- 21Shares will shut down two crypto ETFs with liquidation set for March 28 and the last trading day on March 27.
- The firm says the decision is part of a product review but analysts link it to falling inflows and rising competition.
- Despite the closures crypto ETFs are growing with new filings for XRP, HBAR, DOGE, AVAX, and Ethereum staking approvals.
21Shares has announced its decision to terminate two of its cryptocurrency exchange-traded funds. The affected funds are the ARK 21Shares Active Bitcoin Ethereum Strategy ETF and the ARK 21Shares Active On-Chain Bitcoin Strategy ETF. The liquidation is scheduled for March 28, 2025, with March 27 set as the last trading day.
ETFs Face Liquidation Amid Market Adjustments
21Shares has provided details about its decision to modify its ETF products through periodic assessments of their performance. The business has established a strategy to synchronize its investment collection with market variability and investor demand evolution. Market analysts believe decreasing investor money inflow alongside rising market competition led to the fund’s demise.
Investors can sell their shares before the final trading date. After March 28, remaining assets will be liquidated, and shareholders will receive distributions based on their holdings.
Shifting ETF Landscape in the Crypto Market
Despite the liquidation, the ETF market remains active. 21Shares recently reduced fees for its Bitcoin Ethereum Core ETPs to 0.49%, aiming to attract more investors. Meanwhile, Bitwise introduced the OWNB ETF, targeting companies that hold Bitcoin on their balance sheets.
Rex Shares also entered the market with a Bitcoin Corporate Bond Convertible ETF. Several issuers have filed for new ETFs linked to XRP, HBAR, DOGE, and AVAX, seeking approval from the U.S. Securities and Exchange Commission. The Chicago Board Options Exchange has submitted an application for staking in Fidelity’s Ethereum ETF.
Competition and Market Demand Drive Changes
The cryptocurrency ETF sector has seen rapid developments, with issuers responding to regulatory changes and investor sentiment. The emergence of spot Bitcoin ETFs has intensified competition, making it harder for other products to maintain strong inflows. Additionally, market volatility continues to influence investor behavior, leading firms to reassess their offerings.
21Shares’ move reflects broader market adjustments as the crypto ETF space evolves. With new ETF applications under review, issuers are focusing on competitive pricing and strategic product development to maintain their market positions.
