Bitwise Ethereum ETF
For the period ended Mar 31, 2026. Filed May 6, 2026.
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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.
Mar 31, 2026 · Filed May 6, 2026
ETHW$15.91-0.8%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-09-30; filed 2025-11-10.
0001193125-25-274499
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-03-31; filed 2026-05-06.
0001193125-26-209331
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 60 previous paragraphs and 43 current paragraphs.
18 unchanged; 8 reworded; 16 added; 34 removed; 0 previous and 1 current paragraphs rearranged.
Tables are not compared: 1 previous and 1 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 (16)
Current report
Net assets in the above table are calculated in accordance with U.S. GAAP based on the principal market price for ether that the Trust considered its principal market, as of 4:00 p.m., New York time, on the valuation date.
Current report
During the three months ended March 31, 2026, the Trust's net assets decreased from $343,685 on December 31, 2025 to $219,228 on March 31, 2026. The decrease in the Trust's net assets resulted primarily from dispositions of approximately (63) ether to pay the Sponsor Fee, and approximately (47,821) ether for the redemption of Shares, with a value of $(116,536) from the Trust. Dispositions were partially offset by additions to the Trust of approximately 36,871 ether with a value of $102,476 in connection with Share creations during the period.
Current report
By comparison, during the three months ended March 31, 2025, the Trust's net assets decreased from $404,529 on December 31, 2024 to $173,762 on March 31, 2025. The decrease in the Trust's net assets resulted primarily from dispositions of approximately (24) ether to pay the Sponsor Fee, and approximately (33,143) ether for the redemption of Shares, with a value of $(101,753) from the Trust. Dispositions were partially offset by additions to the Trust of approximately 7,174 ether with a value of $20,853 in connection with Share creations during the period.
Current report
During the three months ended March 31, 2025, net realized and change in unrealized loss on investment in ether was $(149,835), which included a realized gain of $2 on the transfer of ether to pay the Sponsor Fee, a realized loss of $(13,641) on the sale of ether to meet redemptions, and a change in unrealized depreciation on investment in ether of $(136,196). Net realized and change in unrealized loss on investment in ether for the period resulted primarily from ether price depreciation from $3,345.85 on December 31, 2024 to $1,836.58 on March 31, 2025. Net decrease in net assets resulting from operations for the three months ended March 31, 2025 was $(149,928), which consisted of the net realized and unrealized loss on investment in ether, less the Sponsor Fee of $(136) and waiver and reimbursement of $43.
Current report
Investment Valuation - Principal Market Net Asset Value ("NAV")
Current report
To determine which market is the Trust's principal market (or in the absence of a principal market, the most advantageous market) for purposes of calculating the Trust's net asset value in accordance with U.S. GAAP ("Principal Market NAV" and "Principal Market NAV per Share"), the Trust follows ASC Topic 820-10, Fair Value Measurement, which outlines the application of fair value accounting. ASC 820-10 determines fair value to be the price that would be received for ether in a current sale, which assumes an orderly transaction between market participants on the measurement date. ASC 820-10 requires the Trust to assume that ether is sold in its principal market to market participants or, in the absence of a principal market, the most advantageous market. Market participants are defined as buyers and sellers in the principal or most advantageous market that are independent, knowledgeable, and willing and able to transact.
Current report
The Trust only receives ether in connection with a creation order from the Authorized Participant (or a Liquidity Provider) and does not itself transact on any Digital Asset Markets. Therefore, the Trust looks to market-based volume and level of activity for Digital Asset Markets. The Authorized Participant(s), or a Liquidity Provider, may transact in a Brokered Market, a Dealer Market, Principal-to-Principal Markets and Exchange Markets ("Trading Platform Markets”), each as defined in the FASB ASC Master Glossary (collectively, "Digital Asset Markets").
Current report
In determining which of the eligible Digital Asset Markets is the Trust's principal market, the Trust reviews these criteria in the following order:
Current report
First, the Trust reviews a list of Digital Asset Markets that are U.S. accessible, have historically provided publicly available data, and are exchanges that Bitwise normally transacts on. Specifically, the Trust utilizes a third-party valuation vendor, Lukka, Inc., to identify publicly available, well established and reputable crypto asset exchanges selected in their sole discretion.
