SEC approves crypto commodity designations and Bitcoin ETF options

The U.S. Securities and Exchange Commission (SEC) has approved rule changes and amendments that expand the regulatory framework for cryptocurrency-related investment products.

Under SEC Order No. 34-106268, Nasdaq has received approval to modify rules regarding investment products. This change designates Bitcoin, Ethereum, Solana, and XRP as digital commodities that meet the exchange’s eligibility requirements. The updated framework introduces an official definition of “digital commodity” within Nasdaq Texas rules and allows for certain active management techniques. Fund managers may now have greater flexibility, including the ability to include assets that do not meet all requirements at the time of listing, provided they do not exceed 15% of a fund’s net asset value.

In a separate development, the SEC approved a rule amendment for the Cboe Options Exchange that allows for listed options on the WisdomTree Bitcoin Fund (BTCW). This approval provides institutional traders with regulated derivatives tools, such as hedging and volatility positioning, specifically tied to the existing spot Bitcoin ETF. While this does not constitute a new approval for spot Bitcoin ETFs themselves, it expands the toolkit available for managing exposure to Bitcoin-linked products through traditional brokerage infrastructure.