CoinShares Futures ETF Initiates Liquidation Process
The Options Clearing Corporation (OCC) has issued a notification confirming that the Bitcoin and Ethereum Futures ETF (BTF), issued by CoinShares, has formally entered liquidation. This marks the end of the fund's operational life, with all remaining assets to be converted to cash and distributed to shareholders.
Cash Settlement Mechanism and Payout Details
The liquidation centers on a cash settlement model. OCC data specifies a final distribution of $22.16255605 for each BTF share. This change directly impacts associated options contracts: the deliverable underlying for standard options contracts has been adjusted from fund share exposure to a fixed cash amount of $2216.26. While option tickers remain unchanged, their nature has shifted fundamentally—from tracking an active crypto futures fund to referencing a definitive cash settlement value.
Significant Shift in Options Expiry Schedule
A critical adjustment involves the options expiry timeline. All option series originally scheduled to expire after November 20, 2026, have had their expiry dates uniformly moved forward to November 20, 2024. Contracts expiring before this date remain unaffected.
Holders of American-style options retain their exercise rights, allowing them to exercise at any point up to expiration. Settlement following exercise occurs within one business day, with the payout calculated as the difference between the total exercise amount of the contract and the predetermined cash settlement value.
Liquidation Timeline and Final Steps
This liquidation follows an announced plan. CoinShares initially disclosed the closure of BTF and its Altcoins ETF (DIME) in September. The fund's final trading and redemption deadline was set for October 20, with the liquidation process commencing around October 21.
Remaining shareholders will receive a cash payment based on the fund's Net Asset Value (NAV) after deducting all fees and liabilities. As of the October 20 cutoff, BTF's assets were valued at approximately $15.96 million.
Fund Structure and Investment Focus
It is important to note that BTF was a futures-based ETF. Its portfolio primarily consisted of Bitcoin (BTC) and Ethereum (ETH) futures contracts, not direct ownership or custody of the underlying cryptocurrencies. This structure provided investors with exposure to the price movements of crypto futures, rather than direct asset ownership.