VBT’s 99.9% HODL concentration magnifies Bitcoin and currency risk

• $193.824 million annual loss in Australian dollars
• Net assets declined to $217.742 million
• Units on issue rose to 12.752 million
• 99.9% of assets held in HODL investment
• Ernst & Young issued an unmodified audit opinion

VanEck Bitcoin ETF (ASX:VBT) lost $193.824 million in the year to 30 June 2026, reversing the $61.071 million profit reported for its shorter initial reporting period. The result pushed net assets down from $292.507 million to $217.742 million, even as the number of units on issue increased by 44% to 12.752 million.

Bitcoin-linked investment drives the result

The loss was dominated by a $192.420 million loss on financial assets held at fair value, with the fund’s investment in the US-domiciled VanEck Bitcoin ETF, known by its Cboe code HODL, valued at $217.679 million at year-end. That holding represented 99.9% of VBT’s total assets, making the Australian-listed fund’s financial statements a near-direct account of the performance of its Bitcoin-linked exposure, translated into Australian dollars.

VBT recorded $137.721 million in applications during the year, against $18.662 million in redemptions. Those inflows increased units on issue from 8.837 million to 12.752 million, but were not enough to offset the investment loss in the fund’s net asset value. Management fees rose to $1.373 million from $718,000 in the prior period, although the comparison is affected by the fact that the earlier period ran only from 18 June 2024 to 30 June 2025.

Sensitivity remains concentrated in price and currency

The accounts quantify the concentration risk plainly. A 10% move in the underlying price exposure was estimated to change net assets by about $21.768 million in either direction at 30 June 2026. A 10% foreign exchange movement produced a similar estimated impact of $21.780 million, reflecting the fund’s US-dollar-denominated assets and Australian-dollar reporting currency.

The fund had $122,000 in cash and no bank overdraft at year-end, against $84,000 in payables. Its stated strategy remains unchanged: to track Bitcoin’s price in Australian dollars before fees and other costs. The report also notes that investment performance is not guaranteed and that future returns may differ from past returns.

Audit clears valuation process

Ernst & Young issued an unmodified audit opinion. The existence and valuation of the HODL investment was identified as the audit’s key matter because it accounted for almost all of VBT’s assets. Audit procedures included reconciling the holding to third-party confirmations, checking the underlying fund’s net asset value and using independently sourced market inputs, with specialists assisting in assessing digital assets held by HODL.

There were no reported post-year-end events that significantly affected the fund’s financial position or results. The next meaningful evidence will therefore come from the fund’s subsequent unit flows and asset value: whether new applications continue despite the loss, and whether VBT’s near-total concentration in HODL changes before its next reporting date.

Bottom Line?

The accounts leave little room for diversification: VBT’s next result will turn primarily on Bitcoin’s price and the Australian dollar, with investor flows determining how much capital is exposed.

Questions in the middle?

• Have unit applications continued after 30 June 2026 despite the reported loss?
• How has the value of the HODL holding moved since the reporting date?
• Will the fund’s concentrated Bitcoin and foreign exchange exposure change over the next year?