Kryptoin Files For An Ethereum ETF With SEC
Kryptoin Investment Advisors has become the latest company to file for an Ethereum ETF with the U.S. Securities and Exchange Commission (SEC). The firm had applied for a Bitcoin ETF earlier, but the application is still under review with the SEC.
The Delaware-based firm has joined a growing list of investment firms that have filed for cryptocurrency ETFs with the regulator, hoping that the commission will approve them. The firm’s filing for a Bitcoin ETF was meant to be approved on July 27, but the matter is still being reviewed.
The filing made on August 12th is for the Kryptoin Ethereum ETF Trust.
The Trust will issue its common shares on the Chicago Board Options Exchange (Cboe) BZX Exchange. However, the ticker symbol for the digital asset will be communicated later.
The filing also states that the ETF will include Ethereum through Gemini Trust Company, the firm’s custodian.
The value of the shares will be evaluated daily and will be
“independently calculated value based on an aggregation of executed trade flow of major ETH spot exchanges.”
“The Trust’s investment objective is to provide exposure to Ethereum at a price that is reflective of the actual Ethereum market where investors can purchase and sell Ethereum, less the expenses of the Trust’s operations,” the filing added.
Other firms that filed for Ethereum ETFs in the United States include VanEck and Wisdom Tree Investments, an investment firm based in New York.
The ETFs aim to give investors exposure to Ethereum, hence reducing the risk associated with holding ETYH directly. So far, 21 crypto ETFs have been filed with the SEC this year.
SEC Approval Could Be Near
Despite the reluctance of the SEC to approve any ETF application made this year, companies have remained positive that this could change in future.
In early August, a glimpse of hope was experienced when the SEC Chief, Gary Gensler, stated that he was willing to approve crypto ETFs linked to regulated futures contracts.
“When combined with the other federal securities laws, the ’40 Act provides significant investor protections,” Gensler said.
The sentiments by Gensler could be behind the recent filing of ETFs by Kryptoin and Valkyrie, which also filed for a Bitcoin Futures ETF this week.
In these latest filings, an exchange-traded fund is an investment vehicle linked to the price of Ethereum. Hence, it exposes investors to ETH, but investors do not have to worry about the costs and convenience of storing ETH tokens. The ETF issuer benefits from transaction fees.
The U.S. does not have any active crypto ETFs. However, traders can get indirect exposure to cryptocurrencies through investments trusts such as Grayscale.
However, the Grayscale GBTC Trust differs from an ETF, given that it is a closed-end fund and there is a huge difference between the underlying crypto asset and the investment share. However, an ETF share will be as close as possible to the price of the underlying asset.
While the U.S. has been reluctant to approve an ETF, Canada has embraced the fast-growing sector and earlier this year, the country approved 3 Bitcoin ETFs and 3 Ethereum ETFs.