Crypto Goes Wall Street: NYSE Arca Eyes Bitwise Bitcoin-Ethereum ETF Trading
Published Date: 3/12/2025
Notice
Summary
NYSE Arca wants to start trading shares of the Bitwise Bitcoin and Ethereum ETF, making it easier for investors to buy into these popular cryptocurrencies through the stock market. This change affects anyone interested in crypto ETFs and could open new ways to invest starting soon after approval. Keep an eye out for official green lights and get ready to trade some digital gold and silver!
Analyzed Economic Effects
8 provisions identified: 4 benefits, 3 costs, 1 mixed.
Bitwise Bitcoin & Ether ETF Listed
NYSE Arca filed to list and trade shares of the Bitwise Bitcoin and Ethereum ETF; the Exchange filed the proposed rule change on February 19, 2025 and published notice on March 6, 2025. The Shares will not trade until the Trust's Form S-1 registration statement is effective.
Daily NAV Set by 4:00 p.m. Benchmarks
The Trust will calculate Net Asset Value (NAV) once each trading day as of 4:00 p.m. Eastern Time using the CME CF Bitcoin--New York Variant for bitcoin and the CME CF Ether--Dollar Reference Rate--New York Variant for ether. NAV per Share is NAV divided by Shares outstanding and is determined daily by the Administrator.
Management Fee Accrues Daily, Paid In Crypto
The Trust's only recurring ordinary expense is the Sponsor's management fee, which will accrue daily and be payable in bitcoin and ether monthly in arrears, with the Administrator calculating daily accruals by applying an annualized rate to the Trust's holdings.
Creation/Redemption Limited to Authorized Participants
Shares may only be created or redeemed in Creation Units (initially at least 10,000 Shares) and only Authorized Participants (registered broker-dealers or specified financial institutions that are DTC participants) may place creation or redemption orders; creations and redemptions are processed in cash.
Trust Holds Only Bitcoin, Ether, and Cash
The Trust's only assets will be bitcoin, ether, and cash; the Trust will not use derivatives that may subject it to counterparty or credit risks and disclaims ownership of incidental assets (e.g., forked tokens or airdrops).
Intraday Indicative Value Every 15 Seconds
The Trust will publish an Indicative Trust Value (ITV) every 15 seconds during NYSE Arca's Core Trading Session (9:30 a.m. to 4:00 p.m. E.T.) using the CME CF Real Time Price indexes, providing intraday price information.
Agent Model May Use Short-Term Trade Credit
Under the Agent Execution Model the Trust may borrow short-term Trade Credit (cash, bitcoin, or ether) from Coinbase Credit, Inc. under a Trade Financing Agreement; any financing fee would be treated as part of trade execution costs and embedded in trade prices.
Sponsor May Change Pricing Benchmark
The Sponsor may, at its sole discretion and with prior notice to shareholders (via prospectus supplement, Form 8-K, or periodic reports), change the index, benchmark, or standard used to establish the Trust's NAV if it believes another measure better aligns with the Trust's objective.
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