NYSE Arca proposes rule changes for the listing and trading of the Bitwise Ethereum ETF under Rule 8.201-E, which would allow exposure to the value of Ether and establish a net asset value.
Self-regulatory body NYSE Arca has filed a rule change proposal with the Securities and Exchange Commission (SEC) to list and trade shares of the Bitwise Ethereum ETF. The proposed rule changes were submitted March 28, 2024, and are currently seeking public comment.
Under the proposed rule change, the Bitwise Ethereum ETF will be listed under NYSE Arca Rule 8.201-E, which specifically addresses commodity-based trust shares. These shares represent the investor’s identifiable, undivided, individual beneficial ownership interest in the instruments deposited in the trust.
The Bitwise Ethereum ETF, which operates as a Delaware statutory trust, aims to provide exposure to the value of Ether held by the trust through investment objectives focused on tracking Ether performance. The Trust sets the Net Asset Value (NAV) at the end of each business day based on the CME CF Ethereum Reference Rate (New York Variant (Price Index)). The price index is designed to provide a reference rate for the price of one U.S. dollar unit of Ether using the same methodology as the CME CF Ether Reference Rate.
The trust’s assets mainly consist of Ethereum and cash. We do not hold any cryptocurrency assets other than Ethereum and have expressly disclaimed any ownership of such assets. Coinbase Custody Trust Company, LLC serves as custodian of Ether, and Bank of New York Mellon serves as cash custodian, custodian, and transfer agent for the trust.
The proposed rule changes and the operation of the Bitwise Ethereum ETF are detailed in the filing, which can be accessed on the NYSE Arca website, the exchange’s headquarters, and the Commission’s public reference room.
Interested parties and interested parties are invited to submit comments to the SEC on the proposed rule changes. The regulator will carefully consider these comments as part of its review process.
In conclusion, NYSE Arca has filed proposed rule changes to list and trade shares of the Bitwise Ethereum ETF, which aims to provide exposure to the value of Ethereum. The trust sets its NAV using the CME CF Ether reference rate and operates as a Delaware statutory trust with a designated custodian for its ether and cash holdings. The SEC is currently accepting public comments on proposed rule changes.
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