Kelly Strategic submits filing for Ethereum futures ETF
US investment management firm Kelly Strategic Management is looking to drop US’s first Ethereum-based ETF as Bitcoin futures ETFs continue to dominate the market. The firm has applied for an Ethereum futures ETF to the SEC on Monday.
The Kelly Ethereum Ether Strategy ETF (EX) will manage Ethereum cash-settled futures contracts traded on CME and will not invest in the underlying asset. Currently, there are 8,000 Ether contracts for an applicable month on the CME, with each contract amounting to 50 Ether.
“The Fund will be prohibited from purchasing Ether futures in excess of these limits. If the Fund is prohibited by applicable position limits from buying additional front month Ether futures contracts, the Fund will invest, in the discretion of the Sub-Adviser, in longer dated Ether futures contracts and/or additional Cash and Fixed Income Investments…,” the company noted in the application.
The news comes months after both ProShares and VanEck withdrew similar filings with the US SEC in August. At that time, it was reported that the SEC may have discouraged the companies from moving forward with the filing.
Bloomberg’s Senior ETF analyst Eric Balchunas pointed out that Kelly’s Ether ETF may have a 20% chance of getting approval if the “SEC is ready for this new step.” However, he noted that if the rumors of SEC asking the companies to withdraw applications for Ether ETFs were true, then the chance of SEC approving Kelly’s ETF lower to less than 1%.
Background: During the bitcoin futures filing process in Aug, VanEck and ProShares filed for ether ETFs too. SEC told them to withdraw them. It's now 3 months (and 3 successful bitcoin etf futures etf launches) later. Ether futures also much higher. https://t.co/RG881IIubm
— Eric Balchunas (@EricBalchunas) November 29, 2021
The post Kelly Strategic submits filing for Ethereum futures ETF appeared first on Our Bitcoin News.
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