BITW Bitwise 10 Crypto Index Fund (QX)

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2024

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 000-56270

Bitwise 10 Crypto Index Fund

(Exact Name of Registrant as Specified in Its Charter)

Delaware	82-3002349
(State or Other Jurisdiction of Incorporation or Organization)	(I.R.S. Employer Identification No.)

250 Montgomery Street,

Suite 200

San Francisco, CA 94104

(Address of Principal Executive Offices) (Zip Code)

(415) 707-3663

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act: None

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
None	N/A	N/A

Securities registered pursuant to Section 12(g) of the Act: Bitwise 10 Crypto Index Fund (BITW) Shares

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☒	Smaller reporting company	☐
		Emerging growth company	☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

Number of shares of the registrant’s common stock outstanding as of May 9, 2024: 20,241,947

 

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Table of Contents

STATEMENT REGARDING FORWARD-LOOKING STATEMENTS	i
INDUSTRY AND MARKET DATA	iii
PART I – FINANCIAL INFORMATION:	1
Item 1. Financial Statements (Unaudited)	1
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	15
Item 3. Quantitative and Qualitative Disclosures about Market Risk	29
Item 4. Controls and Procedures	29
PART II – OTHER INFORMATION:	30
Item 1. Legal Proceedings	30
Item 1A. Risk Factors	30
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	30
Item 3. Defaults Upon Senior Securities	32
Item 4. Mine Safety Disclosures	32
Item 5. Other Information	32
Item 6. Exhibits	32
SIGNATURES	33

 

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Statement Regarding Forward-Looking Statements

This Quarterly Report on Form 10-Q contains “forward-looking statements” with respect to the financial conditions, results of operations, plans, objectives, future performance and business of Bitwise 10 Crypto Index Fund (BITW) (the “Trust”). Statements preceded by, followed by or that include words such as “may,” “might,” “will,” “should,” “expect,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “potential” or “continue,” the negative of these terms and other similar expressions are intended to identify some of the forward-looking statements. 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 changes in market prices and conditions, the Trust’s operations, the plans of Bitwise Investment Advisers, LLC (the “Sponsor”) 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 from such statements. These statements are based upon certain assumptions and analyses the Sponsor made based on its perception of historical trends, current conditions and expected future developments, as well as other factors appropriate in the circumstances. 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, but not limited to, those described in Part II, Item 1A. Risk Factors. Forward-looking statements are made based on the Sponsor’s beliefs, estimates and opinions on the date the statements are made and neither the Trust nor the Sponsor is under a duty or undertakes an obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change, other than as required by applicable laws. Investors are therefore cautioned against relying on forward-looking statements. Factors which could have a material adverse effect on the Trust's business, financial condition or results of operations and future prospects or which could cause actual results to differ materially from the Trust's expectations include, but are not limited to:
 

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Unless otherwise stated or the context otherwise requires, the terms “we,” “our” and “us” in this Quarterly Report on Form 10-Q refer to the Sponsor acting on behalf of the Trust.

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Industry and Market Data

Although we are responsible for all disclosure contained in this Quarterly Report on Form 10-Q, in some cases we have relied on certain market and industry data obtained from third-party sources that we believe to be reliable. Market estimates are calculated by using independent industry publications in conjunction with our assumptions regarding the Crypto Asset industry and market. While we are not aware of any misstatements regarding any market, industry or similar data presented herein, such data involves risks and uncertainties and is subject to change based on various factors, including those discussed under the heading “Statement Regarding Forward-Looking Statements.”

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PART I – FINANCIAL INFORMATION:

Item 1. Financial Statements (Unaudited)

Bitwise 10 Crypto Index Fund

(formerly known as Bitwise 10 Private Index Fund, LLC)

 

Financial Statements

March 31, 2024 (unaudited) and December 31, 2023

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Bitwise 10 Crypto Index Fund

Table of Contents

Financial Statements (Unaudited)
Statements of Financial Condition	3
Schedules of Investments	4
Statements of Operations	5
Statements of Changes in Net Assets	6
Notes to Financial Statements	7

 

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Bitwise 10 Crypto Index Fund

Statements of Financial Condition

March 31, 2024 (unaudited) and December 31, 2023

 

Assets		March 31, 2024 (unaudited)				December 31, 2023
Investments in Crypto Assets, at fair value (cost $314,064,537 and $314,774,926)		$	1,125,334,251			$	699,798,952
Crypto Assets sold receivable							2,770,000
Cash			446				913
Other assets			319				263
Total Assets		$	1,125,335,016			$	702,570,128
Liabilities
Management fee payable		$	2,344,447			$	1,463,687
Subscriptions received in advance			301				301
Total Liabilities			2,344,748				1,463,988
Net Assets		$	1,122,990,268			$	701,106,140
Net Assets consists of:
Paid-in-capital			427,764,344				427,764,344
Accumulated net investment gain (loss)			(58,110,378	)			(52,232,153	)
Accumulated net realized gain (loss) on investments in Crypto Assets			(57,933,412	)			(59,450,077	)
Net unrealized appreciation (depreciation) on investments in Crypto Assets			811,269,714				385,024,026
Net Assets		$	1,122,990,268			$	701,106,140
Shares issued and outstanding, no par value (unlimited shares    authorized)			20,241,947				20,241,947
Net asset value per share		$	55.48			$	34.64

 

See accompanying notes to financial statements (unaudited).

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Bitwise 10 Crypto Index Fund

Schedules of Investments

March 31, 2024 (unaudited)

		Units				Fair Value				Percentage of Net Assets
Investments in Crypto Assets, at fair value *
Bitcoin			10,924.3545			$	773,891,866				68.91		%
Ethereum			67,087.8561				239,136,676				21.29
Solana			249,263.7733				46,432,856				4.13
Ripple			30,380,255.8253				19,054,496				1.70
Cardano			19,593,235.5362				12,745,400				1.14
Avalanche			209,904.0025				11,464,957				1.02
Polkadot			743,340.6302				7,053,559				0.63
Chainlink			327,057.1546				6,282,441				0.56
Polygon			5,383,725.2918				5,398,800				0.48
Litecoin			41,406.8896				3,873,200				0.35
Total investments in Crypto Assets, at fair value (cost $314,064,537)						$	1,125,334,251				100.21
Other liabilities in excess of assets							(2,343,983	)			(0.21	)
Net Assets						$	1,122,990,268				100.00		%

 

December 31, 2023

		Units				Fair Value				Percentage of Net Assets
Investments in Crypto Assets, at fair value *
Bitcoin			10,998.0429			$	462,076,062				65.91		%
Ethereum			67,221.7443				154,923,265				22.10
Solana			239,876.3681				25,143,841				3.59
Ripple			30,324,826.6436				18,825,652				2.69
Cardano			19,777,360.7670				11,943,548				1.70
Avalanche			195,564.0766				7,859,720				1.12
Polkadot			732,019.7088				6,033,306				0.86
Polygon			5,257,194.4118				5,114,199				0.73
Chainlink			309,529.3045				4,803,895				0.69
Litecoin			41,303.5713				3,075,464				0.44
Total investments in crypto assets, at fair value (cost $314,774,926)						$	699,798,952				99.81
Assets in excess of liabilities							1,307,188				0.19
Net Assets						$	701,106,140				100.00		%

 

* Crypto Assets do not have a singular country or geographic region, therefore country information is omitted.

See accompanying notes to financial statements (unaudited).

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Bitwise 10 Crypto Index Fund

Statements of Operations (Unaudited)

For the three months ended March 31, 2024 and 2023

 

		Three months ended March 31,
		2024 (unaudited)				2023 (unaudited)
Expenses
Management fee		$	5,878,198			$	2,842,302
Transaction and other fees			27				—
Total Expenses			5,878,225				2,842,302
Net Investment gain (loss)			(5,878,225	)			(2,842,302	)
Net realized and change in unrealized gain (loss) on investments
Net realized gain (loss) from Crypto Assets			1,516,665				(1,939,233	)
Net change in unrealized appreciation (depreciation) from Crypto Assets			426,245,688				201,060,657
Net realized and change in unrealized gain (loss) on investments			427,762,353				199,121,424
Net increase (decrease) in Net Assets resulting from operations		$	421,884,128			$	196,279,122

 

See accompanying notes to financial statements (unaudited).

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Bitwise 10 Crypto Index Fund

Statement of Changes in Net Assets (Unaudited)

For the three months ended March 31, 2024 and 2023

 

		Three months ended March 31,
		2024 (unaudited)				2023 (unaudited)
Increase (decrease) in net assets from operations:
Net investment gain (loss)		$	(5,878,225	)		$	(2,842,302	)
Net realized gain (loss) from Crypto Assets			1,516,665				(1,939,233	)
Net change in unrealized appreciation (depreciation) from Crypto Assets			426,245,688				201,060,657
Net increase (decrease) in net assets resulting from operations			421,884,128				196,279,122
Net Assets:
Beginning of Period			701,106,140				308,156,499
End of Period		$	1,122,990,268			$	504,435,621
Change in Shares outstanding:
Shares outstanding at beginning of period			20,241,947				20,241,947
Subscriptions			—				—
Net increase (decrease) in shares			—				—
Shares outstanding at end of period			20,241,947				20,241,947

 

See accompanying notes to financial statements (unaudited).

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Bitwise 10 Crypto Index Fund

Notes to Comparative Financial Statements (unaudited)

 

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The Sponsor paid all expenses related to the initial offering, organization and start-up of the Trust and will not seek reimbursement for such amounts. The Sponsor is responsible for all ordinary operating expenses of the Trust, including administrative, custody, legal, audit, insurance, and other operating expenses.

In the normal course of business, the Trust enters into contracts and agreements that contain a variety of representations and warranties and which provide general indemnifications. The Trust’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Trust that have not yet occurred. The Trust expects the risk of any future obligation under these indemnifications to be remote.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion and analysis of our financial condition and results of operations should be read together with, and is qualified in its entirety by reference to, our unaudited financial statements and related notes included elsewhere in this Quarterly Report, which have been prepared in accordance with U.S. GAAP. The following discussion may contain forward-looking statements based on assumptions we believe to be reasonable. Our actual results could differ materially from those discussed in these forward-looking statements. Factors that could cause or contribute to these differences include, but are not limited to, those set forth under Part II, Item 1A. Risk Factors in this Quarterly Report.

Trust Overview

The Trust is a Delaware Statutory Trust that issues units of fractional undivided beneficial interest in the form of shares, which represent ownership in the Trust ("Shares"). All Shareholders of “investor class” units received 10 Shares for each unit owned prior to the corporate action date, and all Shareholders of “institutional class” units received 10.12602229 Shares for each unit owned prior to the corporate action date.

The purpose of the Trust is to make it easier for an investor to invest in the Crypto Asset market as a whole, without having to pick specific tokens, manage a portfolio, and constantly monitor ongoing news and developments. Although the Shares are not the exact equivalent of a direct investment in Crypto Assets, they provide investors with an alternative that constitutes a relatively cost-effective, professionally managed way to participate in Crypto Asset markets. The Trust holds a Portfolio of Crypto Assets, referred to as the Portfolio Crypto Assets.

In furtherance of this objective, the activities of the Trust include (i) issuing Shares in exchange for subscriptions, (ii) selling or buying Portfolio Crypto Assets in connection with monthly rebalancing, (iii) selling Portfolio Crypto Assets as necessary to cover the Management Fee (as defined below) and/or any Organizational Expenses (as defined below), (iv) causing the Sponsor to sell Portfolio Crypto Assets upon any potential future termination of the Trust, and (v) engaging in all administrative and security procedures necessary to accomplish such activities in accordance with the provisions of the Trust Agreement, and the Custodian Agreement (as defined below).

The Trust’s principal investment objective is to invest in a Portfolio of Crypto Assets that tracks the Bitwise 10 Large Cap Crypto Index (the "Index") as closely as possible with certain exceptions determined by the Sponsor in its sole discretion. In addition, in the event the Portfolio Crypto Assets being held by the Trust present opportunities to generate returns in excess of the Index (for example, Airdrops, Emissions, forks, or similar network events) the Sponsor may also pursue these incidental opportunities on behalf of the Trust as part of the investment objective if in its sole discretion the Sponsor deems such activities to be possible and prudent. The Trust believes that it has met its principal investment objective. As of March 31, 2024, there was a correlation of 99.xx% between the Portfolio Crypto Assets and the assets included in the Index. The Trust is aware that the market price of the Trust’s shares may deviate from the net asset value (“NAV”) of the shares, and the market price may at times be significantly above or below the shares’ NAV. The NAV of the Trust is calculated by summing the assets and liabilities and the NAV Per Share is calculated by dividing the total NAV by the shares outstanding. However, the Trust believes that any such deviation does not affect the Trust’s principal investment objective, as the Trust does not maintain or promote any business objectives related to the market trading price of its shares. Furthermore, under Regulation M, the Trust as issuer of the Shares is not permitted to take any actions that would seek to reconcile the NAV of the Shares and the market price of the Shares, and the Trust would not undertake business objectives that it was legally restricted from achieving.

