Quarterly Report for Quarter Ending June 30, 2026 (Form 10-Q)

Management's Discussion and Analysis of Financial Condition and Results of Operations.

The following discussion and analysis of the Trust's financial condition and results of operations should be read together with, and is qualified in its entirety by reference to, the Trust's unaudited financial statements and related notes included elsewhere in this Quarterly Report, which have been prepared in accordance with generally accepted accounting principles in the United States ("U.S. GAAP"). The following discussion may contain forward-looking statements based on assumptions the Trust believes to be reasonable. The Trust's actual results could differ materially from those discussed in these forward-looking statements. See "Statement Regarding Forward-Looking Statements" above.

You should not place undue reliance on any forward-looking statements. Except as expressly required by the Federal securities laws, the Trust and the Sponsor undertake no obligation to publicly update or revise any forward-looking statements or the risks, uncertainties or other factors described in this Quarterly Report, as a result of new information, future events or changed circumstances or for any other reason after the date of this Quarterly Report.

Trust Overview

Bitwise Bitcoin ETF (the "Trust") is a Delaware statutory trust formed on August 29, 2019. The Trust continuously issues common shares ("Shares"), representing units of undivided beneficial ownership of the Trust. The Shares are listed on the NYSE Arca Inc. (the "Exchange") under the ticker symbol "BITB." The Trust's commencement of operations was January 10, 2024. The Trust is sponsored and managed by Bitwise Investment Advisers, LLC (the "Sponsor").

The Trust's investment objective is to seek to provide shareholders of the Trust ("Shareholders") with exposure to the value of bitcoin held by the Trust that is reflective of the actual bitcoin market in which investors can purchase or sell bitcoin, less the expenses of the Trust's operations and other liabilities. In seeking to achieve its investment objective, the Trust holds bitcoin and establishes its net asset value ("NAV") by reference to the CME CF Bitcoin Reference Rate - New York Variant ("BRRNY"). The BRRNY was designed to provide a daily, 4:00 p.m. ET reference rate of the U.S. dollar price of one bitcoin and is calculated by CF Benchmarks Ltd. (the "Benchmark Provider") based on an aggregation of executed trade flow of major bitcoin trading platforms ("Constituent Platforms").

The Shares may trade at a premium over, or a discount to, the NAV per-share as a result of price volatility, trading volume and closings of the exchanges on which the Sponsor purchases bitcoin on behalf of the Trust due to fraud, failure, security breaches or otherwise, and the fact that supply and demand forces at work in the secondary trading market for Shares are related, but not identical, to the supply and demand forces influencing the market price of bitcoin. As a result of the foregoing, the price of the Shares as quoted on the Exchange has varied from the value of the Trust's NAV per-share since the Shares were approved for quotation on January 11, 2024.

Results of Operations

For the three months and six months ended June 30, 2026 compared to the three months and six months ended June 30, 2025^

1. Net assets in the above table are calculated in accordance with U.S. GAAP based on the principal market price for bitcoin that the Trust considered its principal market, as of 4:00 p.m., New York time, on the valuation date.

Three months ended June 30, 2026

During the three months ended June 30, 2026, the Trust's net assets decreased from $2,549,070 on March 31, 2026 to $2,125,612 on June 30, 2026. The decrease in the Trust's net assets resulted primarily from dispositions of approximately (20) bitcoin to pay the Sponsor Fee, and approximately (3,790) bitcoin for the redemption of Shares, with a value of $(278,440) from the Trust. Dispositions were partially offset by additions to the Trust of approximately 2,416 bitcoin with a value of $181,957 in connection with Share creations during the period.

Net realized and change in unrealized loss on investment in bitcoin for the three months ended June 30, 2026 was $(327,054), which included a realized gain of $643 on the transfer of bitcoin to pay the Sponsor Fee, a realized loss of $(3,801) on the sale of bitcoin to meet redemptions, a realized gain of $36,526 from the transfer of bitcoin to meet In-Kind Redemptions, and a change in unrealized depreciation on investment in bitcoin of $(360,422). Net realized and change in unrealized loss on investment in bitcoin for the period resulted primarily from bitcoin price depreciation from $67,831.76 on March 31, 2026 to $58,605.41 on June 30, 2026. Net decrease in net assets resulting from operations for the three months ended June 30, 2026 was $(328,393), which consisted of the net realized and unrealized loss on investment in bitcoin, less the Sponsor Fee of $(1,339).

