N-CSRS
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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT

INVESTMENT COMPANIES

Investment Company Act file number:  811-23801    

Bitwise Funds Trust 

(Exact name of registrant as specified in charter)

250 Montgomery Street, Suite 200

San Francisco, California 94104  

(Address of principal executive offices) (Zip code)

Delaware Trust Company

251 Little Falls Drive

Wilmington, New Castle County, Delaware 19808 

(Name and address of agent for service)

Copies of Communications to

Richard J. Coyle, Esq.

Chapman and Cutler, LLP

320 South Canal Street

Chicago, Illinois 60606

Katherine Dowling, Esq.

Bitwise Asset Management, Inc.

250 Montgomery Street, Suite 200

San Francisco, CA 94104

Registrant’s telephone number, including area code: (415) 707-3663   

Date of fiscal year end:  December 31

Date of reporting period:  June 30, 2024

Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.

A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.


Item 1. Reports to Stockholders.

 

(a) 

The Report to Shareholders is attached herewith.

Bitwise Bitcoin and Ether Equal Weight Strategy ETF

BTOP | NYSE Arca, Inc.

SEMI-ANNUAL SHAREHOLDER REPORT | JUNE 30, 2024

Image

This semi-annual shareholder report contains important information about the Bitwise Bitcoin and Ether Equal Weight Strategy ETF for the period of January 1, 2024 to June 30, 2024. You can find additional information about the Fund at www.btopetf.com/materials. You can also request this information by contacting us at 1-866-880-7228.

What were the Fund’s cost for the last year?

(based on a hypothetical $10,000 investment)

Fund
Costs of a $10,000 investment
Costs paid as a percentage of a $10,000 investment
Bitwise Bitcoin and Ether Equal Weight Strategy ETF
$50
0.85%

Key Fund Statistics

The following table outlines key fund statistics that you should pay attention to.

Fund net assets
$9,253,256
Total advisory fees paid
$32,242
Total number of portfolio holdings
2
Period portfolio turnover rate
0%

Graphical Representation of Holdings

The table below shows the investment makeup of the Fund, representing percentages of the total net assets of the Fund.  

Sectors
% of Net Assets
U.S. Treasury Bill
54.9%
Money Market Funds
66.2%
Liabilities in Excess of Other Assets
-
21.1%
Total
100.0%

Availability of Additional Information

You can find additional information about the Fund such as the prospectus, financial information, fund holdings and proxy voting at the website address or contact number included at the beginning of this shareholder report.

Bitwise Bitcoin Strategy Optimum Roll ETF

BITC | NYSE Arca, Inc.

SEMI-ANNUAL SHAREHOLDER REPORT | JUNE 30, 2024

Image

This semi-annual shareholder report contains important information about the Bitwise Bitcoin Strategy Optimum Roll ETF for the period of January 1, 2024 to June 30, 2024. You can find additional information about the Fund at www.bitcetf.com/materials. You can also request this information by contacting us at 1-866-880-7228.

What were the Fund’s cost for the last year?

(based on a hypothetical $10,000 investment)

Fund
Costs of a $10,000 investment
Costs paid as a percentage of a $10,000 investment
Bitwise Bitcoin Strategy Optimum Roll ETF
$50
0.85%

Key Fund Statistics

The following table outlines key fund statistics that you should pay attention to.

Fund net assets
$11,271,772
Total advisory fees paid
$42,177
Total number of portfolio holdings
2
Period portfolio turnover rate
0%

Graphical Representation of Holdings

The table below shows the investment makeup of the Fund, representing percentages of the total net assets of the Fund.  

Sectors
% of Net Assets
U.S. Treasury Bill
61.9%
Money Market Funds
56.4%
Liabilities in Excess of Other Assets
-
18.3%
Total
100.0%

Availability of Additional Information

You can find additional information about the Fund such as the prospectus, financial information, fund holdings and proxy voting at the website address or contact number included at the beginning of this shareholder report.

Bitwise Ethereum Strategy ETF

AETH | NYSE Arca, Inc.

SEMI-ANNUAL SHAREHOLDER REPORT | JUNE 30, 2024

Image

This semi-annual shareholder report contains important information about the Bitwise Ethereum Strategy ETF for the period of January 1, 2024 to June 30, 2024. You can find additional information about the Fund at www.aethetf.com/materials. You can also request this information by contacting us at 1-866-880-7228.

What were the Fund’s cost for the last year?

(based on a hypothetical $10,000 investment)

Fund
Costs of a $10,000 investment
Costs paid as a percentage of a $10,000 investment
Bitwise Ethereum Strategy ETF
$50
0.85%

Key Fund Statistics

The following table outlines key fund statistics that you should pay attention to.

Fund net assets
$13,189,294
Total advisory fees paid
$41,199
Total number of portfolio holdings
2
Period portfolio turnover rate
0%

Graphical Representation of Holdings

The table below shows the investment makeup of the Fund, representing percentages of the total net assets of the Fund.  

Sectors
% of Net Assets
U.S. Treasury Bill
54.4%
Money Market Funds
69.7%
Liabilities in Excess of Other Assets
-
24.1%
Total
100.0%

Availability of Additional Information

You can find additional information about the Fund such as the prospectus, financial information, fund holdings and proxy voting at the website address or contact number included at the beginning of this shareholder report.

Bitwise Web3 ETF

BWEB | NYSE Arca, Inc.

SEMI-ANNUAL SHAREHOLDER REPORT | JUNE 30, 2024

Image

This semi-annual shareholder report contains important information about the Bitwise Web3 ETF for the period of January 1, 2024 to June 30, 2024. You can find additional information about the Fund at www.bwebetf.com/materials. You can also request this information by contacting us at 1-866-880-7228.

What were the Fund’s cost for the last year?

(based on a hypothetical $10,000 investment)

Fund
Costs of a $10,000 investment
Costs paid as a percentage of a $10,000 investment
Bitwise Web3 ETF
$43
0.85%

Key Fund Statistics

The following table outlines key fund statistics that you should pay attention to.

Fund net assets
$2,842,001
Total advisory fees paid
$10,003
Total number of portfolio holdings
41
Period portfolio turnover rate
13%

Graphical Representation of Holdings

The table below shows the investment makeup of the Fund, representing percentages of the total net assets of the Fund.  

Sectors
% of Net Assets
Information Technology
40.4%
Communication Services
27.9%
Financials
19.6%
Real Estate
7.9%
Energy
1.5%
Consumer Staples
1.3%
Consumer Discretionary
1.3%
Money Market Funds
0.2%
Liabilities in Excess of Other Assets
-
0.1%
Total
100.0%

Availability of Additional Information

You can find additional information about the Fund such as the prospectus, financial information, fund holdings and proxy voting at the website address or contact number included at the beginning of this shareholder report.


(b) Not applicable

Item 2. Code of Ethics.

Not applicable for semi-annual reporting period.

Item 3. Audit Committee Financial Expert.

Not applicable for semi-annual reporting period.

Item 4. Principal Accountant Fees and Services.

Not applicable for semi-annual reporting period.

Item 5. Audit Committee of Listed Registrants.

Not applicable for semi-annual reporting period.

Item 6. Investments.

 

(a)

Schedule of Investments in securities of unaffiliated issuers as of the close of the reporting period is included as part of the report to shareholders filed under Item 1 of this form or is included in the financial statements filed under Item 7 of this Form.

 

(b)

Not applicable.

Item 7. Financial Statements and Financial Highlights for Open-End Management Investment Companies.

 

(a)

An open-end management investment company registered on Form N-1A [17 CFR 239.15A and 17 CFR 274.11A] must file its most recent annual or semi-annual financial statements required, and for the periods specified, by Regulation S-X.

The semi-annual financial statements are attached herewith.

 

(b)

An open-end management investment company registered on Form N-1A [17 CFR 239.15A and 17 CFR 274.11A] must file the information required by Item 13 of Form N-1A.

The Financial Highlights are attached herewith.


June 30, 2024

Semi-Annual Financial Statements and Other Information

Bitwise Funds Trust

Bitwise Bitcoin and Ether Equal Weight Strategy ETF (BTOP)

Bitwise Bitcoin Strategy Optimum Roll ETF (BITC)

Bitwise Ethereum Strategy ETF (AETH)

 

 

 

LOGO


Bitwise Funds Trust

Table of Contents

 

Schedule of Investments

  

Bitwise Bitcoin and Ether Equal Weight Strategy ETF

     3  

Bitwise Bitcoin Strategy Optimum Roll ETF

     5  

Bitwise Ethereum Strategy ETF

     6  

Consolidated Statements of Assets and Liabilities

     7  

Consolidated Statements of Operations

     8  

Consolidated Statements of Changes in Net Assets

     9  

Statements of Cash Flow

     11  

Consolidated Financial Highlights

     14  

Notes to Consolidated Financial Statements

     16  

Additional Information

     24  

 

 

This report is provided for the general information of shareholders and is not authorized for distribution to prospective investors unless preceded or accompanied by a current prospectus.


Bitwise Bitcoin and Ether Equal Weight Strategy ETF

Consolidated Schedule of Investments

June 30, 2024 (Unaudited)

 

 

        Principal            Value   

U.S. Treasury Bills – 54.9%

     

U.S. Treasury Bill, 5.27%, 7/30/2024(a)(b)
(Cost $5,078,420)

   $ 5,100,000       $ 5,078,452  
     

 

 

 

     Shares       

Money Market Funds – 66.2%

     

DWS Government Money Market Series Institutional, 5.25%(c)
(Cost $6,129,962)

     6,129,962        6,129,962  
     

 

 

 

Total Investments – 121.1%
(Cost $11,208,382)

       $ 11,208,414  

Liabilities in Excess of Other Assets – (21.1)%

        (1,955,158
     

 

 

 

Net Assets – 100.0%

       $    9,253,256  
     

 

 

 

 

(a)

Represents a zero coupon bond. Rate shown reflects the effective yield.

(b)

Security, or a portion thereof, in the amount of $4,480,965 has been pledged as collateral for reverse repurchase agreements as of June 30, 2024. See note 4 for additional information

(c)

Rate shown reflects the 7-day yield as of June 30, 2024.

At June 30, 2024, open Futures Contracts were as follows:

 

    

Number of

Contracts

  

Notional

Value

    

Expiration

Date

  

 Value/ 

 Unrealized 

 Appreciation 

 (Depreciation) 

Long position contracts:

           

CME Micro Ether Futures

   150    $ 50,715      7/26/24     $ (123

CME Micro Bitcoin Futures

   16      96,520      7/26/24      (7,218

CME Ether Futures

   27      4,564,350      7/26/24      (228,902

CME Bitcoin Futures

   15        4,524,375      7/26/24      (369,828
           

 

 

 

Total net unrealized depreciation

             $    (606,071
           

 

 

 

 

 

Cash in the amount of $3,030,528 has been pledged as collateral for open Futures Contracts as of June 30, 2024.

Summary of Investment Type

 

Industry   

% of Net

Assets

 

U.S. Treasury Bill

     54.9

Money Market Funds

     66.2

Total Investments

     121.1

Liabilities in Excess of Other Assets

     (21.1 )% 

Net Assets

     100.0

 

See Notes to Consolidated Financial Statements.

   3   


Bitwise Bitcoin and Ether Equal Weight Strategy ETF

Consolidated Schedule of Investments (Continued)

June 30, 2024 (Unaudited)

 

 

At June 30, 2024, open reverse repurchase agreements were as follows:

 

Counterparty    Interest Rate     Trade Date      Maturity Date      Face Amount    

Payable for

Reverse

Repurchase

  Agreements  

 

 

 

StoneX

     6.25%       6/27/2024        7/1/2024       $     4,387,950     $    4,387,950  
          

 

 

   

 

 

 
           $ 4,387,950     $ 4,387,950  
          

 

 

   

 

 

 

 

See Notes to Consolidated Financial Statements.