The Trust and the Sponsor have entered into a limited, non-exclusive, revocable license agreement with Bitwise Index Services, LLC (the “Index Provider”), an affiliate of the Trust that is controlled by the same parent entity as the Sponsor, at no cost to the Trust or the Sponsor allowing the Trust to use the Index as the benchmark index for the Trust (the “License Agreement”).

The Shares may also trade at a substantial premium over, or a substantial discount to, the NAV Per Share as a result of price volatility, trading volume and closings of the exchanges on which the Sponsor purchases Portfolio Crypto Assets on behalf of the Trust due to fraud, failure, security breaches or otherwise. As a result of the foregoing, the price of the Shares as quoted on OTCQX has varied significantly from the value of the Trust’s Portfolio Crypto Assets Per Share since the Shares were approved for quotation on December 9, 2020.

The following charts show the percentage of Premium/(Discount) of the Shares as quoted on OTCQX and the Trust’s NAV and a comparison of the NAV of the Trust vs the market price as quoted on OTCQX.

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From December 9, 2020 to March 31, 2024, the Shares of BITW traded at an average discount, based on closing prices at 4:00 pm ET, and estimated, unaudited, NAV Per Share of 14.40%. During that same period, the highest premium was 649.38% on December 16, 2020, and the lowest premium was 0.27% on August 4, 2021. During that same period, the highest discount was 67.80% on December 28, 2022, and the lowest discount was 0.09% on September 24, 2021. Given the lack of an ongoing redemption program and the holding period under Rule 144, there is no arbitrage mechanism to keep the Shares closely linked to the value of the Trust’s underlying holdings that may continue to have an adverse impact on investments in the Shares.

The following chart shows a comparison of the cumulative returns of the Index compared to the NAV of the Trust.

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Results of Operations

Financial Information for the Three Months ended March 31, 2024 and 2023

The following table sets forth statements of operations data for the three months ended March 31, 2024 and 2023.

Statement of Operations (Unaudited)

 

		Three months ended March 31,
		2024 (unaudited)				2023 (unaudited)
Expenses
Management fee		$	5,878,198			$	2,842,302
Transaction and other fees			27				—
Total Expenses			5,878,225				2,842,302
Net Investment gain (loss)			(5,878,225	)			(2,842,302	)
Net realized and change in unrealized gain (loss) on investments
Net realized gain (loss) from Crypto Assets			1,516,665				(1,939,233	)
Net change in unrealized appreciation (depreciation) from Crypto Assets			426,245,688				201,060,657
Net realized and change in unrealized gain (loss) on investments			427,762,353				199,121,424
Net increase (decrease) in Net Assets resulting from operations		$	421,884,128			$	196,279,122

 

Comparison of the three-month periods ended March 31, 2024 and 2023

The following provides a discussion of the material items that impacted the Trust’s financial condition during the applicable period:

Management fees

The Sponsor charges the Trust a Management Fee payable monthly, in arrears, in an amount equal to 2.5% per annum (1/12th of 2.5% per month) of the net asset value of the Trust’s assets at the end of each month. Management fees for the three months ended March 31, 2024 were $5,878,198 compared to management fees for the three months ended March 31, 2023 of $2,842,302. These changes

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were due to an increase in the Trust’s net asset value due to an increase in the fair value of the Portfolio Crypto Assets held by the Trust (see “Schedules of Investments” below).

Net realized gain (loss) from Crypto Assets

Net realized gain from Crypto Assets for the three months ended March 31, 2024 was $1,516,665 compared to net realized loss from Crypto Assets for the three months ended March 31, 2023 of $1,939,233. These changes were due to fluctuations in the value of the Portfolio Crypto Assets sold during the respective period.

For the three-month period ended March 31, 2024, the Trust recorded net realized gains from sales of Bitcoin and Ethereum of approximately $1,505,603 and $353,347, respectively, among the gains and losses realized in smaller amounts from the sale of other Portfolio Crypto Assets. These sales were made as a result of rebalancing activity and sales of Portfolio Crypto Assets to raise money to pay the management fee.

For the three-month period ended March 31, 2023, the Trust recorded net realized losses from sales of Bitcoin and Cardano of approximately $842,260 and $500,572, respectively, among the gains and losses realized in smaller amounts from the sale of other Portfolio Crypto Assets. These sales were made as a result of rebalancing activity and sales of Portfolio Crypto Assets to raise money to pay the management fee.

Net change in unrealized appreciation (depreciation) from Crypto Assets

Net change in unrealized appreciation from Crypto Assets for the three months ended March 31, 2024 was $426,245,688 compared to net change in unrealized appreciation from Crypto Assets for three months ended March 31, 2023 of $201,060,657. The primary factor for the change was related to an increase in the fair value of the Portfolio Crypto Assets held by the Trust (see “Schedules of Investments” below).

For the three month period ended March 31, 2024 the Trust recorded net unrealized appreciation from Crypto Assets of Bitcoin and Ethereum of approximately $314,221,201 and $84,374,898, respectively, among the unrealized appreciation and depreciation in smaller amounts of other Portfolio Crypto Assets.

For the three month period ended March 31, 2023 the Trust recorded net unrealized appreciation from Crypto Assets of Bitcoin and Ethereum of approximately $141,292,863 and $46,513,143, respectively, among the unrealized appreciation and depreciation in smaller amounts of other Portfolio Crypto Assets.

Net increase (decrease) in net assets resulting from operations

For the three month period ended March 31, 2024, the Trust recorded a net increase in net assets resulting from operations of $421,884,128, compared to a net increase in net assets resulting from operations of $196,279,122 for the period ended March 31, 2023. The primary factor that impacted 2024 net increase (decrease) in net assets resulting from operations compared to 2023 net increase (decrease) in net assets resulting from operations was an increase in net realized gain and change in unrealized appreciation on investments with a net gain of $427,762,353 for the three month period in 2024 compared to a net gain of $199,121,424 for the three month period in 2023. The primary factor for the change was an increase in the fair value of the Portfolio Crypto Assets held by the Trust (see “Schedules of Investments” below).

Management Fee

The Sponsor charges the Trust a Management Fee payable monthly, in arrears, in an amount equal to 2.5% per annum (1/12th of 2.5% per month) of the net asset value of the Trust’s assets at the end of each month.

The Sponsor is responsible for paying for all ordinary administrative and overhead expenses of managing the Trust, including payment of rent, custody charges or flat rate fees for holding the Trust’s assets charged by the Custodian and customary fees and expenses of the Trustee, Administrator and Auditor (including costs incurred for appraisal or valuation expenses associated with the preparation of the Trust’s financial statements, tax returns and other similar reports and excluding indemnification and extraordinary costs). The Sponsor also pays for all expenses associated with the operation of the Trust, including for example, fees associated with quotation of the Shares on the OTCQX, registration with the SEC, and fees associated with retaining and maintaining the Transfer Agent. “Trading commissions” or trading fees paid to trading venues (also known as exchanges) or intermediaries (such as trading technology or Crypto Asset brokerage firms) that assist in trade execution for accessing Crypto Asset liquidity are charged to the Trust and may either be included in the cost of the Crypto Assets acquired by or disposed of by the Trust or may appear as explicit costs in addition to the price of the Crypto Asset. Trading fees and commissions are charged to the Trust and may appear in the financial

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statements as “Transaction and other fees” in the Financial Statements’ Statement of Operations in the Expenses category or may be included in the cost of the Crypto Assets acquired by the Trust.

There is no ceiling to the Trust’s expenses that the Sponsor will pay. However, the Sponsor retains the right to cause the Trust to pay indemnification and extraordinary expenses, and these Trust expenses are not covered by the Management Fee. The Trust may incur certain extraordinary expenses including, but not limited to, any non-customary costs and expenses including extraordinary costs of the Administrator and Auditor, costs of any litigation or investigation involving Trust activities, and workout and restructuring and indemnification expenses.

Shareholder Subscriptions

 

As of November 18, 2021, the Sponsor to the Trust has closed the acceptance of all subscriptions to the Bitwise 10 Crypto Index Fund, pursuant to its rights under Sections 5 and 6 of the Trust Agreement. At this time, the Sponsor has no plans to reopen subscriptions to the Bitwise 10 Crypto Index Fund. There were no shareholder subscriptions during the quarter ended March 31, 2024.

Capital Resources and Liquidity

The Trust generally holds only a very small cash balance, and is otherwise fully invested in order to maintain its investment objective of tracking the Index. When selling Portfolio Crypto Assets to pay the Management Fee, the Sponsor endeavors to sell an exact amount of Portfolio Crypto Assets needed in order to pay such expenses in order to minimize the Trust’s holdings of assets other than Portfolio Crypto Assets. As a consequence, the Sponsor expects the Trust will typically have a very small cash balance at each reporting period. Cash may also be held in the Trust after a subscription from Shareholder is funded (or sent to the Trust’s bank account) but not yet invested in Portfolio Crypto Assets, or after a redemption from a redeeming Shareholder has been processed (e.g., by raising cash through the sale of Portfolio Crypto Assets) but not yet paid to the redeeming Shareholder.

As described above, in exchange for the Management Fee, the Sponsor is responsible for payment of almost all of the expenses incurred by the Trust. As a result, the only material ordinary expense of the Trust during the periods covered by this Registration Statement was the Management Fee. The Trust is not aware of any trends, demands, conditions or events that are reasonably likely to result in material changes to its liquidity needs.

Value of Portfolio Crypto Assets

As described in the Risk Factors set out in our Form 10-K filed with the SEC on March 1, 2024, the prices of the various Portfolio Crypto Assets held by the Trust are subject to extreme volatility. This volatility had a significant impact on the value of the Portfolio Crypto Assets for the three months ended March 31, 2024 compared to the three months ended March 31, 2023 and the year ended December 31, 2023.

As shown below in the “Schedules of Investments,” the increase in total investments in Crypto Assets from January 1, 2024 to March 31, 2024 was due primarily to an increase in the value of the Portfolio Crypto Assets and to a lesser extent, the reinvestment of assets resulting from the December 31, 2023 Trust rebalance.

Shareholder Subscriptions and Redemptions

During the period from January 1, 2024 to March 31, 2024, there were no subscriptions or redemptions of Shares. There were 20,241,947 Shares outstanding as of March 31, 2024.

Schedules of Investments

The following provides details on the Portfolio Crypto Assets that comprise the Trust’s assets.

