In the details of the application, the Kryptoin Ethereum ETF Trust is described as “an exchange-traded fund that issues common shares of beneficial interest that trade on the Cboe BZX Exchange, Inc. 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 goes on to note that the Trust will not purchase or sell ETH directly (with the exception of selling ETH to raise capital to pay for some of its expenses), but will, like most ETF’s, perform “in-kind transactions in blocks of 100,000 shares”, known as a Basket.
It is reported that Gemini Trust Company will serve as the Kryptoin’s Ethereum ETF custodian, and will hold the trust’s ETH.
Ethereum ETF Filing
This is not Kryptoin’s first ETF application, as the company earlier this year filed for a Bitcoin ETF back in April 2021, but as of yet, the SEC has yet to determine whether this can move forward. A number of other companies, including Van Eck have also made applications for ETF’s recently, and although the SEC has so far delayed all applications, Gary Gensler, the chairman of the SEC has recently signalled at least lukewarm support for digital asset ETF’s, with those dealing with Bitcoin futures being touted as the most likely to succeed.
To date, there are now over 20 applications for digital asset ETF’s which have been filed with the regulator, and this number makes it unlikely that any decision will be made on the Kryptoin Ethereum ETF anytime soon, but should any of of these get the green light, it is likely that other ETF applications and successful announcements will follow.