SEC Probes Crypto ETF Swaps: Bitcoin or Bust?
Published Date: 5/20/2025
Notice
Summary
The Cboe BZX Exchange wants to change the rules for trading shares of the ARK 21Shares Bitcoin and Ethereum ETFs to allow in-kind creations and redemptions, which means swapping actual crypto assets instead of cash. This could make trading smoother and possibly save money for investors. The SEC is now reviewing this change and will decide soon if it’s a go or no-go.
Analyzed Economic Effects
1 provisions identified: 0 benefits, 0 costs, 1 mixed.
Crypto ETFs: In‑Kind Creation Proposed
You may be affected if you own or trade shares of the ARK 21Shares Bitcoin ETF or the 21Shares Core Ethereum ETF. The Exchange proposed to allow in‑kind creations and redemptions of the Trusts' bitcoin and ether, and the SEC instituted proceedings to review that proposal on May 14, 2025; public comments are due June 10, 2025 (rebuttals due June 24, 2025).
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Previous: 2025-08921, Self-Regulatory Organizations; Cboe BZX Exchange, Inc.; Notice of Designation of a Longer Period for Commission Action on a Proposed Rule Change, as Modified by Amendment No. 1, To List and Trade Shares of the Osprey Bitcoin Trust Under BZX Rule 14.11(e)(4), Commodity-Based Trust Shares
The SEC is taking extra time to review Cboe BZX Exchange’s plan to list and trade shares of the Osprey Bitcoin Trust, a new way to invest in Bitcoin through the stock market. This means investors and the exchange will wait longer—until July 1, 2025—for a final decision. No money changes hands yet, but this move could open new doors for Bitcoin investing if approved.
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Starting May 1, 2025, Cboe Exchange is changing the fees for Market-Maker orders done on the trading floor for stocks, ETFs, and indexes. These updates tweak how much Market-Makers and Trading Permit Holders pay, aiming to keep Cboe competitive and fair. If you trade or work as a Market-Maker on Cboe’s floor, these fee changes could affect your costs right away.