Hashdex Seeks SEC Approval to Expand Crypto ETF with XRP, ADA

Hashdex, a Brazil-based asset manager specializing in digital assets, has submitted an application to the U.S. Securities and Exchange Commission (SEC) to expand its cryptocurrency index ETF by adding XRP and Cardano (ADA) to its portfolio. This move is driven by the growing market demand for diverse crypto investment options. The proposed additions also include Solana (SOL), Chainlink (LINK), Avalanche (AVAX), Litecoin (LTC), and Uniswap (UNI).

The inclusion of these new cryptocurrencies is subject to specific criteria, including accessibility on major exchanges such as Bitstamp, Coinbase, and Gemini, as well as independent pricing that is not derived from other assets. These requirements aim to enhance liquidity and transparency during investments. The Brazilian Securities and Exchange Commission (CVM) had previously approved Hashdex to create the world’s first XRP spot exchange-traded fund (ETF) in February 2024, further solidifying Hashdex's position as a global leader in crypto investment markets.

Hashdex's decision to exclude meme cryptocurrencies from its ETF offerings is based on the firm's criteria for security, reputation, economic fundamentals, and innovative use cases. The firm's Nasdaq Crypto Index Fund (NCIQ) currently holds assets worth $66 million and aims to attract more institutional investors by offering a diversified portfolio of digital assets. The fund's evaluation team intends to add the aforementioned cryptocurrencies to its portfolio, which could draw more institutional investors seeking diversified crypto investments.

This move by Hashdex comes amid changing regulatory attitudes toward cryptocurrency. The crypto industry gained optimism when U.S. President Donald Trump announced his decision to relax existing crypto regulations. Hashdex joins many other asset management companies that are expediting their crypto ETF application submissions to earn regulatory approval. The expanded Hashdex ETF, if approved, would provide investors with new opportunities and enhance crypto market credibility. Investors and industry leaders are closely watching how regulators respond to these developments.

Hashdex's amended filing to the SEC outlines a planned shift to the broader Nasdaq Crypto Index (NCI), which includes a wider selection of digital assets beyond Bitcoin and Ethereum. This transition, if approved, would mark a significant expansion of the ETF's asset mix, offering investors a more diversified portfolio within a regulated framework. The fund, launched in February 2024, currently holds only Bitcoin and Ethereum and follows the Nasdaq Crypto US Index, which exclusively tracks the two largest cryptocurrencies by market capitalization.

Hashdex has not provided a specific timeline for the transition, and the SEC must approve the proposed changes before they take effect. The filing describes the selected assets as decentralized networks that rely on public key cryptography for security, with values primarily influenced by market supply and demand conditions. This move reflects the growing demand for more comprehensive crypto investment products, but final approval will depend on regulatory assessments.

The SEC has acknowledged more than a dozen ETF filings related to cryptocurrencies this year, including proposals for staking features, in-kind redemptions, and expanded altcoin-based funds. However, the timeline for approvals remains uncertain as regulators continue evaluating potential risks associated with broader crypto market exposure. If cleared, the fund could offer U.S. investors an alternative to single-asset crypto ETFs, diversifying exposure within a regulated framework.

Other asset managers, including Grayscale, have also moved to broaden their ETF offerings. Grayscale has applied to convert its Digital Large Cap Fund, which holds Bitcoin, Ethereum, Solana, and XRP, into an ETF, a move that would introduce another multi-asset fund to the market. This trend highlights the increasing interest in diversified crypto investment products, as industry analysts have pointed to crypto index ETFs as the next step in expanding investment access following the approval of spot Bitcoin ETFs in January 2024.