Current report
Second, Lukka, Inc. sorts these Digital Asset Markets from high to low by market-based volume and level of activity of ether traded on each Digital Asset Market. For the three months ended March 31, 2026, this sort was performed for Digital Asset Markets for the period mid-February through mid-March 2026.
Current report
Third, Lukka, Inc. then reviews pricing fluctuations and the degree of variances in price on each Digital Asset Market during the 60 minutes prior to 4:00 pm. ET for ether to identify any material notable variances that may impact the volume or price information of a particular Digital Asset Market.
Current report
Fourth, Lukka, Inc. then selects a Digital Asset Market as its principal market based on the highest market-based volume level of activity and price stability in comparison to the other Digital Asset Markets on the list.
Current report
As of March 31, 2026, Lukka, Inc. included Binance, Bitfinex, Bitflyer, Bitstamp, Bullish, Bybit, Coinbase, Crypto.com, Gate.io, Gemini, HitBTC, Huobi, itBit, Kraken, KuCoin, LMAX, MEXC Global, OKX and Poloniex as its primary Exchange Markets in consideration.
Current report
At March 31, 2026 the principal market for ether, which comprised the majority of the Trust’s assets for the period ended March 31, 2026, was Crypto.com with a price of $2,095.22.
Current report
The Trust determines its principal market (or in the absence of a principal market the most advantageous market) annually and conducts a quarterly analysis to determine (i) if there have been recent changes to each Digital Asset Market’s trading volume and level of activity in the trailing twelve months, (ii) if any Digital Asset Markets have developed that the Trust has access to, or (iii) if recent changes to each Digital Asset Market's price stability have occurred that would materially impact the selection of the principal market and necessitate a change in the Trust's determination of its principal market.
Current report
The cost basis of the ether received by the Trust in connection with a creation order is recorded by the Trust at the fair value of ether at 4:00 p.m., New York time, on the creation date for financial reporting purposes. The cost basis recorded by the Trust may differ from proceeds collected by the Authorized Participant from the sale of the corresponding Shares to investors.
Removed paragraphs (34)
Previous report
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 for the period from July 2024 to September 2025.
Previous report
From July 23, 2024 to September 30, 2025, the Shares of the Trust traded at an average premium, based on closing prices at 4:00 p.m. ET, and an estimated, unaudited, NAV per-share of 0.003%. During that same period, the highest premium was 1.87% on May 8, 2025, and the lowest premium was 0.001% on August 19, 2024. During that same period, the highest discount was 1.91% on August 25, 2025, and the lowest discount was 0.01% on May 15, 2025.
Previous report
The following chart shows the price of ether for the period January 1, 2024 through September 30, 2025, as quoted by the Benchmark Provider, using the ETHUSD_NY.
Previous report
Financial Information for the Three Months and Nine Months ended September 30, 2025 and the Period from July 22, 2024 (Commencement of Operations) to September 30, 2024^
Previous report
The following table sets forth statements of operations data for the three months and nine months ended September 30, 2025 and the period from July 22, 2024 (commencement of operations) to September 30, 2024.
Previous report
Statements of Operations (Unaudited)
Previous report
No comparative financial statements have been provided as the Trust’s operations commenced on July 22, 2024.
Previous report
Three-Month Period ended September 30, 2025*
Previous report
The following provides a discussion of the material items that impacted the Trust’s financial condition during the applicable period:
Previous report
Sponsor Fee
Previous report
The Trust pays a unitary Sponsor Fee of 0.20% per annum of the Trust’s ether holdings. The Sponsor contractually waived the Sponsor Fee on the first $500 million of the Trust assets through January 22, 2025, and has been accruing at an annual rate of 0.20% of the Trust’s net assets since then. The Sponsor Fee for the three months ended September 30, 2025 was approximately $251. The increase in Sponsor Fee was primarily related to an increase in the Trust’s net assets value due to an increase in the fair value of ether held by the Trust and the expiration of the Sponsor Fee waiver as of January 22, 2025.
Previous report
Net Realized Gain (Loss) from Ethereum
Previous report
Net realized gain on the sale of ether to pay the Sponsor Fee for the three months ended September 30, 2025 was approximately $109. The increase was due to an increase in the fair value of ether sold or transferred by the Trust.
Previous report
Net realized gain on investment in ether sold for redemptions for the three months ended September 30, 2025 was approximately $146. The increase was primarily due to an increase in the fair value of ether sold by the Trust.
