21Shares Liquidates Two Bitcoin and Ethereum Futures ETFs

The decision comes at a time of difficulty for the cryptocurrency market, characterized by significant capital outflows from investment funds on Bitcoin.

21Shares is liquidating two exchange-traded funds (ETFs) linked to Bitcoin and Ethereum futures amid a period of difficulty for the cryptocurrency market, characterized by significant capital outflows from investment funds on Bitcoin.

The two ETFs that will be closed are the ARK 21Shares Active On-Chain Bitcoin Strategy ETF (ARCC) and the ARK 21Shares Active Bitcoin Ethereum Strategy ETF (ARKY). Investors will be able to continue trading the shares until the market closes on March 27, 2025, with settlement expected “around March 28.”

The ETFs currently have an expense ratio of 1% and 0.93% respectively, and their closure coincides with the sharp decline in the value of cryptovalute in recent weeks.

Capital outflows from Bitcoin ETFs penalize the market

One of the main reasons for 21Shares’ decision is the significant outflow from exchange-traded funds on Bitcoin listed in the United States, which reached 1.66 billion dollars in the month of March alone. This phenomenon reflects a broader investor uncertainty towards digital assets, during a bear market period for cryptocurrencies.

The price of Bitcoin has lost over 12.8% since the beginning of 2025, while the CoinDesk 20 Index, which tracks the performance of the main cryptocurrencies, has recorded a decline of 24% in the same period. The difficulties in the sector have led fund managers like 21Shares to reassess their investment strategies and reorganize their financial product offerings.

What happens to investors after the closure of ETFs?

The shareholders who hold their shares until the time of liquidation will receive a payment based on their share of the net asset value of the fund. This means that the amount received will be proportional to the performance of the fund until the closing date.

The decisions made by companies like 21Shares highlight how the cryptocurrency market is subject to strong volatility and sudden changes in investment management strategies. Investors will therefore need to closely monitor the trend of the sector and carefully evaluate their financial moves.