Kelly ETFs files for Ether futures ETF

Kelly ETFs, an issuer of exchange-traded funds (ETFs), has filed for a U.S. Ether futures ETF. 

The firm filed a Form N-1A dated today with the Securities and Exchange Commission (SEC). The N1-A is used by investment companies seeking to form open-end mutual funds, and registers a product under both the Securities Act of 1933 and the Investment Company Act of 1940.


Keep up with the latest news, trends, charts and views on crypto and DeFi with a new biweekly newsletter from The Block's Frank Chaparro

By signing-up you agree to our Terms of Service and Privacy Policy
By signing-up you agree to our Terms of Service and Privacy Policy

SEC Chair Gary Gensler previously said he was interested in taking a closer look at proposed crypto products under the '40 Act, especially those holding futures traded on the Chicago Mercantile Exchange. Since those comments, the SEC has approved multiple bitcoin futures ETFs, though an Ether-based product has yet to get the green light. 

The Kelly Ethereum Ether Strategy ETF would hold Ether futures contracts that trade on federally regulated exchanges. For now, that means only CME Ether futures. The fund won't enable direct exposure to ETH price, and is structured similarly to the approved bitcoin futures ETFs. Currently, it's the only Ether futures ETF before the SEC.

The filing will take effect 75 days from today pending no SEC action. Approval seems unlikely, according to Bloomberg ETF analysts Eric Balchunas and James Seyffart. Balchunas tweeted that the two put the rough odds of approval at about 20% for now. 

About Author

Aislinn Keely is a reporter on The Block's policy team holding down the legal beat. She covers court decisions, bankruptcies, regulatory actions and other key moments in the legal sphere, putting them in context for the wider crypto industry. Before The Block, she lent her voice to the NPR affiliate WFUV and helmed Fordham University's student newspaper. Send tips or thoughts on all things policy and legal to or follow her on Twitter for updates @AislinnKeely.