 10 Crypto Index Fund (the “Trust Agreement”), and the Custodian Agreement with the Custodian (the “Custodian Agreement”).
The Trust’s principal investment objective is to invest in a Portfolio of Crypto Assets that tracks the Bitwise 10 Large Cap Crypto Index (the “Index”) as closely as possible with certain exceptions determined by the Sponsor in its sole discretion. In addition, in the event the Portfolio Crypto Assets being held by the Trust present opportunities to generate returns in excess of the Index (for example, Airdrops, Emissions, forks, or similar network events) the Sponsor may also pursue these incidental opportunities on behalf of the Trust as part of the investment objective if in its sole discretion the Sponsor deems such activities to be possible and prudent. The Trust believes that it has met its principal investment objective. As of September 30, 2025, there was a correlation of 99.99% between the Portfolio Crypto Assets and the assets included in the Index. The Trust is aware that the market price of the Trust’s shares may deviate from the net asset value (“NAV”) of the shares, and the market price may at times be significantly above or below the shares’ NAV. The NAV of the Trust is calculated by summing the assets and liabilities and the NAV Per Share is calculated by dividing the total NAV by the shares outstanding. However, the Trust believes that any such deviation does not affect the Trust’s principal investment objective, as the Trust does not maintain or promote any business objectives related to the market trading price of its shares. Furthermore, under Regulation M, the Trust, as issuer of the Shares, is not permitted to take any actions that would seek to reconcile the NAV of the Shares and the market price of the Shares, and the Trust would not undertake business objectives that it was legally restricted from achieving.
The Trust and the Sponsor have entered into a limited, non-exclusive, revocable license agreement with Bitwise Index Services, LLC (the “Index Provider”), an affiliate of the Trust that is controlled by the same parent entity as the Sponsor, at no cost to the Trust or the Sponsor allowing the Trust to use the Index as the benchmark index for the Trust (the “License Agreement”).
The Shares may also trade at a substantial premium over, or a substantial discount to, the NAV Per Share as a result of price volatility, trading volume and closings of the exchanges on which the Sponsor purchases Portfolio Crypto Assets on behalf of the Trust due to fraud, failure, security breaches or otherwise. As a result of the foregoing, the price of the Shares as quoted on OTCQX has varied significantly from the value of the Trust’s Portfolio Crypto Assets Per Share since the Shares were approved for quotation on December 9, 2020.
The following charts show the percentage of Premium/(Discount) of the Shares as quoted on OTCQX and the Trust’s NAV and a comparison of the NAV of the Trust vs the market price as quoted on OTCQX for the period from December 9, 2020 to September 30, 2025.
15
From December 9, 2020 to September 30, 2025, the Shares of BITW traded at an average discount, based on closing prices at 4:00 pm ET, and estimated, unaudited, NAV Per Share of 15.65%. During that same period, the highest premium was 649.38% on December 16, 2020, and the lowest premium was 0.27% on August 4, 2021. During that same period, the highest discount was 67.80% on December 28, 2022, and the lowest discount was 0.09% on September 24, 2021. Given the lack of an ongoing redemption program
16
and the holding period under Rule 144, there is no arbitrage mechanism to keep the Shares closely linked to the value of the Trust’s underlying holdings that may continue to have an adverse impact on investments in the Shares.
The following chart shows a comparison of the cumulative returns of the Index compared to the NAV of the Trust since inception to the period ended September 30, 2025.
17
Results of Operations
Financial Information for the Three Months and Nine Months ended September 30, 2025 and 2024
The following table sets forth statements of operations data for the three and nine months ended September 30, 2025 and 2024.
Statements of Operations (Unaudited)
|
|
Three months ended September 30, |
|
|
Nine months ended September 30, |
|
||||||||||
|
|
2025 |
|
|
2024 |
|
|
2025 |
|
|
2024 |
|
||||
Income |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Other |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Management fee |
|
|
10,091,264 |
|
|
|
5,869,017 |
|
|
|
26,439,820 |
|
|
|
17,877,678 |
|
Transaction and other fees |
|
|
— |
|
|
|
(2 |
) |
|
|
— |
|
|
|
49 |
|
Total Expenses |
|
|
10,091,264 |
|
|
|
5,869,015 |
|
|
|
26,439,820 |
|
|
|
17,877,727 |
|
Net investment gain (loss) |
|
|
(10,091,264 |
) |
|
|
(5,869,015 |
) |
|
|
(26,439,820 |
) |
|
|
(17,877,727 |
) |
Net realized and change in unrealized gain (loss) on investments |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net realized gain (loss) from Crypto Assets |
|
|
8,589,966 |
|
|
|
2,628,714 |
|
|
|
21,554,881 |
|
|
|
3,649,449 |
|
Net change in unrealized appreciation (depreciation) from Crypto Assets |
|
|
206,796,534 |
|
|
|
(11,640,352 |
) |
|
|
269,830,768 |
|
|
|
247,154,609 |
|
Net realized and change in unrealized gain (loss) on investments |
|
|
215,386,500 |
|
|
|
(9,011,638 |
) |
|
|
291,385,649 |
|
|
|
250,804,058 |
|
Net increase (decrease) in Net Assets resulting from operations |
|
$ |
205,295,236 |
|
|
$ |
(14,880,653 |
) |
|
$ |
264,945,829 |
|
|
$ |
232,926,331 |
|
Comparison of the three-month periods ended September 30, 2025 and 2024
The following provides a discussion of the material items that impacted the Trust’s financial condition during the applicable period:
Management fees
The Sponsor charges the Trust a Management Fee payable monthly, in arrears, in an amount equal to 2.5% per annum (1/12th of 2.5% per month) of the net asset value of the Trust’s assets at the end of each month. Management fees for the three months ended September 30, 2025 were $10,091,264 compared to management fees for the three months ended September 30, 2024 of $5,869,017. These changes were due to an increase in the Trust’s net asset value due to an increase in the fair value of the Portfolio Crypto Assets held by the Trust (see “Schedules of Investments” below).
Net realized gain (loss) from Crypto Assets
Net realized gain from Crypto Assets for the three months ended September 30, 2025 was $8,589,966 compared to net realized gain from Crypto Assets for the three months ended September 30, 2024 was $2,628,714. These changes were due to fluctuations in the value of the Portfolio Crypto Assets.
For the three-month period ended September 30, 2025, the Trust recorded net realized gains from sales of Bitcoin and Ethereum of approximately $7,650,615 and $859,862, respectively, among the gains and losses realized in smaller amounts from the sale of other Portfolio Crypto Assets. These sales were made as a result of rebalancing activity and sales of Portfolio Crypto Assets to raise money to pay the management fee.
For the three-month period ended September 30, 2024, the Trust recorded net realized gains from sales of Bitcoin and Ethereum of approximately $2,662,860 and $1,616,962, respectively, among the gains and losses realized in smaller amounts from the sale of other Portfolio Crypto Assets. These sales were made as a result of rebalancing activity and sales of Portfolio Crypto Assets to raise money to pay the management fee.
Net change in unrealized appreciation (depreciation) from Crypto Assets
Net change in unrealized depreciation from Crypto Assets for the three months ended September 30, 2025 was $206,796,534 compared to net change in unrealized depreciation from Crypto Assets for three months ended September 30, 2024 was $11,640,352. The primary factor for the change was related to a decrease in the fair value of the Portfolio Crypto Assets held by the Trust (see “Schedules of Investments” below).
