ARK 21Shares Bitcoin ETF Announces 3-for-1 Share Split to Boost Retail Accessibility

The ARK 21Shares Bitcoin ETF (ARKB) is set to undergo a 3-for-1 share split later this month. This move by the fund’s issuer, 21Shares, aims to enhance the appeal of the ETF to retail investors by making shares more accessible and affordable. The stock split is scheduled for June 16 and is intended to boost trading efficiency and attract a broader base of investors.

The investment strategy of the ETF, which is designed to track the price of Bitcoin (BTC), will remain unchanged. The ETF's Bitcoin holdings will also stay the same, and the total net asset value of the fund will not be affected by the split. A stock split involves dividing existing shares into multiple new shares, with the total value remaining the same. In this case, each share will be split into three, reducing the price per share to approximately a third of its current value.

This move is strategic as some investors may feel priced out when asset or share prices rise, which can deter them from investing in certain stocks. By lowering the price per share through a stock split, 21Shares aims to make the ETF more affordable for retail investors, even though the underlying value remains unchanged. As of June 2, ARKB closed trading at $104.25 a share, meaning that post-split, one share would be priced at just under $35.

The ARK 21Shares Bitcoin ETF, a collaboration between 21Shares and investment manager ARK Invest, has recently experienced significant outflows. It has seen six consecutive trading days of outflows totaling $430 million, with $74 million leaving the product on June 2. Despite this, ARKB remains the third-largest fund in terms of total aggregate inflows with $2.37 billion, trailing similar ETFs from other major financial institutions. Currently, ARKB has $4.8 billion in assets under management with a year-to-date return of 7.35%.

This share split initiative by 21Shares underscores the growing interest in Bitcoin and cryptocurrencies among retail investors. By making the ARK 21Shares Bitcoin ETF more accessible, the company is positioning itself to capitalize on the increasing demand for digital assets. The share split is a proactive step towards fostering a more inclusive investment environment, where a broader range of investors can participate in the potential growth of Bitcoin.