Kryptoin Investment Advisors applied last week to launch the Kryptoin Ethereum ETF Trust, according to a disclosure filed with the SEC.
According to the filing, the trust will hold Ethereum directly in order to meet its investment objective to provide investors exposure to Ethereum at a price reflective of the Ethereum market.
The trust will value its shares daily using the CF Ether-Dollar US Settlement Price, which aggregates trade flow data from major ether spot exchanges to calculate the price of ether.
Gemini Trust Company will serve as Kryptoin’s custodian and will hold the trust’s Ethereum.
The filing notes that the trust will not directly buy or sell ether, unless to pay certain expenses. It will instead sell or redeem shares through “in-kind” transactions in blocks of 100,000 shares.
Shares of the trust will trade on the Cboe BZX Exchange, Inc. No management fee or ticker was listed.
Kryptoin filed for a Bitcoin ETF in April, although the SEC has yet to make a decision on the application.
VanEck and Wisdom Tree both filed for similar ether products this year, which are also under review by the SEC.
Ethereum is the second-most-popular cryptocurrency in the world after Bitcoin. Although it has operated on the same proof-of-work model as Bitcoin for all of its existence, the Ethereum network is in the process of upgrading and revising its protocols and will be moving to a proof-of-stake model in the next few years.
Moving to a proof-of-stake model will make Ethereum markedly more environmentally sustainable than Bitcoin.
The SEC now has over 20 digital asset ETFs under review, making it unlikely any decision will be made on Kryptoin’s product soon.
SEC Chairman Gary Gensler recently signaled tepid support for digital asset ETFs, particularly those dealing with Bitcoin futures.
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