VanEck to Liquidate Ethereum Futures ETF, Focuses on Spot Ether Fund
- VanEck will close and liquidate its Ethereum futures ETF, EFUT, by September 16, 2024.
- The decision is influenced by EFUT’s performance, liquidity, and low investor interest.
- VanEck’s spot Ethereum ETP, ETHV, recently received SEC approval, prompting the shift.
- EFUT launched on October 2, 2023, with $21.24 million in net assets as of September 5, 2024.
JPMorgan analysts noted that the performance gap between Ethereum and Bitcoin ETFs is less significant when accounting for market cap percentages. Ethereum ETFs, including Grayscale’s ETHE, represented 2.3% of Ethereum’s market cap within the first 29 days, compared to Bitcoin ETFs’ 3.0% of Bitcoin’s market cap.
This strategic pivot by VanEck underscores the growing investor preference for spot Ethereum ETFs over futures products, aligning with broader market trends. The closure of EFUT signifies a shift towards more favorable investment vehicles, potentially setting a precedent for future ETF strategies in the crypto space.
