ARKB Net Assets Surge to $5.03B Amid Bitcoin Gains, Share Split

TL;DR

**ARKB is riding the Bitcoin wave, with net assets up over $680 million, making it a strong contender in the crypto ETF space despite fee pressures.**

AI Summary

Ark 21Shares Bitcoin ETF (ARKB) reported a significant increase in net assets, reaching $5,034,361,000 as of June 30, 2025, up from $4,352,288,000 on December 31, 2024. The Trust's investment in Bitcoin, at fair value, grew to $5,034,561,000 from $4,352,648,000 over the same period. For the six months ended June 30, 2025, ARKB experienced a net increase in net assets from operations of $610,112,000, a substantial improvement compared to a net increase of $435,396,000 for the same period in 2024. This was driven by a net realized and change in unrealized gain of $614,923,000 for the six months ended June 30, 2025, despite a net investment loss of $4,811,000 due to sponsor fees. The Trust also executed a 3-for-1 share split on June 13, 2025, retroactively adjusting historical share data. Shares issued increased by 500,000 net for the six months ended June 30, 2025, totaling 140,570,000 shares outstanding as of June 30, 2025, with a net asset value per share of $35.81.

Why It Matters

This filing highlights ARKB's robust growth in net assets, primarily driven by Bitcoin's performance, which is crucial for investors seeking exposure to the cryptocurrency market through a regulated ETF. The 3-for-1 share split could enhance liquidity and accessibility for retail investors, potentially broadening ARKB's investor base and increasing trading volume on the Cboe BZX Exchange. For employees of 21Shares US LLC and ARK Investment Management LLC, the strong performance validates their strategic management of the Trust. In the competitive landscape of Bitcoin ETFs, ARKB's significant asset growth positions it as a key player, potentially attracting more capital flows and intensifying competition among digital asset investment products.

Risk Assessment

Risk Level: medium — The Trust's entire investment portfolio is concentrated in Bitcoin, making it highly susceptible to the volatile price fluctuations of this single digital asset. While the filing shows significant unrealized gains, the 'Net change in unrealized appreciation (depreciation) on investment in bitcoin' for the three months ended June 30, 2024, was a substantial negative $543,311,000, demonstrating this inherent volatility. Furthermore, the Trust is an 'emerging growth company,' which allows it to comply with reduced public company reporting requirements, potentially limiting investor insight compared to larger, more established funds.

Analyst Insight

Investors should consider ARKB for direct Bitcoin exposure within a diversified portfolio, acknowledging the inherent volatility of cryptocurrency. Monitor Bitcoin price movements closely and evaluate the impact of the 3-for-1 share split on liquidity and trading patterns. Given the 'emerging growth company' status, investors should also review the annual report for a more comprehensive risk assessment.

Financial Highlights

debt To Equity

0.00

revenue

$0

operating Margin

N/A

total Assets

$5,044,743,000

total Debt

$0

net Income

$610,112,000

eps

$35.81

gross Margin

N/A

cash Position

$0

revenue Growth

N/A

Key Numbers

• $5.03B — Net assets (Increased from $4.35B on December 31, 2024, representing a 15.6% growth.)
• $610.1M — Net increase in net assets from operations (For the six months ended June 30, 2025, up from $435.4M in the prior year period.)
• $5.03B — Investment in bitcoin at fair value (As of June 30, 2025, up from $4.35B on December 31, 2024.)
• 140.57M — Shares issued and outstanding (As of June 30, 2025, after a 3-for-1 share split on June 13, 2025.)
• $35.81 — Net asset value per share (As of June 30, 2025, adjusted for the 3-for-1 share split.)
• $4.81M — Sponsor fee (Total expenses for the six months ended June 30, 2025, up from $2.28M in the prior year period.)
• $614.9M — Net realized and change in unrealized gain (loss) (For the six months ended June 30, 2025, indicating significant market appreciation.)
• 46,722.8267 — Quantity of Bitcoin (Held by the Trust as of June 30, 2025.)
• $3.81B — Cost of investment in bitcoin (As of June 30, 2025, compared to a fair value of $5.03B.)
• 3-for-1 — Share split ratio (Effective June 13, 2025, increasing the number of outstanding shares.)

Key Players & Entities

• Ark 21Shares Bitcoin ETF (company) — registrant and exchange-traded fund
• 21Shares US LLC (company) — Sponsor of the Trust
• ARK Investment Management LLC (company) — Sub-Adviser of the Trust
• Cboe BZX Exchange, Inc. (company) — exchange where ARKB shares trade
• Coinbase Custody Trust Company, LLC (company) — Custodian for the Trust's bitcoin
• BitGo New York Trust Company, LLC (company) — Custodian for the Trust's bitcoin
• Anchorage Digital Bank N.A. (company) — Custodian for the Trust's bitcoin
• Bank of New York Mellon (company) — Transfer Agent, Administrator, and Cash Custodian
• Securities and Exchange Commission (regulator) — regulates the Trust's filings
• CF Benchmarks Ltd. (company) — administrator for the CME CF Bitcoin Reference Rate—New York Variant Index

