Mon, May 12, 3:32 PM (35 days ago)
**Bitwise Bitcoin ETF (BITB) Q1 2025 Financial Summary** **Company Overview:** Bitwise Bitcoin ETF (BITB) is an investment trust focused on providing exposure to the value of bitcoin, less operational expenses. It is listed on the NYSE Arca under the ticker BITB. **Financial Performance (Q1 2025):** - **Revenue:** No direct revenue from investments; income is derived from bitcoin holdings. - **Profit Margins:** The trust experienced a net decrease in net assets of $453,220, primarily due to a net realized and unrealized loss on bitcoin investments of $451,360 and a sponsor fee of $1,860. - **Cash Flow:** The trust does not hold significant cash; cash flow is generated from the sale of bitcoin to cover expenses not assumed by the sponsor. - **Earnings Changes:** The net decrease in net assets was driven by a shift from unrealized appreciation to unrealized depreciation on bitcoin investments, reflecting a decline in bitcoin prices. **Quarterly Performance Discussion:** - **Bitcoin Holdings:** As of March 31, 2025, the trust held 38,003.7680 bitcoin with a total market value of $3,133,221. - **Net Assets:** Net assets decreased to $3,132,666, reflecting an 11.76% decrease in Principal Market NAV per share. - **Sponsor Fee:** The sponsor fee increased to $1,860 due to the expiration of the fee waiver and an increase in the trust's net asset value. - **Market Conditions:** The decrease in net assets was primarily due to bitcoin price depreciation and a net decrease in capital share transactions. **Trends and Uncertainties:** - **Bitcoin Volatility:** The trust's performance is highly sensitive to bitcoin price fluctuations, which have been volatile. - **Regulatory Risks:** The trust faces uncertainties related to regulatory changes and the unregulated nature of crypto assets. - **Operational Risks:** Dependence on service providers and potential conflicts of interest with the sponsor. **Future Operations Impact:** - **Sponsor Fee:** The sponsor fee will continue to accrue at 0.20% of the trust's bitcoin holdings, impacting future net asset values. - **Market Conditions:** Future performance will be influenced by bitcoin price movements and market demand. - **Regulatory Environment:** Changes in regulations could affect the trust's operations and the value of its holdings. **Conclusion:** Bitwise Bitcoin ETF's Q1 2025 performance was negatively impacted by bitcoin price depreciation and increased sponsor fees. The trust's future performance will depend on market conditions, regulatory environment, and operational efficiencies. Investors should be aware of the high volatility and regulatory risks associated with crypto assets.