Bitwise 10 Crypto Index Fund

What they do

The Trust holds a portfolio of crypto assets (e.g., BTC, ETH, XRP, SOL, ADA) and issues shares to investors. It aims to track the Bitwise 10 Crypto Index as closely as possible, with the Sponsor having discretion to pursue incidental opportunities like airdrops or forks. The Trust generates no revenue; its operations involve issuing shares, rebalancing the portfolio, and selling crypto assets to pay the management fee.

Revenue drivers

• Management Fee — The Trust sells portfolio crypto assets to cover the management fee; fee amount is not specified in the provided excerpts.
• Share Creations — The Trust receives crypto assets in exchange for newly issued shares; during Q2 2026, creations added approximately $12.2 million in crypto assets.
• Incidental Opportunities — The Sponsor may pursue airdrops, emissions, forks, or similar network events to generate returns in excess of the Index, though no specific amounts were disclosed.

Recent performance

For the six months ended June 30, 2026, the Trust reported a net investment loss of $2.8 million and a net realized and unrealized loss of $336.6 million, resulting in a net decrease in net assets of $339.4 million. At June 30, 2026, net assets were $532.8 million, down from $1.425 billion at June 30, 2025. The decrease was driven by dispositions of crypto assets to pay fees, redemptions, and rebalancing, partially offset by creations. Annual net income swung from $664.6M in 2024 to a loss of $165.9M in 2025.

Strategy

The Trust's strategy is to provide investors with a cost-effective, professionally managed way to participate in the crypto asset market without selecting individual tokens. It rebalances monthly to track the Index and may pursue incidental opportunities to enhance returns. The Sponsor also manages the portfolio to cover expenses, and the Trust has custodial agreements with Coinbase and Anchorage.

Risks

• Crypto asset price volatility — The Trust's net assets and results are directly tied to volatile crypto market prices, as evidenced by a $336.6 million realized and unrealized loss in H1 2026.
• Reliance on Sponsor and Index Provider — The Trust depends on Bitwise Investment Advisers as Sponsor and on Bitwise Index Services for the index, both affiliates, creating potential conflicts of interest.
• Custody and security risks — The Trust relies on Coinbase and Anchorage as custodians; any security breach or custodial failure could result in loss of crypto assets.
• Regulatory and tax uncertainty — As a crypto index ETF, the Trust faces evolving regulatory and tax treatment that could materially affect its operations and shareholder value.

Outlook

Management notes that the Trust's performance is driven by crypto market conditions and Index rebalancing. The Trust will continue to issue and redeem shares, rebalance monthly, and sell assets to cover fees. No forward-looking guidance is provided in the excerpts.