Ark 21Shares Bitcoin ETF Files 2023 Annual Report on Form 10-K

TL;DR

<b>Ark 21Shares Bitcoin ETF (ARKB) filed its 2023 10-K, detailing its operations and listing on the Cboe BZX Exchange.</b>

AI Summary

Ark 21Shares Bitcoin ETF (ARKB) filed a Annual Report (10-K) with the SEC on March 26, 2024. The Ark 21Shares Bitcoin ETF filed its annual report on Form 10-K for the fiscal year ended December 31, 2023. The ETF's shares of beneficial interests are traded on the Cboe BZX Exchange, Inc. under the ticker symbol ARKB. The registrant's primary executive offices are located at 477 Madison Avenue, New York, NY 10022. The ETF is incorporated in Delaware and has an IRS Employer Identification Number of 87-6497023. The filing confirms the ETF has submitted all required reports for the preceding 12 months and has been subject to these filing requirements for the past 90 days.

Why It Matters

For investors and stakeholders tracking Ark 21Shares Bitcoin ETF, this filing contains several important signals. This 10-K filing provides a comprehensive overview of the Ark 21Shares Bitcoin ETF's financial performance and operational status for the fiscal year 2023, crucial for investors assessing the ETF's stability and regulatory compliance. As a publicly traded Bitcoin ETF, this filing is significant for the cryptocurrency market, offering transparency into a regulated investment vehicle that holds a major digital asset.

Risk Assessment

Risk Level: low — Ark 21Shares Bitcoin ETF shows low risk based on this filing. The filing is a standard annual report (10-K) and does not contain new material events or significant financial distress indicators, suggesting a low-risk profile for this specific filing.

Analyst Insight

Investors should review the full 10-K filing for detailed financial statements, risk factors, and management discussion to understand the ETF's operational performance and outlook.

Key Numbers

• 20231231 — Fiscal Year End (The period covered by the 10-K filing.)
• 001-41910 — SEC File Number (Commission file number for the ETF.)
• 87-6497023 — IRS Employer Identification No. (The ETF's IRS identification number.)
• ARKB — Trading Symbol (The ticker symbol for the ETF on the exchange.)

Key Players & Entities

• Ark 21Shares Bitcoin ETF (company) — Registrant name
• ARKB (company) — Trading symbol
• Cboe BZX Exchange, Inc. (company) — Exchange where ARKB is registered
• Delaware (company) — State of incorporation
• 477 Madison Avenue (company) — Registrant's primary executive offices address
• New York (company) — City of registrant's primary executive offices
• 10022 (company) — ZIP code of registrant's primary executive offices
• 20231231 (date) — Fiscal year end

FAQ

Risk Factors

• Regulatory Compliance [medium — regulatory]: The ETF must comply with various regulations governing investment funds and digital assets, which could change and impact operations.
• Bitcoin Price Volatility [high — market]: The value of the ETF is directly tied to the price of Bitcoin, which is known for its high volatility, posing significant investment risk.
• Custody and Security Risks [medium — operational]: Risks associated with the custody of Bitcoin, including potential loss or theft of digital assets held by custodians.

Key Dates

• 2023-12-31: Fiscal Year End — Marks the end of the reporting period for the 10-K.
• 2024-03-26: Filing Date — Date the 10-K was officially submitted to the SEC.

Key Financial Figures

• $1.235 billion — ny" upon the earliest of: (i) it having $1.235 billion or more in annual revenues, (ii) at lea
• $700 million — more in annual revenues, (ii) at least $700 million in market value of Common Shares being
• $1.0 billion — -affiliates, (iii) it issuing more than $1.0 billion of non-convertible debt over a three-ye
• $1 billion — ted on the Exchange), or (ii) the first $1 billion of Trust assets, whichever comes first.
• $100,000 — s are subject to a cap of not more than $100,000 per annum. In the Sponsor's sole discre
• $2.4 billion — 023, 21Shares AG oversees approximately $2.4 billion in assets under management and nearly 4

