NYSE Arca proposes rule change for Bitwise Ethereum ETF listing and trading under Rule 8.201-E, allowing exposure to ether value and establishing Net Asset Value.
NYSE Arca, a self-regulatory organization, has submitted a proposed rule change to the Securities and Exchange Commission (SEC) to list and trade shares of the Bitwise Ethereum ETF. The proposed rule change was filed on March 28, 2024, and is now open for public comment.
Under the proposed rule change, the Bitwise Ethereum ETF would be listed under NYSE Arca Rule 8.201-E, which specifically covers Commodity-Based Trust Shares. These shares represent investors’ discrete identifiable and undivided beneficial ownership interest in the commodities deposited into the trust.
The Bitwise Ethereum ETF, operating as a Delaware statutory trust, aims to provide exposure to the value of ether held by the Trust, with its investment objective focused on tracking the performance of ether. The Trust will establish its Net Asset Value (NAV) at the end of each business day based on the CME CF Ether Reference Rate – New York Variant (Pricing Index). The Pricing Index is designed to provide a reference rate for the U.S. dollar price of one ether, using the same methodology as the CME CF Ether Reference Rate.
The Trust’s assets will primarily consist of ether and cash. It will not hold any non-ether crypto assets and has explicitly disclaimed ownership of such assets. Coinbase Custody Trust Company, LLC will act as the Ether Custodian, while Bank of New York Mellon will serve as the Cash Custodian, Administrator, and Transfer Agent for the Trust.
The proposed rule change and the operation of the Bitwise Ethereum ETF are outlined in detail in the filing, which can be accessed on the NYSE Arca website, at the Exchange’s principal office, and in the Commission’s Public Reference Room.
Interested parties and stakeholders are invited to submit comments on the proposed rule change to the SEC. The regulatory body will carefully consider these comments as part of its review process.
In conclusion, NYSE Arca has filed a proposed rule change to list and trade shares of the Bitwise Ethereum ETF, which aims to provide exposure to the value of ether. The Trust will rely on the CME CF Ether Reference Rate to establish its NAV and operate as a Delaware statutory trust with designated custodians for ether and cash holdings. The SEC is now accepting public comments on the proposed rule change.
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