SEC Examines Proposal That May Affect Bitcoin and XRP ETF Listings
April 28, 2026
The Securities and Exchange Commission (SEC) recently released a notice on April 27, 2026, regarding a proposal from NYSE Arca that could have significant implications for the listing of crypto and commodity investment products. This proposal introduces an 85% asset threshold that aims to restrict exposure to assets that do not meet the current eligibility standards. By limiting holdings outside of the existing criteria, this proposal is intended to enforce stricter requirements for trust listings in the future.
The proposed rule change seeks to amend Rule 8.201-E, the generic listing framework for commodity-based trust shares. Under this revision, a trust would be required to have at least 85% of its net asset value held in assets that align with the rule’s current standards. These assets could include qualifying commodities, commodity-based assets, securities, cash, and cash equivalents. The remaining 15% of assets could consist of other holdings that do not meet the eligibility criteria independently, as long as the overall trust remains compliant.
One key aspect of the proposed change is the inclusion of derivatives by gross notional value in the calculation of a trust’s asset composition. This means that derivative positions such as options or futures, whether listed or over-the-counter, could impact the qualification of a product. Sponsors would be required to monitor the daily composition of their trusts and promptly notify NYSE Arca if they fall out of compliance with the 85% asset threshold.
The proposal provides examples to illustrate the importance of the 85% threshold for crypto and commodity funds. A trust with 95% of its value in qualifying assets such as bitcoin, ether, solana, and XRP would meet the proposed standard, given that these assets underlie futures contracts traded on designated markets and are associated with exchange-traded products meeting the eligibility criteria. However, a trust holding bitcoin and OTC call options on a bitcoin ETF could fail to meet the requirement if only around 71% of its exposure meets the necessary criteria.
Furthermore, NYSE Arca aims to exclude non-fungible assets and collectibles from the definition of commodities under the proposed rule change. The exchange argues that these assets were not considered when the generic standards were initially adopted.
Overall, the proposal signals a stricter path for product approvals, emphasizing the importance of adhering to the 85% asset threshold for future trust listings. While NYSE Arca could pursue separate approval for trusts involving non-fungible assets or collectibles, these products would not qualify through the generic listing route. The exchange believes that the 85% threshold aligns with similar commodity-based exchange-traded products and will promote competition among issuers and venues.
Interested parties have the opportunity to submit comments on the proposed rule change to the SEC, expressing their views on whether it meets the requirements of the Act. The SEC will review the proposal and may approve, reject, or open proceedings on it based on its evaluation. In conclusion, the proposed 85% asset threshold could introduce more flexibility for future crypto and commodity trust listings while imposing stricter exposure limits to ensure compliance with eligibility standards.
