VanEck Bitcoin Futures ETF to Liquidate
Asset management firm VanEck has announced that it will close and liquidate its Bitcoin futures ETF “XBTF,” less than two years after its initial launch. The decision comes after evaluating several factors such as performance and investor interest, with the approval of the liquidation from VanEck’s board of trustees.
Following the announcement, VanEck will now liquidate and dissolve its XBTF Bitcoin futures ETF on the Cboe BZX Exchange, where it had been listed since November 2021. The determination was made approximately one week after the asset management firm obtained approval from the United States Securities and Exchange Commission to list shares of its spot BTC ETF.
VanEck continuously monitors and evaluates its ETF offerings, including performance, liquidity, assets under management, and investor interest, among others. The decision to liquidate the Fund was made based on an analysis of these factors and other operational considerations.
The asset manager mentioned that shareholders would retain the ability to sell their shares of the Bitcoin Strategy ETF until January 30, and noted that XBTF is scheduled to be delisted by February 6. Holders who choose not to sell before the delisting will receive a distribution of cash on February 6.
XBTF was among several ETFs holding Bitcoin futures contracts that entered the market in late 2021 and managed approximately $53 million in assets.
VanEck’s Director of Digital Assets Product, Kyle DaCruz, mentioned that interest in crypto products and Bitcoin ETFs was “only going to spike” after the SEC approved Bitcoin ETFs. He believes that now that these regulated products have come to market, interest is only going to increase.
After the liquidation of the XBTF Bitcoin futures ETF, the market will continue to focus on the growing interest and demand for crypto products and Bitcoin ETFs. This showcases the continuous evolution of the cryptocurrency market, with more products and opportunities becoming available to investors.