CryptoSlate
The SEC approved a Nasdaq Texas rule change on Sept. 3 that lets qualifying Commodity-Based Trust Shares hold up to 15% of net asset value in assets that fall outside the exchange's eligibility tests, while the remaining 85% must stay in cash, cash equivalents, or qualifying commodities and securities. For a Bitcoin-heavy trust, that 15% bucket can hold specified digital commodities or otherwise ineligible securities, opening room for active strategies, altcoins, and derivatives without triggering a fresh SEC approval for each product. The agency used a worked example: a trust with $100 million in Bitcoin plus call options on a Bitcoin ETF representing $40 million in gross-notional exposure has $140 million of total exposure, of which only 71.42% qualifies toward the 85% threshold.
Why it matters
The change is a generic-listing standard, not a green light for any single fund, and it does not let sponsors drop any asset of choice into the 15% bucket. What it does is let commodity-trust products ride Rule 19b-4(e), which permits products that meet an exchange's approved standards to begin trading without a separate product-by-product SEC review. The Texas order also formally extends generic listing to actively managed strategies, which previously sat outside the rule's passive-only framing. Nasdaq Texas described its amendments as materially identical to a July SEC approval for Nasdaq and aligned with parallel NYSE Arca and Cboe BZX standards, so the move is a market-wide alignment of exchange rules rather than a national first.
Market impact
For sponsors, the 15% bucket gives meaningful new latitude for derivatives overlays, treasury diversification, and small altcoin sleeves, but the gross-notional exposure rule is the binding constraint. Sponsors must run the 85% test every business day and notify the exchange after any breach, and the exchange must halt trading if required portfolio disclosures are not posted before the open.
Frequently asked questions
-
What did the SEC actually approve for Nasdaq Texas commodity trusts?
On Sept. 3 the SEC approved a Nasdaq Texas rule letting qualifying Commodity-Based Trust Shares hold up to 15% of net asset value in assets outside the exchange's eligibility tests, while the remaining 85% must stay in cash, cash equivalents, or qualifying commodities and securities.
-
Does this approval let a Bitcoin trust hold any asset it wants?
No. The 15% bucket is limited to specified digital commodities and securities that do not meet the rule's eligibility tests, and any holdings outside the 85% qualifying portion must fit inside that 15% ceiling combined.
-
Why did the SEC use a Bitcoin plus options example that fails the test?
The agency illustrated that derivatives count at gross-notional exposure rather than premium. A trust with $100M in Bitcoin and call options on a Bitcoin ETF representing $40M in exposure has $140M of total exposure, of which only 71.42% qualifies toward the 85% threshold.
-
Does the new standard allow actively managed crypto strategies?
Yes. The amendments formally extend generic listing standards to actively managed Commodity-Based Trust Shares, where the prior rule had contemplated only passive strategies, though sponsors must still disclose holdings publicly before the open and face trading halts for noncompliance.
-
Why is this a market-wide rule change and not a single ETF approval?
Because the order approves an exchange's generic listing standards rather than a specific product, qualifying trusts can be listed under Rule 19b-4(e) without a separate SEC review for each fund. Nasdaq Texas described its amendments as materially identical to a July Nasdaq approval and aligned with NYSE Arca and Cboe…
Glassnode
Lookonchain
CoinDesk
WuBlockchain
TheBlock
Crypto News
CoinTelegraph