#EthereumSecurityInitiative Nasdaq has proposed a rule change to the Securities and Exchange Commission (SEC) to list and trade shares of the iShares Ethereum Trust under Nasdaq Rule 5711(d), Commodity-Based Trust Shares. This proposal aims to allow the creation of a spot Ethereum exchange-traded fund (ETF) on the Nasdaq exchange.
*Key Aspects of the Proposal:
- *Net Asset Value (NAV) Calculation*: The ETF's NAV will be determined based on the total assets, including Ethereum (ETH) and cash, minus total liabilities. However, the NAV calculation may not be consistent with US generally accepted accounting principles (GAAP).
- *Authority*: iShares Delaware Trust Sponsor will have exclusive authority to determine the ETF's NAV.
- *Listing and Trading*: The shares of the iShares Ethereum Trust will be listed and traded on the Nasdaq exchange under the Commodity-Based Trust Shares rule.¹
*Background:
- *Filing History*: Nasdaq initially filed the proposal with the SEC on November 21, 2023, and later amended it on April 23, 2024.
- *Public Consultation*: The SEC opened a public consultation for the proposed rule change on December 11, 2023, seeking feedback from interested parties.
The proposal is currently under review by the SEC, and its approval would pave the way for the listing and trading of the iShares Ethereum Trust on the Nasdaq exchange.$ETH
