SEC Gives Commodity-Linked Trusts 15% Window for Non-Qualifying Holdings

The US Securities and Exchange Commission (SEC) has approved a new rule for Nasdaq Texas that allows qualifying commodity-linked trusts to hold up to 15% of their net asset value in otherwise ineligible assets.

This means that Bitcoin-heavy trusts can now include other digital assets or certain derivatives in their portfolios without automatically losing access to the exchange's streamlined listing process.

The rule requires these trusts to keep at least 85% of their holdings in qualifying assets, such as cash, cash equivalents, commodities, commodity-based assets, and securities that meet the eligibility tests.

The remaining 15% can include specified digital commodities or securities that do not meet those tests. However, derivatives count towards this limit by gross notional exposure, so oversized positions can breach the 85% threshold and trigger Nasdaq notification.