SEC Expands Digital Asset Holdings for Commodity-Linked Trusts

The US Securities and Exchange Commission (SEC) has approved a new rule that allows certain commodity-linked trusts to hold up to 15% of their net asset value in digital assets, such as Bitcoin. This flexibility is part of the Nasdaq Texas rule, which was approved on September 3.

Under this rule, a qualifying Commodity-Based Trust Share must keep at least 85% of its net asset value in cash, cash equivalents, or commodities and securities that meet specific eligibility tests. The remaining 15% can include specified digital commodities or securities that do not meet those tests.

This means that trusts with a heavy focus on Bitcoin could potentially allocate up to 15% of their portfolio to other digital assets or certain derivatives without losing access to the exchange's streamlined listing process.