VanEck Announces Closure and Liquidation of Ethereum Futures ETF

Ethereum Ethereum ETF VanEck

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Hongji Feng

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Hongji Feng

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Hongji is a crypto and tech reporter. He graduated from Northwestern University's Medill School of Journalism with a Bachelor's and a Master's. He has previously interned at HTX (Huobi Global),...

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September 6, 2024 12:27 EDT

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VanEck has announced on September 6 that its Ethereum Futures Exchange-Traded Fund (ETF) will be closed and liquidated, with the final trading day scheduled for September 16, 2024, on the Chicago Board Options Exchange (CBOE).

This decision follows an internal review of the fund’s performance, liquidity, and investor interest.

Details for Investors Ahead of Closure

The ETF will remain available for trading until the market closes on September 16, after which it will be delisted.

Shareholders holding shares as of the liquidation date, expected around September 23, will receive a cash payout based on the net asset value (NAV) of their holdings, which will be deposited into their brokerage accounts.

Before the closure, the fund may issue a final distribution of any remaining income and capital gains.

Shareholders should consider the potential tax implications of the liquidation, including capital gains or losses, which will be reflected in their year-end tax reporting.

VanEck will provide details of the final tax status with the year-end reports.

VanEck Explores Solana ETFs Following Key Precedent

As VanEck prepares to close its Ethereum Futures ETF, it is also considering opportunities in Solana ETFs.

Matthew Sigel, VanEck’s Head of Digital Assets Research, pointed to a 2018 fraud case involving My Big Coin as a precedent that could pave the way for Solana’s regulatory classification.

In the case of My Big Coin, the Commodity Futures Trading Commission (CFTC) charged the company’s founders with fraud, accusing them of misleading customers about the token’s value and utility.

The judge ruled that $MBC was a “virtual currency,” similar to Bitcoin, and therefore fell under the CFTC’s definition of a commodity.

Sigel pointed out that the judge’s reasoning, which likened $MBC to natural gas, suggested that an asset could be classified as a commodity even without an existing futures market.

He believes the same logic could apply to Solana, helping it gain the regulatory classification.