Denver-based investment house Kelly Strategic Direction has filed for an exchange-traded fund (ETF) offering exposure to Ethereum (ETH) futures contracts.

The move comes just three months afterward VanEck and ProShares suddenly withdrew their ETH futures ETF applications on the same day in Baronial.

According to a Monday filing with the U.S. Securities and Commutation Commission (SEC), the Kelly Ethereum Ether Strategy ETF will invest in cash-settled Ether futures contracts traded on the Chicago Mercantile Exchange (CME).

Bloomberg's senior ETF annotator Eric Balchunas noted on Twitter on Tuesday that Kelly's Ether ETF may have a s20% take a chance of getting approval, equally he questioned whether the "SEC is ready for this new step."

In Balchunas' view, he thinks that SEC chairman Gary Gensler is "not mentally ready" to approve annihilation other than a Bitcoin (BTC) futures ETF at this stage:

"During the Bitcoin futures filing procedure in Aug, VanEck and ProShares filed for Ether ETFs likewise. SEC told them to withdraw them. It's now 3 months (and iii successful Bitcoin ETF futures ETF launches) after."

Balchunas added that if the rumors were true that the SEC told VanEck and ProShares to withdraw their corresponding Ether ETF filings every bit they provided exposure to crypto assets other than BTC, Kelly's ETF would have a 1% chance of approval.

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

Related: CME introduces micro Ether futures every bit ETH nears ATH above $iv.4K

The SEC has approved multiple BTC futures ETFs in the latter half of 2022, only information technology appears that the regulatory trunk is currently not willing to sign off on any type of fund that offers exposure to crypto outside of CME BTC futures contracts.

Before this month, Anna Paglia the global caput of ETFs and indexed strategies at Invesco highlighted as such, as she explained that her firm'southward conclusion to pull its BTC Futures ETF was considering the SEC only approves Bitcoin ETFs with 100% exposure to Bitcoin futures.

Invesco'due south ETF had aimed to provide a mix of futures swaps, concrete Bitcoin and private funds in the Bitcoin industry.