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Kelly Strategic Management files for Ethereum futures ETF

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Kelly Strategic Management, a Denver-based investment firm, has filed for an exchange-traded fund (ETF) that will invest in Ethereum futures contracts.

Just three months ago, VanEck and ProShares both unexpectedly withdrew their ETH futures ETF applications on the same day.

According to a filing with the US Securities and Exchange Commission (SEC) on November 29, the Kelly Ethereum Ether Strategy ETF would invest in cash-settled Ethereum futures contracts offered on the Chicago Mercantile Exchange (CME).

According to Bloomberg’s Senior ETF analyst Eric Balchunas, Kelly’s Ether ETF has a 20% chance of approval, and he questioned if the “SEC is ready for this next step” on Twitter today.

Balchunas feels that SEC chairman Gary Gensler is “not mentally ready” to approve anything other than a Bitcoin (BTC) futures ETF at this time.

“VanEck and ProShares filed for Ether ETFs during the Bitcoin futures filing process in August. They were advised by the Securities and Exchange Commission (SEC) to stop using them. It’s been three months already (with three successful Bitcoin ETF futures ETF launches).”

Kelly’s ETF would have a 1% chance of being approved. If the reports that the SEC forced VanEck and ProShares to withdraw their respective Ether ETF submissions. Because they provided exposure to crypto-assets other than BTC were accurate.

The SEC is unwilling to approve any crypto fund that is not based on CME BTC futures contracts

“It would be astonishing if the SEC authorised an ETH ETF. Since it implicitly communicates approval of ETH as not being an unregistered investment”, researcher Jason Lowery said.

The Securities and Exchange Commission (SEC) authorised various BTC futures ETFs in the second half of 2021. But it appears that the agency is now unwilling to approve any sort of crypto fund. That is not based on CME BTC futures contracts.

The SEC only authorises Bitcoin ETFs with 100% exposure to Bitcoin futures, according to Anna Paglia, global head of ETFs and indexed strategies at Invesco. Who explained why her business decided to drop its BTC Futures ETF earlier this month.

Invesco’s ETF aimed to deliver a Bitcoin industry mix of futures swaps, actual Bitcoin, and private funds.

Invesco reveals reasons for dropping Bitcoin futures ETF

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