Investment advisor Krypton has filed a proposal with the US Securities and Exchange Commission (SEC) for an Ethereum exchange-traded fund (ETF) Trust. Back in May, VanEck filed for a similar ETH investment vehicle.
The Delaware-based firm said in its filing that the trust would not purchase or sell ETH directly, rather will do so in ‘in-kind’ transactions in blocks of 100,000 shares.
However, the Trust will be paying its Sponsor a unified management fee in “ETH only,” and the Sponsor will pay all of its operating expenses out of this fee, it added.
With this Trust, the firm’s investment objective is to provide exposure to the second-largest cryptocurrency with a market cap of $378.5 billion, at a price “reflective of the actual Ethereum market where investors can purchase and sell Ethereum.”
The trust provides direct exposure to ETH, and its shares will be valued on a daily basis. Investors who want to buy or sell shares of the Trust will do so through their brokers.
The company has chosen Gemini as its custodian, while a Delaware trust company will act as the Trustee, and the Bank of New York Mellon will serve as its administrator and the transfer agent.
Kryptoin’s application for a Bitcoin ETF submitted in October 2019 is already under SEC’s review.
More than 20 cryptocurrency-related ETFs have been filed so far, but a single one has yet to be approved. Krypton’s Ethereum ETF might not get approved any time soon either as SEC Chair Gary Gensler is more open to futures-backed ETF for greater investor protection, four of which have been filed in less than the last two weeks.