10-Q: Fidelity Wise Origin Bitcoin Fund Reports Strong Q3 2025 Growth

Fidelity Wise Origin Bitcoin Fund reports significant growth in net assets and NAV per share for the quarter and nine months ended September 30, 2025, driven by strong Bitcoin price appreciation.

Summary

• Total Net Assets increased to $23.27 billion as of September 30, 2025, up from $18.81 billion at December 31, 2024.
• Net Asset Value (NAV) per Share rose to $99.59 as of September 30, 2025, compared to $81.56 at December 31, 2024.
• The fund's investment in bitcoin, at fair value, reached $23.28 billion as of September 30, 2025, holding 203,794 bitcoin.
• For the nine months ended September 30, 2025, the net increase in net assets resulting from operations was $3.89 billion.
• This increase was primarily driven by a net change in unrealized appreciation on investment in bitcoin of $4.18 billion during the nine-month period.
• The price of bitcoin, as measured by the principal market, increased 22.34% from $93,365.36 on December 31, 2024, to $114,223.01 on September 30, 2025.
• The Sponsor Fee of 0.25% of the Trust's Bitcoin Holdings became fully effective after the fee waiver ended on July 31, 2024, resulting in $38.48 million in sponsor fees for the nine months ended September 30, 2025.

Sentiment

Score: 8

Explanation: The fund demonstrated strong financial performance with significant growth in net assets and NAV per share, primarily driven by the appreciation of Bitcoin. While there were realized losses from redemptions and operational expenses, the overall picture is one of robust expansion and effective tracking of its underlying asset.

Positives

• Total Net Assets grew substantially from $18.81 billion to $23.27 billion over the nine months ended September 30, 2025, indicating strong investor interest and market performance.
• NAV per Share increased by 21.59% from $81.80 to $99.46 (non-GAAP) during the nine months ended September 30, 2025, reflecting significant appreciation in bitcoin's value.
• The Trust recorded a net increase in net assets resulting from operations of $3.89 billion for the nine months ended September 30, 2025, primarily due to $4.18 billion in net change in unrealized appreciation on bitcoin.
• The quantity of bitcoin owned by the Trust increased from 201,556 as of December 31, 2024, to 203,794 on September 30, 2025, demonstrating net inflows of capital.
• Disclosure controls and procedures were evaluated and determined to be effective as of the end of the reporting period.

Negatives

• The Trust incurred a net realized loss of $246.88 million on investment in bitcoin sold for redemptions for the nine months ended September 30, 2025.
• Net investment income (loss) was negative $38.48 million for the nine months ended September 30, 2025, primarily due to the Sponsor fee.
• The Sponsor fee waiver ended on July 31, 2024, leading to increased expenses for the Trust going forward.

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.
• The price of bitcoin is volatile, and market movements are difficult to predict, which could lead to significant reductions in the value of an interest in the Trust.
• Actual events or results may differ materially from forward-looking statements due to general economic, market, and business conditions, changes in laws or regulations (including taxes), and other world economic and political developments.
• Security breaches experienced by service providers could adversely affect the Trust's operations or the value of its Shares.

Future Outlook

The filing contains general forward-looking statements related to future events or performance, including movements in digital asset markets and the Trust's operations. However, it does not provide specific guidance, estimates, or projections for future financial results or operational milestones, emphasizing that actual events or results may differ materially due to various risks and uncertainties.

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.

Industry Context

This report reflects the continued strong performance and growth of spot Bitcoin ETFs following their introduction. The Fidelity Wise Origin Bitcoin Fund's significant increase in assets under management and NAV per share is consistent with the overall positive trend in the broader digital asset market, particularly Bitcoin's price appreciation during the reported period. The fund's passive management strategy and competitive fee structure position it within the growing landscape of regulated investment vehicles offering exposure to Bitcoin.

Comparison to Industry Standards

• The Trust's objective is to track the performance of bitcoin, as measured by the Fidelity Bitcoin Reference Rate. Its Total Return at Net Asset Value of 22.11% for the nine months ended September 30, 2025, closely aligns with the 22.34% increase in Bitcoin's principal market price during the same period, indicating effective tracking.
• The Sponsor Fee of 0.25% is competitive within the spot Bitcoin ETF market, which has seen various fee structures, including initial waivers and ongoing fees ranging from 0.19% to 0.39% among major players like BlackRock's IBIT and Grayscale's GBTC.

Related Party Transactions

• FD Funds Management LLC, a wholly-owned subsidiary of FMR LLC, serves as the Sponsor.
• Fidelity Service Company, Inc., an affiliate of the Sponsor, serves as the Administrator.
• Fidelity Digital Asset Services, LLC, an affiliate of the Sponsor, serves as the Bitcoin Custodian.
• Fidelity Distributors Company LLC, an affiliate of the Sponsor, serves as the Distributor.
• Fidelity Product Services LLC, an affiliate of the Sponsor, serves as the Index Provider.
• FMR Capital, Inc., an affiliate of the Sponsor, was the Seed Capital Investor.
• The Sponsor assumes and pays all ordinary course fees and expenses of the Trust, including those of the Administrator, Custodian, Distributor, Index Provider, and other service providers.
• The Trust pays the Sponsor a unified fee of 0.25% of its Bitcoin Holdings.

Stakeholder Impact

• Shareholders benefit from the Trust's direct exposure to Bitcoin's price movements and the significant appreciation in NAV per share, but bear the 0.25% sponsor fee.
• The Sponsor (FD Funds Management LLC) benefits from the 0.25% sponsor fee, which became fully effective after the waiver period.
• Affiliated service providers (Administrator, Custodian, Distributor, Index Provider) receive fees paid by the Sponsor, ensuring operational support for the Trust.

Next Steps

• The Trust will continue to operate passively, tracking the performance of bitcoin as measured by the Fidelity Bitcoin Reference Rate.
• Ongoing issuance and redemption of Baskets with Authorized Participants are expected to continue.

Key Dates

Recommendation

The Fidelity Wise Origin Bitcoin Fund has demonstrated exceptional growth in net assets and NAV per share, directly reflecting the strong performance of Bitcoin. The fund provides a regulated and efficient vehicle for investors seeking exposure to Bitcoin. While inherent volatility in the cryptocurrency market exists, the fund's effective tracking, competitive fee structure, and continued capital inflows make it an attractive 'buy' for investors with a bullish outlook on Bitcoin's long-term prospects.

Keywords

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