Quarterly Report
Filed: 2026-05-15
Key Insights
- BWET (Breakwave Tanker Shipping ETF) showed dramatic growth with net assets increasing from $1.33M (June 2025) to $56.89M (March 2026), representing a 4,180% increase in AUM, indicating strong investor demand for tanker shipping exposure.
- BDRY (Breakwave Dry Bulk Shipping ETF) experienced significant contraction with net assets declining from $65.82M to $43.14M and shares outstanding dropping from 11.7M to 4.3M, suggesting redemptions or share consolidation activity.
- Both funds maintain substantial futures contract positions with BWET holding $17.27M in unrealized gains on derivatives while BDRY carries $2.16M in unrealized depreciation, indicating active commodity trading strategies with significant leverage exposure.
- Combined net assets grew from $67.15M to $100.03M across both funds, with distributable earnings of $83.92M representing 83.9% of total net assets, suggesting strong performance but potential sustainability concerns given the volatile shipping market.
- The trust holds minimal direct securities (26% for BDRY, 45.9% for BWET in money market funds) and relies heavily on futures contracts and segregated cash margin ($43.1M), indicating a leveraged derivative-focused strategy with significant counterparty and liquidity risks.