On September 6, VanEck announced that its Ethereum Futures Exchange-Traded Fund (ETF) will be closed and liquidated, with the final trading day set for September 16, 2024, on the Chicago Board Options Exchange (CBOE).
This decision comes after an internal review of the fund’s performance, liquidity, and investor interest.
**Details for Investors Prior to Closure**
The ETF will continue to trade until the market closes on September 16, after which it will be delisted. Shareholders holding shares as of the liquidation date, expected around September 23, will receive a cash payout based on the net asset value (NAV) of their shares, which will be deposited into their brokerage accounts.
Before the closure, the fund may also issue a final distribution of any remaining income and capital gains.
Investors should be aware of potential tax consequences from the liquidation, such as capital gains or losses, which will be reflected in their year-end tax reports. VanEck will provide the final tax details with year-end documentation.
**VanEck Considers Solana ETFs Following Key Precedent**
While winding down its Ethereum Futures ETF, VanEck is also exploring Solana ETF opportunities. Matthew Sigel, Head of Digital Assets Research at VanEck, referred to a 2018 fraud case involving My Big Coin, which set a precedent for regulatory classification.
In the case, the Commodity Futures Trading Commission (CFTC) charged the founders of My Big Coin with fraud, arguing that the token was misrepresented in terms of its value and utility. The court ruled that $MBC was a “virtual currency” akin to Bitcoin and fell under the CFTC’s definition of a commodity.
Sigel noted that the judge’s comparison of $MBC to natural gas implied that an asset could be considered a commodity even without an established futures market, suggesting this reasoning could apply to Solana for regulatory classification.
