SEC Debates Allowing Bitcoin Trust Shares on Major U.S. Exchange
Published Date: 7/3/2025
Notice
Summary
The Cboe BZX Exchange wants to start trading shares of the Osprey Bitcoin Trust, which is tied to Bitcoin’s value. The SEC is now deciding whether to approve or reject this plan, with a decision expected by July 1, 2025. If approved, investors could buy and sell Bitcoin-based shares on a regular stock exchange, making crypto investing easier and more accessible.
Analyzed Economic Effects
3 provisions identified: 1 benefits, 0 costs, 2 mixed.
Proposed Exchange Listing of Bitcoin Shares
The Cboe BZX Exchange proposed to list and trade shares of the Osprey Bitcoin Trust under BZX Rule 14.11(e)(4). The SEC is considering that proposal and has set July 1, 2025 as the deadline to approve, disapprove, or institute proceedings; if approved, investors could buy and sell shares tied to bitcoin on the exchange.
Trust Structure, Valuation, and Redemption Terms
The Osprey Bitcoin Trust would hold only bitcoin, cash, and cash equivalents and seeks to reflect bitcoin performance measured by the Coin Metrics Bletchley Index (before fees). The Trust's bitcoin value would be determined using estimated fair market value as calculated by Lukka Inc., and the Trust will sell or redeem Shares in cash with authorized participants only in blocks of 50,000 Shares.
SEC Review Focused on Fraud and Manipulation
The SEC instituted proceedings to analyze whether the proposed listing is consistent with Section 6(b)(5) of the Exchange Act, which requires exchange rules be designed to prevent fraudulent and manipulative acts and to protect investors and the public interest. The Commission is soliciting comments on those issues, with comment deadlines noted in the notice.
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