21Shares, one of the largest issuers of exchange-traded bitcoin funds (ETFs), announced a 3-for-1 split of the ARK 21Shares Bitcoin ETF (ARKB) shares effective June 16, 2025. This decision aims to enhance the fund's availability to retail investors, according to the official statement issued on June 2.
Details of the split and its impact:
- Mechanism of action: Each shareholder will receive 3 shares for every share they own, reducing the individual share price to one-third of its previous value. For example, if the share price before the split was $104.25 (the closing price on June 2), it will be approximately $34.75 after the split.
- No effect on total value: The net asset value (NAV) of the fund, investment strategy, or underlying bitcoin holdings will not change, and trading will continue under the ticker ARKB.
Goals behind the split:
- Attracting retail investors: The split reduces the psychological barrier for small investors who may see high share prices as an obstacle to buying.
- Improving liquidity: The expected drop in share price is anticipated to increase daily trading volume, thereby enhancing the fund's liquidity.
- Addressing outflows: The decision comes at a time when the fund recorded an outflow of $430 million over 6 consecutive days, including $74 million on June 2 alone.
Fund performance and broader context:
- ARKB is the third largest bitcoin fund in the US market with assets totaling $4.8 billion, and total inflows of $2.37 billion since its launch.
- The fund has risen 12% since the beginning of 2025, outperforming many traditional sector funds.
- The split coincides with the bitcoin price rising above $100,000, enhancing the appeal of related funds to new investors.
Future expectations:
21Shares expects this move to contribute to increased inflows from retail investors, especially after a recent decline in demand for American bitcoin funds, such as the recorded outflow of $358 million on May 30.
It is noted that ARKB is a fund that is effectively backed by bitcoin, following the CME CF Bitcoin Reference Rate, providing structured exposure to the digital currency without the need to own it directly.
