10-Q

美國

證券交易委員會

華盛頓特區20549

表格 10-Q

☒ 根據1934年證券交易法第13條或第15(d)條提交的季度報告

截至季度結束 2020年9月30日， 2024

☐ 根據證券交易法1934年第13或第15(d)條款（轉型報告）

過渡期從對

委員會文件號 000-56270

Bitwise 10加密貨幣指數基金

（按其章程規定的確切註冊人名稱）



特拉華州	82-3002349
（註冊或組織的）提起訴訟的州或其他司法管轄區（如適用）組建國的駐地	（IRS僱主唯一識別號碼）

蒙哥馬利街250號,

200號

（主要營業地址，包括郵政編碼）, 加利福尼亞州 94104

（總部地址）（郵編）

(415) 707-3663

(註冊人電話號碼，包括區號)

根據該法案第12(b)節註冊的證券：無



每一類的名稱	交易標誌	在其上註冊的交易所的名稱
None	N/A	N/A

根據《證券法》第12(g)條規定註冊的證券：Bitwise 10加密貨幣指數基金（BITW）股票

請在以下方框內打勾，以指示註冊人是否（1）已在過去12個月內（或在註冊人需要提交此類報告的較短期間內）提交了交易所法案第13或15（d）條規定的所有要求提交的報告，並且（2）在過去90天內一直需要遵守提交要求。 ☑ 否 ☐Yes☒ 不是 ☐

請在以下空格內打勾，表示登記者在過去12個月內（或其他登記者需要提交這些文件的更短期間內）根據規則405條規定遞交了需遞交的所有互動數據文件。Yes☒ 不是 ☐

請勾選標記以說明註冊人是大型快速申報人、加速申報人、非加速申報人、較小的報告公司還是新興成長型公司。請查看《交易所法》第120億.2條中「大型快速申報人」、「加速申報人」、「較小的報告公司」和「新興成長型公司」的定義。


大型加速歸檔人	☐	加速歸檔人	☐

非加速歸檔人	☒	小型報告公司	☐

		新興成長型企業	☒

如果一家新興成長型企業，請打勾表示公司已選擇不使用擴展過渡期以符合根據《交易所法案》第13(a)條所提供的任何新的或修訂財務會計準則。 ☐

請在核取方框內表明公司是否為空殼公司（根據交易所法規120億2號所定義）。是 ☐ 否 ☒

截至2024年11月8日，登記公司普通股的流通股數： 20,241,947



關於前瞻性陳述的聲明	i
詞彙表	iii
新興成長公司狀態	iv
行業板塊及市場數據	v
第一部分-財務信息：	1
項目1.財務報表(未經審計)	1
項目2. 管理層對財務狀況和營運結果的討論與分析。	15
第三項、市場風險之定量化與定性揭露	31
第四項。控制和程序	31
第二部分 - 其他資訊：	32
項目1. 法律訴訟	32
第 2 項。未註冊的股票發行和款項使用	32
第三項。優先證券拖欠。	33
第4項。礦山安全披露。	33
項目5。其他信息。	33
項目6. 附件	33
簽名	34

關於前瞻性聲明的聲明

本表格 10-Q 季度報告包含有關 Bitwise 10 加密指數基金（BITW）（BITW）的財務狀況，營運結果，計劃，目標，未來表現和業務的「前瞻性聲明」信任」)。前面、接著或包括「可能」、「可能」、「會」、「應該」、「期望」、「計劃」、「預期」、「相信」、「估計」、「預測」、「預測」、「潛在」或「繼續」等詞彙，這些術語的負面和其他類似表達式旨在識別某些前瞻性陳述。本季度報告中包含的所有聲明（歷史事實聲明除外），涵蓋未來將或可能發生的活動，事件或發展，包括市場價格和條件的變化、信託運營以及 Bitwise 投資顧問有限責任公司的計劃（以下為」贊助商」) 以及關於信託未來成功和其他類似事項的參考，均為前瞻性聲明。這些陳述只是預測。實際事件或結果可能與此類聲明有重大不同。這些聲明基於贊助商的某些假設，並根據其對歷史趨勢、當前狀況和預期未來發展的認知，以及其他適合情況的因素所做出的分析。然而，實際結果和發展是否符合贊助商的期望和預測，會受到一些風險和不確定性，包括但不限於第 II 部第 1A 項所述的風險和不確定性。風險因素。前瞻性聲明是根據贊助商在發表聲明日期的信念、估計和意見做出，如果這些信仰、估計和意見或其他情況發生變化，信託或贊助商均不負責或承擔責任更新前瞻性聲明（除適用法律規定外）。因此，投資者不要依賴前瞻性聲明。可能對信託的業務、財務狀況或營運結果和未來前景產生重大不利影響，或可能導致實際結果與信託的期望有重大不同的因素包括但不限於：

•

包括比特幣在內的許多加密資產在最近一段時間內經歷了並可能繼續經歷的交易價格的極端波動，這可能會對信託股票的價值產生重大不利影響；

•

由於與區塊鏈技術的能力和發展以及加密資產的基本投資特徵相關的許多因素，加密資產的發展是最近才發展的，以及股票的中長期價值的不確定性；

•

股票的價值取決於對加密資產和區塊鏈技術的接受程度，這是一個快速發展的新行業；

•

區塊鏈技術和加密資產的運營不受監管且缺乏透明度，這可能會對投資組合加密資產和股票的價值產生不利影響；

•

該指數的歷史有限；

•

與 COVID-19 疫情相關的風險，這可能會對信託持股的價值產生負面影響並嚴重干擾其運營；

•

股票交易價格等於、高於或低於信託每股資產淨值的可能性；

•

美國（"美國交易法案交易所）國會或任何美國聯邦或州政府機構的監管變化或行動可能會影響股票價值或限制一個或多個加密資產、挖礦活動或其網絡的操作，或影響投資組合加密資產市場，對股票價值造成不利影響的方式。

•

美國證券交易委員會政策的變化可能會對股票價值產生不利影響;SEC）可能會對股票價值產生不利影響;

