Investment management company VanEck has announced its decision to liquidate and close Ethereum ETF Futures (EFUT) due to declining interest and performance issues.
Reasons for ETF Closure
VanEck made the decision to liquidate and close Ethereum ETF Futures after a thorough evaluation of its product line. The main reasons for this decision include declining market interest and performance issues.
Information for Shareholders
Shareholders will be able to sell their EFUT shares on the CBOE market until September 16, 2024. After this date, the ETF will be delisted, and trading will cease. However, on September 23, 2024, all shareholders who still own shares will receive a liquidation payout based on their net asset value.
Market Trends
This decision highlights broader concerns about market sentiment towards Ethereum futures. Reduced interest and trading activity have negatively impacted the Ether ETF's performance. Additionally, following the approval of its US Spot Ethereum ETF, VanEck aims to streamline its strategic portfolio, which influenced this decision.
The closure of Ethereum ETF Futures reflects current market conditions and VanEck's shift towards more promising spot markets. This decision follows a similar move to wind down its Bitcoin Futures ETF, emphasizing the company's focus on spot market products.
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