ARK 21Shares Bitcoin ETF Reports $4.35 Billion NAV for Fiscal Year Ending December 31, 2024

The ARK 21Shares Bitcoin ETF has reported significant financial performance for the fiscal year ending December 31, 2024, with a net asset value (NAV) of $4.35 billion, reflecting a substantial increase from its initial seed capital. The Trust's investment in bitcoin, valued at $4.35 billion, was driven by a notable appreciation in bitcoin prices, which rose from $46,666.89 per bitcoin at the beginning of the year to $93,390.22 by year-end. The Trust recorded a net increase in net assets resulting from operations of approximately $1.89 billion, primarily due to a net change in unrealized appreciation of $1.27 billion on its bitcoin holdings.

Compared to the previous fiscal period, this marks a significant transformation for the Trust, which began operations in December 2023. The Trust issued a total of 95.56 million shares during the year, with 48.87 million shares redeemed, resulting in a net increase of approximately 46.69 million shares outstanding. The Trust's operational expenses included a Sponsor Fee of $5.73 million, which was waived for the first $1 billion of assets, a threshold reached in April 2024.

Strategically, the Trust has maintained a focus on its core investment objective of tracking the performance of bitcoin as measured by the CME CF Bitcoin Reference Rate—New York Variant. The Trust is managed by 21Shares US LLC, which has a history of providing exchange-traded products in the digital asset space. The Trust's operational framework includes partnerships with multiple custodians, including Coinbase Custody Trust Company, BitGo, and Anchorage Digital Bank, which hold the Trust's bitcoin assets.

Operationally, the Trust has seen a steady increase in its user base, with 46.69 million shares outstanding as of December 31, 2024. The Trust's engagement metrics indicate a growing interest in bitcoin investments, as evidenced by the significant trading volume on the Cboe BZX Exchange, where the Trust's shares are listed under the ticker symbol "ARKB." The Trust's market share in the bitcoin ETF space is expected to grow as it continues to attract investors seeking exposure to bitcoin without the complexities of direct ownership.

Looking ahead, the Trust's management has expressed optimism about the future, citing the potential for continued growth in the bitcoin market and the increasing acceptance of digital assets. However, the filing also includes forward-looking statements that highlight the inherent risks associated with bitcoin investments, including market volatility, regulatory changes, and operational challenges. The Trust's ability to adapt to these factors will be crucial in maintaining its growth trajectory and achieving its investment objectives.