Asset administration agency VanEck introduced plans to close down and liquidate its Ethereum futures exchange-traded fund (EFUT) in an announcement on Sept. 6.
VanEck cited efficiency, liquidity, belongings below administration (AUM) and investor curiosity as elements in its resolution. The agency additionally cited the latest approval of the Ethereum ETP (ETHV) by the U.S. Securities and Trade Fee (SEC) as a key cause for closing EFUT.
EFUT shareholders could have the choice to promote their shares on the fund's listed change till the market closes on September 16, 2024, after which the ETF shall be delisted and buying and selling shall be suspended.
In the meantime, shareholders who maintain EFUT shares by way of the scheduled liquidation date of September 23, 2024 will obtain money dividends based mostly on the web asset worth (NAV) of their shares.
EFUT, which launched on Oct. 2, 2023, is listed on the CBOE change. As of Sept. 5, the fund had web belongings of $21.24 million and an NAV of $20.23.
Unfair comparability
VanEck’s resolution to close down its Ethereum futures ETF comes after JPMorgan analysts famous that the Ethereum spot ETF’s belongings below administration, as a share of the token’s market capitalization, are akin to a Bitcoin ETF at an analogous post-launch stage.
The analysts highlighted that the entire belongings below administration of Ethereum ETFs, together with Grayscale's ETHE, accounted for about 2.3% of Ethereum's whole market cap by the top of the primary 29 buying and selling days. By comparability, the entire belongings below administration of Bitcoin ETFs, together with Grayscale's GBTC, accounted for 3.0% of Bitcoin's market cap throughout the identical interval.
Analysts stated that by scaling belongings below administration to the underlying market capitalization, the efficiency hole between Ethereum and Bitcoin ETFs just isn’t as giant as it could appear.
This evaluation means that the launch of the spot Ethereum ETF is primarily in tandem with the launch of the Bitcoin ETF, however some market analysts argue in another way, citing that in contrast to the file inflows in early Bitcoin ETF buying and selling, there have been over $500 million outflows from the U.S.-traded spot Ethereum ETF since its launch.
