10-Q: Fidelity Wise Origin Bitcoin Fund Reports Q1 2025 Results: Net Assets Decrease Amid Bitcoin Price Decline
Quarterly Report
Fidelity Wise Origin Bitcoin Fund's net assets decreased in Q1 2025 due to a fall in bitcoin price and a decrease in outstanding shares.
Summary
- Fidelity Wise Origin Bitcoin Fund reported its Q1 2025 results, showing a decrease in net assets from $18.8 billion on December 31, 2024, to $16.3 billion on March 31, 2025.
- The decrease was attributed to a fall in the price of bitcoin by 11.15% and a decrease in outstanding shares.
- Outstanding shares decreased from 230,678,476 to 225,528,476 during the quarter, with 31,600,000 shares issued and 36,750,000 shares redeemed.
- The fund's NAV per share decreased by 11.54% from $81.80 to $72.36.
- The quantity of bitcoin held by the fund decreased from 201,556.08413894 to 196,932.77464322 during the quarter due to net redemptions.
- The net decrease in net assets resulting from operations for the three months ended March 31, 2025, was $2.2 billion, primarily due to a net change in unrealized depreciation on investment in bitcoin of $2.0 billion and a net realized loss of $238.3 million from the sale of bitcoin for share redemptions.
- In contrast, for the quarter ended March 31, 2024, the fund's net assets increased significantly due to an increase in outstanding shares and a rise in the price of bitcoin.
Sentiment
Score: 4
Explanation: The report indicates a negative trend with decreasing assets and NAV, driven by a decline in Bitcoin's price. While the fund is passively managed and tracks an index, the overall sentiment is subdued due to the unfavorable financial results.
Negatives
- The fund experienced a decrease in net assets, bitcoin holdings, and NAV per share during Q1 2025.
- The price of bitcoin, the fund's primary asset, fell during the quarter.
- The fund reported a net decrease in net assets resulting from operations of $2.2 billion.
Risks
- The Trust's investment strategy is concentrated in a single asset, bitcoin, which exposes it to market risks associated with bitcoin and digital assets.
- The price of bitcoin is volatile and difficult to predict, which can significantly impact the fund's NAV.
- The fund's NAV may be affected by government regulation, security breaches, and political and economic uncertainties.
Future Outlook
The report contains forward-looking statements regarding future events and performance, which are subject to risks, uncertainties, and other factors that could cause actual results to differ materially.
Industry Context
The performance of the Fidelity Wise Origin Bitcoin Fund is directly tied to the performance of bitcoin, reflecting the broader trends and volatility in the cryptocurrency market.
Comparison to Industry Standards
- The report does not provide a direct comparison to industry standards or specific competitors.
- However, the fund's performance can be benchmarked against other Bitcoin ETFs and the overall performance of bitcoin itself.
- The Sponsor Fee of 0.25% is a key factor in evaluating the fund's competitiveness compared to other similar investment products.
Related Party Transactions
- Fidelity Service Company, Inc., an affiliate of the Sponsor, serves as the Trusts administrator.
- Fidelity Digital Asset Services, LLC, an affiliate of the Sponsor, serves as the Trusts bitcoin custodian.
- Fidelity Distributors Company LLC, an affiliate of the Sponsor, is responsible for reviewing and approving the marketing materials prepared by the Sponsor.
- Fidelity Product Services LLC, an affiliate of the Sponsor, is responsible for the methodology and oversight of the Index.
Stakeholder Impact
- Shareholders experienced a decrease in the value of their shares due to the decline in bitcoin price and NAV per share.
- Authorized Participants engaged in both share creation and redemption activities during the quarter.
Key Dates
| Date | Description |
|---|---|
| March 17, 2021 | Fidelity Wise Origin Bitcoin Fund formed as a Delaware Statutory Trust. |
| November 30, 2023 | Sale and issuance of one Share of the Trust to an affiliate at $40. |
| December 14, 2023 | The Trust contractually agreed to pay the Sponsor a unified fee of 0.25% of the Trusts Bitcoin Holdings. |
| January 9, 2024 | The Seed Share was redeemed for cash and the Seed Capital Investor purchased 500,000 Shares at $40. |
| January 9, 2024 | The Trust and the Sponsor entered into a Fee Waiver Agreement in which the Sponsor agreed to waive the entirety of the Sponsor Fee through July 31, 2024. |
| January 10, 2024 | The Trust was declared effective. |
| January 11, 2024 | The Trust commenced operations and Shares commenced trading on Cboe BZX Exchange, Inc. |
| July 31, 2024 | The Waiver ended pursuant to the terms of the Fee Waiver Agreement. |
| August 6, 2024 | Date of Prospectus (Registration No. 333-254652). |
| December 31, 2024 | Net assets were approximately $18.8 billion. |
| March 31, 2025 | Quarterly period end date. |
| May 6, 2025 | The registrant had 226,878,476 outstanding shares. |
| May 9, 2025 | Date of report. |
Keywords
Bitcoin, Fidelity Wise Origin Bitcoin Fund, Net Assets, NAV, Bitcoin Price, Shares, Redemption, Sponsor Fee, ETF
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