Finance giant VanEck, which has approximately $90 billion in assets under management, decided to close its own futures ETF, following the approval of the US Securities and Exchange Commission (SEC) for the Bitcoin (BTC) futures exchange traded fund (ETF).
New York-based investment management company VanEck announced in a press release that it plans to close and liquidate the VanEck Bitcoin Strategy ETF, which is listed on the Chicago Stock Options Exchange (CBOE).
“VanEck, which sponsors VanEck ETFs, continuously monitors and evaluates the ETF portfolio, considering a number of factors such as performance, liquidity, assets under management and investor interest. “The decision to liquidate the fund was taken as a result of analysis of these factors and other operational issues.”
VanEck closes futures Bitcoin ETF: investors will be paid in cash
VanEck stated that the futures ETF will be closed on January 30 and liquidated on February 6. Investors who hold company shares will receive a proportionate amount of cash in their accounts.
After refusing for many years, the SEC made the expected decision last week, approving the first spot Bitcoin ETFs and establishing the first official connection between the digital assets industry and Wall Street. Among the leading companies that received approval were VanEck, BlackRock, Fidelity, ARK Invest and Franklin Templeton.
Spot Bitcoin ETFs allow investors to invest in the crypto king without purchasing the digital asset directly.
Earlier this year, VanEck pledged to donate a portion of its profits to support Bitcoin Core developers for at least 10 years if the SEC approves its spot Bitcoin ETF application.
Bitcoin is trading at $42,267 at the time of writing, increasing by 2.1 percent in the last 24 hours.
