ARKB Net Assets Surge to $5.09B Amid Bitcoin Volatility

TL;DR

**ARKB is a strong buy; despite recent unrealized depreciation, its net assets are soaring, indicating robust investor confidence in Bitcoin's long-term trajectory.**

AI Summary

Ark 21Shares Bitcoin ETF (ARKB) reported net assets of $5,092,934,000 as of September 30, 2025, an increase from $4,352,288,000 at December 31, 2024. The Trust's investment in bitcoin, at fair value, rose to $5,093,058,000 from $4,352,648,000 over the same period. For the nine months ended September 30, 2025, ARKB generated a net increase in net assets from operations of $927,779,000, significantly higher than the $481,493,000 reported for the nine months ended September 30, 2024. This was driven by a net realized and change in unrealized gain of $935,363,000 in 2025, compared to $485,185,000 in 2024, despite a net change in unrealized depreciation on investment in bitcoin of $184,085,000 in 2025. The Trust experienced net redemptions of 6,030,000 shares during the nine months ended September 30, 2025, with 150,670,000 shares redeemed against 144,640,000 shares issued. A 3-for-1 share split was effective on June 16, 2025, retroactively adjusting historical share counts and NAV per share.

Why It Matters

For investors, ARKB's substantial net asset growth to over $5 billion indicates strong capital inflows and appreciation in its underlying bitcoin holdings, despite recent unrealized depreciation. The 3-for-1 share split on June 16, 2025, aimed to improve liquidity and accessibility for retail investors, potentially broadening its investor base and increasing trading volume on the Cboe BZX Exchange. This competitive landscape for spot Bitcoin ETFs means ARKB's performance and operational efficiency are critical for attracting and retaining capital against rivals like BlackRock's IBIT and Fidelity's FBTC. The Trust's status as an 'emerging growth company' also means reduced reporting requirements, which could impact transparency compared to larger, more established funds.

Risk Assessment

Risk Level: medium — The Trust's primary asset, bitcoin, is subject to significant price volatility, as evidenced by the net change in unrealized depreciation of $136,721,000 for the three months ended September 30, 2025. While net assets increased, the substantial net redemptions of 6,030,000 shares over nine months indicate potential investor sensitivity to market fluctuations or competitive pressures, posing a medium risk to sustained growth.

Analyst Insight

Investors should consider ARKB for long-term bitcoin exposure, acknowledging its inherent volatility. Monitor bitcoin price movements and ARKB's net asset value per share, which was $38.00 as of September 30, 2025, for entry points, but be prepared for potential short-term drawdowns.

Financial Highlights

debt To Equity

0.00

revenue

N/A

operating Margin

N/A

total Assets

$5,198,864,000

total Debt

$105,930,000

net Income

$2,819,428,000

eps

$38.00

gross Margin

N/A

cash Position

N/A

revenue Growth

N/A

Key Numbers

• $5.09B — Net Assets (Increased from $4.35B at December 31, 2024, to $5.09B at September 30, 2025.)
• $927.78M — Net increase in net assets from operations (For the nine months ended September 30, 2025, up from $481.49M in the prior year.)
• $1.12B — Net realized gain on investment in bitcoin sold for redemptions (For the nine months ended September 30, 2025, significantly higher than $188.37M in 2024.)
• $184.09M — Net change in unrealized depreciation on investment in bitcoin (For the nine months ended September 30, 2025, indicating recent price declines.)
• 134,040,000 — Shares issued and outstanding (As of September 30, 2025, after a 3-for-1 share split on June 13, 2025.)
• $38.00 — Net asset value per share (As of September 30, 2025, up from $31.07 at December 31, 2024 (adjusted for split).)
• 44,528.1082 — Quantity of Bitcoin (Held by the Trust as of September 30, 2025, with a fair value of $5,093,058,000.)
• $7.58M — Sponsor fee (Total expenses for the nine months ended September 30, 2025, up from $3.79M in 2024.)
• 6,030,000 — Net decrease in Shares issued and outstanding (For the nine months ended September 30, 2025, due to redemptions exceeding issuances.)
• 3-for-1 — Share split ratio (Effective June 16, 2025, for all 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
• Jura Pentium Inc. (company) — Parent company of the Sponsor
• 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 net assets are primarily composed of bitcoin. The fair value of bitcoin is highly volatile and subject to rapid and substantial price fluctuations. For the nine months ended September 30, 2025, the Trust experienced a net change in unrealized depreciation on investment in bitcoin of $184,085,000, indicating recent price declines that directly impact the Trust's value.
• Regulatory Uncertainty and Changes [high — regulatory]: The regulatory landscape for digital assets, including bitcoin, is evolving and uncertain. Changes in regulations, or the interpretation of existing regulations, in the U.S. or other jurisdictions could adversely affect the Trust, its ability to hold bitcoin, or the market for bitcoin. This could impact the Trust's investment objective and operations.
• Custodial Risks [high — operational]: The Trust relies on third-party custodians (Coinbase Custody Trust Company, LLC, BitGo New York Trust Company, LLC, and Anchorage Digital Bank N.A.) to hold its bitcoin. The loss, theft, or unauthorized access to the bitcoin held by these custodians could result in a total loss of the Trust's assets. The Trust's net assets were $5,092,934,000 as of September 30, 2025.
• Redemption Activity [medium — market]: The Trust experienced net redemptions of 6,030,000 shares during the nine months ended September 30, 2025, with 150,670,000 shares redeemed against 144,640,000 shares issued. Significant redemptions could force the Trust to sell bitcoin at unfavorable prices to meet redemption requests, potentially impacting the NAV per share and overall performance.
• Sponsor Fee Expenses [medium — financial]: The Trust incurs a sponsor fee. For the nine months ended September 30, 2025, the sponsor fee was $7,584,000, an increase from $3,785,000 in the prior year. While a portion of these fees may be waived or reimbursed, these expenses reduce the Trust's net assets and impact its performance relative to the index.

