Key Takeaways
- • Cboe EDGX Exchange can now list options on multi-crypto ETFs after the SEC published Release No. 34-106692 on October 19, 2026, amending EDGX Rules 19.3 and 19.4 without a fund-specific approval order.
- • Each crypto asset inside a fund must show an average daily market value of at least $700 million over the prior 12 months and must underlie a derivatives contract on a market sharing surveillance data with EDGX, with the test applied to every asset rather than the basket.
- • The rule was filed October 6 under the non-controversial track, became operative on filing, and is substantively identical to standards the SEC approved for Cboe Options on April 8, 2026.
- • EDGX reviews the liquidity test monthly and can suspend new opening transactions if an asset fails, while the SEC retains power to temporarily suspend the rule within 60 days of filing.
- • The filing names no funds and sets no launch dates; the underlying fund must first list on a national exchange.
Summary
The U.S. Securities and Exchange Commission published Release No. 34-106692 on October 19, 2026, giving Cboe EDGX Exchange a path to list options on multi-crypto funds. EDGX filed the rule change on October 6 under the non-controversial track, so it became operative on filing. The SEC waived its usual 30-day delay and found the proposal raised no novel legal or regulatory issues. The notice is not an approval order and names no specific fund, meaning the exchange can list qualifying options without a separate SEC review for each product, according to the primary source.
The rule sets a two-part eligibility test for each crypto asset held by a fund. First, the asset must have an average daily market value of at least $700 million over the previous 12 months, measured by multiplying total global supply by token price. Second, the asset must underlie a derivatives contract on a market that shares surveillance data with EDGX, either directly or through the Intermarket Surveillance Group. The test applies to every asset a trust holds rather than to the basket as a whole, so a fund mixing large tokens with a smaller one would fail until the weaker name was removed.
EDGX described its standards as substantively identical to rules the SEC approved for Cboe Options on April 8, 2026, an order that drew no public comments. The SEC noted it had recently approved similar standards for Nasdaq ISE, NYSE American, and NYSE Arca. Cboe BZX followed with a matching filing in mid-October, according to Crypto Times. EDGX already lists options on trusts holding a single crypto asset under the same rule, so the new language extends an existing framework to baskets.
The SEC's April order explained the rationale for both requirements. The liquidity floor supports smooth creation and redemption and keeps fund shares available to market makers hedging option positions, while surveillance access lets the exchange investigate suspected manipulation. Cboe told the SEC it had found no issues with options on comparable single-asset funds, and the SEC concluded the rules fit the Exchange Act's standards for preventing manipulative practices.
The filing also extends beyond digital assets. EDGX updated Rule 19.3(i)(1) to permit options on exchange-traded funds defined under SEC Rule 6c-11, adopted in 2019, which requires daily disclosure of portfolio holdings. EDGX argues that this transparency protects options layered on top of the funds, since manipulation typically targets underlying shares. Cboe Options made the same change in an August 2025 filing, so EDGX now matches its affiliate on both crypto and general ETF pathways.
Eligibility is not a one-time check. EDGX will review the $700 million test monthly and may suspend new opening transactions if any asset falls short or loses its qualifying derivatives market. Cboe's example illustrates the cushion: a token worth $900 million could lose up to 88% of its value and still pass, provided the decline occurs late in the month. The SEC retains authority to temporarily suspend the rule change within 60 days of filing. The filing names no funds and sets no launch dates, and any underlying fund must first list on a national exchange.
The rule sets a two-part eligibility test for each crypto asset held by a fund. First, the asset must have an average daily market value of at least $700 million over the previous 12 months, measured by multiplying total global supply by token price. Second, the asset must underlie a derivatives contract on a market that shares surveillance data with EDGX, either directly or through the Intermarket Surveillance Group. The test applies to every asset a trust holds rather than to the basket as a whole, so a fund mixing large tokens with a smaller one would fail until the weaker name was removed.
EDGX described its standards as substantively identical to rules the SEC approved for Cboe Options on April 8, 2026, an order that drew no public comments. The SEC noted it had recently approved similar standards for Nasdaq ISE, NYSE American, and NYSE Arca. Cboe BZX followed with a matching filing in mid-October, according to Crypto Times. EDGX already lists options on trusts holding a single crypto asset under the same rule, so the new language extends an existing framework to baskets.
The SEC's April order explained the rationale for both requirements. The liquidity floor supports smooth creation and redemption and keeps fund shares available to market makers hedging option positions, while surveillance access lets the exchange investigate suspected manipulation. Cboe told the SEC it had found no issues with options on comparable single-asset funds, and the SEC concluded the rules fit the Exchange Act's standards for preventing manipulative practices.
The filing also extends beyond digital assets. EDGX updated Rule 19.3(i)(1) to permit options on exchange-traded funds defined under SEC Rule 6c-11, adopted in 2019, which requires daily disclosure of portfolio holdings. EDGX argues that this transparency protects options layered on top of the funds, since manipulation typically targets underlying shares. Cboe Options made the same change in an August 2025 filing, so EDGX now matches its affiliate on both crypto and general ETF pathways.
Eligibility is not a one-time check. EDGX will review the $700 million test monthly and may suspend new opening transactions if any asset falls short or loses its qualifying derivatives market. Cboe's example illustrates the cushion: a token worth $900 million could lose up to 88% of its value and still pass, provided the decline occurs late in the month. The SEC retains authority to temporarily suspend the rule change within 60 days of filing. The filing names no funds and sets no launch dates, and any underlying fund must first list on a national exchange.
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