Bitwise 10 Crypto Index Fund

Previous wording

From December 10, 2020 to June 30, 2024, the Shares of BITW traded at an average discount of 15.71%, based on closing prices at 4:00 pm ET, and estimated, unaudited, NAV Per Share. During that same period, the highest premium was 649.38% on December 16, 2020, and the lowest premium was 0.27% on August 4, 2021. During that same period, the highest discount was 67.80% on December 28, 2022, and the lowest discount was 0.09% on September 24, 2021. Given the lack of an ongoing redemption program and the holding period under Rule 144, there is no arbitrage mechanism to keep the Shares closely linked to the value of the Trust’s underlying holdings that may continue to have an adverse impact on investments in the Shares.

Current wording

From December 10, 2020 to September 30, 2024, the Shares of BITW traded at an average discount of 16.57%, based on closing prices at 4:00 pm ET, and estimated, unaudited, NAV Per Share. During that same period, the highest premium was 649.38% on December 16, 2020, and the lowest premium was 0.27% on August 4, 2021. During that same period, the highest discount was 67.80% on December 28, 2022, and the lowest discount was 0.09% on September 24, 2021. Given the lack of an ongoing redemption program and the holding period under Rule 144, there is no arbitrage mechanism to keep the Shares closely linked to the value of the Trust’s underlying holdings that may continue to have an adverse impact on investments in the Shares.

Previous wording

Financial Information for the Three and Six Months ended June 30, 2024 and 2023

Current wording

Financial Information for the Three and Nine Months ended September 30, 2024 and 2023

Previous wording

The following table sets forth statements of operations data for the three and six months ended June 30, 2024 and 2023.

Current wording

The following table sets forth statements of operations data for the three and nine months ended September 30, 2024 and 2023.

Previous wording

Comparison of the six-month periods ended June 30, 2024 and 2023

Current wording

Comparison of the three-month periods ended September 30, 2024 and 2023

Previous wording

The Sponsor charges the Trust a Management Fee payable monthly, in arrears, in an amount equal to 2.5% per annum (1/12th of 2.5% per month) of the net asset value of the Trust’s assets at the end of each month. Management fees for the six months ended

Current wording

The Sponsor charges the Trust a Management Fee payable monthly, in arrears, in an amount equal to 2.5% per annum (1/12th of 2.5% per month) of the net asset value of the Trust’s assets at the end of each month. Management fees for the three months ended

Previous wording

June 30, 2024 were $12,008,661 compared to management fees for the six months ended June 30, 2023 of $6,024,544. These changes were due to an increase in the Trust’s net asset value due to an increase in the value of the Portfolio Crypto Assets held by the Trust as a result of the fair market value of the Assets (see “Schedules of Investments” below).

Current wording

September 30, 2024 were $5,869,017 compared to management fees for the three months ended September 30, 2023 of $2,927,022. These changes were due to an increase in the Trust’s net asset value due to an increase in the value of the Portfolio Crypto Assets held by the Trust as a result of the fair market value of the Assets (see “Schedules of Investments” below).

Previous wording

Net realized gain from Crypto Assets for the six months ended June 30, 2024 was $1,020,735 compared to net realized loss from Crypto Assets for the six months ended June 30, 2023 of $2,159,366. These changes were due to fluctuations in the value of the Portfolio Crypto Assets.

Current wording

Net realized gain from Crypto Assets for the three months ended September 30, 2024 was $2,628,714 compared to net realized loss from Crypto Assets for the three months ended September 30, 2023 of $4,074,541. These changes were due to fluctuations in the value of the Portfolio Crypto Assets.

Previous wording

For the six-month period ended June 30, 2024, the Trust recorded net realized gains from sales of Bitcoin and Ethereum of $4,507,996 and $2,938,304, respectively, among the gains and losses realized in smaller amounts from the sale of other Portfolio Crypto Assets. These sales were made as a result of rebalancing activity and sales of Portfolio Crypto Assets to raise money to pay the management fee.

Current wording

Crypto Assets. These sales were made as a result of rebalancing activity and sales of Portfolio Crypto Assets to raise money to pay the management fee.

