SEC reviews NYSE Arca 85% rule for crypto, commodity trusts
SEC opens comment period on NYSE Arca proposal to require 85% of a trust’s net asset value meet exchange eligibility standards, counting listed and OTC derivatives by gross notional.
The Securities and Exchange Commission opened a comment period on April 27, 2026, on a NYSE Arca proposal to amend Rule 8.201-E, the generic listing standard for commodity-based trust shares. The filing would require at least 85% of a trust’s net asset value to be held in assets that meet the exchange’s eligibility standards.
Under the proposal, listed and over-the-counter derivatives would be counted by aggregate gross notional value when calculating the 85% threshold. Trusts could hold up to 15% of assets in instruments that do not independently meet the rule’s criteria, provided the fund otherwise remains compliant.
Sponsors would be required to monitor the 85% threshold daily and promptly notify NYSE Arca if a trust falls out of compliance, the filing says.
The filing includes examples showing how the threshold would apply. A trust with 95% of its value in qualifying assets such as bitcoin, ether, solana and XRP would meet the standard because those assets underlie futures traded on designated markets. A gold trust holding physical gold and gold futures would qualify if its holdings meet current criteria. A trust that combines bitcoin with over-the-counter call options on a bitcoin ETF could fail the test if the non-qualifying derivative exposure reduces qualifying assets to about 71%.
The filing proposes excluding non-fungible assets and collectibles from the rule’s definition of commodity. Those products could still seek individualized approval but would not qualify under the generic listing route. “The exchange proposes to amend Rule 8.201-E (Generic) to modify the generic listing standards for commodity-based trust shares,” the filing says.
NYSE Arca added that the 85% threshold is intended to align with standards for other commodity-based exchange-traded products and to support market monitoring and investor protections. “The exchange does not believe that the proposed rule change will impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act,” the filing states.
The SEC will accept public comments during the review and may approve the change, reject it, or open further proceedings. Market participants, issuers and other stakeholders may submit feedback during the comment period.
If adopted, sponsors and trusts would need to track qualifying exposure and derivative notional daily and report any breaches to NYSE Arca promptly.
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