The U.S. Securities and Exchange Commission has opened a public comment period on a proposed rule change from NYSE Arca that could significantly alter how crypto and commodity trust products qualify for exchange listing. At the center of the filing is a proposed 85% asset threshold, a standard that would require most of a trust’s net asset value to be invested in assets already recognized under the exchange’s existing listing framework.
While the proposal is framed as an update to the generic listing standards for Commodity-Based Trust Shares under NYSE Arca Rule 8.201-E, its implications extend well beyond traditional commodity exposure. If adopted, the change could shape the structure of future crypto-linked products, including those tied to Bitcoin, Ethereum, Solana, and XRP, and influence how issuers build portfolios that combine spot holdings, exchange-traded products, and derivatives.
The Core of the Proposal
Under the proposed amendment, at least 85% of a trust’s net asset value would need to be held in assets that are already permitted under the exchange’s rulebook. Those eligible assets may include commodities, commodity-related assets, securities, cash, and cash equivalents. The remaining 15% could consist of assets that do not independently satisfy the rule’s eligibility criteria, as long as the trust as a whole remains compliant.
That may sound like a narrow technical adjustment, but it would create a more explicit threshold for what qualifies under the generic listing route. In practice, it could make product design both more flexible and more constrained at the same time: more flexible because issuers would retain limited room to hold non-qualifying assets, and more constrained because the majority of the portfolio would need to remain firmly inside a recognized compliance perimeter.
The SEC’s notice makes clear that the agency is now assessing whether the proposed rule change is consistent with the Securities Exchange Act. Market participants and other stakeholders have been invited to submit comments, meaning the proposal is still subject to debate, revision, or rejection.
Why Derivatives Matter So Much
One of the most important elements in the filing is how derivatives would be measured. According to the proposal, both listed and over-the-counter derivatives exposures would be calculated using total notional value. That is a consequential shift because it means an options or futures position can have a much larger impact on eligibility calculations than a simple mark-to-market valuation might suggest.
For crypto-linked trusts, this is especially relevant. Many proposed or future products may seek to combine direct exposure to digital assets with structured derivatives overlays for hedging, yield enhancement, or tactical exposure. Under the NYSE Arca proposal, those strategies could become more difficult to fit inside the generic listing framework if the derivatives are not tied to qualifying assets in a way that satisfies the rule.
The filing also states that sponsors would need to monitor the 85% threshold daily. If a trust falls out of compliance, NYSE Arca must be notified immediately. That daily monitoring obligation signals a stricter operational standard, not just a one-time test at launch. In other words, eligibility would be a continuing condition, not merely a pre-listing checkbox.
How Bitcoin and XRP-Linked Products Could Be Affected
The document provides examples that help explain why the proposal could matter for future Bitcoin- and XRP-related exchange-traded products. In one example, a trust with 95% of its value invested in Bitcoin, Ethereum, Solana, and XRP could satisfy the proposed standard. The rationale is that those assets may qualify if they are underlying assets for futures contracts that have traded on a designated market for at least six months and are associated with exchange-traded products providing significant exposure.
This example is notable because it suggests that certain major crypto assets could be accommodated within the revised framework, provided they meet the rule’s conditions. For issuers, that could offer a clearer pathway for structuring diversified crypto trusts that still remain within generic listing standards.
But the same filing also shows where the line would be drawn. In another example, a trust holding Bitcoin together with an over-the-counter call option on a Bitcoin ETF would fail the proposed test if only about 71% of its overall exposure qualified under the rule. That means a product could hold a core eligible crypto asset and still fall short if its derivatives sleeve introduces too much non-qualifying exposure.
The practical takeaway is that non-qualifying derivatives may dilute or even override otherwise qualifying Bitcoin exposure. This is a crucial point for sponsors designing products around familiar names like Bitcoin or XRP. The question is no longer only what the underlying asset is, but how the total risk exposure of the product is assembled and measured.
A Tighter Generic Listing Route, Not a Blanket Ban
The proposal does not amount to a broad prohibition on crypto or commodity trusts. Instead, it appears to create a more disciplined framework for products seeking approval through the generic listing process. NYSE Arca argues that the 85% threshold is aligned with comparable commodity-based exchange-traded product standards and is designed to improve the exchange’s ability to surveil trading, deter manipulation, and protect investors.
From the exchange’s perspective, the rule is intended to preserve room for innovation while ensuring that most of a product’s exposure remains connected to assets and markets that support effective oversight. The exchange also stated in the filing that the proposal would not impose any unnecessary or inappropriate burden on competition.
This positioning matters. Rather than suggesting regulators want fewer products, the proposal can be read as an attempt to define a clearer architecture for what kinds of products can scale through standardized approval channels. For issuers, that may still be a positive development if it reduces ambiguity, even if it also raises the bar for compliance and portfolio construction.
NFTs and Collectibles Would Be Excluded
The filing also makes clear that non-fungible assets and collectibles would be excluded from the rule’s definition of commodities for generic listing purposes. That means trusts holding such assets would not be eligible under the standard framework contemplated in Rule 8.201-E.
NYSE Arca could still seek separate approval for those products on a case-by-case basis, but they would not benefit from the streamlined pathway available to more conventional commodity or crypto trust structures. The exclusion indicates that, in the exchange’s view, NFTs and collectibles were not contemplated when these generic standards were originally developed.
This distinction is important because it reinforces the idea that the proposal is not simply about digital assets as a category. It is about drawing boundaries around which kinds of exposures fit into a surveillance-friendly, standardized market structure and which require individualized regulatory review.
What Comes Next
During the review period, the SEC may approve the proposal, disapprove it, or initiate further proceedings, including a hearing process. Public comments will likely play a role in shaping how the agency evaluates the rule’s consistency with the Exchange Act and broader investor protection standards.
For the crypto industry, the proposal is worth watching closely. It points to a future in which listing eligibility for exchange-traded crypto trusts may depend less on headline asset names alone and more on the composition, measurement, and monitorability of the full exposure stack. Spot holdings in major tokens may still fit. But layered structures involving OTC options or other non-qualifying instruments could face meaningful obstacles.
In that sense, the NYSE Arca filing reflects a broader regulatory trend: allowing more products to come to market, but only within frameworks that make risk easier to measure and surveillance easier to perform. If the SEC ultimately supports the rule, issuers pursuing Bitcoin, XRP, or broader crypto trust listings may need to rethink not just what they hold, but how every element of that exposure is classified under the exchange’s rules.