10-Q: Bitwise Ethereum ETF Q1 2026 Financial Results

Bitwise Ethereum ETF reports a net decrease in assets to $219.2 million for the quarter ended March 31, 2026, driven by ether price depreciation.

Summary

• Net assets decreased from $343.7 million at year-end 2025 to $219.2 million as of March 31, 2026.
• The Trust experienced a net investment loss of $139,000 for the quarter.
• Net realized and unrealized losses on ether investments totaled $110.4 million for the period.
• The Trust held 104,650.7879 ether as of March 31, 2026.
• The Principal Market NAV per share declined from $21.28 to $15.00 during the quarter.

Sentiment

Score: 5

Explanation: StockSavvy.ai views this as a neutral report; the financial decline is a direct reflection of market-wide ether price depreciation rather than internal operational failure.

Positives

• The Trust maintains a clear and transparent fee structure with a unitary 0.20% annual Sponsor Fee.
• The Trust successfully continues its operations as an ETP, providing direct exposure to ether.
• The Sponsor continues to cover all normal operating expenses, protecting the Trust from unexpected costs.

Negatives

• Net assets declined significantly due to the depreciation of the underlying ether price.
• The Trust recorded a net investment loss of $139,000 for the quarter.
• Total return at net asset value for the quarter was negative 29.51%.

Risks

• Extreme volatility in the trading price of ether directly impacts the value of the Shares.
• The Trust is subject to regulatory risks and potential changes in laws governing crypto assets.
• Reliance on third-party service providers, including the Ether Custodian and Prime Execution Agent, creates operational risk.
• The Shares may trade at a premium or discount to the actual NAV per share.

Future Outlook

The Trust does not provide specific financial guidance but notes that it will continue to seek to provide exposure to the value of ether. It remains subject to market volatility and regulatory developments in the crypto asset space.

Management Comments

• Management emphasizes that the Trust's performance is directly tied to the price of ether and market conditions.
• The Sponsor maintains that it has established effective disclosure controls and procedures.

Industry Context

StockSavvy.ai notes that the Bitwise Ethereum ETF is operating within a highly competitive and volatile crypto-ETP landscape, where performance is almost entirely dictated by the underlying asset's market price rather than operational efficiency.

Comparison to Industry Standards

• The 0.20% expense ratio is competitive within the broader spot ether and bitcoin ETF market.
• The Trust follows standard industry practices for crypto-asset custody and valuation using third-party vendors like Lukka, Inc.

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 ether.
• Authorized Participants continue to facilitate the creation and redemption of shares.

Next Steps

• Continue daily operations and management of ether holdings.
• Monitor regulatory developments regarding digital assets.

Key Dates

Recommendation

The ETF is a passive vehicle tracking ether; the recommendation is based on the underlying asset's market outlook rather than the Trust's operational performance.

Keywords

Bitwise Ethereum ETF, ETHW, Ether, Cryptocurrency, ETF, Blockchain, Digital Assets