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Notice2024-11711

Self-Regulatory Organizations; Cboe BZX Exchange, Inc.; Notice of Filing of Amendment No. 1 to a Proposed Rule Change To List and Trade Shares of the Invesco Galaxy Ethereum ETF Under BZX Rule 14.11(e)(4), Commodity-Based Trust Shares

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Published

May 29, 2024

Issuing agencies

Securities and Exchange Commission

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<title>Federal Register, Volume 89 Issue 104 (Wednesday, May 29, 2024)</title>
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[Federal Register Volume 89, Number 104 (Wednesday, May 29, 2024)]
[Notices]
[Pages 46543-46556]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-11711]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-100219; File No. SR-CboeBZX-2023-087]

Self-Regulatory Organizations; Cboe BZX Exchange, Inc.; Notice of
Filing of Amendment No. 1 to a Proposed Rule Change To List and Trade
Shares of the Invesco Galaxy Ethereum ETF Under BZX Rule 14.11(e)(4),
Commodity-Based Trust Shares

May 22, 2024.
On October 20, 2023, Cboe BZX Exchange, Inc. (``BZX'' or
``Exchange'') filed with the Securities and Exchange Commission
(``Commission''), pursuant to Section 19(b)(1) of the Securities
Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 thereunder,\2\ a
proposed rule change to list and trade shares (``Shares'') of the
Invesco Galaxy Ethereum ETF (``Trust'') under BZX Rule 14.11(e)(4),
Commodity-Based Trust Shares. The proposed rule change was published
for comment in the Federal Register on November 8, 2023.\3\

[[Page 46544]]

On December 13, 2023, pursuant to Section 19(b)(2) of the Act,\4\ the
Commission designated a longer period within which to approve the
proposed rule change, disapprove the proposed rule change, or institute
proceedings to determine whether to disapprove the proposed rule
change.\5\ On February 6, 2024, the Commission instituted proceedings
under Section 19(b)(2)(B) of the Act \6\ to determine whether to
approve or disapprove the proposed rule change.\7\ On May 6, 2024, the
Commission designated a longer period for Commission action on the
proposed rule change.\8\ On May 21, 2024, the Exchange filed Amendment
No. 1 to the proposed rule change as described in Items I and II below,
which Items have been prepared by the Exchange. Amendment No. 1 amended
and replaced the proposed rule change in its entirety. The Commission
is publishing this notice to solicit comments on the proposed rule
change, as modified by Amendment No. 1, from interested persons.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ See Securities Exchange Act Release No. 98846 (Nov. 2,
2023), 88 FR 77116. Comments on the proposed rule change are
available at: <a href="https://www.sec.gov/comments/sr-cboebzx-2023-087/srcboebzx2023087.htm">https://www.sec.gov/comments/sr-cboebzx-2023-087/srcboebzx2023087.htm</a>.
\4\ 15 U.S.C. 78s(b)(2).
\5\ See Securities Exchange Act Release No. 99151, 88 FR 87822
(Dec. 19, 2023).
\6\ 15 U.S.C. 78s(b)(2)(B).
\7\ See Securities Exchange Act Release No. 99479, 89 FR 9880
(Feb. 12, 2024).
\8\ See Securities Exchange Act Release No. 100065, 89 FR 40516
(May 10, 2024).
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

Cboe BZX Exchange, Inc. (``BZX'' or the ``Exchange'') is filing
with the Securities and Exchange Commission (``Commission'' or ``SEC'')
a proposed rule change to list and trade shares of the Invesco Galaxy
Ethereum ETF (the ``Trust''),\9\ under BZX Rule 14.11(e)(4), Commodity-
Based Trust Shares.
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\9\ The Trust was formed as a Delaware statutory trust on
September 27, 2023, and is operated as a grantor trust for U.S.
federal tax purposes. The Trust has no fixed termination date.
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The text of the proposed rule change is also available on the
Exchange's website (<a href="http://markets.cboe.com/us/equities/regulation/rule_filings/bzx/">http://markets.cboe.com/us/equities/regulation/rule_filings/bzx/</a>), at the Exchange's Office of the Secretary, and at
the Commission's Public Reference Room.

II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change

In its filing with the Commission, the Exchange included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The Exchange has prepared summaries, set forth in
sections A, B, and C below, of the most significant aspects of such
statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change

1. Purpose
This Amendment No. 1 to SR-CboeBZX-2023-087 amends and replaces in
its entirety the proposal as originally submitted on October 20, 2023.
The Exchange submits this Amendment No. 1 in order to clarify certain
points and add additional details to the proposal.
The Exchange proposes to list and trade the Shares under BZX Rule
14.11(e)(4),\10\ which governs the listing and trading of Commodity-
Based Trust Shares on the Exchange.\11\ Invesco Capital Management is
the sponsor of the Trust (``Sponsor''). The Shares will be registered
with the Commission by means of the Trust's registration statement on
Form S-1 (the ``Registration Statement'').\12\
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\10\ The Commission approved BZX Rule 14.11(e)(4) in Securities
Exchange Act Release No. 65225 (August 30, 2011), 76 FR 55148
(September 6, 2011) (SR-BATS-2011-018).
\11\ Any of the statements or representations regarding the
index composition, the description of the portfolio or reference
assets, limitations on portfolio holdings or reference assets,
dissemination and availability of index, reference asset, and
intraday indicative values, or the applicability of Exchange listing
rules specified in this filing to list a series of Other Securities
(collectively, ``Continued Listing Representations'') shall
constitute continued listing requirements for the Shares listed on
the Exchange.
\12\ On September 29, 2023, the Trust filed with the Commission
an initial registration statement (the ``Registration Statement'')
on Form S-1 under the Securities Act of 1933 (15 U.S.C. 77a). The
description of the operation of the Trust herein is based, in part,
on the Registration Statement. The Registration Statement is not yet
effective and the Shares will not trade on the Exchange until such
time that the Registration Statement is effective.
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The Exchange proposes to list and trade the Shares of the Invesco
Galaxy Ethereum ETF \13\ under BZX Rule 14.11(e)(4),\14\ which governs
the listing and trading of Commodity-Based Trust Shares on the
Exchange.\15\
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\13\ On September 29, 2023, the Trust filed with the Commission
an initial registration statement (the ``Registration Statement'')
on Form S-1 under the Securities Act of 1933 (15 U.S.C. 77a). The
description of the operation of the Trust herein is based, in part,
on the Registration Statement. The Registration Statement is not yet
effective and the Shares will not trade on the Exchange until such
time that the Registration Statement is effective.
\14\ The Commission approved BZX Rule 14.11(e)(4) in Securities
Exchange Act Release No. 65225 (August 30, 2011), 76 FR 55148
(September 6, 2011) (SR-BATS-2011-018).
\15\ All statements and representations made in this filing
regarding (a) the description of the portfolio, (b) limitations on
portfolio holdings or reference assets, or (c) the applicability of
Exchange rules and surveillance procedures shall constitute
continued listing requirements for listing the Shares on the
Exchange.
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The Commission has historically approved or disapproved exchange
filings to list and trade series of Trust Issued Receipts, including
spot-based Commodity-Based Trust Shares, on the basis of whether the
listing exchange has in place a comprehensive surveillance sharing
agreement with a regulated market of significant size related to the
underlying commodity to be held.\16\ With this in mind, the Chicago
Mercantile Exchange (``CME'') ether futures (``Ether Futures'') market,
which launched in February 2021, is the proper market to consider in
determining whether there is a related regulated market of significant
size.
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\16\ See Securities Exchange Act Release No. 78262 (July 8,
2016), 81 FR 78262 (July 14, 2016) (the ``Winklevoss Proposal'').
The Winklevoss Proposal was subsequently disapproved by the
Commission. See Securities Exchange Act Release No. 83723 (July 26,
2018), 83 FR 37579 (August 1, 2018) (the ``Winklevoss Order'').
Prior orders from the Commission have pointed out that in every
prior approval order for Commodity-Based Trust Shares, there has
been a derivatives market that represents the regulated market of
significant size, generally a Commodity Futures Trading Commission
(the ``CFTC'') regulated futures market. Further to this point, the
Commission's prior orders have noted that the spot commodities and
currency markets for which it has previously approved spot ETPs are
generally unregulated and that the Commission relied on the
underlying futures market as the regulated market of significant
size that formed the basis for approving the series of Currency and
Commodity-Based Trust Shares, including gold, silver, platinum,
palladium, copper, and other commodities and currencies. The
Commission specifically noted in the Winklevoss Order that the
approval order issued related to the first spot gold ETP ``was based
on an assumption that the currency market and the spot gold market
were largely unregulated.'' See Winklevoss Order at 37592. As such,
the regulated market of significant size test does not require that
the spot ether market be regulated in order for the Commission to
approve this proposal, and precedent makes clear that an underlying
market for a spot commodity or currency being a regulated market
would actually be an exception to the norm. These largely
unregulated currency and commodity markets do not provide the same
protections as the markets that are subject to the Commission's
oversight, but the Commission has consistently looked to
surveillance sharing agreements with the underlying futures market
in order to determine whether such products were consistent with the
Act.
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Recently, the Commission issued an order granting approval for
proposals to list bitcoin-based commodity trust and bitcoin-based trust
issued receipts (these proposed funds are nearly identical to the
Trust, but proposed to hold bitcoin instead of ether) (``Spot Bitcoin
ETPs'').\17\ By way of background, in

