- VanEck announced it would close its Bitcoin Strategy ETF, which tracks Bitcoin futures contracts
- At the time of writing, the company had total net assets of more than $50 million in the ETF
US investment management company – VanEck has announced that it will liquidate and close Bitcoin (BTC) strategy ETFs. The announcement comes days after the US Securities and Exchanges Commission (SEC) approved its spot Bitcoin ETF application. It is striking that both exchange-traded funds differ from each other.
The spot Bitcoin ETF tracks the price of Bitcoin in real time, meaning the product provider will buy and own BTCs. Meanwhile, VanEck’s Bitcoin Strategy ETF is tied to Bitcoin futures contracts and does not invest directly in BTCs.
Factors that led to the closure of the Bitcoin ETF
Company said that the decision to liquidate the ETF was influenced by, among other things, performance, liquidity assets under management, investor interest and operational considerations. In addition, the fund will be officially delisted at the end of this month, January 30, 2024, giving investors about two weeks to sell their shares.
If the shares remain unsold, the company says it will distribute cash in proportion to “the amount of the net asset value of their shares” following the liquidation of the ETF. The liquidation date will take place around February 6, 2024.
Notably, the company had launched the product in November 2021. At the time of writing, the ETF’s total net assets were $53.29 million with a net asset value of $39.47. The year-to-date return was 1.65%, from the official website from VanEck.
The story is still developing…
