VanEck to Close and Liquidate Ethereum Futures ETF by September 23, 2024

VanEck, a prominent asset management firm, has announced its decision to close and liquidate its Ethereum Futures ETF (EFUT) by September 23, 2024. This move comes amid challenging market conditions and waning investor interest.

Key Takeaways

• VanEck will close and liquidate its Ethereum Futures ETF by September 23, 2024.

• Shareholders can sell their shares until September 16, 2024.

• Remaining shareholders will receive a cash distribution based on the net asset value of their shares.

• The decision follows significant outflows in both Ethereum and Bitcoin spot ETF markets.

Timeline for Liquidation

VanEck has outlined a clear timeline for the liquidation process. Shareholders will have the opportunity to sell their shares on the fund’s listing exchange until market close on September 16, 2024. After this date, the shares will no longer be traded and will be officially delisted. Those who hold shares until the liquidation date, approximately September 23, 2024, will receive a cash distribution equal to the net asset value of their shares.

Impact on Investors

Investors are advised that selling their shares before the delisting date may incur transaction fees from their broker-dealers. Those who hold onto their shares until the liquidation date will receive a cash amount based on the value of their holdings at that time. Additionally, shareholders may receive a final distribution of net income and capital gains earned by the fund that have not been previously distributed.

Market Conditions and Performance

The decision to close the Ethereum Futures ETF comes amid struggling market conditions. Both the Ethereum and Bitcoin spot ETF markets have seen significant outflows over the past month, contributing to ongoing price corrections in the two largest cryptocurrencies. VanEck’s Ethereum ETF market has seen outflows totaling approximately $562 million since its inception, with VanEck accounting for $47 million of these outflows.

Future Prospects

Earlier this year, VanEck also closed its Bitcoin Futures ETF following the approval of its Bitcoin spot ETF. Despite the closure of the Ethereum Futures ETF, VanEck’s recently launched spot Ethereum ETF (ETHV) remains on the asset manager’s list of offerings, although it has also experienced significant outflows since it began trading.

Conclusion

VanEck’s decision to close and liquidate its Ethereum Futures ETF reflects the broader challenges facing the cryptocurrency market. Investors should be aware of the upcoming deadlines and the potential financial implications of holding or selling their shares. The move underscores the volatility and uncertainty that continue to characterize the crypto investment landscape.

Sources

• Vaneck Reveals Plans to Close Ethereum Futures ETF – Finance Bitcoin News, Bitcoin.com News.

• VanEck to Close and Liquidate Ethereum Futures ETF by September 23, 2024 - "The Defiant", The Defiant.

• VanEck Shuts Down Ethereum Futures ETF Amidst Struggling Market Conditions | Bitcoinist.com, Bitcoinist.

• This Week in Coins: Ethereum and Bitcoin Keep Bleeding as Telegram Drama Continues - Decrypt, Decrypt.

• WisdomTree zieht Antrag für Ethereum-Spot-ETF bei der SEC zurück, Cointelegraph Bitcoin & Ethereum Blockchain-Nachrichten.