VanEck Announces Closure and Liquidation of Bitcoin Strategy ETF

VanEck, a prominent player in the world of exchange-traded funds (ETFs), has revealed its decision to close and liquidate the VanEck Bitcoin Strategy ETF (Ticker: XBTF) in a move that reflects the dynamic nature of the ETF landscape.

The decision to liquidate the fund was formally approved by the Board of Trustees of VanEck ETF Trust on January 16, 2023. The ETF, which currently trades on the CBOE exchange, has been scrutinized based on various factors such as performance, liquidity, assets under management, and investor interest, among other considerations. VanEck, as the sponsor of the ETFs, emphasizes the importance of continuous monitoring and evaluation to ensure the optimal performance and alignment with market demands.

Shareholders of the VanEck Bitcoin Strategy ETF have until market close on January 30, 2024, to sell their shares on the listing exchange. Transaction fees, as applicable from their respective broker-dealers, may be incurred during this process. Post this date, the ETF's shares will cease trading on the listing exchange and will subsequently be de-listed.

For shareholders retaining their positions until the liquidation date, anticipated to be on or around February 6, 2024, VanEck promises a liquidating distribution of cash. This distribution will be equivalent to the net asset value of the held shares and will be deposited into the cash portion of shareholders' brokerage accounts. The scheduled date for sending the proceeds from the liquidation to shareholders is also February 6, 2024.

It's essential for shareholders to be aware that, for tax purposes, the liquidation process will generally result in the recognition of a capital gain or loss. This will be calculated based on the amount received for their shares compared to the adjusted basis in those shares.

Furthermore, to streamline the liquidation process, the VanEck Bitcoin Strategy ETF will stop accepting creation orders from Authorized Participants on January 30, 2024.

The decision to close and liquidate an ETF is not uncommon in the industry, as sponsors regularly assess the performance and viability of their funds. VanEck's move underscores the company's commitment to ensuring that its ETF offerings align with market dynamics and investor interests.

Resources:

VanEck Press Release