21Shares, a crypto asset manager, is preparing to liquidate two actively managed exchange-traded funds (ETFs) linked to bitcoin and ether futures in response to a broader market downturn.
The ETFs being liquidated 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 liquidation expected to occur “on or around March 28,” as stated in a press release.
With expense ratios of 1% and 0.93%, respectively, the actively managed ETFs are being liquidated as U.S.-listed spot bitcoin ETFs have witnessed over $1.66 billion in outflows this month. These outflows coincide with a drop in cryptocurrency prices, with Bitcoin declining by more than 12.8% year-to-date and the broader CoinDesk 20 Index (CD20) losing approximately 24% of its value over the same period.
