Bitwise Bitcoin ETF (BITB) 10-K 27 Mar 24 2023 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2023	Mar. 22, 2024	Jun. 30, 2023
Cover [Abstract]
Entity Registrant Name	BITWISE BITCOIN ETF
Document Type	10-K
Document Annual Report	true
Amendment Flag	false
Document Period End Date	Dec. 31, 2023
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	FY
Current Fiscal Year End Date	--12-31
Document Financial Statement Error Correction [Flag]	false
Entity Central Index Key	0001763415
Trading Symbol	BITB
Entity Filer Category	Non-accelerated Filer
Entity Well-known Seasoned Issuer	No
Entity Current Reporting Status	No
Entity Voluntary Filers	No
Entity Common Stock, Shares Outstanding		55,090,000
Entity Public Float			$ 0
Entity Emerging Growth Company	true
Entity Small Business	true
Entity Ex Transition Period	false
Entity Shell Company	false
ICFR Auditor Attestation Flag	false
Entity File Number	001-41902
Entity Tax Identification Number	83-6613214
Entity Address, Address Line One	250 Montgomery Street
Entity Address, Address Line Two	Suite 200
Entity Address, City or Town	San Francisco
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	94104
City Area Code	415
Local Phone Number	707-3663
Document Transition Report	false
Entity Incorporation, State or Country Code	DE
Entity Interactive Data Current	Yes
Title of 12(b) Security	Bitwise Bitcoin ETF Shares
Security Exchange Name	NYSEArca
Auditor Firm ID	185
Auditor Name	KPMG LLP
Auditor Location	New York

Statement of Assets and Liabili

Statement of Assets and Liabilities	Dec. 31, 2023 USD ($) $ / shares
Assets
Cash	$ 200
Total assets	200
Liabilities
Liabilities	0
Net Assets	200
Net assets consist of:
Capital stock at $50.00 per share	200
Net Assets	200
Shares issued and outstanding, no par value, unlimited amount authorized	$ 4
Net Asset Value Per Share | $ / shares	$ 50

Statement of Assets and Liabi_2

Statement of Assets and Liabilities (Parenthetical)	12 Months Ended
	Dec. 31, 2023 $ / shares
Statement of Financial Position [Abstract]
Capital stock per share	$ 50
Common stock, no par value	$ 0
Common Stock, Shares Authorized, Unlimited [Fixed List]	Unlimited

Statement of Changes in Net Ass

Statement of Changes in Net Assets	2 Months Ended
	Dec. 31, 2023 USD ($) shares
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest [Abstract]
Net investment loss	$ 0
Net realized gain on investment in Bitcoin	0
Net change in unrealized appreciation (depreciation) on investment in Bitcoin	0
Net increase (decrease) in net assets resulting from operations	0
Increase in net assets from capital share transactions:
Net increase in net assets resulting from capital share transactions	200
Total increase (decrease) in net assets from operations and capital share transactions	200
Increase (decrease) in net assets	200
Asset Net [Abstract]
Beginning of period	0
End of period	$ 200
Increase (Decrease) in Partners' Capital [Roll Forward]
Shares outstanding at beginning of period | shares	0
Shares issued | shares	4
Shares redeemed | shares	0
Net increase (decrease) in Shares outstanding | shares	4
Shares outstanding at end of period | shares	4

Statement of Cash Flows

Statement of Cash Flows	2 Months Ended
	Dec. 31, 2023 USD ($)
Cash Provided by Operating Activities
Net increase (decrease) in net assets resulting from operations	$ 0
Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash provided by operating activities:
Proceeds from bitcoin sold to pay expenses	0
Change in operating assets and liabilities:
Sponsor's fees payable	0
Net cash provided by operating activities	0
Cash Provided by Financing Activities
Proceeds from issuance of capital shares	200
Net cash provided by financing activities	200
Cash
Net increase (decrease in cash)	200
Cash, beginning of period	0
Cash, end of period	$ 200

