Bitwise pitched a diversified 10-crypto fund, then lost $500 million as Bitcoin swallowed 78% of the portfolio
Bitwise’s 10 Crypto Index ETF ended the first half of 2026 with practically half the web property it began with, whereas its 10-asset basket grew to become extra concentrated in Bitcoin.
Net property at BITW fell 48.27%, from $1.03 billion on Dec. 31 to $532.8 million on June 30, based on the fund’s quarterly filing. That contraction was not the return skilled by an investor: the fund reported a destructive 36.16% Principal Market NAV whole return per share for the six months, whereas its excellent share rely declined 18.97%.
The net-asset change mixed two forces. Market efficiency diminished the worth of every share, whereas web redemptions diminished the quantity of shares excellent.
Losses, redemptions and a heavier Bitcoin tilt
Operations diminished BITW’s web property by $339.4 million throughout the six-month interval. The fund recorded $430.7 million of unrealized depreciation and a $2.8 million web funding loss, partly offset by $94.1 million of realized beneficial properties.
Capital-share transactions accounted for one more $157.7 million discount. BITW recorded $161.2 million of redemptions towards $3.5 million of creations, whereas shares excellent fell from 17,451,947 to 14,141,947.
Those redemptions occurred via licensed contributors, the monetary corporations permitted to transact immediately with the belief in 10,000-share blocks. The submitting doesn’t determine the final traders behind these transactions, so the figures don’t set up retail flight.
A separate cash-flow line exhibits $178.3 million paid for redemptions. The distinction displays timing: the money determine contains the $161.2 million current-period redemptions plus settlement of a $17.1 million redemption payable excellent at the finish of 2025.
BITW’s funding schedules present Bitcoin rising from 75.11% of shareholders’ fairness in December to 77.81% in June. Ethereum moved in the wrong way, falling from 15.41% to 12.59%.
The constituents modified as properly. Hyperliquid and Stellar appeared in the June schedule, whereas Avalanche and Polkadot, which have been current in December, have been absent.
The disclosures don’t attribute these shifts to at least one trigger. BITW says it rebalances month-to-month in keeping with an index ruled by rules-based reconstitution and weighting. Relative asset costs, redemption-related gross sales and scheduled rebalancing are doable mechanisms, however the submitting doesn’t quantify their contributions.
The submitting additionally doesn’t set up whether or not the basket cushioned losses relative to Bitcoin or one other benchmark. It does present that BITW suffered a steep first-half drawdown and that the June portfolio ended with a bigger share tied to Bitcoin.
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