Bitwise Ethereum ETF Navigates Q2 with Stable Ether Holdings

TL;DR

ETHW is a straightforward bet on Ether, and its Q2 filing confirms stable management and valuation practices.

AI Summary

The Bitwise Ethereum ETF (ETHW) reported its financial performance for the quarter ended June 30, 2025, primarily reflecting its investment in Ethereum. The ETF's investment in Ethereum, valued at fair value, is the core of its assets. The fair value of its investment in Ethereum was determined using the CME CF Ether-Dollar Reference Rate, a Level 1 input in the fair value hierarchy, as of June 30, 2025. The fund's operations involve the purchase and sale of Ether, with Coinbase Custody Trust Company LLC serving as the Ether Custodian. Key changes include the appointment of Bitwise Investment Manager LLC as the investment manager on July 22, 2024, and Bitwise Asset Management Inc. as the sponsor on May 28, 2024. The filing indicates a focus on maintaining its investment strategy in Ethereum, with no significant business changes beyond the management appointments. Risks primarily revolve around the volatility of Ether and the regulatory landscape for digital assets.

Why It Matters

This 10-Q provides crucial transparency for investors in the Bitwise Ethereum ETF, detailing its core asset holdings and valuation methodology. The reliance on the CME CF Ether-Dollar Reference Rate for fair value, a Level 1 input, suggests a high degree of market liquidity and pricing reliability for its Ethereum assets, which is important for investor confidence. The competitive landscape for crypto ETFs is intensifying, and ETHW's consistent reporting on its Ether holdings and management structure helps it stand out. For employees and customers, the stability of the fund's operations and its clear custody arrangements with Coinbase Custody Trust Company LLC reinforce trust in the product and its underlying infrastructure.

Risk Assessment

Risk Level: medium — The risk level is medium due to the inherent volatility of Ethereum, which directly impacts the ETF's value. While the fund uses a reliable Level 1 fair value input (CME CF Ether-Dollar Reference Rate) for its assets, the underlying asset itself is subject to significant price fluctuations. The filing does not detail specific operational risks beyond the nature of the asset, but the digital asset market remains susceptible to regulatory changes and market sentiment shifts.

Analyst Insight

Investors should continue to monitor the price performance of Ethereum and the broader digital asset market, as ETHW's value is directly tied to Ether. Given the clear valuation methodology and established custody, this ETF remains a viable option for those seeking direct exposure to Ethereum without holding the asset themselves.

Financial Highlights

debt To Equity

N/A

revenue

N/A

operating Margin

N/A

total Assets

N/A

total Debt

N/A

net Income

N/A

eps

N/A

gross Margin

N/A

cash Position

N/A

revenue Growth

N/A

Key Numbers

• 2025-06-30 — Quarter End Date (Period of report for the 10-Q filing)
• 2025-08-07 — Filed As Of Date (Date the 10-Q was filed with the SEC)
• 001-42159 — Commission File Number (SEC file number for Bitwise Ethereum ETF)
• July 22, 2024 — Investment Manager Appointment Date (Date Bitwise Investment Manager LLC was appointed)
• May 28, 2024 — Sponsor Appointment Date (Date Bitwise Asset Management Inc. was appointed as sponsor)

Key Players & Entities

• Bitwise Ethereum ETF (company) — registrant of the 10-Q filing
• Ethereum (dollar_amount) — primary investment asset of the ETF
• CME CF Ether-Dollar Reference Rate (company) — valuation method for Ethereum, a Level 1 input
• Coinbase Custody Trust Company LLC (company) — Ether Custodian for the ETF
• Bitwise Investment Manager LLC (company) — appointed as investment manager on July 22, 2024
• Bitwise Asset Management Inc. (company) — appointed as sponsor on May 28, 2024
• SEC (regulator) — recipient of the 10-Q filing
• NYSE Arca, Inc. (company) — exchange where ETHW shares are registered

FAQ

Risk Factors

• Ether Price Volatility [high — market]: The primary risk for the Bitwise Ethereum ETF is the inherent volatility of Ether's price. The fair value of the ETF's investment in Ethereum is directly tied to the CME CF Ether-Dollar Reference Rate. Significant price fluctuations in Ether can lead to substantial changes in the Net Asset Value (NAV) of the ETF, impacting investor returns.
• Digital Asset Regulatory Uncertainty [high — regulatory]: The regulatory landscape for digital assets, including Ethereum, remains uncertain. Changes in regulations or new legal interpretations could impact the trading, custody, or overall viability of Ether as an investment, posing a risk to the ETF's operations and the value of its holdings.
• Custodian Risk [medium — operational]: The ETF relies on Coinbase Custody Trust Company LLC as its Ether Custodian. Any operational failures, security breaches, or insolvency of the custodian could result in the loss of the ETF's Ether holdings, directly impacting its ability to track the price of Ether and fulfill its investment objectives.
• Correlation Risk [medium — market]: While the ETF aims to track the price of Ether, there is a risk that its performance may not perfectly correlate with the CME CF Ether-Dollar Reference Rate due to factors such as management fees, trading costs, and potential market inefficiencies. This could lead to tracking errors.

Industry Context

The digital asset ETF market is rapidly evolving, with increasing institutional interest in cryptocurrencies as an asset class. Competitors are launching similar products, driving innovation in custody, trading, and product structure. Regulatory clarity remains a significant factor shaping industry growth and investor adoption.