FAQ

Risk Factors

• Volatility of Bitcoin Price [high — market]: The Trust's investment is primarily in Bitcoin, whose price is highly volatile and subject to rapid fluctuations. For the six months ended June 30, 2025, the net change in unrealized appreciation on investment in bitcoin was $(47,364,000), contrasting with a significant appreciation of $302,012,000 in the prior year period. This volatility directly impacts the Trust's net asset value.
• Evolving Regulatory Landscape [high — regulatory]: The regulatory framework for digital assets, including Bitcoin, is still developing and subject to change. Changes in regulations could impact the Trust's ability to operate or the value of its Bitcoin holdings. The SEC's stance and potential future regulations pose a significant risk.
• Custody and Security Risks [high — operational]: The Trust relies on third-party custodians to hold its Bitcoin. Any failure or security breach of these custodians could result in the loss of the Trust's assets. The Trust holds 46,722.8267 BTC as of June 30, 2025, representing a significant value.
• Sponsor Fees and Expenses [medium — financial]: The Trust incurs sponsor fees, which reduce the net assets. For the six months ended June 30, 2025, sponsor fees amounted to $4,811,000, an increase from $2,276,000 in the prior year period. These fees create a net investment loss, as seen in the $4,811,000 net investment loss for the period.
• Liquidity of Bitcoin [medium — market]: While Bitcoin is generally considered liquid, extreme market conditions could impact the ability to buy or sell large quantities without affecting the price. The Trust's ability to meet redemption requests depends on the liquidity of Bitcoin.
• Counterparty Risk [medium — legal]: The Trust engages with various counterparties, including custodians and trading partners. The failure of any of these counterparties could adversely affect the Trust's operations and investments.

Industry Context

The spot Bitcoin ETF market is highly competitive, with several issuers vying for market share. Recent approvals have led to increased institutional interest and product innovation. However, the industry remains sensitive to regulatory developments and macroeconomic factors influencing digital asset adoption.

Regulatory Implications

The evolving regulatory landscape for digital assets presents a significant risk. Changes in SEC guidance or new legislation could impact the Trust's operations, compliance, and the overall market for Bitcoin ETFs. The Trust must remain vigilant in adhering to all applicable regulations.

What Investors Should Do

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Key Dates

• 2025-06-30: Reporting period end — Net assets reached $5,034,361,000, with investment in Bitcoin at $5,034,561,000. Net increase in net assets from operations was $610,112,000 for the six months.
• 2025-06-13: 3-for-1 share split — Increased shares outstanding to 140,570,000 and retroactively adjusted historical data, impacting NAV per share to $35.81.
• 2025-01-01: Start of reporting period — Net assets were $4,352,288,000, with investment in Bitcoin at $4,352,648,000.
• 2024-12-31: Prior year end — Net assets were $4,352,288,000, serving as the baseline for the current period's growth.

Glossary

Net assets

The total value of the Trust's assets minus its liabilities. (Represents the total value available to shareholders, which grew to $5,034,361,000 as of June 30, 2025.)

Investment in bitcoin, at fair value

The current market value of the Bitcoin held by the Trust. (The primary asset of the Trust, valued at $5,034,561,000 as of June 30, 2025, showing significant appreciation.)

Net realized and change in unrealized gain (loss)

The total profit or loss from the sale of Bitcoin and the change in the market value of Bitcoin still held by the Trust. (A key driver of the Trust's performance, contributing $614,923,000 for the six months ended June 30, 2025.)

Sponsor fee

Fees paid to the sponsor of the ETF for managing the fund. (An expense that reduces the Trust's net assets, totaling $4,811,000 for the six months ended June 30, 2025.)

Net investment loss

The loss incurred from the Trust's investment activities after deducting expenses. (For the six months ended June 30, 2025, this was $4,811,000, primarily due to sponsor fees.)

Share split

An action by the company to increase the number of its outstanding shares by dividing each existing share into multiple shares. (The 3-for-1 split on June 13, 2025, increased shares outstanding and adjusted NAV per share.)

Net asset value per share (NAV per share)

The value of one share of the Trust, calculated by dividing the total net assets by the number of outstanding shares. (Reported at $35.81 as of June 30, 2025, after the share split.)

Cost of investment in bitcoin

The original purchase price of the Bitcoin held by the Trust. (As of June 30, 2025, the cost was $3,807,147,000, significantly lower than the fair value of $5,034,561,000.)

Year-Over-Year Comparison

The Ark 21Shares Bitcoin ETF (ARKB) has demonstrated substantial growth in net assets, increasing by approximately 15.6% from $4,352,288,000 on December 31, 2024, to $5,034,361,000 on June 30, 2025. This growth was driven by a significant net increase in net assets from operations of $610,112,000 for the six months ended June 30, 2025, a notable improvement from $435,396,000 in the prior year period. While the net realized and change in unrealized gain was strong at $614,923,000, the Trust experienced a net investment loss of $4,811,000 due to increased sponsor fees, compared to a smaller loss of $2,183,000 in the prior year. New risks related to the evolving regulatory landscape and the impact of the recent share split are key considerations.

