Crypto ETF News: Nasdaq Files to Expand ETF Options
Pravin Bisen
Nasdaq Files SEC Proposal to Expand Crypto ETF Options
In the latest crypto ETF news, Nasdaq ISE, LLC filed a proposed rule change with the U.S. Securities and Exchange Commission (SEC) on July 28, 2026.
The filing asks the SEC to widen listing rules for options on digital-commodity exchange-traded funds, also called "commodity-based trusts."
The proposal covers trusts holding digital commodities such as Bitcoin (BTC), Ethereum (ETH), Solana (SOL), XRP, Chainlink (LINK), and Hedera (HBAR). This crypto ETF news centers on File No. SR-ISE-2026-42 and Release No. 34-106067, filed under Section 19(b)(1) of the Securities Exchange Act of 1934.
Source: Official File
What Actually Happened
Nasdaq ISE proposed changes to its Options 4, Section 3 rulebook. Three main updates stand out in this crypto ETF news:
Term change: the label "crypto asset" is replaced with "digital commodity" to match Nasdaq Rule 5711(d). The new definition ties value to a functional crypto system's programmatic operation and supply-demand dynamics, not to the managerial efforts of others.
Fifteen percent buffer: up to 15% of a trust's net asset value (NAV) can hold digital commodities that do not meet the standard derivatives-market rule.
Surveillance rule: at least 85% of a trust's holdings must underlie a derivatives contract traded on a market with a comprehensive surveillance sharing agreement, made directly or through the Intermarket Surveillance Group (ISG).
Every underlying holding must still meet a $700 million average daily global market value threshold over the past 12 months, whether or not it falls inside the 15% buffer.
Why It Matters
This crypto ETF news signals a shift toward standardized rules for listing options on regulated digital-asset products. Under the proposal, exchanges could list qualifying options on commodity-based trusts without asking the SEC for fresh approval on each product.
Nasdaq states this approach protects investors while removing repeat filing steps for products that already meet its criteria. It could also pave the way for a wider mix of eligible tokens, provided each one clears the liquidity bar.
For investors, that could mean faster access to hedging tools once approved, since new qualifying products could launch without a separate SEC filing each time.
Official Filing Details
Item | Detail |
File Number | SR-ISE-2026-42 |
Release Number | 34-106067 |
Market Value Threshold | $700 million (12-month average) |
Surveillance Requirement | 85% of NAV |
Non-Surveilled Buffer | Up to 15% of NAV |
Public Comment Window | 21 days from publication |
Market Context
Nasdaq ISE's filing builds on earlier SEC actions. In March 2026, the Commission approved SR-ISE-2025-30, letting Nasdaq ISE list options on Commodity-Based Trusts holding several tokens at once instead of just one.
A related exchange-level change, SR-NASDAQ-2026-032, added the 15% buffer and the new digital-commodity definition on July 27, 2026. IBIT, the first US spot Bitcoin fund, has traded contracts since January 2024, and that track record helped shape this broader proposal.
Regulators have applied similar surveillance-sharing standards to traditional commodity trusts for years, extending a familiar framework to this newer trust category.
What Comes Next
The SEC will accept public input on this crypto ETF news for 21 days after the Federal Register publication date. The Commission then has up to 45 days, or as long as 90 days if it needs more time, to approve or disapprove the proposed rule change or to open formal proceedings on it.
Final Thoughts
This filing points to a more standardized path for listing options on regulated digital-asset products, and it's likely to stay part of the broader crypto ETF news cycle in the weeks ahead.
If the SEC approves the proposal, Nasdaq ISE could bring qualifying trusts to market faster, without a separate rule filing for each one. The 85% surveillance floor and the $700 million liquidity threshold stay in place, so existing investor protections carry over into this update.
The next milestone is the close of the 21-day comment window, followed by the SEC's decision within 45 to 90 days.
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