SEC Gives Bitcoin-Heavy Trusts a New 15% Window to Venture Beyond Existing Listing Rules

The U.S. Securities and Exchange Commission has approved a rule amendment for Nasdaq Texas that expands the flexibility of qualifying commodity‑based trusts. The change allows these trusts to allocate up to 15% of their net asset value (NAV) to assets that do not meet the standard eligibility tests, while still qualifying for the exchange’s fast‑track listing process.

Key Requirements

Under the September 3 order, a qualifying Commodity‑Based Trust Share must keep at least 85% of its NAV in cash, cash equivalents, commodities, commodity‑based assets, or securities that satisfy the rule’s eligibility criteria. The remaining 15% may be used for specified digital commodities or securities that fall outside those tests.

Impact on Bitcoin‑Heavy Trusts

For trusts heavily weighted toward Bitcoin, the new 15% allowance creates room to add other digital assets or certain derivatives. However, the rule does not permit unrestricted use of the 15% slice; all holdings in that portion must be digital commodities as defined by the rule.

Derivatives and Gross Notional Exposure

Derivatives count against the 15% limit based on their gross notional value, not merely the premium paid. The SEC illustrated this with an example: a trust holding $100 million of Bitcoin and $40 million of over‑the‑counter call options on a Bitcoin ETF would have a total exposure of $140 million. Only the $100 million in Bitcoin qualifies toward the 85% threshold, reducing the qualifying portion to 71.42%—below the required level.

Compliance and Disclosure

Trust sponsors must monitor the 85% threshold daily and notify Nasdaq Texas promptly if a breach occurs. Holdings must be disclosed on a public website before trading opens, and the exchange must halt trading if required information is not available to all participants simultaneously.

Listing Process Benefits

Once the SEC approves an exchange’s generic standards, products that meet those standards can begin trading without a separate SEC filing, streamlining the launch of new crypto‑linked exchange‑traded products. The Nasdaq Texas amendment aligns with similar approvals for Nasdaq, NYSE Arca, and Cboe BZX, and also permits actively managed strategies, expanding beyond the previously passive‑only framework.