Key Takeaways
- ETF Liquidation: 21Shares US LLC in collaboration with ARK Investment Management LLC has announced the liquidation of two cryptocurrency ETFs which are the ARK 21Shares Active Bitcoin Ethereum Strategy ETF (ARKY) and the ARK 21Shares Active On-Chain Bitcoin Strategy ETF (ARKC).
- Reason for Liquidation: The decision follows a routine review of the firm’s product lineup to ensure alignment with market dynamics and client needs in a maturing digital assets landscape.
- Impact on Investors: Shareholders can sell their holdings until March 27, 2025. Post-liquidation the remaining investors will receive distributions equal to their ownership interest which may result in taxable events.
21Shares US LLC together with ARK Investment Management LLC announced the dissolution of their ARK 21Shares Active Bitcoin Ethereum Strategy ETF (ticker: ARKY) and ARK 21Shares Active On-Chain Bitcoin Strategy ETF (ticker: ARKC).
The firm decided to terminate these products as part of regular assessments which help match their products to market changes and client needs in the developing digital assets market.
Owners of ETF shares must amend them before March 27, 2025 through regular brokerage procedures. Both funds operate under the final trading day of March 27, 2025 and plan to execute liquidation on March 28, 2025.
Individuals who keep shares through liquidation will get distributions based on their share ownership at a possible tax liability level.
The closure of their U.S. Exchange-Traded Funds will not deter 21Shares and ARK Invest in their objective to develop regulated cryptocurrency products for the American market. The firms make clear that standard industry protocols include such product reviews and adjustments.
