An ETF based on the Chicago Mercantile Exchange (CME) Ether futures contract, the VanEck Vectors Ether Trust (ETHE), has liquidated its holdings and will close on Sept. 29, the company stated. The fund was launched in early 2018 as one of the first Ethereum-based ETFs on US markets.  The decision to shutter the ETF comes amid a shift in investor sentiment towards spot cryptocurrency funds, which have seen significantly higher inflows than their futures-based counterparts in recent months. According to data from ETF provider Vident Investment Grade Cryptocurrency ETF, spot cryptocurrency ETFs have collected over $1.4 billion in assets under management (AUM) since the beginning of 2022, while futures-based ETFs have seen outflows of approximately $300 million over the same period.  The closure of the ETHE ETF marks the end of an era for VanEck, which has been a pioneer in the cryptocurrency ETF space. In 2013, the firm filed with the Securities and Exchange Commission (SEC) to launch the first cryptocurrency ETF, but the application was ultimately denied due to regulatory concerns surrounding the potential for price manipulation in the cryptocurrency market.  However, VanEck did not give up on its efforts to launch a cryptocurrency ETF, and in 2018 it successfully launched the Vectors Ether Trust, which was the first ETF to track the price of Ether. Despite its popularity, the ETHE ETF has faced challenges in recent months, with trading volumes declining significantly since the peak of the cryptocurrency market in late 2021.  According to the announcement, VanEck will liquidate the ETHE ETF's holdings over the course of the next two weeks and close the fund on Sept. 29. Existing shareholders will receive a pro-rata share of the liquidated assets, and the fund will be delisted from the Cboe BZX Exchange once the closure is complete.  The closure of the ETHE ETF marks a significant shift in the cryptocurrency ETF landscape, with spot cryptocurrency ETFs poised to become the dominant force in the market. As institutional investors increasingly show interest in the space, it remains to be seen if futures-based ETFs will regain their popularity in the years to come.  https://www.YakiHonne.com/story/vanek-to-shutter-ethereum-futures-etf 

 The EFUT ETF faced significant hurdles since its launch, including a decline in value and limited trading volume. On its debut, the ETF was reported to be down by 6.6%, reflecting the volatility and uncertainty that often accompany cryptocurrency investments. The broader market for Ether futures ETFs has struggled to gain traction, which may have contributed to VanEck's decision to shutter the fund. 

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