10-Q: Hashdex Bitcoin ETF Q1 2026 Performance Update

Hashdex Bitcoin ETF reports a significant decrease in net assets for Q1 2026 due to market fluctuations in Bitcoin.

Summary

• The Hashdex Commodities Trust, specifically the Hashdex Bitcoin ETF (DEFI), filed its quarterly report for the period ending March 31, 2026.
• Total net assets decreased from $11,897,777 at the end of 2025 to $9,220,735 at the end of Q1 2026.
• This decrease is primarily attributed to a net change in unrealized appreciation (depreciation) on investments totaling $(2,671,064) for the quarter.
• The ETF's investment objective is to track the daily changes of the Nasdaq Bitcoin Reference Price - Settlement (NQBTCS).
• The ETF primarily holds Bitcoin, with a small allocation to cash equivalents.
• Management has certified the accuracy and fairness of the financial statements and the effectiveness of disclosure controls and procedures.

Sentiment

Score: 3

Explanation: StockSavvy.ai views this filing as negative due to the substantial decrease in net assets and NAV per share, driven by market depreciation of Bitcoin holdings.

Positives

• The ETF continues to operate with a clear investment objective to track the NQBTCS benchmark.
• The Sponsor, Hashdex Asset Management Ltd., has assumed most of the Fund's expenses, with the primary ordinary expense being the Sponsor's Management Fee.
• The ETF's investment strategy has transitioned to primarily investing in spot Bitcoin, eliminating the use of Bitcoin Futures Contracts.
• The ETF's disclosure controls and procedures were deemed effective as of March 31, 2026.

Negatives

• Net assets decreased by approximately $2.68 million during the first quarter of 2026, largely due to a significant unrealized loss on Bitcoin holdings.
• The Net Asset Value (NAV) per share decreased from $99.15 at the end of 2025 to $76.84 at the end of Q1 2026.
• The total return for the quarter was -22.50%, significantly underperforming previous periods.
• The ETF experienced a net investment loss of $5,978 for the quarter.
• The ETF is not a diversified investment vehicle and is subject to greater volatility than diversified portfolios.

Risks

• Price movements for bitcoin are influenced by a wide range of factors including governmental oversight, technological developments, and general economic conditions.
• The value of bitcoin is not backed by any government or corporation, and its supply is limited.
• The Fund may face liquidity challenges if Authorized Purchasers exit the market or are unable to proceed with creation/redemption orders.
• Market disruptions, such as regulatory actions affecting the bitcoin market, could make it difficult to liquidate positions.
• The Fund does not intend to establish a credit facility and relies solely on its cash and cash equivalents for liquidity needs.

Future Outlook

The filing does not contain specific forward-looking statements or guidance beyond the general investment objective of tracking the NQBTCS benchmark and the current investment strategy of holding only Bitcoin and cash.

Management Comments

• "Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report."
• "Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows of the Registrant as of, and for, the periods presented in this report."
• The Sponsor has assumed most of the expenses incurred by the Fund, with the only ordinary expense being the Sponsor's Management Fee.

Industry Context

StockSavvy.ai notes that the Hashdex Bitcoin ETF's performance in Q1 2026 reflects the broader market volatility experienced by Bitcoin and other cryptocurrency-related investments during that period. The shift to a spot Bitcoin ETF strategy aligns with industry trends following regulatory approvals for such products.

Comparison to Industry Standards

• The Hashdex Bitcoin ETF's total return of -22.50% for Q1 2026 is a significant decline, reflecting the inherent volatility of the cryptocurrency market. This performance should be compared against other spot Bitcoin ETFs and Bitcoin-tracking funds available in the market.
• The expense ratio of 0.25% is competitive within the ETF industry, particularly for cryptocurrency-focused funds, though it is higher than traditional broad-market ETFs.
• The management fee structure of 0.25% per annum of daily NAV is standard for actively managed ETFs, but the Sponsor's assumption of other operational expenses is a positive factor for investors.

Legal Proceedings

• Neither the Trust, the Fund nor the Sponsor are currently subject to any material legal proceedings, nor, to our knowledge, are any material legal proceedings threatened against the Trust, the Fund or the Sponsor.

Related Party Transactions

• The Fund pays the Sponsor, Hashdex Asset Management Ltd., a management fee of 0.25% per annum of the daily NAV.
• Prior to January 16, 2026, the Fund's sponsor was Tidal Investments LLC, which also had marketing-related functions.
• The Sponsor pays most of the Fund's operational, administrative, and other ordinary expenses.

Stakeholder Impact

• Shareholders experienced a significant decrease in the value of their investment due to market depreciation of Bitcoin.
• The Sponsor continues to manage the fund and assumes most operational costs, potentially benefiting shareholders by reducing overall expense burden.
• Authorized Participants are crucial for the creation and redemption of ETF shares; any disruption in their activity could impact liquidity.

Next Steps

• Continue to track the daily changes of the NQBTCS benchmark.
• Manage the Fund's assets, consisting of Bitcoin and cash.
• The Sponsor will continue to assume most of the Fund's expenses, excluding the Management Fee.

Key Dates

Recommendation

The filing indicates a significant decline in the ETF's net assets and NAV due to Bitcoin's price depreciation, which is a direct reflection of market conditions rather than fundamental company issues. While the performance is negative for the quarter, the ETF's strategy remains aligned with tracking Bitcoin, and the Sponsor's cost-assumption model is favorable. Investors should hold and monitor the underlying asset's performance and market trends.

Keywords

Hashdex Bitcoin ETF, DEFI, Form 10-Q, Quarterly Report, Bitcoin, Cryptocurrency, ETF, SEC Filing, Financial Statements, Net Asset Value, NQBTCS, Market Risk, Sponsor