   4   


Bitwise Bitcoin Strategy Optimum Roll ETF

Consolidated Schedule of Investments

June 30, 2024 (Unaudited)

 

 

        Principal            Value   

U.S. Treasury Bills – 61.9%

     

U.S. Treasury Bill, 5.27%, 7/30/2024(a)(b)
(Cost $6,970,185)

   $ 7,000,000       $ 6,970,424  
     

 

 

 

     Shares       

Money Market Funds – 56.4%

     

DWS Government Money Market Series Institutional, 5.25%(c)
(Cost $6,359,908)

     6,359,908        6,359,908  
     

 

 

 

Total Investments – 118.3%
(Cost $13,330,093)

       $ 13,330,332  

Liabilities in Excess of Other Assets – (18.3)%

        (2,058,560
     

 

 

 

Net Assets – 100.0%

       $    11,271,772  
     

 

 

 

 

(a)

Represents a zero coupon bond. Rate shown reflects the effective yield.

(b)

Security, or a portion thereof, in the amount of $4,978,850 has been pledged as collateral for reverse repurchase agreements as of June 30, 2024. See note 4 for additional information

(c)

Rate shown reflects the 7-day yield as of June 30, 2024.

At June 30, 2024, open Futures Contracts were as follows:

 

    

Number of

Contracts

  

Notional

Value

    

Expiration

Date

  

Value/

Unrealized

Appreciation

 (Depreciation) 

Long position contracts:

           

CME Micro Bitcoin Futures

   14    $ 84,455      7/26/24     $ (7,541

CME Bitcoin Futures

   37         11,160,125      7/26/24      (990,454
           

 

 

 

Total net unrealized depreciation

             $    (997,995
           

 

 

 

 

 

Cash in the amount of $3,814,979 has been pledged as collateral for open Futures Contracts as of June 30, 2024.

Summary of Investment Type

 

Industry   

% of Net

Assets

 

U.S. Treasury Bill

     61.9

Money Market Funds

     56.4

Total Investments

     118.3

Liabilities in Excess of Other Assets

     (18.3 )% 

Net Assets

     100.0

At June 30, 2024, open reverse repurchase agreements were as follows:

 

Counterparty    Interest Rate     Trade Date      Maturity Date      Face Amount    

Payable for

Reverse

Repurchase

  Agreements  

 

 

 

StoneX

     6.25%       6/27/2024        7/1/2024       $ 4,875,500     $ 4,875,500  
          

 

 

   

 

 

 
           $    4,875,500     $    4,875,500  
          

 

 

   

 

 

 

 

See Notes to Consolidated Financial Statements.

   5   


Bitwise Ethereum Strategy ETF

Consolidated Schedule of Investments

June 30, 2024 (Unaudited)

 

 

     Principal      Value

U.S. Treasury Bills – 54.4%

     

U.S. Treasury Bill, 5.27%, 7/30/2024(a)(b)
(Cost $7,169,374)

   $      7,200,000       $ 7,169,579  
     

 

 

 

     Shares       

Money Market Funds – 69.7%

     

DWS Government Money Market Series Institutional, 5.25%(c)
(Cost $9,196,420)

     9,196,420        9,196,420  
     

 

 

 

Total Investments – 124.1%
(Cost $16,365,794)

       $ 16,365,999  

Liabilities in Excess of Other Assets – (24.1)%

        (3,176,705
     

 

 

 

Net Assets – 100.0%

       $    13,189,294  
     

 

 

 

 

(a)

Represents a zero coupon bond. Rate shown reflects the effective yield.

(b)

Security, or a portion thereof, in the amount of $6,970,390 has been pledged as collateral for reverse repurchase agreements as of June 30, 2024. See note 4 for additional information

(c)

Rate shown reflects the 7-day yield as of June 30, 2024.

At June 30, 2024, open Futures Contracts were as follows:

 

    

Number of

Contracts

    

Notional

Value

    

Expiration

Date

    

Value/

Unrealized

Appreciation

(Depreciation)

 

Long position contracts:

           

CME Ether Futures

     77      $   13,016,850        7/26/24      $      (609,828

 

 

Cash in the amount of $4,253,914 has been pledged as collateral for open Futures Contracts as of June 30, 2024.

Summary of Investment Type

 

Industry   

% of Net

Assets

 

U.S. Treasury Bill

     54.4

Money Market Funds

     69.7

Total Investments

     124.1

Liabilities in Excess of Other Assets

     (24.1 )% 

Net Assets

     100.0

At June 30, 2024, open reverse repurchase agreements were as follows:

 

Counterparty    Interest Rate     Trade Date      Maturity Date      Face Amount     

Payable for

Reverse

Repurchase

Agreements

 

StoneX

     6.25%       6/27/2024        7/1/2024       $     6,825,700      $     6,825,700  
          

 

 

    

 

 

 
           $ 6,825,700      $ 6,825,700  
          

 

 

    

 

 

 

 

See Notes to Consolidated Financial Statements.

   6   


Bitwise Funds Trust

Consolidated Statements of Assets and Liabilities

June 30, 2024 (Unaudited)

 

 

     

Bitwise

Bitcoin and

Ether Equal

Weight

Strategy ETF

    

Bitwise

Bitcoin

Strategy

Optimum Roll

ETF

    

Bitwise

Ethereum

Strategy ETF

      

Assets

          

Investments, at fair value

   $   11,208,414      $   13,330,332      $   16,365,999    

Cash

            414           

Deposit at Broker for Futures Contracts

     3,030,528        3,814,979        4,253,914    

Receivables:

          

Interest

     18,396        11,658        20,017    

Investment adviser

     2,788        5,277        2,618    
  

 

 

    

 

 

    

 

 

   

Total assets

     14,260,126        17,162,660        20,642,548    
  

 

 

    

 

 

    

 

 

   

Liabilities

          

Payables:

          

Reverse repurchase agreement

     4,387,950        4,875,500        6,825,700    

Unrealized depreciation on Futures Contracts

     606,071        997,995        609,828    

Investment advisory fees

     7,014        8,731        10,368    

Interest on reverse repurchase agreement

     3,047        3,385        4,740    

Due to broker

     2,788        5,277        2,618    
  

 

 

    

 

 

    

 

 

   

Total liabilities

     5,006,870        5,890,888        7,453,254    
  

 

 

    

 

 

    

 

 

   

Net Assets

   $ 9,253,256      $ 11,271,772      $ 13,189,294    
  

 

 

    

 

 

    

 

 

   

Net Assets Consist of

          

Paid-in capital

   $ 7,976,603      $ 9,989,456      $ 12,137,745    

Distributable earnings (loss)

     1,276,653        1,282,316        1,051,549    
  

 

 

    

 

 

    

 

 

   

Net Assets

   $ 9,253,256      $ 11,271,772      $ 13,189,294    
  

 

 

    

 

 

    

 

 

   

Number of Common Shares outstanding

     200,004        250,004        300,004    
  

 

 

    

 

 

    

 

 

   

Net Asset Value, offering and redemption price per share

   $ 46.27      $ 45.09      $ 43.96    
  

 

 

    

 

 

    

 

 

   

Investments, at cost

   $ 11,208,382      $ 13,330,093      $ 16,365,794    
  

 

 

    

 

 

    

 

 

   

 

See Notes to Consolidated Financial Statements.

   7   


Bitwise Funds Trust

Consolidated Statements of Operations

Period ended June 30, 2024 (Unaudited)

 

 

     

Bitwise

Bitcoin and

Ether Equal

Weight

Strategy ETF

 

Bitwise

Bitcoin

Strategy

Optimum Roll

ETF

 

Bitwise

Ethereum

Strategy ETF

    

Investment Income

        

Dividend income

    $ 78,948      $ 56,427      $ 92,242    

Interest income

     65,810       132,563       88,893    
  

 

 

 

 

 

 

 

 

 

 

 

 

Total income

     144,758       188,990       181,135    
  

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

        

Investment advisory fees

     32,242       42,177       41,199    

Broker expense

     14,245       30,365       13,891    
  

 

 

 

 

 

 

 

 

 

 

 

 

Total expenses

     46,487       72,542       55,090    
  

 

 

 

 

 

 

 

 

 

 

 

 

Less fees waived (see Note 4):

        

Waiver / Reimbursement

     (14,245     (30,365     (13,891  
  

 

 

 

 

 

 

 

 

 

 

 

 

Net expenses

     32,242       42,177       41,199    
  

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income (loss)

     112,516       146,813       139,936    
  

 

 

 

 

 

 

 

 

 

 

 

 

Realized and Unrealized Gain (Loss)

        

Net realized gain (loss) from:

        

Investments

     17       (6     9    

Futures

     1,502,269       1,748,659         1,329,517    
  

 

 

 

 

 

 

 

 

 

 

 

 

Net realized gain (loss)

     1,502,286       1,748,653       1,329,526    
  

 

 

 

 

 

 

 

 

 

 

 

 

Net change in unrealized appreciation (depreciation) on:

        

Investments

     (154     (173     110    

Futures

     (574,549     (790,725     (637,213  
  

 

 

 

 

 

 

 

 

 

 

 

 

Net unrealized gain (loss)

     (574,703     (790,898     (637,103  
  

 

 

 

 

 

 

 

 

 

 

 

 

Net realized and unrealized gain (loss)

     927,583       957,755       692,423    
  

 

 

 

 

 

 

 

 

 

 

 

 

Net Increase (Decrease) in Net Assets Resulting from Operations

    $   1,040,099      $   1,104,568      $ 832,359    
  

 

 

 

 

 

 

 

 

 

 

 

 

 

See Notes to Consolidated Financial Statements.

   8   


Bitwise Funds Trust

Consolidated Statements of Changes in Net Assets

 

 

    

Bitwise Bitcoin and Ether

Equal Weight Strategy ETF

 

Bitwise Bitcoin Strategy

Optimum Roll ETF

    
     

For the Six

Months

Ended June

30, 2024

(Unaudited)

 

For the period

September

29, 2023(1) to

December 31,

2023

 

For the Six

Months

Ended June

30, 2024
(Unaudited)

 

For the period

March 20,

2023(1) to

December 31,

2023

    

Increase (Decrease) in Net Assets from Operations

          

Net investment income (loss)

   $ 112,516     $ 13,532     $ 146,813     $ 31,551    

Net realized gain (loss)

     1,502,286       453,188       1,748,653       707,160    

Net change in net unrealized appreciation (depreciation)

     (574,703     (31,336     (790,898     (206,858  
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net increase (decrease) in net assets resulting from operations

     1,040,099       435,384       1,104,568       531,853    
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distributions to shareholders

           (198,830           (235,273  
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fund Shares Transactions

          

Proceeds from shares sold

     4,813,802       3,162,801       7,433,064       8,486,548    

Value of shares redeemed

                 (3,934,092     (2,114,896  

Net increase (decrease) in net assets resulting from fund share transactions

     4,813,802       3,162,801       3,498,972       6,371,652    
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total net increase (decrease) in net assets

     5,853,901       3,399,355       4,603,540       6,668,232    
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Assets

          

Beginning of period

     3,399,355             6,668,232          
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

End of period

   $   9,253,256     $   3,399,355     $   11,271,772     $   6,668,232    
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Changes in Shares Outstanding

          

Shares outstanding, beginning of period

     100,004             200,004          

Shares sold

     100,000       100,004       150,000       275,004    

Shares redeemed

                 (100,000     (75,000  
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares outstanding, end of period

     200,004       100,004       250,004       200,004    
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

Commencement of operations.

 

See Notes to Consolidated Financial Statements.

   9   


Bitwise Funds Trust

Consolidated Statements of Changes in Net Assets (Continued)

 

 

    

Bitwise Ethereum Strategy

ETF

    
     

For the Six

Months

Ended June

30, 2024

(Unaudited)

 

For the period

September

29, 2023(1) to

December 31,

2023

    

Increase (Decrease) in Net Assets from Operations

      

Net investment income (loss)

   $ 139,936     $ 7,692    

Net realized gain (loss)

     1,329,526       344,809    

Net change in net unrealized appreciation (depreciation)

     (637,103     27,480    
  

 

 

 

 

 

 

 

 

Net increase (decrease) in net assets resulting from operations

     832,359       379,981    
  

 

 

 

 

 

 

 

 

Distributions to shareholders

           (160,791  
  

 

 

 

 

 

 

 

 

Fund Shares Transactions

      

Proceeds from shares sold

     11,029,626       2,180,470    

Value of shares redeemed

     (1,072,351        
  

 

 

 

 

 

 

 

 

Net increase (decrease) in net assets resulting from fund share transactions

     9,957,275       2,180,470    
  

 

 

 

 

 

 

 

 

Total net increase (decrease) in net assets

     10,789,634       2,399,660    
  

 

 

 

 

 

 

 

 

Net Assets

      

Beginning of period

     2,399,660          
  

 

 

 

 

 

 

 

 

End of period

   $   13,189,294     $   2,399,660    
  

 

 

 

 

 

 

 

 

Changes in Shares Outstanding

      

Shares outstanding, beginning of period

     75,004          

Shares sold

     250,000       75,004    

Shares redeemed

     (25,000        
  

 

 

 

 

 

 

 

 

Shares outstanding, end of period

     300,004       75,004    
  

 

 

 

 

 

 

 

 

 

(1)

Commencement of operations.

