The Ethereum roof leaks in the rain at night VanEck's plan to close and liquidate its Ethereum futures ETF (EFUT) reflects several key points: 1. Insufficient market demand: VanEck's decision is based on various considerations, including the fund's performance, liquidity, AUM, and investor interest. The low trading volume and investor participation of the ETF may be one of the main reasons for the liquidation. 2. Disproportionate operating costs and returns: For ETF management companies, the operating costs of maintaining low-demand products may be higher than the returns, especially for high-volatility products like cryptocurrency futures. If the fund lacks sufficient liquidity or underperforms in the market, continuing to operate may not be economically viable. 3. Intense market competition: The cryptocurrency market has expanded rapidly in the past few years, with the emergence of many similar products (including Bitcoin and Ethereum futures ETFs). VanEck's move may be to optimize its product line and focus resources on better-performing funds or innovative products. Potential impacts: 1. Short-term market volatility: The fund liquidation may result in some short-term market selling pressure. The process of liquidating the ETF may involve selling the futures contracts held by the ETF, increasing the market's selling volume of ETH and causing a short-term price decline. 2. Impact on market confidence: Since ETF liquidation is often seen as a signal of insufficient market demand or liquidity, some investors may lose confidence in the Ethereum market. This could lead to some investors withdrawing their funds, further exacerbating the price decline. 3. Minimal long-term impact: While the ETF liquidation may have a certain short-term impact on the market, Ethereum as a globally widely used blockchain platform, its price is more driven by the long-term fundamentals of technological development, DeFi, and the Non-Fungible Token ecosystem. Therefore, the liquidation of the VanEck ETF may not have a significant impact on the long-term price of ETH, especially as DeFi and other applications continue to develop.