SEC approves NYSE American to list options on multiple crypto asset commodity trusts

BlockBeats reported that on April 2, the U.S. Securities and Exchange Commission (SEC) announced its approval of a rule change application for the listing on NYSE American of options on multiple cryptocurrency commodity trusts. Previously, options were only allowed for single-asset cryptocurrency commodity trusts, but now the coverage is expanded to support options on trusts holding multiple cryptocurrencies.

The prerequisites for listing are:

Each cryptocurrency held by the trust must individually meet a high liquidity standard—an average daily market value of at least $700 million over the past 12 months, and derivatives contracts for that cryptocurrency must be subject to a comprehensive surveillance-sharing agreement with the trading platform.

The trust shares must comply with the initial and continued listing standards for ETF options set by the trading platform, and be classified as NMS stocks.

After review, the SEC believes this rule change will provide investors with broader cryptocurrency investment exposure and hedging tools, while removing the need for an additional SEC approval for each instance, thereby improving market efficiency.