Kryptoin has applied to register an Ethereum-ETF in the US
Kryptoin Investment Advisors has submitted an application to the US Securities and Exchange Commission (SEC) to launch an Ethereum-ETF. The entity is designed to invest directly in digital assets.
According to the application, the Kryptoin Ethereum ETF Trust will provide customers with access to an instrument that "reflects the actual state of the market" for the second most capitalised cryptocurrency. Its value will be calculated based on the CF Ether-Dollar US Settlement Price reference index from the Chicago Mercantile Exchange.
If approved, the product will be listed on the Chicago Board Options Exchange. The fund's custodian will be Gemini Trust Company, LLC.
Unlike other companies that have been filing under the provisions of the Investment Company Act 1940 in recent weeks, Kryptoin is guided by the document of the previous decade.
"The Trust is not registered as an investment company under the 1940 Act, [Kryptoin] does not feel obliged to register a structure under it. Consequently, shareholders will not receive the regulatory protection afforded to investors in investment companies," the document said.
The company's Ethereum-ETF would operate in the same way as its proposed bitcoin-based exchange-traded fund, which it applied to register back in 2019. Kryptoin renewed its form in April 2021. In June, the SEC extended its review period.
Earlier, the head of the Commission, Gary Gensler, said that the 1940 Act provided stronger investor protections than the 1930 act. He stressed that a fund meeting the regulator's requirements could be approved.
At least four companies - Invesco, ProShares, VanEck and Valkyrie Investments - have since applied to register ETFs based on Gensler's recommendations. Stephen McClurg, chief investment officer of the latter, stressed that Gensler's comment suggests that a "pure spot" ETF will not be approved any time soon.
Recall that in May, financial giant WisdomTree, with $70bn in assets under management, applied for registration of an Ethereum-ETF.