VanEck to Close and Liquidate Ethereum Futures ETF (EFUT), Signaling a Setback for ETH

The decision stems from diminishing market interest, performance concerns, and other factors. The ETF, listed on the CBOE exchange, will allow shareholders to sell their EFUT shares until September 16, 2024.

Investment management giant VanEck has announced plans to close and liquidate its Ethereum Futures ETF (EFUT), signaling a setback for Ethereum (ETH) in the volatile market. The decision comes as part of a broader strategic shift towards spot market offerings.

The ETF, listed on the CBOE exchange, will allow shareholders to sell their EFUT shares until September 16, 2024. After that date, trading will cease, and the fund will be delisted, with a liquidating distribution set for September 23, 2024.

The move also reflects VanEck's strategic shift towards spot market offerings, following the approval of its US Spot Ethereum ETF and a similar decision regarding its Bitcoin Futures ETF earlier this year.

The decision highlights the challenges facing Ethereum futures in a declining market environment.

According to the announcement, the liquidation process will involve cash distributions to EFUT shareholders, which may impact those with holdings in brokerage accounts. VanEck advises investors to consider the tax implications, as the distributions could result in capital gains or losses.

The termination of EFUT underscores the struggles of Ethereum ETFs amid fluctuating market dynamics. With ETH prices down nearly 4% to $2,284 and trading volume up 34%, the market is bracing for further volatility. Recent analysis suggests ETH could drop to $2,000, adding to the selling pressure.

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