Crypto ETF Update: Hashdex Index ETF Approved by SEC to Include XRP, SOL

In the latest crypto ETF update, the U.S. SEC has approved the expansion of Hashdex’s Nasdaq Crypto Index ETF. The product, which previously tracked only Bitcoin and Ethereum, will now include a wider basket of tokens such as XRP and SOL.

SEC Greenlights Hashdex’s Expansion of Its Crypto ETF Holdings

The US SEC has given a go-ahead to Hashdex’s plans to expand its crypto ETF portfolio. The approval allows the asset manager to align its U.S.-listed ETF products with the full composition of the Nasdaq Crypto Index. 

Under the updated rules, the fund can expand beyond the top two cryptocurrencies to hold additional assets. XRP would comprise about 6.9% of the index, and SOL would account for 4.3%. Bitcoin and Ethereum remain the dominant cryptocurrencies, accounting for 72.5% and 14.8%, respectively, while Cardano accounts for 1.2%.

The decision comes under the SEC’s new generic listing standards for commodity-based trust shares. These standards streamline the process for exchange-traded products tied to digital assets across various platforms, including Nasdaq.

Previously, each new crypto ETF required a lengthy case-by-case review, often taking up to 270 days. The fresh framework reduces that timeline to as little as 75 days, opening the door for quicker product launches. 

This week’s approval of Hashdex’s ETF comes alongside other updates. Earlier in the week,  the commission approved Grayscale’s Ethereum ETF, after NYSE Arca filed to shift the firm’s Ethereum products under the same generic listing rule. 

The inclusion of XRP and SOL in Hashdex’s ETF could bring in more institutional participation for both assets.  The altcoins, which have long been seen as essential but often overshadowed by Bitcoin and Ethereum, are now gaining traction.

Asset Managers Move Fast on SEC’s New Crypto Rules

Thanks to the new crypto ETF listing rules, Asset managers across the industry are accelerating filings. Just yesterday, Amplify ETFs filed for the SOL and XRP Monthly Income ETF. The product aims to generate both high income and capital appreciation by combining exposure to the price returns of SOL and XRP. 

The SEC has recently made it clear that it intends to establish a more robust framework for crypto products. For instance, the regulator introduced innovation exemption rules, which could allow crypto firms to bring products to market immediately while longer-term rules are developed.

Additionally, a joint statement from the SEC and CFTC confirmed that specific spot crypto products can be listed on registered U.S. trading platforms. The announcement reassures exchanges and investors that leveraged and margined spot products are not prohibited.

The commission’s Chair, Paul Atkins, has continued to share that the regulator’s goal is to provide certainty for the industry. This would, in turn, help position the U.S. as a global leader in digital finance.