For the three-month period ended September 30, 2025 the Trust recorded net unrealized appreciation from Crypto Assets of Bitcoin and Ethereum of approximately $61,374,708 and $102,820,475, respectively, among the unrealized gains and losses in smaller amounts of other Portfolio Crypto Assets.
18
For the three-month period ended September 30, 2024 the Trust recorded net unrealized appreciation from Crypto Assets of Bitcoin and net unrealized depreciation of Ethereum of approximately $34,989,433 and $52,844,634, respectively, among the unrealized gains and losses in smaller amounts of other Portfolio Crypto Assets.
Net increase (decrease) in net assets resulting from operations
For the three-month period ended September 30, 2025, the Trust recorded a net increase in net assets resulting from operations of $205,295,236, compared to a net decrease in net assets resulting from operations of $14,880,653 for the three-month period ended September 30, 2024. The primary factor that impacted 2025 net increase in net assets resulting from operations compared to 2024 net decrease in net assets resulting from operations was an increase in net realized gain and change in unrealized gain on investments with a net gain of $215,386,500 in 2025 compared to a net loss of $9,011,683 in 2024. The primary factor for the change was an increase in the value of the Portfolio Crypto Assets held by the Trust as a result of the fair market value of the Assets (see “Schedules of Investments” below).
Comparison of the nine-month periods ended September 30, 2025 and 2024
The following provides a discussion of the material items that impacted the Trust’s financial condition during the applicable period:
Management fees
The Sponsor charges the Trust a Management Fee payable monthly, in arrears, in an amount equal to 2.5% per annum (1/12th of 2.5% per month) of the net asset value of the Trust’s assets at the end of each month. Management fees for the nine months ended September 30, 2025 were $26,439,820 compared to management fees for the nine months ended September 30, 2024 of $17,877,678. These changes were due to an increase in the Trust’s net asset value due to an increase in the fair value of the Portfolio Crypto Assets held by the Trust (see “Schedules of Investments” below).
Net realized gain (loss) from Crypto Assets
Net realized gain from Crypto Assets for the nine months ended September 30, 2025 was $21,554,881 compared to net realized gain from Crypto Assets for the nine months ended September 30, 2024 of $3,649,449. These changes were due to fluctuations in the value of the Portfolio Crypto Assets sold during the respective period.
For the nine-month period ended September 30, 2025, the Trust recorded net realized gains from sales of Bitcoin and Ethereum of approximately $20,739,323 and $3,381,063, respectively, among the gains and losses realized in smaller amounts from the sale of other Portfolio Crypto Assets. These sales were made as a result of rebalancing activity and sales of Portfolio Crypto Assets to raise money to pay the management fee.
For the nine-month period ended September 30, 2024, the Trust recorded net realized gains from sales of Bitcoin and Ethereum of $7,170,856 and $4,555,266, respectively, among the gains and losses realized in smaller amounts from the sale of other Portfolio Crypto Assets. These sales were made as a result of rebalancing activity and sales of Portfolio Crypto Assets to raise money to pay the management fee.
Net change in unrealized appreciation (depreciation) from Crypto Assets
Net change in unrealized appreciation from Crypto Assets for the nine months ended September 30, 2025 was $269,830,768 compared to net change in unrealized appreciation from Crypto Assets for nine months ended September 30, 2024 of $247,154,609. The primary factor for the change was related to an increase in the fair value of the Portfolio Crypto Assets held by the Trust (see “Schedules of Investments” below).
For the nine-month period ended September 30, 2025 the Trust recorded net unrealized appreciation from Crypto Assets of Bitcoin and Ethereum of approximately $198,480,739 and $46,337,883, respectively, among the unrealized appreciation and depreciation in smaller amounts of other Portfolio Crypto Assets.
For the nine-month period ended September 30, 2024 the Trust recorded net unrealized appreciation from Crypto Assets of Bitcoin and Ethereum of $227,455,583 and $16,698,007, respectively, among the unrealized gains and losses in smaller amounts of other Portfolio Crypto Assets.
Net increase (decrease) in net assets resulting from operations
For the nine-month period ended September 30, 2025, the Trust recorded a net increase in net assets resulting from operations of $264,945,829, compared to a net increase in net assets resulting from operations of $232,926,331 for the nine-month period ended September 30, 2024. The primary factor that impacted 2025 net increase in net assets resulting from operations compared to 2024 net increase in net assets resulting from operations was an increase in net realized gain and change in unrealized appreciation on investments with a net gain of $291,385,649 for the nine-month period in 2025 compared to a net gain of $250,804,058 for the
19
nine-month period in 2024. The primary factor for the change was a increase in the fair value of the Portfolio Crypto Assets held by the Trust (see “Schedules of Investments” below).
Management Fee
The Sponsor charges the Trust a Management Fee payable monthly, in arrears, in an amount equal to 2.5% per annum (1/12th of 2.5% per month) of the net asset value of the Trust’s assets at the end of each month.
The Sponsor is responsible for paying for all ordinary administrative and overhead expenses of managing the Trust, including payment of rent, custody charges or flat rate fees for holding the Trust’s assets charged by the Custodian and customary fees and expenses of the Trustee, Administrator and Auditor (including costs incurred for appraisal or valuation expenses associated with the preparation of the Trust’s financial statements, tax returns and other similar reports and excluding indemnification and extraordinary costs). The Sponsor also pays for all expenses associated with the operation of the Trust, including for example, fees associated with quotation of the Shares on the OTCQX, registration with the SEC, and fees associated with retaining and maintaining the Transfer Agent. “Trading commissions” or trading fees paid to trading venues (also known as exchanges) or intermediaries (such as trading technology or Crypto Asset brokerage firms) that assist in trade execution for accessing Crypto Asset liquidity are charged to the Trust and may either be included in the cost of the Crypto Assets acquired by or disposed of by the Trust or may appear as explicit costs in addition to the price of the Crypto Asset. Trading fees and commissions are charged to the Trust and may appear in the financial statements as “Transaction and other fees” in the Financial Statements’ Statements of Operations in the Expenses category or may be included in the cost of the Crypto Assets acquired by the Trust.
There is no ceiling to the Trust’s expenses that the Sponsor will pay. However, the Sponsor retains the right to cause the Trust to pay indemnification and extraordinary expenses, and these Trust expenses are not covered by the Management Fee. The Trust may incur certain extraordinary expenses including, but not limited to, any non-customary costs and expenses including extraordinary costs of the Administrator and Auditor, costs of any litigation or investigation involving Trust activities, and workout and restructuring and indemnification expenses.
Shareholder Subscriptions
As of November 18, 2021, the Sponsor to the Trust has closed the acceptance of all subscriptions to the Bitwise 10 Crypto Index Fund, pursuant to its rights under Sections 5 and 6 of the Trust Agreement. At this time, the Sponsor has no plans to reopen subscriptions to the Bitwise 10 Crypto Index Fund. There were no shareholder subscriptions during the quarter ended September 30, 2025.
Capital Resources and Liquidity
The Trust generally holds only a very small cash balance, and is otherwise fully invested in order to maintain its investment objective of tracking the Index. When selling Portfolio Crypto Assets to pay the Management Fee, the Sponsor endeavors to sell an exact amount of Portfolio Crypto Assets needed in order to pay such expenses in order to minimize the Trust’s holdings of assets other than Portfolio Crypto Assets. As a consequence, the Sponsor expects the Trust will typically have a very small cash balance at each reporting period. Cash may also be held in the Trust after a subscription from Shareholder is funded (or sent to the Trust’s bank account) but not yet invested in Portfolio Crypto Assets, or after a redemption from a redeeming Shareholder has been processed (e.g., by raising cash through the sale of Portfolio Crypto Assets) but not yet paid to the redeeming Shareholder.
