SEC, Cryptocurrency ETF '85% Standard' Review... Will the listing process accelerate or will the threshold be raised

SEC (U.S. Securities and Exchange Commission) is considering introducing the “85% Standard,” which is expected to clarify the listing requirements for cryptocurrency ETFs. However, market opinions differ on whether this will accelerate approval processes or raise the bar.

According to SEC Release No. 27, the New York Stock Exchange Arca (NYSE Arca) has submitted a rule change proposal to strengthen listing standards for cryptocurrency and commodity trusts, and has begun soliciting public comments. The amendment revises “Rule 8.201-E,” stipulating that at least 85% of the trust’s net assets must be composed of existing qualified assets.

The “85% Rule” core… impacts Bitcoin, XRP

Under the new standard, only assets traded on the futures market for a certain period, such as Bitcoin (BTC), Ethereum (ETH), Solana (SOL), and Ripple (XRP), are recognized as qualified assets. At least 85% of total assets must be allocated according to this standard, with the remaining 15% allowed to be non-qualified assets.

In particular, derivatives will be calculated based on “total notional value.” This has raised concerns that some ETF structures may find it difficult to meet the standard. For example, trusts holding 95% in Bitcoin and other major assets can meet the requirement, but if they include structures like Bitcoin ETF options, with a qualified ratio of only 71%, they will be eliminated.

Enhanced monitoring vs. reduced product diversity

NYSE Arca explained that this regulation aims to strengthen market oversight and reduce “manipulability.” At the same time, it states that products meeting certain standards can be supported for faster listing.

However, industry experts also express concerns. Issuers must “daily” check whether the 85% standard is met; if not, they must notify the exchange immediately. The more complex the product structure, the higher the maintenance costs.

Additionally, non-fungible assets like NFTs are explicitly excluded from this regulation, and related products will not be able to utilize the existing “general listing track.”

Will ETF approval speed up or narrow?

The SEC can approve, reject, or conduct additional review procedures for this proposal, with a comment period expected to last approximately 21 to 45 days.

This move is an extension of the “General Listing Standards for Cryptocurrency ETPs” introduced in mid-2025. At that time, the review period for individual products was shortened from 240 days to about 75 days.

But in practice, friction continues. Grayscale’s competitor GraniteShares’ XRP ETF has experienced repeated delays, indicating that procedural barriers still exist even under simplified systems.

Ultimately, this “85% Rule” aims to standardize and expand the ETF market, but may also impose new entry barriers for certain products. The market is closely watching whether this standard will focus more on “speed” or “screening.”

Summary by TokenPost.ai

🔎 Market interpretation The SEC’s introduction of the “85% Rule” will make cryptocurrency ETF listing standards clearer but also reinforce asset allocation restrictions, potentially reducing product diversity ETFs centered on major assets like Bitcoin, Ethereum, XRP will be more favorable, while structures based on derivatives may be at a disadvantage Approval speed may increase, but actual approval processes remain uncertain

💡 Strategic points When investing in ETFs, asset allocation ratios (especially whether they meet the 85% standard) should be a core check point ETFs containing complex derivatives need to consider both structural and regulatory risks Regulatory clarity is strengthened, which is positive for long-term institutional capital inflows

📘 Terminology explanations Qualified assets: Assets traded on the futures market for a certain period that meet SEC standards Total notional value: An evaluation method based on the total contract size of derivatives rather than actual invested amounts ETP: Listed trading products including ETFs, traded on exchanges like stocks

💡 Frequently Asked Questions (FAQ)

Q. Why is the “85% Rule” important for investors? Because at least 85% of ETF assets must be qualified assets, the product’s structure will greatly influence whether it can be listed. If it doesn’t meet the standard, the investment opportunity itself may disappear, so confirming the allocation ratio before investing is crucial.
Q. Which ETFs will be more advantageous, and which will be at a disadvantage? ETFs built around major assets like Bitcoin and Ethereum are more likely to meet the standard, thus more favorable. Conversely, structures with high proportions of options or other derivatives may struggle to reach the 85% threshold and could be at a disadvantage.
Q. Will ETF approval speed really increase? As regulations become clearer, formal review processes may speed up, but actual approval still depends on SEC judgment and market conditions. Some products still face delays, so the improvement in speed may be limited.

TP AI notes: Summarized based on TokenPost.ai language model. May omit key details or be inconsistent with facts.