10-Q: Bitwise Bitcoin ETF Q1 2026 Financial Results

Bitwise Bitcoin ETF reports a net decrease in assets for Q1 2026, driven by bitcoin price depreciation and net share redemptions.

Summary

• Net assets decreased from $3.37 billion on December 31, 2025, to $2.55 billion on March 31, 2026.
• The Trust experienced a net investment loss of $1.47 million for the quarter.
• Net realized and unrealized loss on bitcoin investments totaled $767.19 million, primarily due to the decline in bitcoin price from $87,315.53 to $67,831.76.
• The Trust held 37,600.71 bitcoin as of March 31, 2026.
• Total return at net asset value for the quarter was -22.58%.

Sentiment

Score: 5

Explanation: StockSavvy.ai views this as a neutral report, as the financial decline is a direct reflection of market-wide bitcoin price volatility rather than internal operational issues.

Positives

• The Trust maintains a simple, transparent structure with bitcoin as its sole asset.
• The Sponsor continues to cover all normal operating expenses, including service provider fees, through a unitary 0.20% management fee.
• The Trust successfully processed both creations and redemptions, demonstrating operational liquidity.

Negatives

• Net assets declined by approximately 24% during the quarter.
• The Trust recorded a net decrease in net assets resulting from operations of $768.66 million.
• There was a net outflow of 1,560,000 shares during the period.

Risks

• Extreme volatility in the trading price of bitcoin directly impacts the value of the Shares.
• The Trust's value is highly dependent on the continued acceptance and adoption of bitcoin and blockchain technology.
• Regulatory changes or actions by the SEC or other bodies could restrict the operation of the Trust or the bitcoin market.
• Reliance on third-party service providers, including the Bitcoin Custodian, exposes the Trust to potential operational failures.
• The Shares may trade at a premium or discount to the actual NAV per share.

Future Outlook

The Trust does not provide specific forward-looking financial guidance, noting that its performance is tied to the price of bitcoin and market conditions. The Sponsor continues to manage the Trust according to its stated investment objective.

Management Comments

• Management notes that interim period results are not necessarily indicative of results for a full-year period.
• The Sponsor emphasizes that it does not have a duty to update forward-looking statements unless required by law.

Industry Context

StockSavvy.ai notes that the performance of the Bitwise Bitcoin ETF is consistent with the broader spot bitcoin ETF market, which has seen significant volatility and net outflows during periods of bitcoin price correction in early 2026.

Comparison to Industry Standards

• The 0.20% expense ratio remains competitive within the spot bitcoin ETF landscape.
• The use of the CME CF Bitcoin Reference Rate New York Variant is standard practice for institutional-grade bitcoin ETPs.

Legal Proceedings

• None.

Related Party Transactions

• The Trust pays a 0.20% annual Sponsor Fee to Bitwise Investment Advisers, LLC.

Stakeholder Impact

• Shareholders are directly exposed to the price volatility of bitcoin.
• Authorized Participants continue to facilitate the creation and redemption process.

Next Steps

• Continued daily calculation of NAV.
• Ongoing management of bitcoin holdings and payment of Sponsor Fee.
• Monitoring of regulatory environment for digital assets.

Key Dates

Recommendation

The Trust is a passive vehicle tracking the price of bitcoin. A hold recommendation is appropriate for investors seeking long-term exposure to bitcoin, as the ETF is functioning as intended despite market-driven price declines.

Keywords

Bitwise Bitcoin ETF, BITB, Bitcoin, Cryptocurrency, ETF, Digital Assets, SEC Filing