 

See Notes to Consolidated Financial Statements.

   10   


Bitwise Funds Trust

Consolidated Statement of Cash Flow

Period ended June 30, 2024 (Unaudited)

 

 

     

Bitwise Bitcoin

and Ether Equal

Weight Strategy

ETF

    

Cash Flows Provided by (Used for) Operating Activities:

    

Net increase (decrease) in net assets resulting from operations

   $ 1,040,099    
Adjustments to reconcile net increase (decrease) in net assets resulting from
operations to net cash provided by / (used for) operating activities:
    

Purchases of long-term investment securities

     (8,315,422  

Proceeds from sales or maturities of short-term U.S. government and agency obligations

     4,498,605    

Proceeds from sale of securities

     (4,622,540  

Net change in unrealized (appreciation) / depreciation on investments

     154    

Net realized (gain) / loss from sales of investments

     (17  

Net amortization of premium / (discount)

     (65,810  

(Increase) Decrease in dividends and interest receivable

     (12,691  

Increase (Decrease) in variation margin on futures

     574,549    

Increase (Decrease) in due to broker

     1,103    

Interest payable on reverse repurchase agreement

     3,047    

Increase (Decrease) in investment advisory fees payable

     3,490    
  

 

 

 

 

Net Cash Provided by / (Used for) Operating Activities

     (6,895,433  
  

 

 

 

 

Cash Flows Provided by (Used for) from Financing Activities:

    

Shares sold

     4,813,802    

Proceeds from reverse repurchase agreement

     4,485,460    

Payments made on reverse repurchase agreement

     (97,510  
  

 

 

 

 

Cash provided by (used for) financing activities

     9,201,752    
  

 

 

 

 

Net increase (decrease) in cash

     2,306,319    
  

 

 

 

 

Cash and Restricted Cash:

    

Cash and Restricted Cash, at beginning of period

     724,209    
  

 

 

 

 

Cash and Restricted Cash, at end of period

   $    3,030,528    
  

 

 

 

 

 

See Notes to Consolidated Financial Statements.

   11   


Bitwise Funds Trust

Consolidated Statement of Cash Flow (Continued)

Period ended June 30, 2024 (Unaudited)

 

 

     

Bitwise Bitcoin

Strategy

Optimum Roll

ETF

    

Cash Flows Provided by (Used for) Operating Activities:

    

Net increase (decrease) in net assets resulting from operations

   $ 1,104,568    
Adjustments to reconcile net increase (decrease) in net assets resulting from
operations to net cash provided by / (used for) operating activities:
    

Purchases of long-term investment securities

     (14,843,141  

Proceeds from sales or maturities of short-term U.S. government and agency obligations

     10,496,768    

Proceeds from sale of securities

     (5,153,395  

Net change in unrealized (appreciation) / depreciation on investments

     173    

Net realized (gain) / loss from sales of investments

     6    

Net amortization of premium / (discount)

     (132,645  

(Increase) Decrease in dividends and interest receivable

     (7,625  

Increase (Decrease) in variation margin on futures

     790,725    

(Increase) Decrease in capital shares receivable

     1,667,143    

Increase (Decrease) in due to broker

     1,403    

Interest payable on reverse repurchase agreement

     3,385    

Increase (Decrease) in investment advisory fees payable

     4,334    
  

 

 

 

 

Net Cash Provided by / (Used for) Operating Activities

     (6,068,301  
  

 

 

 

 

Cash Flows Provided by (Used for) from Financing Activities:

    

Shares sold

     7,433,064    

Shares redeemed

     (3,934,092  

Proceeds from reverse repurchase agreement

     4,973,010    

Payments made on reverse repurchase agreement

     (97,510  
  

 

 

 

 

Cash provided by (used for) financing activities

     8,374,472    
  

 

 

 

 

Net increase (decrease) in cash

     2,306,171    
  

 

 

 

 

Cash and Restricted Cash:

    

Cash and Restricted Cash, at beginning of period

     1,509,222    
  

 

 

 

 

Cash and Restricted Cash, at end of period

   $    3,815,393    
  

 

 

 

 

 

See Notes to Consolidated Financial Statements.

   12   


Bitwise Funds Trust

Consolidated Statement of Cash Flow (Continued)

Period ended June 30, 2024 (Unaudited)

 

 

     

Bitwise

Ethereum

Strategy ETF

    

Cash Flows Provided by (Used for) Operating Activities:

    

Net increase (decrease) in net assets resulting from operations

   $ 832,359    
Adjustments to reconcile net increase (decrease) in net assets resulting from
operations to net cash provided by / (used for) operating activities:
    

Purchases of long-term investment securities

     (11,281,889  

Proceeds from sales or maturities of short-term U.S. government and agency obligations

     4,799,303    

Proceeds from sale of securities

     (7,816,052  

Net change in unrealized (appreciation) / depreciation on investments

     (110  

Net realized (gain) / loss from sales of investments

     (9  

Net amortization of premium / (discount)

     (88,893  

(Increase) Decrease in dividends and interest receivable

     (16,529  

Increase (Decrease) in variation margin on futures

     637,213    

Increase (Decrease) in due to broker

     1,056    

Interest payable on reverse repurchase agreement

     4,740    

Increase (Decrease) in investment advisory fees payable

     7,931    
  

 

 

 

 

Net Cash Provided by / (Used for) Operating Activities

     (12,920,880  
  

 

 

 

 

Cash Flows Provided by (Used for) from Financing Activities:

    

Shares sold

     11,029,626    

Shares redeemed

     (1,072,351  

Proceeds from reverse repurchase agreement

     6,923,210    

Payments made on reverse repurchase agreement

     (97,510  
  

 

 

 

 

Cash provided by (used for) financing activities

     16,782,975    
  

 

 

 

 

Net increase (decrease) in cash

     3,862,095    
  

 

 

 

 

Cash and Restricted Cash:

    

Cash and Restricted Cash, at beginning of period

     391,819    
  

 

 

 

 

Cash and Restricted Cash, at end of period

   $    4,253,914    
  

 

 

 

 

 

See Notes to Consolidated Financial Statements.

   13   


Bitwise Funds Trust

Consolidated Financial Highlights

 

 

Bitwise Bitcoin and Ether Equal Weight Strategy ETF

Selected Per Share Data

  

For the Six

Months Ended

June 30, 2024

(Unaudited)

 

Period Ended

December 31,

2023(a)

    

Net Asset Value, beginning of period

   $ 33.99     $ 25.00    
  

 

 

 

 

 

 

 

 

Income (loss) from investment operations:

      

Net investment income (loss)(b)

     0.68       0.24    

Net realized and unrealized gain (loss)

     11.60       10.74    
  

 

 

 

 

 

 

 

 

Total from investment operations

     12.28       10.98    
  

 

 

 

 

 

 

 

 

Less distributions from:

      

Net investment income

           (1.99  
  

 

 

 

 

 

 

 

 

Total distributions

           (1.99  
  

 

 

 

 

 

 

 

 

Net Asset Value, end of period

   $        46.27     $      33.99    
  

 

 

 

 

 

 

 

 

Total Return (%)

     36.11 (c)      43.70 (c)   

Ratios to Average Net Assets and Supplemental Data

      

Net Assets, end of period ($ millions)

   $ 9     $ 3    

Ratio of expenses before fee waiver (%)

     1.23 (d)      1.31 (d)(e)   

Ratio of expenses after fee waiver (%)

     0.85 (d)      0.85 (d)(e)   

Ratio of net investment income (loss) (%)

     2.97 (d)      2.97 (d)(e)   

Portfolio turnover rate (%)(f)

     0 (c)      0 (c)   

Bitwise Bitcoin Strategy Optimum Roll ETF

Selected Per Share Data

  

For the Six

Months Ended

June 30, 2024

(Unaudited)

 

Period Ended

December 31,

2023(g)

    

Net Asset Value, beginning of period

   $ 33.34     $ 25.00    
  

 

 

 

 

 

 

 

 

Income (loss) from investment operations:

      

Net investment income (loss)(b)

     0.69       0.61    

Net realized and unrealized gain (loss)

     11.06       9.61    
  

 

 

 

 

 

 

 

 

Total from investment operations

     11.75       10.22    
  

 

 

 

 

 

 

 

 

Less distributions from:

      

Net investment income

           (1.88  
  

 

 

 

 

 

 

 

 

Total distributions

           (1.88  
  

 

 

 

 

 

 

 

 

Net Asset Value, end of period

   $ 45.09     $ 33.34    
  

 

 

 

 

 

 

 

 

Total Return (%)

     35.23 (c)      40.56 (c)   

Ratios to Average Net Assets and Supplemental Data

      

Net Assets, end of period ($ millions)

   $ 11     $ 7    

Ratio of expenses before fee waiver (%)

     1.46 (d)      3.36 (d)(h)   

Ratio of expenses after fee waiver (%)

     0.85 (d)      0.85 (d)(h)   

Ratio of net investment income (loss) (%)

     2.96 (d)      2.82 (d)(h)   

Portfolio turnover rate (%)(f)

     0 (c)      0 (c)   

 

(a)

For the period September 29, 2023 (commencement of operations) through December 31, 2023.

(b)

Per share amounts have been calculated using the average shares outstanding.

(c)

Not annualized.

(d)

Annualized.

(e)

For the period October 2, 2023 (commencement of Fund expenses) through December 31, 2023.

(f)

Excludes the impact of in-kind transactions related to the processing of capital share transactions.

(g)

For the period March 20, 2023 (commencement of operations) through December 31, 2023.

(h)

For the period March 21, 2023 (commencement of Fund expenses) through December 31, 2023.

 

See Notes to Consolidated Financial Statements.

   14   


Bitwise Funds Trust

Consolidated Financial Highlights (Continued)

 

 

Bitwise Ethereum Strategy ETF

Selected Per Share Data

  

For the Six

Months Ended

June 30, 2024

(Unaudited)

 

Period Ended

December 31,

2023(a)

    

Net Asset Value, beginning of period

   $ 31.99     $ 25.00    
  

 

 

 

 

 

 

 

 

Income (loss) from investment operations:

      

Net investment income (loss)(b)

     0.62       0.21    

Net realized and unrealized gain (loss)

     11.35       8.92    
  

 

 

 

 

 

 

 

 

Total from investment operations

     11.97       9.13    
  

 

 

 

 

 

 

 

 

Less distributions from:

      

Net investment income

           (2.14  
  

 

 

 

 

 

 

 

 

Total distributions

           (2.14  
  

 

 

 

 

 

 

 

 

Net Asset Value, end of period

   $       43.96     $      31.99    
  

 

 

 

 

 

 

 

 

Total Return (%)

     37.43 (c)      36.47 (c)   

Ratios to Average Net Assets and Supplemental Data

      

Net Assets, end of period ($ millions)

   $ 13     $ 2    

Ratio of expenses before fee waiver (%)

     1.14 (d)      1.52 (d)(f)   

Ratio of expenses after fee waiver (%)

     0.85 (d)      0.85 (d)(f)   

Ratio of net investment income (loss) (%)

     2.89 (d)      2.77 (d)(f)   

Portfolio turnover rate (%)(e)

     0 (c)      0 (c)   

 

(a)

For the period September 29, 2023 (commencement of operations) through December 31, 2023.

(b)

Per share amounts have been calculated using the average shares outstanding.

(c)

Not annualized.

(d)

Annualized.

(e)

Excludes the impact of in-kind transactions related to the processing of capital share transactions.

