The SEC has opened a public comment period on an NYSE Arca proposal that would require commodity-based crypto trust ETFs to hold at least 85% of assets in instruments that already meet existing listing standards. The rule is designed to impose a compositional floor on crypto ETF structures, constraining how much exposure can sit in less-regulated or novel digital assets.
For Armada, the practical implication is indirect but important: assets that qualify under the 85% threshold will receive a regulatory imprimatur that strengthens their case as acceptable repo collateral, while excluded assets face headwinds. If BTC and ETH qualify but SOL or HYPE do not, that distinction should inform haircut and eligibility tiers on the crypto-repo desk. Armada should submit or monitor comments before the deadline.