[[Page 46545]]

2022 the Commission disapproved proposals \18\ to list Spot Bitcoin
ETPs, including a proposal sponsored by Grayscale Investments, LLC
(``Grayscale'').\19\ Grayscale appealed the decision with the U.S.
Court of Appeals for the D.C. Circuit, which held that the Commission
had failed to adequately explain its reasoning that the proposing
exchange had not established that the CME bitcoin futures market was a
market of significant size related to spot bitcoin, or that the ``other
means'' asserted were sufficient to satisfy the statutory standard. As
a result, the court vacated the Grayscale Order and remanded the matter
to the Commission.\20\ In considering the remand of the Grayscale Order
and Spot Bitcoin ETPs, the Commission determined in the Spot Bitcoin
ETP Approval Order that the CME bitcoin futures (``Bitcoin Futures'')
market is highly correlated to spot bitcoin. Specifically, the
Commission stated:
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\17\ See Exchange Act Release No. 99306 (January 10, 2024), 89
FR 3008 (January 17, 2024) (Self-Regulatory Organizations; NYSE
Arca, Inc.; The Nasdaq Stock Market LLC; Cboe BZX Exchange, Inc.;
Order Granting Accelerated Approval of Proposed Rule Changes, as
Modified by Amendments Thereto, To List and Trade Bitcoin-Based
Commodity-Based Trust Shares and Trust Units) (the ``Spot Bitcoin
ETP Approval Order'').
\18\ See Order Disapproving a Proposed Rule Change To List and
Trade Shares of the VanEck Bitcoin Trust Under BZX Rule 14.11(e)(4),
Commodity-Based Trust Shares, Securities Exchange Act Release No.
97102 (Mar. 10, 2023), 88 FR 16055 (Mar. 15, 2023) (SR-CboeBZX-2022-
035) (``VanEck Order II'') and n.11 therein for the complete list of
previous proposals.
\19\ See Securities Exchange Act Release No. 95180 (June 29,
2022) 87 FR 40299 (July 6, 2022) (SR-NYSEArca-2021-90) (Order
Disapproving a Proposed Rule Change, as Modified by Amendment No. 1,
to List and Trade Shares of Grayscale Bitcoin Trust Under NYSE Arca
Rule 8.201-E (Commodity-Based Trust Shares) (the ``Grayscale
Order'').
\20\ See Grayscale Investments, LLC v. SEC, 82 F.4th 1239 (D.C.
Cir. 2023).

[B]ased on the record before the Commission and the improved
quality of the correlation analysis in the record . . . the
Commission is able to conclude that fraud or manipulation that
impacts prices in spot bitcoin markets would likely similarly impact
CME bitcoin futures prices. And because the CME's surveillance can
assist in detecting those impacts on CME bitcoin futures prices, the
Exchanges' comprehensive surveillance-sharing agreement with the
CME-a U.S. regulated market whose bitcoin futures market is
consistently highly correlated to spot bitcoin, albeit not of
``significant size'' related to spot bitcoin--can be reasonably
expected to assist in surveilling for fraudulent and manipulative
acts and practices in the specific context of the [p]roposals.\21\
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\21\ See the Spot Bitcoin ETP Approval Order at 3011-3012.

As further discussed below, both the Exchange and the Sponsor
believe that this proposal and the included analysis are sufficient to
establish that the CME Ether Futures market represents a regulated
market of significant size and that this proposal should be approved.

Background

Ethereum is free software that is hosted on computers distributed
throughout the globe. It employs an array of logic, called a protocol,
to create a unified understanding of ownership, commercial activity,
and business logic. This allows users to engage in commerce without the
need to trust any of its participants or counterparties. Ethereum code
creates verifiable and unambiguous rules that assign clear, strong
property rights to create a platform for unrestrained business
formation and free exchange. It is widely understood that no single
intermediary or entity operates or controls the Ethereum network
(referred to as ``decentralization''), the transaction validation and
recordkeeping infrastructure of which is collectively maintained by a
disparate user base. The Ethereum network allows people to exchange
tokens of value, referred to as ``ether'' or ``ETH'', which are
recorded on a distributed public recordkeeping system or ledger known
as a blockchain (the ``Ethereum Blockchain''), and which can be used to
pay for goods and services, including computational power on the
Ethereum network, or converted to fiat currencies, such as the U.S.
dollar, at rates determined on digital asset platforms or in individual
peer-to-peer transactions. Furthermore, by combining the recordkeeping
system of the Ethereum Blockchain with a flexible scripting language
that is programmable and can be used to implement sophisticated logic
and execute a wide variety of instructions, the Ethereum network is
intended to act as a foundational infrastructure layer on top of which
users can build their own custom software programs, as an alternative
to centralized web servers. In theory, anyone can build their own
custom software programs on the Ethereum network. In this way, the
Ethereum network represents a project to expand blockchain deployment
beyond a limited-purpose, peer-to-peer private money system into a
flexible, distributed alternative computing infrastructure that is
available to all. On the Ethereum network, ETH is the unit of account
that users pay for the computational resources consumed by running
their programs.
Heretofore, U.S. retail investors have lacked a U.S. regulated,
U.S. exchange-traded vehicle to gain exposure to ETH. Instead current
options include: (i) facing the counter-party risk, legal uncertainty,
technical risk, and complexity associated with accessing spot ether; or
(ii) over-the-counter ether funds (``OTC ETH Funds'') with high
management fees and potentially volatile premiums and discounts.
Meanwhile, investors in other countries, including Germany, Switzerland
and France, are able to use more traditional exchange listed and traded
products (including exchange-traded funds holding physical ETH) to gain
exposure to ETH. Investors across Europe have access to products which
trade on regulated exchanges and provide exposure to a broad array of
spot crypto assets. U.S. investors, by contrast, are left with fewer
and more risky means of getting ether exposure.\22\
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\22\ The Exchange notes that the list of countries above is not
exhaustive and that securities regulators in a number of additional
countries have either approved or otherwise allowed the listing and
trading of Spot Ether ETPs.
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To this point, the lack of an ETP that holds spot ETH (a ``Spot
Ether ETP'') exposes U.S. investor assets to significant risk because
investors that would otherwise seek cryptoasset exposure through a Spot
Ether ETP are forced to find alternative exposure through generally
riskier means. For example, investors in OTC ETH Funds are not afforded
the benefits and protections of regulated Spot Ether ETPs, resulting in
retail investors suffering losses due to drastic movements in the
premium/discount of OTC ETH Funds. An investor who purchased the
largest OTC ETH Fund in January 2021 and held the position at the end
of 2022 would have suffered a 69% loss due to the premium/discount,
even if the price of ETH did not change. Many retail investors likely
suffered losses due to this premium/discount in OTC ETH Fund trading;
all such losses could have been avoided if a Spot Ether ETP had been
available. Additionally, many U.S. investors that held their digital
assets in accounts at FTX,\23\ Celsius Network LLC,\24\ BlockFi
Inc.\25\ and Voyager Digital Holdings, Inc.\26\ have become unsecured
creditors in the insolvencies of those entities. If a Spot Ether ETP
was available, it is likely that at least a portion of the billions of
dollars tied up in those proceedings would still reside in the
brokerage accounts of U.S. investors, having instead been invested in a
transparent, regulated, and well-understood structure--a Spot Ether
ETP. To this

[[Page 46546]]

