Ethereum Trust Gets Green Light for Crypto-Only Share Swaps
Published Date: 5/28/2025
Notice
Summary
Nasdaq wants to let the iShares Ethereum Trust do 'in-kind' creations and redemptions, meaning they can swap actual Ethereum instead of cash when adding or removing shares. This change helps the Trust work smoother and updates some details like adding a new custodian and tweaking the Trust’s name. Investors and traders in these shares should watch for this update, which could make trading more efficient starting soon after approval.
Analyzed Economic Effects
3 provisions identified: 3 benefits, 0 costs, 0 mixed.
Allow In-Kind ETF Creations and Redemptions
The iShares Ethereum Trust would be allowed to create and redeem Baskets of shares in-kind using actual ether instead of cash as an alternative to the current cash-only process. A Basket is 40,000 Shares, the in-kind order cutoff time will initially be 3:59 p.m. ET on trade date, and cash creations have a Cash Order Cutoff Time initially 6:00 p.m. ET on the business day prior to trade date.
Add Anchorage as Alternative Ether Custodian
The Trust would add Anchorage Digital Bank N.A. as an additional ether custodian (an alternative to the existing Ether Custodian). Anchorage is a national trust bank chartered by the Office of the Comptroller of the Currency and would be bound by the Trust's custody representations.
Trust Name Change to 'iShares Ethereum Trust ETF'
The Trust’s name would change to the iShares Ethereum Trust ETF to align with its registration statement. The name change is intended to promote clarity and transparency with respect to the Trust's name.
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