In a significant move for the cryptocurrency investment landscape, 21Shares has announced the liquidation of two of its exchange-traded funds (ETFs) that focus on Bitcoin (BTC) and Ethereum (ETH) futures. This decision follows a routine review and reflects a shift in the company’s strategic direction to better align with current market trends and investor needs.
The two ETFs slated for liquidation are the ARK 21Shares Active Bitcoin Ethereum Strategy ETF (ARKY) and the ARK 21Shares Active On-Chain Bitcoin Strategy ETF (ARKC). Investors will have until March 27, 2025, to buy or sell shares of these funds, with official liquidation taking place on March 28, 2025. Shareholders who hold their shares until the funds close will receive cash distributions based on the value of their shares at that time.
- ARKY: This fund aimed to outperform the combined performance of Bitcoin and Ethereum over a market cycle. Unfortunately, it has reported a year-to-date return of -25.15%.
- ARKC: Focused solely on Bitcoin futures and utilizing sophisticated financial and on-chain valuation models, this ETF has also underperformed, showing a -16.05% year-to-date return.
Despite this closure, 21Shares remains committed to the cryptocurrency space, reaffirming its dedication to offering innovative investment products in the United States. This transition marks a strategic pivot as the company evaluates its offerings in response to evolving market conditions.
The decision to liquidate these funds highlights the increasing pressure on cryptocurrency-based investment vehicles to deliver value to shareholders. As asset managers adapt to the changing landscape, investors can expect a continued focus on innovative solutions that meet their financial goals.
Looking ahead, 21Shares and its partners, such as ARK Invest, are poised to explore new opportunities in the ever-evolving realm of cryptocurrency investment. The future will likely see a greater emphasis on the needs of investors and the dynamics of the market landscape.
