Asset management firm VanEck has announced the closure and liquidation of its Ethereum futures exchange-traded fund (ETF) EFUT, as stated in a press release on Sept. 6. This decision by VanEck is influenced by factors such as performance, liquidity, assets under management (AUM), and investor interest. The recent approval of its spot Ethereum ETP, ETHV, by the US Securities and Exchange Commission (SEC), was also a contributing factor to shutting down EFUT.
Shareholders of EFUT have until the market closes on Sept. 16, 2024, to sell their shares on the fund’s listing exchange. After this date, the ETF will be delisted and trading will cease. Shareholders who still hold EFUT shares by the expected liquidation date of Sept. 23, 2024, will receive a cash distribution based on the net asset value (NAV) of their holdings.
EFUT, which was launched on Oct. 2, 2023, is listed on the CBOE exchange with $21.24 million in net assets as of Sept. 5, and an NAV of $20.23.
Unfair Comparison
VanEck’s decision to close its Ethereum futures ETF coincides with JPMorgan analysts noting the comparable AUM of spot Ethereum ETFs to Bitcoin ETFs at a similar post-launch stage. The combined AUM of Ethereum ETFs, including Grayscale’s ETHE, represented about 2.3% of Ethereum’s market cap by the end of the first 29 days of trading. In contrast, Bitcoin ETFs, like Grayscale’s GBTC, accounted for 3.0% of Bitcoin’s market cap during the same period.
The analysis indicates that the performance gap between Ethereum and Bitcoin ETFs is not as significant when considering AUM relative to market cap. However, some market analysts suggest otherwise, pointing to over $500 million in negative outflows from US-traded spot Ethereum ETFs, in contrast to the record inflows observed in early Bitcoin ETF trading.