Three Months Ended March 31, 2024 and the Twelve Months Ended December 31, 2023

 

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		Bitcoin (BTC)
		Units				Fair Value
Balance at January 1, 2024			10,998.0429			$	462,076,062
Purchases			—				—
Sales			(73.6884	)			(3,911,000	)
Net realized gain (loss) on investment			—				1,505,603
Net change in unrealized appreciation (depreciation) on investment			—				314,221,201
Balance at March 31, 2024			10,924.3545			$	773,891,866
		Ethereum (ETH)
		Units				Fair Value
Balance at January 1, 2024			67,221.7443			$	154,923,265
Purchases			56.2376				129,000
Sales			(190.1258	)			(643,834	)
Net realized gain (loss) on investment			—				353,347
Net change in unrealized appreciation (depreciation) on investment			—				84,374,898
Balance at March 31, 2024			67,087.8561			$	239,136,676
		Solana (SOL)
		Units				Fair Value
Balance at January 1, 2024			239,876.3681			$	25,143,841
Purchases			10,550.5042				1,262,000
Sales			(1,163.0990	)			(114,000	)
Net realized gain (loss) on investment			—				(50,869	)
Net change in unrealized appreciation (depreciation) on investment			—				20,191,884
Balance at March 31, 2024			249,263.7733			$	46,432,856
		Ripple (XRP)
		Units				Fair Value
Balance at January 1, 2024			30,324,826.6436			$	18,825,652
Purchases			172,655.7580				97,500
Sales			(117,226.5763	)			(59,971	)
Net realized gain (loss) on investment			—				(24,432	)
Net change in unrealized appreciation (depreciation) on investment			—				215,747
Balance at March 31, 2024			30,380,255.8253			$	19,054,496
		Cardano (ADA)
		Units				Fair Value
Balance at January 1, 2024			19,777,360.7670			$	11,943,548
Purchases			90,611.5552				55,001
Sales			(274,736.7860	)			(171,813	)
Net realized gain (loss) on investment			—				(196,361	)
Net change in unrealized appreciation (depreciation) on investment			—				1,115,025
Balance at March 31, 2024			19,593,235.5362			$	12,745,400
		Avalanche (AVAX)
		Units				Fair Value
Balance at January 1, 2024			195,564.0766			$	7,859,720
Purchases			16,331.8990				666,501
Sales			(1,991.9731	)			(68,930	)
Net realized gain (loss) on investment			—				(11,566	)
Net change in unrealized appreciation (depreciation) on investment			—				3,019,232
Balance at March 31, 2024			209,904.0025			$	11,464,957

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		Polkadot (DOT)
		Units				Fair Value
Balance at January 1, 2024			732,019.7088			$	6,033,306
Purchases			16,073.9844				134,008
Sales			(4,753.0630	)			(31,968	)
Net realized gain (loss) on investment			—				(60,479	)
Net change in unrealized appreciation (depreciation) on investment			—				978,692
Balance at March 31, 2024			743,340.6302			$	7,053,559
		Chainlink (LINK)
		Units				Fair Value
Balance at January 1, 2024			309,529.3045			$	4,803,895
Purchases			17,527.8501				306,000
Sales			—				—
Net realized gain (loss) on investment			—				—
Net change in unrealized appreciation (depreciation) on investment			—				1,172,546
Balance at March 31, 2024			327,057.1546			$	6,282,441
		Polygon (MATIC)
		Units				Fair Value
Balance at January 1, 2024			5,257,194.4118			$	5,114,199
Purchases			126,530.8800				119,000
Sales			—				—
Net realized gain (loss) on investment			—				—
Net change in unrealized appreciation (depreciation) on investment			—				165,601
Balance at March 31, 2024			5,383,725.2918			$	5,398,800
		Litecoin (LTC)
		Units				Fair Value
Balance at January 1, 2024			41,303.5713			$	3,075,464
Purchases			193.7873				13,000
Sales			(90.4690	)			(7,493	)
Net realized gain (loss) on investment			—				1,423
Net change in unrealized appreciation (depreciation) on investment			—				790,806
Balance at March 31, 2024			41,406.8896			$	3,873,200

 

As of March 31, 2024, Bitcoin represented 68.77% of the total Portfolio Crypto Assets held by the Trust, and Ethereum represented 21.25%, while the remaining 9.98% of the Portfolio Crypto Assets were comprised of Solana, Ripple, Cardano, Avalanche, Polkadot, Chainlink, Polygon, and Litecoin.

 

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		Bitcoin (BTC)
		Units				Fair Value
Balance at January 1, 2023			11,819.9707			$	195,753,017
Purchases			20.5358				610,300
Sales			(842.4636	)			(24,902,079	)
Net realized gain (loss) on investment			—				(2,603,484	)
Net change in unrealized appreciation (depreciation) on investment			—				293,218,308
Balance at December 31, 2023			10,998.0429			$	462,076,062
		Ethereum (ETH)
		Units				Fair Value
Balance at January 1, 2023			74,021.6567			$	88,589,859
Purchases			557.8226				1,028,557
Sales			(7,357.7350	)			(13,782,315	)
Net realized gain (loss) on investment			—				3,976,791
Net change in unrealized appreciation (depreciation) on investment			—				75,110,373
Balance at December 31, 2023			67,221.7443			$	154,923,265
		Solana (SOL)
		Units				Fair Value
Balance at January 1, 2023			225,537.2136			$	2,223,797
Purchases			29,487.6682				831,018
Sales			(15,148.5137	)			(367,563	)
Net realized gain (loss) on investment			—				(2,012,895	)
Net change in unrealized appreciation (depreciation) on investment			—				24,469,484
Balance at December 31, 2023			239,876.3681			$	25,143,841
		Ripple (XRP)
		Units				Fair Value
Balance at January 1, 2023			—			$	—
Purchases			30,827,319.0476				22,024,490
Sales			(502,492.4040	)			(300,039	)
Net realized gain (loss) on investment			—				(61,756	)
Net change in unrealized appreciation (depreciation) on investment			—				(2,837,043	)
Balance at December 31, 2023			30,324,826.6436			$	18,825,652
		Cardano (ADA)
		Units				Fair Value
Balance at January 1, 2023			21,522,897.0117			$	5,283,871
Purchases			450,981.2834				155,001
Sales			(2,196,517.5281	)			(699,362	)
Net realized gain (loss) on investment			—				(2,244,191	)
Net change in unrealized appreciation (depreciation) on investment			—				9,448,229
Balance at December 31, 2023			19,777,360.7670			$	11,943,548
		Avalanche (AVAX)
		Units				Fair Value
Balance at January 1, 2023			191,304.3666			$	2,083,305
Purchases			210,881.9742				4,436,602
Sales			(206,622.2642	)			(1,908,090	)
Net realized gain (loss) on investment			—				(17,184,235	)
Net change in unrealized appreciation (depreciation) on investment			—				20,432,138
Balance at December 31, 2023			195,564.0766			$	7,859,720

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		Polkadot (DOT)
		Units				Fair Value
Balance at January 1, 2023			728,522.0272			$	3,151,586
Purchases			68,667.8122				368,628
Sales			(65,170.1306	)			(353,741	)
Net realized gain (loss) on investment			—				(931,830	)
Net change in unrealized appreciation (depreciation) on investment			—				3,798,663
Balance at December 31, 2023			732,019.7088			$	6,033,306
		Polygon (MATIC)
		Units				Fair Value
Balance at January 1, 2023			5,364,647.6643			$	4,063,721
Purchases			261,220.9012				280,000
Sales			(368,674.1537	)			(258,068	)
Net realized gain (loss) on investment			—				(435,629	)
Net change in unrealized appreciation (depreciation) on investment			—				1,464,175
Balance at December 31, 2023			5,257,194.4118			$	5,114,199
		Chainlink (LINK)
		Units				Fair Value
Balance at January 1, 2023			301,859.6002			$	1,646,342
Purchases			631,509.3182				4,973,461
Sales			(623,839.6139	)			(4,565,192	)
Net realized gain (loss) on investment			—				(218,518	)
Net change in unrealized appreciation (depreciation) on investment			—				2,967,802
Balance at December 31, 2023			309,529.3045			$	4,803,895
		Litecoin (LTC)
		Units				Fair Value
Balance at January 1, 2023			44,176.0683			$	3,012,808
Purchases			—				—
Sales			(2,872.4970	)			(239,740	)
Net realized gain (loss) on investment			—				81,508
Net change in unrealized appreciation (depreciation) on investment			—				220,888
Balance at December 31, 2023			41,303.5713			$	3,075,464
		Bitcoin Cash (BCH)
		Units				Fair Value
Balance at January 1, 2023			—			$	—
Purchases			11,126.1639				2,640,379
Sales			(11,126.1639	)			(2,433,848	)
Net realized gain (loss) on investment			—				(206,531	)
Net change in unrealized appreciation (depreciation) on investment			—				—
Balance at December 31, 2023			—			$	—
		Cosmos (ATOM)
		Units				Fair Value
Balance at January 1, 2023			—			$	—
Purchases			178,366.2493				2,395,000
Sales			(178,366.2493	)			(1,975,406	)
Net realized gain (loss) on investment			—				(419,594	)
Net change in unrealized appreciation (depreciation) on investment			—				—
Balance at December 31, 2023			—			$	—

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		Uniswap (UNI)
		Units				Fair Value
Balance at January 1, 2023			462,947.3743			$	2,343,903
Purchases			—				—
Sales			(462,947.3743	)			(2,054,591	)
Net realized gain (loss) on investment			—				(894,060	)
Net change in unrealized appreciation (depreciation) on investment			—				604,748
Balance at December 31, 2023			—			$	—
		Flare (FLR)
		Units				Fair Value
Balance at January 1, 2023			—			$	—
Purchases			1,953,075.1500				68,436
Sales			(1,953,075.1500	)			(66,645	)
Net realized gain (loss) on investment			—				(1,791	)
Net change in unrealized appreciation (depreciation) on investment			—				—
Balance at December 31, 2023			—			$	—

As of December 31, 2023, Bitcoin represented 66.03% of the total Portfolio Crypto Assets held by the Trust, and Ethereum represented 22.14%, while the remaining 11.83% of the Portfolio Crypto Assets were comprised of Solana, Ripple, Cardano, Avalanche, Polkadot, Polygon, Chainlink, and Litecoin.

Off-Balance Sheet Arrangements

The Trust is not a party to any off-balance sheet arrangements.

Significant Accounting Policies

 

Basis of Presentation

 

The financial statements are expressed in U.S. dollars and have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The Trust is an investment company and follows the specialized accounting and reporting guidance in the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC” or “Codification”) Topic 946, Financial Services—Investment Companies.

 

Transactions of Crypto Assets have been accounted for analogizing to existing accounting standards that management believes are appropriate to the circumstances.

 

Pursuant to the Statement of Cash Flows Topic of the Codification, the Trust qualifies for an exemption from the requirement to provide a statement of cash flows and has elected not to provide a statement of cash flows.

 

Use of Estimates

 

The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates.

 

Cash

 

Cash represents cash deposits held at financial institutions and Crypto Asset exchanges. Cash in a bank deposit account, at times, may exceed U.S. federally insured limits. The Trust has not experienced any losses in such accounts and does not believe it is exposed to any significant credit risk on such bank deposits.

 

Investments and Valuation

 

Calculation of Valuation

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Effective August 31, 2021, the process that the Sponsor developed for identifying a principal market, as described in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 820-10, which outlines the application of fair value accounting, was to begin by identifying publicly available, well established and reputable Crypto Asset exchanges selected by the Sponsor and its affiliates in their sole discretion, and then calculating, on each valuation period, the highest volume exchange during the 60 minutes prior to 4:00 pm ET for each asset. In evaluating the markets that could be considered principal markets, the Trust considered whether or not the specific markets were accessible to the Trust, either directly or through an intermediary, at the end of each period.

Effective February 13, 2023, the Sponsor adapted a nearly identical principal market valuation process, with no material impact to the Trust, using a third-party valuation vendor, Lukka, Inc., to identify publicly available, well established and reputable Crypto Asset exchanges selected by Lukka, Inc. in their sole discretion, including Binance, Bitfinex, Bitflyer, Bitstamp, Coinbase Pro, Crypto.com, Gemini, HitBTC, Huobi, Kraken, KuCoin, OKEx, Poloniex, and then calculating, on each valuation period, the highest volume exchange during the 60 minutes prior to 4:00 pm ET for each asset. In evaluating the markets that could be considered principal markets, the Trust considered whether the specific markets were accessible to the Trust, either directly or through an intermediary, at the end of each period.

 

The following provides an overview of the Principal Market and the Principal Market Prices for Portfolio Crypto Assets that comprised the majority of the Trust’s assets for the three month period ended March 31, 2024.

 

Crypto Asset		Principal Market Price				Principal Market
Bitcoin (BTC)		$	70,840.97			Coinbase
Ethereum (ETH)		$	3,564.53			Coinbase
Solana (SOL)		$	186.28			Coinbase
Ripple (XRP)		$	0.63			Coinbase
Cardano (ADA)		$	0.65			Coinbase
Avalanche (AVAX)		$	54.62			Coinbase
Polkadot (DOT)		$	9.49			Coinbase
Chainlink (LINK)		$	19.21			Coinbase
Polygon (MATIC)		$	1.00			Coinbase
Litecoin (LTC)		$	93.54			Coinbase

Valuation during the periods presented

 

During the periods presented, the trust carried its investments at fair value in accordance with FASB ASC Topic 820, Fair Value Measurement. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., the “exit price”) in an orderly transaction between market participants at the measurement date. Fair value investments are not adjusted for transaction costs. The Trust utilized this method for purposes of calculating the Trust’s NAV.

 

In determining fair value, the Trust uses a single, principal market valuation approach. A fair value hierarchy for inputs is used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs are to be used when available. The fair value hierarchy is categorized into three levels based on the inputs as follows:

 

Level 1 – Valuations based on unadjusted quoted prices in active markets for identical assets or liabilities that the Trust has the ability to access.

 

Level 2 – Valuations based on quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly. These inputs may include (a) quoted prices for similar assets in active markets, (b) quoted prices for identical or similar assets in markets that are not active, (c) inputs other than quoted prices that are observable for the asset, or (d) inputs derived principally from or corroborated by observable market data by correlation or other means.

 

Level 3 – Valuations based on inputs that are unobservable and significant to the overall fair value measurement.

