SEC Expands Portfolio Flexibility for Bitcoin-Heavy Trusts
The US Securities and Exchange Commission (SEC) has approved a new rule that gives Bitcoin-heavy trusts more flexibility in their investment portfolios. The Nasdaq Texas rule allows qualifying Commodity-Based Trust Shares to hold up to 15% of their net asset value in digital commodities or securities that don't meet the existing listing rules.
Under the rule, at least 85% of a trust's net asset value must be invested in cash, cash equivalents, or commodities, commodity-based assets, and securities that meet the eligibility tests. The remaining 15% can include specified digital commodities or securities that don't meet those tests.
This new rule is expected to benefit fund sponsors by providing a faster listing process for their products. A product that meets the generic standards can begin trading without going through a separate SEC approval process, making it easier for investors to access these investment opportunities.