Nasdaq Pushes Ether Swaps for Ethereum Trust Shares in SEC Review
Published Date: 7/14/2025
Notice
Summary
The Nasdaq Stock Market wants to change the rules for the iShares Ethereum Trust so investors can trade shares by swapping actual Ethereum instead of cash. They’re also adding a new Ethereum custodian and updating the Trust’s name. This change could make trading smoother and might affect how quickly shares are created or redeemed, with the SEC taking more time to review the update.
Analyzed Economic Effects
6 provisions identified: 2 benefits, 1 costs, 3 mixed.
In‑Kind Ether Creations and Redemptions
The iShares Ethereum Trust would be allowed to create and redeem Baskets of 40,000 Shares (or multiples) using actual ether instead of only cash. Authorized Participants may submit in‑kind orders by the In‑Kind Order Cutoff Time (initially 3:59 p.m. ET on trade date) and will deliver or receive ether into the Trust's Trading Account on settlement date.
Use of Trade Credits from Coinbase Credit, Inc.
The Trust may borrow Trade Credits (cash or ether) from Coinbase Credit, Inc. (an affiliate of the Prime Execution Agent) under a Trade Financing Agreement to permit the Trust to buy or sell ether on trade date and then repay the Trade Credits on settlement date when cash or ether is received.
Order Cutoff Times for Cash vs. In‑Kind
The Trust will use different order cutoff times: cash creation/redemption orders must be submitted by the Cash Order Cutoff Time (initially 6:00 p.m. ET on the business day prior to trade date), while in‑kind creation/redemption orders must be submitted by the In‑Kind Order Cutoff Time (initially 3:59 p.m. ET on the trade date).
Basket Size Requirement Remains 40,000 Shares
The Trust issues and redeems Shares only in blocks of 40,000 Shares (a "Basket") or integral multiples thereof; Baskets are issued or redeemed in exchange for ether and/or cash determined by the Trustee each trading day.
Price‑Difference Responsibility for Authorized Participants
For cash creations/redemptions and certain in‑kind fallback scenarios, the Authorized Participant is explicitly responsible for the dollar cost if the price realized in buying or selling ether is worse than the ether price used to calculate NAV on trade date; conversely, the Authorized Participant keeps the dollar benefit if the realized price is more favorable than the NAV price.
Additional Ether Custodian and Cold‑Storage Keys
The proposal adds an additional ether custodian for the Trust and states that the Ether Custodian will keep all private keys for the Trust's ether held in the Custody Account in cold storage (offline), noting that those systems may not be cost‑effective for many investors to access directly.
Personalized for You
How does this regulation affect your finances?
Personalize government policy and PRIA will tell you what this federal register document means for your household, plus every other regulation we track. PRIA reads each provision against your financial profile to show you exactly what matters to your wallet.
Key Dates
Department and Agencies
Related Federal Register Documents
2026-17183, Regulation Crypto Assets
The Securities and Exchange Commission ("Commission") is proposing new rules to create a tailored offering regime for certain investment contracts involving crypto assets. The proposed offering regime is intended to facilitate capital formation and accommodate innovation within the crypto asset markets while, at the same time, ensuring that investors are adequately protected and provided with the information they need to make informed investment decisions. The proposed rules would be set forth in a new regulation titled "Regulation Crypto Assets" and would include two exemptions from the registration requirements of section 5 of the Securities Act of 1933. The first exemption would permit offerings of up to $5 million during a four-year period. The second exemption would permit offerings of up to $75 million during each 12-month period. Under both exemptions, issuers would be required to make certain principles-based narrative disclosures available to their investors. In addition, issuers under the second exemption would be required to provide financial statements and would be subject to ongoing reporting requirements. Issuers that rely on these exemptions would remain subject to the antifraud and antimanipulation provisions of the Federal securities laws. The proposed rules also would include a conditional safe harbor from the term "investment contract" in the definitions of "security" in the Securities Act of 1933 and the Securities Exchange Act of 1934. If the conditions of that proposed safe harbor are satisfied, then a crypto asset would be deemed not to be subject to an investment contract for purposes of those definitions of "security."
2026-12163, The Trade-Through Rule and Locked and Crossed Markets Provisions of Regulation NMS
The SEC wants to scrap some old rules that stop stocks from being traded at worse prices and prevent confusing market quotes. This change affects stock traders and exchanges, aiming to simplify trading and possibly speed things up. If you want to share your thoughts, you’ve got until August 17, 2026, so don’t miss out!
2026-10373, Registered Offering Reform
The SEC wants to make it easier and cheaper for more companies to sell their stocks and bonds to the public. They’re opening up special forms and benefits to more businesses, updating rules to be more modern, and cutting red tape by overriding some state rules. If you’re a company planning to raise money, these changes could speed things up and save you money, with feedback due by July 27, 2026.
2026-10222, Enhancement of Emerging Growth Company Accommodations and Simplification of Filer Status for Reporting Companies
The SEC is making it easier for companies that report their finances by simplifying their categories into just two groups: big and small filers. Smaller companies, including emerging growth ones, will get more time to file reports and enjoy simpler rules, while big companies keep stricter standards. These changes aim to save time and money, with feedback open until July 20, 2026.
2026-07651, Concept Release on Consolidated Audit Trail and Other Audit Trails and Data Sources
The SEC wants your thoughts on how it tracks stock market trades using the Consolidated Audit Trail and other data tools. They’re thinking about updating rules to keep up with new tech, privacy, and security needs, and to make sure the system is fair and cost-effective. If you’re involved in the stock market or data tracking, speak up by June 22, 2026!
2026-17283, Self-Regulatory Organizations; ICE Clear Credit LLC; Order Approving Proposed Rule Change Relating to the CDS Instrument On-Boarding Policies and Procedures
ICE Clear Credit LLC is updating how it adds new credit default swap (CDS) contracts for clearing. This change makes the process clearer and smoother for everyone involved, including the companies that use these contracts. The update kicks in soon and helps keep things running efficiently without extra costs.
Previous / Next Documents
Previous: 2025-13071, Self-Regulatory Organizations; NYSE National, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Establish Fees for Industry Members Related to Reasonably Budgeted Costs of the National Market System Plan Governing the Consolidated Audit Trail for the Period From July 1, 2025 Through December 31, 2025
Starting July 1, 2025, NYSE National is setting a new fee for industry members to help cover the costs of the Consolidated Audit Trail (CAT) system. This fee is tiny—just $0.000009 per share traded—and will last through the end of the year. Brokers will get their first bill in August based on July trades, helping split the CAT costs fairly for the next six months.
Next: 2025-13073, Self-Regulatory Organizations; Cboe BYX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Introduce a Small Retail Broker Hosted Solutions Program and To Update the Existing Eligibility Requirements for the Small Retail Brokerage Distribution Program for the Cboe One Summary Feed and BYX Top Data Feed
Cboe BYX Exchange is rolling out a new Small Retail Broker Hosted Solutions Program and updating who can join the Small Retail Brokerage Distribution Program for their popular data feeds. This means small retail brokers get fresh, easier ways to access important market data starting now, with no delays. If you’re a small broker, these changes could save you money and boost your data game!