VanEck Liquidates Its Ethereum Futures ETF (EFUT), Promises Cash Distribution to Shareholders

The asset manager also closed its Bitcoin futures ETF earlier this year due to the approval of its Bitcoin spot ETF in January this year.

Exchange-traded fund (ETF) issuer and asset management firm VanEck has announced its decision to liquidate its Ethereum Futures ETF (EFUT). According to a recent statement, shareholders will be able to sell their shares on the fund’s listing exchange up until market close on September 16, 2024.

Following this date, the shares will be delisted from the exchange and no longer be available for trading. Investors are also notified that they may be subject to transaction fees imposed by their broker-dealers if they choose to sell their shares before this date.

Investors who continue to hold shares on the liquidation date, which is expected to be around September 23, 2024, will receive a cash distribution equivalent to the net asset value (NAV) of their shares as of the liquidation date, as stated in the notice.

This means that shareholders will get a cash amount based on the value of their holdings at the time of liquidation, which will be credited to the cash portion of their brokerage accounts.

Additionally, investors may receive a final distribution of any net income and capital gains earned by the Fund that have not been previously distributed prior to the liquidation. This could provide investors with an extra financial benefit as they wind down their investment in the ETF.

Earlier this year, the asset manager also closed its Bitcoin futures ETF following the approval of its Bitcoin spot ETF in January.

However, the announcement did not mention its recently launched spot Ethereum ETF (ETHV), which is still listed among the asset manager's offerings despite experiencing substantial outflows since starting to trade in July.

Both the Ethereum and Bitcoin spot ETF markets have seen significant outflows over the past month, further impacting the ongoing price correction observed in the two largest cryptocurrencies on the market.

According to Farside data, the Ethereum ETF market has seen outflows totaling approximately $562 million since its launch on August 19, with VanEck's ETF leading the outflows at $47 million over the same period.

This has contributed to a nearly 7% decline in ETH's price, which is currently trading at $2,240. Over the fourteen-day period, ETH is also down nearly 20%. And over the past month, accounts for 5.6% for the second largest cryptocurrency on the market.

Prominent image generated with DALL-E, price chart from TradingView.com

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