The $2.6 billion ARK 21Shares Bitcoin ETF will become the 21Shares Bitcoin ETF, ticker TBIT, on Dec. 15, and ARK's marketing and sub-advisory agreement ends a week later. The filing gives no reason.
One of the partnerships that launched U.S. spot bitcoin ETFs is ending.
21Shares US LLC, the sponsor of the ARK 21Shares Bitcoin ETF, gave ARK Investment Management notice on Oct. 16 that it was terminating ARK's marketing and sub-advisory agreement, effective Dec. 22, according to a filing with the Securities and Exchange Commission made on Oct. 22. On Dec. 15, the sponsor intends to rename the fund the 21Shares Bitcoin ETF and change its ticker on Cboe to TBIT from ARKB.
The filing does not give a reason, name a replacement adviser or mention any change to the fund's fees. It was signed by Duncan Moir, president of the sponsor. ARK has not commented.
What the fund is
ARKB was among the spot bitcoin ETFs that began trading in January 2024. It had about $2.64 billion in assets as of Oct. 20, according to 21Shares, and charges 0.21% a year. Its shares closed Friday at $26.92.
The change does not affect what the fund holds. It continues to own bitcoin, and nothing in the filing indicates a change to its holdings, its structure or its listing beyond the new name and ticker.
A partnership already being unwound
The rebrand follows other changes. Earlier this year the fund switched its benchmark, ending a license with CF Benchmarks effective Aug. 31 and signing a new one with FTSE in August. ARK's own funds have been selling ARKB shares, including 350,270 shares sold by its ARKF fund on Oct. 9.
Why it is happening now
The filing does not say, and neither company has explained the decision. The termination came from 21Shares, not ARK.
One possibility is cost: the sponsor pays ARK out of the fund's fee, and in a category where flows have concentrated in the largest funds, a co-brand may no longer bring in enough money to justify the revenue share. Another is that ARK is repositioning away from a product it does not control. A third is that this is a routine contract change with no consequence for holders.
The backdrop is not helpful for smaller issuers. Spot bitcoin ETFs lost about $773.5 million over Thursday and Friday, and ARKB itself had $109.4 million of outflows on Oct. 22.
What to watch
Any statement from ARK or 21Shares on the reason, whether the fund's fee changes with the new name, whether ARK launches or partners on a different bitcoin product, and the rename on Dec. 15.