VanEck pivots to launch Ethereum ETF, discontinues EFUT futures fund
Asset management company VanEck has revealed its intentions to shut down and liquidate its Ethereum futures exchange-traded fund (ETF) EFUT, as per a statement released on September 6. The decision was influenced by factors such as performance, liquidity, assets under management (AUM), and investor interest. VanEck also highlighted the recent approval of its spot Ethereum ETP, ETHV, by the US Securities and Exchange Commission (SEC) as a pivotal reason for closing EFUT.
Shareholders of EFUT have until the market closes on September 16, 2024, to sell their shares on the fund’s listing exchange before it gets delisted and trading halts. Those who retain EFUT shares until the anticipated 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, EFUT is currently listed on the CBOE exchange with $21.24 million in net assets and an NAV of $20.23 as of September 5.
In a related development, JPMorgan analysts observed that the assets under management (AUM) of spot Ethereum ETFs, relative to the token’s market cap, are similar to Bitcoin’s ETFs at a comparable post-launch stage. The combined AUM of Ethereum ETFs, including Grayscale’s ETHE, represented about 2.3% of Ethereum’s total market cap within the first 29 days of trading. In contrast, Bitcoin ETFs, including Grayscale’s GBTC, accounted for 3.0% of Bitcoin’s market cap during the same period.
The analysts suggested that when scaling AUM against the underlying market cap, the performance disparity between Ethereum and Bitcoin ETFs is less pronounced than it seems. However, some market experts disagree, citing over $500 million in negative outflows from US-traded spot Ethereum ETFs since their launch, in contrast to the record inflows witnessed in early Bitcoin ETF trading.
