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21Shares has announced plans to liquidate two of its actively managed exchange-traded funds (ETFs) that track Bitcoin and Ethereum futures.
The two funds, the ARK 21Shares Active On-Chain Bitcoin Strategy ETF (ARKC) and the ARK 21Shares Active Bitcoin Ethereum Strategy ETF (ARKY), will cease trading after the market closes on March 27. Liquidation set to occur on or around March 28.
21Shares' decision to liquidate these ETFs comes amid $1.66 billion in outflows from US-listed spot Bitcoin ETFs this month.
ARKC and ARKY carried expense ratios of 1% and 0.93%, respectively, and were designed to actively manage Bitcoin and ether futures strategies. Shareholders who hold their ETF shares until the liquidation date will receive payouts based on their portion of the fund’s net asset value at the time of liquidation, but the recent decline in crypto prices could impact the final value of their investments.
"Shareholders who receive a liquidating distribution will generally realize a capital gain or loss equal to the amount of the net asset value of their shares," 21Shares explained.
Year-to-date, Bitcoin and Ethereum are down 11% and 43% respectively.
Last month, Cboe BZX applied to list the 21Shares XRP ETF as a “Commodity-Based Trust.” 21Shares filed an application with the SEC for its 21Shares Core XRP Trust back in November. The fund would allow investors to buy shares in the ETF that tracks XRP's price without holding the digital currency itself.
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