ARK ETF TR Stock Price, News & Analysis

ARK DIET Q1 Buffer ETF (ARKD) is referenced in available information as the ARK 21Shares Blockchain and Digital Economy Innovation ETF, one of several exchange-traded funds for which Empowered Funds, LLC serves as the investment adviser. According to a public announcement from Empowered Funds, this fund is among a group of ETFs scheduled for liquidation following a review of their strategies in light of changes in the digital assets landscape.

The announcement identifies ARKD alongside other funds that focus on digital asset-related strategies, such as bitcoin and ethereum futures. The decision to liquidate these funds is described as a response to developments in the broader digital assets environment and the assessment of the products' strategies under those conditions.

Empowered Funds explains that shareholders of the affected funds, including ARKD, are able to sell their holdings on the exchange up to the last trading day specified in the announcement. After that date, the fund is expected to proceed to a liquidation date, on or around which remaining shareholders receive a liquidating distribution based on their proportionate ownership interest in the fund.

The communication notes that shareholders who receive liquidation proceeds may realize a capital gain or loss, depending on the net asset value of their shares at liquidation and their individual tax circumstances. It also emphasizes that investments in the affected funds involve risk, including the possibility of principal loss and significant volatility associated with digital asset-related investments and derivatives.

The announcement further states that the funds, including ARKD, do not invest directly in bitcoin, ether, or other digital assets, and do not maintain direct exposure to spot bitcoin or ether. Instead, the risks described relate to the use of derivatives such as futures, and to the nature of digital asset-related markets more generally.

According to the same disclosure, the funds are newly organized, non-diversified management investment companies with no operating history at the time of the announcement. There is no assurance given in the text that such funds will grow to or maintain an economically viable size or that an active trading market for their shares will develop or be maintained.

The fund complex associated with ARKD involves multiple parties: Empowered Funds, LLC acts as investment adviser, while 21Shares US LLC and ARK Investment Management LLC are each described as sub-advisers to the funds named in the announcement. The funds are distributed by Quasar Distributors, LLC, as stated in the same communication.

Because the available information centers on the liquidation process and risk disclosures, detailed information about ARKD's specific investment strategy, portfolio composition, or historical operations beyond its association with blockchain and digital economy innovation is not provided in the sources cited.