The Bitwise Ethereum ETF, which commenced operations on July 22, 2024, reported its financial performance for the period ending September 30, 2024. As of this date, the Trust held total assets of $259.9 million, all of which are invested in ether. The fair value of the ether investment was $259.9 million, down from a cost basis of $328.1 million, reflecting a net realized and unrealized loss of approximately $69.4 million for the period.
The Trust's net assets remained stable at $259.9 million, with a net asset value (NAV) per share of $18.61, a decrease from the initial NAV of $25.00 at the start of operations. This represents a total return of -25.56% for the period. The decline in NAV was primarily attributed to the depreciation of ether's price, which fell from $3,484.67 per ether at the start of operations to $2,591.07 by September 30, 2024.
During the reporting period, the Trust experienced a net increase in net assets from capital share transactions amounting to $329.2 million, which offset the operational losses. The Trust issued a total of 13.96 million shares, with 13 Baskets (130,000 shares) redeemed during the period. The cash flow from operating activities was negative at $(329.2 million), while financing activities provided a corresponding positive cash flow.
The Trust's investment strategy focuses solely on ether, and it is classified as a grantor trust for U.S. federal income tax purposes, meaning it is not subject to federal income tax. The Sponsor, Bitwise Investment Advisers, LLC, is responsible for normal operating expenses, capped at $500,000 per annum for legal fees, which are waived on the first $500 million of Trust assets until January 22, 2025.
The Trust's financial statements are prepared in accordance with U.S. GAAP, utilizing fair value accounting for its investments. As of September 30, 2024, the Trust had no material changes in its internal controls or legal proceedings reported. The Trust's shares are listed on NYSE Arca under the ticker symbol "ETHW," and it aims to provide shareholders with exposure to the value of ether, net of operational expenses.
About Bitwise Ethereum ETF
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