What to know:
- 21Shares will liquidate two actively managed ETFs tied to bitcoin and ether futures.
- The liquidation is set for March 28, with final trading available until March 27.
- The decision follows $1.66 billion in outflows from U.S.-listed spot bitcoin ETFs this month.
Crypto asset manager 21Shares is set to liquidate two actively managed exchange-traded funds (ETFs) tied to bitcoin and ether futures amid a wider market downturn.
The funds slated for liquidation are the ARK 21Shares Active On-Chain Bitcoin Strategy ETF (ARKC) and the ARK 21Shares Active Bitcoin Ethereum Strategy ETF (ARKY). Investors can trade shares until the market closes on March 27, with liquidation expected to take place “on or around March 28,” according to a press release.
The actively managed ETFs, which have an expense ratio of 1% and 0.93%, respectively, are set to be liquidated as U.S.-listed spot bitcoin ETFs saw over $1.66 billion in outflows so far this month. The outflows come as cryptocurrency prices plunge. Bitcoin is down more than 12.8% year-to-date, while the broader CoinDesk 20 Index (CD20) has lost around 24% of its value over the same period.
Shareholders who hold onto their shares until the liquidation date will receive payouts equal to their portion of the fund's net asset value, the document adds.