Key points
- The VanEck EFUT ETF will cease trading on September 16, 2024 and will settle on September 23.
- Shareholders will receive cash equivalent to the net asset value of their EFUT shares.
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VanEck has Plans announced close and liquidate its ethereum Strategy ETF (EFUT), signaling a shift in the asset manager’s focus toward cryptocurrency-related investment products.
The decision to close EFUT comes as VanEck continues to evaluate its ETF offerings based on factors including performance, liquidity, assets under management and investor interest. The fund’s Board of Directors approved the liquidation on September 5, 2024.
EFUT shareholders have until the close of the market on September 16, 2024 to sell their shares on the fund's stock exchange. After this date, the ETF will cease trading and will no longer be listed on the stock exchange. Those who still own shares on the settlement date, scheduled for September 23, 2024, will receive a cash distribution equal to the net asset value of their holdings.
Continuous assessment
VanEck stressed that this move is part of its ongoing evaluation of its product line and not an exit from the cryptocurrency space. The firm has a history of identifying emerging investment trends, including being one of the first to offer gold investments in 1968 and exposure to emerging markets in 1993.
“As a sponsor of VanEck ETFs, VanEck continually monitors and evaluates its ETF offerings based on a number of factors,” the firm said in its announcement.
As such, the decision appears to be a strategic realignment rather than a pullback in digital asset-related products. VanEck adds that the decision was based on “an analysis of these factors and other operational considerations,” though the specific tangents of these were not discussed in detail. To put this into context, VanEck is also one of the asset managers that have predicted ethereum price gains, with a broader forecast of $154,000 by 2030.