The Cboe BZX Exchange, Inc. has proposed changes to the rules governing the Fidelity Wise Origin Bitcoin Fund and the Fidelity Ethereum Fund to allow for in-kind creation and redemption of shares. Previously, transactions could only be handled in cash, but now they can also be done using bitcoin or ether, depending on the fund, which is aimed at making the process more efficient for participants. The proposal emphasizes that these changes are intended to be beneficial by letting authorized participants handle the purchase and sale of the digital currencies themselves. This proposed rule change will be reviewed by the Securities and Exchange Commission, and comments from the public are being solicited until March 18, 2025.
Simple Explanation
The Cboe BZX Exchange wants to change the rules so that people can trade parts of two special digital money baskets, one with Bitcoin and the other with Ethereum, using the actual digital money instead of just cash. This change is supposed to make things easier and faster for the people involved and everyone can tell the big decision-makers what they think about this plan by March 18, 2025.