Kelly Investments Files Application for a Futures-Backed Ethereum ETF

Ethereum ETF

Kelly Investment Company has applied with the US Securities and Exchange Commission to launch an Ether futures ETF.

Kelly Ethereum Ether Strategy ETF would track the underlying asset’s performance and provide exposure to Ethereum for retail and institutional clients.

The filing acknowledged that Ether and Ether futures are new asset classes and are prone to high-unexpected volatility risks. The firm will warn investors that they can lose their investment up to 90%. 

The fund has disclosed that it would use Ether futures traded in commodity exchanges under CFTC. The application adds that each future would be cash-settled upon expiry. The fund would track Ether futures in the same way as the ProShares’ Bitcoin ETF.  

The application, currently pending the regulator’s approval, is expected to bring strong inflows to the second-largest crypto in the initial phase once approved. 

Source: SEC

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