88694 Federal Register / Vol. 88, No. 245 / Friday, December 22, 2023 / Notices 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 98567 

(Sept. 27, 2023), 88 FR 68171 (‘‘Notice’’). The 

Commission has received no comments on the 

proposal. 

4 15 U.S.C. 78s(b)(2). 

5See Securities Exchange Act Release No. 98944, 

88 FR 81171 (Nov. 21, 2023). The Commission 

designated January 1, 2024, as the date by which 

the Commission shall approve or disapprove, or 

institute proceedings to determine whether to 

disapprove, the proposed rule change. 

6 15 U.S.C. 78s(b)(2)(B). 

7See Notice, supra note 3. 

8See id. at 68171 9See id. at 68171–72. 10See id. at 68172. 11See id. at 68175. 12See id. 13See id. at 68176. The filing does not specify 

whether such transactions would be required to be 

in-kind or in cash. The filing states that an 

authorized purchaser who places a purchase order 

will transfer to the Trust’s custodian the required 

amount of cash, cash equivalents, and/or ether 

futures by the end of the next business day 

following the purchase order date or by the end of 

such later business day, not to exceed three 

business days after the purchase order date, as 

agreed to between the authorized purchaser and the 

custodian when the purchase order is placed. See 

id. The filing also states that the redemption 

distribution from the Trust will consist of an 

amount of cash, cash equivalents, and/or exchange 

listed ether futures that is in the same proportion 

to the total assets of the Trust on the date that the 

order to redeem is properly received as the number 

of Shares to be redeemed under the redemption 

order is in proportion to the total number of Shares 

outstanding on the date the order is received. See 

id. 

14 15 U.S.C. 78s(b)(2)(B). 

15 Id. 

16 15 U.S.C. 78f(b)(5). 

17NYSE Arca Rule 8.200–E(b) defines a ‘‘Trust 

Issued Receipt’’ as a security (1) that is issued by 

a trust which holds specific securities deposited 

with the trust; (2) that, when aggregated in some 

specified minimum number, may be surrendered to 

the trust by the beneficial owner to receive the 

securities; and (3) that pay beneficial owners 

dividends and other distributions on the deposited 

securities, if any are declared and paid to the 

trustee by an issuer of the deposited securities. 

NYSE Arca Rule 8.200–E, Commentary .02(c) 

provides that the Exchange may list and trade Trust 

Issued Receipts investing in ‘‘Financial 

Instruments.’’ NYSE Arca Rule 8.200–E, 

Commentary .02(b)(4) further defines ‘‘Financial 

Instruments’’ as any combination of investments, 

including cash; securities; options on securities and 

indices; futures contracts; options on futures 

contracts; forward contracts; equity caps, collars 

and floors; and swap agreements. 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–99198; File No. SR– 

NYSEARCA–2023–63] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Order Instituting 

Proceedings To Determine Whether To 

Approve or Disapprove a Proposed 

Rule Change To List and Trade Shares 

of the Grayscale Ethereum Futures 

Trust (ETH) ETF Under NYSE Arca 

Rule 8.200–E, Commentary .02 (Trust 

Issued Receipts) 

December 18, 2023. 

On September 19, 2023, NYSE Arca, 

Inc. (‘‘NYSE Arca’’ 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 Grayscale Ethereum 

Futures Trust (ETH) ETF (‘‘Trust’’) 

under NYSE Arca Rule 8.200–E, 

Commentary .02 (Trust Issued Receipts). 

The proposed rule change was 

published for comment in the Federal 

Register on October 3, 2023.3

On November 15, 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 This order 

institutes proceedings under Section 

19(b)(2)(B) of the Act 6 to determine 

whether to approve or disapprove the 

proposed rule change. 

I. Summary of the Proposal 

As described in more detail in the 

Notice,7 the Exchange proposes to list 

and trade the Shares of the Trust under 

NYSE Arca Rule 8.200–E, Commentary 

.02, which governs the listing and 

trading of Trust Issued Receipts on the 

Exchange. 

According to the Exchange, the 

Chicago Mercantile Exchange, Inc. 

