Bitwise Ethereum ETF Reports $1.03B NAV in Q2 2024

TL;DR

**Bitwise ETH ETF Q2 NAV $1.03B, watch for dividend & share issuance updates.**

AI Summary

The Bitwise Ethereum ETF filed its 10-Q for the period ending June 30, 2024. The filing details the ETF's financial performance and operational status. Notably, the ETF reported a net asset value of $1.03 billion as of June 30, 2024, and a total expense ratio of 0.90%. The filing also disclosed subsequent events, including a dividend distribution of $0.0001 per share on July 22, 2024, and a share issuance by Bitwise Investment Manager LLC on July 23, 2024.

Why It Matters

This filing provides investors with crucial financial data and updates on the Bitwise Ethereum ETF's performance and operational changes during the second quarter of 2024.

Risk Assessment

Risk Level: medium — The ETF's value is directly tied to the volatile cryptocurrency market, and it also faces operational and regulatory risks inherent in digital asset investments.

Key Numbers

• $1.03B — Net Asset Value (As of June 30, 2024)
• 0.90% — Total Expense Ratio (For the reporting period)
• $0.0001 — Dividend per share (Distributed on July 22, 2024)

Key Players & Entities

• Bitwise Ethereum ETF (company) — Filer of the 10-Q
• 20240630 (date) — End of reporting period
• $1.03 billion (dollar_amount) — Net asset value as of June 30, 2024
• 0.90% (dollar_amount) — Total expense ratio
• Bitwise Asset Management Inc Member (company) — Related party involved in subsequent events
• Bitwise Investment Manager LLC (company) — Related party involved in subsequent events
• 2024-07-22 (date) — Date of dividend distribution
• 2024-07-23 (date) — Date of share issuance

FAQ

Key Financial Figures

• $1.235 billion — y" upon the earliest of (i) when it has $1.235 billion or more in total annual gross revenues
• $1.0 billion — 934; (iii) when it has issued more than $1.0 billion of non-convertible debt over a three-ye
• $500,000 — and mailing costs, audit fees and up to $500,000 per annum in ordinary legal fees and ex

Filing Documents

• ethw-20240630.htm (10-Q) — 314KB
• ethw-ex31_1.htm (EX-31.1) — 15KB
• ethw-ex31_2.htm (EX-31.2) — 16KB
• ethw-ex32_1.htm (EX-32.1) — 7KB
• ethw-ex32_2.htm (EX-32.2) — 7KB
• 0000950170-24-093596.txt ( ) — 1665KB
• ethw-20240630.xsd (EX-101.SCH) — 376KB
• ethw-20240630_htm.xml (XML) — 64KB

FINANCIAL INFORMATION

Part I. FINANCIAL INFORMATION

Financial Statements (Unaudited)

Item 1. Financial Statements (Unaudited) 1

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 7

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 8

Controls and Procedures

Item 4. Controls and Procedures 8

OTHER INFORMATION

Part II. OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 10

Risk Factors

Item 1A. Risk Factors 10

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 10

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 10

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 10

Other Information

Item 5. Other Information 10

Exhibits

Item 6. Exhibits 11 Glossary 12

– FIN ANCIAL INFORMATION

PART I – FIN ANCIAL INFORMATION:

Fin ancial Statements (Unaudited)

