Investment entity from Denver Kelly Strategic Management has reportedly finalized its submission for the filing of an exchange-traded fund (ETF), providing Ethereum (ETH) futures contracts exposure. 

Specifically, the initiative was reportedly finalized only three months following sudden withdrawals from VanEck and ProShares, regarding ETH futures ETF applications on the same day in August.

Per details revealed via a filing received by the US Securities and Exchange Commission (SEC) on November 29th, the Kelly Ethereum Ether Strategy ETF will reportedly make investments in cash-settled Ether futures contracts, listed for trading across the Chicago Mercantile Exchange (CME).

Bloomberg’s Senior ETF analyst Eric Balchunas reportedly took to Twitter on November 30th to highlight that Kelly’s Ether ETF may come with a slight 20% chance of obtaining the green light, as he posed the idea of whether the “SEC is ready for this new step.”

From Balchunas’ perspective, SEC chairman Gary Gensler is “not mentally ready” to offer any kind of approval for anything unless it is a Bitcoin futures ETF for the time being. 

“During the Bitcoin futures filing process in Aug, VanEck and ProShares filed for Ether ETFs too. The SEC told them to withdraw them. It’s now 3 months (and 3 successful Bitcoin ETF futures ETF launches) later.”

Balchunas further remarked that should the authenticity of the rumors are proven, regarding the SEC’s initiative to have VanEck and ProShares withdraw their respective Ether ETF filings, due to the offered exposure is to crypto assets rather than BTC, the approval chance for Kelly’s ETF filing would plummet down to 1%. 

Researcher Jason Lowery reportedly commented, “I would be surprised if SEC approved an ETH ETF b/c it tacitly signals acceptance of ETH as not being an unregistered security.”