10-Q: ARK 21Shares Bitcoin ETF Reports Q2 2026 Results

ARK 21Shares Bitcoin ETF (ARKB) reported a significant decrease in Net Asset Value (NAV) for the second quarter of 2026, primarily driven by a decline in bitcoin prices.

Summary

• The ARK 21Shares Bitcoin ETF (ARKB) experienced a substantial decline in its Net Asset Value (NAV) during the second quarter of 2026.
• The NAV decreased by 20.91% from $2,388,670 on March 31, 2026, to $1,889,240 on June 30, 2026.
• This decline was largely attributed to a 13.37% drop in the price of bitcoin during the same period.
• The ETF saw a net decrease in outstanding Shares, with 37,780,000 Shares created and 46,975,000 Shares redeemed.
• For the six-month period ending June 30, 2026, the NAV decreased by 42.84% from $3,305,323 to $1,889,240, reflecting a 32.91% fall in bitcoin prices.

Sentiment

Score: 3

Explanation: StockSavvy.ai views this as a negative score due to the significant decrease in Net Asset Value (NAV) and the substantial unrealized depreciation on bitcoin holdings during the period, indicating a challenging market environment for the ETF.

Positives

• The Sponsor Fee waiver period ended in February 2024, as Trust assets exceeded $1 billion, indicating growth in assets under management.
• The Trust operates with a single segment, simplifying its financial structure.
• The Sponsor covers ordinary operational expenses, reducing the direct cost burden on the Trust beyond the Sponsor Fee.

Negatives

• The Net Asset Value (NAV) of the Trust decreased by 20.91% in Q2 2026 and 42.84% in the first six months of 2026.
• The value of the Trust's investment in bitcoin decreased from $3,305,394 on December 31, 2025, to $1,889,314 on June 30, 2026.
• There was a net realized loss of $185,186 on bitcoin sold for redemptions in Q2 2026 and $314,085 in the first six months of 2026.
• The Trust experienced a net change in unrealized depreciation on investment in bitcoin of $(87,975) in Q2 2026 and $(674,311) in the first six months of 2026.
• The number of outstanding shares decreased from 106,210,000 on March 31, 2026, to 97,015,000 on June 30, 2026.

Risks

• The Trust's investment strategy is concentrated in a single asset (bitcoin) within a single asset class, maximizing exposure to market risks associated with bitcoin and digital assets.
• Any losses resulting from a decrease in bitcoin's value will not be offset by gains from diversified assets.
• The termination of the licensing agreement with CME CF Bitcoin Reference Rate-New York Variant (Pricing Benchmark) effective August 31, 2026, and the intention to enter into a new agreement with FTSE International Limited, introduces potential operational and data-related risks.
• Forward-looking statements are subject to numerous risks and uncertainties, including changes in laws or regulations, general economic conditions, and other world economic and political developments.

Future Outlook

The Trust intends to enter into a licensing agreement with FTSE International Limited on or about August 24, 2026, to provide index data for the Trust, following the termination of its agreement with the current Pricing Benchmark Provider effective August 31, 2026. The Trust's investment objective remains to track the performance of bitcoin.

Management Comments

• The Sponsor believes that all adjustments necessary to present fairly the financial position and results of operations for the six months ended June 30, 2026, and for all interim periods presented, have been included.
• The Sponsor believes that the disclosure controls and procedures of the Trust were effective as of the end of the period covered by this report to provide reasonable assurance that information required to be disclosed is recorded, processed, summarized, and reported within the specified time periods.

Industry Context

StockSavvy.ai notes that the ARK 21Shares Bitcoin ETF's performance is directly tied to the volatile price movements of bitcoin. The significant NAV decrease reflects the broader market downturn experienced by cryptocurrencies during the reporting period. The change in pricing benchmark provider is a notable operational shift that could impact tracking accuracy or data reliability.

Comparison to Industry Standards

• The filing does not provide direct comparisons to other Bitcoin ETFs or traditional financial benchmarks.
• The Trust's performance is benchmarked against the CME CF Bitcoin Reference Rate-New York Variant, adjusted for expenses.
• The concentration risk in a single asset (bitcoin) is a key differentiator from diversified ETFs, leading to higher volatility.
• The Sponsor Fee of 0.21% is competitive within the digital asset ETF space, though specific comparisons require analysis of other active ETFs.

Legal Proceedings

• As of June 30, 2026, the Trust was not subject to any material legal proceedings, nor are any material legal proceedings threatened against the Trust.

Related Party Transactions

• The Trust engaged in digital asset trading activity with FalconX Bravo, Inc., a subsidiary of FalconX (an affiliated entity since November 2025), for the six months ended June 30, 2026, with purchases of $33,282,498 and sales of $10,978,762.
• For the three months ended June 30, 2026, the Trust engaged in digital asset trading activity with FalconX Bravo, with purchases of $25,672,132 and sales of $0.

Stakeholder Impact

• Shareholders experienced a significant decrease in the Net Asset Value (NAV) of their holdings due to the decline in bitcoin prices.
• The change in pricing benchmark provider may impact the Trust's ability to accurately track bitcoin's performance, potentially affecting investor confidence.
• The concentration risk means that any adverse movements in bitcoin's price will directly and significantly impact the value of shareholder investments.

Next Steps

• The Sponsor intends to enter into a licensing agreement with FTSE International Limited on or about August 24, 2026.
• The termination of the licensing agreement with the current Pricing Benchmark Provider is effective August 31, 2026.

Key Dates

Recommendation

The filing indicates significant negative performance driven by market conditions, with a substantial decrease in NAV and unrealized depreciation. While the underlying asset (Bitcoin) is volatile, the ETF's structure and the upcoming change in pricing benchmark introduce further uncertainty. Given the current market environment and operational changes, a 'hold' recommendation is prudent, awaiting stabilization and clarity on the new benchmark's performance.

Keywords

Bitcoin ETF, ARKB, Digital Assets, Cryptocurrency, Exchange Traded Fund, SEC Filing, Quarterly Report, Financial Statements