In a groundbreaking move, the U.S. Securities and Exchange Commission (SEC) is initiating new regulatory measures for cryptocurrency exchange-traded funds (ETFs). The Commission has invited public opinions on a proposed rule modification from NYSE Arca, intended to overhaul the current asset structure associated with crypto ETFs.
What Does the 85% Asset Requirement Entail?
According to the proposal by NYSE Arca, 85% of a crypto fund’s entire value must comprise pre-approved, well-defined assets that comply with the exchange’s listing and oversight criteria. The remaining 15% can incorporate other types of assets, granted they meet certain conditions. This adjustment aims to simplify investors’ access to a more diversified crypto portfolio within a single product.
A new method is also being introduced for determining the value of derivative products. NYSE Arca plans to evaluate these derivatives based on their total gross notional value, replacing the prior net-value assessment. This is expected to enhance market transparency by offering clearer insights into derivative risks.
Are All Crypto Assets Eligible?
The proposal further outlines the crypto assets that qualify for inclusion in ETF offerings. Notably, digital assets with intrinsic “collectible value,” such as non-fungible tokens (NFTs), are explicitly ineligible. Each attempt to include such assets within a product will necessitate separate approval.
NYSE Arca’s proposal underscores that “the spectrum of assets eligible for funds containing multiple approved cryptocurrencies is now distinctly delineated, but additional approval processes are mandatory for collectibles or NFTs.”
This regulatory development marks the SEC’s intent to create a more structured and transparent legal framework under its current leadership. Since 2025, after Paul Atkins became the Commission’s chair, enhanced guidelines and collaborations with the Commodity Futures Trading Commission aim to stabilize the burgeoning crypto sector.
Industry specialists suggest these new directives provide clear pathways for institutional investors in crafting innovative products. The regulatory progresses address elevated transparency expectations among stakeholders in the crypto industry.
How is Solana Coping With Market Forces?
Parallel to these regulatory changes, Solana (SOL) has been facing market challenges. After declining to $84.80 last week, as per data from CryptoAppsy, the coin struggles to rebound beyond its resistance levels at $89 to $91.
The near-term outlook remains bearish, though analysts point out that crucial support levels for SOL are $83.30 and $81.75. Breaching these thresholds might push the price further to $74.50, yet a severe 60% plunge seems unlikely at present.
Solana’s current trajectory is dominated by distribution rather than accumulation, indicating continued selling pressure. Without a swift recovery above $86, the unfavorable trend may persist in the short term.
