Asset manager VanEck will close and liquidate its Bitcoin Strategy Exchange Traded Fund, which tracks the performance of Bitcoin futures, after the much-watched spot Bitcoin ETF is approved for listing。

Futures Bitcoin ETF No Place

Recently, ETFs based on Bitcoin futures will continue to be listed on the Cboe BZX exchange until January 30, 2024, before which investors can liquidate open contracts.。The fund will automatically liquidate all shareholders' positions on February 6, 2024.。

"VanEck continuously monitors and evaluates a range of factors across its ETF offerings, including performance, liquidity, assets under management and investor interest," VanEck said in an official press release.。Based on our analysis of these factors and other operational considerations, we have decided to liquidate the Fund。"

Shareholders who continue to hold shares in the Fund on or around the Fund's liquidation date (expected on or around February 6, 2024) will receive a cash liquidation distribution equal to the net asset value of their shares in the cash portion of their brokerage account。

Spot Bitcoin ETF Drives Demand Growth

VanEck launched and listed a futures-based Bitcoin ETF in November 2021 under the ticker symbol XBTF。The product went public because companies, including VanEck, were unable to obtain SEC approval for a spot Bitcoin ETF.。

The decision to close the VanEck Bitcoin Strategy ETF comes just a week after U.S. regulators approved 11 spot Bitcoin ETFs, all of which are currently listed on U.S. stock exchanges.。With a spot Bitcoin ETF, VanEck is competing against traditional financial giant BlackRock and several other companies that specialize in cryptocurrencies.。After 7 days of listing, BlackRock's spot Bitcoin ETF has taken the lead in inflows。

While the cryptocurrency and mainstream financial services industries view the U.S. listing of a spot Bitcoin ETF as a landmark event, it has failed to have a significant impact on Bitcoin prices, at least so far.。

In addition, despite the participation of mainstream giants such as BlackRock, there are still some participants who are skeptical about crypto products。Mutual fund giant Vanguard, which also offers brokerage services, does not offer spot Bitcoin ETFs to its clients, while some other participants are still evaluating or offering conditions.。