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Asset management firm VanEck will close and liquidate its Bitcoin strategy exchange-traded fund, which tracks the performance of Bitcoin futures, after the approval and listing of the highly anticipated Bitcoin spot ETFs.
Announced yesterday (Wednesday), the Bitcoin futures-based ETF would continue to be listed on the Cboe BZX exchange until January 30, 2024, and investors can liquidate their open positions until then. The fund will automatically liquidate the positions of all shareholders on February 6, 2024.
“VanEck continually monitors and evaluates its ETF offerings based on a number of factors, including performance, liquidity, assets under management and investor interest,” the company said in the press release. official. “The decision was made to liquidate the Fund based on an analysis of these factors and other operational considerations.”
“Shareholders who continue to hold shares of the Fund on the Fund's liquidation date, which is expected to be on or about February 6, 2024, will receive a cash liquidation distribution in the cash portion of their brokerage accounts equal to the amount of the liquidation of their shares.
Now that our bitcoin spot ETF has been approved, we are closing our ETF that invested in bitcoin futures. https://t.co/pgf8NaKb4a
–VanEck (@vaneck_us) January 17, 2024
Spot Bitcoin ETFs to Increase Demand
VanEck launched and listed the futures-based Bitcoin ETF, with the symbol XBTF, in November 2021. The product was listed when companies, including VanEck, were unable to receive approval from the Securities and Exchange Commission. Exchange Commission (SEC) for a spot Bitcoin ETF.
The decision to close the VanEck Bitcoin Strategy ETF came just a week after the US regulator approved 11 spot Bitcoin ETFs, all of which are now listed on US exchanges. With its spot Bitcoin ETF, VanEck competes with traditional financial giant BlackRock and several other crypto-specific companies. After 7 days of trading, inflows to BlackRock’s Bitcoin ETF spot took the leading position.
$803 million was invested in spot Bitcoin ETFs in the first 3 days…
Good overview here of various dynamics, including ARKW's purchase of ARKB, GBTC exits, and issuers looking to launch other Bitcoin-related ETFs.
Including the color of yours truly.
via @kgreifeld @emily_graffeo
pic.twitter.com/Zd3dHfpQ7W-Nate Geraci (@NateGeraci) January 17, 2024
Although the crypto and traditional financial services industries view the listing of spot Bitcoin ETFs in the United States as a historic event, it did not have a significant impact on Bitcoin prices, at least until here.
Additionally, despite the involvement of traditional giants like BlackRock, a few players remain skeptical of the crypto product. Vanguard, a mutual fund giant that also offers brokerage services, does not offer spot Bitcoin ETFs to its clients, while a few others are still evaluating them or offering them with conditions.
Asset management firm VanEck will close and liquidate its Bitcoin strategy exchange-traded fund, which tracks the performance of Bitcoin futures, after the approval and listing of the highly anticipated Bitcoin spot ETFs.
Announced yesterday (Wednesday), the Bitcoin futures-based ETF would continue to be listed on the Cboe BZX exchange until January 30, 2024, and investors can liquidate their open positions until then. The fund will automatically liquidate the positions of all shareholders on February 6, 2024.
“VanEck continually monitors and evaluates its ETF offerings based on a number of factors, including performance, liquidity, assets under management and investor interest,” the company said in the press release. official. “The decision was made to liquidate the Fund based on an analysis of these factors and other operational considerations.”
“Shareholders who continue to hold shares of the Fund on the Fund's liquidation date, which is expected to be on or about February 6, 2024, will receive a cash liquidation distribution in the cash portion of their brokerage accounts equal to the amount of the liquidation of their shares.
Now that our bitcoin spot ETF has been approved, we are closing our ETF that invested in bitcoin futures. https://t.co/pgf8NaKb4a
–VanEck (@vaneck_us) January 17, 2024
Spot Bitcoin ETFs to Increase Demand
VanEck launched and listed the futures-based Bitcoin ETF, with the symbol XBTF, in November 2021. The product was listed when companies, including VanEck, were unable to receive approval from the Securities and Exchange Commission. Exchange Commission (SEC) for a spot Bitcoin ETF.
The decision to close the VanEck Bitcoin Strategy ETF came just a week after the US regulator approved 11 spot Bitcoin ETFs, all of which are now listed on US exchanges. With its spot Bitcoin ETF, VanEck competes with traditional financial giant BlackRock and several other crypto-specific companies. After 7 days of trading, inflows to BlackRock's Bitcoin ETF spot took the leading position.
$803 million was invested in spot Bitcoin ETFs in the first 3 days…
Good overview here of various dynamics, including ARKW's purchase of ARKB, GBTC exits, and issuers looking to launch other bitcoin-related ETFs.
Including the color of yours truly.
via @kgreifeld @emily_graffeo
pic.twitter.com/Zd3dHfpQ7W-Nate Geraci (@NateGeraci) January 17, 2024
Although the crypto and traditional financial services industries view the listing of spot Bitcoin ETFs in the United States as a historic event, it did not have a significant impact on Bitcoin prices, at least until here.
Additionally, despite the involvement of traditional giants like BlackRock, a few players remain skeptical about the crypto product. Vanguard, a mutual fund giant that also offers brokerage services, does not offer spot Bitcoin ETFs to its clients, while a few others are still evaluating them or offering them with conditions.
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