A well known asset management firm, VanEck is closing its Ethereum Futures ETF (EFUT). This marks a significant pivot in the firm’s strategy amid evolving market conditions. The firm has been operating this ETF for less than a year. This ETF has been operational for less than a year. Let’s find out why VanEck decided to shut this ETF.
VanEck introduced the Ethereum Futures ETF on 2nd October, 2023. With this, investors were offered a way to gain exposure to ETH through future contracts. However, the fund has struggled with various issues including underwhelming performance, low investor interest and liquidity issues. As a result, VanEck decided to terminate this fund. The fund will be delisted on September 16 and the firm advised the investors to sell their shares before that. Those holding shares after this date will receive cash distribution based on the asset value as of September 23.
VanEck in their recent X post shared their press release with a caption of “ Now that our spot ethereum ETP has been approved, we are closing our ETF that invested in ethereum futures.
The move to close EFUT by VanEck aligns with the broader trend in the cryptocurrency market. The asset management first including VanEck are now shifting their focus from Crypto future based ETFs to spot ETF. This change comes in response to the SEC’s approval of spot ETH ETFs that offer actual price tracking of Ether as compared to futures contracts. While EFUT only managed $21 million in assets, the new spot ETH ETF by VanEck, ETHV, has already attracted around $63 million in net inflows.
VanEck is among leading asset management firms. Its decision to terminate ETH futures ETF marks a significant shift of the market. Such firms are becoming more inclined to provide spot based products. As the crypto industry continues to evolve, investors should stay informed and consider how these changes can impact their investment strategies.
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