•

信託或保薦人可能作爲貨幣服務企業或匯款機構受到監管，這可能會給信託或保薦人帶來額外開支，也可能導致股票的流動性減少；

•

可能使信託或保薦人有義務註冊和遵守新法規的監管變化或解釋，從而可能給信託帶來特別的非經常性支出；

•

在信託的註冊辦事處發送給保薦人的郵件時，可能會出現延遲；

•

信託可能要求信託向監管機構披露信息，包括與投資者有關的信息；

•

保薦人或其關聯公司與信託之間可能出現的潛在利益衝突；

•

保薦人可能終止持續的服務，這可能會對信託造成損害；

•

加密資產投資的累積淨實現收益（損失）

•

第二部分第 1A 項中討論的其他風險因素。風險因素和第一部分，第2項。管理層對本10-Q表季度報告的財務狀況和經營業績的討論和分析，以及我們在未來向美國證券交易委員會提交的報告中不時描述的財務狀況和經營業績。

除非另有規定或上下文另有要求，在本第10-Q表格中，「我們」、「我們的」和「我們」一詞指代代表信託行事的贊助方。

術語簡介

本詞彙表重點介紹了本季度10-Q表格中使用的行業板塊和其他術語，但並非所有在本報告中使用的術語的完整列表。以下每個術語均具有以下所列含義：

“空投空投是通過向支持新加密資產並持有現有相關加密資產的私人錢包或交易所帳戶提供少量新的加密資產來促進新加密資產的推出和使用的一種方法。

“比特幣「」或「」BTC” - 是一種基於比特幣網絡上的開源加密協議存在的加密資產類型，包括信託份額基礎的加密資產類型之一。比特幣網絡的本機加密資產爲比特幣。

“區塊鏈「」意味着加密資產網絡的公共交易分類帳，記錄了交易。

“共識算法” - 意味着在區塊鏈系統核心執行隨時間收斂所有賬本的算法。

“數字貨幣資產“ - 是一種旨在作爲價值儲存或交換媒介的加密資產，其中個人加密資產所有權記錄存儲在分類賬中，即使用加密技術來保護交易記錄、控制額外加密資產的創造並驗證加密資產所有權轉移的計算機化數據庫。

“加密資產網絡「」 - 意指託管公共交易賬本的在線端用戶網絡，即區塊鏈，以及構成加密資產網絡的基礎的源代碼，這些源代碼構成了加密和算法協議的基礎。

“加密資產交易所”表示一個經銷市場、經紀市場、對手市場或交易市場，在這些市場上買賣和交易加密資產。

“保管人“ - 代表Coinbase託管信託公司，LLC。託管人代表信託，持有投資組合加密資產。

“排放量常規獎勵是以加密資產發放的形式提供給持有者的獎勵，通常以支持相關加密資產網絡上交易的"燃料幣"形式出現。

“硬分叉” - 當區塊鏈的規則集發生變化，導致新規則比先前規則更爲嚴格時，就會發生硬分叉。

“指數”表示中的Bitwise 10大盤加密貨幣指數，這是Trust的基準指數。

“指數提供商“- 意指比特指數服務有限責任公司，一個由贊助商的同一母公司控制的信託附屬公司。指數提供商管理該指數。

“礦工。礦工從比特幣愛好者到設計和構建專用挖礦機器和數據中心的專業挖礦操作不等，其中包括挖礦池，即行動協調並將其處理能力組合以挖掘比特幣塊的礦工團體。請參見上文「-創建新的比特幣和供應限制」。” - 指那些幫助處理交易並確保構成工作證明區塊鏈網絡的分佈式分類賬彼此保持一致的利益相關者。

“採礦業「挖礦」是指通過解決計算難題來驗證與加密資產相關的交易，並將其添加到工作證明的區塊鏈數字分類帳中，以交換加密資產作爲獎勵。

“資產淨值「-」表示淨資產價值。

"信託的淨資產價值" - 表示信託的資產和負債總和。

“每股淨資產「NAV」表示信託基金按每股計算的淨資產值。

“加密資產組合” - 意味着由信託持有的一組選定的加密資產。

“股東「Trust」的意思是持有受益權的普通單位的分數化不可分利益。

iii

新興增長型企業地位

Trust作爲《創業公司啓動法案》中所指的「新興成長型公司」，因此可以選擇遵守某些較低的報告要求。只要Trust是一家新興成長型公司，與其他公開公司不同，就不需要：《就業機會法》The Trust is an 「emerging growth company」 as that term is used in the Jumpstart Our Business Startups Act (the 「」) and, as such, may elect to comply with certain reduced reporting requirements. For as long as the Trust is an emerging growth company, unlike other public companies, it will not be required to:

•

按照2002年「薩班斯-奧克斯利法」第404（b）條規定向管理層的財務報告系統提供核數師的評估報告；

•

遵守由公開公司會計監督委員會（"PCAOB"）制定的任何新要求，要求強制核數師輪換或者對核數師報告進行補充，要求核數師提供有關發行人審計和財務報表的額外信息；PCAOB）

•

自2012年4月5日之後，除非證券交易委員會另行確定，否則不遵守PCAOB採用的任何新的審計規則；

•

提供有關大型上市公司要求的高管薪酬的某些披露；或

•

獲得之前未獲得的任何金平頭支付的股東批准。

當信託在其最近完成的財政年度中總年度總毛收入達到12.35億美元或更多；或根據1934年證券交易法規定的120億號2條成爲大型加速文件提交者；或者在3年時間內發行了超過10億美元的非可轉換債務；或IPO五週年紀念日的財政年度的最後一天，信託將停止成爲「新興成長企業」。

此外，《職業機會與創造法案》第107條還規定，新興增長公司可以利用證券法第7(a)(2)(B)條提供的延長過渡期來遵守新的或修訂後的會計準則。換句話說，新興增長公司可以推遲採納某些會計準則，直到那些準則適用於私營公司。Trust選擇不「選擇退出」這種延長過渡期，因此，Trust將利用這種延長過渡期。

行業和市場數據

儘管我們對Form 10-Q季度報告中包含的所有披露負責，但在某些情況下，我們依賴於從我們認爲可靠的第三方來源獲取的某些市場和行業數據。市場估計是通過使用獨立行業出版物與我們關於加密資產行業和市場的假設相結合計算得出的。雖然我們不知道此處呈現的任何市場、行業或類似數據存在任何錯誤陳述，但此類數據涉及風險和不確定性，並受各種因素的影響，包括在「有關前瞻性聲明」標題下討論的因素。

