The U.S. Securities and Exchange Commission has opened a public comment period on a proposed rule change from NYSE Arca that could materially affect how future crypto and commodity trust products qualify for exchange listing. At the center of the proposal is a new 85% asset eligibility threshold, which would require most of a trust’s net asset value to remain invested in assets that already fit within the exchange’s existing generic listing standards.
While the proposal does not approve or deny any specific exchange-traded fund, it could become an important gatekeeping framework for future products linked to bitcoin, XRP, ether, solana, and other commodity-like digital assets. The rule would also tighten how derivative exposure is measured, potentially making it harder for some structures to qualify through the streamlined generic listing route.
A New Listing Standard for Commodity-Based Trust Shares
According to the SEC notice, NYSE Arca wants to amend Rule 8.201-E, the exchange’s generic listing framework for commodity-based trust shares. Under the proposed revision, at least 85% of a trust’s net asset value would have to be held in assets that are already eligible under the rule. Those qualifying assets may include commodities, commodity-based assets, securities, cash, and cash equivalents.
The remaining 15% could be allocated to assets that do not independently satisfy the listing standard, as long as the trust remains compliant overall. In practice, that would give issuers some flexibility, but only within a clearly defined limit. The proposal signals that NYSE Arca is trying to support a broader menu of product listings without abandoning the surveillance and investor protection logic behind its existing framework.
For crypto issuers, that balance matters. A trust would no longer be judged only by whether it contains a qualifying core asset; the exchange would also look more closely at how much of the overall portfolio is tied to instruments or exposures outside the established rule set.
Derivatives Would Be Counted by Gross Notional Value
One of the most consequential parts of the proposal is the treatment of derivatives. NYSE Arca said listed and over-the-counter derivatives should be counted based on their aggregate gross notional value. That means large options or futures positions could have a much bigger effect on compliance calculations than some market participants might expect if they were thinking in terms of net exposure.
This approach could significantly affect trusts that rely on derivatives to supplement or shape crypto exposure. Even if the underlying reference asset is bitcoin or another widely followed digital asset, the use of non-qualifying derivatives could drag the product below the 85% threshold. Sponsors would therefore need to monitor compliance daily and promptly notify NYSE Arca if a trust falls out of line with the proposed requirement.
That daily compliance obligation is notable because it suggests the exchange wants a more active and transparent oversight model for products using complex exposure structures. For issuers, this would likely mean tighter portfolio controls and more operational discipline if they want to preserve eligibility under the generic listing route.
Why Bitcoin, XRP, Ether, and Solana Matter in the Filing
The proposal includes examples that help explain how the rule could work in practice. In one scenario, a trust with 95% of its value invested in qualifying assets such as bitcoin, ether, solana, and XRP would meet the proposed standard. The filing indicates that these assets can satisfy the rule’s eligibility framework 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.
That example is important because it shows how certain major digital assets may fit into the exchange’s commodity-based trust framework when the surrounding market structure is mature enough. It also suggests that qualification may depend not only on the asset itself, but on the broader ecosystem around it, including futures trading history and the existence of exchange-traded products.
For market watchers focused on possible bitcoin or XRP-linked ETF pathways, the takeaway is that the exchange is trying to define a more formulaic route for eligibility. But the formula comes with stricter portfolio composition rules, which may limit product design flexibility.
How a Crypto Product Could Fail the Test
The filing also offers an example of where a trust would fall short. A product holding bitcoin alongside over-the-counter call options on a bitcoin ETF could fail the proposed standard if only around 71% of its exposure qualifies under the rule. That example underscores the practical impact of the gross notional methodology for derivatives.
In other words, a trust could hold an asset as established as bitcoin and still fail the generic listing standard if its derivative sleeve is large enough or structured in a way that does not independently satisfy the exchange’s criteria. This is especially relevant for issuers that use derivatives to gain leverage, hedge, or create synthetic exposure. Under the proposed framework, those design choices could directly affect listing eligibility.
The message from the filing is clear: access to the generic listing route may expand in some respects, but only for products whose exposure remains predominantly anchored in assets that fit the exchange’s approved surveillance framework.
NFTs and Collectibles Would Be Excluded
Beyond traditional commodities and large-cap digital assets, the proposal also addresses categories that would not fit the rule. NYSE Arca said non-fungible assets and collectibles should be excluded from the commodity definition used in this generic listing standard. The exchange stated that such assets were not contemplated when the original standards were adopted.
That does not necessarily mean products tied to NFTs or collectibles could never seek a listing. Instead, it means they would not qualify through the streamlined generic path contemplated in Rule 8.201-E. Any such product would likely require a separate approval process, which is generally more specific and potentially more burdensome.
This distinction matters because it highlights where regulators and exchanges still see a boundary between more standardized, surveillable exposures and asset classes that remain less suited to broad generic treatment.
Regulatory Intent: Flexibility With Tighter Guardrails
NYSE Arca framed the proposal as consistent with comparable commodity-based exchange-traded products and argued that the rule change would support competition among issuers and listing venues. At the same time, the exchange emphasized that the structure is designed to improve market surveillance, deter manipulation, and protect investors.
That framing reflects the broader regulatory posture now shaping crypto market access in the United States: more room for product development may be possible, but only where exchanges can demonstrate robust monitoring tools and manageable market structure risks. The 85% threshold appears to be an attempt to formalize that balance.
For the SEC, the question is whether this framework aligns with the Securities Exchange Act. During the review period, the agency can approve, reject, or institute further proceedings on the proposal. Interested parties are being invited to submit comments on whether the change is appropriate and legally consistent with the Act.
What the Proposal Could Mean for Future ETF Listings
Although the filing is procedural rather than product-specific, its implications could be meaningful for the next generation of crypto-linked exchange-traded products. If adopted, the rule would offer issuers a clearer listing standard, but one that leaves less room for aggressive derivative overlays or broad allocations to non-qualifying assets.
For bitcoin and XRP watchers in particular, the proposal is worth following because it could shape how future trusts are structured before they ever reach the final approval stage. Products built around spot holdings and qualifying market infrastructure may have a more straightforward case. Products that rely heavily on OTC derivatives or unconventional asset sleeves may face a narrower path.
In that sense, the SEC’s comment process is about more than one technical exchange rule. It is part of the ongoing effort to define how crypto and commodity investment vehicles can enter public markets under standards that regulators consider transparent, surveillable, and consistent with investor protection.
The core takeaway is straightforward: the door to additional crypto and commodity trust listings may remain open, but the threshold for acceptable portfolio composition could become much more explicit. Under NYSE Arca’s proposal, flexibility would still exist, yet it would operate inside a stricter framework where 85% of assets must meet established eligibility standards and derivatives would receive much closer scrutiny.