ARK 21Shares Bitcoin ETF is an exchange‑traded fund that issues common shares of beneficial interest traded on the Cboe BZX Exchange under the ticker ARKB. The Trust’s investment objective is to track the performance of bitcoin as measured by the CME CF Bitcoin Reference Rate New York Variant, adjusted for the Trust’s expenses and liabilities. To achieve this objective the Trust holds bitcoin directly and values its shares daily based on the index price. The Trust operates as a passive vehicle, does not engage in active trading, and relies on a network of service providers including a sponsor, trustee, administrator, transfer agent, cash custodian, and several bitcoin custodians. The sponsor is ARK Investment Management LLC, which also provides marketing support, while the trustee is CSC Delaware Trust Company. The Bank of New York Mellon serves as administrator, transfer agent, and cash custodian. Coinbase Custody Trust Company, BitGo Bank and Trust, Anchorage Digital Bank, and BitGo New York Trust Company act as the bitcoin custodians, safeguarding the underlying assets in cold storage. The Trust does not hold commodities futures, is not a commodity pool, and is not registered as an investment company under the 1940 Act.

The Trust’s primary source of revenue is the unitary sponsor fee of 0.21 percent per annum applied to the total value of its bitcoin holdings. This fee is accrued daily, paid in bitcoin weekly, and is used by the sponsor to cover all ordinary operating expenses, including fees paid to the sub‑adviser, administrator, transfer agent, trustee, bitcoin custodians, and other service providers. The sponsor initially agreed to waive the entire fee for either the first nine months of trading or until the Trust’s assets reached one billion dollars, whichever occurred first; the asset threshold was reached in February 2024, ending the waiver period. After the waiver, the sponsor fee contributes to the Trust’s expenses and is reflected in the net asset value calculation. The sponsor may elect to convert the received bitcoin into cash at market prices, and any resulting conversion costs are borne by the sponsor, not the Trust. No other revenue streams are described in the filing, as the Trust does not engage in active trading or leverage.

In the rapidly growing market for spot bitcoin exchange‑traded products, the Trust competes with a range of similar offerings, including other ETFs that track bitcoin and trusts such as the Grayscale Bitcoin Trust. Competitive differentiation relies on the Trust’s fee structure, the reputation of its sponsor and sub‑adviser, and the security arrangements provided by multiple independent bitcoin custodians. The sponsor’s affiliation with the established 21Shares group, which manages billions of dollars in digital‑asset‑related products, adds credibility and operational expertise. While the Trust does not claim any proprietary advantage, its transparent index‑based methodology and daily NAV calculation aim to provide investors with a straightforward exposure to bitcoin’s price movements.

The Trust’s shares are created and redeemed in baskets of five thousand shares by authorized participants, which are registered broker‑dealers that have entered into agreements with the sponsor and the administrator. These participants facilitate both cash and in‑kind transactions, allowing institutional investors to obtain exposure through the exchange market. Ultimately, the investors who hold the shares range from retail traders seeking convenient bitcoin access to large institutions that use the ETF as a tool for portfolio allocation or risk management. The Trust does not disclose the names of individual shareholders, but its market is served by the usual participants in the U. S. exchange‑traded fund ecosystem, including market makers, proprietary trading desks, and asset‑management firms.