Firm plans Ethereum futures ETF on the back of Bitcoin futures success

2021-12-1 23:00

As per a regulatory disclosure filed on Monday, Kelly Intelligence is actively seeking approval from the US Securities and Exchange Commission to launch its Ethereum futures ETFs in the US. 

The firm has proposed an actively managed fund that will invest in cash-settled Ethereum futures contracts traded on community exchanges that are registered with the Commodity Futures Trading Commission (CFTC). 

Kelly Intelligence explores Ethereum futures ETFs

The fund proposed by the firm will invest in a “cash-settled” futures contract, which implies that in cases where a futures contract has expired with the value of Ethereum being higher than the value recorded in the contract, then the purchaser will become liable to pay the difference to the seller. In simpler terms, the value of the futures contract is tied to the value of the reference asset, which is Ethereum in this case. 

The Chicago Mercantile Exchange (CME) is currently the only exchange where Ethereum futures ETFs are traded. The exchange had ventured into Ethereum Futures ETFs earlier this year, after unveiling Bitcoin futures ETFs in 2017. 

Recently, the exchange had also announced its plan to introduce micro ether futures that will be a cost-effective and efficient way for the investors to balance their Ethereum price risk and execute trading strategies more flexibly. 

The filing of Ethereum Futures ETFs comes at a time when several Bitcoin futures ETFs have already become very popular among potential investors. The ProShares’ Bitcoin Futures ETF (BITO) had managed to acquire a significant trading volume of $1.4 billion since the day it debuted on October 19. 

VanEck and ProShares had earlier disclosed their plans to file for Ethereum Futures products in August but had to withdraw their applications. It was later revealed via industry professionals that the US Securities and Exchange Commission had told the issuers that such products may not get approval any time soon. 

The post Firm plans Ethereum futures ETF on the back of Bitcoin futures success appeared first on CryptoSlate.

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