Cboe EDGX Exchange now has a path to list options on multi-crypto funds. The SEC published Release No. 34-106692 on October 19, 2026. EDGX filed the rule change on October 6 under the non-controversial track. As a result, the change became operative on filing. The SEC waived its usual 30-day delay and found that the proposal raised no novel legal or regulatory issues. However, the notice is not an approval order, and it names no specific fund. Instead, it amends EDGX Rules 19.3 and 19.4. As a result, the exchange can list qualifying options without a separate SEC review for each product.
⚖️ NEW: The SEC expands options trading eligibility for multi-cryptocurrency investment products. The move extends regulated crypto derivatives access within a U.S. options market handling over $3 trillion in daily underlying notional exposure, according to Cboe. https://t.co/gS32kFBcuU
— Generation Infinity (@Genfinity) October 19, 2026
The Two-Part Test Every Asset Must Pass
The rule sets a two-part test for each crypto asset inside a fund. First, the asset needs an average daily market value of at least $700 million. That figure covers the previous 12 months. The exchange measures that value by multiplying total global supply by the token price. Second, the asset must underlie a derivatives contract on a market that shares surveillance data with EDGX. That link can run directly or through the Intermarket Surveillance Group. Importantly, the test applies to every asset the trust holds, not to the basket as a whole. Consequently, a fund that mixes large tokens with a smaller one would fail until it drops the weaker name.
A Rulebook Cboe Already Cleared Elsewhere
EDGX did not draft these standards from scratch. Its filing calls them substantively identical to rules the SEC approved for Cboe Options on April 8, 2026. That order drew no public comments. Additionally, the SEC noted that it had recently approved similar standards for Nasdaq ISE, NYSE American, and NYSE Arca. Meanwhile, Cboe BZX followed with its own matching filing in mid-October, according to Crypto Times. EDGX already listed options on trusts holding a single crypto asset under the same rule. Therefore, the new language extends an existing framework to baskets instead of opening a new category.
Why Liquidity and Surveillance Carry the Safeguards
The SEC’s April order explains the logic behind both requirements. The liquidity floor helps ensure that each fund’s creation and redemption process works without disruption. It also keeps fund shares available to market makers who hedge their option positions. Meanwhile, the surveillance requirement gives the exchange a way to investigate suspected manipulation. Cboe told the SEC that it had found no issues with options on comparable single-asset funds. The SEC agreed that the rules fit the Exchange Act’s standards for preventing manipulative practices. In its words, the options give investors another vehicle for gaining and hedging exposure to the underlying shares.
Options on Any Qualifying ETF, Not Only Crypto
The filing also reaches beyond digital assets. EDGX updated Rule 19.3(i)(1) to allow options on exchange-traded funds defined in SEC Rule 6c-11. That rule, which the SEC adopted in 2019, requires ETFs to disclose their portfolio holdings daily. Notably, the SEC has long treated that transparency as a core defense against price manipulation. EDGX argues that the same transparency protects the options layered on top, since manipulation usually targets the underlying shares. Cboe Options made the same change in a filing from August 2025. As a result, EDGX now matches its affiliate on both the crypto and the general ETF pathways.
Continued Listing Checks and Open Questions
Eligibility does not end at launch. EDGX will review the $700 million test monthly and can suspend new opening transactions if any asset falls short. The same power applies if an asset loses its qualifying derivatives market. Cboe’s own example shows the cushion built into the test. A token worth $900 million could lose up to 88% of that value and still pass. The drop would need to come late in the month. Meanwhile, the SEC keeps the power to temporarily suspend the rule change within 60 days of filing. Finally, the filing names no funds and sets no launch dates. The underlying fund must first list on a national exchange.
*Disclaimer: News content provided by Genfinity is intended solely for informational purposes. While we strive to deliver accurate and up-to-date information, we do not offer financial or legal advice of any kind. Readers are encouraged to conduct their own research and consult with qualified professionals before making any financial or legal decisions. Genfinity disclaims any responsibility for actions taken based on the information presented in our articles. Our commitment is to share knowledge, foster discussion, and contribute to a better understanding of the topics covered in our articles. We advise our readers to exercise caution and diligence when seeking information or making decisions based on the content we provide.
