The U.S. Securities and Exchange Commission (SEC) on April 27, 2026, published a notice requesting public comments on a proposed rule change by NYSE Arca that would introduce an 85% asset threshold for listing commodity and cryptocurrency trusts. This proposal could significantly impact the path to listing exchange-traded funds (ETFs) for Bitcoin (BTC), Ripple (XRP), and other major digital assets.
How the 85% Asset Threshold Works
Under the proposed amendment to Rule 8.201-E (Generic Listing Standards), a trust must hold at least 85% of its net asset value in assets already permitted under the rule, including eligible commodities, commodity-related assets, securities, cash, and cash equivalents. The remaining 15% may consist of other assets that do not individually meet the criteria, as long as the trust overall remains compliant. Importantly, derivatives such as options and futures will be calculated based on their total notional value, meaning large positions could disproportionately affect a trust's eligibility ratio.
Examples: What Is Qualified and What Is Not
The SEC filing includes illustrative cases: a trust with 95% of its value in Bitcoin, Ethereum (ETH), Solana (SOL), and XRP would qualify, provided those assets are underlying for futures contracts traded on a designated market for at least six months and linked to exchange-traded products with significant exposure. Conversely, a trust holding Bitcoin and over-the-counter call options on a Bitcoin ETF, with only 71% qualified exposure, would fail the threshold. Non-fungible assets and collectibles are explicitly excluded from the definition of "commodity" under the rule, meaning trusts focused on such assets cannot use the generic listing pathway and must seek individual SEC approval.
Industry Implications and Next Steps
NYSE Arca argues that the 85% threshold is consistent with existing commodity-based ETPs and aims to enhance the exchange's ability to monitor trading, deter manipulation, and protect investors while allowing more products into the market. The SEC is under growing pressure to formalize crypto guidelines, and this proposal could become a test case. During the comment period, the SEC may approve the rule, reject it, or initiate hearings. Stakeholders are urged to submit arguments on whether the proposal meets the requirements of the Securities Exchange Act.
Market observers note that if adopted, the rule would raise the compliance bar for crypto trusts, particularly those relying on derivatives exposure. However, it also provides a clearer framework for spot crypto ETFs — as long as the asset mix strictly meets the 85% qualified standard, issuers could proceed with listing via generic rules rather than seeking case-by-case approval.