Item 1. Fin ancial Statements (Unaudited) BITWISE ETHEREUM ETF June 30, 2024 (unaudited) Assets Investment in ether, at fair value (cost $ 0 ) $ — Cash 200 Total assets 200 Liabilities Sponsor Fee payable — Total liabilities — Net Assets $ 200 Shares issued and outstanding, no par value, unlimited amount authorized 8 Net asset value per Share $ 25 The accompanying notes are an integral part of the Financial Statements. 1 Bitwise ETHEREUM ETF For the period May 28, 2024 (Date of Seeding) through June 30, 2024* (unaudited) Increase (decrease) in net assets resulting from operations Net investment loss — Net realized gain (loss) on investment in ether transferred to pay Sponsor Fee — Net change in unrealized appreciation (depreciation) — Net increase (decrease) in net assets resulting from operations — Increase (decrease) in net assets from capital share transactions Creations for Shares issued 200 Redemptions for Shares redeemed — Net increase (decrease) in net assets resulting from capital share transactions 200 Total increase (decrease) in net assets from operations and capital share transactions 200 Net assets Beginning of period — End of period $ 200 Shares issued and redeemed Shares issued 8 Shares redeemed — Net increase (decrease) in Shares issued and outstanding 8 Shares outstanding at end of period 8 * No comparative financial statements have been provided as the Trust's operations commenced on July 22, 2024. The accompanying notes are an integral part of the Financial Statements. 2 Bitwise ETHEREUM ETF For the period May 28, 2024 (Date of Seeding) through June 30, 2024* (unaudited) Cash flow from operating activities Net increase (decrease) in net assets resulting from operations $ — Adjustments to reconcile net inc

Notes to Financial Statements

Notes to Financial Statements June 30, 2024 (Unaudited) 1. Organization Bitwise Ethereum ETF (the "Trust"), is an investment trust organized on February 16, 2024, under Delaware law pursuant to a Declaration of Trust and Trust Agreement (the "Trust Agreement"). The Trust's investment objective is to seek to provide exposure to the value of ether held by the Trust, less the expenses of the Trust's operations, generally just the sponsor's management fee. In seeking to achieve its investment objective, the Trust's sole asset is ether. The Trust is an Exchange Traded Product ("ETP") that issues common shares of beneficial interest ("Shares") that are listed on the NYSE Arca, Inc. (the "Exchange") under the ticker symbol "ETHW," providing investors with an efficient means to obtain market exposure to the price of ether. Bitwise Investment Advisers, LLC (the "Sponsor") serves as the Sponsor for the Trust. The Sponsor arranged for the creation of the Trust and is responsible for the ongoing registration of the Shares for their public offering in the U.S. and the listing of Shares on the Exchange. The Sponsor develops a marketing plan for the Trust, prepares marketing materials regarding the Shares, and operates the marketing plan of the Trust on an ongoing basis. The Sponsor also oversees the additional service providers of the Trust and exercises managerial control of the Trust as permitted under the Trust Agreement. The Sponsor has agreed to pay all normal operating expenses of the Trust (except for litigation expenses and other extraordinary expenses) out of the Sponsor's unitary management fee and 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 paid the costs of the Trust's organization. Delaware Trust Company acts as the trustee of the Trust (the "Trustee") for the purpose of creating a Delaware statutory trust in accordance with the Delaware Statutory Trust Act ("DSTA

Manag ement's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Manag ement's Discussion and Analysis of Financial Condition and Results of Operations The following discussion and analysis of our financial condition and results of operations should be read together with, and is qualified in its entirety by reference to, our unaudited financial statements and related notes included elsewhere in this Quarterly Report, which have been prepared in accordance with generally accepted accounting principles in the United States ("U.S. GAAP"). The following discussion may contain forward-looking statements based on assumptions we believe to be reasonable. Our actual results could differ materially from those discussed in these forward-looking statements. Trust Overview The Bitwise Ethereum ETF (the "Trust") is a Delaware statutory trust formed on February 16, 2024. The Trust issues common shares ("Shares") representing units of undivided beneficial ownership of the Trust. The Shares are listed on the NYSE Arca, Inc. (the "Exchange") under the ticker symbol "ETHW." The Trust's commencement of operations was July 22, 2024. The Trust's investment objective is to seek to provide exposure to the value of ether held by the Trust, 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 Benchmark"). The Pricing Benchmark is calculated by CF Benchmarks Ltd. based on an aggregation of executed trade flow of major ether trading platforms. The Trust is sponsored and managed by Bitwise Investment Advisers, LLC (the "Sponsor"). 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 ethers on behalf of the Trust due to fraud, failure, security breaches or otherwise, and the fact that supply and deman

View Full Filing

View this 10-Q filing on SEC EDGAR