Bitrabo Editorial
VanEck has decided to shut down its Ethereum Futures ETF (EFUT) as a result of challenging market conditions. Shareholders are given until September 16, 2024, to sell their shares on the listing exchange.
After the given date, the shares will no longer be traded on the exchange and will be delisted, with a caution for investors regarding potential transaction fees incurred if shares are sold before the deadline.
Impact of VanEck’s ETF Liquidation on Investors
Shareholders who retain their shares until the liquidation date, estimated to be around September 23, 2024, will receive a cash distribution matching the net asset value of their shares. This cash amount will be credited to their brokerage accounts.
Furthermore, investors may also receive a final distribution of net income and capital gains that have not been previously distributed by the Fund before the liquidation, offering an additional financial benefit as they wrap up their investment in the ETF.
VanEck has stated that the final tax status of all Fund distributions will be communicated to shareholders through year-end tax reporting. This information will clarify any portions of the distribution that could influence the shareholder’s shares basis regarding a return of capital.
Earlier this year, VanEck closed its Bitcoin futures ETF upon the approval of its Bitcoin spot ETF in January. The announcement did not address its recently launched spot Ethereum ETF (ETHV) which, despite facing significant outflows since its July launch, remains part of the asset manager’s offerings.
VanEck Leads Outflows in Spot Ethereum ETF Market
The Ethereum and Bitcoin spot ETF markets have witnessed substantial outflows in the past month, further impacting the ongoing price corrections in the cryptocurrency market. VanEck registered outflows of $47 million, contributing to the total outflows of approximately $562 million seen in the Ethereum ETF market since its inception on August 19.
These outflows have led to a nearly 7% price decline in ETH, currently trading at $2,240. Over the last fourteen days, ETH has dropped by almost 20%, accounting for a 5.6% decline over the past month, positioning it as the second largest cryptocurrency in the market.
Featured image from DALL-E, chart from TradingView.com