A financial services firm with nearly $90 billion in assets under its management is closing its Bitcoin (BTC) exchange-traded fund (ETF) futures just days after the U.S. Securities and Exchange Commission approved a slew of BTC ETFs in the spot market.
According to a new press release, New York-based investment management firm VanEck says it plans to close and liquidate the VanEck Bitcoin Strategy ETF, an exchange-traded product listed on the Chicago Board Options Exchange (CBOE).
“As a sponsor of VanEck ETFs, VanEck continuously monitors and evaluates its ETF offerings based on a number of factors, including performance, liquidity, assets under management and investor interest, among others. The decision was made to liquidate the Fund based on an analysis of these factors and other operational considerations.”
VanEck says the futures ETF will close on January 30, while liquidation is scheduled for February 6. Investors who continue to hold shares will receive a proportionate amount of cash in their accounts.
Last week, the SEC made the long-awaited decision to approve BTC ETFs in the spot market after years of rejecting them, creating the first-ever channel between the digital asset industry and Wall Street. Major companies whose bids have been approved include VanEck, BlackRock, Fidelity, ARK Invest and Franklin Templeton.
BTC ETFs in the spot market allow investors to gain exposure to the crypto king without actually having to purchase the digital asset itself.
Earlier this year, VanEck promised that if the regulator approved her application for a spot BTC ETF, she would donate a portion of her profits to supporting Bitcoin Core developers for at least 10 years.
Bitcoin is trading at $42,267 at the time of writing, up 2.1% over the past 24 hours.
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