American investment management firm – VanEck has announced that it will liquidate and close Bitcoin (BTC) strategy ETFs. The announcement comes days after the U.S. Securities and Exchanges Commission (SEC) approved its spot Bitcoin ETF application. Notably, both the exchange-traded funds are different from each other.
The spot Bitcoin ETF tracks the price of Bitcoin in real time, meaning that the product provider will purchase and own BTCs. Meanwhile, VanEck’s Bitcoin Strategy ETF is linked to Bitcoin futures contracts and does not directly invest in BTCs.
The company said that the decision to liquidate the ETF was influenced by performance, liquidity asset under management, investors interest, and operational considerations among other factors. Moreover, the fund will officially be delisted at the end of this month, January 30, 2024, giving investors about two weeks time to sell their shares.
If the shares remain unsold, the company said it will distribute cash proportionate to “the amount of the net asset value of their shares” after the liquidation of the ETF. The liquidation date is set to happen around February 6, 2024.
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