(f)

For the period October 2, 2023 (commencement of Fund expenses) through December 31, 2023.

 

See Notes to Consolidated Financial Statements.

   15   


Bitwise Funds Trust

Notes to Consolidated Financial Statements

June 30, 2024 (Unaudited)

 

 

1. Organization

Bitwise Funds Trust (the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end registered management investment company organized on April 28, 2022 as a Delaware Statutory Trust.

As of June 30, 2024, the Trust consists of four investment series of exchange-traded funds (“ETFs”) (each a “Fund” and collectively, the “Funds”) in operation and trading. These financial statements report on three of the four Funds listed below:

Bitwise Bitcoin and Ether Equal Weight Strategy ETF

Bitwise Bitcoin Strategy Optimum Roll ETF

Bitwise Ethereum Strategy ETF

Each Fund is a non-diversified series of the Trust.

Bitwise Investment Manager, LLC (the “Adviser”) serves as investment adviser to the Trust and has overall responsibility for the general management and administration of the Funds, subject to the supervision of the Trust’s Board of Trustees (the “Board”).

Each Fund offers shares that are listed and traded on the NYSE Arca, Inc. (“NYSE Arca”). Unlike conventional mutual funds, each Fund issues and redeems shares (“Shares” or “Fund Shares”) on a continuous basis, at net asset value (“NAV”), only in large specified lots of 25,000 shares, each called a “Creation Unit”, to authorized participants. An authorized participant is either (i) a broker-dealer or other participant in the clearing process through Continuous Net Settlement System of the National Securities Clearing Corporation or (ii) a Depository Trust Company participant and, in each case, must have executed a participant agreement with the Distributor. Shares are not individually redeemable securities of the Funds, and owners of shares may acquire those shares from the Funds or tender such shares for redemption to the Fund, in Creation Units only.

 

Fund   Investment objectives

Bitwise Bitcoin and Ether Equal Weight Strategy ETF

  The Fund seeks to provide investors with capital appreciation.

Bitwise Bitcoin Strategy Optimum Roll ETF

  The Fund seeks to provide investors with capital appreciation.

Bitwise Ethereum Strategy ETF

  The Fund seeks to provide investors with capital appreciation.

2. Consolidation of Subsidiary

The Consolidated Schedules of Investments, Consolidated Statements of Assets and Liabilities, Consolidated Statements of Operations, Consolidated Statement of Changes in Net Assets, and the Consolidated Financial Highlights of the Funds listed below include the accounts of a wholly owned subsidiary (each, a “Subsidiary”). All inter-company accounts and transactions have been eliminated in consolidation.

Each Subsidiary is a Cayman Islands exempted company with limited liability. For tax purposes, each Fund is required to increase its taxable income by its proportionate share of its respective share of the applicable Subsidiary’s income. Net losses incurred by each Subsidiary cannot offset income earned by the respective Fund and cannot be carried back or forward by the Subsidiary to offset income from prior or future years.

 

Fund   Wholly Owned Subsidiary

Bitwise Bitcoin and Ether Equal Weight Strategy ETF

  Bitwise Bitcoin and Ether Equal Weight Strategy Cayman Subsidiary, LLC

Bitwise Bitcoin Strategy Optimum Roll ETF

  Bitwise Bitcoin Strategy Optimum Yield Cayman Subsidiary, LLC

Bitwise Ethereum Strategy ETF

  Bitwise Ethereum Strategy Cayman Subsidiary, LLC

A summary of each Fund’s investment in its corresponding subsidiary is as follows:

 

Fund   

Inception Date of

Subsidiary

  

Subsidiary Net

Assets at June 30,

2024

  

% of Fund’s

Consolidated Total

Assets at June 30,

2024

Bitwise Bitcoin and Ether Equal Weight Strategy ETF

   September 29, 2023    $2,424,457    17.0%

Bitwise Bitcoin Strategy Optimum Roll ETF

   March 20, 2023    $2,817,399    16.4%

Bitwise Ethereum Strategy ETF

   September 29, 2023    $3,644,086    17.7%

3. Significant Accounting Policies

The financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”), which require management to make certain estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates. The Funds qualify as an investment company under Topic 946 of the Accounting Standards Codification of U.S. GAAP. The following is a summary of significant accounting policies followed by the Funds.

 

   16   


Bitwise Funds Trust

Notes to Consolidated Financial Statements (Continued)

June 30, 2024 (Unaudited)

 

 

Valuation of Investments

The Board has adopted procedures for valuing portfolio securities in circumstances where market quotes are not readily available. In accordance with Rule 2a-5 under the Investment Company Act of 1940, the Board has designated the Adviser as its valuation designee (the “Valuation Designee”). As Valuation Designee, the Adviser, subject to the oversight of the Board, is responsible for making fair value determinations. The Adviser’s day-to-day responsibilities as Valuation Designee are performed by a valuation committee established by the Advisor (“the Valuation Committee”).

The NAV of the Funds’ shares is calculated each business day as of the close of regular trading on the New York Stock Exchange, generally 4:00 p.m. Eastern Time. NAV per share is calculated by dividing a Fund’s net assets by the number of Fund shares outstanding.

The Funds’ investments are valued using procedures approved by the Board and are generally valued using market valuations. A market valuation generally means a valuation (i) obtained from an exchange, a pricing service, or a major market maker (or dealer) or (ii) based on a price quotation or other equivalent indication of value supplied by an exchange, a pricing service, or a major market maker (or dealer). A price obtained from a pricing service based on such pricing service’s valuation matrix may be considered a market valuation. Any assets or liabilities denominated in currencies other than the U.S. dollar are converted into U.S. dollars at the current market rates on the date of valuation as quoted by one or more sources.

Fixed income and debt securities are valued based on prices received from pricing services. The pricing services use multiple valuation techniques to determine the valuation of the fixed income securities. In instances where sufficient market activity exists, the pricing services may utilize a market-based approach through which trades or quotes from market makers are used to determine the valuation. Fixed income and debt securities are generally categorized as Level 2 of the fair value hierarchy.

Futures contracts are generally valued at the settlement prices established each day on the exchange on which they are traded and are categorized as Level 1.

Reverse repurchase agreements are valued at cost plus accrued interest. These securities are categorized as Level 2 in the fair value hierarchy.

Investments in open-ended investment companies are valued at their reported NAV each business day and are categorized as Level 1.

If market quotations are not readily available, securities will be valued at their fair market value as determined using the “fair value” procedures approved by the Board. Fair value pricing involves subjective judgments and it is possible that the fair value determined for a security may be materially different than the value that could be realized upon the sale of that security. The fair value prices can differ from market prices when they become available or when a price becomes available. The Board has designated the Adviser, as Valuation Designee, to perform fair valuation determinations pursuant to the fair valuation procedures approved by the Board. In undertaking these determinations, the Adviser’s Valuation Committee may also enlist third party consultants such as an audit firm or financial officer of a security issuer on an as-needed basis to assist in determining a security-specific fair value. These securities are either categorized as Level 2 or 3 of the fair value hierarchy depending on the relevant inputs used. The Board reviews and ratifies the execution of this process and the resultant fair value prices at least quarterly to assure the process produces reliable results.

Each Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:

 

   

Level 1 – Quoted prices in active markets for identical assets that the Funds have the ability to access.

 

   

Level 2 – Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).

 

   

Level 3 – Significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments).

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

The following is a summary of the valuations as of June 30, 2024 for each Fund based upon the three levels defined above:

Bitwise Bitcoin and Ether Equal Weight Strategy ETF

Assets

   Level 1   Level 2   Level 3   Total

U.S. Treasury Bills

   $     $ 5,078,452       $       $ 5,078,452    

Money Market Funds

     6,129,962                     6,129,962  
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL

   $    6,129,962     $    5,078,452     $          —     $    11,208,414  
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   17   


Bitwise Funds Trust

Notes to Consolidated Financial Statements (Continued)

June 30, 2024 (Unaudited)

 

 

Liabilities

  Level 1   Level 2   Level 3   Total
                 

Futures

  $ (606,071)     $     $     $ (606,071)  

Reverse Repurchase Agreements

          (4,387,950)             (4,387,950)  
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL

  $ (606,071)     $ (4,387,950)     $     $ (4,994,021)  
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Bitwise Bitcoin Strategy Optimum Roll ETF

       

Assets

  Level 1   Level 2   Level 3   Total
                 

U.S. Treasury Bills

          6,970,424                 6,970,424    

Money Market Funds

    6,359,908                     6,359,908  
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL

  $   6,359,908     $   6,970,424     $     $ 13,330,332  
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities

  Level 1   Level 2   Level 3   Total
                 

Futures

    (997,995)                   (997,995)  

Reverse Repurchase Agreements

          (4,875,500)             (4,875,500)  
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL

  $ (997,995)     $ (4,875,500)     $     $ (5,873,495)  
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Bitwise Ethereum Strategy ETF

       

Assets

  Level 1   Level 2   Level 3   Total
                 

U.S. Treasury Bills

          7,169,579             7,169,579  

Money Market Funds

    9,196,420                   9,196,420  
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL

  $ 9,196,420     $ 7,169,579     $     $   16,365,999  
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities

  Level 1   Level 2   Level 3   Total
                 

Futures

    (609,828)                   (609,828)  

Reverse Repurchase Agreements

          (6,825,700)             (6,825,700)  
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL

  $ (609,828)     $ (6,825,700)     $           —     $ (7,435,528)  
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash

Cash consists of cash on deposit with a major financial institution which may exceed federally insured limits.

Investment Transactions and Related Income

For financial reporting purposes, investment transactions are reported on the trade date. However, for daily NAV determination, portfolio securities transactions are reflected no later than in the first calculation on the first business day following trade date. Dividend income is recorded on the ex-dividend date. Interest income is recognized on an accrual basis and includes, where applicable, the amortization of premium or accretion of discount based on effective yield. Gains or losses realized on sales of securities are determined using the specific identification method by comparing the identified cost of the security lot sold with the net sales proceeds. Dividend income on the Statements of Operations is shown net of any foreign taxes withheld on income from foreign securities, which are provided for in accordance with each Fund’s understanding of the applicable tax rules and regulations.

Income Tax Information and Distributions to Shareholders

It is the Funds’ policy to comply with all requirements of the Internal Revenue Code of 1986, as amended (“the Code”). Each Fund intends to qualify for and to elect treatment as a separate Regulated Investment Company (“RIC”) under Subchapter M of the Code. It is each Fund’s policy to pay out dividends from net investment income at least annually. Taxable net realized gains from investment transactions, reduced by capital loss carryforwards, if any, will be declared and distributed to shareholders at least annually. The capital loss carryforward amount, if any, will be available to offset future net capital gains. Each Fund may occasionally be required to make supplemental distributions at some other time during the year. Each Fund reserves the right to declare special distributions if, in its reasonable discretion, such action is necessary or advisable to preserve the status of the Fund as a RIC or to avoid imposition of income or excise taxes on undistributed income. Dividends and distributions to shareholders, if any, will be recorded on the ex-dividend date. The amount of dividends and distributions from net investment income and net realized capital gains will be determined in accordance with federal income tax regulations which may differ from U.S. GAAP. These “book/tax” differences are either considered temporary or permanent in nature. To the extent these differences are permanent in nature, such amounts will be reclassified at the end of the year within the components of net assets based on their federal tax treatment; temporary differences do not require reclassification. Each Fund may utilize equalization accounting for tax purposes and designate earnings and profits, including net realized gains distributed to shareholders on redemption of shares, as part of the dividends paid deduction for income tax purposes. Dividends and distributions, which exceed earnings and profits for the full year for tax purposes, will be reported as a tax return of capital.

 

   18   


Bitwise Funds Trust

Notes to Consolidated Financial Statements (Continued)

June 30, 2024 (Unaudited)

 

 

In accordance with U.S. GAAP requirements regarding accounting for uncertainties in income taxes, management has analyzed the Fund’s tax positions expected to be taken on foreign, federal and state income tax returns for all open tax years and has concluded that no provision for income tax is required in the Fund’s financial statement.

Each Fund will recognize interest and penalties, if any, related to uncertain tax positions as income tax expense on the Statement of Operations.