Organization

Organization	12 Months Ended
	Dec. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization	1. ORGANIZATION Bitwise Bitcoin ETF (the “Trust”), formerly Bitwise Bitcoin ETP Trust, is an investment trust organized on August 29, 2019 under Delaware law pursuant to a Declaration of Trust and Trust Agreement (the “Trust Agreement”). The Trust’s investment objective is to seek to provide exposure to the value of bitcoin held by the Trust, less the expenses of the Trust’s operations, generally just the Sponsor’s management fee. In seeking to achieve its investment objective, the Trust’s sole asset is expected to be bitcoin. The Trust is an Exchange Traded Product (“ETP”) that issues common shares of beneficial interest (“Shares”) that are anticipated to be listed on the NYSE Arca, Inc. (the “Exchange”) under the ticker symbol “BITB,” providing investors with an efficient means to obtain market exposure to the price of bitcoin. Bitwise Investment Advisers, LLC (the “Sponsor”) serves as the Sponsor for the Trust. The Sponsor arranged for the creation of the Trust and is responsible for the ongoing registration of the Shares for their public offering in the U.S. and the listing of Shares on the Exchange. The Sponsor will develop a marketing plan for the Trust, will prepare marketing materials regarding the Shares, and will operate the marketing plan of the Trust on an ongoing basis. The Sponsor also oversees the additional service providers of the Trust and exercises managerial control of the Trust as permitted under the Trust Agreement. The Sponsor has agreed to pay all operating expenses (except for litigation expenses and other extraordinary expenses) out of the Sponsor’s management fee. Delaware Trust Company acts as the trustee of the Trust for the purpose of creating a Delaware statutory trust in accordance with the Delaware Statutory Trust Act (“DSTA”). The Trustee is appointed to serve as the trustee of the Trust in the State of Delaware for the sole purpose of satisfying the requirement of Section 3807(a) of the DSTA that the Trust have at least one trustee with a principal place of business in the State of Delaware. As of December 31, 2023, the Trust has had no operations other than those actions relating to organizational and registration matters, including the sale and issuance of the Trust’s shares to Bitwise Asset Management, Inc. ("BAM"), the parent company of the Sponsor, the sole shareholder of four ( 4 ) shares of the Trust. Proceeds from the issuance of these shares were held in cash as presented on the Trust’s statement of assets and liabilities. In the ordinary course of operation, the Trust will purchase and sell bitcoin directly and it will create or redeem its Shares in cash-settled transactions in blocks of 10,000 Shares at the Trust’s net asset value per Share and only in transactions with financial firms that are authorized to purchase or redeem Shares with the Trust (each, an “Authorized Participant”). An Authorized Participant will deliver, or cause to be delivered, cash to the Trust when it purchases Shares from the Trust, and the Trust will deliver cash to an Authorized Participant, or its designee, when it redeems Shares with the Trust. Authorized Participants, and their customers, may then, in turn, offer Shares to the public at prices that depend on various factors, including the supply and demand for Shares, the value of the Trust’s assets, and market conditions at the time of a transaction. Investors who buy or sell Shares during the day from their broker may do so at a premium or discount relative to the net asset value of the Shares.

Significant Accounting Policies

Significant Accounting Policies	12 Months Ended
	Dec. 31, 2023
Accounting Policies [Abstract]
Significant Accounting Policies	2. SIGNIFICANT ACCOUNTING POLICIES The following is a summary of significant accounting policies consistently followed by the Trust in the preparation of its financial statements. The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). The Trust is an investment company and follows the specialized accounting and reporting guidance in the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC” or “Codification”) Topic 946, Financial Services—Investment Companies. Use of Estimates The preparation of the financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of these financial statements. Actual results could differ from those estimates. Indemnifications In the normal course of business, the Trust enters into contracts that contain a variety of representations which provide general indemnifications. The Trust’s maximum exposure under these arrangements cannot be known; however, the Trust expects any risk of loss to be remote. Cash Cash includes non-interest bearing non-restricted cash with one institution. Cash in a bank deposit account, at times, may exceed U.S. federally insured limits. The Trust has not experienced any losses in such accounts and does not believe it is exposed to any significant credit risk on such bank deposits. Income Taxes The Trust will be classified as a “grantor trust” for United States federal income tax purposes. As a result, the Trust itself will not be subject to United States federal income tax. Instead, the Trust’s income and expenses will “flow through” to the shareholders, and the Bank of New York Mellon (the “Administrator”), will report the Trust’s income, gains, losses and deductions to the Internal Revenue Service on that basis. As of December 31, 2023, no amounts had “flowed through” to the shareholder. Organizational and offering costs The costs of the Trust’s organization and the initial offering of the Shares will be borne directly by the Sponsor. The Trust will not be obligated to reimburse the Sponsor.

Agreements

Agreements	12 Months Ended
	Dec. 31, 2023
Related Party Transactions [Abstract]
Agreements	3. AGREEMENTS As the Trust has had no operations other than those actions relating to organizational and registration matters, including the sale and issuance of the Trust’s shares to BAM, the Sponsor has not yet begun to charge the Trust an annual management fee, which it anticipates charging once operations commence. Once operations commence, the Trust is expected to pay an annualized management fee to the Sponsor ("Sponsor Fee") as compensation for services performed under the Trust Agreement. At December 31, 2023 the Sponsor had not yet determined the amount of such fee. In exchange for the Sponsor Fee, the Sponsor has agreed to assume and pay all ordinary expenses of the Trust, including the Trustee’s fee and out-of-pocket expenses, the fees of the Trust’s regular service providers, Exchange listing fees, SEC registration fees, SEC filing costs, audit fees and ordinary legal expenses. The Sponsor’s Fee is paid by delivery of bitcoin, monthly on the last Business Day of the month in respect of fees payable for the month. The delivery is of that number of bitcoin which equals the daily accrual of the Sponsor’s Fee for such prior month. The Sponsor, from time to time, may temporarily waive all or a portion of the Sponsor’s Fee at its discretion for a stated period of time. At the date of these financial statements, there were no amounts payable to related parties.