point, approval of a Spot Ether ETP would represent a major win for the
protection of U.S. investors in the cryptoasset space. The Trust, like
all other series of Commodity-Based Trust Shares, is designed to
protect investors against the risk of losses through fraud and
insolvency that arise by holding digital assets, including ETH, on
centralized platforms.
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\23\ See FTX Trading Ltd., et al., Case No. 22-11068.
\24\ See Celsius Network LLC, et al., Case No. 22-10964.
\25\ See BlockFi Inc., Case No. 22-19361.
\26\ See Voyager Digital Holdings, Inc., et al., Case No. 22-
10943.
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Ether Futures ETFs
The Exchange and Sponsor applaud the Commission for allowing the
launch of ETFs registered under the Investment Company Act of 1940, as
amended (the ``1940 Act'') that provide exposure to ether primarily
through CME Ether Futures (``Ether Futures ETFs''). Allowing such
products to list and trade is a productive first step in providing U.S.
investors and traders with transparent, exchange-listed tools for
expressing a view on ether.
The structure of Ether Futures ETFs provides negative outcomes for
buy and hold investors as compared to a Spot Ether ETP. Specifically,
the cost of rolling CME Ether Futures contracts will cause the Ether
Futures ETFs to lag the performance of ether itself and, at over a
billion dollars in assets under management, would cost U.S. investors
significant amounts of money on an annual basis compared to Spot Ether
ETPs. Such rolling costs would not be required for Spot Ether ETPs that
hold ether. Further, Ether Futures ETFs could potentially hit CME
position limits, which would force an Ether Futures ETF to invest in
non-futures assets for ether exposure and cause potential investor
confusion and lack of certainty about what such Ether Futures ETFs are
actually holding to try to get exposure to ether, not to mention
completely changing the risk profile associated with such an ETF. While
Ether Futures ETFs represent a useful trading tool, they are clearly a
sub-optimal structure for U.S. investors that are looking for long-term
exposure to ether that will unnecessarily cost U.S. investors
significant amounts of money every year compared to Spot Ether ETPs and
the Exchange believes that any proposal to list and trade a Spot Ether
ETP should be reviewed by the Commission with this important investor
protection context in mind.
To the extent the Commission may view differential treatment of
Ether Futures ETFs and Spot Ether ETPs as warranted based on the
Commission's concerns about the custody of physical ether that a Spot
Ether ETP would hold (compared to cash-settled futures contracts),\27\
the Sponsor believes this concern is mitigated to a significant degree
by the custodial arrangements that the Trust has contracted with the
Custodian (as defined below) to provide, as further outlined below. In
the custody statement, the Commission stated that the fourth step that
a broker-dealer could take to shield traditional securities customers
and others from the risks and consequences of digital asset security
fraud, theft, or loss is to establish, maintain, and enforce reasonably
designed written policies, procedures, and controls for safekeeping and
demonstrating the broker-dealer has exclusive possession or control
over digital asset securities that are consistent with industry best
practices to protect against the theft, loss, and unauthorized and
accidental use of the private keys necessary to access and transfer the
digital asset securities the broker-dealer holds in custody. While
ether is not a security and the Custodian is not a broker-dealer, the
Sponsor believes that similar considerations apply to the Custodian's
holding of the Trust's ether. After diligent investigation, the Sponsor
believes that the Custodian's policies, procedures, and controls for
safekeeping, exclusively possessing, and controlling the Trust's ether
holdings are consistent with industry best practices to protect against
the theft, loss, and unauthorized and accidental use of the private
keys. As a trust company chartered by the New York Department of
Financial Services (``NYDFS''), the Sponsor notes that the Custodian is
subject to extensive regulation and has among longest track records in
the industry of providing custodial services for digital asset private
keys. Under the circumstances, therefore, to the extent the Commission
believes that its concerns about the risks of spot ether custody
justifies differential treatment of a Ether Futures ETF versus a Spot
Ether ETP, the Sponsor believes that the fact that the Custodian
employs the same types of policies, procedures, and safeguards in
handling spot ether that the Commission has stated that broker-dealers
should implement with respect to digital asset securities would appear
to weaken the justification for treating a Ether Futures ETF compared
to a Spot Ether ETP differently due to spot ether custody concerns.
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\27\ See, e.g., Division of Investment Management Staff, Staff
Statement on Funds Registered Under the Investment Company Act
Investing in the Bitcoin Futures Market, May 11, 2021 (``The Bitcoin
Futures market also has not presented the custody challenges
associated with some cryptocurrency-based investing because the
futures are cash-settled'').
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Based on the foregoing, the Exchange and Sponsor believe that any
objective review of the proposals to list Spot Ether ETPs compared to
the Ether Futures ETFs would lead to the conclusion that Spot Ether
ETPs should be available to U.S. investors and, as such, this proposal
and other comparable proposals to list and trade Spot Ether ETPs should
be approved by the Commission. Stated simply, U.S. investors will
continue to lose significant amounts of money from holding Ether
Futures ETFs as compared to Spot Ether ETPs, losses which could be
prevented by the Commission approving Spot Ether ETPs. Additionally,
any concerns related to preventing fraudulent and manipulative acts and
practices related to Spot Ether ETPs would apply equally to the spot
markets underlying the futures contracts held by an Ether Futures ETF.
Both the Exchange and Sponsor believe that the CME Ether Futures market
is a regulated market of significant size and that such manipulation
concerns are mitigated, as described extensively below. After allowing
the listing and trading of Ether Futures ETFs that hold primarily CME
Ether Futures, however, the only consistent outcome would be approving
Spot Ether ETPs on the basis that the CME Ether Futures market is a
regulated market of significant size.
Given the current landscape, approving this proposal (and others
like it) and allowing Spot Ether ETPs to be listed and traded alongside
Ether Futures ETFs and Spot Bitcoin ETPs would establish a consistent
regulatory approach, provide U.S. investors with choice in product
structures for ether exposure, and offer flexibility in the means of
gaining exposure to ether through transparent, regulated, U.S.
exchange-listed vehicles.
CME Ether Futures \28\
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\28\ Unless otherwise noted, all data and analysis presented in
this section and referenced elsewhere in the filing has been
provided by the Sponsor.
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CME began offering trading in CME Ether Futures in February 2021.
Each contract represents 50 ETH and is based on the CME CF Ether-Dollar
Reference Rate.\29\ The contracts trade and settle like other cash-
settled commodity futures contracts. Most measurable metrics related to
CME Ether Futures have generally trended up since launch,

[[Page 46547]]

although some metrics have slowed recently. For example, there were
76,293 CME Ether Futures contracts traded in July 2023 (approximately
$7.3 billion) compared to 70,305 ($11.1 billion) and 158,409 ($7.5
billion) contracts traded in July 2021, and July 2022 respectively.\30\
The Sponsor's research indicates daily correlation between the spot ETH
and the CME Ether Futures is 0.998 from the period of 9/1/22 through 9/
1/23.
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\29\ The CME CF Ether-Dollar Reference Rate is based on a
publicly available calculation methodology based on pricing sourced
from several crypto exchanges and trading platforms, including
Bitstamp, Coinbase, Gemini, itBit, Kraken, and LMAX Digital.
\30\ Source: CME, 7/31/23.
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The number of large open interest holders \31\ and unique accounts
trading CME Ether Futures have both increased, even in the face of
heightened Ether price volatility.
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\31\ A large open interest holder in CME Ether Futures is an
entity that holds at least 25 contracts, which is the equivalent of
1250 ether. At a price of approximately $1,867 per Ether on 7/31/
2023, more than 59 firms had outstanding positions of greater than
$2.3 million in CME Ether Futures.
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Section 6(b)(5) and the Applicable Standards

The Commission has approved numerous series of Trust Issued
Receipts,\32\ including Commodity-Based Trust Shares,\33\ to be listed
on U.S. national securities exchanges. In order for any proposed rule
change from an exchange to be approved, the Commission must determine
that, among other things, the proposal is consistent with the
requirements of Section 6(b)(5) of the Act, specifically including: (i)
the requirement that a national securities exchange's rules are
designed to prevent fraudulent and manipulative acts and practices;
\34\ and (ii) the requirement that an exchange proposal be designed, in
general, to protect investors and the public interest. The Exchange
believes that this proposal is consistent with the requirements of
Section 6(b)(5) of the Act and that this filing sufficiently

[[Page 46549]]

demonstrates that the CME Ether Futures market represents a regulated
market of significant size and that, on the whole, the manipulation
concerns previously articulated by the Commission are sufficiently
mitigated to the point that they are outweighed by quantifiable
investor protection issues that would be resolved by approving this
proposal.
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\32\ See Exchange Rule 14.11(f).
\33\ Commodity-Based Trust Shares, as described in Exchange Rule
14.11(e)(4), are a type of Trust Issued Receipt.
\34\ The Exchange believes that ETH is resistant to price
manipulation and that ``other means to prevent fraudulent and
manipulative acts and practices'' exist to justify dispensing with
the requisite surveillance sharing agreement. The geographically
diverse and continuous nature of ETH trading render it difficult and
prohibitively costly to manipulate the price of ETH. The
fragmentation across ETH platforms, the relatively slow speed of
transactions, and the capital necessary to maintain a significant
presence on each trading platform make manipulation of ETH prices
through continuous trading activity challenging. To the extent that
there are ETH platforms engaged in or allowing wash trading or other
activity intended to manipulate the price of ETH on other markets,
such pricing does not normally impact prices on other platforms
because participants will generally ignore markets with quotes that
they deem non-executable. Moreover, the linkage between the ETH
markets and the presence of arbitrageurs in those markets means that
the manipulation of the price of ETH on any single venue would
require manipulation of the global ETH price in order to be
effective. Arbitrageurs must have funds distributed across multiple
trading platforms in order to take advantage of temporary price
dislocations, thereby making it unlikely that there will be strong
concentration of funds on any particular ETH platform or OTC
platform. As a result, the potential for manipulation on a trading
platform would require overcoming the liquidity supply of such
arbitrageurs who are effectively eliminating any cross-market
pricing differences.
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(i) Designed To Prevent Fraudulent and Manipulative Acts and Practices
In order to meet this standard in a proposal to list and trade a
series of Commodity-Based Trust Shares, the Commission requires that an
exchange demonstrate that there is a comprehensive surveillance-sharing
agreement in place \35\ with a regulated market of significant size.
Both the Exchange and CME are members of the Intermarket Surveillance
Group (``ISG'').\36\ The only remaining issue to be addressed is
whether the CME Ether Futures market constitutes a market of
significant size, which both the Exchange and the Sponsor believe that
it does. The terms ``significant market'' and ``market of significant
size'' include a market (or group of markets) as to which: (a) there is
a reasonable likelihood that a person attempting to manipulate the ETP
would also have to trade on that market to manipulate the ETP, so that
a surveillance-sharing agreement would assist the listing exchange in
detecting and deterring misconduct; and (b) it is unlikely that trading
in the ETP would be the predominant influence on prices in that
market.\37\
---------------------------------------------------------------------------

