ETFs Push for Looser Rules on Investment Baskets
Published Date: 5/14/2026
Notice
Summary
Precidian ETF Trust II wants to change some rules about how their funds create and manage baskets of investments, including using more cash and different instruments. These changes could make it easier and more flexible for the funds to operate. If you want to speak up, you have until June 5, 2026, to request a hearing.
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Analyzed Economic Effects
3 provisions identified: 2 benefits, 0 costs, 1 mixed.
Custom Baskets Without Optimized Disclosure
A Fund may offer a Custom Basket without publishing an Optimized Basket or an Optimized Basket Overlap metric. The Adviser will still disclose to Authorized Participants the names and quantities of the instruments in the Custom Basket, and the Fund will continue to publish its verified intraday indicative value (VIIV) every second during the trading day.
Cash Substitution When Trading Restricted
A Fund may substitute cash for one or more instruments in its Pro Rata Basket when the Fund or its Adviser is restricted from transacting in those instruments due to Fund Level Restrictions or Sponsor Level Restrictions. The modified Pro Rata Basket definition explicitly allows such cash substitutions, and the Fund must record the nature of the restriction when it does so.
Continued VIIV and Prior-Day Basket Disclosure
Each Fund will continue to publish a verified intraday indicative value (VIIV) every second during trading, and before the exchange opens on each Business Day the Fund will publish on its website the composition of any Custom Basket that was exchanged with an Authorized Participant on the previous Business Day. The Fund's website will also contain the prior Business Day's NAV, market closing price or bid/ask price, the premium or discount versus NAV, and the median bid-ask spread for the Fund's most recent fiscal year.
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