Fidelity Bitcoin Fund Maintains Level 1 Fair Value for Bitcoin Holdings

Ticker: FBTC · Form: 10-Q · Filed: 2025-08-08T00:00:00.000Z

Sentiment: neutral

Topics: Bitcoin ETF, Cryptocurrency, 10-Q Filing, Fair Value, Digital Assets, Fidelity, Investment Fund

Related Tickers: FBTC, BTC-USD, GBTC, IBIT

TL;DR

**FBTC's Bitcoin valuation is rock-solid Level 1, signaling high liquidity and transparency for investors.**

AI Summary

The Fidelity Wise Origin Bitcoin Fund (FBTC) filed its 10-Q for the quarter ended June 30, 2025, indicating its primary asset is Bitcoin. The fund's investment in Bitcoin is valued using Level 1 fair value inputs, reflecting readily observable quoted prices in active markets. As of June 30, 2025, the fund's total net assets are reported, with a significant portion attributed to its Bitcoin holdings. The filing details the fair value hierarchy for its Bitcoin investments, with all being classified under Level 1 for both December 31, 2024, and June 30, 2025. There were no reported Level 2 or Level 3 fair value inputs for Bitcoin during these periods, indicating high liquidity and transparency in its primary asset valuation. The fund commenced operations on January 11, 2024, and the reporting period covers its activities from January 1, 2025, to June 30, 2025, and April 1, 2025, to June 30, 2025. The fund's financial health is directly tied to the market performance of Bitcoin, which is subject to significant volatility.

Why It Matters

This filing provides crucial transparency for investors in FBTC, confirming that its Bitcoin holdings are valued using Level 1 inputs, signifying high liquidity and reliable market pricing. This reduces valuation risk compared to funds using less transparent Level 2 or Level 3 inputs, which could impact investor confidence and fund stability. In the competitive spot Bitcoin ETF market, this commitment to transparent, market-based valuation helps FBTC differentiate itself and potentially attract more capital, influencing the broader crypto investment landscape and setting a standard for other digital asset funds.

Risk Assessment

Risk Level: medium — The risk level is medium because while the fund's valuation methodology for Bitcoin (Level 1 fair value inputs) indicates high transparency and liquidity, the underlying asset, Bitcoin, is inherently volatile. The filing itself doesn't detail specific operational risks or market risks beyond the asset's nature, but the fund's performance is entirely dependent on Bitcoin's price fluctuations, which can be significant.

Analyst Insight

Investors should monitor Bitcoin's market performance closely, as FBTC's value is directly correlated. Given the Level 1 valuation, investors can be confident in the reported asset values, but should still consider their personal risk tolerance for cryptocurrency exposure before investing further.

Financial Highlights

total Assets: $X
total Debt: $0

Key Numbers

June 30, 2025 — Quarterly Period End Date (The period covered by this 10-Q filing.)
January 11, 2024 — Fund Commencement Date (The date Fidelity Wise Origin Bitcoin Fund began operations.)
Level 1 — Fair Value Input Classification (Indicates Bitcoin is valued using observable quoted prices in active markets for identical assets.)
001-41904 — Commission File Number (Unique identifier for the fund's SEC filings.)
86-6606379 — IRS Employer Identification No. (Tax identification number for the fund.)

Key Players & Entities

Fidelity Wise Origin Bitcoin Fund (company) — Registrant of the 10-Q filing
Bitcoin (other) — Primary investment asset of the fund
SEC (regulator) — Regulates the filing of Form 10-Q
001-41904 (other) — Commission File Number for the fund
June 30, 2025 (date) — End of the quarterly period reported
January 11, 2024 (date) — Date the fund commenced operations
December 31, 2024 (date) — Prior reporting period for fair value inputs
Level 1 (other) — Fair value input classification for Bitcoin
Delaware (other) — State of incorporation for the fund
Boston (other) — City of the fund's business address

FAQ

What is the primary asset held by the Fidelity Wise Origin Bitcoin Fund?

The primary asset held by the Fidelity Wise Origin Bitcoin Fund (FBTC) is Bitcoin, as explicitly stated in the 10-Q filing for the quarter ended June 30, 2025.

How does Fidelity Wise Origin Bitcoin Fund value its Bitcoin holdings?

The Fidelity Wise Origin Bitcoin Fund values its Bitcoin holdings using Level 1 fair value inputs, which means the valuation is based on readily observable quoted prices in active markets for identical assets, as reported for both December 31, 2024, and June 30, 2025.

When did the Fidelity Wise Origin Bitcoin Fund commence operations?

The Fidelity Wise Origin Bitcoin Fund commenced operations on January 11, 2024, as indicated in the 10-Q filing.

Are there any Level 2 or Level 3 fair value inputs for Bitcoin in FBTC's holdings?

No, the 10-Q filing for FBTC explicitly states that there were no Level 2 or Level 3 fair value inputs for its Bitcoin holdings for the periods ending December 31, 2024, and June 30, 2025, with all Bitcoin classified under Level 1.

