Bitwise 10 Crypto Index Fund Reports Significant Decline in Financial Performance for Q1 2025

Bitwise 10 Crypto Index Fund (BITW) reported a significant decline in its financial performance for the first quarter of 2025, as detailed in its latest 10-Q filing. The Trust's net assets decreased to approximately $1.11 billion as of March 31, 2025, down from $1.37 billion at the end of 2024. This decline was primarily driven by a net decrease in net assets resulting from operations of $255.6 million, compared to a net increase of $421.9 million during the same period in 2024. The Trust's net investment loss for the quarter was $7.86 million, reflecting an increase in management fees to $7.86 million from $5.88 million in the previous year.

The Trust's investment portfolio, which primarily consists of cryptocurrencies, experienced substantial volatility. The total investments in crypto assets at fair value were reported at $1.11 billion, a decrease from $1.37 billion at the end of 2024. Bitcoin remains the largest holding, representing approximately 77.90% of the total portfolio, followed by Ethereum at 10.68%. The Trust recorded a net realized gain from crypto assets of $8.87 million for the quarter, a notable increase from $1.52 million in the prior year, but this was overshadowed by a net change in unrealized depreciation of $256.6 million, compared to a gain of $426.2 million in the same quarter of 2024.

Operationally, the Trust maintained a consistent share count of 20,241,947 shares outstanding, with no new subscriptions or redemptions reported during the quarter. The Trust's management continues to focus on tracking the Bitwise 10 Large Cap Crypto Index, with a correlation of 99.99% between the portfolio and the index as of the end of March 2025. The Trust's management fee, which is set at 2.5% per annum, is a significant expense that has increased in line with the growth in net asset value over the past year.

Looking ahead, the Trust's management acknowledges the ongoing volatility in the cryptocurrency market, which poses risks to the value of its investments. The filing highlights various factors that could impact future performance, including regulatory changes, market conditions, and the speculative nature of crypto assets. The Trust's management remains cautious, emphasizing that actual results may differ materially from forward-looking statements due to these uncertainties. The Trust continues to adapt its strategies in response to market dynamics while focusing on its long-term investment objectives.