VanEck to close and liquidate Ethereum Futures ETF by September 16
Investment manager VanEck announced today that it will close and liquidate its exchange-traded Fund (ETF) for Ethereum futures (EFUT).
Now that our spot ethereum ETP has been approved, we are closing our ETF that invested in ethereum futures. https://t.co/xYfK6StoWS
— VanEck (@vaneck_us) September 6, 2024
ETF) was approved for liquidation and dissolution by the VanEck ETF Trust Board of Trustees on September 5.
VanEck, the sponsor of VanEck ETFs, regularly monitors and assesses the performance, liquidity, assets under management, and investor interest of its ETF offerings. These and other operational considerations were analyzed, and the decision was made to liquidate the fund, the post added.
Up to the market close on September 16, 2024, shareholders of the Fund may sell their shares on the Fund's listing exchange (transaction cost from their broker-dealer may be incurred). Following the market close on September 16, 2024, the Fund’s shares will cease to trade on the listing exchange (CBOE) and subsequently be delisted.
On or around September 23, 2024, the Fund will go through a liquidation process. Those shareholders who continue to hold the fund's shares at that time will receive a liquidating distribution of cash in their brokerage accounts equal to the net asset value of their shares. On or around September 23, 2024, the liquidation proceeds are expected to be distributed to shareholders.
In most cases, a shareholder's capital gain or loss for tax purposes will be equal to the amount they received for their shares over their adjusted basis in those shares. Starting on September 16, 2024, authorized participants' creation orders will no longer be accepted by the Fund.
Additionally, capital gains and net income earned by the Fund that were not previously distributed prior to liquidation may be sent to shareholders who own shares of the Fund in a final distribution.
Together with the year-end tax reporting for the Fund (including any portion that may be treated as a return of capital for tax purposes, reducing a shareholder's basis in such shares), shareholders will receive the final tax status of distributions made by the Fund, including the liquidating distribution.
According to a post as seen on social media platform X by the firm, the decision to close the ETF that invested in ethereum futures was related to the approval of its spot ethereum ETP.
In May of this year, the Securities and Exchange Commission approved seven other spot ether funds in addition to VanEck's ETHV spot Ethereum ETF.
Disclaimer: This information should not be considered financial advice by any means. Please do your own research before making any investment decisions. The views in the articles are personal opinions only. Whale Insider is not responsible for any financial losses incurred.