Asset management firm VanEck has announced plans to close and liquidate its Ethereum futures exchange-traded fund (ETF) EFUT, according to a September 6 statement.
VanEck cited performance, liquidity, assets under management (AUM), and investor interest as factors behind its decision. The company also pointed to the recent approval of its spot Ethereum ETP, ETHV, by the U.S. Securities and Exchange Commission (SEC) as a key reason for closing EFUT.
EFUT shareholders have until the market close on September 16, 2024 to sell their shares on the fund’s listing exchange. After that date, the ETF will be delisted and trading will cease.
In the meantime, shareholders still holding EFUT shares as of the scheduled liquidation date of September 23, 2024 will receive a cash distribution based on the net asset value (NAV) of their holdings.
Launched on October 2, 2023, the EFUT fund is listed on the CBOE exchange. As of September 5, the fund held $21.24 million in net assets, with a net asset value of $20.23.
Unfair comparison
VanEck’s decision to shut down its Ethereum futures ETF comes as JPMorgan analysts noted that the AUM of spot Ethereum ETFs as a percentage of the token’s market cap is comparable to Bitcoin ETFs at a similar post-launch stage.
Analysts noted that the combined AUM of Ethereum ETFs, including Grayscale’s ETHE, represented approximately 2.3% of Ethereum’s total market cap at the end of their first 29 days of trading. In comparison, the total AUM of Bitcoin ETFs, including Grayscale’s GBTC, represented 3.0% of Bitcoin’s market cap during the same period.
Comparing AUM to underlying market capitalization, analysts said the performance gap between Ethereum and Bitcoin ETFs is less than it appears.
This analysis suggests that the launch of spot Ether ETFs has been mostly in line with that of Bitcoin ETFs. However, some market analysts argue otherwise, citing negative outflows of over $500 million from U.S.-traded spot Ethereum ETFs since their launch, in contrast to the record inflows seen in early Bitcoin ETF trading.
