21Shares to Liquidate Two Bitcoin and Ether Futures ETFs Amid Market Downturn

Crypto asset manager 21Shares has announced the liquidation of two actively managed exchange-traded funds (ETFs) tied to bitcoin and ether futures as part of a broader market downturn.

Key Details:

The affected funds are the ARK 21Shares Active On-Chain Bitcoin Strategy ETF (ARKC) and the ARK 21Shares Active Bitcoin Ethereum Strategy ETF (ARKY).

Investors can trade shares until the market closes on March 27, with liquidation expected to occur “on or around March 28,” according to a press release.

The ETFs, with expense ratios of 1% and 0.93%, respectively, are being shut down amid over $1.66 billion in outflows from U.S.-listed spot bitcoin ETFs this month.

Market Context:

The decision to liquidate comes as cryptocurrency prices continue to struggle. Bitcoin (BTC) has dropped more than 12.8% year-to-date, while the broader CoinDesk 20 Index (CD20) has declined by approximately 24% during the same period. These significant losses have led to reduced investor interest in crypto-related ETFs.

Shareholders who hold onto their shares until the liquidation date will receive payouts equivalent to their portion of the fund’s net asset value, the company stated.

This move highlights the impact of ongoing volatility in the crypto market, with investors reevaluating their exposure to digital asset funds in light of the current economic landscape.