10-Q: Bitwise Chainlink ETF Q1 2026 Financial Results

The Bitwise Chainlink ETF reported a net decrease in assets of $2.84 million for its first quarter of operations ending March 31, 2026, driven by depreciation in the underlying asset price.

Summary

• The Trust commenced operations on January 13, 2026.
• Net assets as of March 31, 2026, totaled $15,481,264.
• The Trust experienced a net decrease in assets resulting from operations of $2,842,056 during the period.
• The decrease was primarily attributed to the depreciation of Chainlink from $13.73 at inception to $8.77 at quarter-end.
• The Sponsor waived the 0.34% annual management fee for the period ending April 13, 2026, on the first $500 million of assets.

Sentiment

Score: 5

Explanation: StockSavvy.ai views this as a neutral report; while the financial performance is negative, it is entirely expected given the volatility of the underlying asset and the nature of the product.

Positives

• Successful launch and listing of the ETF on NYSE Arca.
• Sponsor fee waiver in place for the initial period, reducing costs for investors.
• Effective disclosure controls and procedures maintained by the Sponsor.

Negatives

• Net decrease in net assets of $2,842,056 due to market volatility.
• Total return at net asset value for the period was -36.16%.
• The Trust is highly concentrated in a single digital asset, Chainlink, creating significant price risk.

Risks

• Extreme volatility in the price of Chainlink.
• Concentration risk as the Trust's sole asset is Chainlink.
• Potential for regulatory changes impacting digital assets.
• Operational risks related to the custody and security of digital assets.
• Market manipulation risks on crypto asset exchanges.

Future Outlook

The Trust intends to continue its primary objective of providing exposure to Chainlink. Management notes a future intention to conduct staking as a secondary investment objective, though no specific timeline is provided.

Management Comments

• The Sponsor believes the design of the Trust enables investors to more effectively implement strategic and tactical asset allocation strategies using Chainlink.
• Management concluded that disclosure controls and procedures were effective as of March 31, 2026.

Industry Context

StockSavvy.ai notes that this filing reflects the broader trend of institutional-grade crypto ETPs entering the U.S. market. The performance of the Trust is directly correlated to the high volatility inherent in the Chainlink network, consistent with other single-asset crypto ETFs.

Comparison to Industry Standards

• The 0.34% expense ratio is competitive with other single-asset crypto ETPs.
• The use of Lukka, Inc. for valuation and Coinbase Custody for asset safekeeping aligns with industry best practices for institutional digital asset products.

Corporate Governance

Legal Proceedings

• None.

Related Party Transactions

• The Trust pays a Sponsor Fee to Bitwise Investment Advisers, LLC.
• BAM and BIM (affiliates of the Sponsor) provided initial seed capital.

Stakeholder Impact

• Shareholders are exposed to the full price volatility of Chainlink.
• Authorized Participants facilitate the creation and redemption of shares.

Next Steps

• Continue daily NAV calculations.
• Monitor Chainlink market conditions.
• Evaluate potential implementation of staking as a secondary objective.

Key Dates

Recommendation

The Trust is a passive investment vehicle tracking the price of Chainlink. Investors should hold based on their long-term outlook for the Chainlink network rather than the short-term performance of the ETF.

Keywords

Bitwise Chainlink ETF, CLNK, Chainlink, Cryptocurrency ETF, Digital Assets, SEC Filing, 10-Q