Kryptoin, the Delaware-based crypto-focused asset manager, has filed with the United States Securities and Exchange Commission (SEC) to introduce another crypto exchange-traded fund – this time, it’s an Ethereum ETF. Previously the company submitted a proposal with the SEC for a Bitcoin ETF; however, it’s yet to be approved.
Kryptoin Pushes for Ethereum ETF
According to the proposal filed with the SEC, the Kryptoin Ethereum ETF Trust seeks to provide investors exposure to the underlying crypto-asset at a price that resonates with “the actual Ethereum market where investors can purchase and sell Ethereum.” To achieve this, the Ethereum ETF Trust will hold the actual Ether (ETH) coins, and it will “value its shares daily as determined by the CF Ether-Dollar US Settlement Price.”
Barring a forced liquidation, the Trust will not purchase or sell ETH directly, although the Trustee may sell ETH to pay certain expenses. Instead, when it sells or redeems its shares, it will do so in “in-kind” transactions in blocks of 100,000 shares.
Kryptoin wrote in the document.
The Ethereum ETF will reportedly trade on the Chicago Board Options Exchange (Cboe) upon approval by the SEC.
The Struggle with ETFs in US
The Ethereum ETF proposal from Kryptoin marks the company’s second ETF application with the regulator. In October 2019, Kryptoin filed with the SEC for a Bitcoin ETF, which is yet to be approved, despite amendments to the proposal. However, the company is not alone.
Several Bitcoin ETF proposals have been filed with the SEC, but none has gained the regulator’s approval.
Nonetheless, up to three Bitcoin ETFs have been approved in North America – precisely in Canada. In April, the first Bitcoin ETF, which was filed by Purpose Investments Funds, reached a milestone record of $1 billion in assets.
Although the US regulators are intensifying regulatory stance on crypto, many Bitcoiners are hopeful that the country might approve their first Bitcoin ETF this year.
