Kryptoin Files to Launch Ethereum ETF

Proposed fund is similar to planned offerings revealed by VanEck and WisdomTree in May.

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BLOCKWORKS EXCLUSIVE ART BY AXEL RANGEL

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key takeaways

  • Kryptoin’s ETF will hold Ethereum and value its shares daily as determined by the CF Ether-Dollar US Settlement Price
  • Filing comes nearly two years after the Delaware-based firm filed to launch a bitcoin ETF in October 2019

Kryptoin is looking to launch an Ethereum ETF several months after joining the swathe of issuers seeking to bring to market an ETF that would hold bitcoin. 

The Delaware-based firm’s proposed Kryptoin Ethereum ETF Trust will hold Ethereum and value its shares daily as determined by the CF Ether-Dollar US Settlement Price, according to a disclosure filed with the SEC on Thursday. This price is an independently calculated value based on an aggregation of executed trade flow of major ETH spot exchanges, the document notes.

“The trust provides investors with the opportunity to access the market for Ether through a traditional brokerage account without the potential barriers to entry or risks involved with holding Ether directly, acquiring it from an online exchange platform, or mining it, as referenced above,” the filing states.

The ETF does not plan to purchase or sell Ether directly. Rather, when it sells or redeems its shares, it will do so in “in-kind” transactions in blocks of 100,000 shares at the trust’s net asset value, the disclosure notes. Authorized participants will deliver Ether to the trust in exchange for shares when they purchase shares, and the trust will deliver Ether to such authorized participants when they redeem shares.

Authorized participants may then offer shares to the public at prices that depend on the supply and demand for shares, the value of the trust’s assets, and market conditions, the filing adds.

Kryptoin is the third issuer to file for an Ethereum ETF this year, James Seyffart, an ETF analyst at Bloomberg Intelligence, said in a Twitter post. So far in 2021, he added, there have been 21 crypto ETF filings. 

VanEck was the first fund manager to apply for an Ethereum Trust in May, and WisdomTree Investments followed that up with a filing of its own later that month.

Kryptoin first filed for a bitcoin ETF in 2019, and made amendments to the filing in April 2021 to include the service providers that would assist in launching, including Gemini Custody, BNY Mellon, Foreside, and CF Benchmarks. The SEC had pushed back its decision on the ETF to July 27, but appears to still be evaluating this product.  

The firm did not immediately respond to a request for further comment about the proposed products.

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