Previous report
Net Change in Unrealized Appreciation (Depreciation) from Ethereum
Previous report
Net change in unrealized appreciation on investment in ether for the three months ended September 30, 2025 was approximately $187,615. The increase was primarily due to an increase in the fair value of ether held by the Trust.
Previous report
Net Increase (Decrease) in Net Assets resulting from Operations
Previous report
Net increase in net assets resulting from operations for the three months ended September 30, 2025 was approximately $187,619. This increase was primarily due to an increase in net realized loss and an increase in unrealized appreciation on investments in ether, with a net realized and unrealized gain on investment in ether of approximately $187,870 less the Sponsor Fee of $251, for the three months ended September 30, 2025.
Previous report
The change in net realized and unrealized gain (loss) was primarily due to fluctuations in the ether price during the respective period. For the three-month period ended September 30, 2025, the net realized and unrealized gain on investment in ether was driven by appreciation in the ETHUSD_NY price of ether from $2,505.17 per ether as of June 30, 2025 to $4,131.76 per ether as of September 30, 2025.
Previous report
Comparison of the Nine-Month Period ended September 30, 2025 and the Period from July 10, 2024 (Commencement of operations) to September 30, 2024
Previous report
The following provides a discussion of the material items that impacted the Trust’s financial condition during the applicable period:
Previous report
Sponsor Fee
Previous report
The Trust pays a unitary Sponsor Fee of 0.20% per annum of the Trust’s ether holdings. The Sponsor contractually waived the Sponsor Fee on the first $500 million of the Trust assets through January 22, 2025, and has been accruing at an annual rate of 0.20% of the Trust’s net assets since then. The Sponsor Fee for the nine months ended September 30, 2025 was approximately $492, of which $43 was contractually waived, resulting in a net Sponsor Fee of approximately $449 compared to the Sponsor Fee for the period from July 22, 2024 (commencement of operations) to September 30, 2024 of approximately $91, of which $91 was contractually waived, resulting in a net Sponsor Fee of $0. The increase in Sponsor Fee was primarily related to an increase in the Trust’s net assets value due to an increase in the fair value of ether held by the Trust and the expiration of the Sponsor Fee waiver as of January 22, 2025.
Previous report
Net Realized Gain (Loss) from Ethereum
Previous report
Net realized gain on the sale of ether to pay the Sponsor Fee for the nine months ended September 30, 2025 was approximately $120, compared to net realized gain on the sale of ether to pay the Sponsor Fee for the period from July 22, 2024 (commencement of operations) to September 30, 2024 of approximately $0 due to the Sponsor Fee being contractually waived. This change was primarily due to the expiration of the Sponsor Fee waiver as of January 22, 2025 and an increase in the fair value of ether sold or transferred by the Trust.
Previous report
Net realized loss on investment in ether sold for redemptions for the nine months ended September 30, 2025 was approximately $30,202, compared to net realized loss on investment in ether sold for redemptions for the period from July 22, 2024 (commencement of operations) to September 30, 2024 of approximately $1,116. This change was primarily due to an increase in the fair value of ether sold by the Trust.
Previous report
Net Change in Unrealized Appreciation (Depreciation) from Ethereum
Previous report
Net change in unrealized appreciation on investment in ether for the nine months ended September 30, 2025 was approximately $130,098, compared to net change in unrealized depreciation on investment in ether for the period from July 22, 2024 (commencement of operations) to September 30, 2024 of approximately $68,271. This change was primarily due to an increase in the fair value of ether held by the Trust.
Previous report
Net Increase (Decrease) in Net Assets resulting from Operations
Previous report
The change in net realized and unrealized gain (loss) was primarily due to fluctuations in the ether price during the respective period. For the nine-month period ended September 30, 2025, the net realized and unrealized gain on investment in ether was driven by appreciation in the ETHUSD_NY price of ether from $3,345.85 per ether as of December 31, 2024 to $4,131.76 per ether as of September 30, 2025. For the period from July 22, 2024 (commencement of operations) to September 30, 2024, the net realized and unrealized loss on investment in ether was driven by the depreciation in the ETHUSD_NY price of ether from $3,484.67 per ether as of July 22, 2024 (commencement of operations) to $2,591.07 per ether as of September 30, 2024.
