n recent news, VanEck has stated that it will no longer proceed with the ethereum futures ETF EFUT, the main reason is due to a lack of liquidity, poor performance, and low investor interest.
Switch to Spot Ethereum ETP
However, VanEck is proceeding with its Ethereum spot ETF that was recently approved by the SEC, and they have stated that this was the reason to abandon the Ethereum futures ETF as they would like to put all of their focus on the Spot ETF.
Ethereum Vs Bitcoin ETF
Many are criticizing the bad performance of the Ethereum ETF compared to bItcoin. However, JPMorgan analysts highlighted the fact that the Ethereum ETF performance in terms of inflows is quite similar to that of Bitcoin when comparing the market cap of both assets. Since Bitcoin is a lot higher in market cap it has attracted more inflows. This showcases that the gap between both ETFs is not as significant as it is shown.
Ethereum ETF Shift: VanEck Prioritizes Spot
The decision to abandon the ETH futures ETF is not to be taken as a negative thing. In fact VanEck see it as a strategic move in order for them to focus even more on the Spot Ethereum ETF, which is really more beneficial for the crypto market than a futures ETF.
