10-K: Bitwise 10 Crypto Index ETF Reports 2025 Performance

Bitwise 10 Crypto Index ETF reported a net decrease in assets from operations for 2025, alongside a significant reduction in its management fee and a shift to NYSE Arca listing.

Summary

• Net assets decreased by $335.871 million in 2025, from $1,365.740 million to $1,029.869 million.
• Net decrease in net assets resulting from operations was $(165,855) thousand in 2025, a significant decline from a $664,634 thousand increase in 2024.
• The Trust experienced a net change in unrealized depreciation from Crypto Assets of $(270,937) thousand in 2025, compared to an appreciation of $680,194 thousand in 2024.
• Management fees increased to $33,478 thousand in 2025 from $25,807 thousand in 2024, attributed to an increase in the monthly average net assets.
• The management fee was reduced from 2.50% per annum to 0.75% per annum, effective upon the Trust's listing on NYSE Arca on December 9, 2025.
• Shares of the Trust were approved for listing and began trading on NYSE Arca, Inc. on December 9, 2025, under the ticker symbol BITW, after being withdrawn from OTCQX.
• The Trust redeemed 2,810,000 shares in the fourth quarter of 2025 at an average price of $60.97 per share.
• Bitcoin and Ethereum remain the primary holdings, representing 75.11% and 15.41% of total Portfolio Crypto Assets, respectively, as of December 31, 2025.
• Bitcoin's average price in 2025 was $101,625.05, reaching an all-time high of $125,492.00 on October 6, 2025, but subsequently falling 47.74% to $65,586.99 by February 27, 2026.
• The Trust's Principal Market NAV per share decreased to $59.01 at December 31, 2025, from $67.47 at December 31, 2024, reflecting a total return of -12.54% for 2025.

Sentiment

Score: 4

Explanation: StockSavvy.ai views this as a moderately negative filing due to the significant decline in net assets and total return in 2025, driven by unrealized depreciation in crypto assets and recent market volatility. While the management fee reduction and NYSE Arca listing are positive operational developments, the financial performance indicates a challenging year.

Positives

• The management fee was significantly reduced from 2.50% to 0.75% per annum, effective December 9, 2025, which benefits shareholders by lowering ongoing costs.
• Shares were approved for listing and began trading on NYSE Arca, Inc. on December 9, 2025, enhancing liquidity and accessibility for investors.
• Net realized gain from Crypto Assets increased significantly to $138,560 thousand in 2025 from $10,247 thousand in 2024.
• The Trust successfully converted to an Exchange Traded Product (ETP) and listed on a major exchange, indicating operational maturity.
• The Trust maintained effective internal control over financial reporting as of December 31, 2025, as attested by KPMG LLP, demonstrating strong internal governance.

Negatives

• Net decrease in net assets resulting from operations of $(165,855) thousand in 2025, a substantial reversal from a $664,634 thousand increase in 2024.
• Net change in unrealized appreciation (depreciation) from Crypto Assets was a depreciation of $(270,937) thousand in 2025, compared to an appreciation of $680,194 thousand in 2024.
• Total return at net asset value was -12.54% in 2025, a significant decline from 94.77% in 2024.
• Principal Market NAV per share decreased to $59.01 at December 31, 2025, from $67.47 at December 31, 2024.
• Bitcoin's price fell 47.74% from its all-time high on October 6, 2025, to $65,586.99 as of February 27, 2026, indicating significant recent volatility and potential for further declines.
• The Trust's assets under custody decreased from $1,361,288,296 at December 31, 2024, to $1,048,138,633 at December 31, 2025.

