Hashdex Seeks SEC Approval to Add Litecoin to Nasdaq Crypto Index US ETF

Hashdex, a prominent asset management firm, has submitted an amendment to the U.S. Securities and Exchange Commission (SEC) to include Litecoin (LTC) in its Nasdaq Crypto Index US ETF. This move aims to expand institutional investment opportunities and offer broader exposure to altcoins beyond Bitcoin and Ethereum. The Litecoin Foundation highlighted the significance of this filing, noting its importance to the LTC community. The ETF in question tracks the Nasdaq Crypto Settlement Price Index (NCIS), which was previously known as the Nasdaq Crypto US Settlement Price Index (NCIUSS) before a rebranding.

Litecoin, launched in 2011 by Charlie Lee, has established itself as a cryptocurrency known for faster transactions and lower fees compared to Bitcoin. Institutional interest in Litecoin has been growing, with investors recognizing its strong network security, liquidity, and use as a store of value. The inclusion of Litecoin in Hashdex’s ETF underscores the increasing confidence in the project and makes Litecoin more accessible to traditional investors who prefer the regulated environment of financial products over the complexities of direct cryptocurrency ownership.

The Nasdaq Crypto Index US ETF is designed to provide diversified exposure to the cryptocurrency market by tracking a basket of digital assets through the Nasdaq Crypto Settlement Price Index. Its Net Asset Value (NAV) is calculated daily, reflecting the total market value of its assets. Hashdex currently charges a 0.50% annual management fee for the ETF, with a temporary reduction to 0.25% per annum in effect until December 31, 2025. The trust also covers operational costs such as brokerage fees, exchange fees, and custody services, while Hashdex handles regulatory and administrative expenses.

With Litecoin added to the index, the ETF could attract more investors looking for broader crypto exposure. This move highlights the growing acceptance of altcoins in mainstream financial products. Besides Hashdex’s ETF, other asset managers are also seeking spot ETFs around Litecoin, reflecting the increasing institutional interest in the cryptocurrency. The addition of Litecoin to the ETF represents a significant step in the evolution of crypto investment products, offering investors a more diversified and regulated way to gain exposure to the cryptocurrency market.