As described under the heading “Management Fee” above, in exchange for the Management Fee, the Sponsor is responsible for payment of almost all of the expenses incurred by the Trust. As a result, the only material ordinary expense of the Trust during the periods covered by this Registration Statement was the Management Fee. The Trust is not aware of any trends, demands, conditions or events that are reasonably likely to result in material changes to its liquidity needs. While broader economic and market conditions, including evolving trade policies and tariffs, could impact the price of Portfolio Crypto Assets and contribute to increased market volatility, the Trust does not currently anticipate these factors will materially affect its liquidity needs. See Part I, Item 2 under the heading “Management’s Discussion and Analysis of Financial Condition and Results of Operations-Management Fee” for additional discussion of the Trust’s fees and expenses.
Value of Portfolio Crypto Assets
As described in the Risk Factors set out in our Annual Report on Form 10-K filed with the SEC on February 20, 2025, the prices of the various Portfolio Crypto Assets held by the Trust are subject to extreme volatility. This volatility had a significant impact on the value of the Portfolio Crypto Assets for the nine months ended September 30, 2025 compared to the nine months ended September 30,
20
2024 and the year ended December 31, 2024.
As of September 30, 2025, the Trust held a total market value of Crypto Assets of $1,627,996,45 based on the CME CF Cryptocurrency Reference Rates - New York Variant prices used to determine the Trust's NAV. The total market value of the Trust's Crypto Assets held was $1,634,076,084 based on the Lukka Prime Rates used to determine the Trust's Principal Market NAV.
As shown below in the “Schedules of Investments,” the increase in total investments in Crypto Assets from January 1, 2025 to September 30, 2025 was due primarily to a decrease in the value of the Portfolio Crypto Assets and to a lesser extent, the reinvestment of assets resulting from the December 31, 2024 Trust rebalance.
Shareholder Subscriptions and Redemptions
During the period from January 1, 2025 to September 30, 2025, there were no subscriptions or redemptions of Shares. There were 20,241,947 Shares outstanding as of September 30, 2025.
Schedules of Investments
The following provides details on the Portfolio Crypto Assets that comprise the Trust’s assets.
Nine Months Ended September 30, 2025 and the Twelve Months Ended December 31, 2024
21
|
|
Bitcoin (BTC) |
|
|||||
|
|
Units |
|
|
Fair Value |
|
||
Balance at January 1, 2025 |
|
|
10,632.1413 |
|
|
$ |
992,967,681 |
|
Purchases |
|
|
3.5303 |
|
|
|
328,000 |
|
Sales |
|
|
(292.9271 |
) |
|
|
(29,285,189 |
) |
Net realized gain (loss) on investment |
|
|
— |
|
|
|
20,739,323 |
|
Net change in unrealized appreciation (depreciation) on investment |
|
|
— |
|
|
|
198,480,739 |
|
Balance at September 30, 2025 |
|
|
10,342.7445 |
|
|
$ |
1,183,230,554 |
|
|
|
|
|
|
|
|
||
|
|
Ethereum (ETH) |
|
|||||
|
|
Units |
|
|
Fair Value |
|
||
Balance at January 1, 2025 |
|
|
65,011.3388 |
|
|
$ |
217,163,876 |
|
Purchases |
|
|
570.5776 |
|
|
|
1,468,688 |
|
Sales |
|
|
(2,875.9488 |
) |
|
|
(7,393,728 |
) |
Net realized gain (loss) on investment |
|
|
— |
|
|
|
3,381,063 |
|
Net change in unrealized appreciation (depreciation) on investment |
|
|
— |
|
|
|
46,337,883 |
|
Balance at September 30, 2025 |
|
|
62,705.9676 |
|
|
$ |
260,957,782 |
|
|
|
|
|
|
|
|
||
|
|
Ripple (XRP) |
|
|||||
|
|
Units |
|
|
Fair Value |
|
||
Balance at January 1, 2025 |
|
|
30,686,126.7901 |
|
|
$ |
64,339,602 |
|
Purchases |
|
|
1,021,908.2377 |
|
|
|
2,258,890 |
|
Sales |
|
|
(864,420.8950 |
) |
|
|
(2,219,889 |
) |
Net realized gain (loss) on investment |
|
|
— |
|
|
|
396,125 |
|
Net change in unrealized appreciation (depreciation) on investment |
|
|
— |
|
|
|
23,576,805 |
|
Balance at September 30, 2025 |
|
|
30,843,614.1328 |
|
|
$ |
88,351,533 |
|
|
|
|
|
|
|
|
||
|
|
Solana (SOL) |
|
|||||
|
|
Units |
|
|
Fair Value |
|
||
Balance at January 1, 2025 |
|
|
256,477.2246 |
|
|
$ |
49,677,074 |
|
Purchases |
|
|
27,064.7045 |
|
|
|
4,209,796 |
|
Sales |
|
|
(1,301.5749 |
) |
|
|
(300,000 |
) |
Net realized gain (loss) on investment |
|
|
— |
|
|
|
(16,234 |
) |
Net change in unrealized appreciation (depreciation) on investment |
|
|
— |
|
|
|
5,395,019 |
|
Balance at September 30, 2025 |
|
|
282,240.3542 |
|
|
$ |
58,965,655 |
|
|
|
|
|
|
|
|
||
|
|
Cardano (ADA) |
|
|||||
|
|
Units |
|
|
Fair Value |
|
||
Balance at January 1, 2025 |
|
|
19,192,702.8414 |
|
|
$ |
16,261,977 |
|
Purchases |
|
|
338,737.0073 |
|
|
|
217,502 |
|
Sales |
|
|
(666,423.4931 |
) |
|
|
(433,460 |
) |
Net realized gain (loss) on investment |
|
|
— |
|
|
|
(459,614 |
) |
Net change in unrealized appreciation (depreciation) on investment |
|
|
— |
|
|
|
(471,754 |
) |
Balance at September 30, 2025 |
|
|
18,865,016.3556 |
|
|
$ |
15,114,651 |
|
|
|
|
|
|
|
|
||
|
|
Chainlink (LINK) |
|
|||||
|
|
Units |
|
|
Fair Value |
|
||
Balance at January 1, 2025 |
|
|
342,097.2780 |
|
|
$ |
6,828,604 |
|
Purchases |
|
|
18,338.6432 |
|
|
|
250,040 |
|
Sales |
|
|
(5,384.8936 |
) |
|
|
(84,979 |
) |
Net realized gain (loss) on investment |
|
|
— |
|
|
|
(15,658 |
) |
Net change in unrealized appreciation (depreciation) on investment |
|
|
— |
|
|
|
666,952 |
|
