MEMX Proposes Options Listing Standards for Multi-Crypto Asset Trusts

MEMX filed a proposed rule change with the SEC to establish listing criteria and withdrawal standards for options on commodity-based trusts that hold multiple crypto assets. The SEC published the notice on June 4 and is soliciting comments on the proposal.

The filing would amend MEMX Rules 19.3 and 19.4. MEMX already has criteria for options on fund shares tied to a commodity-based trust holding a single crypto asset. The new proposal would extend that framework to trusts holding multiple crypto assets, provided each underlying asset meets specified market-value and surveillance-sharing requirements.

Under the proposal, each crypto asset held by the trust would need an average daily market value of at least $700 million over the previous 12 months. Each asset would also need to underlie a derivatives contract that trades on a market with which MEMX has a comprehensive surveillance-sharing agreement, directly or through Intermarket Surveillance Group membership.

The filing also describes continued-listing checks, standard ETF options trading mechanics, position and exercise limits, margin treatment, trading halt procedures and OPRA market-data capacity. MEMX says options on qualifying commodity-based trusts would trade in the same manner as options on other ETFs.

Why it matters

Crypto ETF options are moving beyond single-asset products. If approved, the proposal could help create listed options markets around basket-style crypto trusts, giving traders more ways to hedge or express views on diversified crypto exposure.

What to watch next

Watch the SEC comment file, whether the proposal is approved or modified, and whether other options exchanges file substantively similar standards for multi-asset crypto trust options.