Although the proposal of Kryptoin constitutes an interesting turnaround, it is not clear whether for the SEC a ETF based on Ethereum poses the same stated risks as for a fund linked to Bitcoin
Amid heightened interest in the career of the first US-listed fund to be linked to Bitcoin, the signature Kryptoin Investment Advisors decided to take a different path, and presented to the Securities and Exchange Commission (SEC) your own request to launch a ETF based on Ethereum.
Kryptoin submit application for Ethereum ETF
This is revealed in the application filed with the SEC today, where it is reflected that Kryptoin intends to create a publicly traded product in which investors have greater exposure to Ethereum, at a price that reflects current market values, where investors can trade as if they were buying or selling the digital currency.
In relation to this ETF, the team of Kryptoin clarified that he will not buy or sell ETH directly, although the administrator can sell Ethereum to pay for certain expenses. Regarding the sale or exchange of shares, it will be done in block transactions, which will contain 100,000 shares available for commercial operations.
While this may represent a different approach at a time when there are high expectations for a Bitcoin ETF, Kryptoin also previously filed with the SEC its application to create one of this type in 2019, although it did not receive approval from the regulatory body to reason for the same reasons for which it has rejected other proposals.
The race for the first Bitcoin ETF keep going
Even though the race for the first ETF Bitcoin In the US, it continues, analysts and enthusiasts are less and less optimistic about seeing finally approved any of the applications presented, at least for this year.
The SEC currently postponed the verdict on the applications for VanEck Y WisdomTree, What for many is a bad prognosis about the final result, since they anticipate that the regulatory body is only delaying the times with respect to a possible rejection. So far, according to the Commission, concerns about volatility and possible manipulation of the digital currency market remain.
Meanwhile, entities like Galaxy Digital, GlobalX, Fidelity and Ark Investment are awaiting a first verdict from the SEC. It is also expected that Grayscale at some point he joins this career, since he is preparing a work team to analyze the pertinent considerations and present his respective application.
However, with respect to this application submitted for a Ethereum ETF, It remains to be seen if this change in focus leads to a positive response from the SEC as it is an asset with a lower cost per unit.
Source: CoinDesk, TheBlockCrypto, SEC
Version by Angel Di Matteo / DailyBitcoin
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