The Securities and Exchange Commission received a proposal from the Cboe BZX Exchange, Inc. to change the rules for the Franklin Bitcoin ETF, Franklin Ethereum ETF, and the Franklin Crypto Index ETF to allow in-kind creations and redemptions. This change would let authorized participants use Bitcoin and Ethereum instead of cash to create or redeem shares, potentially making the funds operate more efficiently by reducing market impact. The proposal aims to improve the way these funds are traded by allowing more flexibility in handling Bitcoin and Ethereum, thus benefiting both the market and investors. The Commission is asking for public comments on this proposal before making a decision.
Simple Explanation
The Cboe BZX Exchange wants to change how people can buy and sell shares in some funds by letting them use things like Bitcoin and Ethereum, instead of just cash, to make things work better and easier. They are asking people what they think about this idea before deciding.