Sat, September 07, 2024 at 19:15

• 

  Kang-hoon

  • Hello, Annie.

  • Today, I have some significant news regarding VanEck's decision to close and liquidate their Ethereum Strategy exchange-traded fund, known as EFUT.

  • 
• Annie

  • Oh, really?

  • Why are they closing it?🤔

  
• 

  Kang-hoon

  • VanEck has cited several reasons, including the fund's performance, liquidity, and investor interest.

  • After careful consideration, they decided it was best to liquidate the fund.

• Annie

  • I see.

  • When is this happening?

  
• ADward

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• 

  Kang-hoon

  • The Board of Trustees approved the liquidation on September 5, 2024.

  • Shareholders have until September 16, 2024, to dispose of their shares before the fund is taken off the exchange.

• Annie

  • So, what happens if someone still holds shares after September 16th?

  
• 

  Kang-hoon

  • If shareholders still hold shares by the time of liquidation, estimated to be on September 23, 2024, they will receive a cash payment equivalent to the net asset value of their shares.

• Annie

  • And how will they receive this payment?

  
• 

  Kang-hoon

  • The liquidation proceeds will be deposited into their brokerage accounts.

  • The distributions are expected to be sent out simultaneously.

• Annie

  • What about taxes?

  • Will there be any tax implications?

  
• 

  Kang-hoon

  • Yes, from a tax perspective, shareholders can realize a capital gain or loss based on the amount they received from the liquidation relative to their initial investment.

• Annie

  • Will they get any other payments?

  
• 

  Kang-hoon

  • Shareholders may also receive a final payment of any undistributed net income and capital gains not paid out by the fund before liquidation.

  • VanEck will disclose such tax information in the year-end tax statement.

• Annie

  • Why did VanEck decide to do this now?

  
• 

  Kang-hoon

  • VanEck's move is part of their routine assessment of ETF products to meet market needs and business objectives.

  • They aim to continuously align their offerings with market demands.

• Annie

  • It sounds like a strategic decision.

  • Do you think this will impact the market?

  
• 

  Kang-hoon

  • Indeed, it is a strategic decision.

  • However, I believe this news is more of a negative development, or 악재, for the market.

  • 

  • It could signal a lack of confidence in Ethereum futures, potentially affecting investor sentiment.

• Annie

  • That's concerning.😟 Thank you for the detailed explanation, Kang-hoon.

  
• 

  Kang-hoon

  • You're welcome, Annie.

  • Always here to provide clarity on these matters.

  • Upon comprehensive consideration, this news is perceived as a 😱Bearish.