Kryptoin Investment Advisors files SEC application for an Ethereum-based ETF
Kryptoin Investment Advisors files SEC application for an Ethereum-based ETF By Angel Di Matteo @shadowargelWhile

Kryptoin’ s proposal is an interesting change of direction, it’s unclear whether for the SEC an Ethereum-based ETF

poses the same risks outlined for

a Bitcoin-linked

fund.

***

Amid the flurry of interest in the run-up to the first Bitcoin-linked

U.S

. exchange-traded fund , the firm Kryptoin Investment Advisors

decided to take a different path, and filed with the Securities

and Exchange Commission (SEC) its own application to launch an Ethereum-based ETF

.

Kryptoin files 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 product tradable on the U.S. stock exchange in which investors have greater exposure to Ethereum

, at a

price that reflects current market values, where investors can operate as if they were buying or selling the digital currency

.

Regarding this ETF, the Kryptoin team clarified that it will not buy or sell ETH outright, although the manager may sell Ethereum to pay for certain expenses. Regarding the sale or exchange of shares, it will be done in block

trades, which will contain 100,000 shares available for trading.

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 regulator on the same grounds that it has rejected other proposals.

See also  Bitcoin price: 32,000 USD as a possible stepping stone towards the north

The race for the first Bitcoin ETF

continues

Although the race for the first Bitcoin ETF

in the US continues.analysts and enthusiasts are becoming less and less optimistic about finally seeing any of the submitted applications approved, at least for this year.

Currently the SEC postponed the verdict on the VanEck and WisdomTree applications , which for many is a bad prognosis for the final outcome, as they anticipate that the regulator is just stalling on a possible rejection. So far, according to the Commission, concerns about volatility and possible manipulation of the digital currency market remain.

Meanwhile, entities such as Galaxy Digital, GlobalX, Fidelity and Ark Investment are awaiting a first verdict from the SEC. Grayscale at some point is also expected to join this race, as it is preparing a task force to analyze the relevant considerations and submit its respective application.

However, with respect to this application filed for an Ethereum ETF, it would have to be seen if this change in approach leads to a positive response from the SEC as it is an asset with a lower cost per unit.

Related Reading

Source: CoinDesk, TheBlockCrypto, SEC

Version by Angel Di Matteo / DiarioBitcoin

Image by Unsplash