Risks

• Crypto Assets are subject to significant price volatility, which can impact investments in the Trust.
• The value of Crypto Assets may be subject to momentum pricing, resulting in inaccurate valuations, heightened volatility, and potential adverse impacts on the value of an investment in the Shares.
• The value of the Crypto Assets is dependent on prices established by Crypto Asset exchanges and other Crypto Asset trading venues, the instability, failure, closure, or manipulation of which could adversely affect an investment in the Trust.
• Limited adoption, usage, and evolving market challenges for Bitcoin, Ether, and other Crypto Assets could adversely impact the Trust and the value of its Shares.
• Changes in the governance of a Crypto Asset's Blockchain network may not receive sufficient support from users, Validators or Miners, which may negatively affect that Blockchain network's ability to grow and respond to challenges.
• Many Crypto Asset Networks and protocols, including some of the networks and protocols of Portfolio Crypto Assets, are supported by foundations and/or founding teams that may influence the development of the Crypto Asset Networks or protocols and could adversely affect the value of the Portfolio Crypto Assets.
• A temporary or permanent fork could adversely affect the value of the Shares and the operations of the Trust.
• Competition from the emergence or growth of other Crypto Assets or the development of other methods of investing in Crypto Assets could have a negative impact on the price of Crypto Assets and adversely affect the value of the Shares.
• Political or economic crises may motivate large-scale sales of Crypto Assets and/or Ether, which could result in a reduction in the price of Ether and adversely affect an investment in the Shares.
• Evolving regulatory landscape and increased scrutiny of Crypto Assets may adversely impact the business and reputation of the Trust and the Sponsor.
• Decentralized governance and amendments to Bitcoin and Ethereum networks, if accepted and authorized by the Bitcoin or Ethereum networks, could adversely affect an investment in the Trust.
• Fluctuations in the supply of Bitcoin and Ether due to regulatory, technological, and deflationary factors could adversely affect the value of the Shares.
• If a malicious actor or botnet gained control over the Bitcoin or Ethereum networks, it could adversely impact the value of the Shares and the Trust's ability to operate.
• Certain Portfolio Crypto Assets utilize DeFi protocols, which are typically developed on top of other public Blockchain networks and are therefore subject to the risks of the underlying public Blockchain networks.
• The limited operating history of the Trust and the Index, as well as potential methodological changes to the Index which the Trust relies on, could adversely impact the performance of the Trust.
• As a public company, the Trust's compliance with public reporting obligations and exchange listing standards imposes significant costs and operational challenges, and failure to meet these standards could adversely affect the market price and liquidity of the Shares.
• As the Crypto Asset ecosystem has expanded, it has attracted increasing regulatory attention from U.S. regulators, and evolving regulatory frameworks may impact the Portfolio Crypto Assets classification and treatment. These developments could significantly influence the Trust's compliance requirements, valuation strategies, result in Extraordinary Expenses, and substantially impact the value of the Shares.
• The Shares may trade at a premium or discount to the value of the NAV Per Share due to holding period restrictions under Rule 144, the lack of an ongoing redemption program, and market supply and demand, which could adversely affect an investment in the Shares.
• The Shareholder may be subject to certain U.S. federal income tax risks, and the treatment of Crypto Asset for U.S. federal income tax purposes is uncertain.
• The Trust's success depends heavily on the Sponsor, whose limited staffing, potential discontinuance, and conflicts of interest could adversely impact the Trust's management and stability and the value of the Shares.
• The success of the Trust's activities will be affected by general economic and market conditions, which could have a negative effect on the Trust's activities.
• The Trust's concentrated investment strategy in Crypto Assets and long-term performance, with limited diversification, could adversely impact the Trust's performance and the value of the Shares.
• The Trust will select investments for the Trust in large part on the basis of information and data provided in the Index, which relies on financial reporting by third parties and such reporting may be subject to financial fraud.
• The Trust's investments in Portfolio Crypto Assets may be illiquid and difficult to value, which could lead to substantial variability between the Trust's NAV and the market price of its Shares, and adversely affect the value of the Shares.
• The Trust purchases Portfolio Crypto Assets from various counterparties and if one of these counterparties were to become insolvent or otherwise default on its obligations to the Trust, it could result in financial loss and business disruption.
• Investing in the Trust may result in the total loss of investment due to passive management strategies, cybersecurity vulnerabilities, and inadequate recovery options for lost assets.
• The Sponsor may experience loss or theft of its Portfolio Crypto Assets during the transfer of Portfolio Crypto Assets from the Custodian to the Sponsor or to Crypto Asset trading venues, which could adversely affect the value of the Shares.
• The Custodian may experience loss or theft of the Portfolio Crypto Assets due to malicious attacks, security failures, or other disruptions, which could adversely affect the value of the Shares.
