VanEck Shuts Down Ether ETF Futures

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Asset management firm VanEck is shutting down its Ether Futures Contract based ETF, citing a lack of demand as spot cryptocurrency ETFs dominate inflows, according to a September 6 announcement.

VanEck decided to close the fund due to a number of factors “including performance, liquidation, Assets Under Management and investor interest,” the firm said. said .

According to the announcement, shares of the VanEck Ethereum Strategy ETF (EFUT) will cease trading on September 16 and the fund’s assets will be liquidated and returned to investors on or around September 23.

The decision “is not a surprise,” Nate Geraci, president of The ETF Store — an investment advisor — said in a post on X. By 2023, Geraci predicts that spot crypto ETFs “would essentially make all of these Futures Contract -based crypto ETFs obsolete.”

“I guess VanEck XEM EFUT primarily as a marketing expense,” Geraci added.

Top ETFs launching in 2024. Source: The ETF Store.

Launched in 2023, EFUT had just shy of $21 million in Assets Under Management (AUM) as of September 6, according to VanEck's website. The VanEck Ethereum ETF (ETHV) — the Ether spot ETF that VanEck launched in June — has over $55 million in AUM.

The U.S. Securities and Exchange Commission allowed spot Ether ETFs to begin trading in the United States in July. According to data from fund research firm Morningstar, spot Ether ETFs now hold a total of about $6.5 billion in AUM, compared to less than $170 million for Futures Contract based Ether ETFs.

Fund issuers launched nine spot Ether ETFs in July. The largest — Grayscale Ethereum Trust (ETHE) — manages nearly $4.2 billion, according to Morningstar.

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