Three months ago, VanEck’s and ProShares abruptly withdrew ETF application for ETH futures. Now, Denver-based investment company Kelly Strategic Management is filing an ETF to offer exposure to (ETH futures) contracts.

According to a November 29 filing to the U.S Securities and Exchange Commission, the Kelly Ethereum Ether Strategy ETF will invest in cash-settled Ether Futures contracts that are traded on the Chicago Mercantile Exchange.

Senior ETF analyst at Bloomberg, Eric Balchunas, stated via Twitter (NYSE:) that there is a slim 20% probability that the Kelly Ether ETF will be approved, as he was not convinced that the “SEC is ready for this new step.”

In his opinion, SEC chairman Gary Gensler is “not mentally ready” at this stage to approve anything apart from a (BTC) futures ETF.

VanEck filed Ether ETFs in August as part of the Bitcoin futures filing. ProShares also submitted them during that process. The SEC instructed them to withhold them. Now, it has been 3 months and 3 successful Bitcoin ETF Futures ETF launches later.

He added that if there was any atom of truth in the rumors which suggests that the SEC told VanEck and ProShares to withdraw their respective Ether ETF filings because they provided exposure to crypto assets other than BTC, then the Kelly’s ETF would have only a 1% chance of approval.

Just had quick chat with @JSeyff and our early, rough odds of approval of this ETF is about 20% unless this @twobitidiot rumor is correct, then we’d obv go way lower like 1% (altho we still see multiple ETFs holding $ETHE) https://t.co/Ba4yRMsGS6

— Eric Balchunas (@EricBalchunas) November 29, 2021

Jason Lowery, a researcher on the topic, also spoke out. He noted that:

It would surprise me if the SEC approves an ETF for ETH, as it signals that ETH is not an unregistered security.

Multiple BTC futures ETFs were approved by the SEC in the second half of 2021. It appears, however that any fund offering exposure to cryptocurrency other than futures contracts is not being approved by the regulator.

Still on the matter, the global head of ETFs and indexed strategies at Invesco, Anna Paglia, explained earlier this month that her firm’s decision to withdraw its BTC Futures ETF was because the SEC only approves Bitcoin ETFs with 100% exposure to Bitcoin futures. The initial purpose of Invesco’s ETF was to provide a blend of futures swaps, physical Bitcoin, and private funds in the Bitcoin industry, a purpose which was defeated due to the Commission’s policies.

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