According to Cointelegraph, the ARK 21Shares Bitcoin ETF (ARKB) is set to implement a 3-for-1 share split later this month, as announced by its issuer, 21Shares. The move, scheduled for June 16, aims to make the shares more accessible to a wider range of investors and improve trading efficiency. Despite the stock split, the ETF's investment strategy, which tracks the price of Bitcoin (BTC), will remain unchanged. The Bitcoin holdings of the fund will also stay the same, and the ETF will continue its usual trading operations without any alteration to its total net asset value.
A stock split involves dividing existing shares into multiple new shares, and in a 3-for-1 split, each share is divided into three, maintaining the overall value. This strategy is often employed to make shares more affordable to retail investors, who might feel priced out when share prices rise. As of June 2, ARKB closed trading at $104.25 per share, meaning post-split, each share would be valued at just under $35. The ARK 21Shares Bitcoin ETF, a collaboration between 21Shares and ARK Invest, has recently been the worst-performing fund among the 11 spot Bitcoin ETFs in the United States, experiencing six consecutive days of outflows totaling $430 million. On June 2 alone, $74 million exited the fund, as reported by CoinGlass.
Despite these outflows, ARKB remains the third-largest fund in terms of total aggregate inflows, with $2.37 billion, following similar ETFs from BlackRock and Fidelity. Currently, ARKB manages $4.8 billion in assets and has achieved a year-to-date return of 7.35%. Meanwhile, spot Bitcoin ETFs in the U.S. have seen a reversal from inflows to an aggregate net outflow of $1.2 billion over the past three trading days, coinciding with a 4% drop in Bitcoin prices from over $108,000 to just below $104,000 on June 2. Glassnode noted that the previous week's inflow of more than 6,100 BTC marked the seventh consecutive week of net inflows, indicating consistent demand despite a slowdown in momentum.
