Fidelity Bitcoin Fund's Net Assets Soar to $23.27B on Bitcoin Appreciation

TL;DR

**FBTC is riding the Bitcoin bull, but remember, what goes up can come down just as fast.**

AI Summary

Fidelity Wise Origin Bitcoin Fund (FBTC) reported a significant increase in net assets, reaching $23.27 billion as of September 30, 2025, up from $18.81 billion at December 31, 2024. This growth was primarily driven by a substantial net change in unrealized appreciation on investment in bitcoin, totaling $4.18 billion for the nine months ended September 30, 2025, compared to $1.77 billion in the prior year. The Trust's Net Asset Value per share rose to $99.59 as of September 30, 2025, from $81.56 at December 31, 2024. Despite a net investment loss of $38.48 million for the nine months ended September 30, 2025, due to sponsor fees, the overall increase in net assets resulting from operations was $3.89 billion. Capital share transactions also contributed, with a net increase of $569.09 million for the nine months ended September 30, 2025, though this was a decrease from $10.01 billion in the same period of 2024. The Trust held 203,794 bitcoin with a fair value of $23.28 billion as of September 30, 2025.

Why It Matters

This report highlights the significant impact of bitcoin's price movements on the Fidelity Wise Origin Bitcoin Fund's performance, demonstrating the volatility inherent in digital asset investments. For investors, the substantial increase in Net Asset Value per share from $81.56 to $99.59 indicates strong capital appreciation, but also underscores the market risk associated with a single-asset trust. Employees and customers of Fidelity benefit from the fund's growth, reinforcing Fidelity's position in the burgeoning crypto ETF market. In the broader market, FBTC's performance reflects the growing institutional acceptance and demand for bitcoin exposure, intensifying competition among spot Bitcoin ETF providers.

Risk Assessment

Risk Level: high — The Trust's entire investment objective is to track the performance of bitcoin, making it highly susceptible to the extreme volatility of the cryptocurrency market. The 'Net change in unrealized appreciation (depreciation) on investment in bitcoin' was a massive $4.18 billion for the nine months ended September 30, 2025, demonstrating significant price swings. Furthermore, the 'Net realized gain (loss) on investment in bitcoin sold for redemptions' was a loss of $246.88 million, indicating that redemptions can occur at unfavorable prices.

Analyst Insight

Investors should consider FBTC as a highly speculative component of a diversified portfolio, suitable only for those with a high-risk tolerance. Given the fund's direct exposure to bitcoin's price fluctuations, investors should closely monitor cryptocurrency market trends and regulatory developments. A 'buy and hold' strategy for FBTC carries substantial risk, and active risk management may be prudent.

Financial Highlights

debt To Equity

0.00

revenue

$0

operating Margin

N/A

total Assets

$23.33B

total Debt

$0.06B

net Income

$3.89B

eps

$17.03

gross Margin

N/A

cash Position

$0

revenue Growth

N/A

Key Numbers

• $23.27B — Total Net Assets (Increased from $18.81B at December 31, 2024, reflecting significant growth.)
• $99.59 — Net Asset Value per share (Increased from $81.56 at December 31, 2024, indicating strong share performance.)
• $4.18B — Net change in unrealized appreciation on investment in bitcoin (Major driver of net asset increase for the nine months ended September 30, 2025.)
• 203,794 — Quantity of Bitcoin held (As of September 30, 2025, representing the Trust's primary asset.)
• $38.48M — Net Expenses (For the nine months ended September 30, 2025, primarily due to sponsor fees.)
• $3.89B — Net Increase in Net Assets Resulting from Operations (For the nine months ended September 30, 2025, demonstrating operational profitability despite expenses.)
• 233,678,476 — Shares outstanding (As of September 30, 2025, reflecting the total number of units of beneficial interest.)
• $569.09M — Net Increase in Net Assets Resulting from Capital Share Transactions (For the nine months ended September 30, 2025, contributing to overall asset growth.)

Key Players & Entities

• Fidelity Wise Origin Bitcoin Fund (company) — Registrant and Trust
• FD Funds Management LLC (company) — Sponsor of the Trust
• Cboe BZX Exchange, Inc (company) — Exchange where FBTC shares trade
• FMR LLC (company) — Parent company of the Sponsor
• CSC Delaware Trust Company (company) — Trustee of the Trust
• FMR Capital, Inc. (company) — Seed Capital Investor, an affiliate of the Sponsor
• Securities and Exchange Commission (regulator) — Regulatory body for filings
• Delaware Statutory Trust Act (regulator) — Governing law for Trust formation

