Asset manager VanEck on Friday announced that it will be closing its futures-based Ethereum exchange-traded fund (ETF) due to low demand, as inflows to spot cryptocurrency ETFs dominate.
The decision was based on various factors, such as performance, liquidity, assets under management, and investor interest.
Trading of the VanEck Ethereum Strategy ETF (EFUT) will stop on September 16, with fund assets being liquidated and returned to investors on or around September 23.
This move was expected, according to Nate Geraci, president of investment adviser The ETF Store, who previously predicted that spot crypto ETFs would make futures-based ones irrelevant in 2023.
Geraci also speculated that VanEck saw the EFUT as a marketing expense rather than a profitable investment.