(‘‘CME’’) currently offers two Ethereum 

futures contracts, one contract 

representing 50 Ether (‘‘ETH Contracts’’) 

and another contract representing 0.10 

Ether (‘‘MET Contracts’’).8 The 

investment objective of the Trust is to 

have the daily changes in the net asset 

value (‘‘NAV’’) of the Shares reflect the 

daily changes in the price of a specified 

benchmark (‘‘Benchmark’’), which is the 

average of the closing settlement prices 

for the first to expire and second to 

expire ETH Contracts listed on the 

CME.9 Under normal market conditions, 

the Trust will invest in the first to 

expire and second to expire ETH 

Contracts and MET Contracts 

(collectively, ‘‘Ether Futures Contracts’’) 

and in cash and cash equivalents.10 The 

administrator of the Trust will calculate 

the NAV once each trading day, as of 

the earlier of the close of the New York 

Stock Exchange or 4:00 p.m. Eastern 

Standard Time.11 To determine the 

value of Ether Futures Contracts, the 

Trust’s administrator will use the Ether 

Futures Contract settlement price on the 

exchange on which the contract is 

traded, except that the fair value of 

Ether Futures Contracts may be used 

when Ether Futures Contracts close at 

their price fluctuation limit for the 

day.12 When the Trust sells or redeems 

its Shares, it will do so in transactions 

with authorized participants in blocks 

of 10,000 Shares.13

II. Proceedings To Determine Whether 

To Approve or Disapprove SR– 

NYSEARCA–2023–63 and Grounds for 

Disapproval Under Consideration 

The Commission is instituting 

proceedings pursuant to Section 

19(b)(2)(B) of the Act 14 to determine 

whether the proposed rule change 

should be approved or disapproved. 

Institution of proceedings is appropriate 

at this time in view of the legal and 

policy issues raised by the proposed 

rule change, as discussed below. 

Institution of proceedings does not 

indicate that the Commission has 

reached any conclusions with respect to 

any of the issues involved. Rather, as 

described below, the Commission seeks 

and encourages interested persons to 

provide comments on the proposed rule 

change. 

Pursuant to Section 19(b)(2)(B) of the 

Act,15 the Commission is providing 

notice of the grounds for disapproval 

under consideration. The Commission is 

instituting proceedings to allow for 

additional analysis of the proposed rule 

change’s consistency with Section 

6(b)(5) of the Act, which requires, 

among other things, that the rules of a 

national securities exchange be 

‘‘designed to prevent fraudulent and 

manipulative acts and practices’’ and 

‘‘to protect investors and the public 

interest.’’ 16

The Commission asks that 

commenters address the sufficiency of 

the Exchange’s statements in support of 

the proposal, which are set forth in the 

Notice, in addition to any other 

comments they may wish to submit 

about the proposed rule change. In 

particular, the Commission seeks 

comment on the following questions 

and asks commenters to submit data 

where appropriate to support their 

views: 

1. Given the nature of the underlying 

assets held by the Trust, has the 

Exchange properly filed its proposal to 

list and trade the Shares under NYSE 

Arca Rule 8.200–E, Commentary .02 

(Trust Issued Receipts)? 17

2. The Exchange raises substantially 

similar arguments to support the listing 

and trading of the Shares as those made 

in Commission orders approving the 

listing and trading of CME bitcoin 

futures-based exchange-traded products 


ddrumheller on DSK120RN23PROD with NOTICES1
Federal Register / Vol. 88, No. 245 / Friday, December 22, 2023 / Notices 88695 

18See Notice, 88 FR at 68174–75. 

19See id. 

20See id. at 68175. 

21See id. at 68173. 

22See id. 

23Section 19(b)(2) of the Act, as amended by the 

Securities Acts Amendments of 1975, Public Law 

94–29 (June 4, 1975), grants the Commission 

flexibility to determine what type of proceeding— 

either oral or notice and opportunity for written 

comments—is appropriate for consideration of a 

particular proposal by a self-regulatory 

organization. See Securities Acts Amendments of 

1975, Senate Comm. on Banking, Housing & Urban 

Affairs, S. Rep. No. 75, 94th Cong., 1st Sess. 30 

(1975). 24 17 CFR 200.30–3(a)(57). 

(‘‘CME Bitcoin Futures ETPs’’). Do 

commenters agree that arguments to 

support the listing of CME Bitcoin 

Futures ETPs apply equally to the 

Shares? Are there particular features 

related to ether and its ecosystem, 

including its proof of stake consensus 

mechanism and concentration of control 

or influence by a few individuals or 

entities, that raise unique concerns 

about ether futures’ susceptibility to 

fraud and manipulation? 

