The ARK 21Shares Bitcoin ETF reported a significant decline in its financial performance for the first quarter of 2025, as detailed in its latest 10-Q filing. The Trust's net assets decreased to $3.92 billion as of March 31, 2025, down from $4.35 billion at the end of 2024. This decline was primarily attributed to a net decrease in net assets resulting from operations of $587.5 million, driven by a net realized and change in unrealized loss on investments in bitcoin totaling $585.2 million. The net asset value per share also fell to $82.25 from $93.22 in the previous quarter.
In terms of operational metrics, the Trust had 47,955,000 outstanding shares as of May 6, 2025, reflecting an increase from 46,690,000 shares at the end of 2024. The Trust issued 17.86 million shares during the quarter, while redeeming 16.94 million shares, resulting in a net increase of 915,000 shares. The total contributions for shares issued amounted to $1.69 billion, compared to $2.32 billion in the same period last year, indicating a decrease in capital inflow.
The Trust's investment strategy remains focused on bitcoin, with total investments in bitcoin valued at $3.92 billion as of March 31, 2025. The quantity of bitcoin held increased to 47,501.0671 from 46,607.1028 at the end of 2024. However, the fair value of these investments decreased significantly, reflecting a drop in bitcoin prices from $93,390.22 per bitcoin at the end of 2024 to $82,444.71 by the end of March 2025. This depreciation contributed to a net change in unrealized loss of $907.3 million during the quarter.
The Trust continues to operate as an emerging growth company and has opted not to use the extended transition period for complying with new or revised financial accounting standards. The Sponsor, 21Shares US LLC, has waived its fee for the first nine months following the Trust's listing on the Cboe BZX Exchange, which began on January 11, 2024. The Trust's management remains optimistic about future performance, although it acknowledges the inherent risks associated with the volatility of the digital asset markets. The Trust's outlook will depend on market conditions and the performance of bitcoin, with management emphasizing the importance of monitoring these factors closely.
About Ark 21Shares Bitcoin ETF
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