BITW

We rate Bitwise 10 Crypto Index Fund (BITW) as Avoid with a composite score of 30.8/100 at a current price of $42.10. The stock falls in the bottom quintile of our universe across key quantitative factors, and the multi-factor weakness suggests a high probability of continued underperformance.

The rating is primarily driven by strength in quality (34th percentile) and value (25th percentile), which together account for the majority of the composite score. Offsetting weakness in stability (23th percentile) and value (25th percentile) tempers our overall conviction. We assign a No Moat rating (37/100), High uncertainty, and Exemplary capital allocation.

Key items to watch: momentum to confirm whether the current price trend has legs; valuation compression risk if growth disappoints. Any material change in these dynamics could warrant a reassessment of our rating. The moat trend is stable, which suggests the competitive landscape is stable for now.

Bitwise 10 Crypto Index Fund holds a top-quartile position (#0 of 50) within the Finance, Insurance, And Real Estate sector, based on our composite quantitative scoring across quality, value, momentum, and stability factors. The composite score of 30.8/100 places it at rank #4476 in our full 7,333-stock universe. At N/A in market capitalization, Bitwise 10 Crypto Index Fund is a small-cap player in the Finance, Insurance, And Real Estate space, which limits certain scale advantages but may allow for more agile strategic execution.

Momentum indicators (25th percentile) suggest caution regarding the near-term price trend. Revenue growth data is unavailable, limiting our ability to confirm whether momentum is fundamentally supported.

Margin data is not available for Bitwise 10 Crypto Index Fund, which limits our assessment of the company's cost structure and operating efficiency. We rely on factor-based signals to infer business quality in the absence of detailed margin data.

At a current price of $42.10, Bitwise 10 Crypto Index Fund is trading at a premium to fundamental value. Our value factor score of 25/100 reflects a composite assessment across multiple valuation metrics including price-to-earnings, price-to-book, EV/EBITDA, and price-to-sales ratios relative to both sector peers and the broader market. The premium valuation implies the market is pricing in significant future growth or quality improvements that are not yet fully reflected in current fundamentals.

Valuation multiples are not available for this company, which limits our ability to assess relative pricing. We rely more heavily on factor-based valuation signals in such cases.

We assign a High uncertainty rating to Bitwise 10 Crypto Index Fund. Key risk factors include elevated market sensitivity (beta of 3.05), below-average price stability (23th percentile), weak quality scores (34th percentile). The wide range of potential outcomes widens our fair value estimate and increases the possibility of permanent capital impairment. Investors considering this name should size positions accordingly and demand a meaningful margin of safety before initiating.

Specific risk factors that inform our assessment include: elevated market sensitivity (beta of 3.05); below-average price stability (23th percentile); weak quality scores (34th percentile). Each of these factors independently widens the distribution of potential outcomes, and in combination they create a risk profile that demands careful position sizing. The stability factor at the 23th percentile and quality factor at the 34th percentile provide a quantitative summary of the overall risk landscape.

Key risk mitigants include: conservative leverage (0% D/E) limits balance sheet risk. These factors partially offset the identified risks and provide downside protection in adverse scenarios. On balance, the risk-reward profile warrants caution and disciplined position management.

We rate Bitwise 10 Crypto Index Fund's capital allocation as Exemplary. Management demonstrates a strong track record of balancing reinvestment with shareholder returns, evidenced by returns on equity of 38.0%, disciplined leverage (0% D/E). Exemplary allocators typically generate returns on equity above 20% while maintaining debt-to-equity below 50% — Bitwise 10 Crypto Index Fund meets this high bar.

The balance sheet remains conservatively managed, providing financial flexibility for opportunistic investments while maintaining a margin of safety for shareholders. We note that the combination of 11.9% return on assets and controlled leverage suggests management is deploying capital at rates well above the cost of capital — the hallmark of exemplary stewardship.

In summary, Bitwise 10 Crypto Index Fund receives a Avoid rating with a composite score of 30.8/100 (rank #4476 of 7,333). Our quantitative framework assigns a No Moat (37/100, trend: stable), High uncertainty, and Exemplary capital allocation. The average factor score across quality, value, momentum, stability, and investment is 26/100.

Our analysis does not support a constructive view on Bitwise 10 Crypto Index Fund at this time. The combination of limited competitive advantages, high uncertainty, and exemplary capital allocation suggests unfavorable risk-reward at current levels. We recommend investors avoid new positions and existing holders consider reducing exposure.