Balance at September 30, 2025 |
|
|
355,051.0276 |
|
|
$ |
7,644,959 |
|
|
|
|
|
|
|
|
||
|
|
Avalanche (AVAX) |
|
|||||
|
|
Units |
|
|
Fair Value |
|
||
Balance at January 1, 2025 |
|
|
220,206.9730 |
|
|
$ |
7,885,612 |
|
22
Purchases |
|
|
3,063.4783 |
|
|
|
58,826 |
|
Sales |
|
|
(1,571.2908 |
) |
|
|
(53,946 |
) |
Net realized gain (loss) on investment |
|
|
— |
|
|
|
(9,550 |
) |
Net change in unrealized appreciation (depreciation) on investment |
|
|
— |
|
|
|
(1,223,316 |
) |
Balance at September 30, 2025 |
|
|
221,699.1605 |
|
|
$ |
6,657,626 |
|
|
|
|
|
|
|
|
||
|
|
Sui (SUI) |
|
|||||
|
|
Units |
|
|
Fair Value |
|
||
Balance at January 1, 2025 |
|
|
— |
|
|
$ |
— |
|
Purchases |
|
|
1,856,360.5924 |
|
|
|
7,511,317 |
|
Sales |
|
|
(71,047.9574 |
) |
|
|
(200,000 |
) |
Net realized gain (loss) on investment |
|
|
— |
|
|
|
(91,311 |
) |
Net change in unrealized appreciation (depreciation) on investment |
|
|
— |
|
|
|
(1,398,459 |
) |
Balance at September 30, 2025 |
|
|
1,785,312.6350 |
|
|
$ |
5,821,547 |
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
||
|
|
Litecoin (LTC) |
|
|||||
|
|
Units |
|
|
Fair Value |
|
||
Balance at January 1, 2025 |
|
|
— |
|
|
$ |
— |
|
Purchases |
|
|
40,872.6900 |
|
|
|
5,238,686 |
|
Sales |
|
|
(1,325.4340 |
) |
|
|
(112,283 |
) |
Net realized gain (loss) on investment |
|
|
— |
|
|
|
(57,599 |
) |
Net change in unrealized appreciation (depreciation) on investment |
|
|
— |
|
|
|
(842,389 |
) |
Balance at September 30, 2025 |
|
|
39,547.2560 |
|
|
$ |
4,226,415 |
|
|
|
|
|
|
|
|
||
|
|
Polkadot (DOT) |
|
|||||
|
|
Units |
|
|
Fair Value |
|
||
Balance at January 1, 2025 |
|
|
816,152.3229 |
|
|
$ |
5,433,942 |
|
Purchases |
|
|
— |
|
|
|
— |
|
Sales |
|
|
(20,109.8832 |
) |
|
|
(92,967 |
) |
Net realized gain (loss) on investment |
|
|
— |
|
|
|
(296,757 |
) |
Net change in unrealized appreciation (depreciation) on investment |
|
|
— |
|
|
|
(1,938,856 |
) |
Balance at September 30, 2025 |
|
|
796,042.4397 |
|
|
$ |
3,105,362 |
|
|
|
|
|
|
|
|
||
|
|
Bitcoin Cash (BCH) |
|
|||||
|
|
Units |
|
|
Fair Value |
|
||
Balance at January 1, 2025 |
|
|
10,611.6785 |
|
|
$ |
4,625,525 |
|
Purchases |
|
|
— |
|
|
|
— |
|
Sales |
|
|
(10,611.6785 |
) |
|
|
(4,461,967 |
) |
Net realized gain (loss) on investment |
|
|
— |
|
|
|
8,794 |
|
Net change in unrealized appreciation (depreciation) on investment |
|
|
— |
|
|
|
(172,352 |
) |
Balance at September 30, 2025 |
|
|
— |
|
|
$ |
— |
|
|
|
|
|
|
|
|
||
|
|
Uniswap (UNI) |
|
|||||
|
|
Units |
|
|
Fair Value |
|
||
Balance at January 1, 2025 |
|
|
— |
|
|
$ |
— |
|
Purchases |
|
|
320,996.9789 |
|
|
|
4,351,306 |
|
Sales |
|
|
(320,996.9789 |
) |
|
|
(3,752,495 |
) |
Net realized gain (loss) on investment |
|
|
— |
|
|
|
(598,811 |
) |
Net change in unrealized appreciation (depreciation) on investment |
|
|
— |
|
|
|
— |
|
Balance at September 30, 2025 |
|
|
— |
|
|
$ |
— |
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
||
|
|
NEAR Protocol (NEAR) |
|
|||||
|
|
Units |
|
|
Fair Value |
|
||
Balance at January 1, 2025 |
|
|
680,674.8151 |
|
|
$ |
3,330,542 |
|
23
Purchases |
|
|
— |
|
|
|
— |
|
Sales |
|
|
(680,674.8151 |
) |
|
|
(3,326,212 |
) |
Net realized gain (loss) on investment |
|
|
— |
|
|
|
(1,425,208 |
) |
Net change in unrealized appreciation (depreciation) on investment |
|
|
— |
|
|
|
1,420,878 |
|
Balance at September 30, 2025 |
|
|
— |
|
|
$ |
— |
|
As of September 30, 2025, Bitcoin represented 72.41% of the total Portfolio Crypto Assets held by the Trust, and Ethereum represented 15.97%, while the remaining 11.62% of the Portfolio Crypto Assets were composed of Ripple, Solana, Cardano, Chainlink, Avalanche, Sui, Litecoin, and Polkadot.
24
|
|
Bitcoin (BTC) |
|
|||||
|
|
Units |
|
|
Fair Value |
|
||
Balance at January 1, 2024 |
|
|
10,998.0429 |
|
|
$ |
462,076,062 |
|
Purchases |
|
|
4.5683 |
|
|
|
297,000 |
|
Sales |
|
|
(370.4699 |
) |
|
|
(23,558,706 |
) |
Net realized gain (loss) on investment |
|
|
— |
|
|
|
11,961,117 |
|
Net change in unrealized appreciation (depreciation) on investment |
|
|
— |
|
|
|
542,192,208 |
|
Balance at December 31, 2024 |
|
|
10,632.1413 |
|
|
$ |
992,967,681 |
|
|
|
|
|
|
|
|
||
|
|
Ethereum (ETH) |
|
|||||
|
|
Units |
|
|
Fair Value |
|
||
Balance at January 1, 2024 |
|
|
67,221.7443 |
|
|
$ |
154,923,265 |
|
Purchases |
|
|
789.9930 |
|
|
|
2,410,001 |
|
Sales |
|
|
(3,000.3985 |
) |
|
|
(10,091,952 |
) |
Net realized gain (loss) on investment |
|
|
— |
|
|
|
5,136,625 |
|
Net change in unrealized appreciation (depreciation) on investment |
|
|
— |
|
|
|
64,785,937 |
|
Balance at December 31, 2024 |
|
|
65,011.3388 |
|
|
$ |
217,163,876 |
|
|
|
|
|
|
|
|
||
|
|
Ripple (XRP) |
|
|||||
|
|
Units |
|
|
Fair Value |
|
||
Balance at January 1, 2024 |
|
|
30,324,826.6436 |
|
|
$ |
18,825,652 |
|
Purchases |
|
|
1,299,451.9601 |
|
|
|
1,086,743 |
|
Sales |
|
|
(938,151.8136 |
) |
|
|
(544,454 |
) |
Net realized gain (loss) on investment |
|
|
— |
|
|
|
(186,855 |
) |
Net change in unrealized appreciation (depreciation) on investment |
|
|
— |
|
|
|
45,158,516 |
|
Balance at December 31, 2024 |
|
|
30,686,126.7901 |
|
|
$ |
64,339,602 |
|
|
|
|
|
|
|
|
||
|
|
Solana (SOL) |
|
|||||
|
|
Units |
|
|
Fair Value |
|
||
Balance at January 1, 2024 |
|
|
239,876.3681 |
|
|
$ |
25,143,841 |
|
Purchases |
|
|
23,587.0202 |
|
|
|
3,366,952 |
|
Sales |
|
|
(6,986.1637 |
) |
|
|
(1,053,930 |
) |
