The U.S. Securities and Exchange Commission (SEC) has opened a public comment period on a proposed rule change from NYSE Arca that would impose an 85% asset threshold for commodity-based trust shares, potentially affecting the listing of cryptocurrency and commodity investment products. The notice, published on April 27, 2026, seeks to amend Rule 8.201-E, which currently serves as the generic listing framework for such trusts.
Proposal Details: 85% Threshold and Derivative Treatment
Under the proposed change, at least 85% of a trust's net asset value must consist of assets already permitted under the rule, such as qualifying commodities, commodity-based assets, securities, cash, and cash equivalents. The remaining 15% may include other assets that do not independently meet the eligibility criteria, provided the trust remains otherwise compliant. Crucially, the proposal requires that listed and over-the-counter derivatives be counted by aggregate gross notional value. This means large options or futures positions could significantly affect a product's qualification status.
Sponsors would need to monitor the 85% threshold daily and promptly notify NYSE Arca if a trust falls out of compliance. The exchange stated that the change is intended to allow more listings while ensuring most exposure remains tied to assets that support market surveillance. The filing notes: "The exchange proposes to amend Rule 8.201-E (Generic) to modify the generic listing standards for commodity-based trust shares."
Impact on Crypto ETFs and Commodity Trusts
The filing provides illustrative examples that highlight the proposal's significance for crypto funds. A trust holding 95% of its value in qualifying assets such as Bitcoin (BTC), Ethereum (ETH), Solana (SOL), and XRP would meet the new standard. These assets qualify because they underlie futures contracts that have traded on designated markets for at least six months and are associated with exchange-traded products offering significant exposure. In contrast, a trust holding Bitcoin and over-the-counter call options on a Bitcoin ETF would fail if only about 71% of its exposure meets the criteria. This example demonstrates how non-qualifying derivatives can outweigh an otherwise eligible Bitcoin position.
Additionally, NYSE Arca seeks to exclude non-fungible assets and collectibles from the commodity definition under the rule, stating that these assets were not contemplated when the generic standards were adopted. The exchange can still pursue separate approval for trusts involving such assets, but they would not qualify through the generic listing route. The proposal also emphasizes that the 85% threshold is consistent with similar commodity-based exchange-traded products and would support competition among issuers and venues.
Regulatory Path and Industry Context
The SEC is now accepting comments from the public on whether the proposal is consistent with the Securities Exchange Act. The agency may approve, reject, or institute proceedings during its review period. The filing asserts that the rule change will not impose any burden on competition that is not necessary or appropriate in furtherance of the Act's purposes. Meanwhile, the SEC faces mounting pressure from industry participants to formalize its guidance on decentralized finance (DeFi), adding another layer of regulatory complexity for the crypto sector.
For issuers eyeing spot Bitcoin ETFs, XRP ETFs, or other commodity trust products, the proposed rule change introduces a new compliance hurdle. While the framework aims to provide flexibility for future listings, it imposes stricter exposure limits that could reshape product structures. As the comment period progresses, market participants will be closely watching whether the SEC approves, modifies, or rejects the NYSE Arca proposal, which could set a precedent for how crypto and commodity trusts are listed in the U.S.