When it comes to investing in cryptocurrencies, staying informed about the latest developments is crucial for making wise decisions. Recently, NYSE Arca, a prominent self-regulatory organization, has put forth a proposed rule change to the Securities and Exchange Commission (SEC) that could have a significant impact on the cryptocurrency market.
The proposed rule change pertains to the listing and trading of shares of the Bitwise Ethereum ETF under NYSE Arca Rule 8.201-E, which specifically covers Commodity-Based Trust Shares. These shares would represent investors’ beneficial ownership interest in the commodities deposited into the trust, providing them with exposure to the value of ether held by the Trust.
Operating as a Delaware statutory trust, the Bitwise Ethereum ETF aims to track the performance of ether, the cryptocurrency native to the Ethereum blockchain. The Trust will establish its Net Asset Value (NAV) based on the CME CF Ether Reference Rate – New York Variant (Pricing Index) at the end of each business day. This Pricing Index is designed to provide a reference rate for the U.S. dollar price of one ether, using a methodology similar to the CME CF Ether Reference Rate.
The Trust’s assets will primarily consist of ether and cash, with Coinbase Custody Trust Company, LLC acting as the Ether Custodian and Bank of New York Mellon serving as the Cash Custodian, Administrator, and Transfer Agent for the Trust. It’s important to note that the Trust will not hold any non-ether crypto assets, as explicitly stated in the filing.
For those interested in delving deeper into the details of the proposed rule change and the operation of the Bitwise Ethereum ETF, the full filing can be accessed on the NYSE Arca website, at the Exchange’s principal office, and in the Commission’s Public Reference Room. Additionally, stakeholders and interested parties are encouraged to submit comments to the SEC for consideration during the review process.
In conclusion, the proposed rule change by NYSE Arca marks a significant step towards providing investors with exposure to the value of ether through the Bitwise Ethereum ETF. With the SEC now accepting public comments on the matter, it’s essential for those in the cryptocurrency space to stay informed and engage in the discussion surrounding this potential development.
At Extreme Investor Network, we strive to provide our readers with valuable insights and analysis on the latest trends in the world of crypto and blockchain. Stay tuned for more updates on this and other exciting developments in the industry.
