VanEck shifts focus to spot Ethereum ETF, phases out futures fund EFUT
Asset management firm VanEck announced plans to close and liquidate its Ethereum futures exchange-traded fund (ETF) EFUT, according to a statement on September 6.
VanEck cited performance, liquidity, assets under management (AUM), and investor interest as factors in its decision. The firm also cited the recent approval by the U.S. Securities and Exchange Commission (SEC) of its spot Ethereum ETP, ETHV, as a key reason for shutting down EFUT.
EFUT shareholders must sell their shares on the fund’s listing exchange by the close of the market on September 16, 2024, after which the ETF will be delisted and trading will cease.
Meanwhile, shareholders holding EFUT shares until the expected liquidation date of September 23, 2024 will receive a cash distribution based on the net asset value (NAV) of their shares.
Launched on October 2, 2023, EFUT is listed on the CBOE exchange. As of September 5, the fund had net assets of $21.24 million and a NAV of $2,023.
unfair comparison
VanEck’s decision to close the Ethereum futures ETF comes after JPMorgan analysts noted that the spot Ethereum ETF’s AUM relative to token market cap was similar to that of a Bitcoin ETF at a similar stage of its launch.
Analysts highlighted that the total AUM of Ethereum ETFs, including Grayscale’s ETHE, accounted for approximately 2.3% of Ethereum’s total market cap during the first 29 days of trading. In contrast, the total AUM of Bitcoin ETFs, including Grayscale’s GBTC, accounted for 3.0% of Bitcoin’s market cap during the same period.
Analysts say the performance gap between Ethereum and Bitcoin ETFs is less significant than it appears, given the AUM expansion relative to underlying market cap.
According to this analysis, the launch of a spot Ether ETF has largely been in the same vein as a Bitcoin ETF. However, some market analysts argue otherwise, citing the negative outflows of over $500 million from spot Ethereum ETFs traded in the United States since their launch, while the initial Bitcoin ETF trades have seen record inflows.
