NYSE Arca Proposes New Rules for Multi-Asset Crypto ETFs

NYSE Arca files a proposal for a universal framework for basket crypto funds, introducing the 85% rule for regulated assets like Bitcoin and Ethereum.

A new proposal, filed through NYSE Arca, represents a significant shift in how “basket” type crypto funds are evaluated. Rather than requiring every new product to undergo an individual approval process, regulators are looking to introduce a universal framework that clearly defines eligible assets.

The core of the proposal is the so-called “85% rule.” To qualify, a fund must hold at least 85% of its assets in cryptocurrencies that have a developed, regulated futures market with at least a six-month history. This effectively includes leading assets such as Bitcoin and Ethereum, as well as other tokens with similar infrastructure.

The remaining 15% can be invested in newer or higher-risk digital assets, creating opportunities for more flexible and diversified portfolios.

A Path Toward Mainstream Investment Products

This new framework is viewed as a vital step toward creating crypto index funds—for instance, products tracking the “top 10” digital assets. Until now, such funds have been hindered by the requirement that every single position be approved individually.

The proposal also includes stricter requirements for the use of derivatives. Regulators specify that exposure must be calculated based on the full notional value of the contracts rather than just the premium paid—a detail that limits the potential for creating excessively leveraged positions or high-yield strategies.

At the same time, certain assets like NFTs and collectible tokens remain outside the scope of eligible investments, confirming the regulator’s more conservative approach.

Part of a Broader Regulatory Transformation

The move comes amid broader efforts to establish a clear regulatory framework for digital assets in the United States. Joint actions between the SEC and CFTC have already led to the classification of several crypto assets as “digital commodities,” facilitating their inclusion in regulated products.

Analysts see the proposal as preparation for the next stage of market development: the integration of crypto assets into mainstream investment portfolios, including pension schemes and standard brokerage accounts.

The Industry Awaits Clarity

The proposal is open for public comment, giving market participants the chance to weigh in on whether the 15% limit for riskier assets is too restrictive and whether the six-month futures history requirement is appropriate.

For major asset managers like BlackRock and Fidelity, this could mean a significantly faster path to new products and easier access to investor capital.

Ultimately, the proposed rule signals a pivotal change: Crypto ETFs are no longer an exception but are gradually becoming a standard part of the financial system.