SEC's Framework Clears Path for Altcoin ETFs, Marking Crypto's Mainstream Shift

The U.S. Securities and Exchange Commission (SEC) has approved an expansion of the Hashdex Nasdaq Crypto Index US ETF (NASDAQ: NCIQ), allowing the fund to include XRP, Solana (SOL), and Stellar (XLM) alongside Bitcoin (BTC) and Ethereum (ETH) under newly adopted generic listing standards. Finalized on September 24, 2025, the approval marks a pivotal shift in regulated exposure to digital assets, with XRP allocated 6.9–7.1%, SOL at 4.1–4.3%, and XLM at 0.33–0.35%. Bitcoin and Ethereum remain dominant, holding 72.5–72.7% and 14.8–14.9%, respectivelytitle1^[1]title2^[2]title3^[3]. The updated trust structure, filed under Form 8-K, aligns with Nasdaq’s revised requirements, streamlining the ETF’s compliance with the SEC’s new frameworktitle4^[4].

The SEC’s generic listing standards, introduced on September 17, 2025, reduce approval timelines for commodity-based ETFs from 270 to 75 days, bypassing case-by-case reviews for eligible products. To qualify, assets must either trade on regulated exchanges, have CFTC-regulated futures active for six months, or be held by another ETF with at least 40% direct allocationtitle5^[5]. Hashdex’s revised ETF, now designated an “emerging growth company,” leverages these standards to expand its holdings, reflecting growing institutional demand for diversified crypto exposuretitle11^[6]. Analysts project up to 30 new crypto ETFs in the near term, with SOL and XRP-focused products potentially launching as early as October 2025title12^[7].

The inclusion of XRP, SOL, and XLM in a U.S.-listed ETF is a significant milestone for altcoins, which have historically faced regulatory hurdles. XRP’s addition follows the recent approval of the REX-Osprey XRP ETF and signals increasing legitimacy for non-BTC/ETH assets. Steven McClurg of Canary Capital Group noted that asset managers are accelerating filings, with “a dozen” applications already submitted to the SECtitle2^[8]. Jonathan Groth of DGIM Law anticipates a “boom time” for crypto ETFs in Q4 2025, while Bitwise President Teddy Fusaro highlighted that most applications are nearing the end of their review phasestitle4^[9].

Market participants have welcomed the approval as a step toward mainstream adoption. Nate Geraci of NovaDius Wealth Management emphasized the ETF’s role in broadening crypto exposure, stating it “finally brings altcoins like XRP, Solana, and Stellar into the ETF space”title1^[10]. Institutional investors, including pension funds and banks, may now access these assets through regulated vehicles, potentially driving liquidity and price stability. However, Kyle DaCruz of VanEck cautioned that not all existing filings qualify under the new rules, necessitating further legal reviews to determine viable productstitle2^[11].

The SEC’s decision aligns with broader regulatory efforts to integrate digital assets into traditional finance. Paul Atkins, the SEC’s chair, has emphasized the agency’s goal to position the U.S. as a global leader in digital finance by providing regulatory clarity. Grayscale Investments, for instance, swiftly converted its private fund into a public ETF (GDLC.P) within 48 hours of the SEC’s announcement, signaling confidence in the new frameworktitle2^[12]. Analysts suggest the approval could catalyze a wave of multi-coin ETFs, with Amplify ETFs already filing for a SOL and XRP Monthly Income ETF to generate both income and capital appreciationtitle5^[13].