BTC-Newswire

VanEck closes its Bitcoin Strategy ETF, citing lack of investor interest

Press Releases Crypto News CryptoBriefing VanEck closes its Bitcoin Strategy ETF, citing lack of investor interest

Asset manager VanEck announced today that its board of trustees had approved the liquidation and dissolution of its Bitcoin Strategy ETF on the Cboe BZX Exchange, barely two years after its launch.

The VanEck Bitcoin Strategy ETF (XBTF) provided exposure to bitcoin futures contracts instead of direct investment in the cryptocurrency. In an official statement issued today, VanEck said the decision came after evaluating several factors, including the fund’s performance, liquidity, assets under management, and investor interest.

Notably, the decision comes exactly a week after the asset manager received approval from the US Securities and Exchange Commission (SEC) to list a spot Bitcoin exchange-traded fund (ETF).

VanEck said XBTF shareholders can continue selling their shares on the Cboe exchange until January 30, 2024.

“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 liquidating distribution of cash in the cash portion of their brokerage accounts equal to the amount of the net asset value of their shares,” the firm stated.

The shares will then be delisted with liquidation, which is expected to be completed by February 6, 2024. This means that proceeds from the liquidation will be scheduled and sent to shareholders by the aforementioned date.

Shareholders remaining invested at the time of liquidation will receive a cash distribution equivalent to their shares’ net asset value. VanEck advised shareholders to consult tax professionals, as they will generally owe capital gains tax on the difference between the liquidation proceeds and their original investment cost basis.

Launched in November 2021, the Bitcoin Strategy ETF may have failed to ga

Go to Source to See Full Article
Author: Vince Dioquino

Did you like this?
Tip BTC Newswire with Cryptocurrency