FAQ

Risk Factors

• Volatility of Bitcoin Price [high — market]: The Trust's net assets are primarily composed of bitcoin, the price of which is highly volatile. For the nine months ended September 30, 2025, the net change in unrealized appreciation on investment in bitcoin was $4.18 billion, a significant increase from $1.77 billion in the prior year. This highlights the substantial impact of bitcoin price fluctuations on the Trust's value.
• Reliance on Sponsor and Custodian [medium — operational]: The Trust relies on Fidelity Digital Asset Services, LLC as its custodian and Fidelity Investment Trust Company, N.A. as its trustee. Any operational failures or security breaches at these entities could adversely affect the Trust's ability to safeguard its bitcoin holdings.
• Evolving Regulatory Landscape [high — regulatory]: The regulatory framework for digital assets, including bitcoin, is still developing and subject to change. New regulations or changes in existing ones could impact the Trust's operations, the value of its bitcoin holdings, or its ability to operate as intended.
• Sponsor Fees and Expenses [medium — financial]: The Trust incurs sponsor fees, resulting in a net investment loss. For the nine months ended September 30, 2025, net expenses were $38.48 million, compared to $4.50 million in the prior year, primarily due to sponsor fees. While these fees are necessary for the Trust's operation, they reduce overall returns.

Industry Context

The digital asset investment fund industry is experiencing rapid growth, driven by increasing institutional adoption and the development of regulated investment vehicles. Competitors offer similar bitcoin-focused ETFs and trusts, creating a competitive landscape where performance, fees, and security are key differentiators. Regulatory clarity remains a significant factor influencing market development and investor confidence.

Regulatory Implications

The evolving regulatory landscape for digital assets presents ongoing risks. Changes in regulations concerning cryptocurrency custody, trading, or taxation could impact the Trust's operations and the value of its bitcoin holdings. Compliance with existing and future regulations is critical for the Trust's continued operation.

What Investors Should Do

1. Monitor Bitcoin Price Volatility: Given that the Trust's performance is directly tied to bitcoin's price, investors should closely track market movements and consider their risk tolerance.
2. Evaluate Expense Ratios: The sponsor fees contribute to a net investment loss. Investors should compare FBTC's expense structure to other bitcoin investment products.
3. Assess Operational Risks: Understand the reliance on third-party custodians and trustees, and consider the potential impact of any security breaches or operational failures.
4. Stay Informed on Regulatory Developments: Keep abreast of regulatory changes affecting digital assets, as these could significantly influence the Trust's future prospects.

Key Dates

• 2025-09-30: Reporting Period End — As of this date, the Trust reported total net assets of $23.27 billion and held 203,794 bitcoin. Net Asset Value per share was $99.59.
• 2025-09-30: Nine Months Operations — The Trust experienced a net increase in net assets resulting from operations of $3.89 billion, driven by a $4.18 billion unrealized appreciation in bitcoin, despite $38.48 million in net expenses.
• 2024-12-31: Prior Year End — The Trust reported total net assets of $18.81 billion and a Net Asset Value per share of $81.56, providing a baseline for the significant growth observed in 2025.
• 2024-09-30: Prior Year Nine Months Operations — For the same period in the prior year, the net increase in net assets from operations was $1.47 billion, with unrealized appreciation of $1.77 billion and net expenses of $4.50 million.

Glossary

Net Asset Value (NAV) per share

The value of one share of a mutual fund or ETF, calculated by dividing the total value of the fund's assets minus its liabilities by the number of outstanding shares. (Indicates the per-share market value of the Trust's holdings, which increased from $81.56 to $99.59.)

Unrealized Appreciation

The increase in the market value of an asset that has not yet been sold. It represents a paper gain. (A primary driver of the Trust's asset growth, contributing $4.18 billion for the nine months ended September 30, 2025.)

Sponsor Fee

Fees paid to the entity that sponsors or manages the investment fund. (A significant expense for the Trust, contributing to the net investment loss of $38.48 million for the nine months ended September 30, 2025.)

Capital Share Transactions

Activities related to the issuance or redemption of the Trust's shares, which impact the total number of outstanding shares and net assets. (Contributed a net increase of $569.09 million to net assets for the nine months ended September 30, 2025, though this was a decrease from the prior year.)

Custodian

A financial institution that holds an investor's financial assets for safekeeping. (Fidelity Digital Asset Services, LLC acts as the custodian for the Trust's bitcoin holdings.)

Year-Over-Year Comparison

The Fidelity Wise Origin Bitcoin Fund has demonstrated substantial growth compared to the prior year. Total net assets surged to $23.27 billion as of September 30, 2025, from $18.81 billion at December 31, 2024. This growth was primarily fueled by a significant increase in unrealized appreciation on bitcoin holdings, which rose to $4.18 billion for the nine months ended September 30, 2025, from $1.77 billion in the comparable prior year period. While net expenses also increased to $38.48 million from $4.50 million, the overall net increase in net assets from operations was robust at $3.89 billion, up from $1.47 billion in the prior year. Capital share transactions, however, showed a decrease in contribution, adding $569.09 million compared to $10.01 billion in the prior year.

