VanEck to close Ethereum futures ETF by late September

VanEck announced today its decision to close and liquidate its CBOE-listed Ethereum Strategy ETF.

According to VanEck’s press release, the Ethereum (ETH) ETF fund (symbol ‘EFUT’) will cease trading after the market closes on September 16, with liquidation expected to occur around September 23.

Shareholders who continue to hold EFUT shares on the liquidation date will be paid cash according to the net asset value of their shares.

The decision came after VanEck conducted regular evaluations of factors such as “performance, liquidity, assets under management and investor interest.” Those criteria and other operational issues led to the fund’s closure, according to the statement.

VanEck’s latest ETH moves

VanEck’s move comes after the approval of its spot Ethereum exchange-traded product, which may have influenced the decision to halt the futures-based ETF.

An ETP provides direct exposure to an asset or its equivalent by holding spot Bitcoin (BTC) or Ethereum. A futures ETF offers indirect exposure to the future price movements of an asset by tracking the price of futures contracts.

Investors may also receive a final distribution of any remaining net income or capital gains prior to the fund’s termination. For tax purposes, the company will file 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 due to poor performance, liquidity, and low investor interest. The ETF, which primarily invests in Bitcoin futures, was set to be delisted after Jan. 30.