What is the significance of Level 1 fair value inputs for FBTC investors?

For FBTC investors, Level 1 fair value inputs signify that the fund's Bitcoin holdings are valued based on highly reliable and transparent market prices, reducing valuation uncertainty and enhancing investor confidence in the reported asset values.

What is the fiscal year end for Fidelity Wise Origin Bitcoin Fund?

The fiscal year end for Fidelity Wise Origin Bitcoin Fund is December 31, as stated in the company data section of the 10-Q filing.

Where is the Fidelity Wise Origin Bitcoin Fund incorporated?

The Fidelity Wise Origin Bitcoin Fund is incorporated in Delaware, according to the 10-Q filing.

What is the business address of Fidelity Wise Origin Bitcoin Fund?

The business address for Fidelity Wise Origin Bitcoin Fund is 245 Summer Street, Boston, MA 02210, as listed in the 10-Q filing.

What is the impact of Bitcoin's volatility on Fidelity Wise Origin Bitcoin Fund?

The Fidelity Wise Origin Bitcoin Fund's financial health and performance are directly tied to the market performance and inherent volatility of Bitcoin, meaning significant price fluctuations in Bitcoin will directly impact the fund's net asset value.

What is the accession number for this Fidelity Wise Origin Bitcoin Fund 10-Q filing?

The accession number for this Fidelity Wise Origin Bitcoin Fund 10-Q filing is 0000950170-25-105585, as provided in the filing header.

Risk Factors

Bitcoin Price Volatility [high — market]: The fund's financial performance is directly tied to the market price of Bitcoin. Bitcoin is a highly volatile asset, and its price can fluctuate significantly due to various factors including regulatory changes, market sentiment, and technological developments. This volatility can lead to substantial unrealized and realized losses for the fund.
Evolving Regulatory Landscape [high — regulatory]: The regulatory environment for digital assets, including Bitcoin, is still evolving globally. Changes in regulations, or the introduction of new ones, could impact the fund's ability to operate, the liquidity of Bitcoin, or the overall demand for Bitcoin as an investment. This uncertainty poses a significant risk.
Custody and Security Risks [medium — operational]: The fund's Bitcoin holdings are maintained by custodians. While reputable custodians are used, there are inherent risks associated with the custody of digital assets, including the potential for hacking, theft, or operational failures. The loss of Bitcoin due to such events would directly impact the fund's net asset value.
Valuation of Bitcoin [medium — financial]: The fund values its Bitcoin holdings using Level 1 fair value inputs, which are based on quoted prices in active markets. While this indicates high liquidity, the accuracy and reliability of these prices can be affected by market disruptions or periods of low trading volume, potentially impacting the reported net asset value.
Liquidity Risk of Bitcoin [medium — market]: Although Bitcoin is generally considered a liquid asset, there may be periods where trading volumes decrease or market disruptions occur. This could make it difficult for the fund to buy or sell Bitcoin at desired prices, potentially impacting its ability to meet redemption requests or rebalance its holdings efficiently.

Industry Context

The digital asset investment fund industry is characterized by rapid innovation and evolving regulatory frameworks. Funds like FBTC are positioned to capture investor interest in cryptocurrencies as an alternative asset class. However, the industry faces significant competition from other crypto-focused funds and direct investment vehicles, alongside ongoing scrutiny from regulators worldwide.

Regulatory Implications

The fund operates within a dynamic regulatory landscape for digital assets. Compliance with evolving SEC regulations and potential future legislation regarding cryptocurrency investments is critical. Any adverse regulatory changes could impact the fund's operations, the valuation of its assets, or investor demand.

What Investors Should Do

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Key Dates

2025-06-30: Quarterly Period End Date — Marks the end of the reporting period for the 10-Q filing, reflecting the fund's financial position and performance up to this date.
2024-01-11: Fund Commencement Date — Indicates when the Fidelity Wise Origin Bitcoin Fund officially began its operations.
2024-12-31: Previous Fiscal Year End — Provides a comparative benchmark for the current period's financial performance and asset valuation.
2024-06-30: Prior Year Quarter End — Used for year-over-year comparison of key financial metrics and asset values.
2025-01-01: Start of Current Fiscal Year — Beginning of the period covered by the current 10-Q for year-to-date performance.

Glossary

Level 1 Fair Value Inputs: Inputs based on unadjusted quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. (Indicates that the fund's Bitcoin holdings are valued using readily available market prices, signifying high liquidity and transparency.)
10-Q: A quarterly report required by the U.S. Securities and Exchange Commission (SEC) that provides a comprehensive update on a company's financial performance and condition. (This document provides the detailed financial information and disclosures for the Fidelity Wise Origin Bitcoin Fund for the specified quarter.)
Net Assets: The total assets of a fund minus its total liabilities. For an investment fund, this represents the value attributable to its shareholders. (Represents the overall value of the fund, directly influenced by the price of Bitcoin.)
Bitcoin: A decentralized digital currency, also known as a cryptocurrency, that operates on a peer-to-peer network. (The primary and sole investment asset of the Fidelity Wise Origin Bitcoin Fund.)

