Sad News from VanEck: Ethereum Futures ETF is Being Liquidated
VanEck has decided to close its Ethereum Futures ETF (EFUT) developed for the Ethereum-based altcoin ETH. The company officially announced its plans for the liquidation of this product. The board of directors of VanEck ETF Trust approved the liquidation and dissolution of the fund. The statement indicated that VanEck continuously monitors and evaluates a range of criteria, including performance, liquidity, asset size under management, and investor interest. The decision to liquidate the fund was made following a comprehensive analysis of these factors, as well as other operational issues.
Disappointing Developments for Altcoin ETH
Shareholders of the fund will have the opportunity to sell their shares on the exchange until the market close on September 16, 2024. However, it should also be noted that broker transaction fees may be charged during this process. After September 16, 2024, the shares of the altcoin fund will no longer be traded on the exchange and will subsequently be delisted. The liquidation date of the fund is expected to occur around September 23, 2024. Investors who still hold fund shares on this date will receive a cash liquidation distribution equal to the net asset value of their shares.
In summary, on September 5, 2024, the Board of Directors of VanEck ETF Trust approved the liquidation of the following fund:
- ETF Name: VanEck Ethereum Strategy ETF
- Symbol: EFUT
- Exchange: CBOE
As part of ETF sponsorship, VanEck continuously observes and evaluates various elements such as performance, liquidity, asset size under management, and investor interest. The decision to liquidate the fund was made following an in-depth analysis of such factors and other operational details. Shareholders have the opportunity to sell their shares on the exchange until market close on September 16, 2024. However, it should be noted that transaction fees may also be charged by broker-dealers. The shares of the altcoin fund will not be traded on the exchange after September 16, 2024, and will subsequently be delisted.
What is the Liquidation Date of the Fund?
The liquidation date of the fund is expected to be around September 23, 2024. Shareholders who still hold fund shares until this date will receive a cash liquidation distribution equal to the net asset value of their shares. Proceeds from the liquidation are planned to be distributed to shareholders around September 23, 2024. For tax purposes, shareholders will generally be required to report the difference between the amount received from the sale and the costs associated with these shares as capital gain or loss. The fund will not accept creation orders from Authorized Participants starting September 16, 2024.
Additionally, investors holding shares of the fund may receive a final distribution of net income and capital gains earned by the fund that has not been previously distributed. The final tax status of distributions made by the altcoin fund, including liquidation distributions, will be announced later. Shareholders will receive detailed information along with the fund’s year-end tax reporting. However, any distribution that will be considered a capital return for tax purposes will reduce the shareholders’ basis.