Filing Documents

• ea0202130-10k_ark21.htm (10-K) — 681KB
• ea020213001ex4-1_ark21.htm (EX-4.1) — 6KB
• ea020213001ex31-1_ark21.htm (EX-31.1) — 10KB
• ea020213001ex31-2_ark21.htm (EX-31.2) — 10KB
• ea020213001ex32-1_ark21.htm (EX-32.1) — 4KB
• ea020213001ex32-2_ark21.htm (EX-32.2) — 4KB
• ea020213001ex97-1_ark21.htm (EX-97.1) — 32KB
• 0001213900-24-026067.txt (&nbsp;) — 1899KB
• arkb-20231231.xsd (EX-101.SCH) — 15KB
• arkb-20231231_cal.xml (EX-101.CAL) — 8KB
• arkb-20231231_def.xml (EX-101.DEF) — 51KB
• arkb-20231231_lab.xml (EX-101.LAB) — 74KB
• arkb-20231231_pre.xml (EX-101.PRE) — 38KB
• ea0202130-10k_ark21_htm.xml (XML) — 61KB

Risk Factors

Item 1A. Risk Factors 11

Unresolved Staff Comments

Item 1B. Unresolved Staff Comments 51

Cybersecurity

Item 1C. Cybersecurity 51

Properties

Item 2. Properties 52

Legal Proceedings

Item 3. Legal Proceedings 52

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 52 PART II

Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 52

[Reserved]

Item 6. [Reserved] 52

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

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 53

Quantitative and Qualitative Disclosures About Market Risk

Item 7A. Quantitative and Qualitative Disclosures About Market Risk 56

Financial Statements and Supplementary Data

Item 8. Financial Statements and Supplementary Data 56

Changes in and Disagreements With Accountants on Accounting and Financial Disclosure

Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure 56

Controls and Procedures

Item 9A. Controls and Procedures 56

Other Information

Item 9B. Other Information 56

Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 56 PART III

Directors, Executive Officers and Corporate Governance

Item 10. Directors, Executive Officers and Corporate Governance 57

Executive Compensation

Item 11. Executive Compensation 57

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 57

Certain Relationships and Related Transactions, and Director Independence

Item 13. Certain Relationships and Related Transactions, and Director Independence 58

Principal Accountant Fees and Services

Item 14. Principal Accountant Fees and Services 58 PART IV

Exhibits and Financial Statement Schedules

Item 15. Exhibits and Financial Statement Schedules 59

Form 10-K Summary

Item 16. Form 10-K Summary 59 Glossary 60

Signatures

Signatures 62 i PART I

Business

Item 1. Business DESCRIPTION OF THE TRUST The ARK 21Shares Bitcoin ETF (the "Trust") is an exchange-traded fund that issues common shares of beneficial interest (the "Shares") that trade on the Cboe BZX Exchange, Inc. (the "Exchange") under the symbol "ARKB." The Trust's investment objective is to seek to track the performance of bitcoin, as measured by the performance of the CME CF Bitcoin Reference Rate - New York Variant (the "Index"), adjusted for the Trust's expenses and other liabilities. In seeking to achieve its investment objective, the Trust holds bitcoin and values its Shares daily based on the Index. 21Shares US LLC (the "Sponsor") is the sponsor of the Trust and Delaware Trust Company (the "Trustee") is the trustee of the Trust. The Bank of New York Mellon ("BNYM") serves as the Trust's Administrator, Transfer Agent, and the Cash Custodian. Coinbase Custody Trust Company, LLC ("Coinbase Custody") (the "Bitcoin Custodian") is the bitcoin custodian for the Trust and holds all the Trust's bitcoin on the Trust's behalf. ARK Investment Management LLC (the "Sub-Adviser") is the sub-adviser of the Trust and aids in the marketing of the Shares. The Trust is an exchange-traded fund. The Trust does not purchase or sell bitcoin other than in connection with the creation and redemption of Shares or to pay certain expenses, which are facilitated by the Prime Broker, or any other prime brokers with whom the Trust contracts. The Trust is not managed like a corporation or an active investment vehicle. It does not have any officers, directors, or employees. The Trust is not registered as an investment company under the 1940 Act and is not required to register under such act. The Trust does not and will not hold or trade in commodity futures contracts regulated under the Commodity Exchange Act ("CEA"). The Trust is not a commodity pool for purposes of the CEA and none of the Sponsor, Trustee or the Marketing Agent is subject to regulation by the Commodity Futures Tr

View Full Filing

View this 10-K filing on SEC EDGAR