On 10 June 2025, the United States Securities and Exchange Commission (US SEC) issued an order instituting proceedings to determine whether to approve or disapprove a proposed rule change filed by NYSE Arca, Inc. The proposed change seeks to list and trade shares of the Bitwise Bitcoin and Ethereum ETF under NYSE Arca Rule 8.201-E, which governs commodity-based trust shares.
The proposal was filed on 19 February 2025 pursuant to Section 19(b)(1) of the United States Securities Exchange Act of 1934 and United States SEC Rule 19b-4. It was published for comment in the Federal Register on 12 March 2025. On 24 April 2025, the US SEC extended the initial decision period to 10 June 2025. With the latest order dated 10 June 2025, the US SEC has initiated formal proceedings under Section 19(b)(2)(B) of the United States Securities Exchange Act of 1934 to enable further analysis of the rule change.
The initiation of proceedings does not signal any conclusion regarding the merits of the proposal. Instead, the order is designed to allow for further assessment of whether the proposed rule change is consistent with Section 6(b)(5) of the United States Securities Exchange Act of 1934. This provision requires that exchange rules are designed to prevent fraud and manipulation, ensure fair trading, support the structure of a free and open market, and safeguard investor and public interests.
The US SEC has invited comments on whether the dual-asset nature of the trust raises any new or unique concerns not previously addressed in single-asset crypto trust filings. Public comments must address the sufficiency of the exchange’s justifications set out in the Federal Register notice and whether the rule change meets the statutory standards.
(Source: https://www.sec.gov/files/rules/sro/nysearca/2025/34-103215.pdf)