Net realized gain (loss) on investment |
|
|
— |
|
|
|
71,840 |
|
Net change in unrealized appreciation (depreciation) on investment |
|
|
— |
|
|
|
22,148,371 |
|
Balance at December 31, 2024 |
|
|
256,477.2246 |
|
|
$ |
49,677,074 |
|
|
|
|
|
|
|
|
||
|
|
Cardano (ADA) |
|
|||||
|
|
Units |
|
|
Fair Value |
|
||
Balance at January 1, 2024 |
|
|
19,777,360.7670 |
|
|
$ |
11,943,548 |
|
Purchases |
|
|
188,507.7753 |
|
|
|
98,968 |
|
Sales |
|
|
(773,165.7009 |
) |
|
|
(474,890 |
) |
Net realized gain (loss) on investment |
|
|
— |
|
|
|
(561,230 |
) |
Net change in unrealized appreciation (depreciation) on investment |
|
|
— |
|
|
|
5,255,581 |
|
Balance at December 31, 2024 |
|
|
19,192,702.8414 |
|
|
$ |
16,261,977 |
|
|
|
|
|
|
|
|
||
|
|
Avalanche (AVAX) |
|
|||||
|
|
Units |
|
|
Fair Value |
|
||
Balance at January 1, 2024 |
|
|
195,564.0766 |
|
|
$ |
7,859,720 |
|
Purchases |
|
|
32,862.8089 |
|
|
|
1,186,405 |
|
Sales |
|
|
(8,219.9125 |
) |
|
|
(307,043 |
) |
Net realized gain (loss) on investment |
|
|
— |
|
|
|
(31,652 |
) |
Net change in unrealized appreciation (depreciation) on investment |
|
|
— |
|
|
|
(821,818 |
) |
Balance at December 31, 2024 |
|
|
220,206.9730 |
|
|
$ |
7,885,612 |
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
||
25
|
|
Chainlink (LINK) |
|
|||||
|
|
Units |
|
|
Fair Value |
|
||
Balance at January 1, 2024 |
|
|
309,529.3045 |
|
|
$ |
4,803,895 |
|
Purchases |
|
|
49,774.0999 |
|
|
|
815,809 |
|
Sales |
|
|
(17,206.1264 |
) |
|
|
(231,737 |
) |
Net realized gain (loss) on investment |
|
|
— |
|
|
|
(90,437 |
) |
Net change in unrealized appreciation (depreciation) on investment |
|
|
— |
|
|
|
1,531,074 |
|
Balance at December 31, 2024 |
|
|
342,097.2780 |
|
|
$ |
6,828,604 |
|
|
|
|
|
|
|
|
||
|
|
Polkadot (DOT) |
|
|||||
|
|
Units |
|
|
Fair Value |
|
||
Balance at January 1, 2024 |
|
|
732,019.7088 |
|
|
$ |
6,033,306 |
|
Purchases |
|
|
92,155.7549 |
|
|
|
705,143 |
|
Sales |
|
|
(8,023.1408 |
) |
|
|
(51,946 |
) |
Net realized gain (loss) on investment |
|
|
— |
|
|
|
(104,104 |
) |
Net change in unrealized appreciation (depreciation) on investment |
|
|
— |
|
|
|
(1,148,457 |
) |
Balance at December 31, 2024 |
|
|
816,152.3229 |
|
|
$ |
5,433,942 |
|
|
|
|
|
|
|
|
||
|
|
Bitcoin Cash (BCH) |
|
|||||
|
|
Units |
|
|
Fair Value |
|
||
Balance at January 1, 2024 |
|
|
— |
|
|
$ |
— |
|
Purchases |
|
|
13,405.6895 |
|
|
|
5,655,501 |
|
Sales |
|
|
(2,794.0110 |
) |
|
|
(1,107,720 |
) |
Net realized gain (loss) on investment |
|
|
— |
|
|
|
(94,608 |
) |
Net change in unrealized appreciation (depreciation) on investment |
|
|
— |
|
|
|
172,352 |
|
Balance at December 31, 2024 |
|
|
10,611.6785 |
|
|
$ |
4,625,525 |
|
|
|
|
|
|
|
|
||
|
|
NEAR Protocol (NEAR) |
|
|||||
|
|
Units |
|
|
Fair Value |
|
||
Balance at January 1, 2024 |
|
|
— |
|
|
$ |
— |
|
Purchases |
|
|
1,288,276.7565 |
|
|
|
9,201,420 |
|
Sales |
|
|
(607,601.9414 |
) |
|
|
(2,964,735 |
) |
Net realized gain (loss) on investment |
|
|
— |
|
|
|
(1,485,265 |
) |
Net change in unrealized appreciation (depreciation) on investment |
|
|
— |
|
|
|
(1,420,878 |
) |
Balance at December 31, 2024 |
|
|
680,674.8151 |
|
|
$ |
3,330,542 |
|
|
|
|
|
|
|
|
||
|
|
Polygon (MATIC) |
|
|||||
|
|
Units |
|
|
Fair Value |
|
||
Balance at January 1, 2024 |
|
|
5,257,194.4118 |
|
|
$ |
5,114,199 |
|
Purchases |
|
|
236,114.1348 |
|
|
|
229,000 |
|
Sales |
|
|
(5,493,308.5466 |
) |
|
|
(3,797,244 |
) |
Net realized gain (loss) on investment |
|
|
— |
|
|
|
(4,686,742 |
) |
Net change in unrealized appreciation (depreciation) on investment |
|
|
— |
|
|
|
3,140,787 |
|
Balance at December 31, 2024 |
|
|
— |
|
|
$ |
— |
|
|
|
|
|
|
|
|
||
|
|
Litecoin (LTC) |
|
|||||
|
|
Units |
|
|
Fair Value |
|
||
Balance at January 1, 2024 |
|
|
41,303.5713 |
|
|
$ |
3,075,464 |
|
Purchases |
|
|
193.7882 |
|
|
|
13,000 |
|
Sales |
|
|
(41,497.3595 |
) |
|
|
(3,876,820 |
) |
Net realized gain (loss) on investment |
|
|
— |
|
|
|
1,588,611 |
|
Net change in unrealized appreciation (depreciation) on investment |
|
|
— |
|
|
|
(800,255 |
) |
Balance at December 31, 2024 |
|
|
— |
|
|
$ |
— |
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
||
26
|
|
Uniswap (UNI) |
|
|||||
|
|
Units |
|
|
Fair Value |
|
||
Balance at January 1, 2024 |
|
|
— |
|
|
$ |
— |
|
Purchases |
|
|
828,677.0698 |
|
|
|
9,173,913 |
|
Sales |
|
|
(828,677.0698 |
) |
|
|
(7,903,792 |
) |
Net realized gain (loss) on investment |
|
|
— |
|
|
|
(1,270,121 |
) |
Net change in unrealized appreciation (depreciation) on investment |
|
|
— |
|
|
|
— |
|
Balance at December 31, 2024 |
|
|
— |
|
|
$ |
— |
|
|
|
|
|
|
|
|
||
As of December 31, 2024, Bitcoin represented 72.56% of the total Portfolio Crypto Assets held by the Trust, and Ethereum represented 15.87%, while the remaining 11.57% of the Portfolio Crypto Assets were composed of Ripple, Solana, Cardano, Avalanche, Chainlink, Polkadot, Bitcoin Cash, and NEAR Protocol.
Off-Balance Sheet Arrangements
The Trust is not a party to any off-balance sheet arrangements.
Significant Accounting Policies
Basis of Presentation
The financial statements are expressed in U.S. dollars and have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The Trust is an investment company and follows the specialized accounting and reporting guidance in the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC” or “Codification”) Topic 946, Financial Services—Investment Companies.
