Kelly Strategic Management, an investment firm headed by Kevin Kelly, has filed for approval in the U.S. of an exchange-traded fund (ETF) tied to ether futures, just three months after ProShares and VanEck pulled similar filings.

• The Kelly Ethereum Ether Strategy ETF is an actively managed fund that will invest in cash-settled Ether futures contracts traded on registered commodity exchanges. The value of futures contracts is tied to the underlying reference asset, which is ether in this case. “Cash-settled” means that if the futures contract expires with ether’s value above the futures contract price, the purchaser pays the seller the difference in cash.
• The Chicago Mercantile Exchange (CME) is currently the only commodity exchange where ether futures are traded. The CME’s current position limits for ether futures contracts are 8,000 contracts for an applicable month with each contract representing 50 ether. If the Kelly fund hits those limits, it will invest in longer-dated ether contracts or additional cash and fixed income investments like government bonds or corporate debt securities such as short-term promissory notes.
• In August, VanEck and ProShares suddenly withdrew their applications for their futures-based ether ETFs, which suggested they received pushback from the U.S. Securities and Exchange Commission, which regulates ETFs.
• Last month, two bitcoin futures-based ETFs from ProShares and Valkyrie went public with the SEC’s approval after Chair Gary Gensler said the funds provided sufficient investor protections.

Read More: ProShares Bitcoin Futures ETF Wins ‘First Mover Advantage’ as VanEck Launch Falls Flat