SEC's Framework Enables Altcoin Inclusion in Major Crypto ETFs

Hashdex’s Nasdaq Crypto Index ETF has received U.S. Securities and Exchange Commission (SEC) approval to expand its holdings to include XRP (Ripple) and Solana (SOL), marking a significant step in the diversification of crypto exchange-traded products. The updated index now allocates 6.9% to XRP and 4.3% to SOL, alongside Bitcoin (72.5%), Ethereum (14.8%), and Cardano (1.2%). This expansion aligns with the SEC’s new generic listing framework for commodity-based trust shares, which streamlines the approval process for crypto ETFs, reducing timelines from 270 days to as little as 75 days. The decision follows a broader regulatory shift, including the recent approval of Grayscale’s Ethereum ETF and the SEC’s innovation exemption rules, which allow crypto products to launch while long-term regulations are developed.

The inclusion of XRP and SOL in Hashdex’s ETF comes as Solana’s price dips below $200, a level that has historically attracted institutional interest due to its lower valuation. The move is expected to enhance liquidity and institutional adoption for these altcoins, which have long been positioned as critical but underrepresented assets in the crypto market. ProShares, a key player in the crypto ETF space, recently launched leveraged products targeting Solana and XRP, further signaling growing demand for exposure to these tokens. The SEC’s streamlined framework has also prompted other asset managers, such as Amplify ETFs, to file new products, including a SOL and XRP Monthly Income ETF.

The regulatory environment for crypto ETFs has seen notable progress in 2025. The SEC’s joint statement with the Commodity Futures Trading Commission (CFTC) confirmed that specific spot crypto products can be listed on U.S. exchanges, providing clarity on the legality of leveraged and margined spot products. This development reinforces the U.S. government’s commitment to fostering a competitive digital asset market while ensuring investor protection. Meanwhile, the approval of Bitcoin and Ethereum ETFs in early 2025 has paved the way for broader acceptance of digital assets, with institutional investors increasingly viewing crypto as a legitimate asset class.

Market analysts suggest that the inclusion of XRP and SOL in major ETFs could catalyze further institutional participation. The SEC’s new rules have reduced barriers to entry, enabling asset managers to rapidly deploy products that cater to evolving investor demand. For example, Amplify ETFs’ recent filing for a high-income SOL and XRP ETF underscores the appetite for products that combine price exposure with yield generation. The broader trend reflects a maturing crypto market, where regulatory clarity and product innovation are driving mainstream adoption.

Critically, the expansion of Hashdex’s ETF aligns with the SEC’s strategic goal of positioning the U.S. as a global leader in digital finance. By accelerating the approval of crypto products, the agency aims to attract capital and talent to the domestic market, countering regulatory fragmentation in other jurisdictions. This approach has been supported by bipartisan legislative efforts, such as the “GENIUS Act,” which seeks to establish a stablecoin framework and further legitimize crypto as a cornerstone of financial innovation.

The market’s response to these developments has been mixed. While Bitcoin’s record high of $123,000 in June 2025 highlights the sector’s volatility, the inclusion of XRP and SOL in ETFs could stabilize demand for these altcoins by channeling institutional capital into diversified crypto portfolios. The SEC’s approval of Hashdex’s ETF also follows a broader trend of increased venture capital activity in crypto infrastructure, with Q1 2025 seeing $7.45 billion in funding, driven by mega-deals like Binance’s $2 billion raise. This capital influx has primarily targeted later-stage projects, reflecting investor confidence in established platforms over speculative assets.