Three months ended June 30, 2025

By comparison, during the three months ended June 30, 2025, the Trust's net assets increased from $3,132,666 on March 31, 2025 to $4,257,654 on June 30, 2025. The increase in the Trust's net assets resulted primarily from additions of approximately 5,882 bitcoin with a value of $576,064 in connection with Share creations during the period. Additions were partially offset by dispositions from the Trust of approximately (4,347) bitcoin with a value of $(411,952) in connection with Share redemptions and (19) bitcoin with a value of $(1,776) to pay the Sponsor Fee during the period.

During the three months ended June 30, 2025, net realized and change in unrealized gain on investment in bitcoin was $962,765, which included a realized gain of $1,032 on the transfer of bitcoin to pay the Sponsor Fee, a realized gain of $21,271 on the sale of bitcoin to meet redemptions, and a change in unrealized appreciation on investment in bitcoin of $940,462. Net realized and change in unrealized gain on investment in bitcoin for the period resulted primarily from bitcoin price appreciation from $82,982.75 on March 31, 2025 to $107,487.49 on June 30, 2025. Net increase in net assets resulting from operations for the three months ended June 30, 2025 was $960,877, which consisted of the net realized and unrealized gain on investment in bitcoin, less the Sponsor Fee of $(1,888).

Six months ended June 30, 2026

During the six months ended June 30, 2026, the Trust's net assets decreased from $3,367,050 on December 31, 2025 to $2,125,612 on June 30, 2026. The decrease in the Trust's net assets resulted primarily from dispositions of approximately (40) bitcoin to pay the Sponsor Fee, and approximately (11,602) bitcoin for the redemption of Shares, with a value of $(887,931) from the Trust. Dispositions were partially offset by additions to the Trust of approximately 9,381 bitcoin with a value of $740,518 in connection with Share creations during the period.

Net realized and change in unrealized loss on investment in bitcoin for the six months ended June 30, 2026 was $(1,094,244), which included a realized gain of $1,455 on the transfer of bitcoin to pay the Sponsor Fee, a realized loss of $(35,191) on the sale of bitcoin to meet redemptions, a realized gain of $45,336 from the transfer of bitcoin to meet In-Kind Redemptions, and a change in unrealized depreciation on investment in bitcoin of $(1,105,844). Net realized and change in unrealized loss on investment in bitcoin for the period resulted primarily from bitcoin price depreciation from $87,315.53 on December 31, 2025 to $58,605.41 on June 30, 2026. Net decrease in net assets resulting from operations for the six months ended June 30, 2026 was $(1,097,049), which consisted of the net realized and unrealized loss on investment in bitcoin, and $1 in investment income, less the Sponsor Fee of $(2,806).

Six months ended June 30, 2025

By comparison, during the six months ended June 30, 2025, the Trust's net assets increased from $3,762,039 on December 31, 2024 to $4,257,654 on June 30, 2025. The increase in the Trust's net assets resulted primarily from additions of approximately 12,170 bitcoin with a value of $1,203,179 in connection with Share creations during the period. Additions were partially offset by dispositions from the Trust of approximately (12,900) bitcoin with a value of $(1,215,221) in connection with Share redemptions and (40) bitcoin with a value of $(3,764) to pay the Sponsor Fee during the period.

During the six months ended June 30, 2025, net realized and change in unrealized gain on investment in bitcoin was $511,405, which included a realized gain of $2,183 on the transfer of bitcoin to pay the Sponsor Fee, a realized gain of $45,121 on the sale of bitcoin to

meet redemptions, and a change in unrealized appreciation on investment in bitcoin of $464,101. Net realized and change in unrealized gain on investment in bitcoin for the period resulted primarily from bitcoin price appreciation from $93,730.35 on December 31, 2024 to $107,487.49 on June 30, 2025. Net increase in net assets resulting from operations for the six months ended June 30, 2025 was $507,657, which consisted of the net realized and unrealized gain on investment in bitcoin, less the Sponsor Fee of $(3,748).

^ Amounts displayed are in the '000s, except for per-Share/coin references.

Net Assets

As of June 30, 2026, the Trust held a net closing balance of 36,207.6919 bitcoin with a total market value of $2,121,966,631 based on the BRRNY price of $58,605.41 used to determine the Trust's NAV. The total market value of the Trust's bitcoin held was $2,125,990,030 based on the price of a bitcoin (Lukka Prime Rate) in the principal market (Coinbase) of $58,716.53, used to determine the Trust's Principal Market NAV.

