Asset Manager with $89.5 Billion in Assets to Close Bitcoin Futures ETF Shortly After Spot ETFs Get Approved

$90 Billion Asset Manager to Close Bitcoin Futures ETF Following Spot ETF Approvals

A prominent financial services company with assets under management of nearly $90 billion has announced the closure of its Bitcoin futures exchange-traded fund (ETF) shortly after the US Securities and Exchange Commission (SEC) approved several spot market BTC ETFs.

New York-based investment management firm VanEck revealed in a press release that it intends to liquidate the VanEck Bitcoin Strategy ETF, an exchange-traded product listed on the Chicago Board Options Exchange (CBOE).

The decision to close the futures ETF is based on factors such as performance, liquidity, assets under management, and investor interest. VanEck plans to shut down the fund on January 30th and complete the liquidation on February 6th. Investors who continue to hold shares will receive a proportional cash amount in their accounts.

Spot Market BTC ETFs Gain Approval

Last week, the SEC granted approval for spot market BTC ETFs, marking a significant milestone in bridging the gap between the digital assets industry and Wall Street. Notable firms like VanEck, BlackRock, Fidelity, ARK Invest, and Franklin Templeton had their applications approved.

Spot market BTC ETFs enable investors to gain exposure to Bitcoin without directly purchasing the digital asset itself.

VanEck’s Promise and Current Bitcoin Price

Earlier this year, VanEck committed to donating some of its profits to support Bitcoin Core developers for at least a decade if its application for a spot BTC ETF was approved by regulators.

As of now, Bitcoin is trading at $42,267, representing a 2.1% increase over the past 24 hours.

Hot Take: Asset Manager’s Move Reflects Shifting Market Dynamics

The closure of VanEck’s Bitcoin futures ETF shortly after the approval of spot market BTC ETFs demonstrates the evolving dynamics in the cryptocurrency market. With more traditional financial institutions embracing Bitcoin and seeking exposure to it, the demand for futures-based products may have diminished. The focus has shifted towards spot market ETFs, which offer a simpler and more direct way for investors to gain exposure to Bitcoin. This move by VanEck highlights the growing acceptance and mainstream adoption of cryptocurrencies, as well as the increasing importance of regulatory decisions in shaping the industry.