第一部分 - 財務信息：

項目1。基本報表（未經審核）

Bitwise 10加密貨幣指數基金

(原名爲Bitwise 10私人指數基金，有限責任公司)

基本報表

2024 年 9 月 30 日（未經審計）和 2023 年 12 月 31 日

Bitwise 10加密貨幣指數基金



基本報表(未經審計)

財務狀況表	3

投資計劃表	4

損益表	5

淨資產變動表	6

財務報表說明	7

Bitwise 10加密貨幣指數基金

財務狀況表

2024年9月30日（未經審計）和2023年12月31日


資產	2024年9月30日（未經審計）			2023年12月31日
304,203,174和$314,774,926)	$	936,381,809		$	699,798,952
		300,000			2,770,000
現金		766			913
其他		160			263
總資產	$	936,682,735		$	702,570,128

負債
管理費用應付款	$	1,949,963		$	1,463,687
加密資產購買應付		700,000			—
		301			301
總負債		2,650,264			1,463,988
淨資產	$	934,032,471		$	701,106,140

淨資產包括：
實收資本		427,764,344			427,764,344
		(70,109,880	)		(52,232,153	)
		(55,800,628	)		(59,450,077	)
萊特幣		632,178,635			385,024,026
淨資產	$	934,032,471		$	701,106,140
已發行並已流通的股份，no面值 (unlimited 已授權股份)		20,241,947			20,241,947
每股淨資產價值	$	46.14		$	34.64

請查看基本報表附註（未經審計）。

Bitwise 10加密貨幣指數基金

投資計劃表

2024年9月30日（未經審計）


	單位		公允價值			淨資產的百分比
20,241,947
比特幣		10,732.0578	$	681,107,474			72.92		%
以太幣		65,280.5652		169,373,038			18.13
solana		253,396.0153		39,271,314			4.20
		30,453,608.8017		18,960,417			2.03
艾達幣		19,344,814.1951		7,335,554			0.79
Avalanche		222,015.1482		6,200,883			0.66
Chainlink		332,506.4553		3,980,102			0.43
(		10,764.2834		3,669,652			0.39
Polkadot		758,116.6428		3,424,413			0.37
uniswap		410,598.9756		3,058,962			0.33
與加密資產的主導控制有關的風險。 304,203,174)			$	936,381,809			100.25
				(2,349,338	)		(0.25	)
淨資產			$	934,032,471			100.00		%

2023年12月31日


	單位		公允價值		淨資產百分比
按公允價值投資加密資產*
比特幣		10,998.0429	$	462,076,062		65.91	%
以太幣		67,221.7443		154,923,265		22.10
索拉納		239,876.3681		25,143,841		3.59
瑞波幣		30,324,826.6436		18,825,652		2.69
卡爾達諾		19,777,360.7670		11,943,548		1.70
雪崩		195,564.0766		7,859,720		1.12
Polkadot		732,019.7088		6,033,306		0.86
多邊形		5,257,194.4118		5,114,199		0.73
鏈鏈		309,529.3045		4,803,895		0.69
萊特幣		41,303.5713		3,075,464		0.44
按公允價值計算的加密資產投資總額（成本 $314,774,926)			$	699,798,952		99.81
其他超過負債的資產				1,307,188		0.19
淨資產			$	701,106,140		100.00	%

* 加密資產沒有單一的國家或地理區域，因此省略了國家信息。

請查看基本報表附註（未經審計）。

Bitwise 10加密貨幣指數基金

損益表（未經審計）

截至2024年9月30日和2023年9月30日的前三個月和前九個月


	截至9月30日的三個月，						截至9月30日的九個月
	2024 （未經審計）			2023 （未經審計）			2024 （未經審計）			2023 （未經審計）
收入
其他	$	—		$	—		$	—		$	68,436
費用
管理費	$	5,869,017		$	2,927,022		$	17,877,678		$	8,951,566
交易和其他費用		(2	)		—			49			2,203
總費用		5,869,015			2,927,022			17,877,727			8,953,769
$		(5,869,015	)		(2,927,022	)		(17,877,727	)		(8,885,333	)
加密資產的多數控制風險
		2,628,714			(4,074,541	)		3,649,449			(6,234,107	)
		(11,640,352	)		(63,235,155	)		247,154,609			159,787,148
投資方面的實現淨利潤和未實現盈虧變動		(9,011,638	)		(67,309,696	)		250,804,058			153,553,041
在主要執行官和主要財務會計官的監督和參與下，贊助人進行了對信託的信息披露控制和程序的評估，根據交換法規則13a-15(e)的定義。根據這次評估，贊助人的主要執行官和主要財務會計官得出結論，信託的信息披露控制和程序在本報告涵蓋的期末時有效。	$	(14,880,653	)	$	(70,236,718	)	$	232,926,331		$	144,667,708

請查看基本報表附註（未經審計）。

Bitwise 10加密貨幣指數基金

資產淨值變動表（未經審計）

截至2024年9月30日和2023年9月30日的前三個月和前九個月


	截至9月30日的三個月						截至9月30日的九個月
	2024 (未經審計)			2023 (未經審計)			2024 (未經審計)			2023 (未經審計)
(10,205,525
淨投資損益	$	(5,869,015	)	$	(2,927,022	)	$	(17,877,727	)	$	(8,885,333	)
		2,628,714			(4,074,541	)		3,649,449			(6,234,107	)
		(11,640,352	)		(63,235,155	)		247,154,609			159,787,148
經營活動產生的淨資產增減額		(14,880,653	)		(70,236,718	)		232,926,331			144,667,708
資產淨值:
期初餘額		948,913,124			523,060,925			701,106,140			308,156,499
期末	$	934,032,471		$	452,824,207		$	934,032,471		$	452,824,207
股份增減變動：
期初股份總數		20,241,947			20,241,947			20,241,947			20,241,947
111,480		—			—			—			—
		—			—			—			—
期末已發行的股數		20,241,947			20,241,947			20,241,947			20,241,947

請查看基本報表附註（未經審計）。

Bitwise 10加密貨幣指數基金

比較財務報表附註（未經審計）

1. 組織

Bitwise 10加密指數基金（以下簡稱「Trust」）是一家特拉華法定信託，於2017年11月22日開始運營。信託的名稱於2018年9月24日從「Bitwise Hold 10私人指數基金有限責任公司」更改，於2020年5月1日再次更名爲「Bitwise 10私人指數基金有限責任公司」，同時也從特拉華有限責任公司轉爲特拉華法定信託。Bitwise投資顧問有限責任公司是該信託的贊助商和投資顧問。Bitwise資產管理公司是贊助商的關聯公司，在該信託轉爲特拉華法定信託之前擔任管理者。特拉華信託公司是該信託的受託人，美國股票轉讓trust公司是該信託的轉讓代理。

$091749101.