Derivative Financial Instruments

In the normal course of business, a Fund uses derivative contracts in connection with its proprietary trading activities. Derivative contracts are subject to additional risks that can result in a loss of all or part of an investment. A Fund’s derivative activities and exposure to derivative contracts are classified by the primary underlying risk: Crypto Assets. In addition to its primary underlying risks, a Fund is also subject to additional counterparty risk due to inability of its counterparties to meet the terms of their contracts.

FASB Accounting Standards Codification, Derivatives and Hedging (“ASC 815”) requires enhanced disclosures about a Fund’s use of, and accounting for, derivative instruments and the effect of derivative instruments on a Fund’s financial position and results of operations. Tabular disclosure regarding derivative fair value and gain/loss by contract type (e.g., crypto assets, interest rate contracts, foreign exchange contracts, credit contracts, etc.) is required and derivatives accounted for as hedging instruments under ASC 815 must be disclosed separately from those that do not qualify for hedge accounting. Even though a Fund may use derivatives in an attempt to achieve an economic hedge, a Fund’s derivatives are not accounted for as hedging instruments under ASC 815 because investment companies account for their derivatives at fair value and record any changes in fair value in current period earnings.

Futures Contracts

A futures contract provides for the future sale by one party and purchase by another party of a specified amount of a specific financial instrument (e.g., units of a stock index) for a specified price, date, time and place designated at the time the contract is made. Brokerage fees are paid when a futures contract is bought or sold and margin deposits must be maintained. Unlike when a Fund purchases or sells a security, no price would be paid or received by a Fund upon the purchase or sale of a futures contract. Upon entering into a futures contract, and to maintain a Fund’s open positions in futures contracts, a Fund would be required to deposit with its custodian or futures broker in a segregated account in the name of the futures broker an amount of cash, U.S. government securities, suitable money market instruments, or other liquid securities, known as “initial margin.” The margin required for a particular futures contract is set by the exchange on which the contract is traded, and may be significantly modified from time to time by the exchange during the term of the contract. If the price of an open futures contract changes (by increase in underlying instrument or index in the case of a sale or by decrease in the case of a purchase) so that the loss on the futures contract reaches a point at which the margin on deposit does not satisfy margin requirements, the broker will require an increase in the margin. However, if the value of a position increases because of favorable price changes in the futures contract so that the margin deposit exceeds the required margin, the broker will pay the excess to a Fund.

These subsequent payments, called “variation margin,” to and from the futures broker, are made on a daily basis as the price of the underlying assets fluctuate making the long and short positions in the futures contract more or less valuable, a process known as “marking to the market.” A Fund expects to earn interest income on margin deposits.

The primary risks associated with the use of futures contracts are (a) the imperfect correlation between the change in market value of the instruments held by a Fund and the price of the forward or futures contract; (b) possible lack of a liquid secondary market for a forward or futures contract and the resulting inability to close a forward or futures contract when desired; (c) investments in futures contracts involves leverage, which means a small percentage of assets in futures can have a disproportionately large impact on a Fund and a Fund can lose more than the principal amount invested; (d) losses caused by unanticipated market movements, which are potentially unlimited; (e) the adviser’s inability to predict correctly the direction of securities prices, interest rates, currency exchange rates and other economic factors; (f) the possibility that the counterparty will default in the performance of its obligations; and (g) if a Fund has insufficient cash, it may have to sell securities from its portfolio to meet daily variation margin requirements, and a Fund may have to sell securities at a time when it may be disadvantageous to do so.

The following table summarizes the value of the Funds’ derivative instruments held as of June 30, 2024 and the related location in the accompanying Statement of Assets and Liabilities or Consolidated Statement of Assets and Liabilities, presented by primary underlying risk exposure:

 

Fund    Asset Derivatives      Liability Derivatives  
Bitwise Bitcoin and Ether Equal Weight Strategy ETF                

Crypto Assets

   Unrealized appreciation on Futures Contracts*               $         —        Unrealized depreciation on Futures Contracts*              $  (606,071)    
       

 

 

         

 

 

 

Bitwise Bitcoin Strategy Optimum Roll ETF

               

 

   19   


Bitwise Funds Trust

Notes to Consolidated Financial Statements (Continued)

June 30, 2024 (Unaudited)

 

 

Crypto Assets

   Unrealized appreciation on Futures Contracts*        $         —        Unrealized depreciation on Futures Contracts*        $  (997,995)    
       

 

 

         

 

 

 

Bitwise Ethereum Strategy ETF

               

Crypto Assets

   Unrealized appreciation on Futures Contracts*               $         —        Unrealized depreciation on Futures Contracts*              $  (609,828)    
       

 

 

         

 

 

 

* Includes cumulative unrealized appreciation or unrealized cumulative depreciation on Futures Contracts as disclosed in the Schedule of Investments.

For the period ended June 30, 2024, realized gains/(losses) and the change in unrealized appreciation/(depreciation) on Futures Contracts by risk type, as disclosed in the Statements of Operations, is as follows:

 

Fund

      Risk Type       Realized Gain/ 
(Loss)
   Change in
Unrealized
Appreciation/
 (Depreciation) 

Bitwise Bitcoin and Ether Equal Weight Strategy ETF

   Crypto Asset    $   1,502,269        $   (574,549 )  

Bitwise Bitcoin Strategy Optimum Roll ETF

   Crypto Asset    $ 1,748,659        $ (790,725 )  

Bitwise Ethereum Strategy ETF

   Crypto Asset    $ 1,329,517        $ (637,213 )  

For the period ended June 30, 2024, the average monthly notional volume of derivatives was as follows:

 

 Fund

  

Future Contracts 

(Contract Value) 

 

 Bitwise Bitcoin and Ether Equal Weight Strategy ETF

     $  7,504,422   

 Bitwise Bitcoin Strategy Optimum Roll ETF

     9,702,429   

 Bitwise Ethereum Strategy ETF

     9,204,951   

Reverse repurchase agreements are executed under standardized netting agreements. A netting arrangement creates an enforceable right of set-off that becomes effective, and affects the realization of settlement on individual assets, liabilities and collateral amounts, only following a specified event of default or early termination. Default events may include the failure to make payments or deliver securities timely, material adverse changes in financial condition or insolvency, the breach of minimum regulatory capital requirements, or loss of license, charter or other legal authorization necessary to perform under the contract. These agreements mitigate counterparty credit risk by providing for a single net settlement with a counterparty of all financial transactions covered by the agreement in an event of default as defined under such agreement.

Offsetting of Reverse Repurchase Agreements Liabilities

 

Bitwise Bitcoin and Ether Equal Weight Strategy ETF
                     Gross Amounts Not Offset in the Statements of 
Assets and Liabilities
       Gross Amounts  
of Recognized
Liabilities
     Gross A mounts  
Offset in the
Consolidated
Statements of
Assets and
Liabilities
   Net Amounts
  Presented in the  
Consolidated
Statements of
Assets and
Liabilities
   Financial
  Instruments(a)  
   Collateral
  Pledged(a)  
    Net Amount 
Payable
Reverse Repurchase Agreements    $ 4,387,950    $—     $ 4,387,950    $ 4,387,950    $ 4,387,950    $ —

(a) These amounts are limited to the derivatives asset/liability balance and, accordingly, do not include excess collateral received/pledged.

 

   20   


Bitwise Funds Trust

Notes to Consolidated Financial Statements (Continued)

June 30, 2024 (Unaudited)

 

 

Offsetting of Reverse Repurchase Agreements Liabilities

 

Bitwise Bitcoin Strategy Optimum Roll ETF
                      Gross Amounts Not Offset in the Statements of 
Assets and Liabilities
       Gross Amounts  
of Recognized
Liabilities
     Gross Amounts  
Offset in the
Consolidated
Statements of
Assets and
Liabilities
   Net Amounts
  Presented in the  
Consolidated
Statements of
Assets and
Liabilities
   Financial
  Instruments(a)  
     Collateral  
Pledged(a)
    Net Amount 
Payable
Reverse Repurchase Agreements    $ 4,875,500    $ —    $ 4,875,500    $ 4,875,500    $ 4,875,500    $ —

(a) These amounts are limited to the derivatives asset/liability balance and, accordingly, do not include excess collateral received/pledged.

Offsetting of Reverse Repurchase Agreements Liabilities

 

Bitwise Ethereum Strategy ETF
                      Gross Amounts Not Offset in the Statements of 
Assets and Liabilities
       Gross Amounts  
of Recognized
Liabilities
     Gross Amounts  
Offset in the
Consolidated
Statements of
Assets and
Liabilities
   Net Amounts
  Presented in the  
Consolidated
Statements of
Assets and
Liabilities
   Financial
  Instruments(a)  
   Collateral
  Pledged(a)  
    Net Amount 
Payable
Reverse Repurchase Agreements    $ 6,825,700    $ —    $ 6,825,700    $ 6,825,700    $ 6,825,700    $ —

(a) These amounts are limited to the derivatives asset/liability balance and, accordingly, do not include excess collateral received/pledged.

4. Reverse Repurchase Agreements

Reverse repurchase agreements involve the sale of securities held by the Bitwise Bitcoin Ether Equal Weight Strategy ETF, Bitwise Bitcoin Strategy Optimum Roll ETF and Bitwise Ethereum Strategy ETF with an agreement to repurchase the securities at an agreed-upon price, date and interest payment. The Funds may borrow for investment purposes indirectly using reverse repurchase agreements. Cash received in exchange for securities delivered plus accrued interest payments to be made by the Funds to counterparties are reflected as a liability on the Consolidated Statement of Assets and Liabilities. Interest payments made by the Funds to counterparties are recorded as a component of interest expense on each Fund’s Consolidated Statement of Operations. Borrowing may cause the Funds to liquidate positions under adverse market conditions to satisfy its repayment obligations. The use of reverse repurchase agreements involves risks that are different from those associated with ordinary portfolio securities transactions. The Funds are subject to credit risk (i.e., the risk that a counterparty is or is perceived to be unwilling or unable to meet its contractual obligations) with respect to the security it expects to receive back from a counterparty. If a counterparty becomes bankrupt or fails to perform its obligations, or if any collateral posted by the counterparty for the benefit of the Funds is insufficient or there are delays in the Funds’ ability to access such collateral, the value of an investment in the Funds may decline.

The following table indicates the total amount of reverse repurchased agreements, reconciled to the Bitwise Bitcoin and Ether Equal Weight Strategy ETF liability as of June 30, 2024:

 

       Less than 30 days         30-90 days        Greater than 90 days           Total        

U.S. Government Obligations

   $ 4,387,950    $ —    $ —    $ 4,387,950

The following table indicates the total amount of reverse repurchased agreements, reconciled to the Bitwise Bitcoin Strategy Optimum Roll ETF liability as of June 30, 2024:

 

       Less than 30 days         30-90 days        Greater than 90 days           Total        

U.S. Government Obligations

   $ 4,875,500    $ —    $ —    $ 4,875,500

 

   21   


Bitwise Funds Trust

Notes to Consolidated Financial Statements (Continued)

June 30, 2024 (Unaudited)

 

 

The following table indicates the total amount of reverse repurchased agreements, reconciled to the Bitwise Ethereum Strategy ETF liability as of June 30, 2024:

 

       Less than 30 days         30-90 days        Greater than 90 days           Total        

 U.S. Government Obligations

   $ 6,825,700    $ —    $ —    $ 6,825,700

5. Investment Advisory Agreement and Other Agreements

The Adviser has overall responsibility for the general management and administration of the Funds, subject to the oversight of the Board. Under an investment advisory agreement between the Trust, on behalf of the Funds, and the Adviser (the “Investment Advisory Agreement”), the Adviser is responsible for arranging sub-advisory, transfer agency, custody, fund administration, and all other non-distribution related services for the Funds to operate.

For its investment advisory services to the Funds below, the Adviser is entitled to receive a management fee from each Fund based on the Fund’s average daily net assets, computed and accrued daily and payable monthly, at an annual rate equal to:

 

 Fund    Management Fee 

 Bitwise Bitcoin and Ether Equal Weight Strategy ETF

   0.85%

 Bitwise Bitcoin Strategy Optimum Roll ETF

   0.85%

 Bitwise Ethereum Strategy ETF

   0.85%

For the Bitwise Bitcoin Strategy Optimum Roll ETF, the Adviser has contractually agreed to waive its advisory fees and/or assume as its own expense certain expenses otherwise payable by the Fund to the extent necessary to ensure that total annual fund operating expenses do not exceed 0.85% of average daily net assets until May 1, 2027.

