Prominent asset manager 21Shares has announced the liquidation of two crypto futures ETFs focused on Bitcoin and Ethereum.

Per a recent press release, the move aligns with the firm's ongoing efforts to adapt to market conditions. Additionally, the firm wants to address client needs and respond to changes in the digital asset landscape.

Prominent asset manager 21Shares is winding down two crypto futures ETFs tracking Bitcoin and Ethereum.

According to a recent press release by the firm, the move is part of its broader strategy to adapt to changing market conditions.

The affected ETFs are:

The liquidation process will commence at the end of March 2025, with final trading on March 27, 2025. Shareholders can sell their holdings in the two funds before the close of trading on March 27, 2025, subject to standard brokerage fees.

Any remaining shares on the liquidation date, March 28, 2025, will be converted into liquidating distributions, valued at each shareholder’s proportionate interest in the ETF at that time.

Investors are advised to adjust their investment plans accordingly to minimize potential disruptions.

Tax Implications for Shareholders

Investors who receive liquidating distributions may have tax implications to consider based on their individual circumstances.

The liquidation process could result in either a capital gain or loss depending on the net asset value of the shares at the time of distribution.

As a result, shareholders are encouraged to consult with tax professionals to determine their tax liabilities.

Strategic Direction and Market Adaptation

This liquidation initiative reflects 21Shares’ effort to streamline its offerings in response to evolving market conditions.

The firm will continue to assess its product suite to align with broader industry trends and client demand.

While these two ETFs will be removed from 21Shares’ portfolio, the firm remains committed to advancing crypto investment solutions within regulated frameworks.

Investors affected by this transition are advised to stay informed about alternative options available in the market.

The company's statement mentions that these changes are part of a broader strategic effort to refine its digital asset investment offerings.