21Shares Liquidates Bitcoin, Ether ETFs Amid Market Downturn

21Shares, a leading cryptocurrency asset manager, has announced the liquidation of two of its actively managed exchange-traded funds (ETFs) that are linked to Bitcoin and Ether futures. The decision comes as the cryptocurrency market experiences a significant downturn, prompting 21Shares to reassess its product offerings and align them with the current market conditions.

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 until the market closes on March 27 to trade their shares, with the liquidation process expected to commence on or around March 28. This move reflects 21Shares' strategic response to the evolving market dynamics and its commitment to providing investors with products that are well-positioned to navigate the volatile cryptocurrency landscape.

The liquidation of these ETFs is a clear indication of the challenges faced by the cryptocurrency market. The decision to shut down these ETFs underscores the need for continuous adaptation in the rapidly changing cryptocurrency market. By liquidating these ETFs, 21Shares aims to streamline its offerings and focus on products that are better positioned to navigate the volatile cryptocurrency landscape. This move is expected to have a significant impact on the cryptocurrency investment community, as these ETFs have been popular among investors seeking exposure to Bitcoin and Ether futures.

Shareholders who hold onto their shares until the liquidation date will receive payouts equal to their portion of the fund's net asset value. This process will involve the winding down of the ETFs' operations, with investors being given the opportunity to redeem their shares until the final trading date. The liquidation of these ETFs is part of a broader strategy by 21Shares to align its product portfolio with the current market conditions, reflecting the company's commitment to providing investors with products that are well-positioned to navigate the volatile cryptocurrency landscape.