VanEck, the mutual fund and ETF provider plans to delist its VanEck Bitcoin (BTC) Strategy ETF from the Chicago Board Options Exchange (CBOE) after January 30. The decision comes as the ETF, trading as XBTF, faces strong competition from the ProShares Bitcoin Strategy ETF (BITO).
Despite XBTF having a daily trading volume of $1.4 million, the industry trend of favoring “winner take most” puts it at a disadvantage against the earlier-launched BITO.
VanEck’s Board of Trustees approved the liquidation of XBTF based on factors like performance and investor interest.
To address the challenge posed by lower volumes, VanEck commits to providing investors with cash distributions equal to the net asset value of their shares post-liquidation, scheduled for February 6.
Meanwhile, VanEck’s Bitcoin Trust (HODL), a spot ETF, has garnered $51 million in volume and $17.9 million in flows over its first three days, following recent approval. Notably, VanEck pledges to donate 5% of the ETF product’s profits to Bitcoin core developers.
Image Credit: Shutterstock
Keep in mind that we may receive commissions when you click our links and make purchases. However, this does not impact our reviews and comparisons. We try our best to keep things fair and balanced, in order to help you make the best choice for you.