• The value of the Shares may be adversely affected if the Trust is required to indemnify the Sponsor, the Custodian, or other service providers, which could result in the sale of Portfolio Crypto Assets.
• Shareholders have limited statutory shareholder rights and rely entirely on the Sponsor for Trust management, which could adversely affect the Trust and the value of the Shares.
• Shareholders may be adversely affected by the lack of independent advisers representing investors in the Trust.
• The Trust's rules-driven investment policies and Index Methodology may lead to the Index's underrepresentation of growing Crypto Assets and limit its market representation.
• The development and commercialization of the Index are highly competitive, and the Trust may not be commercially successful.
• The Trust will not track the Index exactly and the Trust's investments may diverge from those comprising the Index, potentially impacting performance of the Trust.
• The Sponsor's responsibility for determining the Trust's NAV Per Share and valuation methodologies, including reliance on third-party data and rule-based methodologies, may introduce valuation risks that could adversely affect the value of the Shares.
• A substantial majority of the Portfolio Crypto Assets is concentrated in two digital assets, Bitcoin and Ether, and any loss in value of Bitcoin or Ether could have an adverse effect on the value of the Shares and Shareholders may suffer a loss on their investment.
• If Shareholders enter into share lending arrangements with respect to Shares of the Trust, Shareholders may experience various risks associated with these arrangements.
• The Trust's inability to accept new subscribers could lead to a decline in Portfolio Crypto Assets represented by each Share, which could adversely affect the value of the Shares.
• There is no guarantee that an active trading market for the Shares will continue to develop.
• Intellectual property rights claims may adversely affect the Trust and an investment in the Shares.
• The Trust is not a registered investment company and is not subject to the CEA, which limits Shareholder protections and may increase the Trust's exposure to unregulated risks.
• If the Crypto Asset Networks of the Portfolio Crypto Assets are used to facilitate illicit activities, businesses that facilitate transactions in the Portfolio Crypto Assets could be at increased risk of criminal or civil liability, which could negatively affect the value of the Shares.
• The Sponsor may be required to provide certain information in order to comply with anti-money laundering requirements and public disclosure obligations.
• Regulatory changes or actions by federal or state executives or legislators may affect the value of the Shares or restrict the use of one or more Crypto Assets, Validating or Mining activity or the operation of their networks or the Crypto Asset markets in a manner that adversely affects the value of the Shares.
• International regulatory divergence may affect the global acceptance and liquidity of Crypto Assets, potentially impacting the Crypto Asset market, the Portfolio Crypto Assets, and the Trust's value.
• The lack of full insurance and Shareholders limited rights of legal recourse against the Trust, the Sponsor, and the Custodian expose the Trust and its Shareholders to the risk of loss of the Trust's Ether for which no person is liable.
• If regulators subject the Trust, Sponsor, or certain service providers to regulation as a money service business or money transmitter, this could result in Extraordinary Expenses to the Trust or the Sponsor and also result in decreased liquidity for the Shares.
• The open-source structure, the lack of compensation, and limited resources to address emerging technical issues for the Bitcoin network and Ethereum network protocols could damage the Bitcoin network and the Ethereum network and adversely affect an investment in the Trust.
• High transaction fees and changes in Miner or Validator rewards may adversely affect the usage, security, and attractiveness of the Bitcoin and Ethereum networks, potentially diminishing trust in these networks and adversely affecting the value of the Shares.
• The creation of newly mined Bitcoin and immediate sales by institutional Mining operations may adversely impact Bitcoin prices and the value of an investment in the Shares.
• Forks in the Bitcoin and Ethereum networks could adversely affect the Trust's Portfolio Crypto Asset holdings and the value of an investment in the Trust.
• The cloning of the Ethereum and Bitcoin networks could negatively impact the value of Bitcoin, Ether, and an investment in the Trust.
• Smart contracts and dApps can be vulnerable to technical or economic exploitation that can negatively impact the functioning of DeFi protocols, potentially reducing demand for Crypto Assets like Bitcoin and Ether and negatively impacting the value of the Shares.
• DeFi protocols rely on software code that is distributed in an open-source fashion, which opens the possibility of others replicating the code and creating protocol competitors with relative ease.
• DeFi protocols are vulnerable to Oracle disruptions and inaccuracies which could negatively impact the price of their native Crypto Assets.
• DeFi protocols relying on collateralized borrowing are exposed to collateral risks, which could lead to losses and negatively impact the value of native Crypto Assets, the Portfolio Crypto Assets and the value of the Shares.
• Staking activity may expose Portfolio Crypto Assets to increased security risks and limit the Trust's ability to rebalance its holdings.
• DeFi protocols and Crypto Assets used in DeFi protocols, which operate on smart contract platforms, pose heightened regulatory concerns even beyond those that face Crypto Asset Networks and Crypto Assets generally.

