Kryptoin files for Ethereum ETF, while SEC continues to delay decisions on applications

Digital asset investment firm Kryptoin has recently filed a new application with the United States Securities & Exchange Commission for a cryptocurrency exchange-traded fund (ETF).

Kryptoin files for ETF offering ETH exposure

Kryptoin has applied for an Ethereum ETF, joining VanEck and WisdomTree, which have also filed applications for a similar ETF. 

The crypto investment firm previously applied for a Bitcoin ETF in 2019 that failed but attempted another filing made earlier this year and is currently under review by the securities regulator.

Ethereum ETFs allow investors to gain exposure to the second-largest cryptocurrency by market capitalization without holding the underlying asset. 

If the Ethereum ETF is approved, the Kryptoin ETH ETF will trade on the Cboe BZX exchange. The shares will be valued based on the CF Ether-Dollar US settlement price. 

The firm will hold Ethereum through an appointed custodian, Gemini Trust Company, although the ETF will not purchase or sell ETH directly. Instead, it will sell and redeem shares through baskets of 100,000 shares at the Trust’s net asset value.

Although the SEC has not approved of any crypto ETFs so far, Canada has approved Bitcoin and Ethereum ETFs this year. 

Ethereum price eyes $3,400 following minor pullback

Ethereum price has formed an ascending parallel channel on the 12-hour chart, suggesting that ETH has the potential for a move higher in the near term.

However, Ethereum price is experiencing a minor sell-off as it retests critical levels of support. The governing technical pattern appeared on August 7, and ETH has continued to make higher highs and higher lows. 

Ethereum price would find meaningful support at the first line of defense at the lower trend line of the prevailing chart pattern at $2,983. The second support level is at the 78.6% Fibonacci extension level at $2,959.

ETH/USDT 12-hour chart

A spike in selling pressure would reverse the trend, taking Ethereum price lower to the start of the demand zone extending from $2,860 to the 61.8% Fibonacci extension level at $2,690. 

Further weakness is not expected at the moment, and should ETH be able to hold above the downside trend line of the parallel channel; it could have a higher chance of continuing its uptrend.