The Securities and Exchange Commission (SEC) has voted to approve proposed rule changes by three national securities exchanges, establishing generic listing standards for exchange-traded products (ETPs) holding spot commodities, a category now explicitly including digital assets. This pivotal decision means that exchanges can now list and trade Commodity-Based Trust Shares that meet these newly approved generic listing standards without first submitting a specific proposed rule change to the Commission, as was previously required under Section 19(b) of the Exchange Act.
SEC Chairman Paul S. Atkins emphasized that this approval ensures capital markets remain a global leader in digital asset innovation. He noted the move aims to maximize investor choice and foster innovation by streamlining the listing process and reducing barriers for investors seeking to access digital asset products within America's trusted capital markets. Complementing this perspective, Jamie Selway, Director of the Division of Trading and Markets, stated that the Commission’s action provides crucial regulatory clarity and certainty to the investment community. This clarity is delivered through a rational, rules-based approach for bringing products to market, all while maintaining robust investor protections.
Beyond the broader approval of generic listing standards for Commodity-Based Trust Shares, the Commission also granted specific product approvals. This includes the listing and trading of the Grayscale Digital Large Cap Fund, which tracks spot digital assets based on the CoinDesk 5 Index. Furthermore, the SEC approved the listing and trading of p.m.-settled options on both the Cboe Bitcoin U.S. ETF Index and the Mini-Cboe Bitcoin U.S. ETF Index, which will feature third Friday expirations, nonstandard expirations, and quarterly index expirations.