Bitcoin’s Brutal Pullback Has ARKB Investors Searching for Answers

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By Austin Smith Published
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Bitcoin’s Brutal Pullback Has ARKB Investors Searching for Answers

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The ARK 21Shares Bitcoin ETF (CBOE:ARKB) offers investors a straightforward proposition: direct, regulated exposure to Bitcoin’s price with no leverage, no options mechanics, and a competitive 0.21% expense ratio. The problem it solves is access. Before spot Bitcoin ETFs launched in January 2024, getting clean Bitcoin exposure inside a brokerage account meant dealing with futures-based products, trusts trading at premiums or discounts, or self-custody. ARKB removed all of that friction.

The fund’s recent performance reflects Bitcoin’s own sharp pullback. ARKB is down 22.6% year-to-date through February 20, nearly mirroring Bitcoin’s own 22.6% YTD decline. That tracking precision is the point of the fund, but it also means investors absorb every downside move without cushion. On Reddit, the mood around Bitcoin-adjacent names has turned decidedly negative. One post titled Gold Spiking vs. BTC tanking captured the sentiment well, with the author writing: “Gold spiking vs. BTC tanking”, a thread that drew 278 upvotes and 570 comments from investors wrestling with the divergence between the two assets.

Photo of Austin Smith
About the Author Austin Smith →

Austin Smith is a financial publisher with over two decades of experience in the markets. He spent over a decade at The Motley Fool as a senior editor for Fool.com, portfolio advisor for Millionacres, and launched new brands in the personal finance and real estate investing space.

His work has been featured on Fool.com, NPR, CNBC, USA Today, Yahoo Finance, MSN, AOL, Marketwatch, and many other publications. Today he writes for 24/7 Wall St and covers equities, REITs, and ETFs for readers. He is as an advisor to private companies, and co-hosts The AI Investor Podcast.

When not looking for investment opportunities, he can be found skiing, running, or playing soccer with his children. Learn more about me here.

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