Futures ETFs Face Liquidation Amid Market Volatility

21Shares to Liquidate Two Bitcoin and Ether Futures ETFs Amid Market Downturn

March 15, 2025 - Swiss asset manager 21Shares has announced that it will be liquidating two of its exchange-traded funds (ETFs) that track the value of bitcoin and ether futures contracts. The move comes amid a market downturn that has seen the value of cryptocurrencies plummet.

The two ETFs, which are listed on the SIX Swiss Exchange, will be liquidated on March 25, 2025, according to a statement issued by 21Shares. The funds, which track the value of bitcoin and ether futures contracts, have seen their net asset values decline sharply in recent months.

"We have made the difficult decision to liquidate these two ETFs due to the significant decline in their net asset values," said a spokesperson for 21Shares. "This decision was made after careful consideration of the current market conditions and the impact it would have on our investors."

The liquidation of the two ETFs will see the assets held in the funds sold off and the proceeds distributed to investors. The move is expected to have a significant impact on the cryptocurrency markets, particularly in the short term.

The decision to liquidate the ETFs comes amid a broader market downturn that has seen the value of many cryptocurrencies decline. The price of bitcoin, for example, has fallen by more than 50% in recent months, while the price of ether has fallen by more than 60%.

The liquidation of the 21Shares ETFs is the latest in a series of developments that have highlighted the volatility of the cryptocurrency markets. In recent weeks, several major cryptocurrency exchanges have suspended trading in certain cryptocurrencies, citing concerns about market manipulation and other issues.

The liquidation of the 21Shares ETFs is also likely to have implications for the broader cryptocurrency markets. The funds were designed to provide investors with exposure to the value of bitcoin and ether, and their liquidation is likely to have a significant impact on the prices of these cryptocurrencies.

The move is also likely to have implications for other asset managers and investors who have exposure to the cryptocurrency markets. The liquidation of the 21Shares ETFs is a reminder of the risks associated with investing in cryptocurrencies, and the need for investors to carefully consider the potential risks and rewards before making any investment decisions.