Kelly Strategic Management LLC is seeking to offer a futures-backed exchange-traded fund linked to Ethereum, according to its filing with the Securities and Exchange Commission.
Dubbed as the Kelly Ethereum Ether Strategy ETF (EX), the fund seeks to invest in standardized, cash-settled Ether futures contracts traded on exchanges registered with the Commodity Futures Trading Commission.
The fund will also invest in pooled investment vehicles and exchange-traded products that provide exposure to Ether, but not directly in Ether or other similar digital assets.
The investments will be made through a wholly-owned subsidiary of Kelly, which will have the same investment adviser, investment sub-adviser, and investment objective. It will also follow the same general investment policies.
Kelly said the fund will warn investors that they could lose their initial investment up to 90%, as seen in 2018 when the price of Ether plunged by over 90% in a short span.
The application noted that the corporate regulator acknowledged Ether and Ether futures as a new asset class. ETH is up 8.14%.