Yahya 
While spot cryptocurrency ETFs currently dominate market inflows, VanEck, the international asset management business, has discontinued operating its futures-based Ether exchange-traded fund (ETF) alleging insufficient demand. The company said on September 6 that performance, liquidity, and investor interest drove its decision to close the fund.
On September 16 the VanEck Ethereum Strategy ETF (EFUT) will halt trading; fund assets will be liquidated and sent to investors by September 23. This phase marks a strategic shift in emphasis as spot bitcoin ETFs have recently attracted tremendous popularity.
Not too different, The ETF Store President Nate Geraci spoke about the expansion. Spot coins, he has argued before, would render ETFs based on futures useless. On X he said, “VanEck most definitely saw EFUT as a marketing cost.”
EFUT as of September 6 reveals beginning in 2023 assets under management (AUM) of roughly $21 million. Conversely, started in June the about $55 million in AUM VanEck’s spot Ether ETF ( ETHV). Spot ETFs, with their total AUM of over $6.5 billion, have outperformed products based on futures; their funds value less than $170 million.
Future-based ETFs could underperform their spot equivalents as rolling over contracts results in expenses and futures expire on frequent basis. This difference has attracted spot ETFs more to investors seeking quick access to assets like Ether or Bitcoin.
Spot Ether ETFs were approved in July this year by the Securities and Exchange Commission, which was instrumental in these products’ growth. As of now, Grayscale’s Ethereum Trust (ETHE) is still the largest spot Ether ETF with total AUM of around $4.2 billion. The prevalence of the spot cryptocurrency ETFs also underlines the changing configuration of the Crypto investment market.
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