Bitwise Bitcoin ETF
For the period ended Jun 30, 2024. Filed Aug 8, 2024.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2024 · Filed Aug 8, 2024
BITB$41.11-0.3%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-03-31; filed 2024-05-13.
0000950170-24-058601
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-06-30; filed 2024-08-08.
0000950170-24-093606
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 24 previous paragraphs and 31 current paragraphs.
16 unchanged; 7 reworded; 6 added; 1 removed; 0 previous and 2 current paragraphs rearranged.
Tables are not compared: 0 previous and 0 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (6)
Current report
Bitwise Bitcoin ETF (the “Trust”) is a Delaware statutory trust formed on August 29, 2019.The Trust issues common shares (“Shares”), which represent units of fractional undivided beneficial interest in and ownership of the Trust. The Shares are listed on the NYSE Arca Inc. (the “Exchange”) under the ticker symbol “BITB.” The Trust’s commencement of operations was January 11, 2024.
Current report
The Trust’s investment objective is to seek to provide shareholders of the Trust (“Shareholders”) with exposure to the value of bitcoin held by the Trust that is reflective of the actual bitcoin market in which investors can purchase or sell bitcoin, less the expenses of the Trust’s operations and other liabilities. In seeking to achieve its investment objective, the Trust holds bitcoin and establishes its net asset value (“NAV") by reference to the CME CF Bitcoin Reference Rate - New York Variant (“BRRNY”). The BRRNY was designed to provide a daily, 4:00 p.m. New York time reference rate of the U.S. dollar price of one bitcoin and is calculated by CF Benchmarks Ltd. (the “Benchmark Provider”) based on an aggregation of executed trade flow of several large bitcoin trading platforms (“Constituent Platforms”).
Current report
For the Six Months ended June 30, 2024*^
Current report
The Sponsor waived the Sponsor Fee on the first $1 billion of Trust assets through July 10, 2024, and has been accruing at an annual rate of 0.20% of the Trust’s net assets since then. As a result, the only ordinary expense of the Trust is expected to be the Sponsor Fee. In exchange for the Sponsor Fee, the Sponsor has agreed to assume and pay the normal operating expenses of the Trust, which include the Trustee’s monthly fee and out-of-pocket expenses, the fees of the Trust’s regular service providers (Cash Custodian, Bitcoin Custodian, Prime Execution Agent, Marketing Agent, Transfer Agent and Administrator), Exchange listing fees, tax reporting fees, SEC registration fees, printing and mailing costs, audit fees and up to $500,000 per annum in ordinary legal fees and expenses. The Sponsor may determine in its sole discretion to assume legal fees and expenses of the Trust in excess of the $500,000 per annum. The Sponsor also agreed to pay the costs of the Trust’s organization.
Current report
The Trust may incur certain extraordinary, non-recurring expenses that are not assumed by the Sponsor, including but not limited to, taxes and governmental charges, any applicable brokerage commissions, financing fees, Bitcoin network fees and similar transaction fees, expenses and costs of any extraordinary services performed by the Sponsor (or any other service provider) on behalf of the Trust to protect the Trust or the Shareholders (including, for example, in connection with any fork of the Bitcoin blockchain, any Incidental Rights and any IR Asset), any indemnification of the Cash Custodian, Bitcoin Custodian, Prime Execution Agent, Transfer Agent, Administrator or other agents, service providers or counterparties of the Trust, and extraordinary legal fees and expenses, including any legal fees and expenses incurred in connection with litigation, regulatory enforcement or investigation matters.
Current report
No material changes have occurred during the six months ended June 30, 2024.
Removed paragraphs (1)
Previous report
The business and operations of the Trust are described above under Part I, Item I under the heading “Business”, which is incorporated into this Item by reference.
Reworded paragraphs (7)
Previous wording
The Shares may also trade at a premium over, or a discount to, the NAV Per Share as a result of price volatility, trading volume and closings of the exchanges on which the Sponsor purchases Portfolio Crypto Assets on behalf of the Trust due to fraud, failure, security breaches or otherwise. As a result of the foregoing, the price of the Shares as quoted on NYSE has varied from the value of the Trust’s Portfolio Crypto Assets Per Share since the Shares were approved for quotation on January 11, 2024.
Current wording
The Shares may trade at a premium over, or a discount to, the NAV per Share as a result of price volatility, trading volume and closings of the exchanges on which the Sponsor purchases bitcoins on behalf of the Trust due to fraud, failure, security breaches or otherwise, and the fact that supply and demand forces at work in the secondary trading market for Shares are related, but not identical, to the supply and demand forces influencing the market price of bitcoin. As a result of the foregoing, the price of the Shares as quoted on NYSE has varied from the value of the Trust’s NAV per Share since the Shares were approved for quotation on January 11, 2024.
Previous wording
The following charts show the percentage of Premium/(Discount) of the Shares as quoted on NYSE and the Trust’s NAV and a comparison of the NAV of the Trust vs the market price as quoted on NYSE.
Current wording
The following charts show the percentage of Premium/(Discount) of the Shares as quoted on the Exchange and the Trust’s NAV and a comparison of the NAV of the Trust vs the market price as quoted on the Exchange.
Previous wording
From January 11, 2024 to March 31, 2024, the Shares of BITB traded at an average premium, based on closing prices at 4:00 pm ET, and estimated, unaudited, NAV Per Share of 0.01%. During that same period, the highest premium was 0.87% on March 1, 2024, and the lowest premium was 0.01% on January 18, 2024. During that same period, the highest discount was 0.84% on March 15, 2024, and the lowest discount was 0.01% on February 29, 2024.
