SEC approves NYSE American listing of multi-crypto asset commodity trust options

According to Huoxun Finance, the U.S. Securities and Exchange Commission (SEC) has approved a rule change application by the NYSE U.S. Board to list options on multi-cryptocurrency commodity trusts. Previously, the exchange only allowed the listing of options on single-cryptocurrency commodity trusts; this rule change expands the scope to include options on commodity trusts holding multiple cryptocurrencies. Listing requires meeting the following prerequisites: each crypto asset held by the trust must individually meet high liquidity standards—an average daily market value of at least $700 million over the past 12 months; derivative contracts for the crypto asset must be traded on a platform with a comprehensive surveillance-sharing agreement with the exchange; and the trust shares must meet the exchange's initial and ongoing listing standards for ETF options and be NMS stock. The SEC review concluded that this rule change will provide investors with greater exposure to crypto assets and hedging tools without requiring additional SEC approval for each transaction, thus improving market efficiency.