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21Shares to Liquidate Active Bitcoin and Ether Futures ETFs Amid Market Downturn

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Crypto asset manager 21Shares is set to liquidate two actively managed exchange-traded funds (ETFs) tied to bitcoin and ether futures amid a wider market downturn.

The funds slated for liquidation are the ARK 21Shares Active On-Chain Bitcoin Strategy ETF (ARKC) and the ARK 21Shares Active Bitcoin Ethereum Strategy ETF (ARKY). Investors can trade shares until the market closes on March 27, with liquidation expected to take place “on or around March 28,” according to a press release.

The actively managed ETFs, which have an expense ratio of 1% and 0.93%, respectively, are set to be liquidated as U.S.-listed spot bitcoin ETFs saw over $1.66 billion in outflows so far this month. The outflows come as cryptocurrency prices plunge. Bitcoin is down more than 12.8% year-to-date, while the broader CoinDesk 20 Index (CD20) has lost around 24% of its value over the same period.

Shareholders who hold onto their shares until the liquidation date will receive payouts equal to their portion of the fund’s net asset value, the document adds.
Read more: Bitcoin Price Drop to $80K: Crypto Market Analysis, ETF & Trump Impact





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21shares

21Shares To Liquidate Bitcoin and Ethereum Futures ETFs, Here’s All

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21Shares has announced that it is bringing down the curtain on its Bitcoin and Ethereum futures exchange-traded funds (ETFs). The issuer is eyeing March 28 as a tentative date for the liquidation of both ETFs amid a wave of new filings in the US.

21Shares Set To Liquidate Bitcoin and Ethereum ETFs

According to an announcement, crypto ETF issuer 21Shares has disclosed plans to ditch its Bitcoin and Ethereum futures ETFs. Per the announcement, the affected ETFs are the ARK 21Shares Active Bitcoin Ethereum Strategy ETF and the ARK 21Shares Active On-Chain Bitcoin Strategy ETF.

While the press release did not give clear reasons for the liquidations, it hinged its decision on a periodic review of its offerings. The statement cited a need to align existing product lineups with market dynamics and clients’ needs in a changing landscape.

However, pundits say the liquidations are a result of jarring ETF outflows in recent months.

Shareholders can sell their holdings up until March 27, a date touted as the last trading day for both ETFs. 21Shares plans to put the final nail in the coffin for both ETFs on March 28, liquidating all remaining assets.

“Shareholders who continue to hold shares of a Fund on the Fund’s Liquidation Date will receive a liquidating distribution with a value equal to their proportionate ownership interest in the Fund,” read the press release.

Increased ETF Activity In The Cryptoverse

Despite the wave of outflows, the ETF space is sizzling with frenetic activity. Buoyed by impressive returns, 21Shares slashed fees to 0.49% for its Bitcoin Ethereum Core ETPs.

Bitwise has rolled out its OWNB ETF to track companies holding Bitcoin on their balance sheets. Bitcoin ETF investors continue to put their faith in offerings in the face of price amid Rex Shares launching the first Bitcoin Corporate Bond Convertible ETF

Outside of Bitcoin, several issuers have filed for XRP, HBAR, DOGE, and AVAX ETFs with the US SEC. For Ethereum investors, CBOE has applied to the SEC to approve staking in Fidelity’s ETH ETF.

 

 

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Aliyu Pokima

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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21Shares Files S-1 Registration for Polkadot ETF With US SEC

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Investment management firm 21Shares has filed its S-1 registration statement for the Polkadot ETF offering with the US Securities and Exchange Commission (SEC). This DOT-focused fund marks one of the non-conventional crypto ETF applications filed with the regulator this week.

The 21Shares Polkadot ETF

According to the S-1 filing, 21Shares said the firm plans to list the Polkadot ETF on the Cboe BZX Exchange. The asset manager noted that the fund is a passive investment that does not seek to generate returns beyond tracking the price of DOT. Explaining this, 21Shares said this funds model means it will not speculatively sell DOT when the price is high and buy when it is low.

It informed prospective investors that it will not pursue its investment objectives through leverage or derivatives products. Having ruled out these measures, it said it would solely track DOT price as featured on the CME CF Polkadot-Dollar Reference Rate.

In addition to these updates, 21Shares said it will tap Coinbase Custody Trust Company, LLC as the custodian for the ETF product if approved. The asset manager highlighted the key technical strengths of Polkadot as part of the S-1 filing.

The asset manager described the protocol as an online, decentralized, distributed computing platform that operates on a peer-to-peer basis.

Polkadot ETF Is One Among Many

This 21Shares filing is the second time the firm is featured on the ETF front this week. As reported earlier, the Cboe exchange refiled its Solana 19b-4 application alongside those of VanEck, Canary Capital, and Bitwise.

Beyond 21Shares, the ETF scene is heating up at a very fast pace. Beyond XRP and Solana ETF filings, assets like Dogecoin, TRUMP, and BONK, among others, are also getting ETF filings.

Earlier, Grayscale filed for Dogecoin Trust with the US SEC. This Grayscale Dogecoin Trust is an institutional investor-focused product that might evolve into a full-fledged ETF later. Per the rate of filings, analysts believe issuers are testing the regulatory limits of American regulators.

Early Signs of US SEC Pivot

Since President Donald Trump’s inauguration, the crypto regulatory tides have changed. First, he appointed Mark Uyeda as acting Chairman of the US SEC. He also tapped Caroline Pham as the Commodity Futures Trading Commission (CFTC) Chair.

Already, both have shown signs of readiness to court the crypto industry. Besides setting up the Crypto Task Force, Mark Uyeda’s SEC has greenlighted its first digital currency ETF product.

The Bitwise Bitcoin and Ethereum ETF bagged approval, setting a pace for other related offerings in the market. With this precedent, the speculation that most of the newly filed crypto ETF products will bag approval is high.

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Godfrey Benjamin

Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.

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Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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