Bitwise 10 Crypto Index ETF Suffers Steep First-Half Drawdown

Bitwise, a leading provider of crypto investment products, suffered significant losses in the first half of 2026. The Bitwise 10 Crypto Index ETF saw its net assets decline by nearly half, from $1.03 billion to $532.8 million. This loss was largely due to market performance and redemptions.

The fund's portfolio became increasingly concentrated in Bitcoin, with the cryptocurrency rising to 77.81% of shareholders' equity by June. In contrast, Ethereum's share declined to 12.59%. The addition of new assets, Hyperliquid and Stellar, did not offset the decline in other assets, such as Avalanche and Polkadot.

The fund's quarterly filing revealed that operations reduced its net assets by $339.4 million during the six-month period. Market performance accounted for a significant portion of this loss, with $430.7 million of unrealized depreciation recorded. Additionally, capital-share transactions contributed to the decline in net assets, with $157.7 million reduction due to redemptions and creations.