Investment management firm VanEck is set to close and liquidate its Ethereum futures ETF.
The decision is related to the approval of VanEck’s spot Ethereum ETF, ETHV, the company said on social media platform X.
The VanEck Ethereum Strategy ETF (EFUT) invests in Ether futures contracts, not the digital asset itself. Listed on the CBOE Exchange, EFUT had total net assets of $21.24 million and a NAV of $20.23 as of September 5, according to the fund’s website. EFUT launched on October 2, 2023.
EFUT shareholders must sell their shares by the close of trading on September 16, the company statement continued. After that time, EFUT shares will be delisted. Those who still hold EFUT shares will liquidate their shares for cash equivalent to the value of their shares on September 23.
“VanEck continually monitors and evaluates ETF products across a number of factors, including performance, liquidity, assets under management, and investor interest,” the company said in a news release Friday. “Based on our analysis of these factors and other operational considerations, we have made the decision to liquidate the fund.”
The SEC approved VanEck’s spot Ethereum ETF ETHV and seven other spot ETH funds in May of this year. ETHV holds 1.97% of the total spot ETH ETF market share, with daily volume reaching $2.11 million on September 5, according to The Block’s Data Dashboard.
The Block reached out to VanEck’s media representative for comment.
Disclaimer: The Block is an independent media outlet providing news, research and data. As of November 2023, Foresight Ventures is the largest investor in The Block. Foresight Ventures invests in other companies in the cryptocurrency space. Cryptocurrency exchange Bitget is an anchor LP of Foresight Ventures. The Block continues to operate independently to provide objective, impactful and timely information on the cryptocurrency industry. Below are the current financial disclosures.
© 2024 The Block. All rights reserved. This article is provided for informational purposes only. It is not provided or intended to be legal, tax, investment, financial or other advice.
About the Author
MK Manoylov has been a reporter for The Block since 2020, joining just before Bitcoin first broke $20,000. Since then, MK has written nearly 1,000 articles for the publication, covering all aspects of crypto news but with a penchant for NFTs, metaverse, web3 games, fundraising, crime, hacking, and crypto ecosystem stories. MK holds a graduate degree from the Science, Health, and Environment Reporting Program (SHERP) at New York University and has also covered health topics for WebMD and Insider. You can follow MK on X @MManoylov and on LinkedIn.