\35\ As previously articulated by the Commission, ``The standard
requires such surveillance-sharing agreements since ``they provide a
necessary deterrent to manipulation because they facilitate the
availability of information needed to fully investigate a
manipulation if it were to occur.'' The Commission has emphasized
that it is essential for an exchange listing a derivative securities
product to enter into a surveillance- sharing agreement with markets
trading underlying securities for the listing exchange to have the
ability to obtain information necessary to detect, investigate, and
deter fraud and market manipulation, as well as violations of
exchange rules and applicable federal securities laws and rules. The
hallmarks of a surveillance-sharing agreement are that the agreement
provides for the sharing of information about market trading
activity, clearing activity, and customer identity; that the parties
to the agreement have reasonable ability to obtain access to and
produce requested information; and that no existing rules, laws, or
practices would impede one party to the agreement from obtaining
this information from, or producing it to, the other party.'' The
Commission has historically held that joint membership in the ISG
constitutes such a surveillance sharing agreement. See Securities
Exchange Act Release No. 88284 (February 26, 2020), 85 FR 12595
(March 3, 2020) (SR-NYSEArca-2019-39) (the ``Wilshire Phoenix
Disapproval'').
\36\ For a list of the current members and affiliate members of
ISG, see <a href="http://www.isgportal.com">www.isgportal.com</a>.
\37\ See Wilshire Phoenix Disapproval.
---------------------------------------------------------------------------

The Commission has also recognized that the ``regulated market of
significant size'' standard is not the only means for satisfying
Section 6(b)(5) of the act, specifically providing that a listing
exchange could demonstrate that ``other means to prevent fraudulent and
manipulative acts and practices'' are sufficient to justify dispensing
with the requisite surveillance-sharing agreement.\38\
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\38\ See Winklevoss Order at 37580. The Commission has also
specifically noted that it ``is not applying a `cannot be
manipulated' standard; instead, the Commission is examining whether
the proposal meets the requirements of the Exchange Act and,
pursuant to its Rules of Practice, places the burden on the listing
exchange to demonstrate the validity of its contentions and to
establish that the requirements of the Exchange Act have been met.''
Id. at 37582.
---------------------------------------------------------------------------

(a) Manipulation of the ETP
The significant market test requires that there is a reasonable
likelihood that a person attempting to manipulate the ETP would also
have to trade on that market to manipulate the ETP, so that a
surveillance-sharing agreement would assist the listing exchange in
detecting and deterring misconduct. In light of the similarly high
correlation between spot ETH/CME Ether Futures and spot bitcoin/CME
Bitcoin Futures, applying the same rationale that the Commission
applied to a Spot Bitcoin ETP in the Spot Bitcoin ETP Approval Order
also indicates that this test is satisfied for this proposal. As noted
above, in the Spot Bitcoin ETP Approval Order, the SEC concluded that:

. . .fraud or manipulation that impacts prices in spot bitcoin
markets would likely similarly impact CME bitcoin futures prices.
And because the CME's surveillance can assist in detecting those
impacts on CME bitcoin futures prices, the Exchanges' comprehensive
surveillance-sharing agreement with the CME. . .can be reasonably
expected to assist in surveilling for fraudulent and manipulative
acts and practices in the specific context of the [p]roposals.\39\
---------------------------------------------------------------------------

\39\ See the Spot Bitcoin ETP Approval Order at 3011-3012.

The assumptions from this statement are also true for CME Ether
Futures. CME Ether Futures pricing is based on pricing from spot ether
markets. The statement from the Spot Bitcoin ETP Approval Order that
the surveillance-sharing agreement with the CME ``can be reasonably
expected to assist in surveilling for fraudulent and manipulative acts
and practices in the specific context of the [p]roposals'' makes clear
that the Commission believes that CME's surveillance can capture the
effects of trading on the relevant spot markets on the pricing of CME
Bitcoin Futures. This same logic would extend to CME Ether Futures
markets where CME's surveillance would be able to capture the effects
of trading on the relevant spot markets on the pricing of CME Ether
Futures.
(b) Predominant Influence on Prices in Spot and Ether Futures
The Exchange and Sponsor also believe that trading in the Shares
would not be the predominant force on prices in the CME Ether Futures
market for a number of reasons. First, because the Trust would not hold
CME Ether Futures contracts, the only way that it could be the
predominant force on prices in that market is through the spot markets
that CME Ether Futures contracts use for pricing.\40\ The Sponsor notes
that ether total 24-hour spot trading volume has averaged $9.4 billion
over the year ending September 1, 2023.\41\ The Sponsor expects that
the Trust would represent a very small percentage of this daily trading
volume in the spot ether market even in its most aggressive projections
for the Trust's assets and, thus, the Trust would not have an impact on
the spot market and therefore could not be the predominant force on
prices in the CME Ether Futures market. Second, much like the CME
Bitcoin Futures market, the CME Ether Futures market has progressed and
matured significantly. As the U.S. Court of Appeals for the D.C.
Circuit found in its review of the Grayscale Order, ``Because the spot
market is deeper and more liquid than the futures market, manipulation
should be more difficult, not less.'' The Exchange and sponsor agree
with this sentiment and believe it applies equally to the spot ether
and CME Ether Futures markets.
---------------------------------------------------------------------------

\40\ This logic is reflected by the U.S. Court of Appeals for
the D.C. Circuit on its review of the Grayscale Order at 17-18. See
Grayscale Investments, LLC v. SEC, 82 F. 4th 1239 (D.C. Cir. 2023).
Specifically, the court found that ``Because Grayscale owns no
futures contracts, trading in Grayscale can affect the futures
market only through the spot market . . . But Grayscale holds just
3.4 percent of outstanding bitcoin, and the Commission did not
suggest Grayscale can dominate the price of bitcoin.''
\41\ Source: TokenTerminal.
---------------------------------------------------------------------------

[[Page 46550]]

Exchange and Sponsor believe that such conditions are present.
The Exchange believes that the proposal is designed to protect
investors and the public interest. Over the past several years, U.S.
investor exposure to ether through OTC ETH Funds has grown into the
tens of billions of dollars and more than a billion dollars of exposure
through Ether Futures ETFs. With that growth, so too has grown the
quantifiable investor protection issues to U.S. investors through roll
costs for Ether Futures ETFs and premium/discount volatility and
management fees for OTC ETH Funds. The Exchange believes that the
concerns related to the prevention of fraudulent and manipulative acts
and practices have been sufficiently addressed to be consistent with
the Act and, to the extent that the Commission disagrees with that
assertion, also believes that such concerns are now outweighed by these
investor protection concerns. As such, the Exchange believes that
approving this proposal (and comparable proposals) provides the
Commission with the opportunity to allow U.S. investors with access to
ether in a regulated and transparent exchange-traded vehicle that would
act to limit risk to U.S. investors by: (i) reducing premium and
discount volatility; (ii) reducing management fees through meaningful
competition; (iii) reducing risks and costs associated with investing
in Ether Futures ETFs and operating companies that are imperfect
proxies for ether exposure; and (iv) providing an alternative to
custodying spot ether.
Invesco Galaxy Ethereum ETF
Delaware Trust Company is the trustee (``Trustee''). The Bank of
New York Mellon will be the administrator (``Administrator'') and
transfer agent (``Transfer Agent''). As noted above, Coinbase Custody
Trust Company, LLC, is the Custodian and will be responsible for
custody of the Trust's ETH. The Bank of New York Mellon (the ``Cash
Custodian'') will act as custodian of the Trust's cash and cash
equivalents.\42\
---------------------------------------------------------------------------

\42\ Cash equivalents are short-term instruments with maturities
of less than 3 months.
---------------------------------------------------------------------------

According to the Registration Statement, each Share will represent
a fractional undivided beneficial interest and ownership in the Trust.
The Trust's assets will consist only of ETH, cash, and cash
equivalents.
According to the Registration Statement, the Trust is neither an
investment company registered under the Investment Company Act of 1940,
as amended,\43\ nor a commodity pool for purposes of the Commodity
Exchange Act (``CEA''), and neither the Trust nor the Sponsor is
subject to regulation as a commodity pool operator or a commodity
trading adviser in connection with the Shares.
---------------------------------------------------------------------------

\43\ 15 U.S.C. 80a-1.
---------------------------------------------------------------------------

