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21Shares to Liquidate Two Bitcoin and Ethereum ETFs Amid Market Downturn

March 15, 2025 | By Francisco Rodrigues | Edited by Aoyon Ashraf

Crypto asset manager 21Shares has announced plans to liquidate two of its actively managed exchange-traded funds (ETFs) tied to bitcoin and ether futures, citing unfavorable market conditions.

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 will have the opportunity to trade shares until the market closes on March 27, with liquidation set to occur on or around March 28.

The decision follows a sharp decline in the cryptocurrency market, with U.S.-listed spot bitcoin ETFs seeing $1.66 billion in outflows this month.

Market Context:

The liquidation comes amid significant losses across the crypto sector. Bitcoin has dropped over 12.8% since the beginning of the year, while the broader CoinDesk 20 Index (CD20) has plummeted by approximately 24% during the same period.

Both ETFs carried expense ratios of 1% and 0.93%, respectively. Despite the promise of actively managed exposure to crypto futures, investor sentiment has shifted as market volatility intensifies.

As the crypto industry navigates ongoing turbulence, the move by 21Shares highlights broader investor caution and the challenges facing actively managed crypto investment products.