Hashdex Expands Crypto ETF with 7 New Assets

Hashdex, a leading asset management firm in the cryptocurrency sector, has filed an amendment with the U.S. Securities and Exchange Commission (SEC) to expand its Nasdaq Crypto Index US ETF. The proposed additions include several prominent cryptocurrencies such as XRP, ADA, SOL, LINK, AVAX, LTC, and UNI. This move follows the successful launch of the ETF, which began trading under the ticker NCIQ on February 13 after receiving SEC approval. The fund is notable for being the first dual Bitcoin-Ethereum ETF in the U.S.

The ETF currently holds approximately 88% of Bitcoin and 12% of Ethereum, with roughly $70 million in total net assets. The management fee for the ETF is set at 0.25% annually through December 31, 2025, after which it will increase to 0.5%. Coinbase Custody and BitGo Trust serve as the crypto asset custodians for the fund.

Hashdex's decision to include these new cryptocurrencies is part of a strategic effort to diversify its investment portfolio. By adding a broader range of digital assets, the firm aims to provide investors with more comprehensive exposure to the cryptocurrency market. This diversification can help mitigate risks associated with the volatility of individual cryptocurrencies and offer a more balanced investment opportunity.

The inclusion of XRP, ADA, and SOL is particularly significant. XRP, developed by Ripple, is known for its fast transaction speeds and low costs, making it a popular choice for cross-border payments. ADA, the native cryptocurrency of the Cardano blockchain, is recognized for its focus on sustainability and scalability. SOL, or Solana, is another high-performance blockchain that has gained traction for its ability to handle a large number of transactions per second.

Hashdex's proactive approach to expanding its ETF's holdings demonstrates its commitment to staying at the forefront of the rapidly evolving cryptocurrency landscape. The firm's success with the Litecoin inclusion suggests that investors are receptive to a diversified crypto ETF, and the addition of these new coins could further enhance the ETF's appeal.

The filing with the SEC is a crucial step in the process, as it requires regulatory approval before the changes can be implemented. The SEC's review will focus on ensuring that the new additions meet the necessary criteria for inclusion in an ETF, including compliance with securities laws and regulations. If approved, the expanded ETF could offer investors a more robust and diversified investment option in the cryptocurrency market.