Neither the Trust, nor the Sponsor, nor the Custodian, nor any
other person associated with the Trust will, directly or indirectly,
engage in action where any portion of the Trust's ETH becomes subject
to the Ethereum proof-of-stake validation or is used to earn additional
ETH or generate income or other earnings. The Trust will not acquire
and will disclaim any incidental right (``IR'') or IR asset received,
for example as a result of forks or airdrops, and such assets will not
be taken into account for purposes of determining NAV.
When the Trust sells or redeems its Shares, it will do so in cash
transactions in blocks of 5,000 Shares (a ``Creation Basket'') at the
Trust's net asset value (``NAV''). Authorized participants will
deliver, or facilitate the delivery of, cash to the Trust's account
with the Cash Custodian in exchange for Shares when they purchase
Shares, and the Trust, through the Cash Custodian, will deliver cash to
such authorized participants when they redeem Shares with the Trust.
Authorized participants may then offer Shares to the public at prices
that depend on various factors, including the supply and demand for
Shares, the value of the Trust's assets, and market conditions at the
time of a transaction. Shareholders who buy or sell Shares during the
day from their broker may do so at a premium or discount relative to
the NAV of the Shares of the Trust.
Investment Objective
According to the Registration Statement, the investment objective
of the Trust is for the Shares to reflect the spot price of Ether as
measured by using the Lukka Prime Reference Rate (the ``Index'') less
the Trust's expenses and other liabilities. In seeking to achieve its
investment objective, the Trust will hold only ETH, cash, and cash
equivalents. The Trust will value its Shares daily based on the value
of the Index as of 4:00 p.m. ET, which is calculated based on the fair
market value price for ETH, reflecting the execution price of ETH on
its principal market as determined by Lukka Inc., an independent third-
party digital asset company (the ``Index Provider''). The Trust will
process all creations and redemptions in cash transactions with
authorized participants. The Trust is not actively managed.
The Index
As described in the Registration Statement, the Trust will use the
Index to calculate the Trust's NAV. The Index is designed to be a
robust price for ETH in USD and there is no component other than ETH in
the index. The underlying trading platforms are sourced from the Index
Provider. As of December 2023, the following platforms are considered
to be eligible by the Index Provider: Binance, Bitfinex, Bitflyer,
Bittrex, Bitstamp, Coinbase, <a href="http://Crypto.com">Crypto.com</a>, Gemini, HitBTC, Huobi, Kraken,
KuCoin, OKEx, Poloniex (collectively, ``Index Pricing Sources''). The
Index Provider reviews eligible trading platforms quarterly. In
determining which trading platforms to include, the Index Provider
evaluates each trading platform using proprietary ratings criteria. The
Index Provider constantly reassesses the trading platforms to be
eligible for inclusion in the Index, and makes adjustments as needed.
In determining the value of ETH, the Index Provider applies a five-
step weighting process for identifying the principal trading platform
for Ether and the last price on that trading platform. A ``base
exchange score'' (``BES'') that takes into account this criteria is
assigned to each Index Pricing Source in order to select the most
appropriate primary trading platform and then an executed trading
platform price is determined at 4:00 p.m. ET., although the Index
Provider performs this calculation every second each day.
Step 1: Assign each platform for Ether and U.S. Dollars a BES
reflecting static platform characteristics such as oversight,
microstructure and technology.
Step 2: Adjust the BES based on the relative monthly volume each
platform services. This new score is the Volume Adjusted Score
(``VAS'').
Step 3: Decay the adjusted score based on the time passed since
last trade on platform, assessing the level of activity in the market
by considering the frequency (volume) of trades. The decay factor
reflects the time since the last trade on the platform. This is the
final Decayed Volume Adjusted Score (DVAS), which reflects freshness of
data by tracking most recent trades.
Step 4: Rank the platforms by the DVAS score and designate the
highest-ranking platform as the Principal Market for that point in
time--the principal market is the exchange with highest DVAS.
Step 5: An executed platform price is used to represent fair market
value at 4:00 p.m. Eastern time.
Index data and the description of the Index are based on
information made

[[Page 46551]]

publicly available by the Index Provider on its website at <a href="https://lukka.tech">https://lukka.tech</a>.
Net Asset Value
The Trust's NAV per Share is calculated by (1) taking the current
market value of its ETH (calculated by the Index Provider) and any
other assets; (2) subtracting any liabilities (including accrued by
unpaid expenses); and (3) dividing that total by the total number of
outstanding Shares. The Administrator calculates the NAV of the Trust
on each day that the Exchange is open for regular trading, using the
execution price of ETH on the principal market selected by the Index
Provider as of 4:00 p.m. ET. However, NAVs are not officially struck
until later in the day (often by 5:30 p.m. ET and almost always by 8:00
p.m. ET).
The NAV for the Trust will be calculated by the Administrator once
a day and will be disseminated daily to all market participants at the
same time.
In the event that the Index is unavailable or if the Sponsor or
Administrator determines that the price provided by the Index does not
reflect an accurate ETH price, the Sponsor's pricing team will evaluate
the prices of other similar benchmarks in an effort to ensure that the
Trust's NAV is determined based on consistent, accurate pricing that
the Sponsor believes is reflective of the value of the Trust's ETH, and
also a transparent index methodology and process. The pricing team will
recommend the price to be used to the Sponsor's valuation committee who
will then review the recommendation and approve it for use by the Trust
if found appropriate.\44\
---------------------------------------------------------------------------

\44\ Such alternative method will only be employed on an ad hoc
basis. Any permanent change to the calculation of the NAV would
require a proposed rule change under Rule 19b-4.
---------------------------------------------------------------------------

Availability of Information
In addition to the price transparency of the Index, the Trust will
provide information regarding the Trust's ETH holdings as well as
additional data regarding the Trust. The website for the Trust, which
will be publicly accessible at no charge, will contain the following
information: (a) the current NAV per Share daily and the prior business
day's NAV per Share and the reported BZX Official Closing Price; \45\
(b) the BZX Official Closing Price in relation to the NAV per Share as
of the time the NAV is calculated and a calculation of the premium or
discount of such price against such NAV per Share; (c) data in chart
form displaying the frequency distribution of discounts and premiums of
the BZX Official Closing Price against the NAV per Share, within
appropriate ranges for each of the four previous calendar quarters (or
for the life of the Trust, if shorter); (d) the prospectus; and (e)
other applicable quantitative information. The Trust will also
disseminate its holdings on a daily basis on its website. The
aforementioned information will be published as of the close of
business available on the Sponsor's website at <a href="http://www.invesco.com/etfs">www.invesco.com/etfs</a>, or
any successor thereto.
---------------------------------------------------------------------------

\45\ As defined in Rule 11.23(a)(3), the term ``BZX Official
Closing Price'' shall mean the price disseminated to the
consolidated tape as the market center closing trade.
---------------------------------------------------------------------------

The Intraday Indicative Value (``IIV'') will be calculated by using
the prior day's closing NAV per Share as a base and updating that value
during Regular Trading Hours to reflect changes in the most recently
reported price of ETH as reported by the Index Provider or another
reporting service. The IIV disseminated during Regular Trading Hours
should not be viewed as an actual real-time update of the NAV, which
will be calculated only once at the end of each trading day. The IIV
may differ from the NAV due to the differences in the time window of
trades used to calculate each price. The IIV will be widely
disseminated on a per Share basis every 15 seconds during the
Exchange's Regular Trading Hours by one or more major market data
vendors. In addition, the IIV will be available through the facilities
of the consolidated tape association (CTA) and Consolidated Quotation
System (CQS) high speed lines. In addition, the IIV will be available
through on-line information services such as Bloomberg and Reuters.
The price of ETH will be made available by one or more major market
data vendors, updated at least every 15 seconds during Regular Trading
Hours.
As noted above, the Index is designed to provide an estimated fair
market value for ETH. Information about the Index and Index value,
including key elements of how the Index is calculated, will be publicly
available at <a href="https://lukka.tech">https://lukka.tech</a>.
Quotation and last sale information for ETH is widely disseminated
through a variety of major market data vendors, including Bloomberg and
Reuters. Information relating to trading, including price and volume
information, in ETH is available from major market data vendors and
from the trading platforms on which ETH are traded. Depth of book
information is also available from ETH trading platforms. The normal
trading hours for ETH trading platforms are 24 hours per day, 365 days
per year.
Information regarding market price and trading volume of the Shares
will be continually available on a real-time basis throughout the day
on brokers' computer screens and other electronic services. Information
regarding the previous day's BZX Official Closing Price and trading
volume information for the Shares will be published daily in the
financial section of newspapers. Quotation and last-sale information
regarding the Shares will be disseminated through the facilities of the
CTA.
The ETH Custodian
The Custodian carefully considers the design of the physical,
operational and cryptographic systems for secure storage of the Trust's
private keys in an effort to lower the risk of loss or theft. The
Custodian utilizes a variety of security measures to ensure that
private keys necessary to transfer digital assets remain uncompromised
and that the Trust maintains exclusive ownership of its assets. The
operational procedures of the Custodian are reviewed by third-party
advisors with specific expertise in physical security. The devices that
store the keys will never be connected to the internet or any other
public or private distributed network--this is colloquially known as
``cold storage.'' Only specific individuals are authorized to
participate in the custody process, and no individual acting alone will
be able to access or use any of the private keys. In addition, no
combination of the executive officers of the Sponsor or the investment
professionals managing the Trust, acting alone or together, will be
able to access or use any of the private keys that hold the Trust's
ETH.
Creation and Redemption of Shares
When the Trust sells or redeems its Shares, it will do so in cash
transactions in blocks of 5,000 Shares (e.g., a Creation Basket) that
are based on the quantity of ETH attributable to each Share of the
Trust at the Trust's NAV. According to the Registration Statement, on
any business day, an authorized participant may place an order to
create one or more Creation Baskets. Purchase orders must be placed by
4:00 p.m. Eastern Time, or the close of regular trading on the
Exchange, whichever is earlier. The day on which an order is received
is considered the purchase order date. The total deposit of cash
required is based on the combined NAV of the number of Shares included
in the Creation Baskets being created determined as of 4:00 ET on the
date the order to purchase is properly received. The Administrator
determines the quantity of ether associated with a

[[Page 46552]]