2.5每年管理費爲%的管理費，並被稱爲投資者類別。根據2020年5月1日簽署的轉換協議和計劃，該信託從特拉華有限責任公司轉爲特拉華法定信託。

Bitwise 10加密貨幣指數基金

2。重要會計政策

演示基礎

財務報表以美元列報，是根據美利堅合衆國普遍接受的會計原則編制的（”美國公認會計原則”）。該信託是一家投資公司，遵循財務會計準則委員會的專業會計和報告指導（”FASB”) 會計準則編纂 (”ASC” 或”編纂”）主題946，金融服務—投資公司。

隨附的比較財務報表未經審計，但保薦人管理層認爲，這些調整包含爲公允列報信託截至2024年9月30日和2023年12月31日的財務狀況以及截至2024年9月30日和2023年9月30日的三個月和九個月的經營業績而認爲必要的所有調整（包括正常的經常性調整）。這些中期財務報表應與信託截至2023年12月31日止年度的10-k表年度報告一起閱讀。中期業績不一定代表全年業績。

根據編纂的現金流量表主題，該信託有資格獲得提供現金流量表要求的豁免，並選擇不提供現金流量表。

估算值的使用

根據美國公認會計原則編制財務報表要求管理層做出估算和假設，這些估計和假設會影響財務報表日報告的資產負債金額和或有資產負債的披露以及報告期內報告的收入和支出金額。實際結果可能與這些估計有所不同。

現金

現金是指在金融機構和加密資產交易所持有的現金存款。銀行存款帳戶中的現金有時可能超過美國聯邦保險限額。信託基金在這些帳戶中沒有遭受任何損失，也不認爲此類銀行存款面臨任何重大信用風險。

投資與估值

信託對加密資產的投資按公允價值列報。有關信託估值計算的進一步討論，請參閱下文腳註中的「估值計算」。加密資產通常使用信譽良好的流動性交易所報告的價格進行估值，並可能使用這些交易所提供的截至確定日期和時間的收盤價（「估值計算」，見下文「估值計算」）的平均買入和賣出報價。在決定使用哪些交易所時，將考慮諸如交易所最近的穩定性、交易所當前的流動性以及交易所最近的價格活動等因素。使用的時間是美國東部時間下午 4:00，對應於夏令時的 20:00 UTC 和非夏令時的 21:00 UTC。保薦人的估值政策提供了優先交易所的清單。雖然一些加密資產是根據公開市場報告的價格估值的，但其他加密資產的交易量可能更少或受到不定期交易活動的影響。對某些加密資產的價值的確定，以及如何對此類資產進行估值，以提供有限的價格或報價，是基於贊助商的建議或指示。

加密資產交易在交易日記錄。加密資產交易的已實現收益和虧損是使用已確定的成本法確定的。未實現淨收益或虧損的任何變動均在運營報表中報告。佣金和其他交易費用反映在交易時對成本或收益的調整。

信託基金間歇性地收到新的加密資產的空投。空投的使用通常是通過向現有相關加密資產持有者的私人錢包或交易帳戶提供少量的新加密資產來促進新加密資產的推出和使用。空投的加密資產可能採用與任何現有加密資產無關的區塊鏈技術，而且許多空投可能沒有價值。只有當空投的加密資產在收到時有價值時，信託才會記錄空投的加密資產的收據。通過空投獲得的加密資產沒有成本基礎，信託基金確認其他收入等於收到的新加密資產的公允價值。

Bitwise 10加密貨幣指數基金

0.013 0.00 68,436 資產淨增加到trust。在2023年4月18日，trust出售了FLR並籌得美元，給trust造成了輕微虧損。這筆美元被用於購買trust投資組合中的其他資產，因爲FLR不是trust指數的一部分。這次空投的影響可以在其他收入和加密資產的淨實現盈虧中看到。

贊助商爲確定主要市場（"標的市場"）而開發的流程，如FASb ASC 820-10所述，概述了公平價值會計的應用，首先是通過確定由贊助商及其關聯方自行決定的公開可獲取、知名且聲譽良好的加密資產交易所，包括但不限於Binance、Bitfinex、Bitflyer、Bitstamp、看好、Coinbase、Crypto.com、Gate.io、Gemini、HitBTC、火幣積分、itBit、Kraken、KuCoin、LMAX、MEXC Global、OKX和Poloniex，然後在每個估值週期內計算在每個資產的4:00 pm Et前60分鐘內成交量最高的交易所（"主要市場）在評估可能被視爲主要市場的市場時，信託考慮了特定市場在每個期間末是否對信託可獲得，無論是直接還是通過中介。

以下概述了在結束的九個月期間組成信託大部分資產的Portfolio Crypto資產的主要市場和主要市場價格。 2024年9月30日。


	主要市場價格		負責人市場
比特幣（BTC）	$	63,464.76	Coinbase
以太幣（ETH）	$	2,594.54	Crypto.com
Solana（SOL）	$	154.98	Coinbase
	$	0.62	Coinbase
Cardano (ADA)	$	0.38	Coinbase
雪崩（AVAX）	$	27.93	Coinbase
chainlink (LINK)	$	11.97	Coinbase
比特幣現金（BCH）	$	340.91	Coinbase
波卡幣（DOT）	$	4.52	Coinbase
+20.16%	$	7.45	Coinbase

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.

Bitwise 10 Crypto Index Fund

Notes to Comparative Financial Statements (unaudited)

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 September 30, 2024.


