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VanEck announces closure of Ethereum Futures ETF

VanEck announces closure of Ethereum Futures ETF

GrafaGrafa2024/09/07 08:25
By:Mahathir Bayena

On September 6, VanEck revealed plans to close and liquidate the VanEck Ethereum Strategy exchange-traded fund (EFUT).

The decision follows an assessment of key factors, including the ETF's performance and level of investor interest.

Shareholders have until September 16, 2024, to sell their shares before the fund is officially delisted.

According to the announcement, the ETF will cease operations following a resolution by the Board of Trustees of the VanEck ETF Trust.

After the market closes on September 16, 2024, the fund will no longer be available for trading.

The final liquidation is set to occur on or around September 23, 2024, when shareholders will receive a cash payout based on the net asset value of their shares.

VanEck cited a review of performance, liquidity, and assets under management as reasons for the fund's closure.

Earlier this year, VanEck launched its spot Ethereum ETF (ETHV) on July 23, following the debut of its spot Bitcoin ETF (HODL) on January 11.

The spot Bitcoin ETF has garnered $574.32 million in total inflows and currently holds $605 million worth of Bitcoin (CRYPTO:BTC) reserves.

Meanwhile, the spot Ethereum ETF (ETHV) has attracted $63.06 million in inflows, with around $55.56 million held in Ethereum (CRYPTO:ETH) reserves.

Following the delisting of the Ethereum futures ETF, no new creation orders will be accepted.

Shareholders who still hold shares at the time of liquidation will receive a final distribution, which may include any undistributed income or capital gains.

At the time of reporting, Ethereum price was $2,271.01.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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