The US Securities and Exchange Commission is seeking public comment on a proposal from NYSE Arca that could change how crypto and commodity ETFs qualify for listing.
The proposal would require at least 85% of a fund’s assets to meet existing eligibility standards, limiting exposure to non-qualifying holdings while allowing up to 15% flexibility.
“The exchange proposes to amend Rule 8.201-E (Generic) to modify the generic listing standards for commodity-based trust shares,”
NYSE Arca said in the filing.
The rule would also count derivatives based on their gross notional value, meaning large futures or options positions could significantly impact whether a fund meets the threshold.
This change could affect crypto-linked products tied to assets like Bitcoin, Ether and XRP, especially those using derivatives or more complex structures, and following the announcement there was no immediate market reaction.
Examples in the filing show that funds heavily weighted toward qualifying assets could pass, while those using non-qualifying derivatives may fail even with strong core holdings.
The SEC will now review the proposal and public feedback before deciding whether to approve, reject or further examine the rule, which aims to tighten oversight while still enabling new products to launch.
At the time of reporting, Bitcoin price was $76,895.10.