Key Financial Figures

• $ — (unaudited) (Amounts in 000's of US$, except for share and per share data)
• $500 — abilities may reflect amounts less than $500. The accompanying notes are an integr

Filing Documents

• ck0001852317-20250930.htm (10-Q) — 883KB
• ck0001852317-ex31_1.htm (EX-31.1) — 19KB
• ck0001852317-ex31_2.htm (EX-31.2) — 19KB
• ck0001852317-ex32_1.htm (EX-32.1) — 12KB
• ck0001852317-ex32_2.htm (EX-32.2) — 12KB
• img164712999_0.jpg (GRAPHIC) — 452KB
• img164712999_1.jpg (GRAPHIC) — 343KB
• 0001193125-25-271721.txt ( ) — 5049KB
• ck0001852317-20250930.xsd (EX-101.SCH) — 468KB
• ck0001852317-20250930_htm.xml (XML) — 377KB

Financial Statements

Financial Statements 2 Statements of Assets and Liabilities as of September 30, 2025 (unaudited) and December 31, 2024 (unaudited) 2 Statements of Operations for the three and nine months ended September 30, 2025 and 2024 (unaudited) 3 Statements of Changes in Net Assets for the three and nine months ended September 30, 2025 and 2024 (unaudited) 4 Statements of Cash Flows for the nine months ended September 30, 2025 and 2024 (unaudited) 5 Schedules of Investment as of September 30, 2025 (unaudited) and December 31, 2024 (unaudited) 6

Notes to Financial Statements (unaudited)

Notes to Financial Statements (unaudited) 7 Item 2.

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

Management's Discussion and Analysis of Financial Condition and Results of Operations 13 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 18 Item 4.

Controls and Procedures

Controls and Procedures 18 PART II. OTHER INFORMATION 19 Item 1.

Legal Proceedings

Legal Proceedings 19 Item 1A.

Risk Factors

Risk Factors 19 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 19 Item 3. Defaults Upon Senior Securities 19 Item 4. Mine Safety Disclosures 19 Item 5. Other Information 19 Item 6. Exhibits 20

Signatures

Signatures 21 i CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS This Quarterly Report on Form 10-Q (this "Quarterly Report") contains "forward-looking statements" that generally relate to future events or future performance. In some cases, you can identify forward-looking statements by terminology such as "may," "will," "should," "expect," "plan," "anticipate," "believe," "estimate," "predict," "potential" or the negative of these terms or other comparable terminology. All statements (other than statements of historical fact) included in this Quarterly Report that address activities, events or developments that will or may occur in the future, including such matters as movements in the digital asset markets and indexes that track such movements, Fidelity Wise Origin Bitcoin Fund's ("the Trust's") operations, FD Funds Management LLC's ("the Sponsor's") plans and references to the Trust's future success and other similar matters, are forward-looking statements. These statements are only predictions. Actual events or results may differ materially. These statements are based upon certain assumptions and analyses the Sponsor has made based on its perception of historical trends, current conditions and expected future developments, as well as other factors appropriate in the circumstances. These statements are not guarantees of future performance and are subject to risks, uncertainties, and other factors, some of which are beyond our control and are difficult to predict, that could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements including, without limitation, the risks, uncertainties and other factors we identify in this Quarterly Report and in our filings with the Securities and Exchange Commission (the "SEC"). Whether or not actual results and developments will conform to the Sponsor's expectations and predictions, however, is subject to a number of risks and uncertainties, including the

—FINANCIAL INFORMATION

PART I—FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements . Fidelity Wise Origin Bitcoin Fund Statements of Assets and Liabilities (unaudited) (Amounts in 000's of US$, except for share and per share data) September 30, 2025 December 31, 2024 Assets Investment in bitcoin , at fair value (cost $ 11,751,741 and $ 11,468,257 as of September 30, 2025 and December 31, 2024, respectively) $ 23,278,011 $ 18,818,357 Receivables from issuance of capital shares 54,724 36,834 Total Assets $ 23,332,735 $ 18,855,191 Liabilities Payable for purchases of bitcoin 54,724 36,834 Sponsor fee payable 4,832 3,967 Total Liabilities $ 59,556 $ 40,801 Commitments and Contingencies (Note 6) Net Assets Shares, no par value ( unlimited shares authorized) 233,678,476 and 230,678,476 shares issued and outstanding as of September 30, 2025 and December 31, 2024, respectively — — Paid-in-capital 12,440,555 11,871,463 Total distributable earnings (loss) 10,832,624 6,942,927 Total Net Assets $ 23,273,179 $ 18,814,390 Net Asset Value per share ( 233,678,476 and 230,678,476 shares issued and outstanding as of September 30, 2025 and December 31, 2024, respectively) $ 99.59 $ 81.56 Values shown as $— in the Statements of Assets and Liabilities may reflect amounts less than $500. The accompanying notes are an integral part of these financial statements 2 Fidelity Wise Origin Bitcoin Fund Statements of Operations (unaudited) (Amounts in 000's of US$) Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Investment Income: Investment income $ — $ — $ — $ — Expenses: Sponsor fee 14,379 6,806 38,483 16,106 Total Expenses Before Waiver 14,379 6,806 38,483 16,106 Sponsor fee waived — ( 2,303 ) — ( 11,603 ) Net Expenses 14,379 4,503 38,483 4,503 Net Investment Income (Loss) $ ( 14,379 ) $ ( 4,503 ) $