For the period ended June 30, 2024, the Adviser reimbursed the Fund or will reimburse the Fund for broker expenses and other trading expenses.

As of June 30, 2024, the Fund had a receivable from Adviser for $5,277. The Adviser reimbursed the Fund on July 23, 2024.

 

 Fund   

Expenses   

Reimbursed   

 

 Bitwise Bitcoin Strategy Optimum Roll ETF

   $ 30,365     

For the Funds below, the Adviser has contractually agreed to waive its advisory fees and/or assume as its own expense certain expenses otherwise payable by the Funds to the extent necessary to ensure that total annual Fund operating expenses do not exceed 0.85% of average daily net assets until October 2, 2025.

For the period ended June 30, 2024, the Adviser reimbursed the Funds for broker expenses and other trading expenses as follows:

 

 Fund   

Expenses   

Reimbursed   

 

 Bitwise Bitcoin and Ether Equal Weight Strategy ETF

   $ 14,245     

 Bitwise Ethereum Strategy ETF

     13,891     

As of June 30, 2024, the Bitwise Bitcoin and Ether Equal Weight Strategy ETF had a receivable from Adviser for $2,788 and the Bitwise Ethereum Strategy ETF had a receivable from Adviser for $2,618. The Adviser reimbursed both Funds on July 23, 2024.

This unitary management fee is designed to pay each Fund’s expenses and to compensate the Adviser for the services it provides to the Funds. Out of the unitary management fee, the Adviser pays substantially all expenses of the Funds, including the cost of transfer agency, custody, fund administration, legal, audit and other service and license fees. However, the Adviser is not responsible for distribution and service fees payable pursuant to a Rule 12b-1 plan, if any, brokerage commissions and other expenses connected with the execution of portfolio transactions, taxes, interest, and extraordinary expenses.

Vident Asset Management (the “Sub-Adviser”) serves as the Sub-Adviser to the Bitwise Bitcoin Strategy Optimum Roll ETF. In this capacity, the Sub-Adviser is responsible for trading portfolio securities for the Fund, including selecting broker-dealers to execute purchase and sale transactions or in connection with any rebalancing, subject to the supervision of the Adviser and the Board. For its services, the Sub-Adviser is entitled to a fee by the Adviser. The Fund does not directly compensate the Sub-Adviser.

For the Bitwise Bitcoin and Ether Equal Weight Strategy ETF and the Bitwise Ethereum Strategy ETF, the Adviser is responsible for trading portfolio securities for the Funds, including selecting broker-dealers to execute purchase and sale transactions or in connection with any rebalancing.

 

   22   


Bitwise Funds Trust

Notes to Consolidated Financial Statements (Continued)

June 30, 2024 (Unaudited)

 

 

The Bank of New York Mellon, a wholly-owned subsidiary of The Bank of New York Mellon Corporation, serves as Administrator, Custodian, Accounting Agent and Transfer Agent for the Funds.

Foreside Financial Services, LLC (the “Distributor”) serves as the distributor of Creation Units for the Funds on an agency basis. The Distributor does not maintain a secondary market in shares of the Funds.

A Trustee and certain Officers of the Funds are also employees of the Adviser and receive no compensation from the Funds.

6. Fund Share Transactions

The Funds issues and redeems shares at NAV only in large blocks of 25,000 Shares (each block of shares is called a “Creation Unit”). Creation Units are issued and redeemed primarily in-kind for securities but may include cash. Individual shares may only be purchased and sold in secondary market transactions through brokers. Except when aggregated in Creation Units in transactions with Authorized Participants, the shares are not redeemable securities of the Funds.

Fund Shares are listed and traded on the Exchange on each day that the Exchange is open for business (“Business Day”). Each Fund’s Shares may only be purchased and sold on the Exchange through a broker-dealer. Because each Fund’s Shares trade at market prices rather than at their NAV, Shares may trade at a price equal to the NAV, greater than NAV (premium) or less than NAV (discount).

7. Federal Income Taxes

As of December 31, 2023, the aggregate cost of investments for federal income tax purposes, the net unrealized appreciation or depreciation and the aggregated gross unrealized appreciation (depreciation) on investments were as follows:

 

 Fund   

Aggregate

Tax Cost 

    

Net Unrealized

Appreciation

(Depreciation)

  

Aggregate

Gross

Unrealized

 Appreciation 

    

Aggregate

Gross Unrealized

(Appreciation)

 Bitwise Bitcoin and Ether Equal Weight Strategy ETF

   $   2,435,508      $  267,876      $   452,851      $ (184,975)

 Bitwise Bitcoin Strategy Optimum Roll ETF

     3,318,367         379,732      707,345       (327,613)

 Bitwise Ethereum Strategy ETF

     1,787,410         190,939      344,455       (153,516)

The tax character of current year distributions will be determined at the end of the current fiscal year.

8. Subsequent Events

For the period ended July 1, 2024 through August 28, 2024, Bitwise Bitcoin Optimum Roll ETF and Bitwise Ethereum Strategy ETF created 25,000 and 125,000 shares for approximately $1,104,760 and $4,911,529, respectively. Bitwise Bitcoin Optimum Roll ETF and Bitwise Ethereum Strategy ETF redeemed 25,000 and 150,000 shares for approximately $1,087,529 and $6,149,392, respectively.

In preparing these financial statements, management has evaluated events and transactions for potential recognition or disclosure through the date this financial statements were available to be issued. Management has determined that there were no material events that would require disclosure in the Funds’ financial statements other than those disclosed above, which occurred during the period subsequent to June 30, 2024.

 

   23   


Bitwise Bitcoin Strategy Optimum Roll ETF

Additional Information (Unaudited)

 

 

Discount & Premium Information

Information regarding how often shares of the Fund traded on NYSE Arca, as applicable, at a price above (i.e., at a premium) or below (i.e., at a discount) the NAV of the Fund can be found at www.bitwiseinvestments.com.

 

   24   


 

 

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Investment Adviser    Investment Sub-Adviser    Custodian, Administrator,
Bitwise Investment    Vident Asset Management    Securities Lending Agent &
Manager, LLC    1125 Sanctuary Parkway,    Transfer Agent
250 Montgomery Street,    Suite 515    The Bank of New York Mellon
Suite 200    Alpharetta, GA 30009    240 Greenwich Street
San Francisco, CA 94104       New York, NY 10036
Distributor    Independent Registered    Legal Counsel
Foreside Financial    Public Accounting Firm    Chapman and Cutler LLP
Services, LLC    KPMG LLP    320 South Canal Street
Three Canal Plaza, Suite 100    345 Park Avenue    Chicago, IL 60606
Portland, ME 04101    New York, NY 10154   
   Bitwise Funds Trust   
   250 Montgomery Street,   
   Suite 200,   
   San Francisco, CA 94104   


June 30, 2024

Semi-Annual Financial Statements and Other Information

Bitwise Funds Trust

Bitwise Web3 ETF (BWEB)

 

 

 

LOGO


 

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Bitwise Web3 ETF

Table of Contents

 

Schedule of Investments

     4  

Statement of Assets and Liabilities

     7  

Statement of Operations

     8  

Statement of Changes in Net Assets

     9  

Financial Highlights

     10  

Notes to Financial Statements

     11  

Additional Information

     15  

 

 

This report is provided for the general information of shareholders and is not authorized for distribution to prospective investors unless preceded or accompanied by a current prospectus.


Bitwise Web3 ETF

Schedule of Investments

June 30, 2024 (Unaudited)

 

 

        Shares            Value   

Common Stocks – 99.9%

     

Communication Services – 27.9%

     

Alphabet, Inc., Class C

     239      $ 43,838  

Electronic Arts, Inc.

     919        128,044  

Meta Platforms, Inc., Class A

     454        228,916  

ROBLOX Corp., Class A*

     6,272        233,381  

Take-Two Interactive Software, Inc.*

     763        118,639  

Tencent Holdings Ltd.

     861        41,068  
     

 

 

 

        793,886  
     

 

 

 

Consumer Discretionary – 1.3%

     

LVMH Moet Hennessy Louis Vuitton SE

     50        38,240  
     

 

 

 

Consumer Staples – 1.3%

     

L’Oreal SA

     85        37,355  
     

 

 

 

Energy – 1.5%

     

Exxon Mobil Corp.

     372        42,825  
     

 

 

 

Financials – 19.6%

     

Bitcoin Group SE

     76        4,227  

Block, Inc.*

     1,931        124,530  

Coinbase Global, Inc., Class A*

     916        203,563  

Galaxy Digital Holdings Ltd.*

     6,745        78,770  

OSL Group Ltd.*

     7,193        5,067  

Robinhood Markets, Inc., Class A*

     4,405        100,038  

Visa, Inc., Class A

     151        39,633  
     

 

 

 

              555,828  
     

 

 

 

Information Technology – 40.4%

     

Advanced Micro Devices, Inc.*

     249        40,390  

Akamai Technologies, Inc.*

     759        68,371  

Applied Digital Corp.*

     1,816        10,805  

Bit Digital, Inc.*

     2,434        7,740  

Bitdeer Technologies Group, Class A*

     1,173        12,035  

Bitfarms Ltd.*

     6,659        17,179  

Canaan, Inc., ADR*

     6,133        6,132  

Cipher Mining, Inc.*

     3,791        15,733  

Cleanspark, Inc.*

     4,512        71,966  

Cloudflare, Inc., Class A*

     1,712        141,805  

CompoSecure, Inc., Class A

     361        2,455  

Core Scientific, Inc.*

     3,108        28,904  

Hut 8 Corp.*

     706        10,556  

Iris Energy Ltd.*

     2,711        30,607  

Marathon Digital Holdings, Inc.*

     5,615        111,458  

Microsoft Corp.

     99        44,248  

Northern Data AG*

     1,085        27,676  

NVIDIA Corp.

     347        42,868  

Riot Platforms, Inc.*

     5,460        49,904  

Shopify, Inc., Class A*

     3,629        239,696  

Taiwan Semiconductor Manufacturing Co. Ltd., ADR

     255        44,322  

Terawulf, Inc.*

     4,657        20,724  

 

See Notes to Financial Statements.

   4   


Bitwise Web3 ETF

Schedule of Investments (Continued)

June 30, 2024 (Unaudited)

 

 

        Shares            Value   

Common Stocks (continued)

     

Information Technology (continued)

     

Unity Software, Inc.*

     6,217       $ 101,088  
     

 

 

 

        1,146,662  
     

 

 

 

Real Estate – 7.9%

     

Equinix, Inc

     297        224,710  
     

 

 

 

Total Common Stocks (Cost $3,045,422)

        2,839,506  
     

 

 

 

Money Market Funds – 0.2%

     

DWS Government Money Market Series Institutional, 5.25%(a)
(Cost $4,289)

     4,289        4,289  
     

 

 

 

Total Investments – 100.1%
(Cost $3,049,711)

       $ 2,843,795  

Liabilities in Excess of Other Assets – (0.1)%

        (1,794
     

 

 

 

Net Assets – 100.0%

       $    2,842,001  
     

 

 

 

 

*

Non Income Producing

(a)

Rate shown reflects the 7-day yield as of June 30, 2024.

ADR : American Depositary Receipt

Summary of Investment Type 

 

Industry   

% of Net

Assets

 

Information Technology

     40.4

Communication Services

     27.9

Financials

     19.6

Real Estate

     7.9

Energy

     1.5

Consumer Discretionary

     1.3

Consumer Staples

     1.3

Money Market Funds

     0.2

Total Investments

     100.1

Liabilities in Excess of Other Assets

     (0.1 )% 

Net Assets

     100.0

 

See Notes to Financial Statements.

   5   


Bitwise Web3 ETF

Schedule of Investments (Continued)

June 30, 2024 (Unaudited)

 

 

Country Breakdown^

 

Country   

% of Net

Assets

 

United States

     82.2

Canada

     9.4

France

     2.6

China

     2.1

Taiwan

     1.6

Germany

     1.1

Australia

     1.1

Liabilities in Excess of Other Assets

     (0.1 )% 

Total

     100.0

 

^

The Fund’s country breakdown may change over time.

