VanEck has recently announced its decision to discontinue the ethereum Strategy ETF, with the final trading day scheduled for Sep. 16, 2024. This move comes after a comprehensive review of various factors, including fund performance, liquidity, investor interest, and operational considerations. Shareholders holding the fund's shares on the liquidation date, expected around Sep. 23, will receive a cash distribution based on the net asset value of their shares.
The fund will continue to be available for trading on the Chicago Board Options Exchange (CBOE) until the market closes on Sep. 16, 2024. After this date, the ETF shares will be delisted, and further transactions will not be possible. Shareholders are advised to consider potential tax implications, including capital gains or losses, which will be reflected in reporting. Any remaining income and capital gains may be distributed before the fund's closure.
Solana-etf-approval">A 2018 Case Key to Solana ETF Approval
Matthew Sigel, VanEck's Head of Digital Assets Research, recently highlighted a 2018 fraud case involving My Big coin as a potential precedent for approving Solana ETFs. In the case, the Commodities Futures Trading Commission (CFTC) charged the company's founders with fraud, alleging that they misled customers about the token's value and utility.
The judge in the case classified $MBC as a "virtual currency," similar to bitcoin, falling under the CFTC's definition of a commodity. Sigel emphasized that the judge's reasoning, equating $MBC to natural gas, implied that an asset could be deemed a commodity even without an existing futures market. This perspective could potentially aid Solana in obtaining the necessary regulatory classification.
