Kelly Strategic Management Applied For Ethereum ETF
Denver-based investment firm Kelly Strategic Management has applied to create an exchange-traded fund (ETF) offering access to Ethereum (ETH) futures contracts.
The Kelly Ethereum Ether Strategy ETF will invest in cash-settled ETH futures contracts, according to a filing on November 29 with the US Securities and Exchange Commission (SEC). These futures contracts will be listed on the Chicago Mercantile Exchange (CME).
Bloomberg Senior ETF Analyst Eric Balchunas believes that Kelly Strategic Management has only a 20% chance of getting SEC approval to create an Ethereum ETF, as the Commission may not be ready to approve ETFs other than Bitcoin.
The SEC approved several BTC futures ETFs in the second half of 2021, but it appears the regulator is currently reluctant to sign any type of fund that offers cryptocurrency access outside CME BTC futures contracts.
At the Toronto Stock Exchange, Asset Management Company Purpose Investments has unveiled a Bitcoin ETF and Ethereum ETF that will trade under the tickers BTCC.J and ETHH.J. The main feature of these ETFs is that these funds are backed and settled with cryptocurrency, not futures, as the underlying asset.