10-Q: VanEck Bitcoin ETF Q1 2026 Performance Update

VanEck Bitcoin ETF reports a 16.20% decrease in Net Asset Value for Q1 2026, primarily driven by a 22.10% decline in Bitcoin's price.

Summary

• The VanEck Bitcoin ETF (HODL) experienced a 16.20% decrease in its Net Asset Value (NAV) from $1,382,273,990 on December 31, 2025, to $1,158,283,647 on March 31, 2026.
• This decline is largely attributed to a 22.10% drop in the price of Bitcoin, which fell from $87,432.00 to $68,115.81 during the same period.
• The NAV per Share decreased by 22.12% from $24.73 to $19.26.
• The Trust reported a net decrease in net assets from operations of $309,912,457 for the quarter, stemming from a net unrealized depreciation on bitcoin of $307,116,056 and a net realized loss of $2,796,401 on bitcoin sold for redemptions.
• The number of outstanding Shares increased from 55,900,000 to 60,125,000 due to the creation of 8,925,000 Shares and redemption of 4,700,000 Shares.
• Operating expenses were fully waived by the Sponsor for the quarter.

Sentiment

Score: 3

Explanation: StockSavvy.ai views this filing as negative due to the significant decline in the ETF's Net Asset Value and the underlying asset's price, coupled with substantial unrealized losses, despite the sponsor fee waiver.

Positives

• The Sponsor waived all operating expenses for the quarter, resulting in no cost to the Trust.
• The Trust successfully managed share creations and redemptions, with a net increase in outstanding shares.
• The ETF's structure allows for continuous offering of shares in baskets, facilitating liquidity for authorized participants.

Negatives

• The Net Asset Value (NAV) of the ETF decreased by 16.20% during the quarter.
• The NAV per Share saw a significant decline of 22.12%.
• The Trust incurred a substantial net unrealized depreciation of $307,116,056 on its bitcoin holdings.
• A net realized loss of $2,796,401 was recorded from the sale of bitcoin for share redemptions.
• The value of the Trust's primary asset, bitcoin, experienced a significant price drop of 22.10%.

Risks

• The digital asset market faces significant regulatory uncertainty in the U.S., with potential for adverse legislative or regulatory developments that could harm the value of Bitcoin or the Shares.
• The Trust's assets are substantially concentrated in bitcoin, creating significant risk associated with fluctuations in its value.
• Bitcoin platforms may be unregulated or subject to evolving regulations, increasing exposure to fraud and security breaches.
• The value of the Shares is dependent on the development and acceptance of the Bitcoin network and blockchain technologies.
• Future legal or regulatory developments could negatively affect the value of Bitcoin or require the Trust or Sponsor to register with the SEC or CFTC, potentially leading to liquidation.
• The market infrastructure of the Bitcoin spot market could lead to a lack of active authorized participants, impacting the trading activity of the Trust.
• The Trust is subject to concentration risk due to its investment in a single asset class (Bitcoin).
• Possible illiquid markets for Bitcoin could exacerbate losses or increase the variability between the Trust's NAV and its market price.
• Future and current regulations by U.S. or foreign governments could adversely affect an investment in the Trust.
• Shareholders do not have the protections associated with ownership of Shares in an investment company registered under the 1940 Act or the Commodity Exchange Act.
• The Exchange may halt trading in the Trust's Shares, adversely impacting a Shareholder's ability to sell Shares.

Future Outlook

The filing does not contain specific forward-looking guidance beyond the general objective of reflecting Bitcoin's performance less expenses. The Sponsor Fee waiver is in effect until July 31, 2026, after which the standard fee will apply. The Trust's performance is intrinsically tied to the future price movements of Bitcoin and the evolving regulatory landscape.

Management Comments

• The Trust's NAV decreased from $1,382,273,990 at December 31, 2025, to $1,158,283,647 at March 31, 2026, a 16.20% decrease.
• The decrease in NAV resulted primarily from a decrease in the price of bitcoin, which decreased 22.10% from $87,432.00 at December 31, 2025, to $68,115.81 at March 31, 2026.
• The Trust had no expenses during the quarter as they were all waived by the Sponsor.

Industry Context

StockSavvy.ai notes that the VanEck Bitcoin ETF's performance directly mirrors the volatility of Bitcoin. The significant unrealized depreciation reflects the broader market downturn experienced by cryptocurrencies in the first quarter of 2026. The ongoing regulatory scrutiny highlighted in the filing is a critical factor for all digital asset-focused ETFs.

Comparison to Industry Standards

• The VanEck Bitcoin ETF's performance is directly benchmarked against the price of Bitcoin. The reported 22.12% decrease in NAV per share for Q1 2026 aligns with the approximate 22.10% decrease in Bitcoin's price during the same period.
• Competitor ETFs tracking Bitcoin, such as those from BlackRock, Fidelity, and Ark Invest, would have experienced similar performance metrics due to the asset's correlated price movements.
• The fee structure, with a sponsor fee waiver in place, is competitive within the Bitcoin ETF market, where fee compression has been a significant trend.

Legal Proceedings

• None reported.

Related Party Transactions

• The Trust pays the Sponsor (VanEck Digital Assets, LLC) a unified fee (Sponsor Fee) of 0.20% of average daily net assets.
• The Sponsor waived the entire Sponsor Fee for the first $2.5 billion of the Trust's assets from November 25, 2024, through July 31, 2026.
• The Sponsor sells bitcoin to cover the Sponsor Fee and Trust expenses.
• MarketVector Indexes GmbH, an indirectly wholly-owned subsidiary of VanEck, is the index sponsor and administrator for the MarketVectorTM Bitcoin Benchmark Rate.
• Van Eck Securities Corporation, a marketing agent to the Trust, is a wholly-owned subsidiary of VanEck.

Stakeholder Impact

• Shareholders are directly impacted by the decline in the Net Asset Value per Share due to the decrease in Bitcoin's price.
• The Sponsor benefits from the fee waiver, which reduces its immediate revenue but likely aims to retain assets under management.
• Authorized Participants are involved in the creation and redemption of Shares, facilitating market liquidity.

Next Steps

• The Sponsor Fee waiver is in effect until July 31, 2026.
• After July 31, 2026, the Sponsor Fee will revert to 0.20% of average daily net assets.
• The Trust will continue to reflect the performance of Bitcoin less operating expenses.

Key Dates

Recommendation

The filing reflects the inherent volatility of Bitcoin. While the NAV has decreased significantly, this is largely a market-driven event for the underlying asset. The absence of new negative developments and the continued operational structure suggest a 'hold' for existing investors, pending a potential recovery in Bitcoin's price or further regulatory clarity.

Keywords

Bitcoin ETF, VanEck, HODL, Quarterly Report, SEC Filing, Form 10-Q, Digital Assets, Cryptocurrency, Investment Fund, Financial Statements, Market Risk, Regulatory Uncertainty