The cryptocurrency asset management firm 21Shares plans to wind down two actively managed exchange-traded funds (ETFs) associated with bitcoin and ether futures amid a broader market decline.
The ETFs scheduled for liquidation are the ARK 21Shares Active On-Chain Bitcoin Strategy ETF (ARKC) and the ARK 21Shares Active Bitcoin Ethereum Strategy ETF (ARKY). Investors have until the market closes on March 27 to trade shares, with the liquidation anticipated to occur “on or around March 28,” as indicated in a recent announcement.
These actively managed ETFs have expense ratios of 1% and 0.93%, respectively, and are being liquidated as U.S.-listed spot bitcoin ETFs have experienced over $1.66 billion in outflows this month, coinciding with a drop in cryptocurrency prices. Bitcoin has fallen by more than 12.8% year-to-date, while the broader cryptocurrency market, as measured by the CoinDesk 20 Index (CD20), has seen a decrease of about 24% over the same timeframe.
Shareholders who retain their shares until the liquidation date will receive distributions that correspond to their share of the fund’s net asset value, as noted in the announcement.
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