10-Q: ARK 21Shares Bitcoin ETF Q3 2025: Net Assets Rise to $5.09B
Quarterly Report
ARK 21Shares Bitcoin ETF reported a significant increase in net assets to $5.09 billion for Q3 2025, driven by bitcoin price appreciation despite net share redemptions.
Summary
- Net assets increased to $5.09 billion as of September 30, 2025, from $4.35 billion at December 31, 2024.
- Net asset value per share rose to $38.00 at September 30, 2025, from $31.07 at December 31, 2024 (retroactively adjusted for a 3-for-1 share split).
- The Trust experienced a net increase in net assets resulting from operations of $317.67 million for the three months ended September 30, 2025, and $927.78 million for the nine months ended September 30, 2025.
- Bitcoin holdings decreased to 44,528.1082 as of September 30, 2025, from 46,607.1028 at December 31, 2024.
- A 3-for-1 share split was effective June 16, 2025, with a record date of June 12, 2025.
Sentiment
Score: 7
Explanation: The Trust demonstrated strong financial performance with significant growth in net assets and NAV per share, driven by bitcoin price appreciation. However, there was a net decrease in shares outstanding and bitcoin holdings, indicating net redemptions.
Positives
- Net assets increased significantly to $5.09 billion as of September 30, 2025, from $4.35 billion at December 31, 2024.
- Net asset value per share increased to $38.00 as of September 30, 2025, from $31.07 at December 31, 2024 (adjusted for share split).
- Total return at net asset value was 6.12% for the three months and 22.30% for the nine months ended September 30, 2025.
- Bitcoin price appreciated by 6.15% in Q3 2025 (from $107,753.77 to $114,379.49) and 22.47% year-to-date (from $93,390.22 to $114,378.49).
Negatives
- A net decrease of 6,030,000 shares outstanding occurred for the nine months ended September 30, 2025.
- The quantity of bitcoin held decreased from 46,607.1028 at December 31, 2024, to 44,528.1082 at September 30, 2025.
- Net redemptions of 48,135,000 shares were recorded during the three months ended September 30, 2025.
Risks
- The Trust's investment strategy is concentrated solely in bitcoin, maximizing its exposure to market risks associated with digital assets, and any losses will not be offset by other diversified gains.
- Actual events or results may differ materially from forward-looking statements due to general economic, market, and business conditions.
- Changes in laws or regulations, including those concerning taxes, made by governmental authorities or regulatory bodies, pose a risk.
- Other world economic and political developments could impact the Trust's operations and the value of its shares.
Future Outlook
The filing includes standard forward-looking statements regarding future events, performance, movements in digital asset markets, and the Trust's operations. It emphasizes that actual events or results may differ materially due to various risks and uncertainties, but does not provide specific guidance or quantitative forecasts.
Management Comments
- The duly authorized officers of the Sponsor have evaluated the effectiveness of the Trust's disclosure controls and procedures and concluded they were effective as of the end of the period covered by this report, providing reasonable assurance that required information is recorded, processed, summarized, and reported timely.
Industry Context
The ARK 21Shares Bitcoin ETF operates within the rapidly evolving digital asset market, specifically focusing on Bitcoin. Its performance is directly tied to Bitcoin's price movements, reflecting broader market sentiment and adoption trends for the leading cryptocurrency. The existence and growth of such ETFs indicate increasing institutional acceptance and accessibility of digital assets for traditional investors. The share split could aim to improve liquidity and accessibility for retail investors, a common strategy in traditional markets.
Comparison to Industry Standards
- The Trust's investment objective is to track the performance of bitcoin, as measured by the CME CF Bitcoin Reference Rate-New York Variant, making its performance directly comparable to other spot Bitcoin ETFs and the underlying Bitcoin market itself.
- The 0.21% Sponsor fee is competitive within the nascent spot Bitcoin ETF market, often compared to fees charged by other major players like BlackRock's IBIT (0.25% with initial waiver) or Fidelity's FBTC (0.25% with initial waiver).
- The total return of 22.30% for the nine months ended September 30, 2025, reflects the performance of Bitcoin during that period, which can be benchmarked against the actual Bitcoin price performance and other digital asset indices.
