The ARK 21Shares (ARKB) bitcoin cash exchange-traded fund (ETF), one of the products approved by the SEC in January 2024, will undergo a stock split on June 16. 21Shares US announced this on Monday, explaining that the goal is to improve the fund's accessibility for investors.

The split will be 3 for 1, meaning that for every ARKB share currently held by an investor, they will now own three shares starting at market open that day. This transaction does not change the total value of the investment or the price of the bitcoin backing the fund. It simply reduces the price per share, multiplying the number of shares available.

For example, if an ARKB share is trading at $120 before the stock split, each new share will cost approximately $40 after June 16. If an investor held 10 shares, they will now hold 30, but the total value of their position will remain the same.

This type of split is common in financial markets when the unit price of an asset becomes high and can discourage small investors. By reducing the price per share, without altering the relationship with the underlying asset (in this case, Bitcoin), buying and selling becomes easier for those with smaller budgets or using fractional strategies.

It's worth noting that this does not imply a change in the fund's policy, nor does it anticipate movements in the Bitcoin price. It's a purely technical measure to improve liquidity and access to the ETF.