29 May 2025
💹SEC Reviews Proposed Rule for In-Kind Bitcoin and Ethereum Funds
Self-Regulatory Organizations; Cboe BZX Exchange, Inc.; Order Instituting Proceedings To Determine Whether To Approve or Disapprove a Proposed Rule Change To Amend the Rules Governing the Listing and Trading of Shares of the Fidelity Wise Origin Bitcoin Fund and the Fidelity Ethereum Fund To Permit In-Kind Creations and Redemptions Under Rule 14.11(e)(4) (Commodity-Based Trust Shares)
Summary
The SEC is assessing a proposed rule change by Cboe BZX Exchange to amend the listing and trading rules for Fidelity's Bitcoin and Ethereum Funds. This proposal seeks to enable in-kind creations and redemptions, which are critical for fund management strategies and compliance within the cryptocurrency market. The Commission is inviting public comments on these changes.
Agencies
- Securities and Exchange Commission
Business Impact
$$ - Med
The proposed rule change allows for in-kind creations and redemptions for cryptocurrency funds, influencing investment strategies and trading practices in the securities market. This change affects compliance and trading regulations for businesses involved with these funds.