Creation Basket for a given day by dividing the number of ether held by
the Trust as of the opening of business on that business day, adjusted
for the amount of ether constituting estimated accrued but unpaid fees
and expenses of the Trust as of the opening of business on that
business day, by the quotient of the number of Shares outstanding at
the opening of business divided by the number of Shares in a Creation
Basket.
The procedures by which an authorized participant can redeem one or
more Creation Baskets mirror the procedures for the creation of
Creation Baskets.
The authorized participants will deliver only cash to create Shares
and will receive only cash when redeeming Shares. Further, authorized
participants will not directly or indirectly purchase, hold, deliver,
or receive ETH as part of the creation or redemption process or
otherwise direct the Trust or a third party with respect to purchasing,
holding, delivering, or receiving ETH as part of the creation or
redemption process.
The Trust will create Shares by receiving ETH from a third party
that is not the authorized participant and the Trust (through an
execution agent that is acting in an agency capacity)--not the
authorized participant--is responsible for selecting the third party to
deliver the ETH. Further, the third party will not be acting as an
agent of the authorized participant with respect to the delivery of the
ETH to the Trust or acting at the direction of the authorized
participant with respect to the delivery of the ETH to the Trust. The
Trust will redeem Shares by delivering ETH to a third party that is not
the authorized participant and the Trust--not the authorized
participant--is responsible for selecting the third party to receive
the ETH. Further, the third party will not be acting as an agent of the
authorized participant with respect to the receipt of the ETH from the
Trust or acting at the direction of the authorized participant with
respect to the receipt of the ETH from the Trust.
The Sponsor will maintain ownership and control of ETH in a manner
consistent with good delivery requirements for spot commodity
transactions.
Rule 14.11(e)(4)--Commodity-Based Trust Shares
The Shares will be subject to BZX Rule 14.11(e)(4), which sets
forth the initial and continued listing criteria applicable to
Commodity-Based Trust Shares. The Exchange represents that, for initial
and continued listing, the Trust must be in compliance with Rule 10A-3
under the Act. A minimum of 100,000 Shares will be outstanding at the
commencement of listing on the Exchange. The Exchange will obtain a
representation that the Trust's NAV will be calculated daily and the
NAV and information about the assets of the Trust will be made
available to all market participants at the same time. The Exchange
notes that, as defined in Rule 14.11(e)(4)(C)(i), the Shares will be:
(a) issued by a trust that holds (1) a specified commodity \46\
deposited with the trust, or (2) a specified commodity and, in addition
to such specified commodity, cash; (b) issued by such trust in a
specified aggregate minimum number in return for a deposit of a
quantity of the underlying commodity and/or cash; and (c) when
aggregated in the same specified minimum number, may be redeemed at a
holder's request by such trust which will deliver to the redeeming
holder the quantity of the underlying commodity and/or cash.
---------------------------------------------------------------------------

\46\ For purposes of Rule 14.11(e)(4), the term commodity takes
on the definition of the term as provided in the Commodity Exchange
Act.
---------------------------------------------------------------------------

Upon termination of the Trust, the Shares will be removed from
listing. The Trustee, Delaware Trust Company, is a trust company having
substantial capital and surplus and the experience and facilities for
handling corporate trust business, as required under Rule
14.11(e)(4)(E)(iv)(a) and that no change will be made to the trustee
without prior notice to and approval of the Exchange. The Exchange also
notes that, pursuant to Rule 14.11(e)(4)(F), neither the Exchange nor
any agent of the Exchange shall have any liability for damages, claims,
losses or expenses caused by any errors, omissions or delays in
calculating or disseminating any underlying commodity value, the
current value of the underlying commodity required to be deposited to
the Trust in connection with issuance of Commodity-Based Trust Shares;
resulting from any negligent act or omission by the Exchange, or any
agent of the Exchange, or any act, condition or cause beyond the
reasonable control of the Exchange, its agent, including, but not
limited to, an act of God; fire; flood; extraordinary weather
conditions; war; insurrection; riot; strike; accident; action of
government; communications or power failure; equipment or software
malfunction; or any error, omission or delay in the reports of
transactions in an underlying commodity. Finally, as required in Rule
14.11(e)(4)(G), the Exchange notes that any registered market maker
(``Market Maker'') in the Shares must file with the Exchange in a
manner prescribed by the Exchange and keep current a list identifying
all accounts for trading in an underlying commodity, related commodity
futures or options on commodity futures, or any other related commodity
derivatives, which the registered Market Maker may have or over which
it may exercise investment discretion. No registered Market Maker shall
trade in an underlying commodity, related commodity futures or options
on commodity futures, or any other related commodity derivatives, in an
account in which a registered Market Maker, directly or indirectly,
controls trading activities, or has a direct interest in the profits or
losses thereof, which has not been reported to the Exchange as required
by this Rule. In addition to the existing obligations under Exchange
rules regarding the production of books and records (see, e.g., Rule
4.2), the registered Market Maker in Commodity-Based Trust Shares shall
make available to the Exchange such books, records or other information
pertaining to transactions by such entity or registered or non-
registered employee affiliated with such entity for its or their own
accounts for trading the underlying physical commodity, related
commodity futures or options on commodity futures, or any other related
commodity derivatives, as may be requested by the Exchange.
The Exchange is able to obtain information regarding trading in the
Shares and the underlying ETH, CME Ether Futures, options on CME Ether
Futures, or any other ETH derivative through members acting as
registered Market Makers, in connection with their proprietary or
customer trades.
As a general matter, the Exchange has regulatory jurisdiction over
its Members and their associated persons, which include any person or
entity controlling a Member. To the extent the Exchange may be found to
lack jurisdiction over a subsidiary or affiliate of a Member that does
business only in commodities or futures contracts, the Exchange could
obtain information regarding the activities of such subsidiary or
affiliate through surveillance sharing agreements with regulatory
organizations of which such subsidiary or affiliate is a member.
Trading Halts
With respect to trading halts, the Exchange may consider all
relevant factors in exercising its discretion to halt or suspend
trading in the Shares. The Exchange will halt trading in the Shares
under the conditions specified in BZX Rule 11.18. Trading may be halted
because of market conditions or for reasons that, in the view of the
Exchange, make trading in the Shares

[[Page 46553]]

inadvisable. These may include: (1) the extent to which trading is not
occurring in the ether underlying the Shares; or (2) whether other
unusual conditions or circumstances detrimental to the maintenance of a
fair and orderly market are present. Trading in the Shares also will be
subject to Rule 14.11(e)(4)(E)(ii), which sets forth circumstances
under which trading in the Shares may be halted.
If the IIV or the value of the Index is not being disseminated as
required, the Exchange may halt trading during the day in which the
interruption to the dissemination of the IIV or the value of the Index
occurs. If the interruption to the dissemination of the IIV or the
value of the Index persists past the trading day in which it occurred,
the Exchange will halt trading no later than the beginning of the
trading day following the interruption.
In addition, if the Exchange becomes aware that the NAV with
respect to the Shares is not disseminated to all market participants at
the same time, it will halt trading in the Shares until such time as
the NAV is available to all market participants.
Trading Rules
The Exchange deems the Shares to be equity securities, thus
rendering trading in the Shares subject to the Exchange's existing
rules governing the trading of equity securities. BZX will allow
trading in the Shares during all trading sessions on the Exchange. The
Exchange has appropriate rules to facilitate transactions in the Shares
during all trading sessions. As provided in BZX Rule 11.11(a) the
minimum price variation for quoting and entry of orders in securities
traded on the Exchange is $0.01 where the price is greater than $1.00
per share or $0.0001 where the price is less than $1.00 per share. The
Shares of the Trust will conform to the initial and continued listing
criteria set forth in BZX Rule 14.11(e)(4).
Surveillance
The Exchange represents that its surveillance procedures are
adequate to properly monitor the trading of the Shares on the Exchange
during all trading sessions and to deter and detect violations of
Exchange rules and the applicable federal securities laws. Trading of
the Shares through the Exchange will be subject to the Exchange's
surveillance procedures for derivative products, including Commodity-
Based Trust Shares. FINRA conducts certain cross-market surveillances
on behalf of the Exchange pursuant to a regulatory services agreement.
The Exchange is responsible for FINRA's performance under this
regulatory services agreement.
The Exchange or FINRA, on behalf of the Exchange, or both, will
communicate as needed regarding trading in the Shares, CME Ether
Futures, or any other derivative with other markets and other entities
that are members of the ISG, and the Exchange, or FINRA, on behalf of
the Exchange, or both, may obtain trading information regarding trading
in the Shares, CME Ether Futures, or any other derivative from such
markets and other entities.\47\ The Exchange may obtain information
regarding trading in the Shares, CME Ether Futures, or any other
derivative via ISG, from other exchanges who are members or affiliates
of the ISG, or with which the Exchange has entered into a comprehensive
surveillance sharing agreement.
---------------------------------------------------------------------------

\47\ For a list of the current members and affiliate members of
ISG, see <a href="http://www.isgportal.com">www.isgportal.com</a>.
---------------------------------------------------------------------------