Previous report
Net assets increased to approximately $499,703 at September 30, 2025, with a 24.46% increase in Principal Market NAV per-share for the nine months ended September 30, 2025. The increase in net assets primarily resulted from the aforementioned appreciation in the price of ether, the net decrease in capital share transactions of approximately $4,393, and a net increase resulting from operations of $99,567.
Previous report
Net assets increased to approximately $259,851 at September 30, 2024, with a 25.56% decrease in Principal Market NAV per-share for the period from July 22, 2024 (commencement of operations) to September 30, 2024. The increase in net assets primarily resulted from the aforementioned depreciation in the price of ether, the net increase in capital share transactions of approximately $329,238, and a net decrease resulting from operations of $69,387.
Previous report
Principal Market and Fair Value Determination
Previous report
The Trust’s periodic financial statements are prepared in accordance with the Financial Accounting Standards Board Accounting Standards Codification Topic 820, “Fair Value Measurements and Disclosures” (“ASC Topic 820”) and utilize an exchange-traded price from the Trust’s principal market for ether on the Trust’s financial statement measurement date. The Sponsor determines in its sole discretion the valuation sources and policies used to prepare the Trust’s financial statements in accordance with U.S. GAAP. The Trust has engaged a third-party vendor to obtain a price from a principal market for ether, which will be either the market the Trust normally transacts in for ether or, if the Trust does not normally transact in any market or such market suffers an operational interruption and is unavailable, determined and designated by such third-party vendor daily based on its consideration of several exchange characteristics, including oversight, and the volume and frequency of trades. Under U.S. GAAP, such a price is expected to be deemed a Level 1 input in accordance with the ASC Topic 820 because it is expected to be a quoted price in active markets for identical assets or liabilities.
Reworded paragraphs (8)
Previous wording
The Trust’s investment objective is to seek to provide shareholders of the Trust (“Shareholders”) with exposure to the value of ether held by the Trust that is reflective of the actual ether market in which investors can purchase or sell ether, less the expenses of the Trust’s operations and other liabilities. In seeking to achieve its investment objective, the Trust holds ether and establishes its net asset value (“NAV") by reference to the CME CF Ether – Dollar Reference Rate – New York Variant (“ETHUSD_NY”). The ETHUSD_NY was designed to provide a daily, 4:00 p.m. ET reference rate of the U.S. dollar price of one ether that may be used to develop financial products and is calculated by CF Benchmarks Ltd. (the “Benchmark Provider”) based on an aggregation of executed trade flow of major ether trading platforms (“Constituent Platforms”).
Current wording
The Trust’s investment objective is to seek to provide shareholders of the Trust (“Shareholders”) with exposure to the value of ether held by the Trust that is reflective of the actual ether market in which investors can purchase or sell ether, less the expenses of the Trust’s operations and other liabilities. In seeking to achieve its investment objective, the Trust holds ether and establishes its net asset value (“NAV") by reference to the CME CF Ether – Dollar Reference Rate – New York Variant (“Pricing Index”). The Pricing Index was designed to provide a daily, 4:00 p.m. ET reference rate of the U.S. dollar price of one ether that may be used to develop financial products and is calculated by CF Benchmarks Ltd. (the “Benchmark Provider”) based on an aggregation of executed trade flow of major ether trading platforms (“Constituent Platforms”).
Previous wording
Net increase in net assets resulting from operations for the nine months ended September 30, 2025 was approximately $99,567, compared to net decrease in net assets resulting from operations for the period from July 22, 2024 (commencement of operations) to September 30, 2024 of approximately $69,387. This change was primarily due to an increase in net realized loss and an increase in unrealized appreciation on investments in ether, with a net realized and unrealized gain on investment in ether of approximately $100,016, less the Sponsor Fee of $449, for the nine months ended September 30, 2025, compared to a net realized and unrealized loss on investment in ether of approximately $69,387, for the period from July 22, 2024 (commencement of operations) to September 30, 2024.
Current wording
Net realized and change in unrealized loss on investment in ether for the three months ended March 31, 2026 was $(110,420), which included a realized gain of $54 on the transfer of ether to pay the Sponsor Fee, a realized loss of $(38,498) on the sale of ether to meet redemptions, a realized gain of $868 from the transfer of ether to meet In-Kind Redemptions, and a change in unrealized depreciation on investment in ether of $(72,844). Net realized and change in unrealized loss on investment in ether for the period resulted primarily from ether price depreciation from $2,964.79 on December 31, 2025 to $2,097.12 on March 31, 2026. Net decrease in net assets resulting from operations for the three months ended March 31, 2026 was $(110,559), which consisted of the net realized and unrealized loss on investment in ether, less the Sponsor Fee of $(139).
