21Shares to Liquidate Bitcoin and Ethereum ETFs Amid Market Decline

Crypto asset manager 21Shares is set to shut down two actively managed exchange-traded funds (ETFs) tied to Bitcoin and Ethereum futures due to a broader crypto market decline. The affected funds, ARK 21Shares Active On-Chain Bitcoin Strategy ETF (ARKC) and ARK 21Shares Active Bitcoin Ethereum Strategy ETF (ARKY), will cease trading at market close on March 27, with liquidation expected around March 28, according to a press release.

This move follows significant outflows from U.S.-listed spot Bitcoin ETFs, which have seen over $1.66 billion in redemptions so far this month. The crypto market downturn has impacted investor sentiment, with Bitcoin dropping more than 12.8% year-to-date, while the CoinDesk 20 Index (CD20) has declined by approximately 24% over the same period.

ARKC and ARKY carried expense ratios of 1% and 0.93%, respectively. Shareholders holding positions through the liquidation date will receive payouts based on the funds’ net asset value.

The decision to close these funds underscores the volatility of cryptocurrency markets and the shifting demand for investment products tied to digital assets. While actively managed crypto ETFs aim to provide strategic exposure, the increasing popularity of spot Bitcoin ETFs has reshaped investor preferences.

With Bitcoin and Ethereum prices struggling, the broader crypto investment landscape remains uncertain. Investors are closely watching for market stabilization and potential regulatory developments that could impact future fund offerings.