Bitwise 10 Crypto Index Fund SEC 10-Q Report

The Bitwise 10 Crypto Index Fund, a Delaware Statutory Trust that facilitates investment in the Crypto Asset market by holding a diversified portfolio of Crypto Assets, has released its Form 10-Q report for the first quarter of 2025. The report provides a comprehensive overview of the fund's financial performance and operational activities, reflecting the challenges and opportunities faced in the volatile crypto market.

Financial Highlights

• Net investment gain (loss): The fund reported a net investment loss of $(7,859,042), primarily due to management fee expenses for the period.
• Net realized gain (loss) from Crypto Assets: The fund achieved a net realized gain of $8,866,176, driven by the sales of Bitcoin and Ethereum.
• Net change in unrealized appreciation (depreciation) from Crypto Assets: The fund experienced a significant net change in unrealized depreciation of $(256,649,161), mainly due to a decrease in the fair value of Bitcoin and Ethereum.
• Net increase (decrease) in Net Assets resulting from operations: The fund's net assets decreased by $(255,642,027), impacted by the substantial depreciation in Crypto Asset values.

Business Highlights

• Trust Overview: The Bitwise 10 Crypto Index Fund aims to closely track the Bitwise 10 Large Cap Crypto Index, with a reported correlation of 99.99% as of March 31, 2025.
• Portfolio Composition: As of March 31, 2025, Bitcoin and Ethereum are the dominant assets in the Trust's portfolio, representing 77.74% and 10.66% of the total Portfolio Crypto Assets, respectively. The remaining 11.60% includes Ripple, Solana, Cardano, Chainlink, Avalanche, Sui, Litecoin, and Polkadot.
• Operational Activities: The Trust engages in issuing shares, rebalancing its portfolio monthly, and selling assets to cover management fees. The Trust does not engage in any redemption program, which affects the market price of its shares.
• Management Fee: The Trust incurs a management fee of 2.5% per annum, which is paid monthly in arrears. This fee covers most of the Trust's ordinary administrative and overhead expenses.
• Market Price and NAV Discrepancy: The Trust's shares have traded at a significant discount to the NAV, with an average discount of 16.43% from December 9, 2020, to March 31, 2025. The highest premium recorded was 649.38% on December 16, 2020.
• Future Outlook: The Trust continues to monitor the impact of regulatory changes, market volatility, and geopolitical events on its operations. The management believes that while these factors could affect the Trust's performance, the specific impact is not readily determinable.
• Valuation Methodology: The Trust uses a principal market valuation approach, utilizing prices from reputable exchanges to determine the fair value of its Crypto Assets. This method ensures that the Trust's NAV reflects current market conditions.
• Custody and Security: The Trust's Crypto Assets are primarily held by Coinbase Custody Trust Company, LLC, which provides qualified custody services. The Trust emphasizes the importance of safeguarding its assets against technological threats and security breaches.

SEC Filing: Bitwise 10 Crypto Index Fund [ BITW ] - 10-Q - May. 12, 2025