Transactions of Crypto Assets have been accounted for analogizing to existing accounting standards that management believes are appropriate to the circumstances.
Pursuant to the Statement of Cash Flows Topic of the Codification, the Trust qualifies for an exemption from the requirement to provide a statement of cash flows and has elected not to provide a statement of cash flows.
Use of Estimates
The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates.
Cash
Cash represents cash deposits held at financial institutions and Crypto Asset exchanges. Cash in a bank deposit account, at times, may exceed U.S. federally insured limits. The Trust has not experienced any losses in such accounts and does not believe it is exposed to any significant credit risk on such bank deposits.
Investments and Valuation
Calculation of Valuation
Effective August 31, 2021, the process that the Sponsor developed for identifying a principal market (the “Principal Market”), as described in FASB ASC 820-10, which outlines the application of fair value accounting, was to begin by identifying publicly available, well established and reputable Crypto Asset exchanges selected by the Sponsor and its affiliates at their sole discretion, and then calculating, on each valuation period, the highest volume exchange during the 60 minutes prior to 4:00 pm ET for each asset (the “Principal Market Price”). In evaluating the markets that could be considered principal markets, the Trust considered whether or not the specific markets were accessible to the Trust, either directly or through an intermediary, at the end of each period.
27
Effective February 13, 2023, the Sponsor adapted a nearly identical principal market valuation process, with no material impact to the Trust, using a third-party valuation vendor, Lukka, Inc., to identify publicly available, well established and reputable Crypto Asset exchanges selected by Lukka, Inc. in their sole discretion, including Binance, Bitfinex, Bitflyer, Bitstamp, Bullish, Coinbase, Crypto.com, Gate.io, Gemini, HitBTC, Huobi, itBit, Kraken, KuCoin, LMAX, MEXC Global, OKX and Poloniex, and then determining, on each valuation period, the principal market exchange during the 60 minutes prior to 4:00 pm. ET for each asset. In evaluating the markets that could be considered principal markets, the Trust considered whether or not the specific markets were accessible to the Trust, either directly or through an intermediary, at the end of each period.
The following provides an overview of the Principal Market and the Principal Market Prices for Portfolio Crypto Assets that comprised the majority of the Trust’s assets for the nine month period ended September 30, 2025.
Crypto Asset |
|
Principal Market Price |
|
|
Principal |
|
Bitcoin (BTC) |
|
$ |
114,401.99 |
|
|
Crypto.com |
Ethereum (ETH) |
|
$ |
4,161.61 |
|
|
Crypto.com |
Ripple (XRP) |
|
$ |
2.86 |
|
|
Coinbase |
Solana (SOL) |
|
$ |
208.92 |
|
|
Coinbase |
Cardano (ADA) |
|
$ |
0.80 |
|
|
Coinbase |
Chainlink (LINK) |
|
$ |
21.53 |
|
|
Coinbase |
Avalanche (AVAX) |
|
$ |
30.03 |
|
|
Coinbase |
Sui (SUI) |
|
$ |
3.26 |
|
|
Coinbase |
Litecoin (LTC) |
|
$ |
106.87 |
|
|
Coinbase |
Polkadot (DOT) |
|
$ |
3.90 |
|
|
Coinbase |
Valuation during the periods presented
During the periods presented, the trust carried its investments at fair value in accordance with FASB ASC Topic 820, Fair Value Measurement. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., the “exit price”) in an orderly transaction between market participants at the measurement date. Fair value investments are not adjusted for transaction costs. The Trust utilized this method for purposes of calculating the Trust’s NAV.
In determining fair value, the Trust uses a single, principal market valuation approach. A fair value hierarchy for inputs is used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs are to be used when available. The fair value hierarchy is categorized into three levels based on the inputs as follows:
Level 1 – Valuations based on unadjusted quoted prices in active markets for identical assets or liabilities that the Trust has the ability to access.
Level 2 – Valuations based on quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly. These inputs may include (a) quoted prices for similar assets in active markets, (b) quoted prices for identical or similar assets in markets that are not active, (c) inputs other than quoted prices that are observable for the asset, or (d) inputs derived principally from or corroborated by observable market data by correlation or other means.
Level 3 – Valuations based on inputs that are unobservable and significant to the overall fair value measurement.
The availability of valuation techniques and observable inputs can vary from investment to investment and are affected by a wide variety of factors, including the type of investment, whether the investment is new and not yet established in the marketplace, the liquidity of markets, and other characteristics particular to the transaction.
In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level in the fair value hierarchy which the fair value measurement falls in its entirety is determined based on the lowest level input that is significant to the fair value measurement.
The following summarizes the Trust’s assets accounted for at fair value at September 30, 2025.
|
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
|
Total |
|
||||
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Investments in Crypto Assets, at fair value |
|
$ |
1,634,076,084 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
1,634,076,084 |
|
28
The following summarizes the Trust’s assets accounted for at fair value at December 31, 2024.
|
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
|
Total |
|
||||
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Investments in Crypto Assets, at fair value |
|
$ |
1,368,514,435 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
1,368,514,435 |
|
During the periods ended September 30, 2025 and December 31, 2024, there were no significant transfers into or out of any levels of the fair value hierarchy.
During the period, all of the Trust’s assets were considered “Level 1” valuations, because the valuations were based on quoted prices in markets that are active or for which all significant inputs are observable, either directly or indirectly. These inputs may include (a) quoted prices for similar assets in active markets, (b) quoted prices for identical or similar assets in markets that are not active, (c) inputs other than quoted prices that are observable for the asset, or (d) inputs derived principally from or corroborated by observable market data by correlation or other means.
The Trust generally records receipt of a new Crypto Asset created due to a Hard Fork at the time the Hard Fork is effective. The Trust’s methodology for determining effectiveness of the fork is when two or more recognized exchanges quote prices for the forked coin. Some exchanges and custodians do not honor Hard Forks or may honor Hard Forks in the future. In such cases, the Trust will record receipt of the new Crypto Asset at the time two or more recognized exchanges begin quoting prices for the asset. Although the Trust records the asset into its books and records at the time the fork is effective, as described above, the Trust’s custodian may take an extended period of time to make the forked asset available for transfer, and it may never make the forked asset available for transfer, which could lead to either the Trust holding the asset longer than it would otherwise hold the asset (if it was freely transferable), or a complete write-down in the value of the forked asset. The Trust does not allocate any of the original Crypto Asset’s cost to the new Crypto Asset and recognizes unrealized gains equal to the fair value of the new Crypto Asset received. During the period ended September 30, 2025, there were no Hard Forks recognized or not recognized.
There were no Hard Forks during the period that were not initially recognized but were subsequently recognized.
Crypto Asset transactions are recorded on the trade date. Realized gains and losses from Crypto Asset transactions are determined using the identified cost method. Any change in net unrealized gain or loss is reported in the statements of operations. Commissions and other trading fees are reflected as an adjustment to cost or proceeds at the time of the transaction.
The Trust intermittently receives Airdrops of new Crypto Assets. The use of Airdrops is generally to promote the launch and use of new Crypto Assets by providing a small amount of the new Crypto Assets to the private wallets or exchange accounts of holders of existing related Crypto Assets. Airdropped Crypto Assets can have substantially different Blockchain technology that has no relation to any existing Crypto Asset, and many Airdrops may be without value. The Trust will only record receipt of airdropped Crypto Assets if, when received, the airdropped Crypto Assets have value. Crypto Assets received from Airdrops have no cost basis and the Trust recognizes other income equal to the fair value of the new Crypto Asset received. There were no Airdrops recognized or unrecognized during the nine month period ended September 30, 2025.
