21Shares is Shutting Down Two of Its Cryptocurrency ETFs: ARK 21Shares Active Bitcoin Ethereum Strategy ETF (ARKY) and the ARK 21Shares Active On-Chain Bitcoin Strategy ETF (ARKC)

This decision follows a routine product review and market assessment, suggesting a shift in the company's strategy.

21Shares is shutting down two of its cryptocurrency exchange-traded funds (ETFs): the ARK 21Shares Active Bitcoin Ethereum Strategy ETF (ARKY) and the ARK 21Shares Active On-Chain Bitcoin Strategy ETF (ARKC).

This decision follows a routine product review and market assessment, suggesting a shift in the company’s strategy. Shareholders must sell their holdings by March 27, 2025, and the liquidation process will begin on March 28.

21SHARES TO LIQUIDATE OF TWO ETFS

Why Are These ETFs Closing?

Both ETFs, which trade on the Cboe BZX, are being closed because of a shift in 21Shares’s product strategy.

ARKY, which invests in both Bitcoin and Ethereum futures contracts, aims to outperform these two assets over the market cycle. However, its year-to-date return has been negative at -25.15%.

Meanwhile, ARKC, which focuses on future Bitcoin contracts and cash equivalents, has also seen negative results, with a -16.05% return.

21Shares liquidating two crypto ETFs (ARKY & ARKC) after "routine review" - both down big YTD with -25% and -16% نباشی. Last trading day March 27, cash out March 28. They say it's about "strategy alignment" but those numbers ain't lying. Anyone caught holding these bags?

Despite the closure of these funds, 21Shares maintains its ongoing partnership with ARK Invest and remains committed to offering other cryptocurrency investment products in the U.S.

Related: Ethereum Spot ETF Approval Could Lift All Crypto Boats, Says Kraken’s Perfumo

What Happens to Shareholder Investments?

According to the report, both ETFs will be liquidated on March 28, and shareholders must sell their holdings by March 27.

For those who fail to sell by the deadline, 21Shares will distribute cash equivalent to the value of their shares at the time of liquidation.

Bitcoin and Ethereum Market Performance

Bitcoin has been seeing impressive gains, trading at $84,008.04, up 2.34% over the past 24 hours. Despite this recent surge, there is a slight dip in Bitcoin’s trading volume, which has recorded a decline of 2.30%.

The cryptocurrency market capitalization stands at $1.66 trillion. Additionally, the circulating supply of Bitcoin has reached 19.83 million BTC, getting closer to the 21 million BTC cap, which could influence future price movements.

Related: BlackRock’s Crypto ETF Strategy Highlights Bitcoin and Ethereum

On the other hand, Ethereum has recorded an increase of 0.92%, currently trading at $1,919.95 over the last 24 hours. Its market capitalization is $231.57 billion, maintaining a strong position in the market.

However, Ethereum’s trading volume has decreased 31.21%, pointing to a possible consolidation.

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