Prominent asset manager 21Shares has announced the liquidation of two crypto futures ETFs focused on Bitcoin and Ethereum.

Per a recent press release, the move aligns with the firm’s ongoing efforts to adapt to market conditions. Additionally, the firm wants to address client needs and respond to changes in the digital asset landscape. The affected ETFs include:

• ARK 21Shares Active On-Chain Bitcoin Strategy ETF
• ARK 21Shares Active Bitcoin Ethereum Strategy ETF.

Notably, the liquidation process will occur at the end of March 2025, with final trading occurring on March 27, 2025. Meanwhile, shareholders will have the opportunity to sell their holdings in the two funds before the close of trading on March 27, 2025. Those who opt to sell before this date may incur standard brokerage fees. 

Moreover, any remaining shares on the liquidation date, March 28, 2025, will be converted into liquidating distributions. The value of these distributions will reflect each shareholder’s proportionate interest in the ETF at that time. The firm has advised investors to prepare for these changes in advance to minimize potential disruptions.

Tax Considerations for Shareholders

Investors who receive liquidating distributions may face tax implications depending on their individual circumstances. Specifically, the liquidation process could result in either a capital gain or loss based on the net asset value of the shares at the time of distribution.

As a result, 21Shares encouraged shareholders to consult with tax professionals to determine their tax liabilities. 

Strategic Direction and Market Adaptation

The liquidation reflects an effort to streamline offerings in response to evolving market conditions. 21Shares continues to assess its product suite to align with broader industry trends and client demand.

While these two ETFs will be removed from 21Shares’ portfolio, the firm remains to advance crypto investment solutions within regulated frameworks. 

Investors affected by this transition are advised to stay informed about alternative options available in the market. The company has stated that these changes are part of a broader strategic effort to refine its digital asset investment offerings.