Bitwise Bitcoin ETF has reported a significant decline in its financial performance for the first quarter of 2026, as detailed in its latest 10-Q filing. The Trust's net assets decreased to $2.55 billion as of March 31, 2026, down from $3.37 billion at the end of 2025. This decline was primarily driven by a net decrease in assets resulting from operations of $768.7 million, which included a net realized and unrealized loss on investments in bitcoin totaling $767.2 million. The Trust's investment income for the quarter was minimal, at just $1, compared to a net investment loss of $1.47 million.
In comparison to the same period in 2025, the Trust's financial metrics show a marked deterioration. The net increase in net assets resulting from operations was a loss of $453.2 million in the first quarter of 2025, indicating a worsening of over $315 million year-over-year. The principal market NAV per share also fell from $47.57 at the end of 2025 to $36.83 by the end of March 2026, reflecting a total return of -22.58% for the quarter.
Operationally, the Trust's bitcoin holdings decreased from approximately 38,468 bitcoin at the end of 2025 to 37,600 bitcoin by March 31, 2026. The Trust engaged in significant transactions during the quarter, including the issuance of 13.22 million shares and the redemption of 14.78 million shares, resulting in a net decrease of 1.56 million shares outstanding. The Trust's strategy continues to focus on providing exposure to bitcoin, with its sole asset being bitcoin itself, which is subject to market volatility.
The filing also outlines the Trust's ongoing reliance on its Sponsor, Bitwise Investment Advisers, LLC, which has agreed to cover normal operating expenses, including a unitary Sponsor Fee of 0.20% per annum of the Trust's bitcoin holdings. The Sponsor has waived this fee on the first $1 billion of assets through July 2024. However, the Trust remains exposed to various risks, including the extreme volatility of bitcoin prices and regulatory changes that could impact its operations and the value of its shares.
Looking ahead, the Trust's management has indicated that it will continue to monitor market conditions and adjust its strategies accordingly. The filing emphasizes the inherent risks associated with investing in bitcoin and the potential for significant fluctuations in the value of the Trust's shares. As the Trust navigates these challenges, it remains committed to providing investors with a transparent and efficient means of gaining exposure to bitcoin.
About Bitwise Bitcoin ETF
Bitwise Bitcoin ETF is a Delaware statutory trust offering investors exposure to bitcoin through exchange-traded shares listed on NYSE Arca. The Trust holds bitcoin as its sole asset, valuing it daily using the CME CF Bitcoin Reference Rate. It enables investors to access bitcoin via traditional brokerage accounts without directly holding the cryptocurrency. Shares are created and redeemed in large blocks by authorized financial institutions, facilitating liquidity and market alignment.
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