Hashdex Seeks SEC Approval to Expand Crypto Index ETF

ETF Expansion Could Include XRP, SOL, ADA, and More

Hashdex has filed an amendment with the U.S. Securities and Exchange Commission (SEC) to broaden the scope of its Nasdaq Crypto Index US ETF (NCIQ). The firm aims to add several new assets, including XRP, Solana (SOL), Cardano (ADA), Chainlink (LINK), Avalanche (AVAX), Litecoin (LTC), and Uniswap (UNI). The move follows the ETF’s official launch on February 13 after securing regulatory approval last December.

The fund, the first in the U.S. to offer exposure to both Bitcoin and Ethereum, currently holds approximately 88% Bitcoin and 12% Ethereum, with total net assets of roughly $70 million. Coinbase Custody and BitGo Trust serve as custodians, ensuring secure storage of the ETF’s crypto assets. Investors benefit from a 0.25% annual management fee through the end of 2025, after which it will rise to 0.5%.

Eligibility for inclusion in the index is determined by strict criteria. Hashdex requires that assets trade on at least two major crypto platforms, have custodial support, maintain minimum trading volumes, and be listed on a U.S.-regulated trading or derivatives platform. 

A previous assessment of the top 15 crypto assets by market capitalization as of October 23, 2024, found that only Bitcoin, Ethereum, Avalanche, Chainlink, and Litecoin met all five “NCI Criteria” at the time. However, Hashdex’s latest proposal suggests a broader selection of digital assets could soon qualify.

The filing comes shortly after Hashdex gained approval from Brazil’s securities regulator to launch the world’s first spot XRP ETF, the Hashdex NASDAQ XRP Index Fund. The firm’s expansion efforts indicate a strategic push to diversify its ETF offerings and strengthen its position in the evolving cryptocurrency investment landscape.

This article has been refined and enhanced by ChatGPT.