ARK 21 Shares Bitcoin ETF (ARKB) exposes the potential price appreciation of Bitcoin. It tracks the performance of Bitcoin (BTC) using reliable and regulated trading platforms. The ETF is meant for those looking to diversify their holdings in the digital assets niche, by scaling up along with the best ARK Invest and 21 Shares on crypto investments. ARKB brings to the table ARK’s research-driven investment advantages along with the functional infrastructure in digital asset management of 21 Shares.
ARKB ETF Holdings
When it comes to top holdings in ARKB, it basically holds Bitcoin. Geographically, ARKB has a reach mirroring the nature and widespread adoption of Bitcoin. This ETF offers investors access to Bitcoin’s performance, benefiting from the combined knowledge of ARK Invest and 21 Shares in overseeing assets.
| Name | Ticker | Shares | Price | Market Value | Weight |
| United States Treasury Bill 08/29/2024 | 912797KD8 | 3650000 | 99.693 | 3638794.5 | 28.70% |
| United States Treasury Bill 09/26/2024 | 912797KM8 | 5528000 | 99.299182 | 5489258.76 | 43.30% |
| CME Micro Bitcoin Aug24 | BMRQ4 Currency | 1 | 55000 | 5500 | 0.04% |
| CME Bitcoin Fut Aug24 | BTCQ4 Currency | 46 | 55000 | 12650000 | 99.79% |
| First American Government Obligations Fund 12/01/2031 | FGXXX | 1.32 | 100 | 1.32 | 0.00% |
| U.S. Bank Money Market Deposit Account 08/01/2031 | USBFS04 | 237.72 | 100 | 237.72 | 0.00% |
| Cash & Other | Cash & Other | 3548565.2 | 1 | 3548565.2 | 27.99% |
Note: Holdings are subject to change without any notice.
ARKB ETF Performance Analysis
The ARK 21 Shares Bitcoin ETF (ARKB) closely tracks Bitcoin’s value ups and downs. In the past, it has seen growth when the cryptocurrency market is doing well, mainly due to people using and investing in Bitcoin. The ETF’s performance is measured against Bitcoin’s price, making it easy to see how they compare. The below tables will give an overview of the performance of ARKB ETF.
NAV and Market Price
As of 4th October 2024, the Historical Data of the NAV and Market Price has been noted as follows:
| Indicators | Details |
|---|---|
| NAV | $62.27 |
| NAV Change | $1.57 | 2.58% |
| Median Bid/Ask Spread (30 Day) | 0.05% |
| Market Price | $62.38 |
| Market Price Change | $1.41 | 2.31% |
| Day’s Trading Volume | 804,566 shares |
Cumulative %
As of 31st August 2024, the Cummulative % is as follows:
| Period | NAV | Market Price |
|---|---|---|
| 1 Month | -10.52% | -10.04% |
| 3 Months | -12.72% | -13.20% |
| YTD | - | - |
| Since Inception | 28.38% | 27.87% |
When Bitcoin prices go up, ARKB tends to perform. If there are dips in the market, the ETF is also affected accordingly. As a result, the ETF solely concentrates on the currency industry, mirroring Bitcoin’s essence and widespread adoption.
Benefits and Risks
Benefits of ARKB ETF:
Growth Potential: ARKB offers exposure to Bitcoin, the asset in terms of market capitalization, showing significant potential for growth.
Easy Investment Route: This ETF offers a way to invest in Bitcoin without the complexities of trading or storing the currency.
Diversification Benefit: Incorporating Bitcoin into a portfolio can bring diversification advantages due to its correlation with assets, making ARKB investment management a good option for investors wanting to diversify their holdings.
Enhanced Security Measures: The fund employs cold storage techniques for Bitcoin, ensuring protection against hacking and theft compared to other custody options.
Market Risks of ARKB:
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- High Volatility: Bitcoin is renowned for its price fluctuations, which could result in losses within short timeframes.
- Regulatory Ambiguity: The regulatory landscape surrounding Bitcoin and cryptocurrencies is evolving, potentially impacting the ETF’s performance and operations.
- Market Vulnerability: Due to the ETF’s dependence on Bitcoin’s performance, any changes in the cryptocurrency market could have a negative effect on the ETF.
- Liquidity Concerns: Periods of liquidity in Bitcoin markets may affect the ETF’s ability to buy and sell assets at prices.
How to Buy ARKB ETF
Following these steps, investing in ARKB shares can become simple:
- Opening a Brokerage Account: First, check if your brokerage can trade the ARKB ETFs.
- Funding Your Account: If you haven’t made any investments, it may be difficult to make purchases. Therefore, you should make money available for your brokerage account.
- Searching for ARKB: You should navigate through the brokerage’s trading platform to look for the ticker symbol of the ARK 21 Shares Bitcoin ETF, which is ARKB.
- Placing an Order: Depending on the amount and price at which you are willing to buy, you can place an order. It could be a market order if you intend to buy at the current price, or a limit order if you want to buy at a specific value.
Investment Strategies for ARKB
- Long-term hold: As the price of Bitcoin rises, many investors will choose to hold their position in ARKB for extended periods. However, many ICO buyers will want to trade their pre-sale investments long before the market data is complete on ARKB.
- Diversification: If your portfolio overly relies on traditional assets, use ARKB to diversify your holdings. Additionally, its value is relatively uncorrelated with traditional assets.
- Dollar-cost averaging: Regularly investing the same amount of money lowers the average cost of an investment and is one of the best ARKB investment strategies . A wallet that invests $100 in ARKB daily has higher purchasing power when the price is low and lower purchasing power when the price is high.
- Hedging: ARKB as a hedge against traditional financial markets is a good investment vehicle that can reduce economic downturn and stock market volatility risks. Bitcoin often moves independently of traditional asset classes, so adding ARKB to a portfolio during market stress may stabilize returns.
Cost and Fees:
- Expense Ratio: ETF expense ratio for ARKB includes management fees and operational costs. You can find the data on the ARK Funds website.
- Trading Fees: When purchasing or selling shares, be aware that brokerage commissions and fees might be applicable.
- Bid-Ask Spread: Remember that the bid-ask spread, which is the variance between ARKB shares’ buying and selling prices, can affect your expenses during increased market volatility.
Conclusion
The ARK 21 Shares Bitcoin ETF (ARKB) offers an avenue to incorporate digital assets into a varied investment portfolio for investors. With the climate surrounding cryptocurrencies, especially as Bitcoin keeps hitting key price milestones, ARKB is a good investment tool for individual and institutional investors. Whether you are a novice retail investor or an institutional investor looking to figure out options into the realm of digital currencies, ARKB holds far less market risks than holding cryptocurrency. With this ARKB ETF overview, you can swiftly begin your investment journey.
For further guidance or details on investing in the ARKB Bitcoin Trust ETF (ARKB), click here to visit the ARKB support website.
