A recent announcement revealed plans to liquidate two exchange-traded funds following a standard review.
The company has revealed its intentions to close down two of its funds that focus on Bitcoin (BTC) and Ethereum (ETH) futures. Specifically, the funds set for liquidation are the ARK 21Shares Active Bitcoin Ethereum Strategy ETF and the ARK 21Shares Active On-Chain Bitcoin Strategy ETF, both of which are listed on Cboe BZX. Investors will have until March 27 to buy or sell shares of these ETFs, with the official liquidation taking place on March 28. Shareholders who hold onto their shares until then will receive cash based on the valuation of their shares at the time of closure.
The decision to terminate these funds stems from their misalignment with the company’s current strategy, in light of the evolving market conditions and investor demands. Despite the closure of these specific funds, the company remains dedicated to providing cryptocurrency investment options in the United States.
ARK 21Shares Active Bitcoin Ethereum Strategy ETF (ARKY) focuses on investments in both Bitcoin and Ethereum futures contracts. The fund aims to surpass the performance of holding these two assets over a full market cycle but has experienced a year-to-date decline of -25.15%.
ARK 21Shares Active On Chain Bitcoin Strategy ETF (ARKC) invests in Bitcoin futures contracts as well as cash equivalents, with the goal of outperforming Bitcoin using a combination of conventional financial analysis and on-chain valuation techniques. Its year-to-date return is also in the negative, sitting at -16.05%.