VanEck to Liquidate Bitcoin Futures ETF: What You Need to Know

On January 17th, VanEck disclosed that its board of trustees had authorized the dissolution.

VanEck will shut down and liquidate its Bitcoin Futures ETF, XBTF.

By Brian Yue

Last updated: January 16, 2024 23:23 EST | 1 min read

Asset management firm VanEck has recently announced the closure and liquidation of its Bitcoin futures ETF, known as “XBTF.” This decision comes less than two years after its initial launch.

In an announcement posted on January 17th, VanEck revealed that its board of trustees had approved the liquidation process. The company will now proceed to liquidate and dissolve its XBTF Bitcoin futures ETF, which has been listed on the Cboe BZX Exchange since November 2021.

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The decision to liquidate XBTF follows the recent approval from the United States Securities and Exchange Commission (SEC) for VanEck to list shares of its spot BTC ETF. The company stated that this decision was based on an analysis of various factors, including performance and investor interest.

“VanEck continuously monitors and evaluates its ETF offerings across a number of factors, including performance, liquidity, assets under management, and investor interest, among others,” the company explained in its announcement. “The decision was made to liquidate the Fund based on an analysis of these factors and other operational considerations.”

Shareholders who currently hold shares of the XBTF Bitcoin futures ETF will have the ability to sell their shares until January 30. Following the delisting, scheduled for February 6, those who choose not to sell will receive a distribution of cash.

While XBTF managed to attract approximately $53 million in assets, it is worth noting that this ETF is one of several that hold Bitcoin futures contracts that were introduced in late 2021, according to VanEck’s website.

Questions and Answers

Q: Why is VanEck liquidating its Bitcoin futures ETF?

A: VanEck made the decision to liquidate its Bitcoin futures ETF after evaluating various factors, such as performance and investor interest. The company continuously monitors its ETF offerings to ensure they align with its goals and operational considerations.

Q: What alternatives do shareholders have if they hold shares of the XBTF ETF?

A: Shareholders of the XBTF Bitcoin futures ETF have until January 30 to sell their shares. After the delisting on February 6, those who choose not to sell will receive a distribution of cash.

Q: How much assets does the XBTF Bitcoin futures ETF have?

A: According to VanEck’s website, the XBTF Bitcoin futures ETF currently manages approximately $53 million in assets.

Interest in Bitcoin ETFs Will “Spike”

During a recent panel discussion on VettaFi’s Cryptocurrency Symposium, Kyle DaCruz, the Director of Digital Assets Product at VanEck, expressed his belief that interest in crypto products and Bitcoin ETFs would continue to grow following the recent SEC approval of Bitcoin ETFs.

“I think from here on out, it’s only going to be continued interest and demand,” DaCruz commented. He acknowledged that interest in Bitcoin had been somewhat subdued in the past due to market issues and instances of fraud. However, he emphasized that with the arrival of regulated products in the market, interest would only spike.

The VanEck Bitcoin Trust (HODL) was among the 10 spot Bitcoin ETFs that were launched recently, with an initial seed capital of $72.5 million.

📈 Future Outlook and Investment Recommendations

The closure of VanEck’s Bitcoin futures ETF may not be an indicator of a negative trend in the overall market. It is important to remember that liquidation decisions are made based on various factors specific to each ETF offering. However, investors and enthusiasts should stay vigilant and monitor market developments closely.

As the interest in Bitcoin ETFs continues to grow, it presents an opportunity for market participants. Investing in Bitcoin remains a volatile venture, but regulated products like ETFs can offer a more accessible and transparent way to participate in the cryptocurrency market. It is crucial to conduct thorough research and consult with financial advisors before making any investment decisions.

🌐 References:

1. VanEck Adviser Says Spot Bitcoin ETF Impact Overestimated Despite Long-term Gains
2. SEC Statement: Hack-X Account Resulting Fake Bitcoin ETF Approval Announcement
3. CBOE Says Bitcoin ETFs to Start Trading Thursday, Though not all SEC-Approved
4. Critics Yell Hypocrisy as Ordinals Website Suffers DDoS, Spam Attack

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