Income Taxes
The Trust is classified as a partnership for U.S. federal income tax purposes. The Trust does not record a provision for U.S. federal, U.S. state or local income taxes because the Shareholders report their share of the Trust’s income or loss on their income tax returns. The Trust files an income tax return in the U.S. federal jurisdiction and may file income tax returns in various U.S. states and foreign jurisdictions.
The Trust is required to determine whether its tax positions are more likely than not to be sustained on examination by the applicable taxing authority, based on the technical merits of the position. Tax positions not deemed to meet a more likely than not threshold would be recorded as a tax expense in the current year. As of September 30, 2025 and December 31, 2024, the Trust has determined that no provision for income taxes is required and no liability for unrecognized tax benefits has been recorded. The Trust does not expect that its assessment related to unrecognized tax benefits will materially change over the next 12 months. However, the Trust’s conclusions may be subject to review and adjustment at a later date based on factors including, but not limited to, the nexus of income among various tax jurisdictions; compliance with U.S. federal, U.S. state, and tax laws of jurisdictions in which the Trust operates; and changes in the administrative practices and precedents of the relevant authorities. The Trust is required to analyze all open tax years. Open tax years are those years that are open for examination by the relevant income taxing authority. As of September 30, 2025, the 2024, 2023, 2022, and 2021 tax years remain open for examination. There were no examinations in progress at period end.
Financial Instruments with Off-Balance-Sheet Risk
29
Crypto Assets
Crypto Assets are loosely regulated and there is no central marketplace for currency exchange. Supply is determined by a computer code, not by a central bank, and prices have been extremely volatile. Crypto Asset exchanges have been closed due to fraud, failure or security breaches. Any of the Trust’s assets that reside on an exchange that shuts down may be lost. At September 30, 2025, Crypto Assets of approximately $3,250,484 and no cash resided on exchanges. At December 31, 2024 approximately $7,226,139 and no cash resided on exchanges.
Several factors may affect the price of Crypto Assets, including, but not limited to: supply and demand, investors’ expectations with respect to the rate of inflation, interest rates, currency exchange rates or future regulatory measures (if any) that restrict the trading of Crypto Assets or the use of Crypto Assets as a form of payment. There is no assurance that Crypto Assets will maintain their long-term value in terms of purchasing power in the future, or that acceptance of Crypto Asset payments by mainstream retail merchants and commercial businesses will continue to grow.
Crypto Asset Regulation
As Crypto Assets have grown in popularity and market size, various countries and jurisdictions have begun to develop regulations governing the Crypto Assets industry. To the extent that future regulatory actions or policies limit the ability to exchange Crypto Assets or utilize them for payments, the demand for Crypto Assets will be reduced. Furthermore, regulatory actions may limit the ability of end-users to convert Crypto Assets into fiat currency (e.g., U.S. dollars) or use Crypto Assets to pay for goods and services. Such regulatory actions or policies would result in a reduction of demand, and in turn, a decline in the underlying Crypto Asset unit prices.
The effect of any future regulatory change on the Trust or Crypto Assets in general is impossible to predict, but such change could be substantial and adverse to the Trust and the value of the Trust’s investments in Crypto Assets.
Custody of Crypto Assets
The Custodian serves as the Trust’s Custodian for Crypto Assets for which qualified custody is available. The Custodian is subject to change in the sole discretion of the Sponsor. At September 30, 2025 and December 31, 2024, Crypto Assets of approximately $1,630,825,600 and $1,361,288,296 were held by the Custodian, respectively.
Crypto Asset Trading is Volatile and Speculative
Crypto Assets represent a speculative investment and involve a high degree of risk. Prices of Crypto Assets have fluctuated widely for a variety of reasons including uncertainties in government regulation and may continue to experience significant price fluctuations. If Crypto Asset markets continue to be subject to sharp fluctuations, Shareholders may experience losses as the value of the Trust’s investments decline. Even if Shareholders are able to hold their Shares in the Trust for the long-term, their Shares may never generate a profit, since Crypto Asset markets have historically experienced extended periods of flat or declining prices, in addition to sharp fluctuations.
Over-the-Counter Transactions
Some of the markets in which the Trust may execute its transactions are “over-the-counter” or “interdealer” markets. The participants in such markets are typically not subject to credit evaluation and regulatory oversight as are members of “exchange-based” markets. This exposes the Trust to the risk that a counterparty will not settle a transaction in accordance with its terms and conditions because of a dispute over the terms of the contract (whether or not bona fide) or because of a credit or liquidity problem, thus causing the Trust to suffer a loss. Such “counterparty risk” is accentuated for Crypto Assets where the Trust has concentrated its transactions with a single or small group of counterparties. The Trust is not restricted from dealing with any particular counterparty or from concentrating any or all of its transactions with one counterparty. Moreover, the Trust has no internal credit function that evaluates the creditworthiness of its counterparties. The ability of the Trust to transact business with any one or number of counterparties, the lack of any meaningful and independent evaluation of such counterparty’s financial capabilities and the absence of a regulated market to facilitate settlement may increase the potential for losses by the Trust.
No FDIC or SIPC Protection
The Trust is not a banking institution or otherwise a member of the FDIC or the SIPC. Accordingly, deposits or assets held by the Trust are not subject to the protections enjoyed by depositors with FDIC or SIPC member institutions. The Trust’s Crypto Asset Custodian does however carry bespoke insurance policies related to the Crypto Assets over which it provides custody.
30
The Trust must adapt to technological change in order to secure and safeguard client accounts. While management believes they have developed an appropriate proprietary security system reasonably designed to safeguard the Trust’s Crypto Assets from theft, loss, destruction or other issues relating to hackers and technological attack, such assessment is based upon known technology and threats. To the extent that the Trust is unable to identify and mitigate or stop new security threats, the Trust’s Crypto Assets may be subject to theft, loss, destruction or other attack, which could have a negative impact on the performance of the Trust or result in loss of the Trust’s Crypto Assets.
Risks Associated with a Crypto Assets Majority Control
Since Crypto Assets are virtual and transactions in such currencies reside on distributed networks, governance of the underlying distributed network could be adversely altered should any individual or group obtain 51% control of the distributed network. Such control could have a significant adverse effect on either the ownership or value of the Crypto Asset.
Transaction Authentication
As of the date of these financial statements, the transfer of Crypto Assets from one party to another typically relies on an authentication process by an outside party known as a Miner or Validator. In exchange for compensation, the Miner or Validator will authenticate the transfer of the currency through the solving of a complex algorithm known as a proof of work, or will vouch for the transfer through other means, such as a proof of stake. Effective transfers of and therefore realization of Crypto Assets and tokens are dependent on interactions from these Miners or Validators. In the event that there were a shortage of Miners or Validators to perform this function, that shortage could have an adverse effect on either the fair value or realization of the Crypto Assets.
Other Risks
Management continues to evaluate the impact of current or anticipated military conflict, including between Russia and Ukraine, terrorism, sanctions and other geopolitical events as well as adverse developments in the economy, the capital markets and the Blockchain markets, including rising energy costs, inflation and interest rates, in the United States and globally, and catastrophic events such as fires, floods, earthquakes, tornadoes, hurricanes and global health epidemics, and has concluded that while it is reasonably possible that these events could have a negative effect on the financial performance and operations of the Trust, the specific impact is not readily determinable as of the date of the financial statements. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.
