The SEC opened public comments on a new NYSE Arca rule that could change how crypto ETFs get listed. The “85% rule” requires any commodity-based trust to hold at least 85% of its assets in qualifying tokens.
But the rule actually names XRP (CRYPTO: XRP) as a qualifying asset, which means spot XRP ETFs would clear the 85% threshold easily. The real risk is with leveraged XRP ETFs and products with heavy derivatives exposure. GraniteShares’ 3x XRP ETF, a leveraged product already delayed five times since early April, fits exactly the kind of structure the new rule could slow down.
What the SEC’s 85% Rule Actually Does to Crypto ETFs
NYSE Arca filed the proposal on April 22, and the SEC opened public comments on April 27. The amendment would do one thing—tighten what crypto ETFs can hold and still qualify for the SEC’s fast-track listing process.
Under the new rule, at least 85% of an ETF’s net asset value—the total value of what it holds—would have to consist of qualifying assets. The remaining 15% could hold non-qualifying tokens, derivatives, or smaller-cap holdings. Qualifying assets include any cryptocurrency with at least six months of regulated futures trading on U.S. markets. XRP qualifies, along with Bitcoin, Ethereum, and Solana.
Derivatives are where the rule would hit hardest. Under the proposal, options and futures positions would count at their full notional size, regardless of how much cash backs them. That would hit leveraged ETFs hardest—a 3x product with $100 in cash gets $300 in market exposure, and all $300 would count against the 85% threshold.
The SEC filing showed exactly how it plays out: a trust holding Bitcoin alongside over-the-counter options could see its qualifying portion drop to 71%—well below the 85% threshold.
Public comments on the NYSE Arca proposal run 21 to 45 days from filing. Nasdaq has filed a parallel rule with public comments due May 19. The SEC can then approve, reject, or open further proceedings—but the bigger question is what the new rule would do to the XRP ETFs already on the market.
Why Spot XRP ETFs Easily Clear the New 85% Rule
The five spot XRP ETFs already trading in the U.S. all hold one thing—XRP. Bitwise, Canary, Franklin Templeton, 21Shares, and Grayscale all hold pure XRP—no derivatives, no other tokens. That puts them at 100% qualifying—well above the 85% threshold the SEC is reviewing.
Together, the five funds hold $1.05 billion in net assets, with $1.29 billion in cumulative inflows since the first XRP ETF launched in November 2025. The new rule would do nothing to disturb them. If the SEC approves the 85% rule, the existing five spot ETFs would keep trading exactly as they do today.
Multi-asset crypto trusts that include XRP alongside Bitcoin, Ethereum, and Solana could see the biggest benefit from the rule. Under the proposal, these trusts would get a cleaner approval path that doesn’t require filing for each asset individually.
Grayscale’s Digital Large Cap Fund—which holds Bitcoin, Ethereum, XRP, Solana, and Avalanche—would clear the 85% rule easily, since four of its five assets qualify. Funds like it could list under generic standards instead of seeking separate approval for each crypto asset.
So the spot XRP ETFs already pulling in money would be unaffected, and trusts that include XRP would get a faster route to market. The funds at risk are the ones still waiting on the SEC.
Which XRP ETFs Could Be Delayed Under the 85% Rule?
GraniteShares is the clearest example of what could get caught. Its 3x Long and 3x Short XRP ETFs were supposed to launch on April 2, but the launch has been pushed back five times in three weeks, most recently to May 7. All eight leveraged funds in the filing got the same delay, suggesting the SEC’s issue is with the 3x structure across all four assets.
The SEC has been pushing back on 3x crypto ETFs for months. In December 2025, the regulator sent formal letters to ProShares and other issuers citing Rule 18f-4, which caps fund leverage at 200%. ProShares withdrew its entire 3x crypto lineup, including a 3x XRP product nearly identical to what GraniteShares is now trying to list.
The new 85% rule would reinforce that same concern. Under the proposal, derivative positions would be counted at full notional value, and a 3x leveraged product could drop below the 85% threshold quickly.
Teucrium’s 2x Long XRP ETF launched on NYSE Arca a year ago and now holds over $440 million in assets, showing that leveraged XRP products can work when they stay inside Rule 18f-4’s 200% cap. XRP’s annualized volatility from 2020 to 2025 hit 95.5%—the highest among the assets in the filing. That’s likely part of why the SEC has been more cautious on 3x XRP than on 3x Bitcoin or Ethereum products.
If the rule passes, 3x XRP ETFs would face the steepest path to launch, while 2x products and spot ETFs would keep moving forward. The next test is May 7, when GraniteShares either launches or delays for the sixth time.
What the 85% Rule Means for the XRP Price
The 85% rule is a net positive for XRP, even though the headlines read bearish. XRP has fallen 5% to $1.36 on the news, which is a misread of what the rule actually does.
Paul Atkins has been running an all-Republican SEC since January, and his agenda has been clear—standardized rules over case-by-case approvals. The 85% framework fits that pattern, making approval more likely.
Two dates will set the tone going forward: May 7, when GraniteShares either launches its 3x XRP ETFs or delays a sixth time, and May 19, when the Nasdaq parallel filing’s comment window closes. Both will show whether the SEC is moving toward approval or extending the review.
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