- 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.
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 U.S.-listed spot bitcoin ETFs have seen more than $1.66 billion withdrawn during March alone, reflecting diminished investor confidence as the crypto market struggles.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.
✅ Follow BITNEWSBOT on Telegram, Facebook, LinkedIn, X.com, and Google News for instant updates.
Previous Articles:
- TON Society Celebrates Return of Pavel Durov’s Passport, Calls It a Win for Free Speech
- Lithuanian Man Arrested in Kerala for $96 Billion Cryptocurrency Fraud Lived Frugally for Years
- Bitcoin Hovers at $83K as CZ Denies Binance Sale Rumors
- Trump White House Leak Reveals Potential Bitcoin Price Bombshell as Crypto Market Recovers
- Bitcoin Fails to Hold Above $85,000 Despite S&P 500 Gains