	Level 1		Level 2		Level 3		Total
Assets
Investments in Crypto Assets, at fair value	$	936,381,809	$	—	$	—	$	936,381,809

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

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 September 30, 2024, the Trust had a $400,000 net payable from Crypto Assets purchased and no Crypto Assets or cash resided on exchanges. At December 31, 2023, the Trust had a $2,770,000 receivable from Crypto Assets sold and Crypto Assets of approximately $1,270,260 resided on exchanges.

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 September 30, 2024 and December 31, 2023, Crypto Assets of $936,381,809 and $698,528,691 were held by the Custodian, respectively.

Bitwise 10 Crypto Index Fund

Notes to Comparative Financial Statements (unaudited)

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

Bitwise 10 Crypto Index Fund

Notes to Comparative Financial Statements (unaudited)

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.

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 September 30, 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 September 30, 2024, the 2023, 2022, and 2021 tax years remain open for examination. There were no examinations in progress at period end.

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.

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.

Bitwise 10 Crypto Index Fund

Notes to Comparative Financial Statements (unaudited)

For the periods January 1, 2024 to September 30, 2024 and January 1, 2023 to September 30, 2023, the Shareholders were charged Management Fees of $17,877,678 and $8,951,566, respectively, of which $1,949,963 and $945,353 remained payable as of September 30, 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.

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.

9. Financial Highlights

The following presents the financial highlights for the three and nine months ended September 30, 2024 and 2023.


	Three months ended September 30, 2024				Three months ended September 30, 2023				Nine months ended September, 30, 2024				Nine months ended September, 30, 2023
Per Share Performance	Investor Class				Investor Class				Investor Class				Investor Class
(for a share outstanding throughout the period)

Net asset value per share at beginning of period	$	46.88			$	25.84			$	34.64			$	15.22

Net increase (decrease) in Net Assets resulting from operations:
Net realized and change in unrealized gain (loss) on investments (1)		(0.45	)			(3.33	)			12.38				7.59
Net investment gain (loss) (1)		(0.29	)			(0.14	)			(0.88	)			(0.44	)
Net increase (decrease) in Net Assets resulting from operations		(0.74	)			(3.47	)			11.50				7.15

Net asset value per share at end of period	$	46.14			$	22.37			$	46.14			$	22.37

Total return		(1.58	)	%		(13.43	)	%		33.20		%		46.98		%

Supplemental Data
Ratios to average net asset value(2)
Expenses		2.51		%		2.51		%		2.51		%		2.51		%
Net investment loss		(2.51	)	%		(2.51	)	%		(2.51	)	%		(2.49	)	%
Net Assets at end of period	$	934,032,471			$	452,824,207			$	934,032,471			$	452,824,207
Average net assets(3)	$	937,086,300			$	467,348,360			$	951,489,736			$	476,422,390
Portfolio turnover		0.82		%		4.73		%		2.90		%		6.21		%

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 September 30, 2024 and 2023; total returns and portfolio turnover have not been annualized.

Bitwise 10 Crypto Index Fund

Notes to Comparative Financial Statements (unaudited)

(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.

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.

11. Subsequent Events

The Sponsor has evaluated subsequent events through the date the financial statements were issued, and has determined that there are no subsequent events that require disclosure.

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 Form 10-Q, which have been prepared in accordance with U.S. GAAP. The following discussion may contain forward-looking statements based on current expectations that involve risks and uncertainties. Our actual results could differ materially from those discussed in these forward-looking statements as a result of various factors, including those set forth under “Part II. Item 1A. Risk Factors,” “Statement Regarding Forward-Looking Statements” or in other sections of this Form 10-Q.

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 of Bitwise 10 Crypto Index Fund (the "Trust Agreement"), and the Custodian Agreement with the Custodian (the “Custodian Agreement").

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 September 30, 2024, there was a correlation of 99.99% 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 for the period December 10, 2020 to September 30, 2024.

From December 10, 2020 to September 30, 2024, the Shares of BITW traded at an average discount of 16.57%, based on closing prices at 4:00 pm ET, and estimated, unaudited, NAV Per Share. 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 since inception to the period ended September 30, 2024.

Results of Operations

Financial Information for the Three and Nine Months ended September 30, 2024 and 2023

The following table sets forth statements of operations data for the three and nine months ended September 30, 2024 and 2023.

Statement of Operations (Unaudited)


	Three months ended September 30,						Nine months ended September 30,
	2024 (unaudited)			2023 (unaudited)			2024 (unaudited)			2023 (unaudited)
Income
Other	$	—		$	—		$	—		$	68,436
Expenses
Management fee	$	5,869,017		$	2,927,022		$	17,877,678		$	8,951,566
Transaction and other fees		(2	)		—			49			2,203
Total Expenses		5,869,015			2,927,022			17,877,727			8,953,769
Net Investment gain (loss)		(5,869,015	)		(2,927,022	)		(17,877,727	)		(8,885,333	)
Net realized and change in unrealized gain (loss) on investments
Net realized gain (loss) from Crypto Assets		2,628,714			(4,074,541	)		3,649,449			(6,234,107	)
Net change in unrealized appreciation (depreciation) from Crypto Assets		(11,640,352	)		(63,235,155	)		247,154,609			159,787,148
Net realized and change in unrealized gain (loss) on investments		(9,011,638	)		(67,309,696	)		250,804,058			153,553,041
Net increase (decrease) in Net Assets resulting from operations	$	(14,880,653	)	$	(70,236,718	)	$	232,926,331		$	144,667,708

Comparison of the three-month periods ended September 30, 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

September 30, 2024 were $5,869,017 compared to management fees for the three months ended September 30, 2023 of $2,927,022. These changes were due to an increase in the Trust’s net asset value due to an increase in the value of the Portfolio Crypto Assets held by the Trust as a result of the fair market value of the Assets (see “Schedules of Investments” below).

Net realized gain (loss) from Crypto Assets

Net realized gain from Crypto Assets for the three months ended September 30, 2024 was $2,628,714 compared to net realized loss from Crypto Assets for the three months ended September 30, 2023 of $4,074,541. These changes were due to fluctuations in the value of the Portfolio Crypto Assets.