Year-Over-Year Comparison

As this is the first 10-Q filing for the period ending June 30, 2025, a direct year-over-year comparison of revenue and margins is not applicable. However, the fund commenced operations on January 11, 2024, meaning the prior year's comparable period would reflect the initial stages of its existence. Key metrics such as total assets and the valuation of Bitcoin holdings would be the primary focus for comparison against the previous year's filings to assess growth and market impact.

From the Filing

0000950170-25-105585.txt : 20250808 0000950170-25-105585.hdr.sgml : 20250808 20250808114502 ACCESSION NUMBER: 0000950170-25-105585 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 39 CONFORMED PERIOD OF REPORT: 20250630 FILED AS OF DATE: 20250808 DATE AS OF CHANGE: 20250808 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Fidelity Wise Origin Bitcoin Fund CENTRAL INDEX KEY: 0001852317 STANDARD INDUSTRIAL CLASSIFICATION: [6221] ORGANIZATION NAME: 09 Crypto Assets EIN: 866606379 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-41904 FILM NUMBER: 251196974 BUSINESS ADDRESS: STREET 1: 245 SUMMER STREET CITY: BOSTON STATE: MA ZIP: 02210 BUSINESS PHONE: (617)-392-2211 MAIL ADDRESS: STREET 1: 245 SUMMER STREET CITY: BOSTON STATE: MA ZIP: 02210 FORMER COMPANY: FORMER CONFORMED NAME: Wise Origin Bitcoin Trust DATE OF NAME CHANGE: 20210319 10-Q 1 ck0001852317-20250630.htm 10-Q 10-Q Q2 --12-31 false 0001852317 2025 http://www.fidelity.com/20250630#BitcoinMember http://www.fidelity.com/20250630#BitcoinMember Unlimited Unlimited 0001852317 2024-03-31 0001852317 us-gaap:FairValueInputsLevel1Member 2024-12-31 0001852317 2024-04-01 2024-06-30 0001852317 us-gaap:FairValueInputsLevel3Member ck0001852317:InvestmentInBitcoinMember 2024-12-31 0001852317 2024-01-11 2024-06-30 0001852317 us-gaap:FairValueInputsLevel2Member ck0001852317:InvestmentInBitcoinMember 2025-06-30 0001852317 Investment in bitcoin, Global Other Assets Less Liabilities 2025-06-30 0001852317 2024-01-10 0001852317 us-gaap:FairValueInputsLevel2Member 2024-12-31 0001852317 2025-08-05 0001852317 2023-11-30 2023-11-30 0001852317 ck0001852317:GlobalMember ck0001852317:BitcoinMember 2025-06-30 0001852317 us-gaap:FairValueInputsLevel1Member 2025-06-30 0001852317 ck0001852317:InvestmentInBitcoinMember 2025-06-30 0001852317 2024-06-30 0001852317 2025-04-01 2025-06-30 0001852317 us-gaap:FairValueInputsLevel3Member ck0001852317:InvestmentInBitcoinMember 2025-06-30 0001852317 us-gaap:FairValueInputsLevel1Member ck0001852317:InvestmentInBitcoinMember 2024-12-31 0001852317 us-gaap:FairValueInputsLevel3Member 2025-06-30 0001852317 Investment in bitcoin, Global Bitcoin 2025-06-30 0001852317 us-gaap:FairValueInputsLevel1Member ck0001852317:InvestmentInBitcoinMember 2025-06-30 0001852317 2025-01-01 2025-06-30 0001852317 ck0001852317:GlobalMember ck0001852317:BitcoinMember 2024-12-31 0001852317 2025-03-31 0001852317 us-gaap:FairValueInputsLevel3Member 2024-12-31 0001852317 2023-12-14 2023-12-14 0001852317 us-gaap:FairValueInputsLevel2Member ck0001852317:InvestmentInBitcoinMember 2024-12-31 0001852317 2024-12-31 0001852317 2023-12-31 0001852317 ck0001852317:InvestmentInBitcoinMember 2024-12-31 0001852317 Investment in bitcoin, Global Bitcoin 2024-12-31 0001852317 2024-01-09 2024-01-09 0001852317 2024-01-01 2024-12-31 0001852317 2024-01-01 2024-06-30 0001852317 2024-01-09 0001852317 ck0001852317:TotalNetAssetsMember 2024-12-31 0001852317 us-gaap:FairValueInputsLevel2Member 2025-06-30 0001852317 2025-06-30 0001852317 ck0001852317:TotalNetAssetsMember 2025-06-30 0001852317 Investment in bitcoin, Global Other Assets Less Liabilities 2024-12-31 iso4217:USD xbrli:shares xbrli:pure xbrli:shares iso4217:USD     UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549   FORM 10-Q   (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _________________ to _________________ Commission File Number: 001-41904   Fidelity ® Wise Origin ® Bitcoin Fund (Exact Name of Registrant as Specified in its Charter)     Delaware 86-6606379 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) 245 Summer Street V13E Boston , MA