 

The availability of valuation techniques and observable inputs can vary from investment to investment and are affected by a wide variety of factors, including the type of investment, whether the investment is new and not yet established in the marketplace, the liquidity of markets, and other characteristics particular to the transaction.

 

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In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level in the fair value hierarchy which the fair value measurement falls in its entirety is determined based on the lowest level input that is significant to the fair value measurement.

 

The following summarizes the Trust’s assets accounted for at fair value at March 31, 2024.

		Level 1				Level 2				Level 3				Total
Assets
Investments in Crypto Assets, at fair value		$	1,125,334,251			$	—			$	—			$	1,125,334,251

 

The following summarizes the Trust’s assets accounted for at fair value at December 31, 2023.

		Level 1				Level 2				Level 3				Total
Assets
Investments in Crypto Assets, at fair value		$	699,798,952			$	—			$	—			$	699,798,952

 

During the periods ended March 31, 2024 and December 31, 2023, there were no significant transfers into or out of any levels of the fair value hierarchy.

During the period, all of the Trust’s assets were considered “Level 1” valuations, because the valuations were based on quoted prices in markets that are active or for which all significant inputs are observable, either directly or indirectly. These inputs may include (a) quoted prices for similar assets in active markets, (b) quoted prices for identical or similar assets in markets that are not active, (c) inputs other than quoted prices that are observable for the asset, or (d) inputs derived principally from or corroborated by observable market data by correlation or other means.

 

The Trust generally records receipt of a new Crypto Asset created due to a Hard Fork at the time the Hard Fork is effective. The Trust’s methodology for determining effectiveness of the fork is when two or more recognized exchanges quote prices for the forked coin. Some exchanges and custodians do not honor Hard Forks or may honor Hard Forks in the future. In such cases, the Trust will record receipt of the new Crypto Asset at the time two or more recognized exchanges begin quoting prices for the asset. Although the Trust records the asset into its books and records at the time the fork is effective, as described above, the Trust’s custodian may take an extended period of time to make the forked asset available for transfer, and it may never make the forked asset available for transfer, which could lead to either the Trust holding the asset longer than it would otherwise hold the asset (if it was freely transferrable), or a complete write-down in the value of the forked asset. The Trust does not allocate any of the original Crypto Asset’s cost to the new Crypto Asset and recognizes unrealized gains equal to the fair value of the new Crypto Asset received. During the period ended March 31, 2024, there were no hard forks recognized or not recognized.

 

There were no Hard Forks during the period that were not initially recognized but were subsequently recognized.

 

Crypto Asset transactions are recorded on the trade date. Realized gains and losses from Crypto Asset transactions are determined using the identified cost method. Any change in net unrealized gain or loss is reported in the statement of operations. Commissions and other trading fees are reflected as an adjustment to cost or proceeds at the time of the transaction.

 

The Trust intermittently receives Airdrops of new Crypto Assets. The use of Airdrops is generally to promote the launch and use of new Crypto Assets by providing a small amount of the new Crypto Assets to the private wallets or exchange accounts of holders of existing related Crypto Assets. Airdropped Crypto Assets can have substantially different Blockchain technology that has no relation to any existing Crypto Asset, and many Airdrops may be without value. The Trust will only record receipt of airdropped Crypto Assets if when received, the airdropped Crypto Assets have value. Crypto Assets received from Airdrops have no cost basis and the Trust recognizes other income equal to the fair value of the new Crypto Asset received. There were no Airdrops recognized or unrecognized during the three month period ended March 31, 2024.

 

Income Taxes

 

The Trust is classified as a partnership for U.S. federal income tax purposes. The Trust does not record a provision for U.S. federal, U.S. state or local income taxes because the Shareholders report their share of the Trust’s income or loss on their income tax returns. The Trust files an income tax return in the U.S. federal jurisdiction and may file income tax returns in various U.S. states and foreign jurisdictions.

The Trust is required to determine whether its tax positions are more likely than not to be sustained on examination by the applicable taxing authority, based on the technical merits of the position. Tax positions not deemed to meet a more likely than not threshold would be recorded as a tax expense in the current year. As of March 31, 2024 and December 31, 2023, the Trust has determined that

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no provision for income taxes is required and no liability for unrecognized tax benefits has been recorded. The Trust does not expect that its assessment related to unrecognized tax benefits will materially change over the next 12 months. However, the Trust’s conclusions may be subject to review and adjustment at a later date based on factors including, but not limited to, the nexus of income among various tax jurisdictions; compliance with U.S. federal, U.S. state, and tax laws of jurisdictions in which the Trust operates in; and changes in the administrative practices and precedents of the relevant authorities. The Trust is required to analyze all open tax years. Open tax years are those years that are open for examination by the relevant income taxing authority. As of December 31, 2023, the 2022, 2021, and 2020 tax years remain open for examination. There were no examinations in progress at period end.

 

Financial Instruments with Off-Balance-Sheet Risk

 

Crypto Assets

 

Crypto Assets are loosely regulated and there is no central marketplace for currency exchange. Supply is determined by a computer code, not by a central bank, and prices have been extremely volatile. Crypto Asset exchanges have been closed due to fraud, failure or security breaches. Any of the Trust’s assets that reside on an exchange that shuts down may be lost. At March 31, 2024, Crypto Assets of approximately $7,753,989 and no cash reside on exchanges. At December 31, 2023, the Trust had a $2,770,000 receivable from Crypto Assets sold and approximately $900 in cash in the Trust bank accounts.

 

Several factors may affect the price of Crypto Assets, including, but not limited to: supply and demand, investors’ expectations with respect to the rate of inflation, interest rates, currency exchange rates or future regulatory measures (if any) that restrict the trading of Crypto Assets or the use of Crypto Assets as a form of payment. There is no assurance that Crypto Assets will maintain their long-term value in terms of purchasing power in the future, or that acceptance of Crypto Asset payments by mainstream retail merchants and commercial businesses will continue to grow.

 

Crypto Asset Regulation

 

As Crypto Assets have grown in popularity and market size, various countries and jurisdictions have begun to develop regulations governing the Crypto Assets industry. To the extent that future regulatory actions or policies limit the ability to exchange Crypto Assets or utilize them for payments, the demand for Crypto Assets will be reduced. Furthermore, regulatory actions may limit the ability of end-users to convert Crypto Assets into fiat currency (e.g., U.S. dollars) or use Crypto Assets to pay for goods and services. Such regulatory actions or policies would result in a reduction of demand, and in turn, a decline in the underlying Crypto Asset unit prices.

The effect of any future regulatory change on the Trust or Crypto Assets in general is impossible to predict, but such change could be substantial and adverse to the Trust and the value of the Trust’s investments in Crypto Assets.

 

Custody of Crypto Assets

 

The Custodian serves as the Trust’s Custodian for Crypto Assets for which qualified custody is available. The Custodian is subject to change in the sole discretion of the Sponsor. At March 31, 2024 and December 31, 2023, Crypto Assets of approximately $1,117,580,262 and $698,528,691 are held by the Custodian, respectively.

 

Crypto Asset Trading is Volatile and Speculative

 

Crypto Assets represent a speculative investment and involve a high degree of risk. Prices of Crypto Assets have fluctuated widely for a variety of reasons including uncertainties in government regulation and may continue to experience significant price fluctuations. If Crypto Asset markets continue to be subject to sharp fluctuations, Shareholders may experience losses as the value of the Trust’s investments decline. Even if Shareholders are able to hold their Shares in the Trust for the long-term, their Shares may never generate a profit, since Crypto Asset markets have historically experienced extended periods of flat or declining prices, in addition to sharp fluctuations.

 

Over-the-Counter Transactions

 

Some of the markets in which the Trust may execute its transactions are “over-the-counter” or “interdealer” markets. The participants in such markets are typically not subject to credit evaluation and regulatory oversight as are members of “exchange-based” markets. This exposes the Trust to the risk that a counterparty will not settle a transaction in accordance with its terms and conditions because of a dispute over the terms of the contract (whether or not bona fide) or because of a credit or liquidity problem, thus causing the Trust to suffer a loss. Such “counterparty risk” is accentuated for Crypto Assets where the Trust has concentrated its transactions with a single or small group of counterparties. The Trust is not restricted from dealing with any particular counterparty or from concentrating any or all of its transactions with one counterparty. Moreover, the Trust has no internal credit function that evaluates the creditworthiness of its counterparties. The ability of the Trust to transact business with any one or number of counterparties, the lack

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of any meaningful and independent evaluation of such counterparty’s financial capabilities and the absence of a regulated market to facilitate settlement may increase the potential for losses by the Trust.

 

No FDIC or SIPC Protection

 

The Trust is not a banking institution or otherwise a member of the FDIC or the SIPC. Accordingly, deposits or assets held by the Trust are not subject to the protections enjoyed by depositors with FDIC or SIPC member institutions. The Trust’s Crypto Asset Custodian does however carry bespoke insurance policies related to the Crypto Assets over which it provides custody.

The Trust must adapt to technological change in order to secure and safeguard client accounts. While management believes they have developed an appropriate proprietary security system reasonably designed to safeguard the Trust’s Crypto Assets from theft, loss, destruction or other issues relating to hackers and technological attack, such assessment is based upon known technology and threats. To the extent that the Trust is unable to identify and mitigate or stop new security threats, the Trust’s Crypto Assets may be subject to theft, loss, destruction or other attack, which could have a negative impact on the performance of the Trust or result in loss of the Trust’s Crypto Assets.

 

Risks Associated with a Crypto Assets Majority Control

 

Since Crypto Assets are virtual and transactions in such currencies reside on distributed networks, governance of the underlying distributed network could be adversely altered should any individual or group obtain 51% control of the distributed network. Such control could have a significant adverse effect on either the ownership or value of the Crypto Asset.

 

Transaction Authentication

 

As of the date of these financial statements, the transfer of Crypto Assets from one party to another typically relies on an authentication process by an outside party known as a Miner or Validator. In exchange for compensation, the Miner or Validator will authenticate the transfer of the currency through the solving of a complex algorithm known as a proof of work, or will vouch for the transfer through other means, such as a proof of stake. Effective transfers of and therefore realization of Crypto Assets and tokens are dependent on interactions from these Miners or Validators. In the event that there were a shortage of Miners or Validators to perform this function, that shortage could have an adverse effect on either the fair value or realization of the Crypto Assets.

Other Risks

Management continues to evaluate the impact of current or anticipated military conflict, including between Russia and Ukraine, terrorism, sanctions and other geopolitical events as well as adverse developments in the economy, the capital markets and the Blockchain markets, including rising energy costs, inflation and interest rates, in the United States and globally, and catastrophic events such as fires, floods, earthquakes, tornadoes, hurricanes and global health epidemics, and has concluded that while it is reasonably possible that these events could have a negative effect on the financial performance and operations of the Trust, the specific impact is not readily determinable as of the date of the financial statements. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.

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Item 3. Quantitative and Qualitative Disclosures about Market Risk

 

The Trust Agreement does not authorize the Trustee to borrow for payment of the Trust’s ordinary expenses. The Trust does not engage in transactions in foreign currencies which could expose the Trust or holders of Shares to any foreign currency related market risk. The Trust does not invest in derivative financial instruments and has no foreign operations or long-term debt instruments.

Item 4. Controls and Procedures

 

Conclusion Regarding the Effectiveness of Disclosure Controls and Procedures

The Trust maintains disclosure controls and procedures that are designed to ensure that information required to be disclosed in its Exchange Act reports is recorded, processed, summarized, and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to the Principal Executive Officer and Principal Financial and Accounting Officer of the Sponsor, and to the Board of Directors of the Sponsor, as appropriate, to allow timely decisions regarding required disclosure.

 

Under the supervision and with the participation of the Principal Executive Officer and the Principal Financial and Accounting Officer of the Sponsor, the Sponsor conducted an evaluation of the Trusts disclosure controls and procedures, as defined under Exchange Act Rule 13a-15(e). Based on this evaluation, the Principal Executive Officer and the Principal Financial and Accounting Officer of the Sponsor concluded that the Trust’s disclosure controls and procedures were effective as of the end of the period covered by this report.

 

Changes in Internal Control Over Financial Reporting

There was no change in the Trust’s internal controls over financial reporting that occurred during the Trust’s most recently completed fiscal quarter that has materially affected, or is reasonably likely to materially affect, these internal controls.

---

PART II – OTHER INFORMATION:

Item 1. Legal Proceedings

None.

Item 1A. Risk Factors

There have been no material changes to the Risk Factors last reported under Item 1A of the registrant’s annual report on Form 10-K.