For the three-month period ended September 30, 2024, the Trust recorded net realized gains from sales of Bitcoin and Ethereum of approximately $2,662,860 and $1,616,962, 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 September 30, 2023, the Trust recorded net realized gains from sales of Ethereum and net realized losses from the sales of Bitcoin of approximately $2,011,208 and $1,896,151, 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 depreciation from Crypto Assets for the three months ended September 30, 2024 was $11,640,352 compared to net change in unrealized depreciation from Crypto Assets for three months ended September 30, 2023 of $63,235,155. The primary factor for the change was related to a decrease in the fair value of the Portfolio Crypto Assets held by the Trust (see “Schedules of Investments” below).

For the three-month period ended September 30, 2024 the Trust recorded net unrealized depreciation from Crypto Assets of Ethereum and net unrealized appreciation of Bitcoin of approximately $52,844,634 and $34,989,433, respectively, among the unrealized gains and losses in smaller amounts of other Portfolio Crypto Assets.

For the three-month period ended September 30, 2023 the Trust recorded net unrealized depreciation from Crypto Assets of Bitcoin and Ethereum of approximately $37,209,814 and $20,275,467, respectively, among the unrealized gains and losses in smaller amounts of other Portfolio Crypto Assets.

Net increase (decrease) in net assets resulting from operations

For the three-month period ended September 30, 2024, the Trust recorded a net decrease in net assets resulting from operations of $14,880,653, compared to a net decrease in net assets resulting from operations of $70,236,718 for the three-month period ended September 30, 2023. The primary factor that impacted 2024 net decrease in net assets resulting from operations compared to 2023 net decrease in net assets resulting from operations was a decrease in net realized loss and change in unrealized gain on investments with a net loss of $11,640,352 in 2024 compared to a net loss of $63,235,155 in 2023. The primary factor for the change was an increase in the value of the Portfolio Crypto Assets held by the Trust as a result of the fair market value of the Assets (see “Schedules of Investments” below).

Comparison of the nine-month periods ended September 30, 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 nine months ended September 30, 2024 were $17,877,678 compared to management fees for the nine months ended September 30, 2023 of $8,951,566. These changes were due to an increase in the Trust’s net asset value due to an increase in the value of the Portfolio Crypto Assets held by the Trust as a result of the fair market value of the Assets (see “Schedules of Investments” below).

Net realized gain (loss) from Crypto Assets

Net realized gain from Crypto Assets for the nine months ended September 30, 2024 was $3,649,449 compared to net realized loss from Crypto Assets for the nine months ended September 30, 2023 of $6,234,107. These changes were due to fluctuations in the value of the Portfolio Crypto Assets.

For the nine-month period ended September 30, 2024, the Trust recorded net realized gains from sales of Bitcoin and Ethereum of $7,170,856 and $4,555,266, 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 nine-month period ended September 30, 2023, the Trust recorded net realized losses from sales of Bitcoin and Solana of $2,826,800 and $1,859,900, 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 nine months ended September 30, 2024 was $247,154,609 compared to net change in unrealized appreciation from Crypto Assets for nine months ended September 30, 2023 of $159,787,148. 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 nine-month period ended September 30, 2024 the Trust recorded net unrealized appreciation from Crypto Assets of Bitcoin and Ethereum of $227,455,583 and $16,698,007, respectively, among the unrealized gains and losses in smaller amounts of other Portfolio Crypto Assets.

For the nine-month period ended September 30, 2023 the Trust recorded net unrealized appreciation from Crypto Assets of Bitcoin and Ethereum of $126,270,500 and $32,795,900, respectively, among the unrealized gains and losses in smaller amounts of other Portfolio Crypto Assets.

Net increase (decrease) in net assets resulting from operations

For the nine-month period ended September 30, 2024, the Trust recorded a net increase in net assets resulting from operations of $232,926,331, compared to a net increase in net assets resulting from operations of $144,667,708 for the nine-month period ended September 30, 2023. The primary factor that impacted 2024 net increase in net assets resulting from operations compared to 2023 net increase in net assets resulting from operations was a decrease in net realized loss and an increase in the change in unrealized gain on investments with a net gain of $250,804,058 in 2024 compared to a net gain of $153,533,041 in 2023. The primary factor for the change was an increase in the value of the Portfolio Crypto Assets held by the Trust as a result of the fair market value of the Assets (see “Schedules of Investments” below).

Management Fee

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 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

subscriptions to the Bitwise 10 Crypto Index Fund. There were no shareholder subscriptions during the quarter ended September 30, 2024.

Liquidity and Capital Resources

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 under the heading “Management Fee” 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. See Part I, Item 2 under the heading “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Management Fee” for additional discussion of the Trust’s fees and expenses.

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 nine months ended September 30, 2024 compared to the nine months ended September 30, 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 September 30, 2024 was due primarily to an increase in the value of the Portfolio Crypto Assets and to a lesser extent, by the sale of various Portfolio Crypto Assets to pay the Management Fee.

Shareholder Subscriptions and Redemptions

During the period from January 1, 2024 to September 30, 2024, there were no subscriptions or redemptions of Shares. There were 20,241,947 Shares outstanding as of September 30, 2024.

Schedules of Investments

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

Nine Months Ended September 30, 2024 and the Twelve Months Ended December 31, 2023


	Bitcoin (BTC)
	Units			Fair Value
Balance at January 1, 2024		10,998.0429		$	462,076,062
Purchases		3.7833			247,000
Sales		(269.7684	)		(15,842,027	)
Net realized gain (loss) on investment		—			7,170,856
Net change in unrealized appreciation (depreciation) on investment		—			227,455,583
Balance at September 30, 2024		10,732.0578		$	681,107,474

	Ethereum (ETH)
	Units			Fair Value
Balance at January 1, 2024		67,221.7443		$	154,923,265
Purchases		757.8431			2,329,002
Sales		(2,699.0222	)		(9,132,502	)
Net realized gain (loss) on investment		—			4,555,266
Net change in unrealized appreciation (depreciation) on investment		—			16,698,007
Balance at September 30, 2024		65,280.5652		$	169,373,038

	Solana (SOL)
	Units			Fair Value
Balance at January 1, 2024		239,876.3681		$	25,143,841
Purchases		20,299.1894			2,699,000
Sales		(6,779.5422	)		(1,013,971	)
Net realized gain (loss) on investment		—			82,082
Net change in unrealized appreciation (depreciation) on investment		—			12,360,362
Balance at September 30, 2024		253,396.0153		$	39,271,314

