21Shares Liquidates Two Bitcoin and Ether Futures ETFs Amid Market Downturn

28-04-2025
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Cryptocurrency asset manager 21Shares is set to close two exchange-traded funds (ETFs) linked to Bitcoin and Ether futures due to market weakness.

The two funds set to be liquidated are the ARK 21Shares Active On-Chain Bitcoin Strategy ETF (ARKC) and the ARK 21Shares Active Bitcoin Ethereum Strategy ETF (ARKY). According to a statement from 21Shares, investors will still be able to trade shares of these funds until the market closes on March 27, with liquidation expected to take place on or around March 28.

The funds are actively managed with expense ratios of 1% and 0.93%, respectively, but the decision to close comes as US spot Bitcoin ETFs have seen outflows of $1.66 billion this month alone. Meanwhile, the price of Bitcoin has fallen more than 12.8% since the start of the year, while the CoinDesk 20 Composite Index (CD20) has fallen about 24% over the same period.

Shareholders who hold shares of these two funds until the liquidation date will receive payments corresponding to the net asset value of the funds, according to the disclosure document. The liquidation decision reflects the challenges of the cryptocurrency market and the trend of money moving away from futures funds amid the current recession.