Previous wording

For the six-month period ended June 30, 2023, the Trust recorded net realized losses from sales of Bitcoin and Cardano of $930,621 and $735,998, respectively, among the gains and losses realized in smaller amounts from the sale of other Portfolio Crypto Assets. These sales were made as a result of rebalancing activity and sales of Portfolio Crypto Assets to raise money to pay the management fee.

Current wording

For the nine-month period ended September 30, 2023, the Trust recorded net realized losses from sales of Bitcoin and Solana of $2,826,800 and $1,859,900, respectively, among the gains and losses realized in smaller amounts from the sale of other Portfolio Crypto Assets. These sales were made as a result of rebalancing activity and sales of Portfolio Crypto Assets to raise money to pay the management fee.

Previous wording

Net change in unrealized appreciation from Crypto Assets for the six months ended June 30, 2024 was $258,794,961 compared to net change in unrealized appreciation from Crypto Assets for six months ended June 30, 2023 of $223,022,103. The primary factor for the change was related to an increase in the fair value of the Portfolio Crypto Assets held by the Trust (see “Schedules of Investments” below).

Current wording

Net change in unrealized appreciation from Crypto Assets for the nine months ended September 30, 2024 was $247,154,609 compared to net change in unrealized appreciation from Crypto Assets for nine months ended September 30, 2023 of $159,787,148. The primary factor for the change was related to an increase in the fair value of the Portfolio Crypto Assets held by the Trust (see “Schedules of Investments” below).

Previous wording

For the six-month period ended June 30, 2024, the Trust recorded a net increase in net assets resulting from operations of $247,806,984, compared to a net increase in net assets resulting from operations of $214,904,426 for the six-month period ended June 30, 2023. The primary factor that impacted 2024 net increase (decrease) in net assets resulting from operations compared to 2023 net increase (decrease) in net assets resulting from operations was a decrease in net realized loss and change in unrealized gain on investments with a net gain of $259,815,696 in 2024 compared to a net gain of $220,862,737 in 2023. The primary factor for the change was an increase in the value of the Portfolio Crypto Assets held by the Trust as a result of the fair market value of the Assets (see “Schedules of Investments” below).

Current wording

For the nine-month period ended September 30, 2024, the Trust recorded a net increase in net assets resulting from operations of $232,926,331, compared to a net increase in net assets resulting from operations of $144,667,708 for the nine-month period ended September 30, 2023. The primary factor that impacted 2024 net increase in net assets resulting from operations compared to 2023 net increase in net assets resulting from operations was a decrease in net realized loss and an increase in the change in unrealized gain on investments with a net gain of $250,804,058 in 2024 compared to a net gain of $153,533,041 in 2023. The primary factor for the change was an increase in the value of the Portfolio Crypto Assets held by the Trust as a result of the fair market value of the Assets (see “Schedules of Investments” below).

Previous wording

As described in the Risk Factors set out in our Form 10-K filed with the SEC on March 1, 2024, the prices of the various Portfolio Crypto Assets held by the Trust are subject to extreme volatility. This volatility had a significant impact on the value of the Portfolio Crypto Assets for the six months ended June 30, 2024 compared to the six months ended June 30, 2023 and the year ended December 31, 2023.

Current wording

As described in the Risk Factors set out in our Form 10-K filed with the SEC on March 1, 2024, the prices of the various Portfolio Crypto Assets held by the Trust are subject to extreme volatility. This volatility had a significant impact on the value of the Portfolio Crypto Assets for the nine months ended September 30, 2024 compared to the nine months ended September 30, 2023 and the year ended December 31, 2023.

Previous wording

Six Months Ended June 30, 2024 and the Twelve Months Ended December 31, 2023

Current wording

Nine Months Ended September 30, 2024 and the Twelve Months Ended December 31, 2023

Previous wording

As of June 30, 2024, Bitcoin represented 68.26% of the total Portfolio Crypto Assets held by the Trust, and Ethereum represented 23.48%, while the remaining 8.26% of the Portfolio Crypto Assets were comprised of Solana, Ripple, Cardano, Avalanche, Polkadot, Chainlink, Bitcoin Cash, and NEAR Protocol.

