21Shares will liquidate two of its Bitcoin and Ethereum futures contracts ETFs

21Shares has announced plans to liquidate two of its Ethereum (ETH) futures. Specifically, it is liquidating the ARK 21Shares Active Bitcoin Ethereum Strategy ETF and the ARK 21Shares Active On-Chain Bitcoin Strategy ETF, both of which trade on Cboe BZX. The deadline to buy or sell shares of these ETFs is March 27. Both will be officially liquidated on March 28. Shareholders who do not sell shares by that date will receive a cash amount based on the value of their shares when the funds are closed.

The reason for closing these funds is that they are not consistent with 21Shares’ strategy given the current needs of the market and clients. Despite the closure of these two funds, 21Shares and ARK Invest still intend to offer crypto investment products in the US.

The ARK 21Shares Active Bitcoin Ethereum Strategy ETF (ARKY) invests in both bitcoin and Ethereum futures contracts. The fund aims to outperform both assets during market cycles. Its annualized return was negative -25.15%.

The ARK 21Shares Active On Chain Bitcoin Strategy ETF (ARKC) invests in bitcoin and bitcoin equivalent futures contracts, attempting to outperform bitcoin using standard financial analysis and blockchain valuation models. Its annualized yield is also negative.