Empowered Funds to Liquidate Certain ETFs

Rhea-AI Summary

Empowered Funds, LLC has announced the liquidation of three cryptocurrency-focused ETFs: ARK 21Shares Active Bitcoin Futures Strategy ETF (ARKA), ARK 21Shares Active Ethereum Futures Strategy ETF (ARKZ), and ARK 21Shares Blockchain and Digital Economy Innovation ETF (ARKD).

The decision comes after reviewing the products' strategies considering changes in the digital assets landscape. The last trading day will be September 25, 2025, with liquidation occurring around September 26, 2025. Shareholders can sell their holdings before the liquidation date or receive a liquidating distribution proportionate to their ownership interest.

The liquidation may result in taxable events for shareholders, who are advised to consult tax advisors regarding potential tax implications.

Positive

• None.

Negative

• Liquidation of three crypto-focused ETFs indicates challenges in the digital assets landscape
• Complete termination of investment products suggests failure to maintain economic viability
• Shareholders may face potential tax implications from forced liquidation

Insights

ETF & Cryptocurrency Investment Specialist

Empowered Funds liquidating three crypto-related ETFs signals continued challenges in digital asset investment products despite institutional interest.

The announced liquidation of three ARK 21Shares ETFs focusing on Bitcoin futures, Ethereum futures, and blockchain innovation represents a significant development in the institutional cryptocurrency investment landscape. The decision to shutter these funds "based on a review of the products' strategies in light of changes in the digital assets landscape" likely indicates insufficient asset gathering or performance issues that made these particular vehicles unsustainable.

This liquidation follows a pattern we've seen with several crypto-themed ETFs that struggled to gain sufficient traction with investors. The funds - ARKA (Bitcoin Futures), ARKZ (Ethereum Futures), and ARKD (Blockchain Innovation) - are notable as they represent collaboration between high-profile investment firms ARK Invest and 21Shares, both known entities in the digital asset space.

Current shareholders face important decisions: sell shares before September 25th (potentially incurring brokerage fees) or hold until the September 26th liquidation and receive proportionate NAV distribution. The latter option triggers a taxable event for shareholders, necessitating tax planning. This announcement serves as another reminder of the still-evolving nature of cryptocurrency investment products and the challenges they face in mainstream financial markets despite institutional involvement from established firms.

NEWTOWN SQUARE, Pa., Sept. 8, 2025 /PRNewswire/ -- Empowered Funds, LLC today announced the scheduled liquidation of certain ETFs for which it serves as the investment adviser. The ETFs scheduled for liquidation are the following (the Funds):

• ARK 21Shares Active Bitcoin Futures Strategy ETF (Cboe BZX: ARKA)
• ARK 21Shares Active Ethereum Futures Strategy ETF (Cboe BZX: ARKZ)
• ARK 21Shares Blockchain and Digital Economy Innovation ETF (Cboe BZX: ARKD)

The Funds are being liquidated based on a review of the products' strategies in light of changes in the digital assets landscape.

Shareholders may sell their holdings in the Funds prior to the end of the trading day on Thursday, September 25, 2025, and customary brokerage charges may apply to these transactions. The last day of trading for both Funds will be September 25, 2025. The Funds will liquidate on or around September 26, 2025 (the "Liquidation Date"). 

Shareholders who continue to hold shares of a Fund on the Fund's Liquidation Date will receive a liquidating distribution with a value equal to their proportionate ownership interest in the Fund on the date. Shareholders who receive a liquidating distribution will generally realize a capital gain or loss equal to the amount of the net asset value of their shares. 

Distribution of liquidation proceeds, if any, to a Fund's shareholders may result in a taxable event for shareholders, depending on their individual circumstances. Shareholders should consult their own tax advisors about any tax liability resulting from the receipt of liquidation proceeds.

Important Information

Investors should consider the investment objectives, risks, charges and expenses carefully before investing. For a prospectus or summary prospectus with this and other information about the Funds, please call: (215) 330-4476 or visit the Funds' website at: www.21Shares-funds.com Read the prospectus or summary prospectus carefully before investing.

Investments involve risk. Principal loss is possible. Bitcoin, Bitcoin Futures, Ethereum, and Ethereum Futures are relatively new investments, which have unique and substantial risks and which may be more volatile than other types of investments. The value of an investment in the Funds could decline significantly and without warning, including to zero. You may lose the full value of your investment within a single day. If you are not prepared to accept significant and unexpected changes in the value of the Funds and the possibility that you could lose your entire investment in the Fund you should not invest in the Funds. The performance of Bitcoin Futures and/or Ethereum Futures may differ from the performance of bitcoin and/or ethereum respectively. Derivatives Risk: The Funds use of derivatives (in the form of Bitcoin and Ethereum Futures) presents risks different than investing directly in traditional securities. Using derivatives can lead to losses because of adverse movements in the price or value of the underlying reference asset, which may be magnified by features of the derivatives. New Fund Risk: The Funds are newly organized, non-diversified management investment companies with no operating history. There can be no assurance that the Funds will grow to or maintain an economically viable size, or that an active trading market for the Funds shares will develop or be maintained.

The Funds do not invest directly in bitcoin, ether or other digital assets or maintain direct exposure to "spot" bitcoin or ether.

The Funds are distributed by Quasar Distributors, LLC. 21Shares US LLC and ARK Investment Management LLC are each a sub-adviser to the Funds.

Contact:
ETF Architect
(215) 330-4476 

View original content:https://www.prnewswire.com/news-releases/empowered-funds-to-liquidate-certain-etfs-302548185.html

SOURCE ETF Architect

FAQ

When will the ARK 21Shares ETFs (ARKA, ARKZ, ARKD) stop trading?

The last trading day for all three ETFs will be September 25, 2025, with liquidation occurring around September 26, 2025.

Why is Empowered Funds liquidating its cryptocurrency ETFs?

The funds are being liquidated based on a review of the products' strategies in light of changes in the digital assets landscape.

What options do shareholders of ARKA, ARKZ, and ARKD ETFs have?

Shareholders can either sell their holdings before September 25, 2025 (with customary brokerage charges), or hold until liquidation to receive a liquidating distribution proportionate to their ownership.

What are the tax implications for ARKA, ARKZ, and ARKD shareholders?

Shareholders will generally realize a capital gain or loss equal to their shares' net asset value. The distribution may be a taxable event, and shareholders should consult tax advisors about potential tax liability.

Which cryptocurrency ETFs are being liquidated by Empowered Funds?

Three ETFs are being liquidated: the ARK 21Shares Active Bitcoin Futures Strategy ETF (ARKA), ARK 21Shares Active Ethereum Futures Strategy ETF (ARKZ), and ARK 21Shares Blockchain and Digital Economy Innovation ETF (ARKD).