Nasdaq ISE wants to list crypto ETF options under a $700 million threshold, bypassing per-product SEC reviews. The SEC will accept comments.
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Nasdaq ISE filed a rule change with the Securities and Exchange Commission on July 28 that would let the exchange list options on crypto-backed ETFs using standardized criteria, without a separate SEC approval for each product. The proposal, tagged SR-ISE-2026-42, covers options on commodity-based trust shares that hold digital commodities. A qualifying trust must show at least $700 million in average daily global market value for each digital commodity it holds.
A surveillance test also applies. Options tied to the trust's holdings must trade on a market surveilled by an Intermarket Surveillance Group member covering at least 85% of the trust's net asset value. The remaining 15% can sit in assets without full surveillance coverage, provided that slice stays a minority of the portfolio.
That split lets a multi-asset product hold a dominant position in Bitcoin and Ethereum, which trade on well-surveilled venues, while leaving a smaller slice for an asset with thinner coverage such as Solana. The filing references products containing Bitcoin or Ethereum, with Solana named as one possible addition.
The exchange previously removed the 25,000-contract position limit on Bitcoin and Ethereum ETF options in January, a change that let institutional accounts build larger positions.
The filing arrives during the CLARITY Act impasse. The Digital Asset Market Clarity Act was written to divide jurisdiction over digital assets between the SEC and the Commodity Futures Trading Commission. Updated legislative text has circulated; the Senate has not reached a resolution. As of late July, the bill remained in negotiations.
Approval would shorten the listing path. Nasdaq ISE said the current per-product process creates a bottleneck that does not exist for gold or oil ETF options. Each crypto ETF now goes through its own filing and SEC review, a process that can stretch for months.
The $700 million threshold gives sponsors a clear target. An issuer that reaches the bar for every commodity in its trust can avoid the bespoke approval route.
The 15% carve-out leaves part of a trust's portfolio in markets with weaker surveillance. The SEC will accept public comment on the filing before acting.
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