The Kelly ETF company has curtailed plans to create an ETF based on Ethereum futures by filing an application with the SEC earlier this week.
It was assumed that the Kelly Ethereum Ether Strategy ETF would invest in futures contracts traded on the Chicago Mercantile Exchange, similar to bitcoin ETFs that have recently received approval in the United States.
Bloomberg Intelligence analyst Eric Balchunas noted on Friday that the application lasted four days at the SEC, whereas the previous similar offer was withdrawn two days later. In his opinion, keeping an active application until the end of the day would be an optimistic sign, but this was not destined to come true.
Kelly herself appealed to the SEC with a request to withdraw the proposal from consideration. Balchunas admits that, as in earlier episodes with bitcoin ETFs, the company withdrew the application after a non-public notification to the SEC that it had no chance of approval. SEC Chairman Gary Gensler in August refused to answer a question about whether ether is a security or not.
The ETH rate on Friday evening dropped to $4040 - the lowest level since the beginning of the week. Bitcoin showed comparable negative dynamics.
Earlier, purchases of ether contracts with an execution price of $15,000 were seen on the options market. Analysts explained investors' calculations with expectations regarding the approval of the ETF.