Active Liquidation of 21Shares' Managed ETFs Due to Market Volatility
Title: 21Shares Shuts Down Bitcoin Strategy ETF Amid Market Volatility
First, let's talk about 21Shares, a prominent player in the world of crypto asset management. They've recently announced an unexpected move - liquidating two actively managed exchange-traded funds (ETFs) linked to Bitcoin and Ethereum futures. These funds, the ARK 21Shares Active On-Chain Bitcoin Strategy ETF (ARKC) and ARK 21Shares Active Bitcoin Ethereum Strategy ETF (ARKY), are facing the chopping block as part of a strategic response to ever-changing market conditions.
Farewell to ARKC and ARKY: Market Volatility Factors In
According to the statement from 21Shares, investors have until March 27 to trade their shares of both ETFs before the liquidation process begins. The funds will officially cease trading and go under the knife on or around March 28, with shareholders receiving payouts equal to their share of the net asset value at the time of liquidation.
ARKC, an ETF explicitly designed to invest in Bitcoin futures contracts and cash equivalents, promised to outperform Bitcoin by using financial analysis models and on-chain valuation techniques. However, it's no secret that the market environment has been far from favorable, with the ETF posting a year-to-date return of -16.05%.
ARKY, on the other hand, aimed to allocate assets across both Bitcoin and Ethereum futures contracts, in a bid to outperform holding both assets over a full market cycle. But alas, it too has struggled, returning -25.15% year-to-date. Such disappointing results are hardly surprising given the persistently downturned state of digital asset markets, leading fund managers to reconsider their offerings and even shut down underperforming products.
Bidding Farewell and Looking Ahead
Investors holding positions in ARKC and ARKY should take note and make their moves before March 27. Post-liquidation, shareholders will receive their final payouts based on the funds' net asset value. 21Shares didn't elaborate on additional reasons behind the closure, but it's clear that shifting investor sentiment and market trends have impacted crypto-related financial products. Stay tuned as we keep a close eye on 21Shares and the broader crypto market!
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Cryptocurrency investors should closely monitor the situation regarding 21Shares' liquidation of the ARK 21Shares Active On-Chain Bitcoin Strategy ETF (ARKC) and ARK 21Shares Active Bitcoin Ethereum Strategy ETF (ARKY), as shareholders will receive payouts based on the funds' net asset value by March 28. As both ETFs were designed to invest in crypto assets, this event emphasizes the impact of market volatility on cryptocurrency investments and crypto exchanges. Notably, 21Shares' move follows a pattern of reconsideration and closure of underperforming crypto-related financial products in the current market situation.
