VanEck Shuts Down Its Ethereum Futures ETF (EFUT) Amid Market Evolution
- PHPzOriginal
- 2024-09-07 18:11:13694browse
A well known asset management firm, VanEck is closing its Ethereum Futures ETF (EFUT). This marks a significant pivot in the firm's strategy
Asset management firm VanEck is shutting its Ethereum Futures ETF (EFUT), a move that comes as the firm adjusts its strategy in response to changing market conditions.
EFUT, which launched in October 2023, provided investors with a way to gain exposure to ETH through futures contracts. However, the fund has faced several challenges, including underwhelming performance, low investor interest and liquidity issues.
In a statement, VanEck said it has decided to terminate the fund due to these challenges. The ETF will be delisted on 16th September and the firm has advised investors to sell their shares before that date.
Those holding shares after this date will receive a cash distribution based on the asset value as of 23rd September.
VanEck recently shared their press release on X post, with a caption that reads: “Now that our spot ethereum ETP has been approved, we are closing our ETF that invested in ethereum futures.”
The move to close EFUT is also part of a broader trend in the cryptocurrency market, where asset management first including VanEck are shifting their focus from crypto future based ETFs to spot ETF.
This comes as the SEC has approved spot ETH ETFs, which offer a way to track the actual price of Ether as compared to futures contracts, which are derivatives that bet on the future price of an asset.
While EFUT had only managed to gather $21 million in assets, VanEck's new spot ETH ETF, ETHV, has already attracted around $63 million in net inflows.
Asset management firm VanEck is shutting its Ethereum Futures ETF (EFUT), a move that comes as the firm adjusts its strategy in response to changing market conditions.
EFUT, which launched in October 2023, provided investors with a way to gain exposure to ETH through futures contracts. However, the fund has faced several challenges, including underwhelming performance, low investor interest and liquidity issues.
In a statement, VanEck said it has decided to terminate the fund due to these challenges. The ETF will be delisted on 16th September and the firm has advised investors to sell their shares before that date.
Those holding shares after this date will receive a cash distribution based on the asset value as of 23rd September.
VanEck recently shared their press release on X post, with a caption that reads: “Now that our spot ethereum ETP has been approved, we are closing our ETF that invested in ethereum futures.”
The move to close EFUT is also part of a broader trend in the cryptocurrency market, where asset management first including VanEck are shifting their focus from crypto future based ETFs to spot ETF.
This comes as the SEC has approved spot ETH ETFs, which offer a way to track the actual price of Ether as compared to futures contracts, which are derivatives that bet on the future price of an asset.
While EFUT had only managed to gather $21 million in assets, VanEck's new spot ETH ETF, ETHV, has already attracted around $63 million in net inflows.
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