Nasdaq ISE proposes broader options-listing criteria for digital-commodity trusts

What changed

Nasdaq ISE proposed aligning its options-listing criteria with Nasdaq's revised standards for Commodity-Based Trust Shares. The proposal would use the narrower term 'digital commodity,' maintain a $700 million average daily market-value test for each commodity, and allow up to 15% of trust NAV to consist of digital commodities that do not underlie derivatives traded on a market covered by the specified surveillance-sharing arrangement. The SEC has not approved the proposal.

Who it affects

• Broker-dealers and options market participants
• Investment advisers evaluating options on digital-commodity trusts
• Funds and managed accounts using digital-asset ETP options for exposure or hedging
• Sponsors of Commodity-Based Trust Shares

What is still open

• Whether the SEC will approve, disapprove, or institute proceedings on SR-ISE-2026-42
• Which additional Commodity-Based Trust options would become eligible if the proposal is approved
• How advisers and intermediaries will assess liquidity and surveillance risks attributable to the permitted 15% portfolio component

What it means for an advisor

• Update product-review templates to distinguish the proposed ISE options criteria from the listing standards for the underlying trust shares
• Assess liquidity, concentration, surveillance, valuation, and options-risk disclosures for any newly eligible products
• Do not represent expanded product eligibility as approved while the SRO filing remains pending