VanEck Liquidates Ethereum Futures ETF Amid Spot ETF Dominance

VanEck has announced the closure and liquidation of its Ethereum Futures ETF (EFUT) due to declining investor interest and market activity. This decision follows a strategic review by the firm, which also previously liquidated its Bitcoin Futures ETF for similar reasons. 

The Board of Trustees approved the liquidation on September 5, 2024, with the final trading day for EFUT set for September 16, 2024. After this date, the ETF will be delisted, and liquidation is expected around September 23, 2024.

The shift in focus to spot Ethereum ETFs, particularly after the approval of VanEck's spot Ethereum ETP (ETHV), has significantly impacted the demand for futures products. Analysts from JPMorgan noted that the assets under management (AUM) for Ethereum ETFs are now more comparable to those of Bitcoin ETFs, which may have contributed to the decision to phase out the futures fund.

Shareholders of EFUT will have the opportunity to sell their shares until the market closes on September 16, after which they will receive cash distributions based on the net asset value of their holdings. This move reflects the broader trend in the cryptocurrency market, where spot ETFs are gaining traction over futures products.