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

Crypto asset manager 21Shares has announced the liquidation of two actively managed exchange-traded funds (ETFs) linked to bitcoin and ether futures in response to the current market downturn. The ETFs in question are the ARK 21Shares Active On-Chain Bitcoin Strategy ETF (ARKC) and the ARK 21Shares Active Bitcoin Ethereum Strategy ETF (ARKY), both of which will be available for trading until the market closure on March 27. The liquidation process is expected to be completed on or around March 28, as stated in a press release.

These actively managed ETFs have an expense ratio of 1% and 0.93% respectively and are being liquidated at a time when U.S.-listed spot bitcoin ETFs have experienced outflows exceeding $1.66 billion in the current month. This trend is aligned with the recent decline in cryptocurrency prices, with Bitcoin showing a year-to-date decrease of more than 12.8% and the CoinDesk 20 Index (CD20) losing approximately 24% of its value over the same period.

Investors who retain their shares until the liquidation date will receive payouts equivalent to their share of the fund’s net asset value. This decision to liquidate the ETFs comes amid a challenging market environment, where uncertainties and volatility have impacted various digital assets. The move by 21Shares reflects a strategic approach to manage risks and optimize returns for investors during these turbulent times.

As the cryptocurrency market continues to evolve, adaptability and flexibility are essential for asset managers and investors alike. By closely monitoring market trends and making timely adjustments to investment strategies, companies like 21Shares can navigate through uncertainties and position themselves for long-term success. The liquidation of the ARK 21Shares Active On-Chain Bitcoin Strategy ETF and the ARK 21Shares Active Bitcoin Ethereum Strategy ETF marks a strategic move by the asset manager to realign its portfolio and address market challenges effectively.

In conclusion, the decision to liquidate these ETFs underscores the importance of proactive risk management and strategic decision-making in the crypto asset management space. As the industry continues to mature, it is crucial for market participants to stay nimble and responsive to changing market dynamics. 21Shares’ move to liquidate the ETFs is a testament to its commitment to delivering value and optimizing returns for investors in a rapidly evolving market landscape.