SEC Advances 85% Rule Review Poised to Reshape Bitcoin ETF Landscape

The SEC is reviewing NYSE Arca's proposal requiring commodity trusts, including Bitcoin ETFs, to hold at least 85% of net asset value in qualifying assets like Bitcoin, Ether, Solana, and XRP, with derivatives counted by gross notional value. Opened on April 27, 2026, the 21-45 day comment period highlights examples where 95% qualifying exposure passes but 71% fails, mandating daily monitoring and breach notifications. Evolving coverage details tighter surveillance, potentially delaying hybrid ETFs and pushing sponsors toward simpler Bitcoin structures amid market uncertainty.