According to CoinDesk, crypto asset manager 21Shares has announced plans to liquidate two of its actively managed exchange-traded funds (ETFs) linked to bitcoin and ether futures. This decision comes in response to a broader market downturn affecting the cryptocurrency sector.
The ETFs set for liquidation are the ARK 21Shares Active On-Chain Bitcoin Strategy ETF (ARKC) and the ARK 21Shares Active Bitcoin Ethereum Strategy ETF (ARKY). Investors will have the opportunity to trade shares until the market closes on March 27, with the liquidation process expected to commence on or around March 28, as stated in a press release.
These actively managed ETFs, which carry an expense ratio of 1% and 0.93% respectively, are being liquidated following significant outflows from U.S.-listed spot bitcoin ETFs, which have seen over $1.66 billion in outflows this month alone. This trend coincides with a sharp decline in cryptocurrency prices, with bitcoin experiencing a drop of more than 12.8% year-to-date. Additionally, the broader CoinDesk 20 Index (CD20) has suffered a loss of approximately 24% of its value during the same period.
Shareholders who retain their shares until the liquidation date will receive payouts equivalent to their share of the fund's net asset value, as outlined in the document. This move reflects the ongoing challenges faced by the cryptocurrency market, which has been impacted by various factors, including regulatory developments and market volatility. U.S. President Donald Trump has also been a notable figure in discussions surrounding the cryptocurrency market, with his policies and statements influencing investor sentiment.
