The U.S. Securities and Exchange Commission (SEC) has approved a rule change enabling the listing and trading of options on multi-cryptocurrency commodity trusts on the NYSE American exchange. This move, formalized in Release No. 34-105133, amends Exchange Rule 915 to establish specific listing criteria for these derivative products.
The approved framework requires that every cryptocurrency held by a qualifying trust must have maintained an average daily market value of at least $700 million over the prior 12 months. Furthermore, each underlying asset must have a derivatives contract trading on a market that maintains a comprehensive surveillance-sharing agreement with NYSE American. The trust shares themselves must also meet the standard listing requirements for ETF options and be classified as National Market System (NMS) stocks.
This approval builds upon the SEC's September 2025 decision to adopt generic listing standards for Commodity-Based Trust Shares, which streamlined the listing process for the underlying trust shares. The new rule extends this streamlined path to options written on those shares, allowing exchanges to list them without needing a separate SEC approval for each product. Legal analysts from Goodwin noted this "will have a clearer and faster path to market, which will maximize investor choice and foster innovation."
The most prominent existing product that fits this new framework is Grayscale's CoinDesk Crypto 5 ETF (GDLC), which holds a basket of assets including Bitcoin (75.48%), Ethereum (15.55%), XRP, Solana, and Cardano. While GDLC is a prime candidate, the SEC's approval establishes a regulatory framework, not an immediate product launch. NYSE American must still certify that individual trusts meet the criteria before options trading can begin, and no specific timeline has been announced.
The development is seen as a significant step in providing institutional and retail investors with regulated tools to hedge positions or gain directional exposure to a basket of cryptocurrencies without directly owning the assets. It also underscores the SEC's continued emphasis on liquidity, surveillance, and market structure in its approach to crypto-related financial products.
