21Shares to Shut Down Two Cryptocurrency ETFs Amid Strategy Shift
21Shares has announced the closure of two actively managed cryptocurrency ETFs—ARK 21Shares Active Bitcoin Ethereum Strategy ETF (ARKY) and ARK 21Shares Active On-Chain Bitcoin Strategy ETF (ARKC)—as part of a strategic shift. Shareholders must sell their holdings by March 27, 2025, before liquidation begins on March 28.
Why Are These ETFs Closing?
The decision follows a routine market assessment and a shift in 21Shares’ investment strategy. Both ETFs, which trade on the Cboe BZX Exchange, have seen negative year-to-date (YTD) returns:
- ARKY (which invests in Bitcoin and Ethereum futures) is down -25.15%.
- ARKC (focused on Bitcoin futures and cash equivalents) has a YTD loss of -16.05%.
Despite these closures, 21Shares remains committed to cryptocurrency investments and continues its partnership with ARK Invest.
What Happens to Shareholders?
- Shareholders must sell their ETF holdings by March 27.
- If they fail to sell by the deadline, 21Shares will distribute cash equivalent to the liquidation value of their shares.
Bitcoin & Ethereum Market Update
- Bitcoin (BTC) is trading at $84,008.04, up 2.34% in the last 24 hours. However, trading volume has dropped 2.30%, and total market capitalization stands at $1.66 trillion.
- Ethereum (ETH) has risen 0.92% to $1,919.95, with a market cap of $231.57 billion. Despite this, trading volume has declined 31.21%, signaling potential consolidation.
The closure of ARKY and ARKC marks a strategic shift for 21Shares as the company refocuses its cryptocurrency investment approach in the U.S. market.
📌 Adapting to Market Realities: Strategic Retrenchment by 21Shares
In choosing to wind down the ARKY and ARKC ETFs, 21Shares has taken a strategic step back to reassess its product lineup in response to shifting investor interest and persistently weak performance. By mandating that shareholders wrap up their positions by March 27, 2025, with liquidation to follow on March 28, the firm underscores its commitment to prudent fund management and aligning offerings with market demand. While these closures signal less confidence in actively managed futures-based strategies amid turbulent crypto pricing, they also reflect a more disciplined approach, freeing up resources to focus on stronger, more in-demand products. With the crypto market still in flux, 21Shares’ decisiveness may position it more competitively for future innovation and growth within the evolving ETF landscape.
