- VanEck announced it will close and liquidate its Ethereum futures ETF (EFUT) due to significant outflows from spot Ethereum ETFs since their launch.
- The VanEck Ethereum Strategy ETF (ETHV) will cease trading on September 16, and shareholders will receive a cash distribution equal to their holdings’ net asset value around September 23.
- Other Ethereum ETFs are also facing challenges, with the top performer Grayscale’s ETHE seeing substantial outflows after converting from a closed-end fund to a spot ETF.
Investment firm VanEck announced Friday that it will close and liquidate its Ethereum futures ETF, EFUT, a decision that comes against a backdrop of significant outflows from spot Ethereum ETFs just weeks after they began trading in the United States.
Background Section
The move reflects broader challenges facing the Ethereum ETF market, which has collectively seen a cumulative net outflow of $523 million, according to data from SoSo Value. There’s been only one day of positive flows since September 15, with one day without flows and the rest showing outflows.
VanEck’s ETHV fund, ranking sixth among Ethereum ETFs, holds $56 million in net assets, accounting for 0.02% of the total Ethereum share. The fund has seen a daily change of -2.93%, mirroring the performance of other Ethereum ETFs, which have experienced negative daily changes ranging from -2.48% to -3.10%.
Details on Closure
VanEck cited factors such as performance, liquidity, assets under management, and investor interest as key considerations in the decision to close the fund, with the move marking a significant shift in VanEck’s crypto-related offerings.
As the liquidation process unfolds, VanEck asked shareholders to sell their ETHV shares on the CBOE until market close on September 16. The fund will stop accepting creation orders from authorized participants on the same date.
Other Ethereum ETFs Facing Challenges
Other Ethereum ETFs in the market are also facing challenges. The top performer, Grayscale‘s ETHE, holds $4.17 billion in net assets, commanding 1.46% of the Ethereum share. However, it has seen substantial outflows after converting from a closed-end fund to a spot ETF, as investors take their money and potentially invest in rival options.
Conclusion Paragraph
The closure of VanEck’s futures ETF highlights the broader struggles that Ethereum ETFs have faced since launching just weeks ago. With significant outflows across the industry, it seems investor appetite for these products has dampened. It remains to be seen whether Ethereum ETFs can turn around flows and gain more traction in the months ahead.
