As new entrants join the American ETF race, the fire for cryptocurrency exchange-traded funds (ETFs) continues to burn brightly. On August 12, Delaware-based Kryptoin Investment Advisors filed with the Securities and Exchange Commission for an Ethereum exchange-traded fund.
On August 12, the Kryptoin Ethereum ETF Trust was established with the goal of giving exposure to Ethereum at a price that reflects the actual Ethereum market. If approved, Kryptoin’s Ethereum ETF would be listed on the CBOE’s BZX Exchange.
The ETF will not directly purchase or sell ETH. It will sell or redeem its shares in baskets of 100,000 shares at the Trust’s net asset value (NAV).
The Trust will hold ETH and value its shares daily using the CF Ether-Dollar US Settlement Price, the filing noted. According to the announcement, this is an independently determined number based on an aggregate of executed transaction activity from major ETH spot markets.
Gemini Trust Company, which has been specifically chosen because it has been approved by the New York State Department of Financial Services (NYDFS) to provide digital asset custody services, will hold all ETH holdings, the filing adds.
“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 read.
Kryptoin previously attempted to obtain approval for a Bitcoin ETF in 2019. After being rejected, it tried again in April, but the filing is currently being reviewed by the SEC.
2021 the Year of ETFs?
This year has seen at least 20 new crypto ETFs being filed with the U.S. SEC. On May 7, VanEck submitted an application with the Securities and Exchange Commission for its Ethereum ETF, and on May 28, Wisdom Tree filed an application with the SEC for a similar fund.
Meanwhile, the SEC sent a notification on June 9 indicating that it will require extra time to evaluate the BTC ETF application. The regulator has employed this stalling strategy before, with WisdomTree’s ETF being delayed in the same month.
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