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.
