The Nasdaq Wants to Simplify the Launch of Options on Crypto ETFs

The crypto derivatives market could cross a new regulatory milestone. Nasdaq has submitted to the Securities and Exchange Commission a proposal aimed at simplifying the listing of options linked to crypto ETFs. The text mainly seeks to set common criteria for funds exposed to digital commodities. This approach comes as U.S. regulations remain in flux. This approach comes as U.S. regulations remain in full development.

Nasdaq Proposes a Common Framework for Options

The proposal submitted by Nasdaq to the Securities and Exchange Commission (SEC) bears the number SR-ISE-2026-42. It aims to amend the rules applicable to options on certain investment funds linked to digital commodities.

The text notably provides that at least 85% of a fund’s net asset value rests on assets underlying derivative contracts. These contracts must be traded on markets with comprehensive surveillance and data-sharing agreements. The Intermarket Surveillance Group can also meet this condition.

In parallel, Nasdaq anticipates a 15% tolerance margin for certain assets. This part of the fund could include digital commodities that do not meet derivative market requirements.

However, this flexibility does not remove the liquidity criteria applicable to each underlying asset. Each relevant digital commodity must display an average daily global market value of at least 700 million dollars over twelve months. The mechanism thus seeks to define a common foundation for eligible products.

Nasdaq Wants to Reduce Separate SEC Procedures

Nasdaq’s project also modifies the terminology used for digital products. The term “crypto-asset” would give way to “digital commodity.” This definition is consistent with the logic of rule 5711(d), which connects the value of a digital asset to how a cryptographic system works and to supply and demand dynamics. The text also sets specific conditions for investment funds that can access this regime.

Above all, Nasdaq seeks to reduce the need to obtain separate SEC approval for each product meeting the established criteria. The goal is thus to further standardize the options listing procedure.

This approach could concern multiple digital assets, but only when they meet the provided requirements. The framework also maintains the possibility to include up to 15% of assets not meeting derivative market conditions.

An Uncertain Regulatory Context Still for ETFs

This initiative comes as the American framework remains under construction. The CLARITY Act remains blocked in the Senate, while the SEC is considering a regulatory program dedicated to cryptocurrencies. This situation maintains a waiting period for market participants.

It also gives more weight to precise rules defining products, the relevant assets, and access conditions to derivative markets. The project seeks to reduce uncertainty. According to the provided information, this program could define specific rules for certain cryptocurrency investment contracts.

Institutional interest in Bitcoin remains present in the mentioned data as well. Robert Mitchnick, from BlackRock, considers the decoupling of Bitcoin from stocks a positive signal.

He also sees its resilience during the July pullback, triggered by artificial intelligence, as a favorable element for its diversification and potential hedge role. ETF flows also illustrate this dynamic: over 24 hours, the BlackRock Bitcoin ETF received purchases large enough to offset the cumulative sales of several other major funds.

The project must now follow its regulatory process with the SEC. Its evolution will determine if the proposed criteria become a new benchmark for options linked to crypto ETFs. In the short term, the issue concerns the framework’s ability to harmonize listing conditions while maintaining the expected liquidity and surveillance requirements.