Denver-based funding agency Kelly Strategic Administration has filed for an exchange-traded fund (ETF) providing publicity to Ethereum (ETH) futures contracts.
The transfer comes simply three months after VanEck and ProShares abruptly withdrew their ETH futures ETF applications on the identical day in August.
In accordance with a Nov. 29 filing with the U.S. Securities and Change Fee (SEC), the Kelly Ethereum Ether Technique ETF will put money into cash-settled Ether futures contracts traded on the Chicago Mercantile Exchange (CME).
Bloomberg’s Senior ETF analyst Eric Balchunas famous on Twitter as we speak that Kelly’s Ether ETF could have a slim 20% probability of getting approval, as he questioned whether or not the “SEC is prepared for this new step.”
In Balchunas’ view, he thinks that SEC chairman Gary Gensler is “not mentally prepared” to approve something apart from a Bitcoin (BTC) futures ETF at this stage:
“Throughout the Bitcoin futures submitting course of in Aug, VanEck and ProShares filed for Ether ETFs too. SEC instructed them to withdraw them. It is now 3 months (and three profitable Bitcoin ETF futures ETF launches) later.”
Balchunas added that if the rumors have been true that the SEC instructed VanEck and ProShares to withdraw their respective Ether ETF filings as they supplied publicity to crypto belongings apart from BTC, Kelly’s ETF would have a 1% probability of approval.
Simply had fast chat with @JSeyff and our early, tough odds of approval of this ETF is about 20% except this @twobitidiot rumor is right, then we would obv go manner decrease like 1% (altho we nonetheless see a number of ETFs holding $ETHE) https://t.co/Ba4yRMsGS6
— Eric Balchunas (@EricBalchunas) November 29, 2021
Researcher Jason Lowery commented “I might be shocked if SEC permitted an ETH ETF b/c it tacitly indicators acceptance of ETH as not being an unregistered safety.”
The SEC has permitted a number of BTC futures ETFs within the latter half of 2021, however it seems that the regulatory physique is at the moment not willing to sign off on any kind of fund that provides publicity to crypto outdoors of CME BTC futures contracts.
Earlier this month, Anna Paglia the worldwide head of ETFs and listed methods at Invesco highlighted as such, as she defined that her agency’s resolution to pull its BTC Futures ETF was that the SEC solely approves Bitcoin ETFs with 100% publicity to Bitcoin futures.
Invesco’s ETF was aiming to supply a mixture of futures swaps, bodily Bitcoin, and personal funds within the Bitcoin trade.