ETF applications for Bitcoin and Ethereum have increased after the SEC’s approvals for Bitcoin futures ETFs.
Most recently, investment firm Kelly Strategic Management, headed by Kevin Kelly, has filed with the SEC for an Ethereum futures ETF.
The Kelly Ethereum Ether Strategy ETF will be an actively managed fund that will invest in cash-settled ETH futures contracts traded on registered commodity exchanges.
Kelly Strategic Management is not the first company to file with the SEC for an ETH futures ETF. Previously, ProShares and VanEck have also applied for an ETH futures ETF. However, these two companies later withdrew their application.
The Chicago Mercantile Exchange (CME) is currently the only exchange where ETH futures are traded. The Kelly Ethereum Ether Strategy ETF will also house Ethereum futures contracts currently on the CME.
The Kelly ETF will not directly invest in Ethereum and will work like the Bitcoin futures ETFs approved in the past few weeks.
SEC chairman Gary Gensler has said in previous statements that they are closely interested in crypto products proposed under the Investment Company Act of 1940.
Following Gensler’s statements, the SEC has approved multiple Bitcoin futures ETFs, but has not yet approved an ETH futures ETF.
While the process for the Kelly Ethereum Ether Strategy ETF has begun, Bloomberg ETF analysts Eric Balchunas and James Seyffart said the SEC is unlikely to approve. Balchunas stated on his Twitter post that he currently sees the probability of SEC approval as about 20%.
*Not investment advice.