VanEck shifts focus to spot Ethereum ETF, phases out futures fund EFUT

VanEck shifts focus to spot Ethereum ETF, phases out futures fund EFUT

Sep 06,2024

Asset management firm VanEck announced plans to close and liquidate its Ethereum futures exchange-traded fund (ETF) EFUT, according to a Sept. 6 statement .

VanEck cited performance, liquidity, assets under management (AUM), and investor interest as factors behind its decision. The firm also noted the recent approval of its spot Ethereum ETP, ETHV , by the US Securities and Exchange Commission (SEC) as a key reason for shutting down EFUT.

EFUT shareholders have until the market closes on Sept. 16, 2024, to sell their shares on the fund’s listing exchange. Afterward, the ETF will be delisted, and trade will cease.

Meanwhile, Shareholders still holding EFUT shares by the expected liquidation date of Sept. 23, 2024, will receive a cash distribution based on their holdings’ net asset value (NAV).

EFUT, which launched on Oct. 2, 2023, is listed on the CBOE exchange. As of Sept. 5, the fund held $21.24 million in net assets, with an NAV of $20.23.

Unfair comparison

VanEck’s decision to shutter its Ethereum futures ETF comes as JPMorgan analysts noted that spot Ethereum ETFs’ AUM as a percentage of the token’s market cap are comparable to Bitcoin’s ETFs at a similar post-launch stage.

The analysts highlighted that the combined AUM of Ethereum ETFs, including Grayscale’s ETHE , accounted for roughly 2.3% of Ethereum’s total market cap by the end of their first 29 days of trading. In comparison, the total AUM of Bitcoin ETFs, including Grayscale’s GBTC , represented 3.0% of Bitcoin’s market cap during the same period.

By scaling AUM against the underlying market cap, the analysts stated that the performance gap between Ethereum and Bitcoin ETFs is less significant than it appears.

This analysis suggests that the launch of spot Ether ETFs has mainly been in line with that of Bitcoin ETFs. However, some market analysts argue otherwise, citing the over $500 million in negative outflows from US-traded spot Ethereum ETFs since their launch, unlike the record inflows seen in early Bitcoin ETFs trading.