#USA #ETFs #Digital Assets #Empowered Funds #Newtown Square, Pennsylvania

Empowered Funds to Liquidate Specific ETFs

In a significant move, Empowered Funds, LLC has announced the forthcoming liquidation of several ETFs, as per the statement released on September 8, 2025. The decision has been prompted by a comprehensive evaluation of the funds' strategies amid evolving dynamics within the digital assets sector.

The affected ETFs are as follows:

• - 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)

These funds are scheduled for liquidation, highlighting the growing readiness among investment firms to reassess product relevance in light of recent trends in digital currencies such as Bitcoin and Ethereum.

Investors holding shares in these funds can sell their holdings before the close of trading on Thursday, September 25, 2025. It’s crucial for shareholders to act before this deadline since the last trading day for all mentioned funds is also set for September 25, 2025. The liquidation date is anticipated to occur around September 26, 2025.

Following the liquidation, shareholders who still possess shares on this date will receive a distribution commensurate with their ownership stake in the respective fund. This distribution will typically be reflective of the net asset value (NAV) of their shares at that time, potentially resulting in realized capital gains or losses. It is vital for shareholders to understand that such distributions may lead to taxable events depending on their unique circumstances. Therefore, consultation with tax advisors is recommended to grasp the possible tax implications arising from the liquidation distributions.

Nuances and Considerations

Investors interested in these products should exercise due diligence and analyze the investment objectives, associated risks, and the fees involved. According to the statement, both Bitcoin and Ethereum, as well as their derivatives, present unique risks that can lead to substantial volatility compared to traditional assets. The potential for principal loss remains a possibility, with the value of investments potentially diminishing sharply.

Each fund under consideration is newly organized and lacks an extensive operational history, which means there's an inherent uncertainty relating to their growth sustainability in the competitive financial marketplace. Investors are cautioned that these funds do not invest directly in digital currencies but rather through derivatives, which could pose different risks than conventional security investments.

With innovation and changes in the digital assets investment landscape being constant, the decision by Empowered Funds to liquidate these ETFs serves as a poignant reminder for investors to remain vigilant about their asset management strategies. The evolving nature and regulatory factors surrounding cryptocurrencies necessitate ongoing scrutiny for investors navigating this complex environment.

For more information about the funds, potential investors can reach out via telephone at 215-330-4476 or visit their website at www.21Shares-funds.com. Understanding the full scope of implications related to these changes will be crucial for investors as they make decisions on managing their portfolios in this fast-evolving sector.

Conclusion

As the digital assets market continues to expand and evolve, the liquidation of these ETFs by Empowered Funds highlights the need for both firm strategies and investor awareness regarding market shifts. With potential liability impacting fund shareholders, prudent decision-making is paramount.

Stay informed and consult professionals as you navigate the intricacies of ETF investments and the broader digital asset market.