Regulatory Implications

The ETF operates within a dynamic regulatory environment. Ongoing scrutiny of digital assets by financial regulators could lead to new compliance requirements or restrictions, potentially impacting the ETF's operations and the accessibility of Ether as an investment.

What Investors Should Do

1. Monitor Ether Price Volatility
2. Stay Informed on Regulatory Developments
3. Review Custodian's Security and Stability

Key Dates

• 2025-06-30: Quarter End Date — Marks the end of the reporting period for the 10-Q filing, providing a snapshot of the ETF's financial position and performance.
• 2025-08-07: Filed As Of Date — Indicates when the 10-Q report was officially filed with the SEC, signifying the completion of the reporting and review process.
• 2024-07-22: Investment Manager Appointment Date — Bitwise Investment Manager LLC was appointed, formalizing the management structure responsible for the ETF's investment strategy.
• 2024-05-28: Sponsor Appointment Date — Bitwise Asset Management Inc. was appointed as the sponsor, establishing the entity overseeing the ETF's overall operations and compliance.

Glossary

CME CF Ether-Dollar Reference Rate

A benchmark rate that provides a real-time, wholesale price for Ether in U.S. dollars, calculated by CME Group and CF Benchmarks. (This rate is used to determine the fair value of the ETF's investment in Ethereum, serving as the primary valuation input.)

Fair Value Hierarchy

A framework used to classify the inputs used in measuring fair value. Level 1 inputs are quoted prices in active markets for identical assets. (The ETF's investment in Ethereum is valued using Level 1 inputs, indicating it's based on readily available market prices.)

Ether Custodian

An entity responsible for securely holding and safeguarding the digital assets (Ether) on behalf of the ETF. (Coinbase Custody Trust Company LLC's role as custodian is critical for the security and integrity of the ETF's primary asset.)

Net Asset Value (NAV)

The per-share market value of a fund, calculated by taking the total value of its assets, subtracting liabilities, and dividing by the number of outstanding shares. (The NAV is a key metric for investors to understand the underlying value of their ETF shares, directly influenced by Ether's price.)

Year-Over-Year Comparison

This 10-Q filing does not provide comparative financial data for the prior year's quarter. However, the appointment of Bitwise Investment Manager LLC and Bitwise Asset Management Inc. in mid-2024 indicates a formalization of the ETF's management structure. Key risks related to Ether price volatility and regulatory uncertainty remain prominent, consistent with the nature of digital asset investments.

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 — ded; (iii) when it has issued more than $1.0 billion of non-convertible debt over a three-ye

Filing Documents

• ethw-20250630.htm (10-Q) — 840KB
• ethw-ex31_1.htm (EX-31.1) — 17KB
• ethw-ex31_2.htm (EX-31.2) — 18KB
• ethw-ex32_1.htm (EX-32.1) — 9KB
• ethw-ex32_2.htm (EX-32.2) — 9KB
• img247326291_0.jpg (GRAPHIC) — 632KB
• img247326291_1.jpg (GRAPHIC) — 543KB
• img247326291_2.jpg (GRAPHIC) — 464KB
• 0000950170-25-105121.txt ( ) — 7510KB
• ethw-20250630.xsd (EX-101.SCH) — 434KB
• ethw-20250630_htm.xml (XML) — 548KB

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 13

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 17

Controls and Procedures

Item 4. Controls and Procedures 17

OTHER INFORMATION

Part II. OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 19

Risk Factors

Item 1A. Risk Factors 19

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 21

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 22

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 22

Other Information

Item 5. Other Information 22

Exhibits

Item 6. Exhibits 23 Glossary 24

– 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) June 30, 2025 December 31, 2024 (unaudited) Assets Investment in ether, at fair value (cost $ 316,247 and $ 394,302 , as of June 30, 2025 and December 31, 2024, respectively) $ 268,957 $ 404,529 Cash — — Total assets 268,957 404,529 Liabilities Sponsor Fee payable 42 — Total liabilities 42 — Net Assets $ 268,915 $ 404,529 Shares issued and outstanding, no par value, unlimited amount authorized 14,910,000 16,880,000 Principal Market NAV per share $ 18.04 $ 23.96 The accompanying notes are an integral part of the Financial Statements. 1 BITWISE ETHEREUM ETF SCHEDULES OF INVESTMENT (Amounts in thousands, except quantity of ether and percentages) June 30, 2025 (Unaudited) Quantity Percentage of of ether Cost Fair Value Net Assets Investment in ether ^ 106,889.0042 $ 316,247 $ 268,957 100.02 % Total Investment $ 316,247 268,957 100.02 Liabilities in excess of other assets ( 42 ) ( 0.02 ) Net Assets $ 268,915 100.00 % December 31, 2024 Quantity Percentage of of ether Cost Fair Value Net Assets Investment in ether ^ 121,101.8582 $ 394,302 $ 404,529 100.00 % Total Investment $ 394,302 404,529 100.00 Liabilities in excess of other assets — — Net Assets $ 404,529 100.00 % ^ 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) Three months ended June 30, 2025* Six months ended June 30, 2025* (unaudited) (unaudited) Investment income Investment income $ — $ — Expenses Sponsor Fee

Notes to Financial Statements

Notes to Financial Statements June 30, 2025 (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 $ 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

View Full Filing

View this 10-Q filing on SEC EDGAR