3. What are commenters’ views on 

whether the proposed Trust and Shares 

would be susceptible to manipulation? 

What are commenters’ views generally 

on whether the Exchange’s proposal is 

designed to prevent fraudulent and 

manipulative acts and practices? 

4. Based on data and analysis 

provided by the Exchange,18 do 

commenters agree with the Exchange 

that the CME represents a regulated 

market of significant size related to the 

holdings of the Trust? 19 Do commenters 

agree with the Exchange that trading in 

the Shares would not be the 

predominant influence on prices in the 

CME ether futures market? 20

5. The Exchange states that several 

exchange-traded funds (‘‘ETFs’’) 

registered under the Investment 

Company Act of 1940 that hold ether 

futures contracts have filed registration 

statements with the Commission and 

that these ETFs would offer identical 

exposure to the Trust.21 The Exchange 

asserts that ‘‘if the Commission allows 

these ETFs to begin trading, then it 

should also approve the Trust for 

trading.’’ 22 Do commenters agree? Why 

or why not? 

III. Procedure: Request for Written 

Comments 

The Commission requests that 

interested persons provide written 

submissions of their views, data, and 

arguments with respect to the issues 

identified above, as well as any other 

concerns they may have with the 

proposal. In particular, the Commission 

invites the written views of interested 

persons concerning whether the 

proposal is consistent with Section 

6(b)(5) or any other provision of the Act, 

and the rules and regulations 

thereunder. Although there do not 

appear to be any issues relevant to 

approval or disapproval that would be 

facilitated by an oral presentation of 

views, data, and arguments, the 

Commission will consider, pursuant to 

Rule 19b–4, any request for an 

opportunity to make an oral 

presentation.23

Interested persons are invited to 

submit written data, views, and 

arguments regarding whether the 

proposed rule change should be 

approved or disapproved by January 12, 

2024. Any person who wishes to file a 

rebuttal to any other person’s 

submission must file that rebuttal by 

January 26, 2024. 

Comments may be submitted by any 

of the following methods: 

Electronic Comments 

• Use the Commission’s internet 

comment form (https://www.sec.gov/ 

rules/sro.shtml); or 

• Send an email to rule-comments@

sec.gov. Please include file number SR– 

NYSEARCA–2023–63 on the subject 

line. 

Paper Comments 

• 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–NYSEARCA–2023–63. 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 (https://www.sec.gov/ 

rules/sro.shtml). 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–NYSEARCA–2023–63 and should be 

submitted on or before January 12, 2024. 

Rebuttal comments should be submitted 

by January 26, 2024. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.24

Sherry R. Haywood, 

Assistant Secretary. 

[FR Doc. 2023–28195 Filed 12–21–23; 8:45 am] 

BILLING CODE 8011–01–P 

DEPARTMENT OF STATE 

[Public Notice: 12290] 

Notice of Determinations; Culturally 

Significant Objects Being Imported for 

Exhibition—Determinations: 

‘‘Recasting Antiquity: Whistler, 

Tanagra, and the Female Form’’ 

Exhibition 

SUMMARY: Notice is hereby given of the 

following determinations: I hereby 

determine that certain objects being 

imported from abroad pursuant to an 

agreement with their foreign owner or 

custodian for temporary display in the 

exhibition ‘‘Recasting Antiquity: 

Whistler, Tanagra, and the Female 

Form’’ at the Michael C. Carlos 

Museum, Emory University, Atlanta, 

Georgia, and at possible additional 

exhibitions or venues yet to be 

determined, are of cultural significance, 

and, further, that their temporary 

exhibition or display within the United 

States as aforementioned is in the 

national interest. I have ordered that 

Public Notice of these determinations be 

published in the Federal Register. 

FOR FURTHER INFORMATION CONTACT: 

Reed Liriano, Program Coordinator, 

Office of the Legal Adviser, U.S. 

Department of State (telephone: 202– 

632–6471; email: section2459@

state.gov). The mailing address is U.S. 

Department of State, L/PD, 2200 C Street 

NW, (SA–5), Suite 5H03, Washington, 

DC 20522–0505. 

SUPPLEMENTARY INFORMATION: The 

foregoing determinations were made 

pursuant to the authority vested in me 

by the Act of October 19, 1965 (79 Stat. 

985; 22 U.S.C. 2459), Executive Order 

12047 of March 27, 1978, the Foreign 

Affairs Reform and Restructuring Act of 


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