Corporate Governance
| Change Type | Description | Effective Date | Impact Assessment |
|---|---|---|---|
| Amendment to Prime Broker Agreement | An Omnibus Amendment to the Coinbase Prime Broker Agreement, dated September 7, 2025, was executed, amending section 10.1 of the General Terms regarding client agreement to pay commissions and fees. | 2025-09-07 | Clarifies the client's obligation to pay commissions and fees for orders and Prime Broker Services, potentially streamlining financial operations and fee collection. |
Legal Proceedings
- As of September 30, 2025, the Trust was not subject to any material legal proceedings, nor were any material legal proceedings threatened against it.
Related Party Transactions
- The Sponsor, 21Shares US LLC, is a related party and receives a unitary Sponsor fee of 0.21% of the Trust's bitcoin holdings, paid in bitcoin weekly in arrears.
- The Sponsor has agreed to pay certain operating expenses out of the Sponsor fee, including fees to the Sub-Adviser, Administrator, Custodians, Transfer Agent, Trustee, marketing agents, listing/trading/quotation fees, ordinary legal fees (capped at $100,000 per annum), audit fees, regulatory fees, printing/mailing costs, website costs, and license fees.
Stakeholder Impact
- Shareholders are directly impacted by the performance of bitcoin and the Trust's NAV per share. The 3-for-1 share split aims to increase accessibility and liquidity for investors.
- The Sponsor (21Shares US LLC) benefits from the Sponsor fee for managing the Trust and covers certain operational expenses.
- Custodians (Coinbase, BitGo, Anchorage) continue to hold the Trust's bitcoin, providing secure storage services.
- Authorized Participants engage in the creation and redemption of shares, facilitating market liquidity.
Next Steps
- Continue to track the performance of bitcoin as measured by the CME CF Bitcoin Reference Rate-New York Variant.
- Monitor and manage the creation and redemption of Shares in Creation Baskets.
- Maintain disclosure controls and procedures and internal control over financial reporting.
Key Dates
| Date | Description |
|---|---|
| 2021-06-22 | The Trust was formed as a Delaware statutory trust. |
| 2023-12-12 | The Sponsor purchased initial Seed Shares comprising two Shares at $50.00 per share. |
| 2024-01-05 | The initial Seed Shares were redeemed for cash. |
| 2024-01-09 | The Seed Capital Investor purchased Seed Creation Baskets comprising 10,000 Shares at $46.88 per share. |
| 2024-01-11 | Shares were listed for trading on the Cboe BZX Exchange, Inc. under the ticker symbol ARKB, and the Sponsor fee waiver period commenced. |
| 2024-01-19 | The Seed Creation Baskets were redeemed for cash. |
| 2024-02-01 | The Sponsor fee waiver period ended as Trust assets exceeded $1 billion. |
| 2025-06-02 | The Sponsor announced approval of a three (3)-for-one (1) share split. |
| 2025-06-12 | Record date for the 3-for-1 share split. |
| 2025-06-13 | The 3-for-1 share split occurred after market close. |
| 2025-06-16 | The 3-for-1 share split became effective at market open. |
| 2025-09-07 | Omnibus Amendment to the Coinbase Prime Broker Agreement was dated. |
| 2025-09-18 | Andres Valencia, EVP Investment Management of 21Shares US LLC, signed the Omnibus Amendment. |
| 2025-09-19 | Lauren Abendschein, VP of Coinbase, Inc., signed the Omnibus Amendment. |
| 2025-09-30 | End of the quarterly period covered by this report. |
| 2025-11-06 | Date of outstanding shares count (125,510,000). |
| 2025-11-14 | The Quarterly Report on Form 10-Q was signed by Russell Barlow (CEO) and Duncan Moir (President). |
Recommendation
holdThe Trust's performance is directly tied to Bitcoin's price, which has shown strong appreciation. While net assets and NAV per share have increased, there have been net redemptions of shares, indicating some investor outflows. The 0.21% fee is competitive. Given the direct exposure to Bitcoin and the current market dynamics, a 'Hold' recommendation is appropriate for investors seeking Bitcoin exposure through an ETF, acknowledging both the potential for further appreciation and the inherent volatility and concentration risk of a single-asset strategy.
Keywords
Bitcoin ETF, ARKB, Cryptocurrency, Digital Assets, SEC Filing, Quarterly Report, Investment Fund, Bitcoin Price, Net Asset Value, 21Shares, ARK Invest
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