21Shares has pulled the plug on two of its cryptocurrency-focused exchange-traded funds amid a broader market downturn. The company announced plans to liquidate both the ARK 21Shares Active Bitcoin Ethereum Strategy ETF (ARKY) and the ARK 21Shares Active On-Chain Bitcoin Strategy ETF (ARKC). Tough luck for crypto enthusiasts who bought in.
The ETFs, which focused on Bitcoin and Ethereum futures through actively managed strategies, will see their last trading day on March 27, 2025. After that? Poof. Gone. Liquidation happens the next day, with any remaining shareholders getting cash distributions based on net asset value minus liquidation expenses. Not exactly the moon mission some investors hoped for.
This shutdown comes as the crypto market faces serious headwinds. U.S.-listed spot Bitcoin ETFs saw a staggering $1.66 billion in outflows. Both funds were designed to outperform their assets using specialized financial and on-chain valuation models. Volatility is up, investor sentiment is down. It’s almost like investing in digital magic internet money isn’t the guaranteed path to riches some YouTube influencers promised.
21Shares cited a “routine product review” and “current market dynamics” as reasons for the closures. The market appears to be in a classic bear market phase with prolonged price declines exceeding the 20% threshold. Translation: these products aren’t performing well enough to keep around. The company claims it’s aligning with changing client needs and optimizing its product lineup. How thoughtful of them.
Shareholders have options—limited ones. They can sell their holdings before March 27 or wait for the automatic liquidation. The liquidation is part of a broader trend reflecting investor caution in the cryptocurrency market. Either way, there might be tax implications. Capital gains, capital losses—the tax man always gets his cut.
Despite these closures, the partnership between 21Shares and ARK Invest continues. They remain “committed to advancing regulated cryptocurrency products.” Whatever that means in a market that seems increasingly skeptical of crypto assets.
Meanwhile, the broader ETF landscape keeps evolving. New filings, fee reductions, and regulatory discussions continue. The crypto ETF space isn’t dead—it’s just going through an awkward phase. Kind of like teenage years, but with billions of dollars at stake.
