Crypto asset manager 21Shares has announced it will shutter two of its actively managed ETFs focused on Bitcoin and Ether futures, citing ongoing market turbulence and plummeting investor interest. The two funds—ARK 21Shares Active On-Chain Bitcoin Strategy ETF (ARKC) and ARK 21Shares Active Bitcoin Ethereum Strategy ETF (ARKY)—will officially cease trading at market close on March 27, with liquidation scheduled to follow on or around March 28, according to a press release from the firm.
The decision comes as part of a broader downturn, where the U.S.-listed spot Bitcoin ETFs have seen over $1.66 billion in outflows so far this month alone, reflecting a shift away from risk assets amid declining cryptocurrency prices. Year-to-date, Bitcoin has shed more than 12.8%, while the wider CoinDesk 20 Index (CD20)—which tracks the broader crypto market—has lost approximately 24% of its value.
Both ETFs, which carried expense ratios of 1% (ARKC) and 0.93% (ARKY) respectively, were part of 21Shares’ strategy to provide active management exposure to the volatile crypto derivatives market. However, the steep outflows and general bearish sentiment forced the firm to reconsider their viability.
Shareholders holding their positions until the liquidation date will receive payouts equivalent to their share of the funds’ net asset value, ensuring that investors can recoup their assets post-liquidation.
Inside 21Shares and ARK Invest
The liquidation of the two futures ETFs comes from two major players in the crypto investment space—21Shares and ARK Invest—both of whom have built strong reputations in the market by focusing on innovation and accessibility.
21Shares, one of the world’s earliest and largest issuers of cryptocurrency exchange-traded products (ETPs), was founded with the mission to make crypto assets more accessible to traditional investors. The firm made headlines in 2018 when it listed the world’s first physically-backed crypto ETP, paving the way for a new wave of regulated digital asset investment vehicles.
With a six-year track record under its belt, 21Shares now offers a wide array of crypto-focused ETFs and ETPs, listing products on some of the globe’s largest and most liquid securities exchanges. Beyond product offerings, the firm is known for delivering comprehensive research and client services, helping bridge the gap between traditional finance (TradFi) and decentralized finance (DeFi).
21Shares operates under the umbrella of 21.co, a global leader in decentralized financial infrastructure. Its commitment to providing regulated, innovative crypto products has played a key role in the growing institutional adoption of digital assets, despite the recent market challenges.
Partnering on the soon-to-be-liquidated ETFs was ARK Investment Management LLC (ARK Invest), a renowned U.S.-based investment adviser specializing in thematic investing in disruptive innovation. Spearheaded by veteran investor Cathie Wood, ARK has carved out a niche for itself by focusing on companies leading technological revolutions across multiple sectors—including artificial intelligence, blockchain, robotics, and space exploration.
ARK’s approach is underpinned by an open research model, which allows the firm to stay ahead of trends and identify transformative companies at an early stage. Their suite of investment strategies spans areas such as Fintech Innovation, Autonomous Technology, Next Generation Internet, and Genomic Revolution, aligning with their belief in the long-term value of disruptive innovation.
Quick Facts:
- 21Shares is set to liquidate its ARK 21Shares Active On-Chain Bitcoin Strategy ETF (ARKC) and ARK 21Shares Active Bitcoin Ethereum Strategy ETF (ARKY) by March 28.
- U.S.-listed spot Bitcoin ETFs have seen over $1.66 billion in outflows this month.
- Bitcoin’s price has declined by 19% over the past three months, while gold has appreciated by 12.5%.