Beneficial Ownership

Beneficial Ownership	12 Months Ended
	Dec. 31, 2023
Beneficial Ownership [Abstract]
Beneficial Ownership	4. BENEFICIAL OWNERSHIP As of the date of these financial statements, BAM owned 100 % of the outstanding Shares of the Trust.

Subsequent Events

Subsequent Events	12 Months Ended
	Dec. 31, 2023
Subsequent Events [Abstract]
Subsequent Events	5. SUBSEQUENT EVENTS On January 5, 2024, Bitwise Investment Manager, LLC (“BIM”), an affiliate of the Sponsor, purchased 10,010 Shares of the Trust for $ 500,500 . On January 10, 2024, BAM redeemed the entirety of its 4 Shares for $ 200 and BIM redeemed the entirety of its 10,010 Shares for $ 500,500 . Following the redemptions, on January 10, 2024, the Trust formally revised its NAV per Share from $ 50.00 per Share to $ 25.00 per Share. Additionally, on January 10, 2024, BIM purchased the initial 100,000 Shares of the Trust (the “Seed Baskets”) for $ 2,500,000 , at $ 25.00 per share. BIM acted as a statutory underwriter in connection with the initial purchase of the Seed Baskets. The Trust's registration statement on Form S-1 relating to its continuous public offering of Shares was declared effective by the U.S. Securities and Exchange Commission on January 10, 2024 and the Shares of the Trust were listed on the NYSE Arca on January 11, 2024. During January 11, 2024, BIM sold all of its 100,000 Shares of the Trust for cash. The Sponsor set the Sponsor Fee at 0.20 % per annum of the Trust's bitcoin holdings and agreed to waive the entire Sponsor Fee on the first $ 1 billion of Trust assets until July 11, 2024. Other than the items noted above there were no subsequent events requiring adjustment or additional disclosure in the financial statements.

Significant Accounting Polici_2

Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2023
Accounting Policies [Abstract]
Use of Estimates	Use of Estimates The preparation of the financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of these financial statements. Actual results could differ from those estimates.
Indemnifications	Indemnifications In the normal course of business, the Trust enters into contracts that contain a variety of representations which provide general indemnifications. The Trust’s maximum exposure under these arrangements cannot be known; however, the Trust expects any risk of loss to be remote.
Cash	Cash Cash includes non-interest bearing non-restricted cash with one institution. Cash in a bank deposit account, at times, may exceed U.S. federally insured limits. The Trust has not experienced any losses in such accounts and does not believe it is exposed to any significant credit risk on such bank deposits.
Income Taxes	Income Taxes The Trust will be classified as a “grantor trust” for United States federal income tax purposes. As a result, the Trust itself will not be subject to United States federal income tax. Instead, the Trust’s income and expenses will “flow through” to the shareholders, and the Bank of New York Mellon (the “Administrator”), will report the Trust’s income, gains, losses and deductions to the Internal Revenue Service on that basis. As of December 31, 2023, no amounts had “flowed through” to the shareholder.
Organizational and offering costs	Organizational and offering costs The costs of the Trust’s organization and the initial offering of the Shares will be borne directly by the Sponsor. The Trust will not be obligated to reimburse the Sponsor.

Organization - Additional Infor

Organization - Additional Information (Details)	Dec. 31, 2023 shares
Redemption Shares
Organization [Line items]
Number of shares in cash-settled transactions in blocks at trust	10,000

Agreements - Additional Informa

Agreements - Additional Information (Details)	Dec. 31, 2023 USD ($)
Related Party
Related Party Transaction [Line Items]
Amounts payable to related parties	$ 0

Beneficial Ownership - Addition

Beneficial Ownership - Additional Information (Details)	Dec. 31, 2023
Bitwise Asset Management, Inc.
Beneficial Ownership [Line Items]
Percentage of outstanding shares owned	100%

Subsequent Events - Additional

Subsequent Events - Additional Information (Details) - USD ($)				6 Months Ended
	Jan. 11, 2024	Jan. 10, 2024	Jan. 05, 2024	Jul. 11, 2024	Dec. 31, 2023
Subsequent Event [Line Items]
NAV per share					$ 50
Sponsor | Forecast
Subsequent Event [Line Items]
Sponsor fee percentage				0.20%
Sponsor fee waived				$ 1,000,000,000
Subsequent Event
Subsequent Event [Line Items]
NAV per share		$ 25
Subsequent Event | BAM
Subsequent Event [Line Items]
Redemption of shares, value		$ 200
Shares redeemed		4
Subsequent Event | BIM
Subsequent Event [Line Items]
Purchase price per share		$ 25
Purchase of shares, value		$ 2,500,000	$ 500,500
Redemption of shares, value		$ 500,500
Shares issued		100,000	10,010
Shares redeemed		10,010
Shares sold for cash	100,000

Uncategorized Items - bitb-2023

Label	Element	Value
Number of Shares of Sole Shareholder	bitb_NumberOfSharesOfSoleShareholder	4
Minimum Number Of Trustee Should Available In Trust	bitb_MinimumNumberOfTrusteeShouldAvailableInTrust	1