In addition, the Exchange also has a general policy prohibiting the
distribution of material, non-public information by its employees.
The Sponsor has represented to the Exchange that it will advise the
Exchange of any failure by the Trust or the Shares to comply with the
continued listing requirements, and, pursuant to its obligations under
Section 19(g)(1) of the Exchange Act, the Exchange will surveil for
compliance with the continued listing requirements. If the Trust or the
Shares are not in compliance with the applicable listing requirements,
the Exchange will commence delisting procedures under Exchange Rule
14.12.
Information Circular
Prior to the commencement of trading, the Exchange will inform its
members in an Information Circular of the special characteristics and
risks associated with trading the Shares. Specifically, the Information
Circular will discuss the following: (i) the procedures for the
creation and redemption of Creation Baskets (and that the Shares are
not individually redeemable); (ii) BZX Rule 3.7, which imposes
suitability obligations on Exchange members with respect to
recommending transactions in the Shares to customers; (iii) how
information regarding the IIV and the Trust's NAV are disseminated;
(iv) the risks involved in trading the Shares outside of Regular
Trading Hours \48\ when an updated IIV will not be calculated or
publicly disseminated; (v) the requirement that members deliver a
prospectus to investors purchasing newly issued Shares prior to or
concurrently with the confirmation of a transaction; and (vi) trading
information. The Information Circular will also reference the fact that
there is no regulated source of last sale information regarding ether,
that the Commission has no jurisdiction over the trading of ether as a
commodity, and that the CFTC has regulatory jurisdiction over the
trading of CME Ether Futures and options on CME Ether Futures.
---------------------------------------------------------------------------

\48\ Regular Trading Hours is the time between 9:30 a.m. and
4:00 p.m. Eastern Time.
---------------------------------------------------------------------------

In addition, the Information Circular will advise members, prior to
the commencement of trading, of the prospectus delivery requirements
applicable to the Shares. Members purchasing the Shares for resale to
investors will deliver a prospectus to such investors. The Information
Circular will also discuss any exemptive, no-action and interpretive
relief granted by the Commission from any rules under the Act.
2. Statutory Basis
The Exchange believes that the proposal is consistent with Section
6(b) of the Act \49\ in general and Section 6(b)(5) of the Act \50\ in
particular in that it is designed to prevent fraudulent and
manipulative acts and practices, to promote just and equitable
principles of trade, to foster cooperation and coordination with
persons engaged in facilitating transactions in securities, to remove
impediments to and perfect the mechanism of a free and open market and
a national market system and, in general, to protect investors and the
public interest.
---------------------------------------------------------------------------

\49\ 15 U.S.C. 78f.
\50\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

The Commission has approved numerous series of Trust Issued
Receipts,\51\ including Commodity-Based Trust Shares,\52\ to be listed
on U.S. national securities. In order for any proposed rule change from
an exchange to be approved, the Commission must determine that, among
other things, the proposal is consistent with the requirements of
Section 6(b)(5) of the Act, specifically including: (i) the requirement
that a national securities exchange's rules are designed to prevent
fraudulent and manipulative acts and practices; \53\ and (ii) the
requirement that

[[Page 46554]]

an exchange proposal be designed, in general, to protect investors and
the public interest. The Exchange believes that this proposal is
consistent with the requirements of Section 6(b)(5) of the Act and that
this filing sufficiently demonstrates that the CME Ether Futures market
represents a regulated market of significant size and that, on the
whole, the manipulation concerns previously articulated by the
Commission are sufficiently mitigated to the point that they are
outweighed by quantifiable investor protection issues that would be
resolved by approving this proposal.
---------------------------------------------------------------------------

\51\ See Exchange Rule 14.11(f).
\52\ Commodity-Based Trust Shares, as described in Exchange Rule
14.11(e)(4), are a type of Trust Issued Receipt.
\53\ The Exchange believes that ETH is resistant to price
manipulation and that ``other means to prevent fraudulent and
manipulative acts and practices'' exist to justify dispensing with
the requisite surveillance sharing agreement. The geographically
diverse and continuous nature of ETH trading render it difficult and
prohibitively costly to manipulate the price of ETH. The
fragmentation across ETH platforms, the relatively slow speed of
transactions, and the capital necessary to maintain a significant
presence on each trading platform make manipulation of ETH prices
through continuous trading activity challenging. To the extent that
there are ETH platforms engaged in or allowing wash trading or other
activity intended to manipulate the price of ETH on other markets,
such pricing does not normally impact prices on other platforms
because participants will generally ignore markets with quotes that
they deem non-executable. Moreover, the linkage between the ETH
markets and the presence of arbitrageurs in those markets means that
the manipulation of the price of ETH on any single venue would
require manipulation of the global ETH price in order to be
effective. Arbitrageurs must have funds distributed across multiple
trading platforms in order to take advantage of temporary price
dislocations, thereby making it unlikely that there will be strong
concentration of funds on any particular ETH platform or OTC
platform. As a result, the potential for manipulation on a trading
platform would require overcoming the liquidity supply of such
arbitrageurs who are effectively eliminating any cross-market
pricing differences.
---------------------------------------------------------------------------

(i) Designed To Prevent Fraudulent and Manipulative Acts and Practices
In order to meet this standard in a proposal to list and trade a
series of Commodity-Based Trust Shares, the Commission requires that an
exchange demonstrate that there is a comprehensive surveillance-sharing
agreement in place \54\ with a regulated market of significant size.
Both the Exchange and CME are members of ISG.\55\ The only remaining
issue to be addressed is whether the CME Ether Futures market
constitutes a market of significant size, which both the Exchange and
the Sponsor believe that it does. The terms ``significant market'' and
``market of significant size'' include a market (or group of markets)
as to which: (a) there is a reasonable likelihood that a person
attempting to manipulate the ETP would also have to trade on that
market to manipulate the ETP, so that a surveillance-sharing agreement
would assist the listing exchange in detecting and deterring
misconduct; and (b) it is unlikely that trading in the ETP would be the
predominant influence on prices in that market.\56\
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\54\ As previously articulated by the Commission, ``The standard
requires such surveillance-sharing agreements since ``they provide a
necessary deterrent to manipulation because they facilitate the
availability of information needed to fully investigate a
manipulation if it were to occur.'' The Commission has emphasized
that it is essential for an exchange listing a derivative securities
product to enter into a surveillance-sharing agreement with markets
trading underlying securities for the listing exchange to have the
ability to obtain information necessary to detect, investigate, and
deter fraud and market manipulation, as well as violations of
exchange rules and applicable federal securities laws and rules. The
hallmarks of a surveillance-sharing agreement are that the agreement
provides for the sharing of information about market trading
activity, clearing activity, and customer identity; that the parties
to the agreement have reasonable ability to obtain access to and
produce requested information; and that no existing rules, laws, or
practices would impede one party to the agreement from obtaining
this information from, or producing it to, the other party.'' The
Commission has historically held that joint membership in ISG
constitutes such a surveillance sharing agreement. See Wilshire
Phoenix Disapproval.
\55\ For a list of the current members and affiliate members of
ISG, see <a href="http://www.isgportal.com">www.isgportal.com</a>.
\56\ See Wilshire Phoenix Disapproval.
---------------------------------------------------------------------------

The Commission has also recognized that the ``regulated market of
significant size'' standard is not the only means for satisfying
Section 6(b)(5) of the act, specifically providing that a listing
exchange could demonstrate that ``other means to prevent fraudulent and
manipulative acts and practices'' are sufficient to justify dispensing
with the requisite surveillance-sharing agreement.\57\
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\57\ See Winklevoss Order at 37580. The Commission has also
specifically noted that it ``is not applying a `cannot be
manipulated' standard; instead, the Commission is examining whether
the proposal meets the requirements of the Exchange Act and,
pursuant to its Rules of Practice, places the burden on the listing
exchange to demonstrate the validity of its contentions and to
establish that the requirements of the Exchange Act have been met.''
Id. at 37582.
---------------------------------------------------------------------------

. . . fraud or manipulation that impacts prices in spot bitcoin
markets would likely similarly impact CME bitcoin futures prices.
And because the CME's surveillance can assist in detecting those
impacts on CME bitcoin futures prices, the Exchanges' comprehensive
surveillance-sharing agreement with the CME . . . can be reasonably
expected to assist in surveilling for fraudulent and manipulative
acts and practices in the specific context of the [p]roposals.\58\
---------------------------------------------------------------------------

\58\ See the Spot Bitcoin ETP Approval Order at 3011-3012.

The assumptions from this statement are also true for CME Ether
Futures. CME Ether Futures pricing is based on pricing from spot ether
markets. The statement from the Spot Bitcoin ETP Approval Order that
the surveillance-sharing agreement with the CME ``can be reasonably
expected to assist in surveilling for fraudulent and manipulative acts
and practices in the specific context of the [p]roposals'' makes clear
that the Commission believes that CME's surveillance can capture the
effects of trading on the relevant spot markets on the pricing of CME
Bitcoin Futures. This same logic would extend to CME Ether Futures
markets where CME's surveillance would be able to capture the effects
of trading on the relevant spot markets on the pricing of CME Ether
Futures.
(b) Predominant Influence on Prices in Spot and ETH Futures
The Exchange and Sponsor also believe that trading in the Shares
would not be the predominant force on prices in the CME Ether Futures
market for a number of reasons. First, because the Trust would not hold
CME Ether Futures contracts, the only way that it could be the
predominant force on prices in that market is through the spot markets
that CME Ether Futures contracts use for pricing.\59\ The Sponsor notes
that ether total 24-hour spot trading volume has averaged $9.4 billion
over the year ending September 1, 2023.\60\ The Sponsor expects that
the Trust would represent a very small percentage of this daily trading
volume in the spot ether market even in its most aggressive projections
for the Trust's assets and, thus, the Trust would not have an impact on
the spot market and

