New York-based investment firm VanEck has announced the liquidation of its bitcoin futures exchange-traded fund (ETF) by the end of this month.

The move comes in anticipation of a shift in investor preference towards recently approved funds that directly invest in cryptocurrency.

VanEck revealed that shareholders have until January 30 to sell their shares in the VanEck Bitcoin Strategy ETF (XBTF).

Following the market closure on that day, the ETF will be delisted.

Bitcoin ETF Trends

This decision follows the recent launch of a spot bitcoin ETF alongside other asset managers.

The Securities and Exchange Commission (SEC) granted approval for spot bitcoin funds for the first time on January 10.

The SEC initially approved a bitcoin futures ETF in late 2021, having previously rejected applications for ETFs directly investing in bitcoin, citing concerns about surveillance capabilities.

The tide began to turn in August when a federal judge deemed the SEC's reasons for denying Grayscale Investments' spot bitcoin ETF application as "arbitrary and capricious."

Investors who opt not to sell XBTF shares before delisting will receive a cash distribution on the liquidation date, estimated to occur around February 6.

Sunsetting Future-Based ETFs

The VanEck Bitcoin Strategy ETF, scheduled for liquidation at the end of January, has exhibited underperformance compared to bitcoin futures in recent months.

As of December 31, the fund's total net assets were $54.4 million, with an average daily trading volume of approximately 37,000 shares over the past 30 days, according to FactSet.

Over the past three months, XBTF has seen a 40.5% rally, whereas bitcoin futures have climbed by 50.1%, and the S&P 500 index has gained 8.1% during the same period.