A significant shift is occurring in the crypto investment landscape. 21Shares has announced the liquidation of its Bitcoin and Ethereum futures exchange-traded funds (ETFs), surprising investors and analysts alike. This decision reflects the ever-changing nature of the market and raises questions about the future of crypto-based ETFs.
21Shares to Shut Down Bitcoin and Ethereum ETFs
21Shares, a prominent issuer of crypto-focused ETFs, has confirmed that it will terminate its Bitcoin and Ethereum futures ETFs. The liquidation date for both funds has been set for March 28. This move comes at a time when ETF applications in the U.S. are on the rise, making the decision particularly intriguing.
According to the announcement, the company will close the ARK 21Shares Active Bitcoin Ethereum Strategy ETF and the ARK 21Shares Active On-Chain Bitcoin Strategy ETF. The firm cited routine product portfolio evaluations and the need to adapt to market conditions as the primary reasons for this decision. However, some analysts speculate that the move is a response to recent surges in ETF outflows.
Rising ETF Outflows Add to Market Volatility
Investors have until March 27 to sell their shares, with this date marking the final trading session for both ETFs. 21Shares confirmed that as of March 28, all assets within the funds will be fully liquidated. In a statement, the firm noted, “Shareholders holding fund shares until the liquidation date will receive a distribution equal to their proportional ownership in the fund.”
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Despite the recent surge in ETF outflows, the market remains dynamic. In an effort to attract investors, 21Shares has reduced the fees for its Bitcoin Ethereum Core ETPs to 0.49%. Meanwhile, competitors continue to introduce new products. Bitwise has launched the OWNB ETF, which tracks companies holding Bitcoin on their balance sheets, while Rex Shares has introduced the first-ever Bitcoin Institutional Bond Convertible ETF.
What’s Next for Crypto ETFs?
Beyond Bitcoin and Ethereum, several issuers have submitted new ETF applications for other digital assets, including XRP, HBAR, DOGE, and AVAX. Meanwhile, Ethereum investors are watching closely as CBOE files for staking approval on Fidelity’s ETH ETF with the U.S. Securities and Exchange Commission (SEC).
As the crypto ETF landscape evolves, investors will be closely monitoring regulatory developments and market trends. The Bit Journal will continue to provide insights into how these changes impact the broader financial ecosystem.
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