SEC Scrutinizes Fidelity's Plan to Swap Real Crypto in ETFs
Published Date: 5/29/2025
Notice
Summary
The Cboe BZX Exchange wants to change the rules for trading shares of the Fidelity Wise Origin Bitcoin and Ethereum Funds. They’re asking to allow ‘in-kind’ creations and redemptions, which means investors can swap actual crypto assets instead of cash. The SEC is now reviewing this change and will decide by May 26, 2025, which could affect how these funds are bought and sold.
Analyzed Economic Effects
1 provisions identified: 0 benefits, 0 costs, 1 mixed.
Allow in-kind creations/redemptions
The Cboe BZX Exchange filed a proposal to let the Fidelity Wise Origin Bitcoin Fund and the Fidelity Ethereum Fund allow in-kind creations and redemptions (swapping bitcoin or ether instead of cash) under BZX Rule 14.11(e)(4). The SEC is reviewing the proposal and will decide by May 26, 2025; the Commission is taking public comments through June 20, 2025 with rebuttals due July 3, 2025.
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