Current wording
From January 11, 2024 to June 30, 2024, the Shares of the Trust traded at an average premium, based on closing prices at 4:00 p.m. ET, and estimated, unaudited, NAV per Share of 0.01%. During that same period, the highest premium was 1.17% on May 20, 2024, and the lowest premium was 0.01% on January 18, 2024. During that same period, the highest discount was 1.79% on May 1, 2024, and the lowest discount was 0.002% on June 25, 2024.
Previous wording
The following chart shows the price of bitcoin for the period January 1, 2023 through March 31, 2024, as quoted by CF Benchmarks, using the CME CF Bitcoin Reference Rate - New York Variant (BRRNY).
Current wording
The following chart shows the price of bitcoin for the period January 1, 2023 through June 30, 2024, as quoted by the Benchmark Provider, using the BRRNY.
Previous wording
As of March 31, 2024* the Trust held a net closing balance of 31,682.4133 bitcoin with a total market value of $2,241,898,895 based on the CME CF Bitcoin Reference Rate - New York Variant ("BRRNY") price of $70,761.62, used to determine the Trust's NAV. The total market value of the Trust's bitcoin held was $2,244,412,895 based on the price of a bitcoin in the principal market (Lukka Prime Rate) of $70,840.97, used to determine the Trust's Principal Market NAV.
Current wording
As of June 30, 2024* the Trust held a net closing balance of 37,528.2763 bitcoin with a total market value of $2,264,087,289 based on the BRRNY price of $60,330.17, used to determine the Trust's NAV. The total market value of the Trust's bitcoin held was $2,249,899,349 based on the price of a bitcoin (Lukka Prime Rate) in the principal market (Coinbase) of $59,952.11, used to determine the Trust's Principal Market NAV.
Previous wording
Net realized and unrealized gain on investment in bitcoin for the three months ended March 31, 2024, was approximately $624,988 which includes a realized gain of $6 on the sale of bitcoins to pay the Sponsor’s Fee and net change in unrealized appreciation on investment in bitcoin of approximately $624,982. Net realized and unrealized gain on investment in bitcoin for the period was driven by bitcoin price appreciation from $45,852.66 per bitcoin as of January 10, 2024 (commencement of operations) to $70,761.62 per bitcoin as of March 31, 2024. Net increase in net assets resulting from operations was approximately $624,811 for the three months ended March 31, 2024, which consisted of the net realized and unrealized gain on investment in bitcoin, less the Sponsor’s Fee of $177. Net assets increased to approximately $2,244,253 on March 31, 2024, a 54.48% increase in NAV for the period. The increase in net assets resulted from the aforementioned bitcoin price appreciation, net capital transactions of approximately $1,619,442, and was reduced by the withdrawal of $177 worth of bitcoin to pay the foregoing Sponsor’s Fee.
Current wording
Net realized and unrealized loss on investment in bitcoin for the three months ended June 30, 2024, was approximately $398,535 which includes a realized gain of $228 on the sale of bitcoins to pay the Sponsor Fee, net realized loss on investment in bitcoin sold for redemptions of $24,202 and net change in unrealized depreciation on investment in bitcoin of approximately $374,561. Net realized and unrealized loss on investment in bitcoin for the period was driven by bitcoin price depreciation from $70,761.62 per bitcoin as of March 31, 2024 to $60,330.17 per bitcoin as of June 30, 2024. Net decrease in net assets resulting from operations was approximately $399,185 for the three months ended June 30, 2024, which consisted of the net realized and unrealized loss on investment in bitcoin of $398,535, plus the Sponsor Fee of $650. Net assets increased to approximately $2,249,658 on June 30, 2024, a 15.51% increase in NAV for the period. The increase in net assets resulted from net capital share transactions of approximately $404,590, and was reduced by the withdrawal of $650 worth of bitcoin to pay the foregoing Sponsor Fee and the aforementioned bitcoin price depreciation.
Previous wording
In exchange for the Sponsor Fee, the Sponsor has agreed to assume and pay the normal operating expenses of the Trust. The Sponsor contractually waived the Sponsor Fee until July 11, 2024, and will of accrue at an annual rate of 0.20% of the Trust’s net assets beginning thereafter. As a result, the only ordinary expense of the Trust is expected to be the Sponsor Fee. The Trust is not aware of any trends, demands, conditions or events that are reasonably likely to result in material changes to its liquidity needs. See Part I, Item I under the heading “Business – Fees and Expenses” for an additional discussion of the Trust’s fees and expenses.
Current wording
The Trust is not aware of any trends, demands, conditions or events that are reasonably likely to result in material changes to its liquidity needs.
Rearranged current paragraphs (2)
Current report — wording carried from elsewhere
Net realized and unrealized gain on investment in bitcoin for the six months ended June 30, 2024, was approximately $226,453 which includes a realized gain of $234 on the sale of bitcoins to pay the Sponsor Fee, net realized loss on investment in bitcoin sold for redemptions of $24,202 and net change in unrealized appreciation on investment in bitcoin of approximately $250,421. Net realized and unrealized gain on investment in bitcoin for the period was driven by bitcoin price appreciation from $45,852.66 per bitcoin as of January
Current report — wording carried from elsewhere
10, 2024 (commencement of operations) to $60,330.17 per bitcoin as of June 30, 2024. Net increase in net assets resulting from operations was approximately $225,626 for the six months ended June 30, 2024, which consisted of the net realized and unrealized gain on investment in bitcoin of $226,453, less the Sponsor Fee of $827. Net assets increased to approximately $2,249,658 on June 30, 2024, a 30.68% increase in NAV for the period. The increase in net assets resulted from the aforementioned bitcoin price appreciation, net capital share transactions of approximately $2,024,032, and was reduced by the withdrawal of $827 worth of bitcoin to pay the foregoing Sponsor Fee.