TechFlow, May 22 — According to U.S. Securities and Exchange Commission (SEC) filings, Nasdaq has submitted a rule change application to the SEC seeking approval to allow in-kind creation and redemption for the iShares Ethereum Trust.
The proposed changes include adding Anchorage Digital Bank as an additional Ethereum custodian; permitting authorized participants to create and redeem shares through in-kind Ethereum transfers as an alternative to the current cash-based process; and renaming the fund to iShares Ethereum Trust ETF.
Nasdaq stated that adding a second custodian would help mitigate risks associated with reliance on a single third-party service provider. The in-kind creation and redemption mechanism is expected to improve operational efficiency by enabling authorized participants to independently manage the acquisition or disposal of underlying Ethereum assets, thereby reducing market impact.
