In a notable move reflecting current market conditions, crypto asset manager 21Shares is preparing to liquidate two of its actively managed exchange-traded funds (ETFs). These ETFs are linked to bitcoin and ether futures, and the liquidation comes amidst a wider downturn in the market.

The ETFs affected by this decision are the ARK 21Shares Active On-Chain Bitcoin Strategy ETF (ARKC) and the ARK 21Shares Active Bitcoin Ethereum Strategy ETF (ARKY). If you’re an investor holding shares in these funds, take note: trading will continue until the market closes on March 27. Liquidation is anticipated to occur “on or around March 28,” according to a press release.

These actively managed ETFs, with expense ratios of 1% and 0.93% respectively, are being liquidated at a time when U.S.-listed spot bitcoin ETFs have experienced significant outflows, exceeding $1.66 billion this month alone. These outflows coincide with a sharp downturn in cryptocurrency prices. To illustrate, Bitcoin has decreased by over 12.8% year-to-date, and the broader CoinDesk 20 Index (CD20) has seen a roughly 24% drop in value during the same period.

For shareholders who remain invested until the liquidation date, it’s important to know that they will receive a payout equivalent to their share of the fund’s net asset value, as stated in the official document.
Read more: Bitcoin Price Drop to $80K: Crypto Market Analysis, ETF & Trump Impact