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

(a)

The Trust offers the Shares pursuant to Rule 506 of Regulation D under the Securities Act. The Shares offered by the Trust have not been registered under the Securities Act, or any state or other securities laws, and were offered and sold only to “accredited investors” within the meaning of Rule 501(a) of Regulation D under the Securities Act, and in compliance with any applicable state or other securities laws.

The table below describes the Shares offered, the Shares sold and the average and range of prices at which the Shares were offered and sold by the Trust. All Shares initially offered and sold by the Trust are restricted securities pursuant to Rule 144 under the Securities Act. Until the Shares sold by the Trust become unrestricted in accordance with Rule 144, the certificates or other documents evidencing the Shares will contain legends stating that the Shares have not been registered under the Securities Act and referring to the restrictions on transferability and sale of the Shares under the Securities Act. Such legends are removed upon Shares becoming unrestricted in accordance with Rule 144.

To date, no Shares, other securities of the Trust, or options to acquire such other securities were issued in exchange for services provided by any person or entity.

As of November 18, 2021, the Sponsor to the Trust has closed the acceptance of all subscriptions to the Bitwise 10 Crypto Index Fund, pursuant to its rights under Sections 5 and 6 of the Trust Agreement.

 

Period	Shares Offered	Shares Sold			Number of Purchasers			Avg. Price Per Share			High Price Per Share			Date			Low Price Per Share			Date
January 1, 2021 to    March 31, 2021	Unlimited		4,647,510			536		$	34.65		$	51.02		3/30/21			$	28.82		1/21/21
April 1, 2021 to    June 30, 2021	Unlimited		335,785			192		$	49.03		$	60.39		5/11/21			$	31.44		6/22/21
July 1, 2021 to    September 30, 2021	Unlimited		40,296			39		$	41.15		$	53.19		9/2/21			$	28.62		7/20/21
October 1, 2021 to    December 31, 2021	Unlimited		86,116			15		$	62.13		$	68.87		11/9/21			$	52.36		10/5/21
January 1, 2022 to    March 31, 2022	Unlimited		—			—			—			—			—			—			—
April 1, 2022 to    June 30, 2022	Unlimited		—			—			—			—			—			—			—
July 1, 2022 to    September 30, 2022	Unlimited		—			—			—			—			—			—			—
October 1, 2022 to    December 31, 2022	Unlimited		—			—			—			—			—			—			—
January 1, 2023 to    March 31, 2023	Unlimited		—			—			—			—			—			—			—
April 1, 2023 to    June 30, 2023	Unlimited		—			—			—			—			—			—			—
July 1, 2023 to    September 30, 2023	Unlimited		—			—			—			—			—			—			—
October 1, 2023 to    December 31, 2023	Unlimited		—			—			—			—			—			—			—
January 1, 2024 to    March 31, 2024	Unlimited		—			—			—			—			—			—			—

 

---

 

---

Item 3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclosures

Not applicable.

Item 5. Other Information

None.

Item 6. Exhibits

Exhibit Number	Exhibit Description
31.1	Certification of Principal Executive Officer pursuant to Rule 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as amended, with respect to the Trust’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2024.
31.2	Certification of Principal Financial Officer pursuant to Rule 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as amended, with respect to the Trust’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2024.
32.1*	Certification of Principal Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, with respect to the Trust’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2024.
32.2*	Certification of Principal Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, with respect to the Trust’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2024.
101.INS	Inline XBRL Instance Document – the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
101.SCH	Inline XBRL Taxonomy Extension Schema Document
104	Cover Page Interactive Data File (Formatted as Inline XBRL and contained in exhibit 101)

 

* These exhibits are furnished with this Quarterly Report on Form 10-Q and are not deemed filed with the SEC and are not incorporated by reference in any filing of Bitwise 10 Crypto Index Fund under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, whether made before or after the date hereof and irrespective of any general incorporation language contained in such filings.

---

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Bitwise Investment Advisers, LLC as Sponsor of Bitwise 10 Crypto Index Fund (BITW)
By:	/s/ Hunter Horsley
	Name:	Hunter Horsley
	Title:	President (Principal Executive Officer)*
By:	/s/ Paul Fusaro
	Name:	Paul Fusaro
	Title:	Title: Chief Operating Officer (Principal Financial Officer and Principal Accounting Officer)*

 

Date: May 13, 2024

* The Registrant is a trust and the persons are signing in their capacities as officers or directors of Bitwise Investment Advisers, LLC, the Sponsor of the Registrant.

---

Exhibit 31.1

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER PURSUANT TO RULE 13a-14(a)

AND 15d-14(a) UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED, AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Hunter Horsley, certify that:

[Signature page follows]

 

---

Date: May 13, 2024

/s/ Hunter Horsley

Hunter Horsley *

President (Principal Executive Officer)

* The Registrant is a trust and Hunter Horsley is signing in his capacity as Principal Executive Officer of Bitwise Investment Advisers, LLC, the Sponsor of the Trust.

[Signature Page to SOX 302 Certification]

---

Exhibit 31.2

CERTIFICATION OF PRINCIPAL FINANCIAL AND ACCOUNTING OFFICER PURSUANT TO RULE 13a-14(a)

AND 15d-14(a) UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED, AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Paul Fusaro, certify that:

[Signature page follows]

 

---

Date: May 13, 2024

/s/ Paul Fusaro

Paul Fusaro *

Chief Operating Officer (Principal Financial and Accounting Officer)

* The Registrant is a trust and Paul Fusaro is signing in his capacity as Principal Financial and Accounting Officer of Bitwise Investment Advisers, LLC, the Sponsor of the Trust.

[Signature page to SOX 302 Certification]

---

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Bitwise 10 Crypto Index Fund (BITW) (the “Trust”) on Form 10-Q for the period ending March 31, 2024, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Hunter Horsley, Principal Executive Officer of Bitwise Investment Advisers, LLC, the Sponsor of the Trust, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

/s/ Hunter Horsley

Hunter Horsley *

President (Principal Executive Officer)

May 13, 2024

* The Registrant is a trust and Hunter Horsley is signing in his capacity as Principal Executive Officer of Bitwise Investment Advisers, LLC, the Sponsor of the Trust.

---

Exhibit 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Bitwise 10 Crypto Index Fund (BITW) (the “Trust”) on Form 10-Q for the period ending March 31, 2024, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Paul Fusaro, Principal Financial and Accounting Officer of Bitwise Investment Advisers, LLC, the Sponsor of the Trust, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

/s/ Paul Fusaro

Paul Fusaro*

Chief Operating Officer (Principal Financial and Accounting Officer) May 13, 2024

* The Registrant is a trust and Paul Fusaro is signing in his capacity as Principal Financial and Accounting Officer of Bitwise Investment Advisers, LLC, the Sponsor of the Trust.

---

v3.24.1.1.u2

Cover Page - shares	3 Months Ended
	Mar. 31, 2024	May 09, 2024
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2024
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q1
Entity Registrant Name	Bitwise 10 Crypto Index Fund
Entity Central Index Key	0001723788
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	false
Entity Common Stock, Shares Outstanding		20,241,947
Entity Address, State or Province	CA
Entity Interactive Data Current	Yes
Document Quarterly Report	true
Document Transition Report	false
Entity Emerging Growth Company	true
Entity Shell Company	false
Entity Address, Address Line One	250 Montgomery Street
Entity Address, Address Line Two	Suite 200
Entity Address, City or Town	San Francisco
Entity Address, Postal Zip Code	94104
Entity File Number	000-56270
Entity Tax Identification Number	82-3002349
City Area Code	415
Local Phone Number	707-3663
Entity Incorporation, State or Country Code	DE
Entity Ex Transition Period	false

v3.24.1.1.u2

Statements of Financial Condition - USD ($)	Mar. 31, 2024	Dec. 31, 2023
Assets
Investments in Crypto Assets, at fair value (cost $314,064,537 and $314,774,926)	$ 1,125,334,251	$ 699,798,952
Crypto Assets sold receivable		2,770,000
Cash	446	913
Other assets	319	263
Total Assets	1,125,335,016	702,570,128
Liabilities
Management fee payable	2,344,447	1,463,687
Subscriptions received in advance	301	301
Total Liabilities	2,344,748	1,463,988
Net Assets	1,122,990,268	701,106,140
Net Assets consists of:
Paid-in-capital	427,764,344	427,764,344
Accumulated net investment gain (loss)	(58,110,378)	(52,232,153)
Accumulated net realized gain (loss) on investments in Crypto Assets	(57,933,412)	(59,450,077)
Net unrealized appreciation (depreciation) on investments in Crypto Assets	811,269,714	385,024,026
Net Assets	$ 1,122,990,268	$ 701,106,140
Shares issued and outstanding, no par value (unlimited shares authorized)	20,241,947	20,241,947
Net asset value per share	$ 55.48	$ 34.64

v3.24.1.1.u2

Statements of Financial Condition (Parenthetical) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2024	Dec. 31, 2023
Statement of Financial Position [Abstract]
Investment owned, at cost	$ 314,064,537	$ 314,774,926
Common Stock, No Par Value	$ 0	$ 0
Common Stock, Shares Authorized, Unlimited	Unlimited	Unlimited

v3.24.1.1.u2

Schedules of Investments	3 Months Ended	12 Months Ended
	Mar. 31, 2024 USD ($)	Dec. 31, 2023 USD ($)
Schedule of Investments [Line Items]
Fair Value	$ 1,125,334,251	$ 699,798,952
Percentage of Net Assets	100.21%	99.81%
Other liabilities in excess of assets	$ (2,343,983)
Percentage of other liabilities in excess of assets	(0.21%)
Assets in excess of liabilities		$ 1,307,188
Percentage of assets in excess of liabilities		0.19%
Net Assets	$ 1,122,990,268	$ 701,106,140
Percentage of Net Assets	100.00%	100.00%
Bitcoin [Member]
Schedule of Investments [Line Items]
Units	10,924.3545	10,998.0429
Fair Value	$ 773,891,866	$ 462,076,062
Percentage of Net Assets	68.91%	65.91%
Ethereum [Member]
Schedule of Investments [Line Items]
Units	67,087.8561	67,221.7443
Fair Value	$ 239,136,676	$ 154,923,265
Percentage of Net Assets	21.29%	22.10%
Solana [Member]
Schedule of Investments [Line Items]
Units	249,263.7733	239,876.3681
Fair Value	$ 46,432,856	$ 25,143,841
Percentage of Net Assets	4.13%	3.59%
Ripple [Member]
Schedule of Investments [Line Items]
Units	30,380,255.8253	30,324,826.6436
Fair Value	$ 19,054,496	$ 18,825,652
Percentage of Net Assets	1.70%	2.69%
Cardano [Member]
Schedule of Investments [Line Items]
Units	19,593,235.5362	19,777,360.767
Fair Value	$ 12,745,400	$ 11,943,548
Percentage of Net Assets	1.14%	1.70%
Avalanche [Member]
Schedule of Investments [Line Items]
Units	209,904.0025	195,564.0766
Fair Value	$ 11,464,957	$ 7,859,720
Percentage of Net Assets	1.02%	1.12%
Polkadot [Member]
Schedule of Investments [Line Items]
Units	743,340.6302	732,019.7088
Fair Value	$ 7,053,559	$ 6,033,306
Percentage of Net Assets	0.63%	0.86%
Chainlink [Member]
Schedule of Investments [Line Items]
Units	327,057.1546	309,529.3045
Fair Value	$ 6,282,441	$ 4,803,895
Percentage of Net Assets	0.56%	0.69%
Polygon [Member]
Schedule of Investments [Line Items]
Units	5,383,725.2918	5,257,194.4118
Fair Value	$ 5,398,800	$ 5,114,199
Percentage of Net Assets	0.48%	0.73%
Litecoin [Member]
Schedule of Investments [Line Items]
Units	41,406.8896	41,303.5713
Fair Value	$ 3,873,200	$ 3,075,464
Percentage of Net Assets	0.35%	0.44%

v3.24.1.1.u2

Schedules of Investments (Parenthetical) - USD ($)	Mar. 31, 2024	Dec. 31, 2023
Schedule of Investments [Line Items]
Investment owned, at cost	$ 314,064,537	$ 314,774,926
Percentage of assets in excess of liabilities		0.19%

v3.24.1.1.u2

Statements of Operations - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Expenses
Management fee	$ 5,878,198	$ 2,842,302
Transaction and other fees	27
Total Expenses	5,878,225	2,842,302
Net Investment gain (loss)	(5,878,225)	(2,842,302)
Net realized and change in unrealized gain (loss) on investments
Net realized gain (loss) from crypto assets	1,516,665	(1,939,233)
Net change in unrealized appreciation (depreciation) from crypto assets	426,245,688	201,060,657
Net realized and change in unrealized gain (loss) on investments	427,762,353	199,121,424
Net increase (decrease) in Net Assets resulting from operations	$ 421,884,128	$ 196,279,122

