As a seasoned crypto investor with a knack for navigating the volatile landscape of digital assets, I’ve seen my fair share of fund closures and liquidations. However, the announcement from VanEck regarding the closure of their Ethereum Strategy exchange-traded fund (EFUT) has caught my attention.
VanEck will be shutting down and selling off the VanEck Ethereum Strategy exchange-traded fund (ETF), following a thorough evaluation of factors such as its performance, market liquidity, and investor demand. Shareholders have until September 16th, 2024, to sell their shares before the ETF is delisted from the exchange.
The Board has decided to liquidate the Trustees of VanEck ETF Trust on September 5, 2024. Trading for the Ethereum Futures ETF (EFUT) on the CBOE exchange will end on September 16, 2024. This action is part of VanEck’s regular review of its ETF offerings to ensure they align with market requirements and business goals.
VanEck ETF to Cease Trading on September 16, 2024
Shareholders have until September 16, 2024, to sell their shares in this fund before trading ceases. After that date, all trading activity will end, and the shares will be withdrawn from circulation. If shareholders hold onto their shares at the time of liquidation, which is estimated for September 23, 2024, they will receive a cash payment equal 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 distributed 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 might additionally receive a closing payment covering any remaining net income and capital gains that were not previously distributed by the fund prior to its dissolution. It’s important to note that VanEck will provide the necessary tax details in the shareholder’s annual tax statement, which may include information about capital gains or returns of capital for tax purposes.
In alignment with our ongoing strategy to cater to market demands, my analysis indicates that VanEck’s latest move is a natural progression in the development of our ETF offerings.
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2024-09-07 22:23