Bitwise Ethereum ETF Net Assets Surge to $499.7M on Ether Appreciation

TL;DR

**ETHW is riding the ether wave, with net assets up 23% this quarter – bullish on crypto's institutionalization.**

AI Summary

Bitwise Ethereum ETF (ETHW) reported a significant increase in net assets, reaching $499.703 million as of September 30, 2025, up from $404.529 million on December 31, 2024. This growth was primarily driven by a net increase in net assets from operations of $99.567 million for the nine months ended September 30, 2025, and a net increase from capital share transactions of $43.169 million for the three months ended September 30, 2025. The Trust experienced a substantial net change in unrealized appreciation on investment in ether of $130.098 million for the nine months ended September 30, 2025. Despite a net investment loss of $449 thousand for the nine-month period due to Sponsor Fees, the fair value of its ether investment rose to $499.791 million from a cost of $359.466 million. The number of shares outstanding decreased slightly from 16,880,000 to 16,760,000, while the Principal Market NAV per share increased from $23.96 to $29.82. Key risks include the extreme volatility of ether, regulatory changes, and reliance on service providers.

Why It Matters

This surge in net assets and NAV per share for ETHW signals strong investor interest and positive market sentiment for Ethereum, potentially attracting more capital into the crypto ETF space. For investors, the significant unrealized appreciation in ether holdings suggests a robust underlying asset performance, but also highlights the inherent volatility of crypto markets. Employees and customers of Bitwise Asset Management benefit from the growth and validation of their crypto product offerings, reinforcing their position in the competitive digital asset management sector. The broader market sees continued institutionalization of crypto investments, potentially influencing regulatory discussions and the development of similar products.

Risk Assessment

Risk Level: high — The filing explicitly states 'the extreme volatility of the trading price that ether has experienced in recent periods and may continue to experience, which could have a material adverse effect on the value of the Shares of the Trust.' Additionally, the 'unregulated nature and lack of transparency surrounding the operations of blockchain technologies and crypto assets' poses a significant risk, as does the potential for 'regulatory changes or interpretations' from bodies like the SEC, which could obligate the Trust to comply with new, costly regulations.

Analyst Insight

Investors should consider ETHW's strong performance driven by ether's appreciation, but remain highly cautious due to the inherent volatility and regulatory uncertainties of crypto assets. Diversify holdings and only allocate capital that can withstand significant price swings. Monitor SEC actions closely for any new regulations impacting crypto ETFs.

Financial Highlights

debt To Equity

0.0

revenue

$0

operating Margin

N/A

total Assets

$499.703M

total Debt

$0

net Income

$99.118M

eps

N/A

gross Margin

N/A

cash Position

$0

revenue Growth

N/A

Key Numbers

• $499.703M — Net Assets (as of September 30, 2025, up from $404.529M on December 31, 2024)
• $29.82 — Principal Market NAV per share (as of September 30, 2025, up from $23.96 on December 31, 2024)
• $187.619M — Net increase in net assets from operations (for the three months ended September 30, 2025)
• $99.567M — Net increase in net assets from operations (for the nine months ended September 30, 2025)
• $130.098M — Net change in unrealized appreciation on investment in ether (for the nine months ended September 30, 2025)
• 16,760,000 — Shares issued and outstanding (as of September 30, 2025, down from 16,880,000 on December 31, 2024)
• $449K — Net investment loss (for the nine months ended September 30, 2025, primarily due to Sponsor Fees)
• $499.791M — Fair value of investment in ether (as of September 30, 2025, with a cost of $359.466M)

Key Players & Entities

• Bitwise Ethereum ETF (company) — registrant and investment trust
• Bitwise Investment Advisers, LLC (company) — Sponsor of the Trust
• SEC (regulator) — U.S. Securities and Exchange Commission
• NYSE Arca, Inc. (company) — exchange where ETHW shares are listed
• Delaware Trust Company (company) — Trustee of the Trust
• Bitwise Asset Management, Inc. (company) — parent of the Sponsor
• Bitwise Investment Manager, LLC (company) — affiliate of the Sponsor
• Commodity Futures Trading Commission (regulator) — potential regulatory body for crypto assets

FAQ

Risk Factors

• Ether Price Volatility [high — market]: The Trust's sole asset is ether, which is subject to extreme price volatility. The fair value of the Trust's investment in ether was $499.791 million as of September 30, 2025, with a cost of $359.466 million, indicating significant unrealized appreciation of $130.098 million for the nine months ended September 30, 2025. This volatility directly impacts the Trust's net asset value.
• Regulatory Uncertainty [high — regulatory]: The regulatory landscape for digital assets, including ether, is evolving. Changes in regulations could impact the Trust's ability to hold ether, operate, or affect the value of ether itself. The Trust's investment objective is to provide exposure to the value of ether, and adverse regulatory changes could hinder this.
• Reliance on Service Providers [medium — operational]: The Trust relies on various service providers, including the Sponsor (Bitwise Investments Advisers, LLC), the Trustee (Delaware Trust Company), and custodians for ether. The failure or inadequacy of these service providers could disrupt the Trust's operations and negatively impact its ability to achieve its investment objective.
• Sponsor Fees and Operating Expenses [medium — financial]: The Trust incurred a net investment loss of $449 thousand for the nine months ended September 30, 2025, primarily due to Sponsor Fees. While the Sponsor covers normal operating expenses, these fees directly reduce the Trust's net assets and impact investor returns.

Industry Context

The digital asset ETF market is rapidly evolving, with increasing institutional interest in gaining exposure to cryptocurrencies like ether. Competitors may offer similar products, necessitating strong performance and clear value propositions. The industry faces ongoing scrutiny regarding regulatory frameworks and the security of digital asset custody.

