In the context of the cryptocurrency market facing a challenging period, the digital asset management company 21Shares has just announced the liquidation of two Bitcoin and Ethereum futures ETF funds. This move reflects the difficulties that the crypto market is facing, especially after a strong wave of capital withdrawal from spot Bitcoin ETF funds in the U.S.


Which two ETF funds are being liquidated?


The two funds #ETF that will be liquidated are:



  • ARK 21Shares Active On-Chain Bitcoin Strategy ETF (ARKC)


  • ARK 21Shares Active Bitcoin Ethereum Strategy ETF (ARKY)



Investors can continue to trade these funds until March 27, after which the liquidation will take place around March 28.


What reasons did 21Shares give for this decision?


According to the announcement from 21Shares, this decision was made after the spot Bitcoin ETFs in the U.S. witnessed outflows totaling $1.66 billion just this month. This strong capital withdrawal occurred amid the cryptocurrency market decline:



  • Price #bitcoin has fallen by more than 12.8% since the beginning of 2025.

  • The CoinDesk 20 Index (CD20) has lost about 24% of its value.



This sharp decline indicates investor concerns about the macroeconomic situation as well as the ability to maintain the appeal of the crypto market.


What should investors be aware of?


Investors still holding shares of the two aforementioned ETFs will receive payments corresponding to the net asset value of the fund at the time of liquidation. This means that if the asset prices in the fund continue to fall, the amount investors receive will also be less.


What will the crypto market look like after this move?


The withdrawal of a major company like #21Shares from the two Bitcoin and Ethereum futures ETF funds is a notable sign of declining investor sentiment. However, there is also the view that this may just be a restructuring move by 21Shares to focus on more promising investment products.


However, with the sharp decline in Bitcoin and Ethereum prices recently, investors still need to be cautious before upcoming volatility.


Conclusion


The liquidation of the two ETFs by 21Shares is a testament to the challenges of the crypto market at this time. Investors need to closely monitor subsequent developments and have appropriate risk management strategies.


⚠ Risk Warning: The cryptocurrency market is highly volatile and may not be suitable for everyone. Please conduct thorough research before making investment decisions.