Bitwise 10 Crypto Index Fund

There have been no material changes to the Risk Factors last reported under Item 1A of the registrant’s Annual Report on Form 10-K for the year ended December 31, 2024, other than the update to the risk factors set forth below.

Risks Associated with Digital Assets

The trading prices of many digital assets, including bitcoin, have experienced extreme volatility in recent periods and may continue to do so. Extreme volatility in the future, including further declines in the trading price of bitcoin, could have a material adverse effect on the value of the Shares and the Shares could lose all or substantially all of their value.

The trading prices of many digital assets, including bitcoin, have experienced extreme volatility in recent periods and may continue to do so. For instance, there were steep increases in the value of certain digital assets, including bitcoin, over the course of 2017, followed by steep drawdowns throughout 2018 in digital asset trading prices, including for bitcoin. These drawdowns notwithstanding, digital asset prices, including bitcoin, increased significantly again during 2019, decreased significantly again in the first quarter of 2020 amidst broader market declines as a result of the novel coronavirus outbreak, and increased significantly again over the remainder of 2020 and the first half of 2021. Digital asset prices, including bitcoin, continued to experience significant and sudden changes throughout 2021 followed by steep drawdowns in the third quarter of 2021, as well as throughout 2022. Since then, digital asset prices have continued to fluctuate through 2023, 2024, and early 2025. In October 2025, the crypto markets experienced a sudden flash crash in which automated liquidations reportedly exceeded $19 billion within about 24 hours and total market capitalization fell by roughly 14 percent over several days. The full impact of that event may not yet be fully reflected in the crypto asset ecosystem.

Extreme volatility in the future, including further declines in the trading price of bitcoin, could have a material adverse effect on the value of the Shares and the Shares could lose all or substantially all of their value. Furthermore, negative perceptions, a lack of stability, and the absence of standardized regulation in the digital asset economy may reduce confidence in the digital asset economy and may lead to greater volatility in the price of bitcoin and other digital assets, including a depreciation in value. The Trust is not actively managed and will not take any actions to take advantage, or mitigate the impacts, of volatility in the price of bitcoin.

Risks Related to Trust Investment

The Trust's success depends heavily on the Sponsor, whose limited staffing, potential discontinuance, and conflicts of interest could adversely impact the Trust's management, stability, and the value of the Shares.

The Trust relies heavily on the expertise and contributions of the executive officers and other key personnel of the Sponsor and Bitwise, including Hunter Horsley, Teddy Fusaro, Matthew Hougan, and Hong Kim. These individuals are critical to managing the Trust’s business, operations, and investment strategy. The loss of any of these individuals would be difficult to replace and could involve significant time and expense, potentially delaying or preventing the achievement of the Trust’s objectives. Moreover, the Sponsor and Bitwise do not maintain key man life insurance policies on these executives, which could exacerbate the negative impact of their absence.

Additionally, Shareholders cannot be assured that the Sponsor will be willing or able to continue to serve as sponsor to the Trust for any length of time. If the Sponsor discontinues its activities on behalf of the Trust and a substitute sponsor is not appointed, the Trust will terminate and liquidate its Portfolio Crypto Assets. Even if a substitute sponsor is appointed, there is no guarantee that it will have the requisite experience, knowledge, or expertise to ensure the Trust’s successful operation or its continued viability. The appointment of a substitute sponsor may not necessarily be beneficial to the Trust and could still result in its termination.

Furthermore, the Sponsor manages the Trust’s affairs with significant discretion under the Trust Agreement, which may create conflicts of interest between the Sponsor, its affiliates, and the Trust or its Shareholders. The Sponsor and its affiliates, including the Index Provider, the Committee selected by the Index Provider, and authorized participants, have no fiduciary duties to the Trust or its Shareholders beyond those explicitly outlined in the Trust Agreement. This may allow the Sponsor to prioritize its own interests and the interests of its affiliates over the Trust and its Shareholders. These potential conflicts include, among others, the following:

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Sponsor Discretion and Limited Fiduciary Duties: The Sponsor may consider the interests of parties other than the Trust and its Shareholders when resolving conflicts, provided it does not act in bad faith. The Trust has also agreed to indemnify the Sponsor and its affiliates pursuant to the Trust Agreement, and amendments to the Trust Agreement that do not materially adversely affect Shareholders may be made without their consent. Additionally, Shareholders holding a majority of outstanding Shares may approve other amendments, potentially impacting minority Shareholders.

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External Activities and Competing Priorities: The Sponsor, its officers, directors, employees, and affiliates, as well as members of related committees, engage in various external activities, including managing unaffiliated funds and serving in advisory or board roles. These roles may involve advising on Crypto Assets that overlap with the Trust’s holdings, potentially creating competing interests. The Sponsor is responsible for allocating its own limited resources among the Trust and different clients and potential future business ventures, and its personnel are not required to devote all their time to the Trust’s operations. These competing priorities could adversely affect the Trust’s performance.

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Trading and Investment Conflicts: The Sponsor and its affiliates may engage in proprietary trading or maintain positions in Crypto Assets held by the Trust. Such activities could influence Crypto Asset prices or availability, impacting the Trust’s financial returns. Differing investment strategies or trading timelines may result in positions taken by the Sponsor or its affiliates that conflict with those of the Trust.

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Future Investment Vehicles and Master-Feeder Structures: The Sponsor may form additional trusts or investment vehicles with similar or related objectives to the Trust. If these vehicles invest alongside the Trust or employ a master-feeder structure, conflicts may arise regarding tax considerations, investment structuring, and allocation of opportunities. In allocating opportunities, the Sponsor may prioritize other vehicles due to higher fees or other financial incentives, though it is required to act in a manner consistent with its fiduciary duties.

By purchasing the Shares, Shareholders agree and consent to the provisions set forth in the Trust Agreement, including the Sponsor’s discretion in managing conflicts. While the Sponsor seeks to allocate investment opportunities fairly, these inherent conflicts of interest could adversely affect the Trust’s operations and returns.