The firm known as Kryptoin Investment Advisors just pitched a proposal with the U.S. Securities and Exchange Commission for an ether (ETH) exchange-traded fund. The company is now among the list of other aspirants who are keeping their fingers crossed that their filing will reap positive results.
Kryptoin’s ether ETF filing
The proposal was filed on Thursday as the Delaware-based firm noted on their draft that the investment objective of their Kryptoin Ethereum ETF Trust would be providing “exposure to Ethereum at a price that is reflective of the actual Ethereum market where investors can purchase and sell Ethereum.” They also highlighted that the trust will not be buying or selling ether directly. Nonetheless, the Trustee may sell ether to pay off certain expenses. Further, it was also stated that whenever it sells or redeems its shares, it was stated that it will be done in-kind transactions in blocks amounting to 100,000 shares.
Waiting for that bitcoin ETF approval
For the uninitiated, Kryptoin also filed for a bitcoin (BTC) ETF as the first proposal was submitted back in October of 2019. Unfortunately, this got rejected by the SEC. In April of this year, the firm has filed another bitcoin ETF as the verdict was supposed to be handed down on July 27. However, as of writing, the proposal is still in review by the SEC. With that in mind, Kryptoin’s waiting for verdicts to drop.
The US SEC has been receiving several crypto applications from different firms. However, none of them met the agency’s requisites.
Invesco’s bitcoin ETF proposal
In line with this, the independent investment management firm of Invesco also submitted for a bitcoin exchange-traded fund as it will be investing in BTC futures and cryptocurrency exchange-traded products (ETPs). Their proposal was filed on August 5 and just like Kryptoin, they too are vying for that SEC’s approval that would enable them for greater liquidity within the cryptocurrency space.
If their proposal is anything to go by, the said fund will not be directly investing within the cryptocurrency and will be placing its money in CME bitcoin futures contracts and ETP products like the Grayscale Bitcoin Trust (GBTC). Also, it will be putting its money into a host of traditional financial instruments like government securities and money market funds, for a so-called temporary defensive position for them to at least fight back the ever-volatile scene of the cryptocurrency market.
This game plan from Invesco is pretty much interesting since it happened soon after SEC Chair Gary Gensler’s remarks regarding the possible approval of a bitcoin ETF. Gensler’s comments were during last month’s Aspen Security Summit where he pointed out that investment vehicles that give exposure to crypto-assets already exist within the markets adding name-checked GBTC and mutual funds that invest in BTC futures at CME.
He went to say that he’s expecting filings concerning exchange-traded funds under the Investment Company Act of 1940. Further, when this is paired with other federal security laws, the ‘40 Act will provide substantial investor protection.