 

See Notes to Financial Statements.

   6   


Bitwise Web3 ETF

Statement of Assets and Liabilities

June 30, 2024 (Unaudited)

 

 

     

Bitwise Web3

ETF

      

Assets

    

Investments, at fair value

   $ 2,843,795    

Receivables:

    

Securities sold

     37,670    

Dividends

     185    

Foreign tax reclaim

     48    
  

 

 

   

Total assets

     2,881,698    
  

 

 

   

Liabilities

    

Due to foreign custodian

     7,136    

Payables:

    

Capital shares

     30,570    

Investment advisory fees

     1,991    
  

 

 

   

Total liabilities

     39,697    
  

 

 

   

Net Assets

   $ 2,842,001    
  

 

 

   

Net Assets Consist of

    

Paid-in capital

   $ 2,769,756    

Distributable earnings (loss)

     72,245    
  

 

 

   

Net Assets

   $ 2,842,001    
  

 

 

   

Number of Common Shares outstanding

     64,000    
  

 

 

   

Net Asset Value, offering and redemption price per share

   $ 44.41    
  

 

 

   

Investments, at cost

   $    3,049,711    
  

 

 

   

 

See Notes to Financial Statements.

   7   


Bitwise Web3 ETF

Statement of Operations

For the Six Months Ended June 30, 2024 (Unaudited)

 

 

     

Bitwise Web3

ETF

    

Investment Income

    

Dividend income*

   $ 4,912    

Expenses

    

Investment advisory fees

     10,003    
  

 

 

 

 

Total expenses

     10,003    
  

 

 

 

 

Net investment income (loss)

     (5,091  
  

 

 

 

 

Realized and Unrealized Gain (Loss)

    

Net realized gain (loss) from:

    

Investments

     (57,666  

In-kind redemptions

     361,951    

Foreign currency transactions

     (3  
  

 

 

 

 

Net realized gain (loss)

     304,282    
  

 

 

 

 

Net change in unrealized appreciation (depreciation) on:

    

Investments

     (273,322  

Foreign currency translations

     20    
  

 

 

 

 

Net unrealized gain (loss)

     (273,302  
  

 

 

 

 

Net realized and unrealized gain (loss)

     30,980    
  

 

 

 

 

Net Increase (Decrease) in Net Assets Resulting from Operations

   $     25,889    
  

 

 

 

 

* Net of foreign tax withheld

   $ 124    

 

See Notes to Financial Statements.

   8   


Bitwise Web3 ETF

Statement of Changes in Net Assets

 

 

        Bitwise Web3 ETF         
    

For the Six

Months

Ended June

30, 2024

(Unaudited)

 

Year Ended

December 31,

2023

    

Increase (Decrease) in Net Assets from Operations

     

Net investment income (loss)

  $ (5,091   $ (4,481  

Net realized gain (loss)

    304,282       612,320    

Net change in net unrealized appreciation (depreciation)

    (273,302     160,537    
 

 

 

 

 

 

 

 

 

Net increase (decrease) in net assets resulting from operations

    25,889       768,376    
 

 

 

 

 

 

 

 

 

Fund Shares Transactions

     

Proceeds from shares sold

    3,566,223 (1)      1,484,996 (2)   

Value of shares redeemed

    (1,793,207 )(1)      (2,614,222 )(2)   
 

 

 

 

 

 

 

 

 

Net increase (decrease) in net assets resulting from fund share transactions

    1,773,016       (1,129,226  
 

 

 

 

 

 

 

 

 

Total net increase (decrease) in net assets

    1,798,905       (360,850  
 

 

 

 

 

 

 

 

 

Net Assets

     

Beginning of period

    1,043,096       1,403,946    
 

 

 

 

 

 

 

 

 

End of period

  $   2,842,001     $   1,043,096    
 

 

 

 

 

 

 

 

 

Changes in Shares Outstanding

     

Shares outstanding, beginning of period

    24,000       64,000    

Shares sold

    80,000 (1)       40,000 (2)    

Shares redeemed

    (40,000 )(1)       (80,000 )(2)    
 

 

 

 

 

 

 

 

 

Shares outstanding, end of period

    64,000       24,000    
 

 

 

 

 

 

 

 

 

 

(1)

Certain proceeds from shares sold and value of shares redeemed were related to the normal fund rebalance process, amounting to $1,802,973 and $(1,793,207), respectively. Shares sold and shares redeemed relating to rebalance activities totaled 40,000 and (40,000), respectively.

(2)

Certain proceeds from shares sold and value of shares redeemed were related to the normal fund rebalance process, amounting to $1,484,996 and $(1,481,231), respectively. Shares sold and shares redeemed relating to rebalance activities totaled 40,000 and (40,000), respectively.

 

See Notes to Financial Statements.

   9   


Bitwise Web3 ETF

Financial Highlights

 

 

Bitwise Web3 ETF

Selected Per Share Data

  

For the Six

Months Ended

June 30, 2024

(Unaudited)

 

Year Ended

December 31,

2023

 

Period Ended

December 31,

2022(a)

Net Asset Value, beginning of period

   $ 43.46     $ 21.94     $ 25.00  
  

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from investment operations:

      

Net investment income (loss)(b)

     (0.09     (0.16     (0.03

Net realized and unrealized gain (loss)

     1.04       21.68       (3.03
  

 

 

 

 

 

 

 

 

 

 

 

Total from investment operations

     0.95       21.52       (3.06
  

 

 

 

 

 

 

 

 

 

 

 

Net Asset Value, end of period

   $         44.41     $         43.46     $         21.94  
  

 

 

 

 

 

 

 

 

 

 

 

Total Return (%)

     2.17 (c)       98.13       (12.25 )(c) 

Ratios to Average Net Assets and Supplemental Data

      

Net Assets, end of period ($millions)

   $ 3     $ 1     $ 1  

Ratio of expenses (%)

     0.85 (d)       0.85       0.85 (d)  

Ratio of net investment income (loss) (%)

     (0.43 )(d)      (0.53     (0.44 )(d) 

Portfolio turnover rate (%)(e)

     13 (c)       32       51 (c)  

 

(a)

For the period October 3, 2022 (commencement of operations) through December 31, 2022.

(b)

Per share amounts have been calculated using the average shares outstanding.

(c)

Not annualized.

(d)

Annualized.

(e)

Excludes the impact of in-kind transactions related to the processing of capital share transactions.

 

See Notes to Financial Statements.

   10   


Bitwise Web3 ETF

Notes to Financial Statements

June 30, 2024 (Unaudited)

 

 

1. Organization

Bitwise Funds Trust (the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end registered management investment company organized on April 28, 2022 as a Delaware Statutory Trust.

As of June 30, 2024, the Trust consists of four investment series of exchange-traded funds (“ETFs”) (each a “Fund” and collectively, the “Funds”) in operation and trading. These financial statements report on the Fund listed below:

Bitwise Web3 ETF

The Fund is a non-diversified series of the Trust.

Bitwise Investment Manager, LLC (the “Adviser”) serves as investment adviser to the Trust and has overall responsibility for the general management and administration of the Fund, subject to the supervision of the Fund’s Board of Trustees (the “Board”). The Fund commenced operations on October 3, 2022.

The Fund offers shares that are listed and traded on the NYSE Arca, Inc. (“NYSE Arca”). Unlike conventional mutual funds, the Fund issues and redeems shares (“Shares” or “Fund Shares”) on a continuous basis, at net asset value (“NAV”), only in large specified lots of 20,000 shares, each called a “Creation Unit”, to authorized participants. An authorized participant is either (i) a broker-dealer or other participant in the clearing process through Continuous Net Settlement System of the National Securities Clearing Corporation or (ii) a Depository Trust Company participant and, in each case, must have executed a participant agreement with the Distributor. Shares are not individually redeemable securities of the Fund, and owners of shares may acquire those shares from the Fund or tender such shares for redemption to the Fund, in Creation Units only.

The Fund seeks investment results that, before fees and expenses, correspond generally to the performance of the Bitwise Web3 Equities Index (the “Index”). Under normal market conditions, the Fund generally invests substantially all, but at least 80%, of its net assets plus borrowings in the securities comprising the Index. The Index provides focused exposure to the equity securities of companies that are well-positioned to benefit from the emergence of Web3 and Web3 technologies.

2. Significant Accounting Policies

The financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”), which require management to make certain estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates. The Fund qualifies as an investment company under Topic 946 of the Accounting Standards Codification of U.S. GAAP. The following is a summary of significant accounting policies followed by the Fund.

Valuation of Investments

The Board has adopted procedures for valuing portfolio securities in circumstances where market quotes are not readily available. In accordance with Rule 2a-5 under the Investment Company Act of 1940, as amended, the Board has designated the Adviser as its valuation designee (the “Valuation Designee”). As Valuation Designee, the Adviser, subject to the oversight of the Board, is responsible for making fair value determinations. The Adviser’s day-to-day responsibilities as Valuation Designee are performed by a valuation committee established by the Adviser (“the Valuation Committee”).

The NAV of the Fund’s shares is calculated each business day as of the close of regular trading on the New York Stock Exchange, generally 4:00 p.m. Eastern Time. NAV per share is calculated by dividing a Fund’s net assets by the number of Fund shares outstanding.

The Fund’s investments are valued using procedures approved by the Board and are generally valued using market valuations (Market Approach). A market valuation generally means a valuation (i) obtained from an exchange, a pricing service, or a major market maker (or dealer) or (ii) based on a price quotation or other equivalent indication of value supplied by an exchange, a pricing service, or a major market maker (or dealer). A price obtained from a pricing service based on such pricing service’s valuation matrix may be considered a market valuation. Any assets or liabilities denominated in currencies other than the U.S. dollar are converted into U.S. dollars at the current market rates on the date of valuation as quoted by one or more sources.

Equity securities are valued at the most recent sale price or official closing price reported on the exchange (U.S. or foreign) or over-the-counter market on which they trade. Securities for which no sales are reported are valued at the calculated mean between the most recent bid and asked quotations on the relevant market or, if a mean cannot be determined, at the most recent bid quotation. Equity securities are generally categorized as Level 1 securities in the fair value hierarchy.

Investments in open-ended investment companies are valued at their reported NAV each business day and are categorized as Level 1.

If market quotations are not readily available, securities will be valued at their fair market value as determined using the “fair value” procedures approved by the Board. Fair value pricing involves subjective judgments and it is possible that the fair value determined for a security may be materially different than the value that could be realized upon the sale of that security. The fair value prices can differ from market prices when they become available or when a price becomes available. The Board designated the Adviser, as Valuation Designee, to perform fair valuation determinations pursuant to the fair valuation procedures approved by the Board. In undertaking these

 

   11   


Bitwise Web3 ETF

Notes to Financial Statements (Continued)

June 30, 2024 (Unaudited)

 

 

determinations, the Adviser’s Valuation Committee may also enlist third party consultants such as an audit firm or financial officer of a security issuer on an as-needed basis to assist in determining a security-specific fair value. These securities are either categorized as Level 2 or 3 of the fair value hierarchy depending on the relevant inputs used. The Board reviews and ratifies the execution of this process and the resultant fair value prices at least quarterly to assure the process produces reliable results.

The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:

 

   

Level 1 – Quoted prices in active markets for identical assets that the Funds have the ability to access.

 

   

Level 2 – Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).

 

   

Level 3 – Significant unobservable inputs (including each Fund’s own assumptions in determining the fair value of investments).

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

The following is a summary of the valuations as of June 30, 2024 for the Fund based upon the three levels defined above:

 

Assets    Level 1   Level 2   Level 3   Total

Common Stocks

   $ 2,839,506       $       $       $ 2,839,506    

Money Market Funds

     4,289                   4,289  
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL

   $    2,843,795     $          —     $          —     $    2,843,795  
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash

Cash consists of cash on deposit with a major financial institution which may exceed federally insured limits. As of June 30, 2024, the

Fund did not hold any cash.

