To determine how many shares of the ARK 21Shares Bitcoin ETF (ARKB) equal 1 Bitcoin (BTC), we need to consider the price of ARKB shares and the price of Bitcoin, as ARKB seeks to track Bitcoin’s performance (adjusted for the fund’s expenses and liabilities). Here’s the approach:
- Understand ARKB: ARKB is an exchange-traded fund (ETF) that aims to track the price of Bitcoin, as measured by the CME CF Bitcoin Reference Rate – New York Variant. The share price of ARKB reflects a fraction of Bitcoin’s value, adjusted for fees and operational costs.
- Obtain Current Prices:
- Bitcoin Price: As of April 16, 2025, the price of 1 BTC is approximately $83,661.23 USD, based on recent data.
- ARKB Share Price: As of March 7, 2025, the price of an ARKB share was $86.78. More recent pricing (closer to April 2025) is not available in the provided data, but we can use this as a reference point and note that ARKB’s price fluctuates with Bitcoin’s price.
- Calculate Shares per Bitcoin:
- Since ARKB tracks Bitcoin’s price, the number of ARKB shares equivalent to 1 Bitcoin can be estimated by dividing the price of 1 BTC by the price of 1 ARKB share.
- Formula:Number of ARKB shares=Price of 1 BTCPrice of 1 ARKB shareNumber of ARKB shares=Price of 1 ARKB sharePrice of 1 BTC
- Using the available data:Number of ARKB shares=83,661.2386.78≈964.06Number of ARKB shares=86.7883,661.23≈964.06
- Adjustments and Considerations:
- Fees: ARKB’s price accounts for the fund’s expense ratio and other liabilities. The sponsor, 21Shares LLC, has waived its management fee until January 23, 2025, or until assets reach $500 million, whichever comes first. This waiver minimizes the fee impact on the share price during this period.
- Tracking Error: ETFs like ARKB may not perfectly match Bitcoin’s price due to operational costs, custody fees, or market inefficiencies. However, ARKB is designed to closely track Bitcoin’s spot price, so the discrepancy is typically small.
- Price Volatility: Both Bitcoin and ARKB prices are volatile. The calculation above uses a Bitcoin price from April 16, 2025, and an ARKB price from March 7, 2025. For precise results, you’d need real-time prices for both on the same date.
- Final Estimate: Based on the available data, approximately 964 ARKB shares are equivalent to 1 Bitcoin. This is an approximation, as the exact number depends on real-time prices and any minor tracking differences.
Recommendation: To get an exact figure, check the current price of ARKB shares (available on financial platforms like CNBC or CBOE) and the current Bitcoin price (available on exchanges like Coinbase) on the same day. Divide the Bitcoin price by the ARKB share price using the formula above. For example, if Bitcoin is $84,000 and ARKB is $87 per share, you’d need approximately 965.52 shares.
Note: The calculation assumes no significant deviation between ARKB’s net asset value (NAV) and Bitcoin’s spot price. Always verify with real-time market data for investment decisions.