As of June 30, 2025, the Trust held a net closing balance of 39,518.9512 bitcoin with a total market value of $4,247,792,870 based on the BRRNY price of $107,487.49 used to determine the Trust's NAV. The total market value of the Trust's bitcoin held was $4,258,323,090 based on the price of a bitcoin (Lukka Prime Rate) in the principal market (Crypto.com) of $107,753.95, used to determine the Trust's Principal Market NAV.

Liquidity and Capital Resources

The Trust pays a unitary Sponsor Fee of 0.20% per annum of the Trust's bitcoin holdings. The Sponsor contractually waived the Sponsor Fee on the first $1 billion of the Trust assets through July 10, 2024, and the Sponsor Fee has been accruing at an annual rate of 0.20% of the Trust's bitcoin holdings since then. As a result, the only ordinary expense of the Trust is expected to be the Sponsor Fee. In exchange for the Sponsor Fee, the Sponsor has agreed to assume and pay the normal operating expenses of the Trust, which include the Trustee's monthly fee and out-of-pocket expenses, the fees of the Trust's regular service providers (Cash Custodian, Bitcoin Custodian, Prime Execution Agent, Marketing Agent, Transfer Agent and Administrator), exchange listing fees, tax reporting fees, SEC registration fees, printing and mailing costs, audit fees and up to $500,000 per annum in ordinary legal fees and expenses. The Sponsor may determine in its sole discretion to assume legal fees and expenses of the Trust in excess of $500,000 per annum. The Sponsor also agreed to pay the costs of the Trust's organization.

The Trust may incur certain extraordinary, non-recurring expenses that are not assumed by the Sponsor, including, but not limited to, taxes and governmental charges, any applicable brokerage commissions, financing fees, Bitcoin network fees and similar transaction fees, expenses and costs of any extraordinary services performed by the Sponsor (or any other service provider) on behalf of the Trust to protect the Trust or the Shareholders (including, for example, in connection with any fork of the Bitcoin blockchain, any Incidental Rights and any IR Asset), any indemnification of the Cash Custodian, Bitcoin Custodian, Prime Execution Agent, Transfer Agent, Administrator or other agents, service providers or counterparties of the Trust, and extraordinary legal fees and expenses, including any legal fees and expenses incurred in connection with litigation, regulatory enforcement or investigation matters.

The Trust does not hold a cash balance except in connection with the creation and redemption of Baskets (blocks of 10,000 Shares) or to pay expenses not assumed by the Sponsor. To pay for expenses not assumed by the Sponsor that are denominated in U.S. dollars, the Sponsor, on behalf of the Trust, may sell the Trust's bitcoin as necessary to pay such expenses. The cash proceeds of the sale are sent to the Sponsor to pay the expenses. Any remaining cash is distributed back to the Cash Custodian. The Sponsor expects that the Trust will have an immaterial amount of cash flow from its operations and that its cash balance will be insignificant at the end of each reporting period. The Trust's only sources of cash are proceeds from the sale of Baskets and bitcoin. The Trust will not borrow to meet liquidity needs.

The Trust is not aware of any trends, demands, conditions or events that are reasonably likely to result in material changes to its liquidity needs. While broader economic and market conditions, including evolving trade policies and tariffs, could impact the price of bitcoin and contribute to increased market volatility, the Trust does not currently anticipate these factors will materially affect its liquidity needs.

Off-Balance Sheet Arrangements and Contractual Obligations

As of June 30, 2026, the Trust has not used, nor does it expect to use in the future, special purpose entities to facilitate off-balance sheet financing arrangements and has no loan guarantee arrangements or off-balance sheet arrangements of any kind other than agreements entered into in the normal course of business, which may include indemnification provisions related to certain risks service providers undertake in performing services which are in the best interests of the Trust. While the Trust's exposure under such indemnification provisions cannot be estimated, these general business indemnifications are not expected to have a material impact on the Trust's financial position.

Sponsor Fee payments made to the Sponsor are calculated at an annual rate of 0.20% of the Trust's bitcoin holdings. As such, the Sponsor cannot anticipate the payment amounts that will be required under these arrangements for future periods since the Trust's holdings of bitcoin will vary in the normal course of business operations.

No material changes have occurred during the six months ended June 30, 2026.

Critical Accounting Policies

The financial statements and accompanying notes are prepared in accordance with U.S. GAAP. The preparation of these financial statements relies on estimates and assumptions that impact the Trust's financial position and results of operations. These estimates and assumptions affect the Trust's application of accounting policies. Below is a summary of accounting policies on cash, investment valuation and investment company considerations. There were no material estimates used in the preparation of the financial statements involving a significant level of estimation uncertainty that had or are reasonably likely to have had a material impact on the Trust's financial condition. In addition, please refer to Note 2 to the Financial Statements included in this report for further discussion of the Trust's accounting policies.

