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

21Shares liquidates Bitcoin and Ethereum ETFs as crypto market faces $1.66 billion in March outflows

  • 21Shares is liquidating two actively managed Bitcoin and ether futures ETFs (ARKC and ARKY) amid market downturn.
  • U.S.-listed spot bitcoin ETFs have experienced over $1.66 billion in outflows in March as cryptocurrency prices decline.
  • Shareholders must trade by March 27, with final liquidation expected around March 28.

Crypto asset manager 21Shares announced plans to shut down two of its actively managed cryptocurrency exchange-traded funds as digital asset markets face significant headwinds. The firm will liquidate both the ARK 21Shares Active On-Chain Bitcoin Strategy ETF (ARKC) and the ARK 21Shares Active Bitcoin Ethereum Strategy ETF (ARKY) by the end of March.

- Advertisement -

According to a company press release, investors have until market close on March 27 to trade shares of these funds, with the final liquidation scheduled to occur “on or around March 28.” The decision comes during a broader cryptocurrency market slump, with Bitcoin’s value falling more than 12.8% since the beginning of the year.

The actively managed ETFs carried relatively high expense ratios—1% for ARKC and 0.93% for ARKY—which may have contributed to their vulnerability during market downturns. These products differed from the more popular spot Bitcoin ETFs by actively managing futures contracts rather than directly holding the underlying digital assets.

The liquidation announcement coincides with significant capital outflows from cryptocurrency investment products. U.S.-listed spot bitcoin ETFs have seen more than $1.66 billion withdrawn during March alone, reflecting diminished investor confidence as the crypto market struggles.

Beyond Bitcoin’s decline, the broader digital asset market has experienced even steeper losses. The CoinDesk 20 Index (CD20), which tracks the performance of major cryptocurrencies, has dropped approximately 24% year-to-date.

Investors who maintain their positions in these 21Shares ETFs until the liquidation date will receive cash payments equal to their proportional share of each fund’s net asset value, according to the company’s statement.

The closure of these products highlights the challenges facing cryptocurrency investment vehicles during periods of market volatility, particularly for actively managed products with higher fee structures competing against newer, lower-cost alternatives.

- Advertisement -

✅ Follow BITNEWSBOT on Telegram, Facebook, LinkedIn, X.com, and Google News for instant updates.

Previous Articles:

- Advertisement -

Latest News

Coinbase Shares Hit Highest Level Since 2021 Nasdaq Debut

Coinbase stock reached its highest price since its 2021 listing, nearly returning to debut...

BPX Gains FCA Nod to Trade Tokenized Securities in the UK

BPX, a startup focused on trading tokenized securities, received several authorizations from the UK’s...

Shopify, Coinbase Launch USDC Payments; Mastercard Expands Crypto Access

Shopify and Coinbase allow merchants to accept USDC stablecoin payments, making crypto transactions easier...

Coinbase Launches Wrapped ADA and LTC on Base, COIN Hits New High

Coinbase has introduced wrapped versions of Cardano (ADA) and Litecoin (LTC) on its Ethereum...

ClickFix Attacks Surge 517% in 2025, Fake CAPTCHAs Spread Malware

ClickFix attacks using fake CAPTCHA verifications have risen by 517% in early 2025, according...

Must Read

6 Best VPN Providers That Accept Monero

Privacy and anonymity are probably the most important things that we should all consider in today's internet era. Although there are a lot of...