21Shares to Liquidate Two Bitcoin and Ether Futures ETFs Amid Market Decline
Crypto asset manager 21Shares has announced plans to shut down two of its actively managed exchange-traded funds (ETFs) linked to Bitcoin and Ethereum futures due to ongoing market struggles.
The ETFs set for liquidation include the ARK 21Shares Active On-Chain Bitcoin Strategy ETF (ARKC) and the ARK 21Shares Active Bitcoin Ethereum Strategy ETF (ARKY). Investors will have the opportunity to trade shares until the market closes on March 27, with the liquidation process scheduled to begin on or around March 28, as per the company’s press release.
These funds, which carry expense ratios of 1% and 0.93%, are being discontinued as U.S.-listed spot Bitcoin ETFs experience significant capital outflows. So far this month, over $1.66 billion has exited these funds amid declining cryptocurrency prices. Bitcoin has dropped 12.8% year-to-date, while the broader CoinDesk 20 Index (CD20) has plunged by approximately 24% over the same period.
Shareholders who retain their holdings until the liquidation date will receive a payout corresponding to their share of the fund’s net asset value, the announcement confirmed.
