VanEck said Wednesday it has decided to liquidate its VanEck Bitcoin Strategy ETF, following an analysis of performance, liquidity, assets under management and investor interest.
The ETF sponsor said shareholders may sell their shares in the Bitcoin Strategy ETF
XBTF
until the market closes on Jan. 30. After the close, the ETF will be delisted.
Those who choose not to sell it before it is delisted will receive a distribution of cash on the liquidation date, which is expected to be on or about Feb. 6.
The ETF fell 0.7% in morning trading, putting it on track for the lowest close of 2024, while bitcoin futures dropped 0.8%.
VanEck Bitcoin Strategy ETF, which will be liquidated, has underperformed bitcoin futures in recent months.
FactSet, MarketWatch
The ETF, which started trading on Nov. 16, 2021, invests in front-month bitcoin futures
BTC.1,
but doesn’t directly invest in bitcoin
BTCUSD,
or other cryptocurrencies.
Total net assets were $54.4 million as of Dec. 31, and the average daily trading volume over the past 30 days was about 37,000 shares, according to FactSet.
The VanEck decision to liquidate the bitcoin futures ETF comes less than a week after ETFs tracking spot, or live, bitcoin prices started trading.
The Bitcoin Strategy ETF has rallied 40.5% over the past three months, while bitcoin futures ran up 50.1% and the S&P 500 index
SPX
gained 8.1%.
This post was originally published on Market Watch
