Summary
VanEck plans to close its Bitcoin Strategy ETF (XBTF) on January 30 due to various factors including performance, liquidity, assets under management, and investor interest. The fund, which launched in November 2021, has approximately $53 million in assets. The decision comes as interest in bitcoin futures ETFs wanes with the availability of funds holding BTC. Other firms, including Ark Invest, 21Shares, and Bitwise, continue to offer bitcoin futures ETFs, while Hashdex is in the process of converting its bitcoin futures ETF to one that offers spot BTC exposure.
Key Points
1. VanEck plans to close its Bitcoin Strategy ETF (XBTF) on January 30, 2022, due to factors such as performance, liquidity, assets under management, investor interest, and operational considerations. XBTF currently has approximately $53 million in assets under management.
2. The ProShares Bitcoin Strategy ETF (BITO), which launched before XBTF, has experienced significant growth, with assets reaching over $2 billion. However, BITO has recently seen net outflows of approximately $280 million, while new spot funds by BlackRock and Fidelity have garnered a combined $1.2 billion in net inflows.
3. While VanEck is closing its bitcoin futures ETF, other companies such as Ark Invest, 21Shares, Bitwise, and Valkyrie (which converted its bitcoin futures ETF into one holding ether futures contracts) continue to offer similar products. Some industry experts believe that as funds holding BTC become available, interest in bitcoin futures ETFs may dwindle.