21Shares Closes Two Cryptocurrency ETFs Amid Market Shifts

21Shares, a leading provider of cryptocurrency exchange-traded funds (ETFs), has announced the closure of two of its actively-managed ETFs. The ARK 21Shares Active Bitcoin Ethereum Strategy ETF (ARKY) and the ARK 21Shares Active On-Chain Bitcoin Strategy ETF (ARKC) will be liquidated on March 28, 2025. This decision follows a routine product review and market assessment, indicating a strategic shift by the company. Shareholders are required to sell their holdings by March 27, 2025, before the liquidation process begins.

The closure of these ETFs is part of 21Shares' ongoing efforts to align its product offerings with market demands and investment strategies. ARKY, which invests in both Bitcoin and Ethereum futures contracts, has seen a negative year-to-date return of 25.15%. Similarly, ARKC, which focuses on Bitcoin futures contracts and cash equivalents, has experienced a negative return of 16.05%. Despite these closures, 21Shares remains committed to its partnership with ARK Invest and will continue to offer other cryptocurrency investment products in the U.S.

For shareholders, the liquidation of these ETFs means they must act promptly. Those who fail to sell their holdings by the deadline will receive cash equivalent to the value of their shares at the time of liquidation. This move underscores the importance of staying informed about changes in investment products and making timely decisions to protect one's investments.

The decision to close these ETFs comes at a time when the cryptocurrency market is experiencing various dynamics. While specific market conditions or regulatory changes are not detailed, the closure of ARKY and ARKC may reflect broader trends in investor sentiment or strategic adjustments by 21Shares. Investors holding these ETFs should carefully consider their positions and explore alternative investment vehicles or strategies for gaining exposure to Bitcoin and Ethereum.

In summary, the liquidation of ARKY and ARKC by 21Shares is a significant development in the cryptocurrency ETF market. It highlights the evolving nature of the investment landscape and the need for investors to stay informed and adaptable. As the market continues to change, investors should be prepared to reassess their portfolios and consider new opportunities that align with their investment goals and risk tolerance.