NEWTOWN SQUARE, PA — Empowered Funds, LLC announced it will liquidate three exchange-traded funds (ETFs) tied to cryptocurrency futures and blockchain innovation, citing shifts in the digital assets market.
The affected funds are the ARK 21Shares Active Bitcoin Futures Strategy ETF (ARKA), the ARK 21Shares Active Ethereum Futures Strategy ETF (ARKZ), and the ARK 21Shares Blockchain and Digital Economy Innovation ETF (ARKD). All three will cease trading at the close of business on Thursday, September 25, 2025, with liquidation scheduled for around September 26.
Shareholders may sell their holdings before trading ends, though brokerage fees may apply. Those who still hold shares on the liquidation date will receive a cash distribution equal to their proportionate share of the fund’s net assets. Depending on individual circumstances, the payout could trigger capital gains or losses, making tax planning an important consideration.
Empowered Funds said the decision follows a review of the funds’ strategies in light of changes across the digital assets landscape. Crypto-linked ETFs have faced challenges as investor sentiment has shifted and regulatory scrutiny of digital assets has intensified.
Like all ETFs, the funds carried risks tied to volatility and derivatives. Unlike direct investments in bitcoin or ether, these ETFs gained exposure through futures contracts, which can behave differently than the underlying cryptocurrencies. The prospectuses also warned that investors could experience sudden and steep losses, including the possibility of a total loss of invested capital.
The funds, launched as part of a partnership with ARK Investment Management and 21Shares, had sought to capture growth in cryptocurrency-linked products and the broader blockchain economy. However, Empowered Funds’ decision underscores the hurdles facing newer, niche ETFs in building scale and sustaining investor interest.
Distributions from the liquidation will be handled by Quasar Distributors, LLC, with ARK and 21Shares continuing to serve as sub-advisers until the process is completed.
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