SEC Makes Cboe BZX Framework Operative for Multi-Crypto Options

The Securities and Exchange Commission has made operative a Cboe BZX Exchange rule change establishing a standing framework for evaluating options on commodity-based trusts that hold multiple crypto assets.

The rules require each asset in a qualifying trust to have an average daily market value of at least $700 million over the previous 12 months. The threshold applies separately to each asset rather than to the trust’s combined holdings.

Each underlying asset also must support a derivatives contract traded on a market covered by a comprehensive surveillance-sharing agreement with Cboe BZX Exchange. The requirement may be met directly or through common membership in the Intermarket Surveillance Group.

Cboe BZX filed the proposal Sept. 29 as a noncontroversial rule change under Rule 19b-4(f)(6). The SEC issued its notice Oct. 13 and waived the standard 30-day operative delay, allowing the amendment to take effect upon filing.

The amended rules also establish standards for options on exchange-traded funds that meet Rule 6c-11 requirements, including portfolio-transparency conditions. Several product-specific references were removed, aligning the framework with substantially similar standards previously approved for Cboe Options.

Monthly reviews will determine whether each asset continues to satisfy the market-value test, while loss of the required surveillance arrangement would also prompt Cboe BZX to consider halting new opening trades.

The change creates a standing framework under which qualifying multi-asset trusts and exchange-traded funds can be evaluated. It does not authorize a specific product, guarantee that options will be listed or set a trading date.

Public comments are due 21 days after the notice is published in the Federal Register.