VanEck has decided to close and liquidate the VanEck Ethereum Strategy exchange-traded fund (EFUT) after carefully considering several factors, including the fund’s performance, liquidity, and investor interest. The company has given its shareholders until September 16th, 2024, to dispose of their shares before the fund is taken off the exchange.
The Board approved the liquidation of Trustees of VanEck ETF Trust on September 5, 2024. The Ethereum Futures ETF (EFUT), which is traded on the CBOE exchange, will cease trading on September 16, 2024. This move was made as part of VanEck’s routine assessment of its ETF products to meet market needs and business objectives.
VanEck ETF to Cease Trading on September 16, 2024
Individuals who want to sell their shares can do so before the close of business on September 16, 2024. After that, the fund’s shares will be removed, and there will be no more trading activity. Shareholders who still maintain their shares at the time of liquidation, estimated to be on September 23, 2024, will get a cash payment equivalent to the net asset value of their shares. The liquidation proceeds will be deposited into their brokerage accounts, and the distributions are expected to be sent out simultaneously.
From the tax perspective, shareholders can realise a capital gain or a loss based on the amount they received from the liquidation relative to their initial investment. The fund will cease to accept new orders from Authorized Participants on or after September 16, 2024.
Shareholders may also receive a final payment of any undistributed net income and capital gains not paid out by the fund before liquidation. VanEck will disclose such tax information in the shareholder’s year-end tax statement, including any capital gains or return of capital for tax purposes.
Ultimately, VanEck’s move is in line with the company’s strategies to continuously meet the market needs for its ETF products.
