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VanEck today announced its decision to close and liquidate its CBOE-listed ethereum Strategy ETF.
The ethereum (eth) ETF (ticker 'EFUT') will cease trading after the market closes on Sept. 16, according to VanEck Press releaseand settlement is expected to take place around September 23.
Shareholders who still hold EFUT shares on the settlement date will receive a cash distribution based on the net asset value of their holdings.
The decision was made following VanEck's periodic evaluation of factors such as “performance, liquidity, assets under management and investor interest, among others.” According to the statement, these criteria and other operational considerations led to the closure of the fund.
VanEck's recent moves on eth
VanEck's decision comes after x.com/vaneck_us/status/1832055918839607337″ target=”_blank”>approval of a spot ethereum exchange-traded product, which may have influenced the decision to discontinue the futures-based ETF.
An ETP directly exposes an asset by holding it or its equivalent, such as spot bitcoin (btc) or ethereum. A futures ETF tracks the price of futures contracts and provides indirect exposure to future price movements of an asset.
Investors may also receive a final distribution of any remaining net income or capital gains prior to the fund's dissolution. For tax purposes, the firm will provide a final report at the end of the year detailing any capital gains or losses associated with the liquidation, according to the press release.
In January, VanEck announced the liquidation of its bitcoin Strategy ETF, citing poor performance, liquidity and low investor interest. The ETF, which primarily invested in bitcoin futures, was set to cease trading after January 30.
