VanEck to Shut Down and Liquidate Ethereum Futures ETF (EFUT)

September 9, 2024

Global asset manager VanEck recently made public its decision to close and liquidate its Ethereum futures ETF, the VanEck Ethereum Strategy ETF (EFUT). The Board of Trustees of VanEck ETF Trust approved this move on 5 September 2024.

VanEck regularly assesses its ETF offerings, taking into account various factors such as performance, liquidity, assets under management, and investor interest. Following a thorough evaluation of these aspects and other operational considerations, the company concluded that liquidating the EFUT fund would be in the best interest of investors.

The EFUT fund, which is traded on the CBOE under the ticker EFUT, will continue to be available for trading until the market closes on 16 September 2024. Subsequently, the shares will be delisted, and no further transactions will be permitted. Shareholders who retain their shares beyond this date will receive a cash distribution equivalent to the net asset value of their holdings, scheduled for 23 September 2024. These proceeds will be credited to the cash portion of their brokerage accounts.

VanEck’s press release advises shareholders to consider the potential tax implications of the liquidation. Shareholders are likely to realize a capital gain or loss based on the variance between the amount received from the sale and their adjusted cost basis. Furthermore, shareholders may receive a final distribution of any remaining income or capital gains before the liquidation.

VanEck has confirmed that the final tax status of these distributions, including any return of capital, will be communicated to shareholders in the year-end tax reporting for 2024.

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Please note that the views and opinions expressed in this article are for informational purposes only and do not constitute financial, investment, or other advice. Investing in or trading cryptoassets carries a risk of financial loss.