Industry Context

The spot Bitcoin ETF market is highly competitive, with multiple issuers vying for market share. Performance is largely dictated by the price movements of Bitcoin itself, with ETFs offering investors regulated access to the asset. Key differentiators include expense ratios, liquidity, and the reputation of the sponsor and sub-adviser.

Regulatory Implications

The evolving regulatory landscape for digital assets presents ongoing risks. Any adverse regulatory actions or changes in interpretation could impact the Trust's operations, the price of Bitcoin, and investor confidence. Compliance with existing securities laws and potential future digital asset regulations is critical.

What Investors Should Do

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Key Dates

• 2025-09-30: Reporting Period End — Marks the end of the nine-month period for which financial results are reported, showing net assets of $5,092,934,000.
• 2025-06-16: 3-for-1 Share Split Effective — Adjusted historical share counts and NAV per share retroactively, impacting comparability of share numbers and per-share metrics.
• 2025-01-11: ARKB Listed on Cboe BZX Exchange — The date the ETF began trading, marking its public market debut and accessibility for investors.
• 2023-12-12: Initial Seed Shares Purchased — The Trust received initial seed capital of $100, representing the purchase of two shares at $50.00 per share.

Glossary

Net Assets

The total value of an investment fund's assets minus its liabilities. For ARKB, this represents the value of its bitcoin holdings minus expenses. (Represents the total value of the ETF available to shareholders, reported at $5,092,934,000 as of September 30, 2025.)

Accumulated Earnings

The total net income or loss of a company or fund over its lifetime that has not been distributed to owners or shareholders. For ARKB, this reflects the cumulative gains and losses from its bitcoin investments. (Shows the cumulative profitability of the Trust, reported at $2,819,428,000 as of September 30, 2025.)

Net Realized Gain/Loss

The profit or loss realized from selling an asset. For ARKB, this refers to gains or losses from selling bitcoin to cover expenses or meet redemptions. (A key driver of the Trust's operational performance, with a net realized gain on bitcoin sold for redemptions of $1,117,653,000 for the nine months ended September 30, 2025.)

Net Change in Unrealized Appreciation/Depreciation

The change in the market value of an asset that is still held by the entity. For ARKB, this reflects the change in the fair value of its bitcoin holdings. (Indicates the impact of market price movements on the Trust's holdings, with a net change in unrealized depreciation of $184,085,000 for the nine months ended September 30, 2025.)

Shares Issued and Outstanding

The total number of shares of a company or fund that have been issued and are held by investors. This number can change due to share splits, issuances, and redemptions. (As of September 30, 2025, there were 134,040,000 shares outstanding after a 3-for-1 split.)

Net Asset Value (NAV) per Share

The value of one share of a fund, calculated by dividing the total net assets by the number of outstanding shares. (Represents the per-share value of the Trust's holdings, reported at $38.00 as of September 30, 2025.)

Sponsor Fee

A fee paid to the entity that sponsors and manages the ETF. This is an operating expense that reduces the fund's returns. (Total sponsor fees for the nine months ended September 30, 2025, were $7,584,000.)

Redemptions

The process by which shareholders return shares of a fund to the fund in exchange for cash or underlying assets. Net redemptions occur when more shares are redeemed than issued. (The Trust experienced net redemptions of 6,030,000 shares for the nine months ended September 30, 2025.)

Year-Over-Year Comparison

Compared to the period ending December 31, 2024, the Ark 21Shares Bitcoin ETF (ARKB) has seen substantial growth in net assets, rising from $4.35 billion to $5.09 billion as of September 30, 2025. This growth was fueled by a significant increase in net assets from operations, which more than doubled year-over-year for the nine-month period ($927.78M vs. $481.49M). While the Trust experienced a net change in unrealized depreciation of $184.09M on its bitcoin holdings, this was offset by a much larger net realized gain on bitcoin sold for redemptions ($1.12B vs. $188.37M), indicating strong performance from asset sales despite market fluctuations. The number of shares outstanding has decreased slightly post-split, reflecting net redemptions.

