NYSE Arca Files Proposed Rule Change for Bitwise Ethereum ETF Listing

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NYSE Arca is proposing a change to the Bitwise Ethereum ETF’s listing and trading rules under Rule 8.201-E to allow exposure of ether value and ascertainment of net asset value.

NYSE Arca, a self-regulatory organization, has submitted a rule change proposal to the Securities and Exchange Commission (SEC) for the listing and trading of Bitwise Ethereum ETF shares. 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 will be listed under NYSE Arca Rule 8.201-E, which specifically covers commodity-based trusts. These shares represent a separate identifiable and undivided interest of the investors in the commodities deposited in 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 price index is designed to provide a reference rate for the price of one Ether in USD using the same methodology as the CME CF Ether Reference Rate.

The trust’s assets will consist primarily of Ether and cash. It will not own any crypto assets other than Ether and has expressly disclaimed ownership of such assets. Coinbase Custody Trust Company, LLC will act as custodian of Ether, while Bank of New York Mellon will serve as the cash custodian, administrator and transfer agent of the trust.

The proposed rule change and the operation of the Bitwise Ethereum ETF are described in detail in documentation that can be accessed on the NYSE Arca website, at the exchange’s principal office and in the Commission’s public reference room.

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Interested and interested parties are invited to submit comments on the SEC’s proposed rule change. The regulator will carefully consider these comments as part of its review process.

In conclusion, NYSE Arca filed a proposal to change the rules 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 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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