Bitwise 10-crypto fund loses $500 million as Bitcoin weight hits 78%

Bitwise's 10 Crypto Index Fund lost 48.27% of its net assets in the first half of 2026, falling to $532.8 million as Bitcoin's portfolio weight climbed to 77.81%.

The contraction, disclosed in the fund's quarterly filing with the SEC, combined two forces: market performance reduced the value of each share while net redemptions reduced the number outstanding. BITW reported a negative 36.16% Principal Market NAV total return per share for the six months, and its share count declined 18.97% to 14.14 million.

Operations reduced net assets by $339.4 million, driven by $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, with $161.2 million of redemptions against $3.5 million of creations. A separate cash-flow line shows $178.3 million paid for redemptions, a figure that includes settlement of a $17.1 million redemption payable carried over from the end of 2025.

Bitcoin rose from 75.11% of shareholders' equity in December to 77.81% in June, while Ethereum moved the other way, falling from 15.41% to 12.59%. The basket's constituents shifted as well: Hyperliquid and Stellar appeared in the June schedule, while Avalanche and Polkadot, present in December, were absent.

The filing does not attribute those shifts to a single cause. BITW says it rebalances monthly in line with a rules-based index, so relative asset prices, redemption-related sales and scheduled rebalancing are all possible mechanisms, though the filing does not quantify their contributions.

The drawdown comes as investors have favored single-token ETFs over diversified baskets. T. Rowe Price, the $1.9 trillion asset manager, is testing whether active management can revive demand for multi-asset crypto funds after single-token ETFs drew $13.6 billion, according to CryptoSlate. The filing does not establish whether BITW's basket cushioned losses relative to Bitcoin, but it shows the June portfolio ended with a larger share tied to the largest cryptocurrency.

For investors, the fund's trajectory shows the challenge facing diversified crypto products: as altcoins underperform, the basket drifts toward Bitcoin, eroding the diversification it was pitched to deliver. With redemptions continuing through authorized participants and Bitcoin dominance near 58.82% of the total market, BITW's next quarterly filing will show whether the concentration trend persists.

This article is for informational purposes only and does not constitute investment advice.