Institutional Investors Get 75/25 Crypto-Stock Hybrid ETFs as Market Shifts from Retail Dominance

Cyber Hornet, a fintech firm, has filed with the U.S. Securities and Exchange Commission (SEC) for three hybrid exchange-traded funds (ETFs) designed to blend exposure to the S&P 500 Index with cryptocurrencies including XRP, Ethereum (ETH), and Solana (SOL). Each fund follows a 75/25 allocation model, with 75% invested in S&P 500 equities and 25% in the respective digital asset or its futures contractstitle1^[1]. The filings mark a significant step in bridging traditional finance and cryptocurrency markets, as these products aim to provide investors with diversified exposure while mitigating the volatility associated with direct crypto holdingstitle2^[2].

The proposed ETFs, named Cyber Hornet S&P 500 and XRP 75/25 Strategy ETF (ticker “XXX”), Cyber Hornet S&P 500 and Ethereum 75/25 Strategy ETF (ticker “EEE”), and Cyber Hornet S&P 500 and Solana 75/25 Strategy ETF (ticker “SSS”), will trade on Nasdaq if approvedtitle3^[3]. Each fund will rebalance monthly to maintain the 75/25 ratio, with Cyber Hornet retaining the flexibility to adjust more frequently during market volatilitytitle4^[4]. For Ethereum and Solana, exposure will be derived from CME futures and spot holdings, while XRP will combine futures, direct purchases, and exchange-traded products. The annual management fee is set at 0.95%, with no shareholder transaction coststitle5^[5].

The SEC’s recent approval of generic listing standards for commodity-based ETFs has streamlined the approval process, enabling issuers to bypass individual Section 19(b) reviews under the Securities Exchange Act of 1934title6^[6]. This regulatory shift has accelerated the development of crypto-linked ETFs, with Cyber Hornet’s filings leveraging the One Fund Trust structure to expedite SEC reviewtitle7^[7]. The firm’s existing Bitcoin 75/25 ETF (ticker “BBB”) has demonstrated success, delivering a 39% return in 2024 and ranking among Morningstar’s top performerstitle8^[8].

Analysts suggest these hybrid ETFs could catalyze broader institutional adoption of cryptocurrencies by offering a risk-managed framework for investors seeking exposure to digital assetstitle9^[9]. By combining the stability of S&P 500 equities with the growth potential of crypto, the funds may attract pension funds, hedge funds, and other institutional investors, shifting crypto markets from retail-dominated to more diversified participationtitle10^[10]. The SEC’s October 2025 timeline for multiple XRP ETF decisions, including Cyber Hornet’s filing, underscores the regulatory focus on legitimizing crypto-based productstitle11^[11].

However, challenges remain. The SEC and FINRA are investigating abnormal trading activity preceding ETF announcements, signaling heightened scrutiny of potential market manipulationtitle12^[12]. Additionally, while the 75/25 model mitigates crypto volatility, it does not fully insulate investors from market downturns. The success of these ETFs will depend on their ability to balance risk and reward, aligning with the growing demand for crypto integration in traditional portfoliostitle13^[13].