Kryptoin files to register Ethereum ETF in the United States

Kryptoin Investment Advisors filed with the U.S. Securities and Exchange Commission (SEC) an application to launch Ethereum-ETF. The structure is designed for direct investments in digital assets.

According to the filing, Kryptoin Ethereum ETF Trust will provide clients with access to a tool that reflects the market’s actual state of the second-largest cryptocurrency by market cap. 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 would be listed on the Chicago Board Options Exchange. The fund’s custodian will be Gemini Trust Company, LLC.

Unlike others that in recent weeks have filed applications under the Investment Company Act of 1940, Kryptoin is looking to a document from the prior decade.

\”The trust is not registered as an investment company under the 1940 Act, [Kryptoin] does not believe it is required to register the structure under it. Accordingly, investors will not receive the regulatory protections afforded to investors in investment companies,\” the document states.

The Ethereum ETF will also function similarly to the bitcoin-based ETF for which Kryptoin filed for registration in 2019. In April 2021, Kryptoin updated the form. In June, the SEC extended the review period.

Earlier, SEC Chair Gary Gensler said that this 1940 Act provides stronger investor protections than the 1930 Act. He stressed that a fund that meets regulator requirements could be approved.

Since then, ETF registration applications, following Gensler’s guidance, have been submitted by at least four firms — Invesco, ProShares, VanEck and Valkyrie Investments. The chief investment officer of the latter, Stephen McClurg, stressed that Gensler’s comment indicates that a purely spot ETF in the near term is unlikely to gain approval.

In May, the investment giant WisdomTree filed for registration of an Ethereum ETF with $70 billion in assets under management.

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