Fidelity Wise Origin Bitcoin Fund Reports Significant Decline in Financial Performance for Q1 2025

Fidelity Wise Origin Bitcoin Fund reported a significant decline in its financial performance for the first quarter of 2025, with net assets decreasing to approximately $16.3 billion from $18.8 billion at the end of 2024. This decline was primarily driven by a decrease in the price of bitcoin, which fell by 11.15% during the quarter, and a reduction in outstanding shares from 230,678,476 to 225,528,476. The net asset value (NAV) per share also decreased by 11.54%, dropping from $81.56 to $72.42. The Trust experienced a net decrease in net assets resulting from operations of $2.24 billion, largely due to unrealized depreciation on bitcoin investments.

In comparison to the previous fiscal period, the Trust's financial results reflect a stark contrast. For the same quarter in 2024, the Trust reported a net increase in net assets of $2.63 billion, attributed to a substantial rise in bitcoin prices and an increase in outstanding shares. The Trust's investment income for the current quarter was recorded at zero, while expenses surged to $11.47 million, primarily due to increased sponsor fees, which rose significantly from $2.83 million in the previous year to $11.47 million in the current quarter.

Operationally, the Trust's bitcoin holdings decreased from 201,556.08 bitcoins at the end of 2024 to 196,932.77 bitcoins by March 31, 2025. This reduction was a result of net redemptions of shares, which corresponded to the sale of bitcoin to facilitate these redemptions. The Trust issued 31.6 million shares during the quarter but also redeemed 36.75 million shares, indicating a net decrease in shares outstanding. The Trust's total investment in bitcoin, valued at $16.34 billion, represents 100% of its net assets.

The filing also highlights strategic developments, including the Trust's passive management approach and its objective to track the performance of bitcoin as measured by the Fidelity Bitcoin Reference Rate. The Trust does not engage in active management strategies or derivatives, focusing solely on bitcoin investments. The Sponsor, FD Funds Management LLC, has assumed most operational expenses, which has been a critical factor in managing the Trust's financial health.

Looking ahead, the Trust's management remains cautious, acknowledging the inherent volatility in bitcoin prices and the potential impact of market conditions on future performance. The Trust's ability to navigate these challenges will be crucial as it continues to seek to provide investors with a cost-effective means of investing in bitcoin without the complexities of direct ownership. The management has not indicated any immediate changes to its operational strategy but will continue to monitor market conditions closely.