NYSE Arca proposal: Crypto ETF 85% qualifying asset threshold—BTC, ETH, SOL, XRP clear the bar

According to a report on News.Bitcoin.com on April 28, NYSE Arca, a subsidiary of the New York Stock Exchange, has submitted to the U.S. Securities and Exchange Commission (SEC) a revised proposal for Rule 8.201-E (Generic). On April 27, the SEC published a notice soliciting public comments. The core of the proposal is to set a quantitative “qualified asset threshold” for crypto ETF trusts.

85% threshold: a specific definition of qualified assets

The core provision of the proposal is: at least 85% of the trust’s net assets (NAV) must be held in “qualified assets permitted under the rule,” including:

commodities

commodity-based assets

securities

cash and cash equivalents

Compliance requirement: the trust issuer must monitor the 85% threshold every day, and if the trust falls below the threshold, it must immediately notify NYSE Arca. When derivatives are included, they are calculated using aggregate gross notional value—meaning that large-scale options or futures positions may affect qualification determinations.

Examples of what applies and what does not: BTC, ETH, SOL, XRP pass; OTC options fail

News.Bitcoin.com compiles the specific case examples provided by NYSE Arca:

Example that applies: a trust holding 95% Bitcoin (BTC), Ether (ETH), Solana (SOL), and Ripple (XRP) meets the 85% threshold. The basis for the qualification of these four assets is that there are at least 6 months of futures trading records in the specified market, and there are related exchange-traded products (ETPs).

Example that does not apply: a trust holding Bitcoin plus a “Bitcoin ETF over-the-counter (OTC) call option.” If the aggregate gross notional value of the OTC options is included, the proportion of qualified assets drops to about 71%, which does not meet the 85% threshold.

In addition, NFTs and collectibles are explicitly excluded from the definition of “commodities,” because when the general standard was originally set, it did not cover these types of assets.

Next: SEC review pathway and comment solicitation

The SEC has three options for rule proposals from self-regulatory organizations (SROs): approve, deny, or open institute proceedings, with no fixed timeline. News.Bitcoin.com reports that the current proposal is at the stage of soliciting public comments.

NYSE Arca’s position is that the 85% threshold is “consistent with other similar commodity-based ETPs.” If the proposal is ultimately approved, it will establish a standardized listing benchmark set for crypto trusts, meaning issuers would not need to apply for special treatment on a case-by-case basis—this would have a structural impact on the standardized pathway for future various altcoin ETF applications.

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