Asset administration agency VanEck introduced plans to shut and liquidate its Ethereum futures exchange-traded fund (ETF) EFUT, in response to a Sept. 6 assertion.
VanEck cited efficiency, liquidity, belongings beneath administration (AUM), and investor curiosity as components behind its determination. The agency additionally famous the latest approval of its spot Ethereum ETP, ETHV, by the US Securities and Alternate Fee (SEC) as a key purpose for shutting down EFUT.
EFUT shareholders have till the market closes on Sept. 16, 2024, to promote their shares on the fund’s itemizing alternate. Afterward, the ETF will likely be delisted, and commerce will stop.
In the meantime, Shareholders nonetheless holding EFUT shares by the anticipated liquidation date of Sept. 23, 2024, will obtain a money distribution primarily based on their holdings’ web asset worth (NAV).
EFUT, which launched on Oct. 2, 2023, is listed on the CBOE alternate. As of Sept. 5, the fund held $21.24 million in web belongings, with an NAV of $20.23.
Unfair comparability
VanEck’s determination to shutter its Ethereum futures ETF comes as JPMorgan analysts famous that spot Ethereum ETFs’ AUM as a share of the token’s market cap are corresponding to Bitcoin’s ETFs at an identical post-launch stage.
The analysts highlighted that the mixed AUM of Ethereum ETFs, together with Grayscale’s ETHE, accounted for roughly 2.3% of Ethereum’s complete market cap by the tip of their first 29 days of buying and selling. Compared, the overall AUM of Bitcoin ETFs, together with Grayscale’s GBTC, represented 3.0% of Bitcoin’s market cap throughout the identical interval.
By scaling AUM towards the underlying market cap, the analysts acknowledged that the efficiency hole between Ethereum and Bitcoin ETFs is much less vital than it seems.
This evaluation means that the launch of spot Ether ETFs has primarily been consistent with that of Bitcoin ETFs. Nonetheless, some market analysts argue in any other case, citing the over $500 million in detrimental outflows from US-traded spot Ethereum ETFs since their launch, in contrast to the document inflows seen in early Bitcoin ETFs buying and selling.