	Ripple (XRP)
	Units			Fair Value
Balance at January 1, 2024		30,324,826.6436		$	18,825,652
Purchases		1,012,046.0855			587,421
Sales		(883,263.9274	)		(429,568	)
Net realized gain (loss) on investment		—			(206,381	)
Net change in unrealized appreciation (depreciation) on investment		—			183,293
Balance at September 30, 2024		30,453,608.8017		$	18,960,417

	Cardano (ADA)
	Units			Fair Value
Balance at January 1, 2024		19,777,360.7670		$	11,943,548
Purchases		188,505.7754			98,966
Sales		(621,052.3473	)		(341,700	)
Net realized gain (loss) on investment		—			(490,572	)
Net change in unrealized appreciation (depreciation) on investment		—			(3,874,688	)
Balance at September 30, 2024		19,344,814.1951		$	7,335,554

	Avalanche (AVAX)
	Units			Fair Value
Balance at January 1, 2024		195,564.0766		$	7,859,720
Purchases		32,862.8089			1,186,404
Sales		(6,411.7373	)		(226,840	)
Net realized gain (loss) on investment		—			(38,786	)
Net change in unrealized appreciation (depreciation) on investment		—			(2,579,615	)
Balance at September 30, 2024		222,015.1482		$	6,200,883


	Polkadot (DOT)
	Units			Fair Value
Balance at January 1, 2024		732,019.7088		$	6,033,306
Purchases		34,120.0748			257,943
Sales		(8,023.1408	)		(51,946	)
Net realized gain (loss) on investment		—			(104,104	)
Net change in unrealized appreciation (depreciation) on investment		—			(2,710,786	)
Balance at September 30, 2024		758,116.6428		$	3,424,413

	Chainlink (LINK)
	Units			Fair Value
Balance at January 1, 2024		309,529.3045		$	4,803,895
Purchases		40,183.2772			638,997
Sales		(17,206.1264	)		(231,737	)
Net realized gain (loss) on investment		—			(90,437	)
Net change in unrealized appreciation (depreciation) on investment		—			(1,140,616	)
Balance at September 30, 2024		332,506.4553		$	3,980,102

	Bitcoin Cash (BCH)
	Units			Fair Value
Balance at January 1, 2024		—		$	—
Purchases		13,405.6864			5,655,500
Sales		(2,641.4030	)		(1,034,580	)
Net realized gain (loss) on investment		—			(102,078	)
Net change in unrealized appreciation (depreciation) on investment		—			(849,190	)
Balance at September 30, 2024		10,764.2834		$	3,669,652

	Uniswap (UNI)
	Units			Fair Value
Balance at January 1, 2024		—		$	—
Purchases		828,677.0697			9,173,913
Sales		(418,078.0941	)		(2,843,781	)
Net realized gain (loss) on investment		—			(2,542,999	)
Net change in unrealized appreciation (depreciation) on investment		—			(728,171	)
Balance at September 30, 2024		410,598.9756		$	3,058,962

	Polygon (MATIC)
	Units			Fair Value
Balance at January 1, 2024		5,257,194.4118		$	5,114,199
Purchases		236,114.1349			229,000
Sales		(5,493,308.5467	)		(3,797,244	)
Net realized gain (loss) on investment		—			(4,686,742	)
Net change in unrealized appreciation (depreciation) on investment		—			3,140,787
Balance at September 30, 2024		—		$	—

	Litecoin (LTC)
	Units			Fair Value
Balance at January 1, 2024		41,303.5713		$	3,075,464
Purchases		193.7882			13,000
Sales		(41,497.3595	)		(3,876,820	)
Net realized gain (loss) on investment		—			1,588,611
Net change in unrealized appreciation (depreciation) on investment		—			(800,255	)
Balance at September 30, 2024		—		$	—


	NEAR Protocol (NEAR)
	Units			Fair Value
Balance at January 1, 2024		—		$	—
Purchases		607,602.0006			4,450,000
Sales		(607,602.0006	)		(2,964,735	)
Net realized gain (loss) on investment		—			(1,485,265	)
Net change in unrealized appreciation (depreciation) on investment		—			—
Balance at September 30, 2024		—		$	—

As of September 30, 2024, Bitcoin represented 72.74% of the total Portfolio Crypto Assets held by the Trust, and Ethereum represented 18.09%, while the remaining 9.17% of the Portfolio Crypto Assets were comprised of Solana, Ripple, Cardano, Avalanche, Chainlink, Bitcoin Cash, Polkadot, and Uniswap.


	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



	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		—		$	—



	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 and Estimates

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. There were no material estimates involving a significant level of estimation uncertainty that had or are reasonably likely to have had a material impact on the Trust’s financial condition used in the preparation of the financial statements. In addition, please refer to Note 2 to the Financial Statements included in this Quarterly Report for further discussion of the Trust’s accounting policies.

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

The process that the Sponsor developed for identifying a principal market (the "Principal Market"), as described in FASB 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, including, but not limited to, Binance, Bitfinex, Bitflyer, Bitstamp, Bullish, Coinbase, Crypto.com, Gate.io, Gemini, HitBTC, Huobi, itBit, Kraken, KuCoin, LMAX, MEXC Global, OKX and 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 (the "Principal Market Price"). 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.

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 six month period ended September 30, 2024.


Crypto Asset	Principal Market Price		Principal Market
Bitcoin (BTC)	$	63,464.76	Coinbase
Ethereum (ETH)	$	2,594.54	Crypto.com
Solana (SOL)	$	154.98	Coinbase
Ripple (XRP)	$	0.62	Coinbase
Cardano (ADA)	$	0.38	Coinbase
Avalanche (AVAX)	$	27.93	Coinbase
Chainlink (LINK)	$	11.97	Coinbase
Bitcoin Cash (BCH)	$	340.91	Coinbase
Polkadot (DOT)	$	4.52	Coinbase
Uniswap (UNI)	$	7.45	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 3 – Valuations based on inputs that are unobservable and significant to the overall fair value measurement.

The following summarizes the Trust’s assets accounted for at fair value at September 30, 2024.