Future Outlook

The Trust's future outlook is tied to the highly volatile and evolving Crypto Asset market. While the Trust aims to track the Bitwise 10 Large Cap Crypto Index, its performance is subject to significant price fluctuations, regulatory changes, and technological advancements in the blockchain space. The Sponsor may pursue incidental opportunities like Airdrops or Staking to generate additional returns, but these activities also carry risks. The regulatory environment for digital assets is becoming more defined with new legislation and executive orders, but uncertainty remains regarding their long-term impact on market stability and asset classification. The Trust anticipates continued compliance with evolving reporting obligations and exchange listing standards.

Management Comments

• The Trust believes that it has met its principal investment objective.
• The Sponsor expects the market price of the Shares to fluctuate over time in response to the market prices of Portfolio Crypto Assets.
• The Sponsor strives to minimize tracking error (e.g., divergence between the performance of the Trust and the Index) by managing costs and price slippage during trade execution, and holding the assets in the Index.
• The Sponsor has the discretion, when possible and prudent, to take advantage of incidental opportunities to generate additional returns in excess of the Index that arise from the Portfolio Crypto Assets held by the Trust through, for example, Airdrops, Staking, Emissions, Hard Forks, lending or similar network events and activities, if the Sponsor determines that any such activities are in the best interest of the Trust and its Shareholders.
• The Sponsor does not consider these activities inconsistent with its investment objective to invest in a portfolio to track the Index or inconsistent with its disclosure that the Trust is managed as a passive investment vehicle.
• While the Trust currently does not participate in any staking activities, it may in the future engage in further staking activities if the Trust deems such activity to be in the best interests of shareholders.
• The Sponsor will notify the Shareholders in the Trust prior to modifying any of the investment restrictions described in this section.
• The Sponsor is not aware of any intellectual property rights claims that may prevent the Trust from operating and holding any Crypto Assets.
• The Principal Executive Officer and the Principal Financial and Accounting Officer of the Sponsor concluded that, as of December 31, 2025, the Trust’s disclosure controls and procedures were effective in causing material information relating to the Trust to be recorded, processed, summarized and reported by management of the Sponsor on a timely basis and to ensure the quality and timeliness of the Trust’s public disclosures with the SEC.
• The Principal Executive Officer and Principal Financial and Accounting Officer of the Sponsor concluded that the Trust maintained effective internal control over financial reporting as of December 31, 2025.

Industry Context

StockSavvy.ai notes that the Crypto Asset industry continues its rapid evolution, marked by significant regulatory developments in 2025. The approval of spot Bitcoin and Ethereum ETFs by the SEC in January and July 2024, respectively, signals a growing mainstream acceptance and regulatory clarity for these major digital assets. However, the market remains highly volatile, as evidenced by Bitcoin's sharp decline after reaching an all-time high in October 2025. Legislative efforts like the Fit21 Act and the GENIUS Act indicate a concerted push towards establishing comprehensive federal frameworks for digital assets and stablecoins, which could reduce regulatory uncertainty but also impose new compliance burdens. The ongoing scrutiny of DeFi protocols and stablecoin issuers by agencies like the SEC and CFTC highlights persistent concerns about market integrity and illicit activities. The industry is also grappling with technological challenges related to scalability and security, with new exploits and network outages continuing to pose risks. Competition from alternative Crypto Assets and investment vehicles remains intense, pushing for continuous innovation and potentially fragmenting market share.

Comparison to Industry Standards

• The Trust's management fee of 0.75% per annum, reduced from 2.50%, aligns it more closely with competitive rates seen in newly approved spot Bitcoin and Ethereum ETFs, which typically feature lower expense ratios than older, privately offered crypto funds.
• The listing on NYSE Arca, Inc. positions the Trust alongside other regulated exchange-traded products, offering enhanced liquidity and accessibility compared to its previous OTCQX quotation.
• The Trust's concentration in Bitcoin (75.11%) and Ethereum (15.41%) as of December 31, 2025, reflects a common strategy among large-cap crypto index funds, mirroring the market capitalization dominance of these two assets. This concentration is comparable to other major crypto index products that track broad market performance.
• The total return of -12.54% for 2025, while negative, should be assessed against the broader crypto market performance during the same period, which experienced significant volatility and a notable downturn in Bitcoin's price towards the end of the year and into early 2026. This performance is indicative of the inherent risks and market cycles within the crypto industry, rather than a specific underperformance against its index.
• The Trust's reliance on Coinbase Custody Trust Company, LLC, a New York-regulated fiduciary and qualified custodian, meets industry best practices for institutional-grade crypto asset custody, offering a level of security and regulatory compliance comparable to leading digital asset custodians.

