VanEck Closes Ethereum Futures ETF Amid Struggling Market Conditions

On Friday, asset manager and exchange-traded fund (ETF) issuer VanEck announced its decision to liquidate its Ethereum Futures ETF (EFUT). According to the official press release, shareholders will have the opportunity to sell their shares on the fund’s exchange until the market close on September 16, 2024.

After that date, the shares will no longer be traded on the stock exchange and will be officially delisted. Investors are advised that if they sell their shares before that date, they may be charged transaction fees by their broker-dealers.

What VanEck’s ETF Liquidation Means for Investors

According to the notificationThose who still own shares on the liquidation date, which is expected to be around September 23, 2024, will receive a cash distribution equal to the net asset value of their shares.

This means that shareholders receive a cash amount based on the value of their investments at the time of liquidation. This amount is credited to the cash portion of their investment accounts.

In addition, shareholders may receive a final distribution of net income and capital gains earned by the Fund that have not been previously distributed prior to liquidation. This may provide investors with an additional financial benefit as they reduce their investment in the ETF.

VanEck also noted that the final tax status of all distributions made by the Fund, including the liquidating distribution, will be communicated to shareholders through the year-end tax reporting. This report will clarify any portion of the distribution that could be treated as a return of capital, which could impact the shareholder’s basis in their shares.

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

However, the announcement made no mention of the recently launched spot Ethereum ETF (ETHV), which remains on the asset manager’s list of offerings despite significant outflows since trading began in July.

VanEck Leads Spot Ethereum ETF Outflows

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

According to Farside, the Ethereum ETF market has seen total outflows of approximately $562 million since its inception on August 19, led by VanEck’s $47 million outflow during the same period. facts.

This has contributed to a nearly 7% drop in the price of ETH, which is currently trading at $2,240. Over the past fourteen days, ETH has also fallen by nearly 20%. And over the past month, it’s accounted for 5.6% for the second-largest cryptocurrency on the market.

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