20 May 2025
💰SEC Proposes Rule Change for Bitcoin and Ethereum ETFs
Self-Regulatory Organizations; Cboe BZX Exchange, Inc.; Order Instituting Proceedings To Determine Whether To Approve or Disapprove a Proposed Rule Change, as Modified by Amendment No. 2, To Amend the Rules Governing the Listing and Trading of Shares of the ARK 21Shares Bitcoin ETF and the 21Shares Core Ethereum ETF To Permit In-Kind Creations and Redemptions Under Rule 14.11(e)(4) (Commodity-Based Trust Shares)
Summary
The SEC is evaluating a proposed rule change by Cboe BZX Exchange to enhance trading processes for ARK 21Shares Bitcoin and 21Shares Core Ethereum ETFs. The change aims to permit in-kind creations and redemptions, potentially impacting market liquidity and investment strategies for these cryptocurrency-based trust shares. The proposal invites commentary to assess its implications effectively.
Agencies
- Securities and Exchange Commission
Business Impact
$$ - Med
The content discusses a proposed rule change affecting the listing and trading of Bitcoin and Ethereum ETFs, which has significant implications for market operations and compliance for businesses involved in securities trading. The allowance of in-kind creations and redemptions may influence ETF structures and investor participation.