Current wording

As of September 30, 2024, Bitcoin represented 72.74% of the total Portfolio Crypto Assets held by the Trust, and Ethereum represented 18.09%, while the remaining 9.17% of the Portfolio Crypto Assets were comprised of Solana, Ripple, Cardano, Avalanche, Chainlink, Bitcoin Cash, Polkadot, and Uniswap.

Previous wording

The process that the Sponsor developed for identifying a principal market (the "Principal Market"), as described in FASB ASC 820-10, which outlines the application of fair value accounting, was to begin by identifying publicly available, well established and reputable Crypto Asset exchanges selected by the Sponsor and its affiliates in their sole discretion, including, but not limited to, Binance, Bitfinex, Bitflyer, Bitstamp, Coinbase, Crypto.com, Gate.io, Gemini, HitBTC, Huobi, itBit, Kraken, KuCoin, LMAX, MEXC Global, OKX and Poloniex,, and then calculating, on each valuation period, the highest volume exchange during the 60 minutes prior to 4:00 pm ET for each asset (the "Principal Market Price"). In evaluating the markets that could be considered principal markets, the Trust considered whether or not the specific markets were accessible to the Trust, either directly or through an intermediary, at the end of each period.

Current wording

The process that the Sponsor developed for identifying a principal market (the "Principal Market"), as described in FASB ASC 820-10, which outlines the application of fair value accounting, was to begin by identifying publicly available, well established and reputable Crypto Asset exchanges selected by the Sponsor and its affiliates in their sole discretion, including, but not limited to, Binance, Bitfinex, Bitflyer, Bitstamp, Bullish, Coinbase, Crypto.com, Gate.io, Gemini, HitBTC, Huobi, itBit, Kraken, KuCoin, LMAX, MEXC Global, OKX and Poloniex, and then calculating, on each valuation period, the highest volume exchange during the 60 minutes prior to 4:00 pm ET for each asset (the "Principal Market Price"). In evaluating the markets that could be considered principal markets, the Trust considered whether or not the specific markets were accessible to the Trust, either directly or through an intermediary, at the end of each period.

Previous wording

Crypto Assets are loosely regulated and there is no central marketplace for currency exchange. Supply is determined by a computer code, not by a central bank, and prices have been extremely volatile. Crypto Asset exchanges have been closed due to fraud, failure or security breaches. Any of the Trust’s assets that reside on an exchange that shuts down may be lost. At June 30, 2024, Crypto Assets of approximately $155,100 and cash of approximately $319,600 resided on exchanges. At December 31, 2023, the Trust had a $2,770,000 receivable from Crypto Assets sold and Crypto Assets of approximately $1,270,260 resided on exchanges.

Current wording

Crypto Assets are loosely regulated and there is no central marketplace for currency exchange. Supply is determined by a computer code, not by a central bank, and prices have been extremely volatile. Crypto Asset exchanges have been closed due to fraud, failure or security breaches. Any of the Trust’s assets that reside on an exchange that shuts down may be lost. At September 30, 2024, the Trust had a $400,000 net payable from Crypto Assets purchased and no Crypto Assets or cash resided on exchanges. At December 31, 2023, the Trust had a $2,770,000 receivable from Crypto Assets sold and Crypto Assets of approximately $1,270,260 resided on exchanges.

Previous wording

The Custodian serves as the Trust’s Custodian for Crypto Assets for which qualified custody is available. The Custodian is subject to change in the sole discretion of the Sponsor. At June 30, 2024 and December 31, 2023, Crypto Assets of approximately $950,419,100 and $698,528,691 were held by the Custodian, respectively.

Current wording

The Custodian serves as the Trust’s Custodian for Crypto Assets for which qualified custody is available. The Custodian is subject to change in the sole discretion of the Sponsor. At September 30, 2024 and December 31, 2023, Crypto Assets of approximately $936,381,800 and $698,528,691 were held by the Custodian, respectively.