Investment fund and exchange-traded fund (ETF) issuer VanEck announced Friday that it has decided to liquidate its Ethereum Futures ETF (EFUT). According to the official announcement, shareholders will have the option to sell their shares on the fund’s listed exchange until the market close on September 16, 2024.
After this date, the shares will no longer be traded on the exchange and will be officially delisted. Investors are advised that if they sell their shares before this date, they may incur transaction fees from their brokers.
What VanEck’s ETF Liquidation Means for Investors
According to the noticeThose who continue to hold shares on the liquidation date, which is expected to be approximately September 23, 2024, will receive a cash distribution equal to the net asset value of their shares.
This means that shareholders will receive a cash amount based on the value of their holdings at the time of liquidation, which will be credited to the cash portion of their brokerage accounts.
In addition, shareholders may receive a final distribution of net income and capital gains realized by the Fund that were not previously distributed prior to liquidation. This could provide investors with an additional benefit. financial advantage as they reduce their investment in the ETF.
VanEck also indicated that the final tax status of all distributions made by the Fund, including the liquidating distribution, will be communicated to shareholders through the year-end tax report. This report will clarify any portion of the distribution that may be treated as a return of capital, which could affect the shareholder’s basis in his or her shares.
Earlier this year, the asset manager also closed its Bitcoin portfolio Futures ETF due to the approval of its Bitcoin spot ETF in January this year.
However, the announcement makes no mention of its recently launched Ethereum spot ETF (ETHV), which remains on the asset manager’s list of offerings despite significant outflows after starting trading in July.
VanEck Leads Spot Ethereum ETF Outflows
Ethereum and Bitcoin Spot ETF Markets have seen significant outflows over the past month, further impacting the current price correction seen in the prices of the two largest cryptocurrencies in the market.
The Ethereum ETF market has seen outflows totaling about $562 million since its inception on August 19, led by VanEck outflows of $47 million over the same period, according to Farside data.
This has contributed to a nearly 7% drop in the price of ETH, which is currently trading at $2,240. Over the fourteen-day period, ETH has also fallen by nearly 20%. And over the past month, it represents 5.6% for the second-largest cryptocurrency on the market.
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