10-Q: Fidelity Bitcoin Fund Reports Q1 2026 Results

Fidelity Wise Origin Bitcoin Fund's Q1 2026 report shows a significant decrease in net assets and NAV per share due to a decline in Bitcoin's price and net redemptions.

Summary

• The Fidelity Wise Origin Bitcoin Fund experienced a substantial decrease in net assets, falling from approximately $17.6 billion at the end of 2025 to $12.8 billion by March 31, 2026.
• This decline was primarily driven by a 22.10% decrease in the price of Bitcoin, which dropped from $87,463.03 on December 31, 2025, to $68,129.64 on March 31, 2026.
• Net Asset Value (NAV) per share also decreased by 22.15%, from $76.21 to $59.33 over the same period.
• The fund saw net redemptions of shares, with 44,100,000 shares redeemed compared to 28,700,000 shares created during the first quarter of 2026.
• Consequently, the fund's holdings of Bitcoin decreased from 201,684 BTC to 188,144 BTC.
• The net decrease in net assets resulting from operations for the quarter was $3.7 billion, largely due to unrealized depreciation on Bitcoin holdings and realized losses from Bitcoin sales for redemptions.

Sentiment

Score: 3

Explanation: StockSavvy.ai views this as a negative sentiment due to significant declines in net assets, NAV per share, and substantial unrealized losses, driven by a sharp decrease in Bitcoin's price and net redemptions.

Negatives

• Net assets decreased by $4.8 billion from $17.6 billion to $12.8 billion during the first quarter of 2026.
• Net Asset Value (NAV) per share declined by 22.15% from $76.21 to $59.33.
• The fund experienced net redemptions of shares, with 44,100,000 shares redeemed versus 28,700,000 shares created.
• The value of the fund's Bitcoin holdings decreased significantly due to a 22.10% drop in Bitcoin's price.
• There was a net realized loss of $0.1 billion from the sale of Bitcoin for redemptions.
• The fund reported a net change in unrealized depreciation on its Bitcoin investment of $3.8 billion.

Risks

• The Trust's investment strategy is concentrated in a single asset (Bitcoin) within a single asset class, maximizing exposure to market risks associated with Bitcoin and digital assets.
• Losses resulting from a decrease in the value of Bitcoin will not be offset by gains from diversified underlying assets.
• Market movements of Bitcoin are difficult to predict and are volatile.
• Potential risks include government regulation, security breaches experienced by service providers, and political and economic uncertainties.

Future Outlook

The filing does not contain specific forward-looking statements or guidance beyond the general objective of tracking Bitcoin's performance and the inherent risks associated with the volatile nature of digital assets.

Management Comments

• The Sponsor believes that the Shares are designed to provide investors with a cost-effective and convenient way to invest in bitcoin without purchasing, holding and trading bitcoin directly.
• The Sponsor does not make forward-looking statements unless it believes it has a reasonable basis for doing so, but cannot guarantee their accuracy.
• The Sponsor has established a Valuation and Liquidity Committee to carry out day-to-day fair valuation responsibilities and has adopted policies and procedures to govern the fair valuation process.

Industry Context

StockSavvy.ai notes that this filing reflects the performance of a spot Bitcoin ETF during a period of significant market volatility for cryptocurrencies, highlighting the direct impact of Bitcoin's price movements on fund performance and investor flows.

Legal Proceedings

• None.

Related Party Transactions

• Fidelity Service Company, Inc. (affiliate of Sponsor) serves as Administrator.
• Fidelity Digital Assets, N.A. (affiliate of Sponsor) serves as Bitcoin Custodian.
• Fidelity Distributors Company LLC (affiliate of Sponsor) serves as Distributor.
• Fidelity Product Services LLC (affiliate of Sponsor) serves as Index Provider.

Stakeholder Impact

• Shareholders experienced a significant decrease in the value of their investment due to the decline in Bitcoin's price and net redemptions.
• The fund's performance directly impacts investors holding FBTC shares.

Key Dates

Recommendation

The filing indicates a significant decline in the fund's net assets and NAV per share due to market conditions affecting Bitcoin. While the performance is negative for the quarter, the fund's objective is to track Bitcoin, and its performance is largely dictated by the underlying asset's volatility. For investors who understand and are comfortable with Bitcoin's risk profile, holding the position may be appropriate, awaiting potential market recovery. Aggressive new investment is not advised given the recent downturn and inherent volatility.

Keywords

Bitcoin Fund, Fidelity, FBTC, ETF, Cryptocurrency, Digital Assets, SEC Filing, 10-Q, Quarterly Report, Investment Fund