In-depth information about ARKB looks a bit scarce on the internet. So, in this article, Coinfeeds brings everything you need to know about the Bitcoin ETF to life.
Bitcoin ETFs, since their approval in January, have gained a lot of market share in the ETF ecosystem. While there are about 11 of them, ARK 21Share ETF, with the ticker “ARKB” has gotten a lot of attention with impressive inflows.
In this article, Coinfeeds looks at ARKB in detail— the reasons behind the ETF, its performance, inflows, and other important things to note.
ARKB is not an investment in Bitcoin (BTC). Instead, it is an investment in a trust with exposure to Bitcoin, put together by ARKInvest and the 21Shares company. Like other ETFs, the fund is registered under the Investment Company Act of 1940.
However, ARKB is not like other ETFs without exposure to the crypto ecosystem. The ETF is prone to higher volatility than most traditional assets. But why did the firms decide to issue an ETF with Bitcoin exposure? We will explain.
For many market participants, the incredible returns Bitcoin has produced over the years could be the reason traditional firms were now offering the stock. But that is not the case with ARKB. Here are three major reasons ARKB exists.
While buying ARKB may be enticing, it is important to note some information about the ETF. Hence, Coinfeeds provides the necessary data that investors need to know in this segment.
As of this writing, ARKB holds 43,175.901 worth of Bitcoin shares. At BTC’s price of $64,257, these assets have a market value of $2.77 billion. Furthermore, ARKB’s price was $64.23.
This value represents a 40.09% increase since its inception. On a 90-day horizon, the price is a 60.21% decrease despite decreasing slightly in the last 30 days. However, there were specific reasons for the decline in value.
Previously, the net flow of all Bitcoin ETFs including ARKB has been positive. However, there have been sell-offs from other issuers lately which has slowed down the pace inflows once had. As a result, the price has been affected.
Apart from that, BTC’s decline from the all-time high it hit in March has been another reason the value of the ETF declined. Should the price of Bitcoin revisit its all-time high and netflows become significantly positive again, then ARKB’s price might increase.
Despite the recent decline, ARKB has had periods where it outshined other ETFs. For instance, on March 28th, the ETF recorded inflows worth over $200 million, according to data from BitMEX Research.
However, the beginning of April was different. On April 3rd, outflows from ARKB surpassed that of Grayscale Bitcoin ETF (GBTC). During that period, ARKB had outflows worth $87.5 million. But as of this writing, HODL15Capital showed that ARKB had an inflow of $23 million on April 23rd.
Buying ARKB is straightforward. As mentioned above, Cboe BZX is the top platform for buying and selling the ETF. Apart from this platform, you can access the ETF on brokers like AvaTrade, Skilling, and Pepperstone.
However, you should note that market returns are based on the trade price of the asset. At the same time, the market performance of ARKB does not indicate the returns you would receive if you traded shares at other times.
For a clear understanding of the ETF, you can consider the total return. By definition, the total returns show the reinvestment of distributions on the ex-dividend date for NAV returns and the payment date for returns based on the market price.
Furthermore, it is important to note that the market price of the ETF’s shares may differ. Sometimes, this could be due to the market volatility which might affect the price. During this period, the asking price might exceed the bid price for the asset.
To end this article, remember that ARKB is just one of 11 Bitcoin ETFs available in the spot market. Should you intend to buy the shares, ensure to check every detail about the expense ratio, past price performance, inflows, and Bitcoin assets owned by the issuer.
While this is not financial advice, Coinfeeds believes that these factors will give you an insight if you should go ahead with buying ARKB or not. In addition, take note that the performance of the ETF is correlated to the price of Bitcoin. Hence, volatility could be higher than usual. As such, you should be aware of the risk of investing in the ETF.
There is a plethora of information only about Bitcoin ETFs and ARKB. However, if you need more information, you can visit, the ARK Invest and 21Shares official website to find out other details you might need.
Coinfeeds’ content is meant for information purposes only, and should not be taken as investment advice. For this particular content, the aim is not to drive you, as an investor, to buy ARKB or put your funds in any kind of Bitcoin ETF. If you plan to do so, please do your research, Coinfeeds will not be responsible for any investment decision taken based on this article.
