SEC reviewing NYSE Arca's proposed rule framework for crypto ETF composition:

Core requirements:

• Minimum 85% allocation to SEC-approved crypto assets

• Approved list currently includes BTC, ETH, SOL, XRP

• High-risk/non-approved assets restricted to 15% max portfolio weight

• Exception clause: Non-approved tokens allowed if 95% of NAV remains compliant with approved asset standards

This creates a tiered asset classification system that could standardize institutional crypto exposure while maintaining regulatory oversight on portfolio risk profiles. The 95% NAV threshold is particularly interesting as it provides flexibility for experimental allocations without compromising the fund's compliance status.

Expect this to influence how future crypto index products are structured and which tokens get prioritized for institutional adoption.