v3.24.1.1.u2

Statement of Changes in Net Assets - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Increase (decrease) in net assets from operations:
Net investment gain (loss)	$ (5,878,225)	$ (2,842,302)
Net realized gain (loss) from crypto assets	1,516,665	(1,939,233)
Net change in unrealized appreciation (depreciation) from crypto assets	426,245,688	201,060,657
Net increase (decrease) in Net Assets resulting from operations	421,884,128	196,279,122
Net Assets:
Beginning of Period	701,106,140	308,156,499
End of Period	$ 1,122,990,268	$ 504,435,621
Increase (Decrease) in Partners' Capital [Roll Forward]
Shares outstanding at beginning of period	20,241,947	20,241,947
Shares outstanding at end of period	20,241,947	20,241,947

v3.24.1.1.u2

Organization	3 Months Ended
	Mar. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization	1. Organization Bitwise 10 Crypto Index Fund (the “Trust”) is a Delaware Statutory Trust that commenced operations on November 22, 2017. The Trust’s name was changed from “Bitwise Hold 10 Private Index Fund, LLC” on September 24, 2018, and changed again from “Bitwise 10 Private Index Fund, LLC” on May 1, 2020 when it was also simultaneously converted from a Delaware Limited Liability Company to a Delaware Statutory Trust. Bitwise Investment Advisers, LLC, is the sponsor (“Sponsor”) and investment adviser of the Trust. Bitwise Asset Management, Inc, an affiliate of the Sponsor, served as the Manager before the Trust’s conversion to a Delaware Statutory Trust. Delaware Trust Company is the Trustee of the Trust, and American Stock Transfer & Trust Company is the Transfer Agent of the Trust. On December 9, 2020, the Trust received notice that its Shares were qualified for public trading on the OTCQX U.S. Marketplace of the OTC Markets Group, Inc. (“OTCQX”). The Trust’s trading symbol on OTCQX is “BITW” and the CUSIP number for its Shares is 091749101. The Trust’s principal investment objective is to invest in a portfolio of broad-based Crypto Assets that tracks the Bitwise 10 Large Cap Crypto Index (the “Index”), which is administered by Bitwise Index Services, LLC (the "Index Provider"), an affiliate of the Sponsor. The Trust rebalances monthly alongside the Index to stay current with changes. All shareholders are subject to a 2.5% per annum Management Fee and are referred to as the Investor Class. Pursuant to the Agreement and Plan of Conversion executed as of May 1, 2020, the Trust converted from a Delaware Limited Liability Company to a Delaware Statutory Trust. Theorem Fund Services, LLC (the “Administrator”) serves as the Trust’s Administrator and performs certain administrative and accounting services on behalf of the Trust.

v3.24.1.1.u2

Significant Accounting Policies	3 Months Ended
	Mar. 31, 2024
Accounting Policies [Abstract]
Significant Accounting Policies	2. Significant Accounting Policies Basis of Presentation The financial statements are expressed in U.S. dollars and have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The Trust is an investment company and follows the specialized accounting and reporting guidance in the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC” or “Codification”) Topic 946, Financial Services—Investment Companies. The accompanying comparative financial statements are unaudited, but in the opinion of management of the Sponsor, contain all adjustments (which include normal recurring adjustments) considered necessary to present fairly the financial position of the Trust as of March 31, 2024 and December 31, 2023 and the results of operations for the three months ended March 31, 2024 and 2023. These interim financial statements should be read in conjunction with the Trust’s annual report on Form 10-K for the year ended December 31, 2023. Interim period results are not necessarily indicative of results for a full-year period. Pursuant to the Statement of Cash Flows Topic of the Codification, the Trust qualifies for an exemption from the requirement to provide a statement of cash flows and has elected not to provide a statement of cash flows. Use of Estimates The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. Cash Cash represents cash deposits held at financial institutions and Crypto Asset exchanges. Cash in a bank deposit account, at times, may exceed U.S. federally insured limits. The Trust has not experienced any losses in such accounts and does not believe it is exposed to any significant credit risk on such bank deposits. Investments and Valuation The Trust’s investments in Crypto Assets are stated at fair value. For a further discussion of the Trust’s calculations of valuation, please see “Calculation of Valuation” in the footnote below. Crypto Assets are generally valued using prices as reported on reputable and liquid exchanges and may utilize an average of bid and ask quotes using closing prices provided by such exchanges as of the date and time of determination ("Calculation of Valuation" below). Factors such as the recent stability of the exchange, current liquidity of the exchange, and recent price activity of an exchange will be considered in the determination of which exchanges to utilize. The time used is 4:00 pm ET which corresponds to 20:00 UTC during Daylight Savings Time and 21:00 UTC during non-Daylight Savings Time. The Sponsor’s Valuation Policy provides a listing of preferred exchanges. While some Crypto Assets are valued based on prices reported in the public markets, other Crypto Assets may be more thinly-traded or subject to irregular trading activity. Determinations on the value of certain Crypto Assets, and how to value such assets as to which limited prices or quotations are available, are based on the Sponsor’s recommendations or instructions.   Crypto Asset transactions are recorded on the trade date. Realized gains and losses from Crypto Asset transactions are determined using the identified cost method. Any change in net unrealized gain or loss is reported in the statement of operations. Commissions and other trading fees are reflected as an adjustment to cost or proceeds at the time of the transaction.   The Trust intermittently receives Airdrops of new Crypto Assets. The use of Airdrops is generally to promote the launch and use of new Crypto Assets by providing a small amount of the new Crypto Assets to the private wallets or exchange accounts of holders of existing related Crypto Assets. Airdropped Crypto Assets can have substantially different Blockchain technology that has no relation to any existing Crypto Asset, and many Airdrops may be without value. The Trust will only record receipt of airdropped Crypto Assets if when received, the airdropped Crypto Assets have value. Crypto Assets received from Airdrops have no cost basis and the Trust recognizes other income equal to the fair value of the new Crypto Asset received. There were no Airdrops recognized or unrecognized during the three month period ended March 31, 2024.   Calculation of Valuation Effective August 31, 2021, the process that the Sponsor developed for identifying a principal market, as described in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 820-10, which outlines the application of fair value accounting, was to begin by identifying publicly available, well established and reputable Crypto Asset exchanges selected by the Sponsor and its affiliates in their sole discretion, and then calculating, on each valuation period, the highest volume exchange during the 60 minutes prior to 4:00 pm ET for each asset. In evaluating the markets that could be considered principal markets, the Trust considered whether or not the specific markets were accessible to the Trust, either directly or through an intermediary, at the end of each period. Effective February 13, 2023, the Sponsor adapted a nearly identical principal market valuation process, with no material impact to the Trust, using a third-party valuation vendor, Lukka, Inc., to identify publicly available, well established and reputable Crypto Asset exchanges selected by Lukka, Inc. in their sole discretion, including Binance, Bitfinex, Bitflyer, Bitstamp, Coinbase Pro, Crypto.com, Gemini, HitBTC, Huobi, Kraken, KuCoin, OKEx, Poloniex, and then calculating, on each valuation period, the highest volume exchange during the 60 minutes prior to 4:00 pm ET for each asset. In evaluating the markets that could be considered principal markets, the Trust considered whether the specific markets were accessible to the Trust, either directly or through an intermediary, at the end of each period. The following provides an overview of the Principal Market and the Principal Market Prices for Portfolio Crypto Assets that comprised the majority of the Trust’s assets for the three-month period ended March 31, 2024. Crypto Asset   Principal Market Price     Principal Market Bitcoin (BTC)   $ 70,840.97     Coinbase Ethereum (ETH)   $ 3,564.53     Coinbase Solana (SOL)   $ 186.28     Coinbase Ripple (XRP)   $ 0.63     Coinbase Cardano (ADA)   $ 0.65     Coinbase Avalanche (AVAX)   $ 54.62     Coinbase Polkadot (DOT)   $ 9.49     Coinbase Chainlink (LINK)   $ 19.21     Coinbase Polygon (MATIC)   $ 1.00     Coinbase Litecoin (LTC)   $ 93.54     Coinbase

v3.24.1.1.u2

Fair Value Measurements	3 Months Ended
	Mar. 31, 2024
Fair Value Disclosures [Abstract]
Fair Value Measurements	3. Fair Value Measurements The Trust carries its investments at fair value in accordance with FASB ASC Topic 820, Fair Value Measurement. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., the “exit price”) in an orderly transaction between market participants at the measurement date. Fair value investments are not adjusted for transaction costs. In determining fair value, the Trust uses a single, principal market approach. A fair value hierarchy for inputs is used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs are to be used when available. The fair value hierarchy is categorized into three levels based on the inputs as follows: Level 1 – Valuations based on unadjusted quoted prices in active markets for identical assets or liabilities that the Trust has the ability to access. Level 2 – Valuations based on quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly. These inputs may include (a) quoted prices for similar assets in active markets, (b) quoted prices for identical or similar assets in markets that are not active, (c) inputs other than quoted prices that are observable for the asset, or (d) inputs derived principally from or corroborated by observable market data by correlation or other means. Level 3 – Valuations based on inputs that are unobservable and significant to the overall fair value measurement. The availability of valuation techniques and observable inputs can vary from investment to investment and are affected by a wide variety of factors, including the type of investment, whether the investment is new and not yet established in the marketplace, the liquidity of markets, and other characteristics particular to the transaction. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level in the fair value hierarchy which the fair value measurement falls in its entirety is determined based on the lowest level input that is significant to the fair value measurement. The following summarizes the Trust’s assets accounted for at fair value at March 31, 2024.     Level 1     Level 2     Level 3     Total   Assets                         Investments in Crypto Assets, at fair value   $ 1,125,334,251     $ —     $ —     $ 1,125,334,251     The following summarizes the Trust’s assets accounted for at fair value at December 31, 2023.     Level 1     Level 2     Level 3     Total   Assets                         Investments in Crypto Assets, at fair value   $ 699,798,952     $ —     $ —     $ 699,798,952     During the periods ended March 31, 2024 and December 31, 2023, there were no significant transfers into or out of any levels of the fair value hierarchy.

