The Board of Trustees of VanEck ETF Trust has approved the liquidation of VanEck’s Ethereum Strategy ETF, EFUT, on September 23.
American asset management company and crypto ETF issuer VanEck has revealed plans to liquidate and shut down the trading of its Ethereum Futures Exchange-Traded Fund (ETF), EFUT.
The company’s latest decision was influenced by various factors, including the current crypto market downtrend and other factors tied to the futures ETF product. The asset manager has stated the liquidation date and arrangements to ensure that all investors receive their funds before the dissolution time.
VanEck to Liquidate EFUT
VanEck announced on Friday that its Board of Trustees has unanimously decided to close its Ether Future ETF on September 23.
The ETF issuer’s decision to close its Ether Future ETF was not made lightly. Before arriving at this decision, the company noted that it conducted a comprehensive evaluation of the product’s performance, assets under management (AUM), liquidity, investor interests, and other operational factors.
The first step towards liquidation is erasing the Fund from its listing exchange. Therefore, after the market closes on September 16, a week before the official liquidation date, VanEck will delist EFUT from its listing exchange. Additionally, on the same date, the Fund will stop accepting creation orders from Authorized Participants.
To this effect, VanEck has urged shareholders to sell their shares on the exchange before the delisting date. Since not all investors will process the transaction before then, it has been planned for those unable to do so to receive a liquidating distribution of cash equivalent to their held EFUT assets in the cash section of their brokerage accounts on or before the official liquidation date.
“For tax purposes, shareholders will generally recognize a capital gain or loss equal to the amount received for their shares over their adjusted basis in such shares,” the announcement added.
VanEck’s Spot Ethereum ETF
While VanEck will shut down its Ether Futures ETF, its spot Ethereum ETF is still active and open for trading as it is one of the U.S.-approved Ether ETFs. Notably, with the entire crypto market and Ether ETF on the red side, VanEck’s Ethereum ETF, ETHV, has not recorded any outflow.
VanEck is not just closing doors but also opening new ones. The company is the first U.S. asset manager to file for a Spot Solana ETF. While the Securities and Exchange Commission (SEC) has yet to approve or reject VanEck’s application, this move signals the company’s continued interest and investment in the cryptocurrency market.