Management Changes

Corporate Governance

Legal Proceedings

• There are no current, past, pending or, to the Sponsor's knowledge, threatened legal proceedings or administrative actions either by or against the Trust or the Sponsor that could have a material effect on the Trust's or the Sponsor's business, financial condition, or operations and any current, past or pending trading suspensions by a securities regulator.

Related Party Transactions

• The Sponsor and its officers, directors, employees, and affiliates may engage in outside investment-related activities, including managing unaffiliated funds or serving on boards, which may create conflicts of interest.
• The Sponsor and its affiliates may engage in proprietary trading or maintain positions in Crypto Assets held by the Trust, potentially influencing prices or availability.
• The Sponsor may form additional investment vehicles (Additional Trusts or Future Trusts) with similar objectives, potentially leading to conflicts in investment structuring or allocation of opportunities.
• The Trust uses the Index, which is administered by Bitwise Index Services, LLC, an affiliate of the Sponsor, under a limited, non-exclusive, revocable license agreement at no cost.
• The Sponsor may cause the Trust to invest in Crypto Assets in which its affiliates have a financial interest or engage in transactions with affiliated persons.
• Affiliates of the Sponsor, and members of the Committee, may have or make future investments in the Trust, potentially representing a significant portion of the NAV.

Stakeholder Impact

• Shareholders experienced a negative total return of -12.54% in 2025. They benefit from the reduced management fee (0.75% from 2.50%) and enhanced liquidity due to NYSE Arca listing, but face risks from crypto market volatility, limited statutory rights, and reliance on the Sponsor's discretion.
• The Sponsor (Bitwise Investment Advisers, LLC) continues to manage the Trust and receives management fees. It bears responsibility for most ordinary operating expenses and faces potential conflicts of interest due to other business activities and discretion over the Trust.
• The Custodian (Coinbase Custody Trust Company, LLC) continues to provide custody services for the Trust's crypto assets. Its security measures and financial stability are critical to the Trust's asset safety.
• Regulatory Authorities (SEC, CFTC, FinCEN, etc.) are increasingly scrutinizing the crypto market, with evolving regulatory frameworks (e.g., Fit21, GENIUS Act) impacting the Trust's compliance obligations and the broader crypto market.

Next Steps

• The Sponsor may engage in staking activities in the future if deemed in the best interest of shareholders.
• If the Sponsor makes material changes to the Trust's staking policy, it will disclose such changes on Form 8-K.
• The President's Working Group on Digital Asset Markets is tasked with proposing a federal regulatory framework for digital assets within 180 days (from January 23, 2025).
• California's Digital Financial Assets Law (DFAL) licensing regime is scheduled to take effect on July 1, 2026.
• The SEC's appeal on XRP's regulatory status in secondary market transactions is currently pending before the Second Circuit Court of Appeals.
• The Trust intends to rebalance its holdings to conform to the Index upon resolution of any discrepancies.
• The Index Methodology is actively researched and evaluated and may be adjusted over time.

Key Dates

Recommendation

The Trust experienced a significant negative return and unrealized depreciation in 2025, reflecting the inherent volatility and downturns in the crypto market. While the reduction in management fees and the NYSE Arca listing are positive developments for long-term accessibility and cost-efficiency, the immediate financial performance and the ongoing market uncertainty, particularly Bitcoin's recent sharp decline, suggest a cautious approach. StockSavvy.ai recommends a "hold" as the Trust's performance is directly tied to the highly speculative and volatile crypto market, and while there are structural improvements, the asset class itself carries substantial risk. Investors should monitor market conditions and regulatory developments closely.

Keywords

Crypto Index ETF, Bitcoin, Ethereum, XRP, Solana, Cardano, Chainlink, Litecoin, Avalanche, SUI, Polkadot, Digital Assets, Blockchain, SEC Filing, 10-K, Financial Report, Investment Fund, Asset Management, Cryptocurrency Market, NYSE Arca, Coinbase Custody, Regulatory Risk, Market Volatility, DeFi, Staking, Management Fee, Net Asset Value, Financial Performance, Risk Factors