v3.24.1.1.u2

Risks and Uncertainties	3 Months Ended
	Mar. 31, 2024
Risks and Uncertainties [Abstract]
Risks and Uncertainties	4. Risks and Uncertainties Crypto Assets Crypto Assets are loosely regulated and there is no central marketplace for currency exchange. Supply is determined by a computer code, not by a central bank, and prices have been extremely volatile. Crypto Asset exchanges have been closed due to fraud, failure, or security breaches. Any of the Trust’s assets that reside on an exchange that closes may be lost. At March 31, 2024, Crypto Assets of approximately $7,753,989 and no cash resided on exchanges. At December 31, 2023, the Trust had a $2,770,000 receivable from Crypto Assets sold and approximately $900 in cash in the Trust bank accounts. Several factors may affect the price of Crypto Assets, including, but not limited to: supply and demand, investors’ expectations with respect to the rate of inflation, interest rates, currency exchange rates, or future regulatory measures (if any) that restrict the trading of Crypto Assets or the use of Crypto Assets as a form of payment. There is no assurance that Crypto Assets will maintain their long-term value in terms of purchasing power in the future, or that acceptance of Crypto Asset payments by mainstream retail merchants and commercial businesses will continue to grow. Crypto Asset Regulation As Crypto Assets have grown in popularity and market size, various countries and jurisdictions have begun to develop regulations governing the Crypto Assets industry. To the extent that future regulatory actions or policies limit the ability to exchange Crypto Assets or utilize them for payments, the demand for Crypto Assets will be reduced. Furthermore, regulatory actions may limit the ability of end-users to convert Crypto Assets into fiat currency (e.g., U.S. dollars) or use Crypto Assets to pay for goods and services. Such regulatory actions or policies could result in a reduction of demand, and in turn, a decline in the underlying Crypto Asset unit prices. The effect of any future regulatory change on the Trust or Crypto Assets in general is impossible to predict, but such change could be substantial and adverse to the Trust and the value of the Trust’s investments in Crypto Assets. Custody of Crypto Assets Coinbase Custody Trust Company, LLC (the “Custodian”) serves as the Trust’s Custodian for Crypto Assets for which qualified custody is available. The Custodian is subject to change in the sole discretion of the Sponsor. At March 31, 2024 and December 31, 2023, Crypto Assets of approximately $1,117,580,262 and $698,528,691 were held by the Custodian, respectively. Crypto Asset Trading is Volatile and Speculative Crypto Assets represent a speculative investment and involve a high degree of risk. Prices of Crypto Assets have fluctuated widely for a variety of reasons including uncertainties in government regulation and may continue to experience significant price fluctuations. If Crypto Asset markets continue to be subject to sharp fluctuations, Shareholders may experience losses as the value of the Trust’s investments decline. Even if Shareholders are able to hold their Shares in the Trust for the long-term, their Shares may never generate a profit, since Crypto Asset markets have historically experienced extended periods of flat or declining prices in addition to sharp fluctuations. Over-the-Counter Transactions Some of the markets in which the Trust may execute its transactions are “over-the-counter” or “interdealer” markets. The participants in such markets are typically not subject to credit evaluation and regulatory oversight as are members of “exchange-based” markets. This exposes the Trust to the risk that a counterparty will not settle a transaction in accordance with its terms and conditions because of a dispute over the terms of the contract (whether or not bona fide) or because of a credit or liquidity problem, thus causing the Trust to suffer a loss. Such “counterparty risk” is accentuated for Crypto Assets where the Trust has concentrated its transactions with a single or small group of counterparties. The Trust is not restricted from dealing with any particular counterparty or from concentrating any or all of its transactions with one counterparty. Moreover, the Trust has no internal credit function that evaluates the creditworthiness of its counterparties. The ability of the Trust to transact business with any one or number of counterparties, the lack of any meaningful and independent evaluation of such counterparty’s financial capabilities and the absence of a regulated market to facilitate settlement may increase the potential for losses by the Trust. No FDIC or SIPC Protection The Trust is not a banking institution or otherwise a member of the Federal Deposit Insurance Corporation (“FDIC”) or the Securities Investor Protection Corporation (“SIPC”). Accordingly, deposits or assets held by the Trust are not subject to the protections enjoyed by depositors with FDIC or SIPC member institutions. The Trust’s Crypto Asset custodians do however carry bespoke insurance policies related to the Crypto Assets over which they provide custody. The Trust must adapt to technological change in order to secure and safeguard client accounts. While management believes they have developed an appropriate proprietary security system reasonably designed to safeguard the Trust’s Crypto Assets from theft, loss, destruction, or other issues relating to hackers and technological attack, such assessment is based upon known technology and threats. To the extent that the Trust is unable to identify and mitigate or stop new security threats, the Trust’s Crypto Assets may be subject to theft, loss, destruction, or other attack, which could have a negative impact on the performance of the Trust or result in loss of the Trust’s Crypto Assets. Risks Associated With a Crypto Asset Majority Control Since Crypto Assets are virtual and transactions in such currencies reside on distributed networks, governance of the underlying distributed network could be adversely altered should any individual or group obtain 51% control of the distributed network. Such control could have a significant adverse effect on either the ownership or value of the Crypto Asset. Transaction Authentication As of the date of these financial statements, the transfer of Crypto Assets from one party to another typically relies on an authentication process by an outside party known as a miner or validator. In exchange for compensation, the miner or validator will authenticate the transfer of the currency through the solving of a complex algorithm known as a proof of work, or will vouch for the transfer through other means, such as a proof of stake. Effective transfers of and therefore realization of Crypto Assets, and tokens are dependent on interactions from these miners or validators. In the event that there were a shortage of miners to perform this function, that shortage could have an adverse effect on either the fair value or realization of the Crypto Assets. Other Risks Management continues to evaluate the impact of current or anticipated military conflict, including between Russia and Ukraine, terrorism, sanctions; and other geopolitical events; as well as adverse developments in the economy, the capital markets and the Blockchain markets, including rising energy costs, inflation and interest rates, in the United States and globally; and catastrophic events such as fires, floods, earthquakes, tornadoes, hurricanes, and global health epidemics. Management has concluded that while it is reasonably possible that these events could have a negative effect on the financial performance and operations of the Trust, the specific impact is not readily determinable as of the date of the financial statements. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.

v3.24.1.1.u2

Income Taxes	3 Months Ended
	Mar. 31, 2024
Income Tax Disclosure [Abstract]
Income Taxes	5. Income Taxes The Trust is classified as a partnership for U.S. federal income tax purposes. The Trust does not record a provision for U.S. federal, U.S. state, or local income taxes because the Shareholders report their share of the Trust’s income or loss on their income tax returns. The Trust files an income tax return in the U.S. federal jurisdiction and may file income tax returns in various U.S. states and foreign jurisdictions. The Trust is required to determine whether its tax positions are more likely than not to be sustained on examination by the applicable taxing authority, based on the technical merits of the position. Tax positions not deemed to meet a more likely than not threshold would be recorded as a tax expense in the current year. As of March 31, 2024 and December 31, 2023, the Trust has determined that no provision for income taxes is required and no liability for unrecognized tax benefits has been recorded. The Trust does not expect that its assessment related to unrecognized tax benefits will materially change over the next 12 months. However, the Trust’s conclusions may be subject to review and adjustment at a later date based on factors including, but not limited to, the nexus of income among various tax jurisdictions; compliance with U.S. federal, U.S. state, and tax laws of jurisdictions in which the Trust operates in; and changes in the administrative practices and precedents of the relevant authorities. The Trust is required to analyze all open tax years. Open tax years are those years that are open for examination by the relevant income taxing authority. As of December 31, 2023, the 2022, 2021, and 2020 tax years remain open for examination. There were no examinations in progress at period end.

v3.24.1.1.u2

Shareholders' Equity	3 Months Ended
	Mar. 31, 2024
Equity [Abstract]
Shareholders' Equity	6. Shareholders’ Equity Subscriptions   As of November 18, 2021, the Sponsor to the Trust has closed the acceptance of all subscriptions to the Bitwise 10 Crypto Index Fund, pursuant to its rights under Sections 5 and 6 of the Trust Agreement. In-Kind Subscriptions   The Sponsor may, at its sole discretion, accept Crypto Assets (“In-Kind Investments”) in lieu of, or in addition to, cash as payment for investment in the Trust. Such In-Kind Investments are valued using the same Crypto Asset prices as per the Trust’s valuation policy at any given valuation date as of 4:00 pm ET on the date of the subscription. As of November 18, 2021, the Sponsor to the Trust has closed the acceptance of all subscriptions to the Bitwise 10 Crypto Index Fund, pursuant to its rights under Sections 5 and 6 of the Trust Agreement. Withdrawals   In connection with the Trust seeking approval for the quotation of its Shares on OTCQX, the Trust halted the withdrawal program on October 7, 2020. Allocation of Profits and Losses   Starting May 1, 2020, income or loss was directly allocated to the single remaining Class.

v3.24.1.1.u2

Related Party Transactions	3 Months Ended
	Mar. 31, 2024
Related Party Transactions [Abstract]
Related Party Transactions	7. Related Party Transactions The Trust considers the Sponsor, its directors and employees to be related parties of the Trust. In consideration for the management services to be provided to the Trust, the Sponsor will receive from the Trust a management fee (the “Management Fee”) payable monthly, in arrears at a rate of 2.5% per annum. The Sponsor may, in its discretion, waive, reduce, or rebate the Management Fee with respect to any Shareholder or group of Shareholders (which group may, but need not, include all Shareholders), including affiliates of the Sponsor; provided that such waiver, reduction, or rebate shall not increase the Management Fee payable in respect of any other Shareholder. For the periods January 1, 2024 to March 31, 2024 and January 1, 2023 to March 31, 2023, the Shareholders were charged Management Fees of $5,878,198 and $2,842,302, respectively, of which $2,344,447 and $1,053,102 remained payable as of March 31, 2024 and 2023, respectively. The Sponsor paid all expenses related to the initial offering, organization and start-up of the Trust and will not seek reimbursement for such amounts. The Sponsor is responsible for all ordinary operating expenses of the Trust, including administrative, custody, legal, audit, insurance, and other operating expenses.

v3.24.1.1.u2

Indemnifications	3 Months Ended
	Mar. 31, 2024
Indemnifications Disclosure [Abstract]
Indemnifications	8. Indemnifications In the normal course of business, the Trust enters into contracts and agreements that contain a variety of representations and warranties and which provide general indemnifications. The Trust’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Trust that have not yet occurred. The Trust expects the risk of any future obligation under these indemnifications to be remote.

v3.24.1.1.u2

Financial Highlights	3 Months Ended
	Mar. 31, 2023
Investment Company, Financial Highlights [Abstract]
Financial Highlights	9. Financial Highlights The following presents the financial highlights for the three months ended March 31, 2024 and 2023.         Three months ended March 31, 2024     Three months ended March 31, 2023     Per Share Performance   Investor Class     Investor Class     (for a share outstanding throughout the period)                               Net asset value per share at beginning of period   $ 34.64     $ 15.22                     Net increase (decrease) in Net Assets resulting from operations:               Net realized and change in unrealized gain (loss) on investments (1)     21.13       9.84     Net investment gain (loss) (1)     (0.29 )     (0.14 )   Net increase (decrease) in Net Assets resulting from operations     20.84       9.70                     Net asset value per share at end of period   $ 55.48     $ 24.92                     Total return     60.16   %   63.73   %                 Supplemental Data               Ratios to average net asset value(2)               Expenses     2.51   %   2.51   % Net investment loss     (2.51 ) %   (2.51 ) % Net Assets at end of period   $ 1,122,990,268     $ 504,435,621     Average net assets(3)   $ 938,552,592     $ 453,820,907     Portfolio turnover     0.30   %   0.57   %   Total returns are calculated based on the change in value of a share during the period. The total return and the ratios to average net asset value are calculated for each class as a whole. An individual Shareholder’s return and ratios may vary based on the timing of capital transactions. Ratios have been annualized for the periods ended March 31, 2024 and 2023; total returns and portfolio turnover have not been annualized. (1) Net investment loss per share is calculated by dividing the net investment loss by the average number of shares outstanding during the period. Net realized and change in unrealized gain (loss) on investments is a balancing amount necessary to reconcile the change in net asset value per share with the other per share information. (2) Annualized. (3) Based on the average of month-end net assets.

v3.24.1.1.u2

New Accounting Pronouncements	3 Months Ended
	Mar. 31, 2024
Disclosure Text Block [Abstract]
New Accounting Pronouncements	10. New Accounting Pronouncements On September 6, 2023, the Financial Accounting Standards Board (FASB) approved a proposed accounting standards update (Intangibles – Goodwill and Other – Crypto Assets, ASU Subtopic 350-60) to improve the accounting for, and disclosure of, certain Crypto Assets. The new standard was published on December 13, 2023 and will be effective for fiscal years beginning after December 15, 2024, including interim periods within those fiscal years. The Sponsor is evaluating the potential impact the ASU may have and does not believe there will be any material impact to the Trust’s financial statements.

v3.24.1.1.u2

Subsequent Events	3 Months Ended
	Mar. 31, 2024
Subsequent Events [Abstract]
Subsequent Events	11 Subsequent Events The Sponsor has evaluated subsequent events through May 13, 2024, the date the financial statements were available to be issued, and has determined that there are no material subsequent events that require disclosure.

