Kelly Strategic Management Document for Ethereum Futures ETF
The Denver-based investment company Kelly Strategic Management has applied for an exchange-traded fund (ETF) to provide exposure to Ethereum (Ethereum) Futures contracts.
This move comes three months after VanEck and ProShares suddenly withdrew their ETH futures ETF application On the same day in August.
Bloomberg’s senior ETF analyst Eric Balchunas pointed out on Twitter today that the probability of Kelly’s Ethereum ETF being approved may be only 20% because he questioned whether “the US Securities and Exchange Commission is ready to take this new step”.
According to Balciunas, he believes that the chairman of the US Securities and Exchange Commission Gary Gensler is “not mentally prepared” to approve anything other than Bitcoin (Bitcoin) Futures ETF at this stage:
“During the Bitcoin futures application process in August, VanEck and ProShares also applied for an Ethereum ETF. The US Securities and Exchange Commission told them to withdraw them. It is now 3 months later (and 3 successful Bitcoin ETF futures ETFs were launched). “
Balchunas added that if there are rumors that the SEC requires VanEck and ProShares to withdraw their respective Ether ETF applications because they provide exposure to crypto assets other than BTC, Kelly’s ETF will have a 1% chance of being approved.
Just now with @JSeyff Our early approval of the ETF has a probability of approximately 20%, unless @twobitidiot The rumors are correct, then we will obviously fall by 1% (although we still see multiple ETF holdings $ETHE) https://t.co/Ba4yRMsGS6
— Eric Balchunas (@EricBalchunas) November 29, 2021
Researcher Jason Lowry Comment “I would be surprised if the US Securities and Exchange Commission approves the ETH ETF b/c. It defaults to the acceptance that ETH is not an unregistered security.”
The SEC has approved multiple BTC futures ETFs in the second half of 2021, but the regulator currently seems to be Unwilling to sign Provide risk exposure outside of cryptocurrency on any type of fund CME BTC futures contract.
Earlier this month, Anna Paglia, Global Head of ETF and Index Strategy at Invesco, emphasized this point. She explained that her company decided Withdraw its BTC futures ETF It is the US Securities and Exchange Commission that only approved Bitcoin ETFs with 100% exposure to Bitcoin futures.
Invesco’s ETF aims to provide a combination of futures swaps, physical bitcoin and private equity funds in the bitcoin industry.