[[Page 46555]]

therefore could not be the predominant force on prices in the CME Ether
Futures market. Second, much like the CME Bitcoin Futures market, the
CME Ether Futures market has progressed and matured significantly. As
the U.S. Court of Appeals for the D.C. Circuit found in its review of
the Grayscale Order, ``Because the spot market is deeper and more
liquid than the futures market, manipulation should be more difficult,
not less.'' The Exchange and sponsor agree with this sentiment and
believe it applies equally to the spot ether and CME Ether Futures
markets.
---------------------------------------------------------------------------

\59\ This logic is reflected by the U.S. Court of Appeals for
the D.C. Circuit on its review of the Grayscale Order at 17-18. See
Grayscale Investments, LLC v. SEC, 82 F. 4tha 1239 (D.C. Cir. 2023).
Specifically, the court found that ``Because Grayscale owns no
futures contracts, trading in Grayscale can affect the futures
market only through the spot market . . . But Grayscale holds just
3.4 percent of outstanding bitcoin, and the Commission did not
suggest Grayscale can dominate the price of bitcoin.''
\60\ Source: TokenTerminal.
---------------------------------------------------------------------------

(c) Other Means To Prevent Fraudulent and Manipulative Acts and
Practices
As noted above, the Commission also permits a listing exchange to
demonstrate that ``other means to prevent fraudulent and manipulative
acts and practices'' are sufficient to justify dispensing with the
requisite surveillance-sharing agreement. The Exchange and Sponsor
believe that such conditions are present.
The Exchange believes that the proposal is designed to protect
investors and the public interest. Over the past several years, U.S.
investor exposure to ether through OTC ETH Funds has grown into the
tens of billions of dollars and more than a billion dollars of exposure
through Ether Futures ETFs. With that growth, so too has grown the
quantifiable investor protection issues to U.S. investors through roll
costs for Ether Futures ETFs and premium/discount volatility and
management fees for OTC ETH Funds. The Exchange believes that the
concerns related to the prevention of fraudulent and manipulative acts
and practices have been sufficiently addressed to be consistent with
the Act and, to the extent that the Commission disagrees with that
assertion, also believes that such concerns are now outweighed by these
investor protection concerns. As such, the Exchange believes that
approving this proposal (and comparable proposals) provides the
Commission with the opportunity to allow U.S. investors with access to
ether in a regulated and transparent exchange-traded vehicle that would
act to limit risk to U.S. investors by: (i) reducing premium and
discount volatility; (ii) reducing management fees through meaningful
competition; (iii) reducing risks and costs associated with investing
in Ether Futures ETFs and operating companies that are imperfect
proxies for ether exposure; and (iv) providing an alternative to
custodying spot ether.
Commodity-Based Trust Shares
The Exchange believes that the proposed rule change is designed to
prevent fraudulent and manipulative acts and practices in that the
Shares will be listed on the Exchange pursuant to the initial and
continued listing criteria in Exchange Rule 14.11(e)(4). The Exchange
believes that its surveillance procedures are adequate to properly
monitor the trading of the Shares on the Exchange during all trading
sessions and to deter and detect violations of Exchange rules and the
applicable federal securities laws. Trading of the Shares through the
Exchange will be subject to the Exchange's surveillance procedures for
derivative products, including Commodity-Based Trust Shares. The issuer
has represented to the Exchange that it will advise the Exchange of any
failure by the Trust or the Shares to comply with the continued listing
requirements, and, pursuant to its obligations under Section 19(g)(1)
of the Exchange Act, the Exchange will surveil for compliance with the
continued listing requirements. If the Trust or the Shares are not in
compliance with the applicable listing requirements, the Exchange will
commence delisting procedures under Exchange Rule 14.12. The Exchange
may obtain information regarding trading in the Shares and listed ether
derivatives via the ISG, from other exchanges who are members or
affiliates of the ISG, or with which the Exchange has entered into a
comprehensive surveillance sharing agreement.
Availability of Information
The Exchange also believes that the proposal promotes market
transparency in that a large amount of information is currently
available about ETH and will be available regarding the Trust and the
Shares. In addition to the price transparency of the Index, the Trust
will provide information regarding the Trust's ETH holdings as well as
additional data regarding the Trust. The website for the Trust, which
will be publicly accessible at no charge, will contain the following
information: (a) the current NAV per Share daily and the prior business
day's NAV per Share and the reported BZX Official Closing Price; (b)
the BZX Official Closing Price in relation to the NAV per Share as of
the time the NAV is calculated and a calculation of the premium or
discount of such price against such NAV per Share; (c) data in chart
form displaying the frequency distribution of discounts and premiums of
the BZX Official Closing Price against the NAV per Share, within
appropriate ranges for each of the four previous calendar quarters (or
for the life of the Trust, if shorter); (d) the prospectus; and (e)
other applicable quantitative information. The Trust will also
disseminate its holdings on a daily basis on its website. The
aforementioned information will be published as of the close of
business available on the Sponsor's website at <a href="http://www.invesco.com/etfs">www.invesco.com/etfs</a>, or
any successor thereto.
The IIV will be calculated by using the prior day's closing NAV per
Share as a base and updating that value during Regular Trading Hours to
reflect changes in the most recently reported price of ETH as reported
by the Index Provider or another reporting service. The IIV
disseminated during Regular Trading Hours should not be viewed as an
actual real-time update of the NAV, which will be calculated only once
at the end of each trading day. The IIV may differ from the NAV due to
the differences in the time window of trades used to calculate each
price. The IIV will be widely disseminated on a per Share basis every
15 seconds during the Exchange's Regular Trading Hours by one or more
major market data vendors. In addition, the IIV will be available
through the facilities of the CTA and CQS high speed lines. In
addition, the IIV will be available through on-line information
services such as Bloomberg and Reuters.
The price of ETH will be made available by one or more major market
data vendors, updated at least every 15 seconds during Regular Trading
Hours.
As noted above, the Index is designed to provide an estimated fair
market value for ETH. Information about the Index and Index value,
including key elements of how the Index is calculated, will be publicly
available at <a href="https://lukka.tech">https://lukka.tech</a>.
Quotation and last sale information for ETH is widely disseminated
through a variety of major market data vendors, including Bloomberg and
Reuters. Information relating to trading, including price and volume
information, in ETH is available from major market data vendors and
from the trading platforms on which ETH are traded. Depth of book
information is also available from ETH trading platforms. The normal
trading hours for ETH trading platforms are 24 hours per day, 365 days
per year.
Information regarding market price and trading volume of the Shares
will be continually available on a real-time basis throughout the day
on brokers' computer screens and other electronic services. Information
regarding the previous day's BZX Official Closing Price and trading
volume information

[[Page 46556]]

for the Shares will be published daily in the financial section of
newspapers. Quotation and last-sale information regarding the Shares
will be disseminated through the facilities of the CTA.
In sum, the Exchange believes that this proposal is consistent with
the requirements of Section 6(b)(5) of the Act, that this filing
sufficiently demonstrates that the CME Ether Futures market represents
a regulated market of significant size, and that on the whole the
manipulation concerns previously articulated by the Commission are
sufficiently mitigated to the point that they are outweighed by
investor protection issues that would be resolved by approving this
proposal. For the above reasons, the Exchange believes that the
proposed rule change is consistent with the requirements of Section
6(b)(5) of the Act.

B. Self-Regulatory Organization's Statement on Burden on Competition

The Exchange does not believe that the proposed rule change will
impose any burden on competition that is not necessary or appropriate
in furtherance of the purpose of the Act. The Exchange notes that the
proposed rule change, rather will facilitate the listing and trading of
an additional exchange-traded product that will enhance competition
among both market participants and listing venues, to the benefit of
investors and the marketplace.

C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others

The Exchange has neither solicited nor received written comments on
the proposed rule change.

III. Solicitation of Comments

Interested persons are invited to submit written data, views and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:

Electronic Comments

<bullet> Use the Commission's internet comment form (<a href="https://www.sec.gov/rules/sro.shtml">https://www.sec.gov/rules/sro.shtml</a>); or
<bullet> Send an email to <a href="/cdn-cgi/l/email-protection#5624233a337b35393b3b333822251625333578313920"><span class="__cf_email__" data-cfemail="1c6e697079317f7371717972686f5c6f797f327b736a">[email&#160;protected]</span></a>. Please include
file number SR-CboeBZX-2023-087 on the subject line.

Paper Comments

<bullet> Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.

All submissions should refer to file number SR-CboeBZX-2023-087. This
file number should be included on the subject line if email is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's internet website (<a href="https://www.sec.gov/rules/sro.shtml">https://www.sec.gov/rules/sro.shtml</a>). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for website viewing and
printing in the Commission's Public Reference Room, 100 F Street NE,
Washington, DC 20549, on official business days between the hours of 10
a.m. and 3 p.m. Copies of the filing also will be available for
inspection and copying at the principal office of the Exchange. Do not
include personal identifiable information in submissions; you should
submit only information that you wish to make available publicly. We
may redact in part or withhold entirely from publication submitted
material that is obscene or subject to copyright protection. All
submissions should refer to file number SR-CboeBZX-2023-087 and should
be submitted on or before June 20, 2024.

For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\61\
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\61\ 17 CFR 200.30-3(a)(12).
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J. Matthew DeLesDernier,
Deputy Secretary.
[FR Doc. 2024-11711 Filed 5-28-24; 8:45 am]
BILLING CODE 8011-01-P

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