BroadChain has learned that on April 2, the U.S. Securities and Exchange Commission (SEC) approved an application from NYSE American to list options on multi-cryptocurrency commodity trusts.
Previously, the exchange only allowed options on single-cryptocurrency trusts. This approval will enable it to expand its offerings to include trusts holding multiple cryptocurrencies.
The listing requirements stipulate that each cryptocurrency held by a trust must meet high liquidity standards individually. Specifically, each must have maintained an average daily market value of at least $700 million over the preceding 12 months. Furthermore, derivatives contracts for each cryptocurrency must be covered by a comprehensive surveillance-sharing agreement with the trading platform.
Additionally, the trust's shares must meet the exchange's initial and continued listing standards for ETF options and must qualify as NMS stocks.