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Item 3. Quantitative and Qualitative Disclosures about Market Risk
The Trust Agreement does not authorize the Trustee to borrow for the payment of the Trust’s ordinary expenses. The Trust does not engage in transactions in foreign currencies which could expose the Trust or holders of Shares to any foreign currency related market risk. The Trust does not invest in derivative financial instruments and has no foreign operations or long-term debt instruments.
Item 4. Controls and Procedures
Disclosure Controls and Procedures
The Trust maintains disclosure controls and procedures that are designed to ensure that information required to be disclosed in its Exchange Act reports is recorded, processed, summarized, and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to the Principal Executive Officer and Principal Financial and Accounting Officer of the Sponsor performing functions equivalent to those a principal executive officer and principal financial and accounting officer of the Trust would perform if the Trust had any officers, and to the Board of Directors of the Sponsor, as appropriate, to allow timely decisions regarding required disclosure.
Under the supervision and with the participation of the Principal Executive Officer and the Principal Financial and Accounting Officer of the Sponsor, the Sponsor conducted an evaluation of the Trust's disclosure controls and procedures, as defined under Exchange Act Rule 13a-15(e). Based on this evaluation, the Principal Executive Officer and the Principal Financial and Accounting Officer of the Sponsor concluded that the Trust’s disclosure controls and procedures were effective as of the end of the period covered by this report.
There are inherent limitations to the effectiveness of any system of disclosure controls and procedures, including the possibility of human error and the circumvention or overriding of the controls and procedures.
Changes in Internal Control Over Financial Reporting
There were no changes in the Trust’s internal controls over financial reporting that occurred during the Trust’s most recently completed fiscal quarter that have materially affected, or are reasonably likely to materially affect, these internal controls.
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PART II – OTHER INFORMATION:
Item 1. Legal Proceedings
None.
Item 1A. Risk Factors
There have been no material changes to the Risk Factors last reported under Item 1A of the registrant’s Annual Report on Form 10-K for the year ended December 31, 2024, other than the update to the risk factors set forth below.
Risks Associated with Digital Assets
The trading prices of many digital assets, including bitcoin, have experienced extreme volatility in recent periods and may continue to do so. Extreme volatility in the future, including further declines in the trading price of bitcoin, could have a material adverse effect on the value of the Shares and the Shares could lose all or substantially all of their value.
The trading prices of many digital assets, including bitcoin, have experienced extreme volatility in recent periods and may continue to do so. For instance, there were steep increases in the value of certain digital assets, including bitcoin, over the course of 2017, followed by steep drawdowns throughout 2018 in digital asset trading prices, including for bitcoin. These drawdowns notwithstanding, digital asset prices, including bitcoin, increased significantly again during 2019, decreased significantly again in the first quarter of 2020 amidst broader market declines as a result of the novel coronavirus outbreak, and increased significantly again over the remainder of 2020 and the first half of 2021. Digital asset prices, including bitcoin, continued to experience significant and sudden changes throughout 2021 followed by steep drawdowns in the third quarter of 2021, as well as throughout 2022. Since then, digital asset prices have continued to fluctuate through 2023, 2024, and early 2025. In October 2025, the crypto markets experienced a sudden flash crash in which automated liquidations reportedly exceeded $19 billion within about 24 hours and total market capitalization fell by roughly 14 percent over several days. The full impact of that event may not yet be fully reflected in the crypto asset ecosystem.
Extreme volatility in the future, including further declines in the trading price of bitcoin, could have a material adverse effect on the value of the Shares and the Shares could lose all or substantially all of their value. Furthermore, negative perceptions, a lack of stability, and the absence of standardized regulation in the digital asset economy may reduce confidence in the digital asset economy and may lead to greater volatility in the price of bitcoin and other digital assets, including a depreciation in value. The Trust is not actively managed and will not take any actions to take advantage, or mitigate the impacts, of volatility in the price of bitcoin.
Risks Related to Trust Investment
The Trust's success depends heavily on the Sponsor, whose limited staffing, potential discontinuance, and conflicts of interest could adversely impact the Trust's management, stability, and the value of the Shares.
The Trust relies heavily on the expertise and contributions of the executive officers and other key personnel of the Sponsor and Bitwise, including Hunter Horsley, Teddy Fusaro, Matthew Hougan, and Hong Kim. These individuals are critical to managing the Trust’s business, operations, and investment strategy. The loss of any of these individuals would be difficult to replace and could involve significant time and expense, potentially delaying or preventing the achievement of the Trust’s objectives. Moreover, the Sponsor and Bitwise do not maintain key man life insurance policies on these executives, which could exacerbate the negative impact of their absence.
Additionally, Shareholders cannot be assured that the Sponsor will be willing or able to continue to serve as sponsor to the Trust for any length of time. If the Sponsor discontinues its activities on behalf of the Trust and a substitute sponsor is not appointed, the Trust will terminate and liquidate its Portfolio Crypto Assets. Even if a substitute sponsor is appointed, there is no guarantee that it will have the requisite experience, knowledge, or expertise to ensure the Trust’s successful operation or its continued viability. The appointment of a substitute sponsor may not necessarily be beneficial to the Trust and could still result in its termination.
Furthermore, the Sponsor manages the Trust’s affairs with significant discretion under the Trust Agreement, which may create conflicts of interest between the Sponsor, its affiliates, and the Trust or its Shareholders. The Sponsor and its affiliates, including the Index Provider, the Committee selected by the Index Provider, and authorized participants, have no fiduciary duties to the Trust or its Shareholders beyond those explicitly outlined in the Trust Agreement. This may allow the Sponsor to prioritize its own interests and the interests of its affiliates over the Trust and its Shareholders. These potential conflicts include, among others, the following:
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By purchasing the Shares, Shareholders agree and consent to the provisions set forth in the Trust Agreement, including the Sponsor’s discretion in managing conflicts. While the Sponsor seeks to allocate investment opportunities fairly, these inherent conflicts of interest could adversely affect the Trust’s operations and returns.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
None.
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Item 3. Defaults Upon Senior Securities
None.
Item 4. Mine Safety Disclosures
Not applicable.
Item 5. Other Information
No executive officers or directors of the Sponsor have
Item 6. Exhibits
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Exhibit Number
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Exhibit Description
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3.1 |
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3.2 |
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10.1 |
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10.2 |
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10.3 |
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10.4 |
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10.5 |
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10.6 |
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31.1 |
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31.2 |
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32.1* |
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32.2* |
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101.INS |
Inline XBRL Instance Document – the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. |
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101.SCH |
Inline XBRL Taxonomy Extension Schema Document |
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104 |
Cover Page Interactive Data File (Formatted as Inline XBRL and contained in exhibit 101) |
* These exhibits are furnished with this Quarterly Report on Form 10-Q and are not deemed filed with the SEC and are not incorporated by reference in any filing of Bitwise 10 Crypto Index Fund under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, whether made before or after the date hereof and irrespective of any general incorporation language contained in such filings.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned in the capacities indicated thereunto duly authorized.
Bitwise Investment Advisers, LLC as Sponsor of Bitwise 10 Crypto Index Fund (BITW) |
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By: |
/s/ Paul Fusaro |
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Name: |
Paul Fusaro |
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Title: |
Chief Operating Officer (Principal Executive Officer)* |
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By: |
/s/ James Bebrin III |
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Name: |
James Bebrin III |
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Title: |
Title: Vice President (Principal Financial Officer and Principal Accounting Officer)* |
Date: November 10 , 2025
* The Registrant is a trust and the persons are signing in their capacities as officers or directors of Bitwise Investment Advisers, LLC, the Sponsor of the Registrant.
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