ARK 21Shares Bitcoin ETF Plans Stock Split To Attract Retail Investors As Outflows Persist

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ARKB bitcoin etf
ARKB bitcoin etf

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The ARK 21Shares Bitcoin ETF (ARKB) will undergo a 3:1 share split this month as issuers 21Shares and ARK Invest try to boost the product’s appeal to retail investors amid continued outflows.

The stock split is scheduled to happen on June 16, and should make shares “more accessible to a broader base of investors,” 21Shares said in a June 2 statement.

ARKB

ARKB Stock Split Will Make It Cheaper For Retail Investors To Join

The fund’s share price has surged more than 10% in the last month to stand at $104.25 as of 1:00 a.m. EST, Google Finance data shows. 

With the recent rally, 21Shares is also attempting to reduce the risk that investors pivot to more affordable Bitcoin ETFs, such as BlackRock’s IBIT, whose shares trade at $59.36. 

21Shares said the ARK 21Shares ETF’s investment strategy will remain unchanged, while its Bitcoin holdings will also remain identical. The issuer added that the ETF will continue trading as usual and that the net asset value (NAV) of the fund will be unchanged by the split.

Outflows Streak Continues For ARK 21 Shares Bitcoin ETF

21Shares’ planned ARKB stock split also comes as the ETF’s outflows continue. Since May 27, investors have withdrawn around $429.7 million from the fund, according to data from Farside Investors.

This has made the ARKB ETF the worst-performing fund among the US Bitcoin ETFs during this period, with the fund’s outflows streak extended to 6 days yesterday.

Despite the outflows, ARKB remains the third-best US spot Bitcoin ETF in terms of cumulative inflows. 

Since the funds launched in January last year, ARKB has seen $267.3 million enter its reserves. IBIT is the dominant fund, and has attracted over $1.11 billion so far.

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