Investment Transactions and Related Income

For financial reporting purposes, investment transactions are reported on the trade date. However, for daily NAV determination, portfolio securities transactions are reflected no later than in the first calculation on the first business day following trade date. Dividend income is recorded on the ex-dividend date. Interest income is recognized on an accrual basis and includes, where applicable, the amortization of premium or accretion of discount based on effective yield. Gains or losses realized on sales of securities are determined using the specific identification method by comparing the identified cost of the security lot sold with the net sales proceeds. Dividend income on the Statements of Operations is shown net of any foreign taxes withheld on income from foreign securities, which are provided for in accordance with each Fund’s understanding of the applicable tax rules and regulations.

Income Tax Information and Distributions to Shareholders

The Fund’s policy is to comply with all requirements of the Internal Revenue Code of 1986, as amended (“the Code”). The Fund intends to qualify for and to elect treatment as a separate Regulated Investment Company (“RIC”) under Subchapter M of the Code. The Fund’s policy is to pay out dividends from net investment income at least annually. Taxable net realized gains from investment transactions, reduced by capital loss carryforwards, if any, will be declared and distributed to shareholders at least annually. The capital loss carryforward amount, if any, will be available to offset future net capital gains. The Fund may occasionally be required to make supplemental distributions at some other time during the year. The Fund reserves the right to declare special distributions if, in its reasonable discretion, such action is necessary or advisable to preserve the status of the Fund as a RIC or to avoid imposition of income or excise taxes on undistributed income. Dividends and distributions to shareholders, if any, will be recorded on the ex-dividend date. The amount of dividends and distributions from net investment income and net realized capital gains will be determined in accordance with federal income tax regulations which may differ from U.S. GAAP. These “book/tax” differences are either considered temporary or permanent in nature. To the extent these differences are permanent in nature, such amounts will be reclassified at the end of the year within the components of net assets based on their federal tax treatment; temporary differences do not require reclassification. The Funds may utilize equalization accounting for tax purposes and designate earnings and profits, including net realized gains distributed to shareholders on redemption of shares, as part of the dividends paid deduction for income tax purposes. Dividends and distributions, which exceed earnings and profits for the full year for tax purposes, will be reported as a tax return of capital.

In accordance with U.S. GAAP requirements regarding accounting for uncertainties in income taxes, management has analyzed the Fund’s tax positions expected to be taken on foreign, federal and state income tax returns for all open tax years and has concluded that no provision for income tax is required in the Fund’s financial statement.

The Fund will recognize interest and penalties, if any, related to uncertain tax positions as income tax expense on the Statement of Operations.

 

   12   


Bitwise Web3 ETF

Notes to Financial Statements (Continued)

June 30, 2024 (Unaudited)

 

 

Foreign Taxes

The Fund may be subject to foreign taxes (a portion of which may be reclaimable) on income, capital gains on investments, certain foreign currency transactions or other corporate events. All foreign taxes are recorded in accordance with the applicable foreign tax regulations and rates that exist in the foreign jurisdictions in which the Fund invests. These foreign taxes, if any, are paid by the Fund and are reflected in its Statement of Operations as follows: foreign taxes withheld at source are presented as a reduction of income, foreign taxes on capital gains from sales of investments and foreign currency transactions are included in its respective net realized gain (loss) categories. Receivables and payables related to foreign taxes, if any, are disclosed in the Fund’s Statement of Assets and Liabilities.

Foreign Currency Translations

The books and records of the Fund are maintained in U.S. dollars. Investment securities and other assets and liabilities denominated in a foreign currency are translated into U.S. dollars at the prevailing exchange rates at period end. Purchases and sales of investment securities, income and expenses are translated into U.S. dollars at the prevailing exchange rates on the respective dates of the transactions.

Net realized and unrealized gains and losses on foreign currency transactions represent net gains and losses between trade and settlement dates on securities transactions, the acquisition and disposition of foreign currencies, and the difference between the amount of net investment income accrued and the U.S. dollar amount actually received. The portion of both realized and unrealized gains and losses on investments that results from fluctuations in foreign currency exchange rates is not separately disclosed, but is included with net realized and unrealized gain/appreciation and loss/depreciation on investments.

3. Investment Advisory Agreement and Other Agreements

The Adviser has overall responsibility for the general management and administration of the Fund, subject to the oversight of the Board. Under an investment advisory agreement between the Trust, on behalf of the Fund, and the Adviser (the “Investment Advisory Agreement”), the Adviser is responsible for arranging sub-advisory, transfer agency, custody, fund administration, and all other non-distribution related services for the Fund to operate.

For its investment advisory services to the Fund, the Adviser is entitled to receive a management fee from the Fund based on the Fund’s average daily net assets, computed and accrued daily and payable monthly, at an annual rate equal to 0.85%.

This unitary management fee is designed to pay the Fund’s expenses and to compensate the Adviser for the services it provides to the Fund. Out of the unitary management fee, the Adviser pays substantially all expenses of the Fund, including the cost of transfer agency, custody, fund administration, legal, audit and other service and license fees. However, the Adviser is not responsible for distribution and service fees payable pursuant to a Rule 12b-1 plan, if any, brokerage commissions and other expenses connected with the execution of portfolio transactions, taxes, interest, and extraordinary expenses.

Vident Asset Management (the “Sub-Adviser”) serves as the Sub-Adviser to the Fund. In this capacity, the Sub-Adviser is responsible for trading portfolio securities for the Fund, including selecting broker-dealers to execute purchase and sale transactions or in connection with any rebalancing, subject to the supervision of the Adviser and the Board. For its services, the Sub-Adviser is entitled to a fee by the Adviser. The Fund does not directly compensate the Sub-Adviser.

The Bank of New York Mellon, a wholly-owned subsidiary of The Bank of New York Mellon Corporation, serves as Administrator, Custodian, Accounting Agent and Transfer Agent for the Fund.

Foreside Financial Services, LLC (the “Distributor”) serves as the distributor of Creation Units for the Fund on an agency basis. The Distributor does not maintain a secondary market in shares of the Fund.

A Trustee and certain Officers of the Fund are also employees of the Adviser and receive no compensation from the Fund.

4. Investment Transactions

The Fund’s purchases and sales of securities, other than short-term securities, U.S. Government Securities and in-kind transactions were as follows:

 

Fund    Purchases     Sales

Bitwise Web3 ETF

   $    322,896     $    306,279    

Securities received and delivered in-kind through subscriptions and redemptions were as follows:

 

Fund    Purchases      Sales

Bitwise Web3 ETF

   $   3,531,075      $ 1,781,595    

 

   13   


Bitwise Web3 ETF

Notes to Financial Statements (Continued)

June 30, 2024 (Unaudited)

 

 

5. Fund Share Transactions

The Fund issues and redeems Shares at NAV only in large blocks of 20,000 Shares (each block of Shares is called a “Creation Unit”). Creation Units are issued and redeemed primarily in-kind for securities but may include cash. Individual Shares may only be purchased and sold in secondary market transactions through brokers. Except when aggregated in Creation Units in transactions with Authorized Participants, the Shares are not redeemable securities of the Fund.

Fund Shares are listed and traded on the Exchange on each day that the Exchange is open for business (“Business Day”). The Fund’s Shares may only be purchased and sold on the Exchange through a broker-dealer. Because the Fund’s Shares trade at market prices rather than at their NAV, Shares may trade at a price equal to the NAV, greater than NAV (premium) or less than NAV (discount).

6. Concentration of Ownership

As of June 30, 2024, Bitwise Asset Management, Inc., the parent company of the Adviser, directly held 6.25% of the Fund’s shares outstanding.

7. Federal Income Taxes

At December 31, 2023, gross unrealized appreciation and depreciation of investments owned by the Fund, based on cost for federal income tax purposes were as follows:

 

Fund    Aggregate Tax Cost   

Net

Unrealized

Appreciation

  (Depreciation)  

    

Aggregate Gross

Unrealized

Appreciation

 

   Aggregate   

   Gross   

   Unrealized   

   (Depreciation)   

Bitwise Web3 ETF

   $           981,523        $    62,245           $  76,090         $      (13,845)    

The tax character of current year distributions will be determined at the end of the current fiscal year.

8. Subsequent Events

In preparing these financial statements, management has evaluated events and transactions for potential recognition or disclosure through the date this financial statements were available to be issued. Management has determined that there were no other material events that would require disclosure in the Fund’s financial statements, which occurred during the period subsequent to June 30, 2024.

 

   14   


Bitwise Web3 ETF

Additional Information (Unaudited)

 

 

Discount & Premium Information

Information regarding how often shares of the Fund traded on NYSE Arca, as applicable, at a price above (i.e., at a premium) or below

(i.e., at a discount) the NAV of the Fund can be found at www.bitwiseinvestments.com.

 

   15   


 

 

 

Investment Adviser

Bitwise Investment

Manager, LLC

250 Montgomery Street,

Suite 200

San Francisco, CA 94104

  

Investment Sub-Adviser

Vident Asset Management

1125 Sanctuary Parkway,

Suite 515

Alpharetta, GA 30009

  

Custodian, Administrator,

Securities Lending Agent &

Transfer Agent

The Bank of New York Mellon

240 Greenwich Street

New York, NY 10036

Distributor

Foreside Financial

Services, LLC

Three Canal Plaza, Suite 100

Portland, ME 04101

  

Independent Registered

Public Accounting Firm

KPMG LLP

345 Park Avenue

New York, NY 10154

  

Legal Counsel

Chapman and Cutler LLP

320 South Canal Street

Chicago, IL 60606

  

Bitwise Funds Trust

250 Montgomery Street,

Suite 200,

San Francisco, CA 94104

  


Item 8. Changes in and Disagreements with Accountants for Open-End Management Investment Companies.

Not applicable.

Item 9. Proxy Disclosures for Open-End Management Investment Companies.

Not applicable.

Item 10. Remuneration Paid to Directors, Officers, and Others of Open-End Management Investment Companies.

Included under Item 7.

Item 11. Statement Regarding Basis for Approval of Investment Advisory Contract.

Any Statement Regarding Basis for Approval of Investment Advisory Contract is included as part of the financial statements filed under Item 7 of this form.

Item 12. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Not applicable.

Item 13. Portfolio Managers of Closed-End Management Investment Companies.

Not applicable.

Item 14. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.

Not applicable.

Item 15. Submission of Matters to a Vote of Security Holders.

There have been no material changes to the procedures by which the shareholders may recommend nominees to the registrant’s board of directors, where those changes were implemented after the registrant last provided disclosure in response to the requirements of Item 407(c)(2)(iv) of Regulation S-K (17 CFR 229.407) (as required by Item 22(b)(15) of Schedule 14A (17 CFR 240.14a-101)), or this Item.

Item 16. Controls and Procedures.

 

(a)

The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph, based on their evaluation of these controls and procedures


 

required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or 240.15d-15(b)).

 

(b)

There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d))) that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 17. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.

Not applicable.

Item 18. Recovery of Erroneously Awarded Compensation.

Not Applicable.

Item 19. Exhibits.

 

(a)(1)    Not applicable.
(a)(2)    Not applicable for semi-annual reporting period.
(a)(3)   

Certifications pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 of the Sarbanes-Oxley Act of 2002 are attached hereto.

 

(a)(3)(1)   

There were no written solicitations to purchase securities under Rule 23c-1 under the Act sent or given during the period covered by the report by or on behalf of the Registrant to 10 or more persons.

(a)(3)(2)   

There was no change in the Registrant’s independent public accountant during the period covered by the report.

  (b)   

Certifications pursuant to Rule 30a-2(b) under the 1940 Act and Section 906 of the Sarbanes- Oxley Act of 2002 are attached hereto.


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

(Registrant)     Bitwise Funds Trust   
By (Signature and Title)*    /s/ Paul Fusaro, President   
   Paul Fusaro, President   
   (principal executive officer)   
Date:    August 29, 2024   

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

 

By (Signature and Title)*    /s/ Paul Fusaro, President   
   Paul Fusaro President   
   (principal executive officer)   
Date:  August 29, 2024      
By (Signature and Title)*    /s/ James Gallo, Treasurer   
   James Gallo, Treasurer   
   (principal financial officer)   
Date:  August 29, 2024   

 

* 

Print the name and title of each signing officer under his or her signature.