SEC Opens Door to New Crypto ETF Rule With 85% Asset Requirement
The U.S. Securities and Exchange Commission has moved to reshape the structure of crypto exchange-traded funds, opening a public comment period on a proposed rule that would standardize how multi-asset crypto ETFs are built and approved.
Summary:
- SEC proposes 85% rule for approved crypto ETF assets.
- Bitcoin, Ethereum, Solana and XRP named as core holdings.
- Framework aims to limit risk and enable diversified crypto funds.
The proposal, tied to a filing by NYSE Arca, signals a shift away from case-by-case approvals toward a rules-based framework. If adopted, it would give issuers a clearer pathway to launch diversified crypto ETFs without navigating repeated regulatory hurdles for each asset included.
New Framework Defines “Approved” Crypto Assets
At the center of the proposal is a two-tier system that separates qualifying assets from higher-risk tokens. Under the rule, at least 85% of an ETF’s holdings must consist of “approved” digital assets – those with established, regulated futures markets and sufficient trading history.
The filing explicitly highlights Bitcoin, Ethereum, Solana and XRP as key examples that meet these criteria. These assets form the foundation of what regulators increasingly view as institutionally viable digital commodities.
The remaining 15% of a fund’s net asset value can be allocated to non-qualifying tokens. This creates a controlled window for innovation while limiting exposure to assets without established market infrastructure.
READ MORE: Crypto Bill Odds Cut to 33% as TD Cowen Flags Senate Roadblocks
A stricter variation applies when funds include cash or cash equivalents. In those cases, up to 95% of holdings must meet the approved standard, reinforcing stability and reducing volatility risks within the product structure.
Implications for Issuers and Market Structure
The rule carries significant implications for firms such as BlackRock, Fidelity Investments and Grayscale Investments, which have been actively pursuing broader crypto ETF offerings.
By introducing a standardized threshold, the SEC is effectively enabling diversified “basket” products, such as top-10 crypto index funds, without requiring separate approvals for each underlying asset. This could accelerate product launches and deepen institutional participation in digital asset markets.
The proposal also introduces tighter controls on derivatives exposure. Compliance will be measured using the total nominal value of positions, not just capital deployed. This detail targets leveraged and yield-enhanced strategies, which could otherwise distort a fund’s true risk profile.
The timing reflects broader regulatory alignment between the SEC and the Commodity Futures Trading Commission, which recently identified a group of digital assets as commodities. Together, these efforts suggest regulators are building a coordinated framework for integrating crypto into traditional financial markets.
The SEC has opened a 21-day comment window, with feedback expected from exchanges, asset managers and market participants. The outcome could shape the next phase of crypto ETF development, moving the market closer to standardized, institution-ready investment vehicles.
Alexander Stefanov
Reporter at CoinsPress
Alex is Editor-in-Chief of Coinspress and co-founder of Millennial Media Group, with nearly a decade of experience covering financial markets - crypto first, then everything else. It started in 2016 with Bitcoin. Like most people at the time, he didn't fully understand it - so he kept digging. Blockchain, tokenomics, the projects, the cycles. That curiosity never stopped, and eventually pulled him into traditional markets too: equities, commodities, macro. Not because he left crypto behind, but because you can't properly understand one without the other. What drives him is straightforward: he wants to know why something is happening, not just that it's happening. Most market coverage stops at the headline - price up, price down, here's a chart. Alex finds that kind of reporting actively unhelpful. If you walk away from an article without understanding the mechanism behind the move, what did you actually learn? He holds a degree in Tourism from New Bulgarian University - not the most obvious path into financial markets, but markets have a way of pulling in people who are simply too curious to stay out. He has authored over 200 in-depth analyses and more than 10,000 articles across crypto and traditional finance. He still thinks every day in markets teaches him something new. That's probably why he hasn't stopped.
