VanEck to close ether futures ETF after July spot ETH fund launch
The offering, which launched in October 2023, had gathered just $21 million in assets
Piotr Swat/Shutterstock modified by Blockworks
Investment firm VanEck intends to close its ether futures ETF nearly a year after launching it, the company said Friday.
The VanEck Ethereum Strategy ETF (EFUT) hit the market in October 2023. The fund, like others brought to market at the same time, held ether futures contracts rather than ETH directly.
The ETH futures offerings failed to gain significant assets, as some speculated investors might be waiting for spot ether ETFs — funds that gained the SEC’s final green light in July.
VanEck was among those to launch a spot ether ETF. While the VanEck Ethereum ETF (ETHV) has so far notched $63 million of net inflows, according to Farside Investors data, EFUT manages just $21 million in assets.
Read more: To spur ETH ETF inflows, ‘the first catalyst is education’
Shareholders of VanEck’s ether futures fund can sell their shares on the Cboe exchange until markets close on Sept. 16. After that, the shares will no longer trade on the exchange and will be subsequently de-listed.
“VanEck continuously monitors and evaluates its ETF offerings across a number of factors, including performance, liquidity, assets under management, and investor interest, among others,” the company said in a Friday news release. “The decision was made to liquidate the fund based on an analysis of these factors and other operational considerations.”
Grayscale Investments withdrew its application to launch an ether futures ETF in May. Then-CEO Michael Sonnenshein reportedly said during a Financial Times event
earlier that month that the firm wanted to focus on its spot products.
VanEck revealed its plan to shutter its bitcoin futures ETF just days after launching a spot BTC fund in January.
Industry professionals have previously pointed to the downsides of futures ETFs, including roll costs and contango — a situation when the futures price is above the expected future spot price.
“We believe investor appetite would switch from products offering ether futures exposure to direct ether exposure, such as ETHV,” a VanEck spokesperson told Blockworks in an email. “Spot products should more closely track the price of ether, as they don’t incur the costs associated with rolling futures contracts.”
Updated September 6, 2024 at 1:35 pm ET: Added comment from VanEck spokesperson.
Get the news in your inbox. Explore Blockworks newsletters:
- The Breakdown: Decoding crypto and the markets. Daily.
- Empire: Crypto news and analysis to start your day.
- Forward Guidance: The intersection of crypto, macro and policy.
- 0xResearch: Alpha directly in your inbox.
- Lightspeed: All things Solana.
- The Drop: Apps, games, memes and more.
- Supply Shock: Bitcoin, bitcoin, bitcoin.
