The U.S. Securities and Exchange Commission has approved a Nasdaq Texas rule that gives qualifying commodity-linked trusts new flexibility to hold limited amounts of otherwise ineligible digital assets while retaining access to streamlined exchange listing. The approval order, dated Sept. 3, applies to Commodity-Based Trust Shares and requires at least 85% of net asset value to be held in cash, cash equivalents, commodities, commodity-based assets, or securities meeting the rule's eligibility tests.
The remaining 15% sleeve may include specified digital commodities or securities that do not satisfy those tests. For Bitcoin-heavy trusts, this could create room for other digital assets or certain derivatives, though sponsors cannot place any asset they choose into the nonqualifying portion. The rule also limits the nonqualifying bucket to assets that qualify as digital commodities under the definition.
The SEC highlighted how derivatives could consume the allowance quickly because the rule counts total underlying exposure, or gross notional value, rather than only the option premium. In an example, a trust holding $100 million of Bitcoin plus 5,000 over-the-counter call options on a Bitcoin ETF representing another $40 million of exposure would have $140 million in total exposure. Only the $100 million in Bitcoin would count toward the 85% test, leaving a qualifying ratio of 71.42%—below the required threshold.
Fund sponsors must check compliance with the 85% threshold daily and promptly notify Nasdaq Texas after any breach. The amendments also permit actively managed strategies, a change from the previous passive-only framework. Trusts must disclose holdings on a free public website before regular trading opens, including quantities and percentage weights. The exchange must halt trading if required portfolio information is not made available to all participants at the same time.
The main benefit is procedural: once generic listing standards are approved, Rule 19b-4(e) allows qualifying products to begin trading without a separate SEC approval for each product. Nasdaq Texas said its amendments are materially identical to changes the SEC approved for Nasdaq in July, with comparable approvals for NYSE Arca and Cboe BZX. The order does not approve any particular fund, and separate authorization would still be required before an individual trust could begin trading.
Initial reports of the clearance did not include a published SEC order or rule text, so full implementation details—including effective date and issuer announcements—remain unconfirmed. The regulatory action concerns a listing framework rather than approval of a specific crypto trust or token.
