Key Points
- ARKB, a Bitcoin ETF from Ark Invest and 21Shares, was among 11 approved spot bitcoin ETFs in January 2024.
- ARKB’s Bitcoin is custodied by Coinbase Custody Trust Company LLC.
The ARK 21Shares Bitcoin exchange-traded fund (ETF), also known as ARKB, is a specialized cryptocurrency fund.
This fund is a joint venture between the investment manager, Ark Invest, and the fintech company, 21Shares.
Spot Bitcoin ETFs and ARKB
ARKB is one of the 11 spot bitcoin ETFs that received approval on January 11, 2024.
It has shown impressive performance since its inception, even rising to the third position in terms of bitcoin under management.
However, ARKB’s volumes have remained relatively low compared to its competitors.
A spot bitcoin ETF is a type of exchange-traded fund that holds Bitcoin as its primary asset.
It allows investors to gain exposure to the cryptocurrency without the need for direct purchase or storage of Bitcoin.
Issuers and Custodians of ARKB
Ark Invest, founded by Cathie Wood in 2014, offers a variety of actively managed ETFs focused on specific themes such as fintech innovation.
The firm is recognized for its optimistic perspective on blockchain and other disruptive technologies.
21Shares, a Swiss fintech firm, specializes in providing cryptocurrency investment products.
It offers a range of exchange-traded products (ETPs), including ETFs, which track different cryptocurrencies.
These products provide investors with regulated exposure to digital assets through traditional brokerage accounts.
ARKB charges a management fee of 0.21%, which is subject to change and makes up the total annual fund operating expenses.
ARKB stands out from other spot Bitcoin ETFs as it is backed by two main companies: Ark Invest and 21Shares.
21 Shares US is the sponsor of ARKB, while Ark Investment Management acts as its sub-advisor.
The Bitcoin in ARKB is custodied by Coinbase Custody Trust Company LLC.
This company also provides custody services for spot Bitcoin ETFs from Grayscale Investments and BlackRock.
The companies behind ARKB have not officially made the fund’s Bitcoin addresses public.
However, Arkham Intelligence, a Bitcoin data tracking platform, claims to have discovered ARKB’s Bitcoin wallet address.