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
• $1,000 — e basis. 1 Amount rounds to less than $1,000. See Note 1 to the Unaudited Notes to F

Filing Documents

• ea0263608-10q_ark21.htm (10-Q) — 332KB
• ea026360801ex10-1_ark21.htm (EX-10.1) — 15KB
• ea026360801ex31-1_ark21.htm (EX-31.1) — 10KB
• ea026360801ex31-2_ark21.htm (EX-31.2) — 10KB
• ea026360801ex32-1_ark21.htm (EX-32.1) — 4KB
• ea026360801ex32-2_ark21.htm (EX-32.2) — 4KB
• ex10-3_001.jpg (GRAPHIC) — 8KB
• 0001213900-25-110782.txt ( ) — 2414KB
• arkb-20250930.xsd (EX-101.SCH) — 25KB
• arkb-20250930_cal.xml (EX-101.CAL) — 9KB
• arkb-20250930_def.xml (EX-101.DEF) — 78KB
• arkb-20250930_lab.xml (EX-101.LAB) — 153KB
• arkb-20250930_pre.xml (EX-101.PRE) — 88KB
• ea0263608-10q_ark21_htm.xml (XML) — 284KB

FINANCIAL INFORMATION

Part I. FINANCIAL INFORMATION 1 Item 1.

Financial Statements (Unaudited)

Financial Statements (Unaudited) 1 Statements of Assets and Liabilities at September 30, 2025 (Unaudited) and December 31, 2024 1 Schedules of Investment at September 30, 2025 (Unaudited) and December 31, 2024 2 Statements of Operations for the three and nine months ended September 30, 2025 and 2024 (Unaudited) 3 Statements of Changes in Net Assets for the three and nine months ended September 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 13 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 16 Item 4.

Controls and Procedures

Controls and Procedures 16

OTHER INFORMATION

Part II. OTHER INFORMATION 17 Item 1.

Legal Proceedings

Legal Proceedings 17 Item 1A.

Risk Factors

Risk Factors 17 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 18 Item 3. Defaults Upon Senior Securities 18 Item 4. Mine Safety Disclosures 18 Item 5. Other Information 18 Item 6. Exhibits 19

Signatures

Signatures 20 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) September 30, 2025 December 31, 2024 Assets (Unaudited) Investment in bitcoin, at fair value (cost $ 4,002,365 , and $ 3,077,870 , respectively) $ 5,093,058 $ 4,352,648 Bitcoin sold receivable – 11,227 Capital shares receivable 105,806 – Total assets 5,198,864 4,363,875 Liabilities Bitcoin purchased payable $ 105,806 $ - Capital shares payable – 11,229 Sponsor fee payable 124 358 Total liabilities 105,930 11,587 Commitments and contingent liabilities (Note 9) Net assets $ 5,092,934 $ 4,352,288 Net assets consists of Paid-in-capital $ 2,273,506 $ 2,460,639 Accumulated earnings 2,819,428 1,891,649 $ 5,092,934 $ 4,352,288 Shares issued and outstanding, no par value, unlimited amount authorized 134,040,000 140,070,000 # Net asset value per share $ 38.00 $ 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) September 30, 2025 (Unaudited) Quantity of Bitcoin Cost Fair Value % of Net Assets Investment in bitcoin 44,528.1082 $ 4,002,365 $ 5,093,058 100 .00 % Total investments 44,528.1082 $ 4,002,365 $ 5,093,058 100 .00 % Liabilities in excess of other assets ( 124 ) - % Net assets $ 5,092,934 100.00 % 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 .

Financial Statements (Unaudited)

Financial Statements (Unaudited) 1. Organization The ARK 21Shares Bitcoin ETF (the "Trust") is a Delaware statutory trust, formed on June 22, 2021 , pursuant to the Delaware Statutory Trust Act ("DSTA"). The Trust operates pursuant to an Amended and Restated Trust Agreement (the "Trust Agreement"). CSC Delaware Trust Company, a Delaware trust company, is the trustee of the Trust (the "Trustee"). The Trust is managed and controlled by 21Shares US LLC (the "Sponsor"). The Sponsor is a limited liability company formed in the state of Delaware on June 16, 2021, and is a wholly owned subsidiary of Jura Pentium Inc., whose ultimate parent company is 21co Holdings Limited (formerly known as Amun Holdings Limited). Coinbase Custody Trust Company, LLC ("Coinbase"), BitGo New York Trust Company, LLC ("BitGo"), and Anchorage Digital Bank N.A. ("Anchorage", and, together with Coinbase and BitGo, as the context may require, the "Custodian", "Custodians" and each a "Custodian") are the custodians for the Trust and hold all of the Trust's bitcoin on the Trust's behalf. The transfer agent (the "Transfer Agent"), the administrator for the Trust (the "Administrator"), and the cash custodian (the "Cash Custodian"), is Bank of New York Mellon. The Trust is an exchange-traded fund that issues common units of beneficial interest (the "Shares") representing fractional undivided beneficial interests in its net assets that trade on the Cboe BZX Exchange, Inc. (the "Exchange"). The Shares were listed for trading on the Exchange on January 11, 2024, under the ticker 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. CF Benchmarks Ltd. is the administrator for the Index (the "Index Provider"). The Index is designed to reflect the performance of bitcoin in U.S. dollars. In seeking to achiev