The US Securities and Exchange Commission (SEC) is ushering in a new era of regulation for cryptocurrency exchange-traded funds (ETFs). The Commission has begun soliciting public feedback on a rule change proposal from NYSE Arca that could significantly reshape the asset structure required for crypto ETFs.
New 85 percent asset threshold for ETFs
Under NYSE Arca’s proposed regulation, at least 85 percent of a crypto fund’s total value must consist of pre-approved and clearly defined assets. These assets are required to already meet the exchange’s listing and oversight standards. The remaining 15 percent would be allowed to include a variety of other asset classes under specific conditions, potentially making it easier for investors to access diversified crypto holdings through a single product.
There is also a shift in the calculation method for derivative products. The exchange intends to assess positions in derivatives based on their total gross notional amount, instead of their net value. This move aims to improve market transparency by more clearly tracking derivative risks.
Narrowed scope for eligible crypto assets
The new proposal further clarifies which crypto assets will be permitted inside ETF products. Specifically, digital assets with “collectible value” or those that are non-fungible—such as NFTs—are now explicitly excluded from eligibility. Issuers looking to include such assets will need to seek special approval for each product individually.
With the NYSE Arca proposal, it was emphasized to market participants that “the range of assets eligible in funds containing multiple approved cryptocurrencies is now clearly defined, but any product that wants to add collectibles or NFTs will require an additional approval process.”
Impact of new regulations on the market
This fresh approach to crypto ETFs reflects the SEC’s drive towards a more structured and predictable regulatory environment, especially after Paul Atkins assumed the Commission’s chair in 2025. By introducing updated guidelines on digital asset classifications and “safe harbor” principles, the SEC is helping bring greater clarity and stability to the rapidly evolving crypto sector. Increased coordination with the Commodity Futures Trading Commission is also contributing to a more harmonized legal landscape.
According to industry experts, the framework now provides clear direction for institutional investors seeking to develop new products. The heightened transparency expectations among crypto stakeholders are likewise being addressed through these regulatory advances.
Solana continues to face downward pressure
Amid these regulatory shifts, the recent price action of Solana (SOL) has also made headlines. The coin fell to $84.80 last week following daily and weekly declines, according to data from CryptoAppsy, and is currently trading around this level.
Crypto analyst Umair Crypto has noted that pressure on SOL persists. After losing its key support at $86.03, the token faces increased downside risks. The inability to break resistance at the $89 to $91 range has kept the near-term outlook negative.
Analysts believe that $83.30 and $81.75 are crucial support levels for SOL in the short run. Should these levels be breached, the price may retreat further to $74.50. However, a dramatic drop of 60 percent is not anticipated under current conditions.
Overall, Solana’s trend is characterized more by distribution than accumulation, signaling sustained selling pressure. Unless SOL can quickly reclaim the $86 threshold, the downward trend is expected to continue in the short term.
