VanEck to close Ethereum futures ETF by late September

VanEck announced today its decision to close and liquidate its Ethereum Strategy ETF, which is listed on the CBOE. 

The Ethereum (ETH) ETF fund (ticker symbol ‘EFUT’) will cease trading after the market closes on Sept. 16, according to a VanEck press release, with liquidation expected around Sept. 23.

Shareholders who still hold EFUT shares on the liquidation date will receive a cash distribution based on the net asset value of their holdings.

The decision follows VanEck’s regular evaluation of factors such as “performance, liquidity, assets under management, and investor interest, among others.” According to the release, these criteria and other operational considerations led to the fund’s closure. 

VanEck’s recent ETH moves

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

An ETP directly exposes an asset by holding it or its equivalent, like spot Bitcoin (BTC) or Ethereum. A futures ETF tracks the price of futures contracts, offering indirect exposure to an asset’s future price movements.

Investors may also receive a final distribution of any remaining net income or capital gains before the fund’s dissolution. For tax purposes, the company will provide a final report at year-end detailing any capital gains or losses associated with the liquidation, per the press release.

In January, VanEck announced the liquidation of its Bitcoin Strategy ETF, citing performance, liquidity, and low investor interest. The ETF, which primarily invested in Bitcoin futures, was set to be delisted after January 30.