Previous wording
As of September 30, 2025, the Trust held a net closing balance of 120,095.5620 ether with a total market value of $496,206,039 based on the CME CF Ether - Dollar Reference Rate - New York Variant ("ETHUSD_NY") price of $4,131.76, used to determine the Trust's NAV. The total market value of the Trust's ether held was $499,790,892 based on the price of ether (Lukka Prime Rate) in the principal market (Crypto.com) of $4,161.61, used to determine the Trust's Principal Market NAV.
Current wording
As of March 31, 2026, the Trust held a net closing balance of 104,650.7879 ether with a total market value of $219,465,260 based on the ETHUSD_NY price of $2,097.12, used to determine the Trust's NAV. The total market value of the Trust's ether held was $219,266,424 based on the price of ether (Lukka Prime Rate) in the principal market (Crypto.com) of $2,095.22, used to determine the Trust's Principal Market NAV.
Previous wording
As of September 30, 2024, the Trust held a net closing balance of 100,152.9571 ether with a total market value of $259,503,322 based on the CME CF Ether – Dollar Reference Rate –New York Variant ("ETHUSD_NY") price of $2,591.07, used to determine the Trust's NAV. The total market value of the Trust's ether held was $259,850,853 based on the price of ether (Lukka Prime Rate) in the principal market (Crypto.com) of $2,594.54, used to determine the Trust's Principal Market NAV.
Current wording
As of March 31, 2025, the Trust held a net closing balance of 95,108.4265 ether with a total market value of $174,674,234 based on the ETHUSD_NY price of $1,836.58, used to determine the Trust's NAV. The total market value of the Trust's ether held was $173,794,481 based on the price of ether (Lukka Prime Rate) in the principal market (Crypto.com) of $1,827.33, used to determine the Trust's Principal Market NAV.
Previous wording
The Trust pays the unitary Sponsor Fee of 0.20% per annum of the Trust’s ether holdings. The Sponsor contractually waived the Sponsor Fee on the first $500 million of Trust assets through January 22, 2025, and has been accruing at an annual rate of 0.20% of the Trust’s Ether holdings 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, Ether 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 $500,000 per annum. The Sponsor also agreed to pay the costs of the Trust’s organization.
Current wording
The Trust agreed to pay the unitary Sponsor Fee of 0.20% per annum of the Trust’s ether holdings. The Sponsor contractually waived the Sponsor Fee on the first $500 million of Trust assets through January 22, 2025, 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, Ether 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 $500,000 per annum. The Sponsor also agreed to pay the costs of the Trust’s organization.
Previous wording
As of September 30, 2025, the Trust has not used, nor does it expect to use in the future, special purpose entities to facilitate off-balance sheet financing arrangements and have no loan guarantee arrangements or off-balance sheet arrangements of any kind other than agreements entered into in the normal course of business, which may include indemnification provisions related to certain risks service providers undertake in performing services which are in the best interests of the Trust. While the Trust’s exposure under such indemnification provisions cannot be estimated, these general business indemnifications are not expected to have a material impact on the Trust’s financial position.
Current wording
As of March 31, 2026, the Trust has not used, nor does it expect to use in the future, special purpose entities to facilitate off-balance sheet financing arrangements and has no loan guarantee arrangements or off-balance sheet arrangements of any kind other than agreements entered into in the normal course of business, which may include indemnification provisions related to certain risks service providers undertake in performing services which are in the best interests of the Trust. While the Trust’s exposure under such indemnification provisions cannot be estimated, these general business indemnifications are not expected to have a material impact on the Trust’s financial position.
Previous wording
No material changes have occurred during the nine months ended September 30, 2025.
Current wording
No material changes have occurred during the three months ended March 31, 2026.
Previous wording
Please refer to Note 2 to the financial statements included in this Quarterly Report for further discussion of the Trust’s Significant Accounting Policies.
Current wording
Please refer to Note 2 to the financial statements included in this Quarterly Report for further discussion of the Trust’s accounting policies.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
For the three months ended March 31, 2026 Compared to the three months ended March 31, 2025^