- This step highlights how spot crypto ETFs are dominating over futures-based funds.
- The company has cited performance, liquidity, and low investor interest.
Global asset management firm VanEck plans to close its Ethereum futures ETF, a decision that highlights the growing popularity of spot cryptocurrency ETFs. The latter have reportedly received most investor inflows and rendered futures-based funds obsolete.
In its September 6 announcement, VanEck explained that its Ethereum futures ETF, known as EFUT, will stop trading on September 16, with assets being returned to investors by the end of the month. VanEck pointed to performance, liquidity, assets under management (AUM), and investor interest as primary reasons for shuttering the fund.
The EFUT fund, launched in 2023, has only amassed around $21 million in AUM, a contrast to VanEck’s spot Ethereum ETF (ETHV), which has garnered over $55 million in assets since its launch in June 2024.
Spot cryptocurrency ETFs, particularly those tracking Ethereum, have grown rapidly since gaining approval from the US Securities and Exchange Commission in July, Cointelegraph reported. These funds now collectively command approximately $6.5 billion in AUM, dwarfing the $170 million held by futures-based Ethereum ETFs, according to data from Morningstar.
See Related: Australia’s ASX To List VanEck Bitcoin ETF, Following Global Crypto ETF Trend
VanEck’s Decision Follows Industry Trends
Futures-based ETFs use contracts to replicate the performance of cryptocurrencies, but they often struggle to match the returns of spot funds. This is partly due to the costs associated with rolling over contracts each month, which typically leads to underperformance compared to spot ETFs.
VanEck’s decision to liquidate its futures ETF reflects broader shifts in the ETF industry. In 2024, cryptocurrency ETFs have accounted for more than half of the 25 largest ETF launches by inflows. The dominant force in this category is the Grayscale Ethereum Trust, which holds $4.2 billion in AUM, further underscoring the growing dominance of spot ETFs over futures-based offerings.
VanEck said it continues to assess its ETF products based on performance and investor interest. The company has set a deadline of September 16 to sell their holdings before the fund is de-listed. After this date, the shares will no longer trade, and assets will be liquidated and returned to shareholders by September 23.
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