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 nearly half the net assets it started with, while its 10-asset basket became more concentrated in Bitcoin.Net assets at BITW fell 48.27%, from $1.03 billion on Dec. 31 to $532.8 million on June 30, according to the fund’s quarterly filing. That contraction was not the return experienced by an investor: the fund reported a negative 36.16% Principal Market NAV total return per share for the six months, while its outstanding share count declined 18.97%.The net-asset change combined two forces. Market performance reduced the value of each share, while net redemptions reduced the number of shares outstanding.Losses, redemptions and a heavier Bitcoin tiltOperations reduced BITW’s net assets by $339.4 million during the six-month period. The fund recorded $430.7 million of unrealized depreciation and a $2.8 million net investment loss, partly offset by $94.1 million of realized gains.Capital-share transactions accounted for another $157.7 million reduction. BITW recorded $161.2 million of redemptions against $3.5 million of creations, while shares outstanding fell from 17,451,947 to 14,141,947.Those redemptions occurred throu...