NYSE Arca is proposing a rule change for the listing and trading of Bitwise Ethereum ETFs under Rule 8.201-E, allowing ether value exposure and establishing intrinsic value.
NYSE Arca, a self-regulatory organization, has filed a proposed rule change with the Securities and Exchange Commission (SEC) to list and trade shares of the Bitwise Ethereum ETF. The proposed rule change was submitted 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 addresses Commodity-Based Trust Shares. These shares represent investors’ separately identifiable and undivided beneficial ownership interest in the commodities deposited in the trust.
The Bitwise Ethereum ETF, which operates as a legal trust in Delaware, 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 determine its Net Asset Value (NAV) at the end of each business day based on the CME CF Ether Reference Rate – New York Variant (Price Index). The price index is designed to provide a reference rate for the US dollar price of one ether, using the same methodology as the CME CF Ether reference rate.
The Trust’s assets will consist primarily of ether and cash. The Company will not hold any non-ether crypto assets and has expressly 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 Cash Custodian, Administrator and Transfer Agent for the Trust.
The proposed rule change and the operation of the Bitwise Ethereum ETF are detailed in the filing, which can be accessed on the NYSE Arca website, at the Exchange’s headquarters 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 assessment process.
In conclusion, NYSE Arca has filed a proposed rule change for listing and trading 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 determine its NAV and operate as a Delaware legal 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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