21Shares Is Liquidating Two of Its Exchange-Traded Funds That Invest in Bitcoin (BTC) and Ethereum (ETH) Futures

21Shares has announced plans to liquidate two of its exchange-traded funds that invest Bitcoin (BTC) and Ethereum (ETH) futures.

21Shares, a leading provider of crypto investment products, is shutting down two of its exchange-traded funds that invest in Bitcoin (BTC) and Ethereum (ETH) futures.

The two funds, ARK 21Shares Active Bitcoin Ethereum Strategy ETF (ARKY) and ARK 21Shares Active On-Chain Bitcoin Strategy ETF (ARKC), will be liquidated on March 28, according to a statement. Both funds are currently trading on Cboe BZX. The last day to buy or sell shares of these ETFs will be March 27.

After that date, both funds will be closed and liquidated. Shareholders who don’t sell until the date will receive cash for their shares based on the value when the fund closes.

These two funds were launched in April 2021. ARKY invests both in Bitcoin and Ethereum futures contracts. The aim of the fund is to outperform holding both assets over a market cycle. Its year-to-date return has been negative at -25.15%.

ARKC invests in Bitcoin futures contracts and cash equivalents, aiming to outperform Bitcoin by leveraging standard financial analysis models and on-chain valuation models. Its year-to-date return is also negative at -16.05%.

Both funds struggled this year as the crypto market went down. Bitcoin has lost over 40% of its value since the beginning of the year.

In a joint statement, ARK Invest founder Cathie Wood and 21Shares CEO Sebastien Neretti said these funds no longer fit their strategy, given the current market and customer needs.

“After a routine review, we have made the difficult decision to wind down two of our U.S. registered exchange-traded funds,” the statement said.

“Despite this change, both ARK Invest and 21Shares remain fully committed to providing innovative crypto investment products to U.S. investors.”

Earlier this year, 21Shares applied for two new U.S. spot Bitcoin ETFs in partnership with crypto exchange Bitstamp.