Regulatory Implications

The evolving regulatory landscape for digital assets presents a significant risk. Changes in how ether is classified or regulated could impact the Trust's operations, the value of its holdings, and its ability to remain listed and compliant.

What Investors Should Do

1. Monitor ether price volatility closely, as it is the primary driver of the Trust's performance and risk.
2. Stay informed about regulatory developments concerning digital assets, as these could materially affect the Trust and its underlying asset.
3. Evaluate the impact of Sponsor Fees on net returns, considering the $449K net investment loss reported for the nine-month period.
4. Assess the Trust's reliance on key service providers and understand contingency plans in case of operational disruptions.

Key Dates

• 2024-02-16: Trust Organization — Established the legal framework for the Bitwise Ethereum ETF under Delaware law, setting the stage for its operations.
• 2025-09-30: Reporting Period End — Key financial data, including net assets of $499.703 million and NAV per share of $29.82, were reported for this date.
• 2025-09-30: Nine Months Ended — Generated a net increase in net assets from operations of $99.567 million and a net change in unrealized appreciation of $130.098 million.
• 2025-09-30: Three Months Ended — Experienced a net increase in net assets from operations of $187.619 million and a net increase from capital share transactions of $43.169 million.

Glossary

Ether

A decentralized, open-source blockchain system with smart contract functionality. Ether (ETH) is the native cryptocurrency of the Ethereum network. (The sole asset held by the Trust, its price movements directly determine the Trust's value.)

Net Asset Value (NAV)

The per-share market value of a fund's assets minus its liabilities. For the Bitwise Ethereum ETF, it reflects the value of its ether holdings less expenses. (The Principal Market NAV per share increased from $23.96 to $29.82, indicating growth in the underlying ether value and/or efficient management.)

Sponsor Fee

The management fee paid to the Sponsor (Bitwise Investments Advisers, LLC) for overseeing the Trust's operations and expenses. (This fee is a primary driver of the Trust's operating expenses and contributed to a net investment loss of $449 thousand for the nine-month period.)

Unrealized Appreciation

The increase in the market value of an asset that has not yet been sold. For the Trust, this refers to the increase in the value of its ether holdings. (A significant net change in unrealized appreciation of $130.098 million for the nine months ended September 30, 2025, highlights the substantial growth in the value of the Trust's ether holdings.)

Authorized Participant

Financial firms that have agreements with the Trust to create or redeem large blocks of shares, facilitating liquidity and ensuring the ETF's market price stays close to its NAV. (These participants are crucial for the creation and redemption process, which involves cash-settled transactions for the ETHW ETF.)

Year-Over-Year Comparison

The Bitwise Ethereum ETF (ETHW) has shown substantial growth in net assets, increasing from $404.529 million at the end of the previous fiscal year (December 31, 2024) to $499.703 million as of September 30, 2025. This growth is largely attributed to a significant net increase in net assets from operations and a substantial rise in unrealized appreciation on its ether investment. The NAV per share has also seen a healthy increase from $23.96 to $29.82. While the number of outstanding shares has slightly decreased, the overall financial health and market valuation of the Trust have improved considerably.

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-20250930.htm (10-Q) — 1013KB
• ethw-ex31_1.htm (EX-31.1) — 18KB
• ethw-ex31_2.htm (EX-31.2) — 18KB
• ethw-ex32_1.htm (EX-32.1) — 9KB
• ethw-ex32_2.htm (EX-32.2) — 9KB
• img247329174_0.jpg (GRAPHIC) — 600KB
• img247329174_1.jpg (GRAPHIC) — 468KB
• img247329174_2.jpg (GRAPHIC) — 378KB
• 0001193125-25-274499.txt ( ) — 7282KB
• ethw-20250930.xsd (EX-101.SCH) — 434KB
• ethw-20250930_htm.xml (XML) — 591KB

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 14

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 20

Controls and Procedures

Item 4. Controls and Procedures 21

OTHER INFORMATION

Part II. OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 22

Risk Factors

Item 1A. Risk Factors 22

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 22

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 23

Exhibits

Item 6. Exhibits 24 Glossary 25

– 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, 2025 December 31, 2024 (unaudited) Assets Investment in ether, at fair value (cost $ 359,466 and $ 394,302 , as of September 30, 2025 and December 31, 2024, respectively) $ 499,791 $ 404,529 Cash — — Total assets 499,791 404,529 Liabilities Sponsor Fee payable 88 — Total liabilities 88 — Net Assets $ 499,703 $ 404,529 Shares issued and outstanding, no par value, unlimited amount authorized 16,760,000 16,880,000 Principal Market NAV per share $ 29.82 $ 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) September 30, 2025 (Unaudited) Quantity Percentage of of ether Cost Fair Value Net Assets Investment in ether ^ 120,095.5620 $ 359,466 $ 499,791 100.02 % Total Investment $ 359,466 499,791 100.02 Liabilities in excess of other assets ( 88 ) ( 0.02 ) Net Assets $ 499,703 100.00 % 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 September 30, 2025* Nine months ended September 30, 2025* For the period July 22, 2024 (commencement of operations) through September 30

Notes to Financial Statements

Notes to Financial Statements SEPTEMBER 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 Investments Advisers, LLC (the "Sponsor"), a wholly owned subsidiary of Bitwise Asset Management, Inc. ("BAM") serves as the Sponsor for the Trust. The Sponsor arranged for the creation of the Trust and is responsible for maintaining the 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 executes the marketing plan 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 D

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