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U.S. SEC approves listing of multi-cryptocurrency asset commodity trust options on NYSE American
Golden Finance reports that on April 2, the U.S. Securities and Exchange Commission (SEC) announced approval of a rule change request for options on Multi Crypto Commodity Trusts to be listed on NYSE American (NYSE American). Previously, options were only allowed for single crypto-asset commodity trusts; now they have been expanded to support options on commodity trusts holding multiple crypto assets.
The listing prerequisites are as follows: each individual crypto asset held by the trust must separately meet high-liquidity standards—average daily market value of at least $700 million over the past 12 months, and the crypto asset’s derivative contracts must have a comprehensive surveillance-sharing agreement with the trading platform. Trust shares must meet the trading platform’s initial and continued listing standards for ETF options, and must be NMS-listed stocks.
After reviewing the rule change, the SEC concluded that it would give investors more exposure to crypto-asset investments and hedging tools, without requiring them to apply for SEC approval each time, thereby improving market efficiency.