The Securities and Exchange Commission (SEC) is evaluating a rule change proposed by NYSE Arca to list and trade shares of the Bitwise 10 Crypto Index Fund, which primarily deals with digital currencies like Bitcoin and Ethereum. This fund, operating under proposed NYSE Arca Rule 8.800-E, will not use derivatives, thus minimizing counterparty risks and will only handle digital assets and cash. The SEC will decide on the rule change by either approving, disapproving, or investigating further within a set timeframe. Interested parties are invited to submit their comments on this proposal to the SEC.
Simple Explanation
The SEC is thinking about letting a company called NYSE Arca offer a special box of digital money, like Bitcoin, called the Bitwise 10 Crypto Index Fund. This box won't use tricky things called derivatives, which makes it safer, and people can tell the SEC what they think about this plan.