Fidelity Wise Origin Bitcoin Fund reported a significant decline in its financial performance for the first quarter of 2026, with net assets decreasing from approximately $17.6 billion at the end of 2025 to $12.8 billion by March 31, 2026. This decline was primarily attributed to a drop in the price of bitcoin, which fell by 22.10% during the quarter, alongside a reduction in outstanding shares from 231,403,476 to 216,003,476. The net asset value (NAV) per share also decreased by 22.15%, from $76.21 to $59.33, reflecting the overall downturn in the cryptocurrency market.
The Trust's financial statements revealed a net decrease in net assets resulting from operations of $3.7 billion, driven largely by a net change in unrealized depreciation on bitcoin investments amounting to $3.8 billion. Additionally, the Trust recorded a net realized loss of $100.5 million from bitcoin sold for redemptions, partially offset by a net realized gain of $205.2 million from bitcoin distributed for redemptions. In comparison, the previous fiscal period saw a net decrease of $2.2 billion in net assets, indicating a worsening trend in financial performance.
Operationally, the Trust experienced a notable reduction in its bitcoin holdings, with the quantity of bitcoin owned decreasing from 201,684 to 188,144 during the quarter. This reduction was a direct result of net redemptions of shares, which corresponded to net sales of bitcoin. The Trust's investment strategy remains focused solely on bitcoin, which exposes it to significant market risks associated with the cryptocurrency's volatility. The Trust does not engage in active management or utilize leverage, maintaining a passive investment approach.
In terms of customer engagement, the Trust issued 28.7 million shares while redeeming 44.1 million shares during the quarter, reflecting a net decrease of 15.4 million shares. This activity indicates a shift in investor sentiment, likely influenced by the declining bitcoin prices. The Trust's operational structure remains unchanged, with Fidelity Digital Assets serving as the custodian and Fidelity Service Company providing administrative services.
Looking ahead, the Trust's management has indicated that it will continue to monitor market conditions closely. The Trust's investment objective remains to track the performance of bitcoin as measured by the Fidelity Bitcoin Reference Rate, adjusted for expenses and liabilities. However, the outlook remains uncertain due to the inherent volatility of bitcoin and potential regulatory changes that could impact the cryptocurrency market. The Trust's ability to navigate these challenges will be critical in maintaining investor confidence and stabilizing its financial performance in the coming quarters.
About Fidelity Wise Origin Bitcoin Fund
The Fidelity Wise Origin Bitcoin Fund is an exchange-traded trust that provides investors exposure to bitcoin by holding and valuing its digital assets based on a proprietary index. It facilitates access to bitcoin markets through a regulated structure, offering liquidity, transparency, and security without direct ownership or transfer of bitcoin. The fund operates passively, tracking bitcoin’s performance and ensuring compliance with regulatory standards.
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