Cash

Generally, the Trust does not intend to hold any cash. Cash includes non-interest-bearing unrestricted 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.

Investment Valuation - Principal Market Net Asset Value ("NAV")

To determine which market is the Trust's principal market (or in the absence of a principal market, the most advantageous market) for purposes of calculating the Trust's net asset value in accordance with U.S. GAAP ("Principal Market NAV" and "Principal Market NAV per Share"), the Trust follows ASC Topic 820-10, Fair Value Measurement, which outlines the application of fair value accounting. ASC 820-10 determines fair value to be the price that would be received for bitcoin in a current sale, which assumes an orderly transaction between market participants on the measurement date. ASC 820-10 requires the Trust to assume that bitcoin is sold in its principal market to market participants or, in the absence of a principal market, the most advantageous market. Market participants are defined as buyers and sellers in the principal or most advantageous market that are independent, knowledgeable, and willing and able to transact.

The Trust only receives bitcoin in connection with a creation order from the Authorized Participant (or a Liquidity Provider) and does not itself transact on any Digital Asset Markets. Therefore, the Trust looks to market-based volume and level of activity for Digital Asset Markets. The Authorized Participant(s), or a Liquidity Provider, may transact in a Brokered Market, a Dealer Market, Principal-to-Principal Markets and Exchange Markets ("Trading Platform Markets"), each as defined in the FASB ASC Master Glossary (collectively, "Digital Asset Markets").

In determining which of the eligible Digital Asset Markets is the Trust's principal market, the Trust reviews these criteria in the following order:

First, the Trust reviews a list of Digital Asset Markets that are U.S. accessible, have historically provided publicly available data, and are exchanges that Bitwise normally transacts on. Specifically, the Trust utilizes a third-party valuation vendor, Lukka, Inc., to identify publicly available, well established and reputable crypto asset exchanges selected in its sole discretion.

Second, Lukka, Inc. sorts these Digital Asset Markets from high to low by market-based volume and level of activity of bitcoin traded on each Digital Asset Market. For the six months ended June 30, 2026, this sort was performed for Digital Asset Markets for the period mid-May through mid-June 2026.

Third, Lukka, Inc. then reviews pricing fluctuations and the degree of variances in price on each Digital Asset Market during the 60 minutes prior to 4:00 pm. EST for bitcoin to identify any material notable variances that may impact the volume or price information of a particular Digital Asset Market.

Fourth, Lukka, Inc. then selects a Digital Asset Market as its principal market based on the highest market-based volume level of activity and price stability in comparison to the other Digital Asset Markets on the list.

As of June 30, 2026, Lukka, Inc. included Binance, Bitfinex, Bitflyer, Bitstamp, Bullish, Bybit, Coinbase, Crypto.com, Gate.io, Gemini, HitBTC, Huobi, itBit, Kraken, KuCoin, LMAX, MEXC Global, OKX and Poloniex as its primary Exchange Markets in consideration.

At June 30, 2026, the principal market and the principal market price for bitcoin, which comprised the majority of the Trust's assets as of June 30, 2026, was Coinbase with a price of $58,716.53.

The Trust determines its principal market (or in the absence of a principal market the most advantageous market) annually and conducts a quarterly analysis to determine (i) if there have been recent changes to each Digital Asset Market's trading volume and level of activity in the trailing twelve months, (ii) if any Digital Asset Markets have developed that the Trust has access to, or (iii) if recent changes to each Digital Asset Market's price stability have occurred that would materially impact the selection of the principal market and necessitate a change in the Trust's determination of its principal market.

The cost basis of the bitcoin received by the Trust in connection with a creation order is recorded by the Trust at the fair value of bitcoin at 4:00 p.m., EST, on the creation date for financial reporting purposes. The cost basis recorded by the Trust may differ from proceeds collected by the Authorized Participant from the sale of the corresponding Shares to investors.

Investment Company Considerations

The Trust is an investment company for U.S. GAAP purposes and follows accounting and reporting guidance in accordance with the FASB ASC Topic 946, Financial Services - Investment Companies. The Trust uses fair value as its method of accounting for bitcoin in accordance with its classification as an investment company for accounting purposes. The Trust is not a registered investment company under the Investment Company Act of 1940. U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts in the financial statements and accompanying notes. Actual results could differ from those estimates and these differences could be material.

Please refer to Note 2 to the financial statements included in this Quarterly Report for further discussion of the Trust's Significant Accounting Policies.