VanEck Will Liquidate Ethereum Futures ETF As Its Crypto Strategy Shifts

Share this article

VanEck has announced plans to close and liquidate the Ethereum Strategy ETF (EFUT), signaling a shift in the asset manager’s approach to crypto-related investment products.

The decision to close EFUT comes as VanEck continues to evaluate its ETF offerings based on factors such as performance, liquidity, assets under management and investor interest. The fund’s board of directors approved the liquidation on September 5, 2024.

EFUT shareholders have until the market close on September 16, 2024 to sell their shares on the fund’s stock exchange. After this date, the ETF will cease trading and will be delisted. Those who still own shares on the liquidation date, expected to be September 23, 2024, will receive a cash distribution equal to the net asset value of their holdings.

Continuous evaluation

VanEck emphasized that the move is part of its ongoing evaluation of its product lineup, rather than an exit from the cryptocurrency space. The firm has a history of identifying emerging investment trends, including being one of the earliest to offer gold investments in 1968 and exposure to emerging markets in 1993.

“As a sponsor of the VanEck ETFs, VanEck continuously monitors and evaluates its ETF offerings based on a number of factors,” the company said in its announcement.

As such, the decision appears to be a strategic realignment rather than a retreat from digital asset-related products. VanEck adds that the decision was based on “an analysis of these factors and other operational considerations,” although specific tangents to them were not discussed in detail. For context, VanEck is also one of the asset managers who predicted Ethereum prices to rise, with a broader forecast of $154,000 by 2030.

The long-term viability of Ethereum

The closure of EFUT shows the challenges and changes, especially with crypto-based investment vehicles. While Ethereum futures have provided a regulated way to gain exposure to the second-largest cryptocurrency by market capitalization, the product may not have attracted enough investor interest or assets to remain viable in VanEck’s lineup.

Notably, VanEck continues to offer other crypto-related products, including its Digital Assets Mining ETF (DAM) and its Bitcoin Strategy ETF (XBTF). The firm also has a pending application for a spot Solana ETF, demonstrating its continued commitment to digital asset investment opportunities. Asset managers like VanEck will continue to refine their product offerings to best serve investor demand while navigating the unique risks and opportunities presented by digital assets.

This story is developing and will be updated as more details emerge. Crypto Briefing has reached out to VanEck for comment.

Share this article