The U.S. Securities and Exchange Commission (SEC) on April 27, 2026, released a notice seeking public comment on a proposed rule change by NYSE Arca that would impose a 85% asset threshold for commodity and cryptocurrency trusts seeking exchange listing. The proposal, if adopted, would significantly tighten the eligibility requirements for digital asset ETFs and other crypto investment products.
What the 85% Rule Requires
Under the proposed amendment to NYSE Arca Rule 8.201-E (Commodity Trust Shares), at least 85% of a trust's net asset value must consist of assets that already meet the exchange's existing listing criteria. These include: qualified commodities, commodity-related assets, securities, cash, and cash equivalents. The remaining 15% may include other assets that do not individually meet the criteria, as long as the trust as a whole remains compliant. Trust sponsors must monitor the 85% threshold daily and notify NYSE Arca immediately if the trust falls out of compliance.
Derivatives Calculated at Notional Value
A critical aspect of the proposal is that derivatives positions (including options and futures) will be calculated at their total notional value, rather than margin or premium. This means a trust holding Bitcoin directly along with deep out-of-the-money call options on a Bitcoin ETF could see its qualifying percentage drop sharply. For instance, the SEC's example shows a trust with 71% qualifying exposure would fail the test, even though the underlying Bitcoin holdings are fully qualified. The proposal also explicitly excludes non-fungible assets and collectibles from the definition of 'commodity' for this rule.
Impact on Bitcoin, Ethereum, and XRP ETFs
The 85% rule is designed to ensure that the majority of a trust's risk exposure is tied to assets that have established, transparent futures markets. For Bitcoin and Ethereum, which already have CME futures traded for over six months, meeting the threshold is straightforward. However, for XRP—which only launched CME futures in late 2025—the 'six-month trading' requirement may delay eligibility until mid-2026. Other altcoins without any regulatory futures market would be effectively barred from the generic listing path. The proposal also requires that any futures contract underlying a qualified asset must be linked to an exchange-traded product (ETP) providing 'significant exposure', adding another layer of scrutiny.
Industry Reactions and Next Steps
The crypto industry has long called for clearer listing standards, but many view the 85% rule as overly conservative. NYSE Arca argues the rule aligns with existing commodity ETP frameworks and fosters competition while strengthening market surveillance and investor protection. The SEC's comment period will last 30 days from April 27, after which the Commission may approve, reject, or initiate hearings on the proposal. Market participants expect intense debate over whether the rule strikes the right balance between innovation and risk management.
In a related development, industry groups are pressuring the SEC to formalize its DeFi guidance into binding rules, arguing that the current piecemeal approach creates uncertainty. The outcome of the 85% rule proposal could set a precedent for how the SEC handles other novel asset listings, including potential ETFs based on Solana, Cardano, or other digital assets.