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Kelly Strategic Management Files for an Ether Futures ETF

source-logo  cryptoknowmics.com 30 November 2021 07:30, UTC

After Kelly Strategic Management has filed for an Ether futures ETF, analysts have been asked whether SEC chairman Gary Gensler is "mentally prepared" to approve anything other than a BTC futures product. VanEck and ProShares abruptly their ETH futures ETF proposals on the same day in August, just three months ago.

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

Kelly Ether Futures ETF has a Slim 20% Chance of Getting Approval

Kelly's Ether ETF may have a slim 20% chance of Approval, according to Bloomberg's Senior ETF analyst Eric Balchunas, who questioned whether the "SEC is ready for this new step" on Twitter today.

SEC Chairman Gary Gensler, in Balchunas' opinion, is "not mentally ready" to authorize anything other than a Bitcoin (BTC) futures ETF at this time:

"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 three months (and three successful Bitcoin ETF futures ETF launches) later."

If the SEC's allegations forced VanEck and ProShares to withdraw their respective Ether ETF files because they provided exposure to crypto-assets other than BTC are true, Kelly's ETF would have a 1% chance of Approval, according to Balchunas.

SEC Had Approved Multiple BTC Features

The Securities and Exchange Commission (SEC) approved various BTC futures ETFs in the second half of 2021. Still, it appears that the agency is currently unwilling to support any sort of crypto fund that is not based on CME BTC futures contracts.

ACCORDING TO ANNA PAGLIA, the SEC only authorizes Bitcoin ETFs with 100 percent exposure to Bitcoin futures, the 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.

cryptoknowmics.com