Bitwise Ethereum ETF Files Q3 2024 10-Q

TL;DR

Bitwise ETH ETF Q3 10-Q filed. Holdings updated.

AI Summary

The Bitwise Ethereum ETF filed its 10-Q for the period ending September 30, 2024. The filing details the ETF's investments and financial position, including its holdings in Ethereum and related assets. Key entities involved include Bitwise Asset Management Inc. and Coinbase Custody Trust Company, LLC.

Why It Matters

This filing provides investors and the market with an update on the Bitwise Ethereum ETF's performance and holdings, offering transparency into its operations and the value of its Ethereum-based assets.

Risk Assessment

Risk Level: medium — The ETF's value is directly tied to the volatile price of Ethereum, making it susceptible to significant market fluctuations.

Key Numbers

• 2024-09-30 — Reporting Period End Date (Indicates the end of the fiscal quarter covered by the report.)
• 2024-11-08 — Filing Date (The date the 10-Q was officially submitted to the SEC.)

Key Players & Entities

• Bitwise Ethereum ETF (company) — Filer of the 10-Q
• Bitwise Asset Management Inc. (company) — Investment Manager
• Coinbase Custody Trust Company, LLC (company) — Custodian
• Ethereum (company) — Underlying asset

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

Filing Documents

• ethw-20240930.htm (10-Q) — 516KB
• ethw-ex31_1.htm (EX-31.1) — 16KB
• ethw-ex31_2.htm (EX-31.2) — 16KB
• ethw-ex32_1.htm (EX-32.1) — 8KB
• ethw-ex32_2.htm (EX-32.2) — 8KB
• img246405653_0.jpg (GRAPHIC) — 177KB
• img246405653_1.jpg (GRAPHIC) — 141KB
• img246405653_2.jpg (GRAPHIC) — 150KB
• 0000950170-24-124133.txt ( ) — 3624KB
• ethw-20240930.xsd (EX-101.SCH) — 416KB
• ethw-20240930_htm.xml (XML) — 303KB

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 12

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 16

Controls and Procedures

Item 4. Controls and Procedures 16

OTHER INFORMATION

Part II. OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 17

Risk Factors

Item 1A. Risk Factors 17

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 17

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 17

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 17

Other Information

Item 5. Other Information 17

Exhibits

Item 6. Exhibits 18 Glossary 19

– FIN ANCIAL INFORMATION

PART I – FIN ANCIAL INFORMATION:

Fin ancial Statements (Unaudited)

Item 1. Fin ancial Statements (Unaudited) BITWISE ETHEREUM ETF (Amounts in thousands, except Share and per-share amounts) September 30, 2024 (unaudited) Assets Investment in ether, at fair value (cost $ 328,122 ) $ 259,851 Cash — Total assets 259,851 Liabilities Sponsor Fee payable — Total liabilities — Net Assets $ 259,851 Shares issued and outstanding, no par value, unlimited amount authorized 13,960,000 Net asset value per share (1) $ 18.61 (1) Net asset value per share calculated using the principal market valuation as of the date of the financial statements. The accompanying notes are an integral part of the Financial Statements. 1 BITWISE ETHEREUM ETF SCHEDULE OF INVESTMENT (Amounts in thousands, except quantity of ether and percentages) September 30, 2024 (Unaudited)* Quantity Percentage of of ether Cost Fair Value Net Assets Investment in ether ^ 100,152.9571 $ 328,122 $ 259,851 100.00 % Total Investment $ 328,122 259,851 100.00 Liabilities in excess of other assets — — Net Assets $ 259,851 100.00 % * No comparative period presented as the Trust commenced operations on July 22, 2024. ^ Crypto assets do not have a singular country or geographic region, therefore country information is omitted. The accompanying notes are an integral part of the Financial Statements. 2 Bitwise ETHEREUM ETF (Amounts in thousands) For the period July 22, 2024 (commencement of operations) through September 30, 2024* (unaudited) Investment income Investment income $ — Expenses Sponsor Fee 91 Total Expenses 91 Less: Waivers and Reimbursement ( 91 ) Net Expenses — Net investment loss — Net realized and unrealized gain (loss) Net realized gain (loss) on investment in ether transferred to pay Sponsor Fee — Net realized gain (loss) on investme

Notes to Financial Statements

Notes to Financial Statements September 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 (the "Sponsor 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 S

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