United States of America: Closed Consultation for the filing of Nasdaq to List and Trade iShares Ethereum Trust Shares

On 20 May 2024, the Securities and Exchange Commission (SEC) closes its public consultation for the proposed rule change of Nasdaq Stock Market LLC (Nasdaq) to list and trade shares of the iShares Ethereum Trust under Nasdaq Rule 5711(d). The proposal outlines the operational structure of the Trust, including the roles of the sponsor, trustee, and custodians. Coinbase Custody Trust Company, LLC serves as the Ether Custodian. The creation and redemption of units is mentioned, as are the Net Asset Value and its function. In addition, related value calculations and indexes are explained. In order to ensure the integrity of the proposed rule change, the Commission must assess whether the proposal adheres to section 6(b)(5) of the Securities Exchange Act, which demands rules designed to prevent fraudulent and manipulative acts and practices. The NASDAQ asserts that the CME ETH Futures market constitutes a regulated market of significant size, mitigating manipulation concerns and enhancing investor protection, which supports the approval of their proposal. Finally, the Trust's publicly accessible website will provide comprehensive information, including the prior business day's NAV per share, Nasdaq's official closing price, calculations of premiums or discounts, distribution data of these premiums and discounts, the prospectus, and other key quantitative details. These will be updated daily to ensure transparency and accessibility for all market participants.