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06/04 05:59

ARK 21Shares Bitcoin ETF to Split Stocks for Retai

ARK 21Shares Bitcoin ETF to Split Stocks for Retail Investors

The ARK 21Shares Bitcoin ETF (ARKB) will split its stock 3-for-1 later this month as fund issuer 21Shares says it aims to make the fund more attractive to retail investors.

The stock split is scheduled for June 16 and is intended to “make the stock more accessible to a broader investor base and improve trading efficiency,” 21Shares said on June 2.

An exchange-traded fund (ETF) investment strategy aimed at tracking the price of bitcoin

BTC’s $105,555 price will remain unchanged, and its bitcoin holdings will remain the same, 21Shares said. It added that the ETF will continue to trade normally, and the fund’s total net asset value will also remain unchanged.

A stock split is when a company divides its existing shares into multiple new shares.  In a 3-for-1 split, each share becomes three shares, but the overall value remains the same.

Some investors may feel overvalued when asset or stock prices rise, which may discourage them from buying certain stocks. This causes some companies or ETF issuers to split their shares and lower the price per share, making them more accessible to retail investors, even if the underlying value has not changed.

ARKB closed trading on June 2 at $104.25 per share, meaning if the stock split occurred now, one share would be valued at a third of its current value, just under $35.

ARK 21Shares Bitcoin ETF, a joint offering from 21Shares and investment manager ARK Invest, recently became the worst-performing fund in terms of outflows out of 11 U.S. spot Bitcoin ETFs.

It has seen six consecutive trading days of outflows totaling $430 million.  That trend remained unchanged on June 2, when $74 million left the product, according to CoinGlass.

However, it is the third-largest fund in terms of cumulative inflows with $2.37 billion, behind similar ETFs from BlackRock and Fidelity.

ARKB currently manages $4.8 billion in assets, with an annualized return of 7.35%.

Bitcoin ETF Outflows Increase

US spot Bitcoin ETFs have bucked the inflow trend, with a cumulative net outflow of $1.2 billion over the past three trading days, according to CoinGlass.

The outflows have accelerated as bitcoin prices have fallen 4% from over $108,000 to just below $104,000 on June 2.

 Glassnode reported that last week's inflow of over 6,100 BTC marked the seventh consecutive week of net inflows, "highlighting continued demand despite the slowdown."

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