Cboe Wants to Swap Real Bitcoin for ETF Shares Directly
Published Date: 7/25/2025
Notice
Summary
Cboe BZX Exchange wants to update the rules for two popular crypto ETFs—the ARK 21Shares Bitcoin ETF and the 21Shares Core Ethereum ETF—so investors can trade shares by swapping actual crypto assets instead of just cash. This change makes trading smoother and could save money on fees. The SEC is reviewing the proposal now, and if approved, it’ll kick in soon, helping crypto fans and traders alike.
Analyzed Economic Effects
2 provisions identified: 2 benefits, 0 costs, 0 mixed.
Bitcoin ETF: Allow In‑Kind Creations
The ARK 21Shares Bitcoin ETF will be allowed to create and redeem shares by accepting bitcoin (in‑kind) as well as cash. Creations/redemptions occur in blocks of 5,000 Shares; purchase orders must be placed by 12:00 p.m. Eastern Time and NAV is determined at 4:00 p.m. ET. If an authorized participant fails to deliver bitcoin on settlement, they may (1) cancel the order, (2) delay settlement, or (3) let the Trust buy the bitcoin and pay the dollar cost difference (they bear any increase; they keep any savings).
Ethereum ETF: Allow In‑Kind Creations
The 21Shares Core Ethereum ETF will be allowed to create and redeem shares by accepting ether (in‑kind) as well as cash. Creations/redemptions occur in blocks of 10,000 Shares; purchase orders must be placed by 12:00 p.m. Eastern Time and NAV is determined at 4:00 p.m. ET. If an authorized participant fails to deliver ether on settlement, they may (1) cancel the order, (2) delay settlement, or (3) let the Trust buy the ether and pay the dollar cost difference (they bear any increase; they keep any savings).
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Previous: 2025-14029 — Self-Regulatory Organizations; The Nasdaq Stock Market LLC; Notice of Designation of a Longer Period for Commission Action on a Proposed Rule Change To List and Trade Shares of 21Shares SUI ETF Under Nasdaq Rule 5711(d) (Commodity-Based Trust Shares)
The SEC is taking extra time to review Nasdaq’s plan to list and trade shares of the 21Shares SUI ETF, a new commodity-based fund. This means investors and the market will wait until September 8, 2025, for a final decision. The delay helps ensure the SEC carefully considers all details before giving the green light or a no-go.
Next: 2025-14031 — Self-Regulatory Organizations; Cboe BZX Exchange, Inc.; Notice of Filing of a Proposed Rule Change, as Modified by Amendment No. 1, To Amend the Rule Governing the Listing and Trading of the Fidelity Wise Origin Bitcoin Fund and the Fidelity Ethereum Fund To Permit In-Kind Creations and Redemptions
The Cboe BZX Exchange wants to update the rules for trading the Fidelity Wise Origin Bitcoin Fund and Fidelity Ethereum Fund. They’re allowing investors to create and redeem shares by exchanging the actual cryptocurrencies instead of cash, which can make trading smoother and cheaper. This change could start soon and might save money for folks investing in these funds.