VanEck is closing its futures-based Ether ETH exchange-traded fund (ETF), attributing the decision to insufficient demand for futures-based crypto ETFs as spot ETFs become more popular, according to a September 6 announcement.
Shares of the VanEck Ethereum Strategy ETF (EFUT) will cease trading on September 16, and the fund's assets will be liquidated and returned to investors around September 23.
VanEck's decision to shutter the EFUT comes amid growing dominance of spot cryptocurrency ETFs. The firm cited several factors for the closure, including performance, liquidity, assets under management, and investor interest.
Nate Geraci, president of The ETF Store, stated that the closure was expected, as he had predicted in 2023 that spot crypto ETFs would render futures-based ETFs obsolete. The EFUT, launched in 2023, has only about $21 million in assets under management, compared to more than $55 million for VanEck's spot Ethereum ETF (ETHV).
The SEC authorized spot Ether ETFs to trade in the United States starting in July. These spot ETFs now command approximately $6.5 billion in assets, while futures-based ETFs hold less than $170 million. Spot ETFs have outperformed futures-based funds due to their lower costs and less complex management.
VanEck's move reflects a broader trend in the ETF market, where spot ETFs are increasingly preferred over futures-based options. The shift underscores the evolving landscape of cryptocurrency investments and the growing demand for more efficient investment vehicles.
