Kelly ETFs files for Ether futures ETF


Kelly ETFs, an issuer of exchange-traded funds (ETFs), has filed for a U.S. Ether futures ETF. 

The firm filed a Form N-1A dated today with the Securities and Exchange Commission (SEC). The N1-A is used by investment companies seeking to form open-end mutual funds, and registers a product under both the Securities Act of 1933 and the Investment Company Act of 1940.

SEC Chair Gary Gensler previously said he was interested in taking a closer look at proposed crypto products under the '40 Act, especially those holding futures traded on the Chicago Mercantile Exchange. Since those comments, the SEC has approved multiple bitcoin futures ETFs, though an Ether-based product has yet to get the green light. 

The Kelly Ethereum Ether Strategy ETF would hold Ether futures contracts that trade on federally regulated exchanges. For now, that means only CME Ether futures. The fund won't enable direct exposure to ETH price, and is structured similarly to the approved bitcoin futures ETFs. Currently, it's the only Ether futures ETF before the SEC.

The filing will take effect 75 days from today pending no SEC action. Approval seems unlikely, according to Bloomberg ETF analysts Eric Balchunas and James Seyffart. Balchunas tweeted that the two put the rough odds of approval at about 20% for now. 

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May 5, 2022, 3:17PM UTC