v3.24.1.1.u2

Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2024
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The financial statements are expressed in U.S. dollars and have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The Trust is an investment company and follows the specialized accounting and reporting guidance in the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC” or “Codification”) Topic 946, Financial Services—Investment Companies. The accompanying comparative financial statements are unaudited, but in the opinion of management of the Sponsor, contain all adjustments (which include normal recurring adjustments) considered necessary to present fairly the financial position of the Trust as of March 31, 2024 and December 31, 2023 and the results of operations for the three months ended March 31, 2024 and 2023. These interim financial statements should be read in conjunction with the Trust’s annual report on Form 10-K for the year ended December 31, 2023. Interim period results are not necessarily indicative of results for a full-year period. Pursuant to the Statement of Cash Flows Topic of the Codification, the Trust qualifies for an exemption from the requirement to provide a statement of cash flows and has elected not to provide a statement of cash flows.
Use of Estimates	Use of Estimates The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates.
Cash	Cash Cash represents cash deposits held at financial institutions and Crypto Asset exchanges. Cash in a bank deposit account, at times, may exceed U.S. federally insured limits. The Trust has not experienced any losses in such accounts and does not believe it is exposed to any significant credit risk on such bank deposits.
Investments and Valuation	Investments and Valuation The Trust’s investments in Crypto Assets are stated at fair value. For a further discussion of the Trust’s calculations of valuation, please see “Calculation of Valuation” in the footnote below. Crypto Assets are generally valued using prices as reported on reputable and liquid exchanges and may utilize an average of bid and ask quotes using closing prices provided by such exchanges as of the date and time of determination ("Calculation of Valuation" below). Factors such as the recent stability of the exchange, current liquidity of the exchange, and recent price activity of an exchange will be considered in the determination of which exchanges to utilize. The time used is 4:00 pm ET which corresponds to 20:00 UTC during Daylight Savings Time and 21:00 UTC during non-Daylight Savings Time. The Sponsor’s Valuation Policy provides a listing of preferred exchanges. While some Crypto Assets are valued based on prices reported in the public markets, other Crypto Assets may be more thinly-traded or subject to irregular trading activity. Determinations on the value of certain Crypto Assets, and how to value such assets as to which limited prices or quotations are available, are based on the Sponsor’s recommendations or instructions.   Crypto Asset transactions are recorded on the trade date. Realized gains and losses from Crypto Asset transactions are determined using the identified cost method. Any change in net unrealized gain or loss is reported in the statement of operations. Commissions and other trading fees are reflected as an adjustment to cost or proceeds at the time of the transaction.   The Trust intermittently receives Airdrops of new Crypto Assets. The use of Airdrops is generally to promote the launch and use of new Crypto Assets by providing a small amount of the new Crypto Assets to the private wallets or exchange accounts of holders of existing related Crypto Assets. Airdropped Crypto Assets can have substantially different Blockchain technology that has no relation to any existing Crypto Asset, and many Airdrops may be without value. The Trust will only record receipt of airdropped Crypto Assets if when received, the airdropped Crypto Assets have value. Crypto Assets received from Airdrops have no cost basis and the Trust recognizes other income equal to the fair value of the new Crypto Asset received. There were no Airdrops recognized or unrecognized during the three month period ended March 31, 2024.
Calculation of Valuation	Calculation of Valuation Effective August 31, 2021, the process that the Sponsor developed for identifying a principal market, as described in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 820-10, which outlines the application of fair value accounting, was to begin by identifying publicly available, well established and reputable Crypto Asset exchanges selected by the Sponsor and its affiliates in their sole discretion, and then calculating, on each valuation period, the highest volume exchange during the 60 minutes prior to 4:00 pm ET for each asset. In evaluating the markets that could be considered principal markets, the Trust considered whether or not the specific markets were accessible to the Trust, either directly or through an intermediary, at the end of each period. Effective February 13, 2023, the Sponsor adapted a nearly identical principal market valuation process, with no material impact to the Trust, using a third-party valuation vendor, Lukka, Inc., to identify publicly available, well established and reputable Crypto Asset exchanges selected by Lukka, Inc. in their sole discretion, including Binance, Bitfinex, Bitflyer, Bitstamp, Coinbase Pro, Crypto.com, Gemini, HitBTC, Huobi, Kraken, KuCoin, OKEx, Poloniex, and then calculating, on each valuation period, the highest volume exchange during the 60 minutes prior to 4:00 pm ET for each asset. In evaluating the markets that could be considered principal markets, the Trust considered whether the specific markets were accessible to the Trust, either directly or through an intermediary, at the end of each period. The following provides an overview of the Principal Market and the Principal Market Prices for Portfolio Crypto Assets that comprised the majority of the Trust’s assets for the three-month period ended March 31, 2024. Crypto Asset   Principal Market Price     Principal Market Bitcoin (BTC)   $ 70,840.97     Coinbase Ethereum (ETH)   $ 3,564.53     Coinbase Solana (SOL)   $ 186.28     Coinbase Ripple (XRP)   $ 0.63     Coinbase Cardano (ADA)   $ 0.65     Coinbase Avalanche (AVAX)   $ 54.62     Coinbase Polkadot (DOT)   $ 9.49     Coinbase Chainlink (LINK)   $ 19.21     Coinbase Polygon (MATIC)   $ 1.00     Coinbase Litecoin (LTC)   $ 93.54     Coinbase

v3.24.1.1.u2

Significant Accounting Policies (Tables)	3 Months Ended
	Mar. 31, 2024
Accounting Policies [Abstract]
Summary of Principal Market and the Principal Market Prices for Portfolio Cryto Assets Comprised Majority of Trust Assets	The following provides an overview of the Principal Market and the Principal Market Prices for Portfolio Crypto Assets that comprised the majority of the Trust’s assets for the three-month period ended March 31, 2024. Crypto Asset   Principal Market Price     Principal Market Bitcoin (BTC)   $ 70,840.97     Coinbase Ethereum (ETH)   $ 3,564.53     Coinbase Solana (SOL)   $ 186.28     Coinbase Ripple (XRP)   $ 0.63     Coinbase Cardano (ADA)   $ 0.65     Coinbase Avalanche (AVAX)   $ 54.62     Coinbase Polkadot (DOT)   $ 9.49     Coinbase Chainlink (LINK)   $ 19.21     Coinbase Polygon (MATIC)   $ 1.00     Coinbase Litecoin (LTC)   $ 93.54     Coinbase

v3.24.1.1.u2

Fair Value Measurements (Tables)	3 Months Ended
	Mar. 31, 2024
Fair Value Disclosures [Abstract]
Summary of Trust's Assets Accounted For At Fair Value	The following summarizes the Trust’s assets accounted for at fair value at March 31, 2024.     Level 1     Level 2     Level 3     Total   Assets                         Investments in Crypto Assets, at fair value   $ 1,125,334,251     $ —     $ —     $ 1,125,334,251     The following summarizes the Trust’s assets accounted for at fair value at December 31, 2023.     Level 1     Level 2     Level 3     Total   Assets                         Investments in Crypto Assets, at fair value   $ 699,798,952     $ —     $ —     $ 699,798,952

v3.24.1.1.u2

Financial Highlights (Tables)	3 Months Ended
	Mar. 31, 2023
Investment Company, Financial Highlights [Abstract]
Summary of Financial Highlights	The following presents the financial highlights for the three months ended March 31, 2024 and 2023.         Three months ended March 31, 2024     Three months ended March 31, 2023     Per Share Performance   Investor Class     Investor Class     (for a share outstanding throughout the period)                               Net asset value per share at beginning of period   $ 34.64     $ 15.22                     Net increase (decrease) in Net Assets resulting from operations:               Net realized and change in unrealized gain (loss) on investments (1)     21.13       9.84     Net investment gain (loss) (1)     (0.29 )     (0.14 )   Net increase (decrease) in Net Assets resulting from operations     20.84       9.70                     Net asset value per share at end of period   $ 55.48     $ 24.92                     Total return     60.16   %   63.73   %                 Supplemental Data               Ratios to average net asset value(2)               Expenses     2.51   %   2.51   % Net investment loss     (2.51 ) %   (2.51 ) % Net Assets at end of period   $ 1,122,990,268     $ 504,435,621     Average net assets(3)   $ 938,552,592     $ 453,820,907     Portfolio turnover     0.30   %   0.57   %   Total returns are calculated based on the change in value of a share during the period. The total return and the ratios to average net asset value are calculated for each class as a whole. An individual Shareholder’s return and ratios may vary based on the timing of capital transactions. Ratios have been annualized for the periods ended March 31, 2024 and 2023; total returns and portfolio turnover have not been annualized. (1) Net investment loss per share is calculated by dividing the net investment loss by the average number of shares outstanding during the period. Net realized and change in unrealized gain (loss) on investments is a balancing amount necessary to reconcile the change in net asset value per share with the other per share information. (2) Annualized. (3) Based on the average of month-end net assets.

v3.24.1.1.u2

Organization - Additional Information (Detail)		3 Months Ended
	Dec. 09, 2020	Mar. 31, 2024
Organization, Consolidation And Presentation Of Financial Statements [Line Items]
Committee for uniform securities identification procedures (CUSIP), number	091749101
Investor Class [Member]
Organization, Consolidation And Presentation Of Financial Statements [Line Items]
Percentage of management fee paid by shareholders		2.50%

v3.24.1.1.u2

Significant Accounting Policies - Summary of Principal Market and the Principal Market Prices for Portfolio Cryto Assets Comprised Majority of Trust Assets (Detail) - Coinbase [Member] - Fair Value Measured at Net Asset Value Per Share [Member]	Mar. 31, 2024 $ / shares
Bitcoin [Member]
Principal Market Price	$ 70,840.97
Ethereum [Member]
Principal Market Price	3,564.53
Solana [Member]
Principal Market Price	186.28
Ripple [Member]
Principal Market Price	0.63
Cardano [Member]
Principal Market Price	0.65
Avalanche [Member]
Principal Market Price	54.62
Polkadot [Member]
Principal Market Price	9.49
Chainlink [Member]
Principal Market Price	19.21
Polygon [Member]
Principal Market Price	1.00
Litecoin [Member]
Principal Market Price	$ 93.54

v3.24.1.1.u2

Significant Accounting Policies - Additional Information (Detail)	3 Months Ended
	Mar. 31, 2024
Accounting Policies [Line Items]
Time used in investment valuation, description	The time used is 4:00 pm ET which corresponds to 20:00 UTC during Daylight Savings Time and 21:00 UTC during non-Daylight Savings Time.

v3.24.1.1.u2

Fair Value Measurements - Summary of Trust's Assets Accounted For at Fair Value (Detail) - USD ($)	Mar. 31, 2024	Dec. 31, 2023
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment owned	$ 1,125,334,251	$ 699,798,952
Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment owned	1,125,334,251	699,798,952
Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment owned
Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment owned

v3.24.1.1.u2

Fair Value Measurements - Additional Information (Detail) - Fair Value, Inputs, Level 1, Level 2, and Level 3 [Member] - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2024	Dec. 31, 2023
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Significant transfers into or out of any levels of the fair value hierarchy	$ 0	$ 0
Fair value, assets, level 1 to level 2 transfers, amount	0	0
Fair value, assets, level 2 to level 1 transfers, amount	$ 0	$ 0

v3.24.1.1.u2

Risks and Uncertainties - Additional Information (Detail) - USD ($)	3 Months Ended
	Mar. 31, 2024	Dec. 31, 2023
Risks And Uncertainties [Line Items]
Crypto assets that resided on exchange	$ 7,753,989	$ 2,770,000
Crypto assets cash resided on exchange	0
Crypto assets cash resided in bank accounts		900
Investment owned	$ 1,125,334,251	699,798,952
Distributed Networks [Member] | Customer Concentration Risk [Member] | Revenue Benchmark [Member]
Risks And Uncertainties [Line Items]
Concentration risk percentage	51.00%
Coinbase Custody Trust Company LLC The Custodian [Member]
Risks And Uncertainties [Line Items]
Investment owned	$ 1,117,580,262	$ 698,528,691

v3.24.1.1.u2

Income Taxes - Additional Information (Detail) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2024	Dec. 31, 2023
Income Tax Disclosure [Abstract]
Provision for income taxes	$ 0	$ 0
Unrecognized tax benefits	$ 0	$ 0
Reporting period	12 months
Tax years remain open for examination	2022 2021 2020

v3.24.1.1.u2

Related Party Transactions - Additional Information (Detail) - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Management fees payable	$ 2,344,447		$ 1,463,687
Sponsor [Member]
Related party transaction, rate	2.50%
Management fees payable	$ 2,344,447	$ 1,053,102
Sponsor [Member] | Investor Class [Member]
Management fee expense	$ 5,878,198	$ 2,842,302

v3.24.1.1.u2

Financial Highlights - Summary of Financial Highlights (Detail) - USD ($)		3 Months Ended
		Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023	Dec. 31, 2022
Ratios to average net asset value
Net assets at end of period		$ 1,122,990,268	$ 504,435,621	$ 701,106,140	$ 308,156,499
Investor Class [Member]
Investment Company, Financial Highlights [Line Items]
Net asset value per share at beginning of period		$ 34.64	$ 15.22
Net increase (decrease) in Net Assets resulting from operations:
Net realized and change in unrealized gain (loss) on investments	[1]	21.13	9.84
Net investment gain (loss)	[1]	(0.29)	(0.14)
Net increase (decrease) in Net Assets resulting from operations		20.84	9.70
Net asset value per share at end of period		$ 55.48	$ 24.92
Total return		60.16%	63.73%
Ratios to average net asset value
Expenses	[2]	2.51%	2.51%
Net investment loss		(2.51%)	(2.51%)
Net assets at end of period		$ 1,122,990,268	$ 504,435,621
Average net assets	[3]	$ 938,552,592	$ 453,820,907
Portfolio turnover		0.30%	0.57%
[1] Net investment loss per share is calculated by dividing the net investment loss by the average number of shares outstanding during the period. Net realized and change in unrealized gain (loss) on investments is a balancing amount necessary to reconcile the change in net asset value per share with the other per share information. [2] Annualized. [3] Based on the average of month-end net assets.

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