VanEck to liquidate Bitcoin futures ETF

2024-01-17 09:36:32

In a significant move impacting cryptocurrency investment vehicles, VanEck announced on Wednesday its decision to liquidate the VanEck Bitcoin Strategy ETF.

The decision announced in a Jan. 16 press release, was influenced by a comprehensive analysis of the fund’s performance, liquidity, assets under management, and investor interest, marks a notable shift in the ETF landscape.

According to VanEck, shareholders holding positions in the VanEck Bitcoin Strategy ETF (XBTF) have until the market close on Jan. 30 to sell shares. The ETF, which has recently experienced a 1.4% decline, will be officially delisted from the market after this deadline. This move comes amidst fluctuating fortunes in the cryptocurrency market, with front-month Bitcoin (BTC) futures also witnessing a 1.6% drop, further signaling cautious investor sentiment.

The ETF, trading with an average volume of approximately 37,000 shares over the past 30 days, primarily invests in front-month Bitcoin futures, per FactSet data. However, it notably does not directly invest in Bitcoin or other cryptocurrencies.

Bitcoin is trading at $42,300 after seeing its price fall by 2.2% over the last 24 hours. The trading volume has fallen sharply from the $62 billion at the time of the Bitcoin ETF approval to the current value of $22 billion.

Bitcoin seven-day price chart. | Source: CoinMarketCap

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