VanEck to Close and Liquidate Bitcoin Futures ETF “XBTF”
Asset management firm VanEck has announced that it will close and liquidate its Bitcoin futures ETF “XBTF,” less than two years after its launch. The decision comes after the company obtained approval from the United States Securities and Exchange Commission to list shares of its spot BTC ETF. VanEck cited factors such as performance and investor interest in its decision to liquidate XBTF. Shareholders have until January 30 to sell their shares, after which XBTF will be delisted by February 6. Those who choose not to sell will receive a cash distribution on February 6.
Interest in Bitcoin ETFs Expected to Spike
Kyle DaCruz, VanEck’s Director of Digital Assets Product, believes that interest in crypto products and Bitcoin ETFs will increase following the SEC’s approval of Bitcoin ETFs. DaCruz stated that the market’s response to Bitcoin had been subdued due to issues such as fraud, but now that regulated products are available, interest is likely to spike. The VanEck Bitcoin Trust (HODL) was among the 10 spot Bitcoin ETFs that recently debuted with an initial seed capital of $72.5 million.
Hot Take: VanEck’s Decision Reflects Shifting Market Dynamics
VanEck’s decision to close and liquidate its Bitcoin futures ETF highlights the changing landscape of the crypto market. The approval of Bitcoin ETFs by the SEC has sparked renewed interest and demand for crypto products. As more regulated options become available, investors are expected to flock to these offerings. VanEck’s move may also be influenced by factors such as performance and investor sentiment. It remains to be seen how this decision will impact the overall adoption and perception of crypto ETFs in the market.
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