Key Financial Figures

• $1.235 billion — ny" upon the earliest of: (i) it having $1.235 billion or more in annual gross revenues, (ii)
• $1.0 billion — ated filer," (iii) it issuing more than $1.0 billion of non-convertible debt over a three-ye
• $3,807,147 — estment in bitcoin, at fair value (cost $3,807,147 and $3,077,870, respectively) $ 5,034,
• $3,077,870 — oin, at fair value (cost $3,807,147 and $3,077,870, respectively) $ 5,034,561 $ 4,352,64
• $1,000 — basis. 1 Amount rounds to less than $1,000. See Note 1 to the Unaudited Notes to F

Filing Documents

• ea0251650-10q_ark21.htm (10-Q) — 337KB
• ea025165001ex31-1_ark21.htm (EX-31.1) — 10KB
• ea025165001ex31-2_ark21.htm (EX-31.2) — 10KB
• ea025165001ex32-1_ark21.htm (EX-32.1) — 4KB
• ea025165001ex32-2_ark21.htm (EX-32.2) — 4KB
• 0001213900-25-075771.txt ( ) — 2350KB
• arkb-20250630.xsd (EX-101.SCH) — 26KB
• arkb-20250630_cal.xml (EX-101.CAL) — 8KB
• arkb-20250630_def.xml (EX-101.DEF) — 74KB
• arkb-20250630_lab.xml (EX-101.LAB) — 148KB
• arkb-20250630_pre.xml (EX-101.PRE) — 84KB
• ea0251650-10q_ark21_htm.xml (XML) — 283KB

FINANCIAL INFORMATION

Part I. FINANCIAL INFORMATION 1 Item 1.

Financial Statements (Unaudited)

Financial Statements (Unaudited) 1 Statements of Assets and Liabilities at June 30, 2025 (Unaudited) and December 31, 2024 1 Schedules of Investment at June 30, 2025 (Unaudited) and December 31, 2024 2 Statements of Operations for the three and six months ended June 30, 2025 and 2024 (Unaudited) 3 Statements of Changes in Net Assets for the three and six months ended June 30, 2025 and 2024 (Unaudited) 4 Notes to Unaudited Financial Statements 5 Item 2.

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

Management's Discussion and Analysis of Financial Condition and Results of Operations 12 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 15 Item 4.

Controls and Procedures

Controls and Procedures 15

OTHER INFORMATION

Part II. OTHER INFORMATION 16 Item 1.

Legal Proceedings

Legal Proceedings 16 Item 1A.

Risk Factors

Risk Factors 16 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 17 Item 3. Defaults Upon Senior Securities 18 Item 4. Mine Safety Disclosures 18 Item 5. Other Information 18 Item 6. Exhibits 18

Signatures

Signatures 19 i

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION

Financial Statements (Unaudited)

Item 1. Financial Statements (Unaudited) ARK 21SHARES BITCOIN ETF STATEMENTS OF ASSETS AND LIABILITIES (Amounts in thousands, except Share and per Share amounts) June 30, 2025 December 31, 2024 Assets (Unaudited) Investment in bitcoin, at fair value (cost $3,807,147 and $3,077,870, respectively) $ 5,034,561 $ 4,352,648 Bitcoin sold receivable 10,182 11,227 Total assets 5,044,743 4,363,875 Liabilities Capital shares payable $ 10,182 $ 11,229 Sponsor fee payable 200 358 Total liabilities 10,382 11,587 Commitments and contingent liabilities (Note 9) Net assets $ 5,034,361 $ 4,352,288 Net assets consists of Paid-in-capital $ 2,532,601 $ 2,460,639 Accumulated earnings (loss) 2,501,760 1,891,649 $ 5,034,361 $ 4,352,288 Shares issued and outstanding, no par value, unlimited amount authorized 140,570,000 140,070,000 # Net asset value per share $ 35.81 $ 31.07 # # On June 13, 2025 there was a 3-for-1 share split. Historical shares outstanding and net asset value per share have been adjusted to reflect the 3-for-1 share split on a retroactive basis. The accompanying notes are an integral part of the financial statements. 1 ARK 21SHARES BITCOIN ETF SCHEDULES OF INVESTMENT (Amounts in thousands, except quantity of bitcoin and percentages) June 30, 2025 (Unaudited) Quantity of Bitcoin Cost Fair Value % of Net Assets Investment in bitcoin 46,722.8267 $ 3,807,147 $ 5,034,561 100.00 % Total investments 46,722.8267 $ 3,807,147 $ 5,034,561 100.00 % Liabilities in excess of other assets ( 200 ) ( 0.00 )% Net assets $ 5,034,361 100.00 % December 31, 2024 Quantity of Bitcoin Cost Fair Value % of Net Assets Investment in bitcoin 46,607.1028 $ 3,077,870 $ 4,352,648 100.01 % Total investments 46,607.1028 $ 3,077,870 $ 4,352,648 100.01 % Liabilities in excess of other assets ( 360 ) ( 0.01 ) % Net assets $ 4,352,288 100.00 % The accompanying notes are