SEC approves listing of multiple cryptocurrency asset trust options on NYSE American
The U.S. Securities and Exchange Commission (SEC) announced the approval of the rule change application for listing multiple cryptocurrency commodity trust options on the NYSE American.
Previously, only options for single cryptocurrency commodity trusts were allowed for listing, and now it has been expanded to support options for commodity trusts that hold multiple cryptocurrencies. The prerequisite for listing is that each cryptocurrency held by the trust must individually meet high liquidity standards—an average daily market value of at least $700 million over the past 12 months, and the derivative contracts for that cryptocurrency must be under a comprehensive surveillance sharing agreement with the trading platform. The trust shares must meet the initial and continued listing standards for ETF options set by the trading platform and must be classified as NMS stocks. After review, the SEC believes that this rule change will allow investors to gain more exposure to cryptocurrency investments and hedging tools without the need to apply for SEC approval each time, thereby enhancing market efficiency.
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