Denver-based investment firm Kelly Strategic Management has applied to create an exchange-traded fund (ETF) that offers access to Ethereum (ETH) futures.
The move came just three months after VanEck and ProShares withdrew ETF futures orders for ETH contracts on the same day in August.
According to a November 29 report by the US Securities and Exchange Commission (SEC), the Kelly Ethereum Ether Strategy ETF will invest in cash-settled Ether futures, which are traded on the Chicago Mercantile Exchange (CME).
Eric Balchonas, chief analyst at Bloomberg ETF, tweeted today that Kelly’s Ether ETF may have a small 20% chance of being approved when asked “is the SEC ready for this next move.”
According to Balchuny, he believes that SEC Chairman Gary Gensler is “mentally not ready” to agree to anything other than a Bitcoin Futures ETF (BTC) at this time:
“During the Bitcoin futures deposit process in August, VanEck and ProShares also applied for Ether ETFs. The Securities and Exchange Commission asked them to withdraw them. It took 3 months (and 3 Bitcoin futures ETFs were launched) later. ”
Balchunas added that if the rumors that the SEC had notified VanEck and ProShares were true, they withdrew their Ether ETF deposits because they offered access to non-BTC cryptocurrencies, Kelly’s ETF would have a 1% chance of approval.
Researcher Jason Lowry commented, “I would be surprised if the SEC approves the ETH ETF b / c, which means ETH is not accepted as an unlisted security.”
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The Securities and Exchange Commission (SEC) approved several BTC futures ETFs in the second half of 2021, but the regulator is currently unwilling to sign any fund that offers access to cryptocurrencies outside of CME BTC contracts. futures.
Earlier this month, Anna Paglia, global head of ETFs and indexed strategies at Invesco, highlighted this, explaining that the company’s decision to withdraw ETFs on BTC futures is that the Securities and Exchange Commission (SEC) only approves Bitcoin ETFs with 100% participation. on bitcoin futures.
Invesco ETFs offer a mix of futures swaps, physical bitcoins, and private equity funds in the bitcoin industry.