	Level 1		Level 2		Level 3		Total
Assets
Investments in Crypto Assets, at fair value	$	936,381,809	$	—	$	—	$	936,381,809

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 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 September 30, 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.

During the three months ended June 30, 2023, the Trust was eligible for a Flare (FLR) airdrop. The airdrop was based on the Trust’s XRP holding in its custody vault as of December 12, 2020. The Trust elected to participate in the airdrop and on April 17th, 2023, Other income resulting from the airdrop was booked into the Trust's assets. At the time of the airdrop, the result was a positive NAV increase of 0.013% bps, less than $0.00 NAV increase and $68,436 net asset increase to the Trust. On April 18th, 2023, the Trust sold the FLR and raised USD resulting in a minor loss to the Trust. The USD was used to purchase other assets in the Trust’s portfolio, since FLR wasn’t part of the Index of the Trust. The impact of this airdrop can be seen within the Statement of Operations under Other income and Net realized gain (loss) from Crypto Assets.

There were no Airdrops recognized or not recognized during the period ended September 30, 2024, the fiscal year ended December 31, 2022, or the fiscal year ended December 31, 2021.

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.

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 September 30, 2024, the Trust had a $400,000 net payable from Crypto Assets purchased and no Crypto Assets or cash resided on exchanges. At December 31, 2023, the Trust had a $2,770,000 receivable from Crypto Assets sold and Crypto Assets of approximately $1,270,260 resided on exchanges.

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 September 30, 2024 and December 31, 2023, Crypto Assets of approximately $936,381,800 and $698,528,691 were held by the Custodian, respectively.

Crypto Asset Trading is Volatile and Speculative

Over-the-Counter Transactions

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

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.

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

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 performing functions equivalent to those a principal executive officer and principal financial and accounting officer of the Trust would perform if the Trust had any officers, 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.

There are inherent limitations to the effectiveness of any system of disclosure controls and procedures, including the possibility of human error and the circumvention or overriding of the controls and procedures.

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

The following risk factor is being provided to supplement and update the risk factors set forth in Part I, Item 1A, “Risk Factors” of our 2023 Annual Report.

A determination that any of the Portfolio Crypto Assets are a “security” may adversely affect the value of the Portfolio Crypto Assets and the value of the Shares, and result in potentially extraordinary, nonrecurring expenses to, or termination of, the Trust.

The SEC has stated that certain Crypto Assets may be considered “securities” under the federal securities laws. For example, on December 22, 2020, the SEC instituted proceedings to enjoin Ripple Labs Inc., the creator of XRP, on the basis that the offer and sale of XRP was an unregistered, ongoing offering of securities in violation of Sections 5(a) and 5(c) of the Securities Act. If any of the Portfolio Crypto Assets are determined to be a “security” under federal or state securities laws by the SEC or any other agency, or in a proceeding in a court of law or otherwise, it may have material adverse consequences for the Portfolio Crypto Assets, the Sponsor, the Trust, and the Shares. It may, for example, become more difficult for the Portfolio Crypto Assets to be traded, cleared and custodied as compared to other Crypto Assets that are not considered to be securities, which could in turn negatively affect the liquidity and general acceptance of the Portfolio Crypto Assets and cause users to migrate to other Crypto Assets. Further, if other Crypto Assets are determined to be “securities” under federal or state securities laws by the SEC or any other agency, or in a proceeding in a court of law or otherwise, it may have material adverse consequences for the Portfolio Crypto Assets due to negative publicity or a decline in the general acceptance of Crypto Assets. As such, any determination that the Portfolio Crypto Assets or any other Crypto Asset is a security under federal or state securities laws may adversely affect the value of the Portfolio Crypto Assets and, as a result, the value of the Shares.

While the Committee engages in a limited risk-based assessment of Crypto Assets when determining which Crypto Assets to include in the Index, such assessment does not preclude legal or regulatory action based on the presence of a security. Such risk-based assessment includes an evaluation of: 1) public information to determine if the SEC, any other US regulatory agency or any court has made any statements regarding the Crypto Asset, 2) public information regarding how the Crypto Asset markets view the Crypto Asset, including whether the Crypto Asset has been listed on entities such as Coinbase or other US exchanges that would have had access to a reasonable amount of information when making their determinations to list the Crypto Asset, 3) public information to undertake reasonable diligence into the structure and technology of the Crypto Asset, including reviewing the Crypto Asset’s whitepaper if available and speaking with the sponsor of the Crypto Asset, and 4) any other information gained from reputable sources that may impact the Committee’s view of the Crypto Asset. The Committee does not engage in legal analysis of any Crypto Assets or perform any analysis of Crypto Assets based upon any legal standards.

Since the Trust’s principal investment objective is to invest in a portfolio of Crypto Assets that tracks the Index as closely as possible, the Trust relies on the Index Methodology when the Trust determines which Crypto Assets it should invest in. The Trust, in the Sponsor’s sole discretion, may choose to immediately liquidate its position in any Portfolio Crypto Asset that it determines may be at undue risk of being in violation of U.S. federal securities laws or based on consideration of new public information available regarding the asset. The Sponsor makes its determination using the same process as the Committee, as set forth in “Item 1. Business-Eligibility of Crypto Assets.” Assets will lose eligibility and be removed from the Index at the next monthly reconstitution event if they violate any of the listed Eligibility Requirements for 30-consecutive days. Under extraordinary circumstances, assets may lose eligibility and be removed on a same-day basis by a unanimous vote of the quorum of members of the Committee. Such emergency removals will take place at 4:00 pm ET following the conclusion of the meeting and public posting of that notice on the Sponsor’s website.

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

None.

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

3.1	Trust Agreement of Bitwise 10 Crypto Index Fund, by and among Bitwise Investment Advisers, LLC, Delaware Trust Company and the Shareholders from time to time thereunder (incorporated by reference to Exhibit 4.1 of the Trust’s Annual Report on Form 10-K filed with the SEC on March 1, 2024).

3.2	Certificate of Trust (incorporated by reference to Exhibit 4.2 of the Trust’s Annual Report on Form 10-K filed with the SEC on March 1, 2024).

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 September 30, 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 September 30, 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 September 30, 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 September 30, 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 in the capacities indicated 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: November 8, 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.