VanEyck Closes Ethereum Futures ETF as Spot Fund Struggle

Investment firm VanEck announced on Friday its decision to close and liquidate its Ethereum Futures ETF (EFUT), just weeks after it began trading in the United States.

The move reflects broader challenges facing the Ethereum ETF market, which saw a total net inflow of $562.3 million, according to data from Soso Value. There is only one day of positive flows from September 15, one day without flow and the rest showing flow.

The VanEck Ethereum Strategy ETF, trading on the CBOE under the ticker ETHV, will cease trading on September 16, the company said. announced.

Shareholders who hold their shares until the auction date, which is expected to be around September 23, will receive a cash distribution equal to the net asset value of their holdings.

According to SoSoValue data, On September 5, the total net assets of Ethereum-based ETFs in the US market stood at $6.49 billion, representing 2.28% of Ethereum's market value.

VanEck's ETHV fund ranks sixth among Ethereum ETFs, with net assets of $55.56 million, which is 0.02% of the total Ethereum holdings. The fund saw a daily change of -2.93%, mirroring the performance of other Ethereum ETFs that experienced negative daily changes ranging from -2.48% to -3.10%.

The firm cited factors such as performance, liquidity, assets under management and investor interest in the decision to close the fund. A significant change in VanEck's crypto-related offerings.

Other Ethereum ETFs in the market are also facing challenges. The high-performing Grayscale ETHE holds $4.17 billion in net assets, commanding 1.46% of Ethereum's share. However, it has seen significant inflows since the switch from closed-end funds to spot ETFs as investors withdraw their funds and invest in rival options.

As the liquidation progressed, VanEyck urged shareholders to sell their ETHV shares on the CBOE before the market closes on September 16. The fund will stop accepting creation orders from authorized participants on the same day.