Plans for Splitting Stocks in the ARK 21Shares Bitcoin ETF Unveiled to Attract Retail Investors, Amidst Continued Outflows
Updated Scoop: Jump on our sizzlin' Telegram channel for the latest on crypto news and insights
The Ark 21Shares Bitcoin ETF (ARKB) is set to experience a 3x share split later this month as ARK Invest and 21Shares aim to lure more retail investors amid ongoing outflows.
The share adjustment is scheduled for June 16, 21Shares revealed in a June 2 statement, stating that it will make shares "more accessible for a wider pool of investors."
Cheaper Shares for the Masses
With the surge in the fund's share price by over 10% in the past month — now standing at $104.25 as per Google Finance data — 21Shares is also trying to minimize the risk of investors veering towards more affordable Bitcoin ETFs, such as BlackRock's IBIT, with shares priced at $59.36.
The investment strategy of the Ark 21Shares ETF will remain unchanged, while it's bitcoin holdings will stay the same. Furthermore, the ETF will continue trading normally, and the net asset value (NAV) of the fund will not be affected by the split, 21Shares added.
Outflows Persist for ARK 21 Shares Bitcoin ETF
The stock split proposal comes as the ETF experiences an extended run of outflows. Since May 27, investors have drained around $429.7 million from the fund, according to data from Farside Investors. This outflow stretch has extended ARKB's streak to 6 consecutive days as of June 3.
"ARKB has seen a hefty 20% of its total ETF holdings leaving in just one week. Ouch," tweeted popular crypto analyst, TheBitcoinTrail.
Is it because of poor returns compared to Treasury companies or are they adopting a risk-off strategy? It doesn't appear to be fee-related, but these aren't your typical crypto hodlers. Check out this tweet.
- TheBitcoinTrail (June 3, 2025)
Despite the persistent outflows, ARKB remains the third-best US spot Bitcoin ETF in terms of cumulative inflows. Since its launch in January 2024, ARKB has attracted $267.3 million. IBIT leads the pack, pulling in over $1.11 billion.
Bonus Info:
The massive outflows from the ARK 21Shares Bitcoin ETF can be attributed to various reasons:
- Bitcoin Volatility: The recent drop in Bitcoin's price, particularly under $105,000, has likely caused investor unease and reduced confidence in the market. As Bitcoin's price plummeted, it may have sparked selling pressure, contributing to outflows from Bitcoin ETFs such as ARKB[1].
- Sentiment Shift: The significant net outflows from Bitcoin ETFs like ARKB suggest a weakening of bullish sentiment among investors. This changing sentiment can create a self-reinforcing cycle, where further outflows exacerbate price declines[1][2].
- ARKB's Recent Performance: Despite still managing considerable assets under management and delivering a 7.35% year-to-date return, ARKB has experienced substantial outflows lately. On June 2, $74 million exited the fund, making it the worst performer among US spot Bitcoin ETFs in terms of net outflows over several trading days[2][4].
- Market Conditions: The wider market conditions for spot Bitcoin ETFs have also seen considerable outflows, with a total net outflow of $1.2 billion over three trading days. This trend indicates a broader deterioration of investor sentiment towards Bitcoin-related investments[2][5].
- Stock Split Impact: While the upcoming 3-for-1 stock split aim's to attract retail investors by lowering the share price, it may not immediately stop the outflow trend unless it significantly boosts retail participation[2][3].
All in all, these factors combine to indicate a challenging period for ARKB and the broader Bitcoin ETF market, driven by a mix of investor sentiment, price volatility, and broader economic conditions.
Extra Reads:
- Metaplanet Hits Lucky 8,888 BTC Milestone After New $117.5M Buy
- Trump Tariffs Reinstated, Triggering Biggest Bitcoin Outflows Since March
- OpenSea Tops the NFT Market Chart in May 2025
Best Wallet - Enhance Your Crypto Portfolio
Our Rating
- User-friendly, Feature-rich Crypto Wallet
- Gain early access to upcoming Token ICOs
- Supports Multiple Chains, Wallets, and Non-custodial storage
- Now Available on App Store and Google Play Store
- Stake and Earn Native Token $BEST
- Boasts over 250,000 Monthly Active Users
Join NowJoin Our Telegram channel to stay updated on the latest crypto news and insights.
The upcoming 3x share split of the Ark 21Shares Bitcoin ETF (ARKB) could attract more retail investors, as it aims to make shares more accessible (Following from the text: "The share adjustment is scheduled for June 16, 16Shares revealed in a June 2 statement, stating that it will make shares "more accessible for a wider pool of investors.")
Amid ongoing outflows, investors might explore alternative Bitcoin ETFs like BlackRock's IBIT, taking advantage of its lower share price and technological offerings while they weigh the benefits of investing in a technology-focused fund like ARKB (Linked to the text: "The investment strategy of the Ark 21Shares ETF will remain unchanged, while it's bitcoin holdings will stay the same. Furthermore, the ETF will continue trading normally, and the net asset value (NAV) of the fund will not be affected by the split, 21Shares added.")
