According to latest reports, Hashdex has just taken a big step to expand its ‘Nasdaq Crypto Index US ETF (NCIQ). The ‘company has filed with the U.S. Securities and Exchange Commission (SEC) to add major altcoins like XRP, Solana (SOL), Cardano (ADA), Chainlink (LINK), Avalanche (AVAX), Litecoin (LTC), and Uniswap (UNI).
This comes as institutions are increasingly interested in ‘digital assets and looking for diversified crypto investment products. If approved, this will be a big deal for regulated crypto ETFs and open up more digital assets to investors.
The Hashdex Nasdaq Crypto Index ETF Evolution
The Nasdaq Crypto Index US ETF (NCIQ) launched on ‘February 14, 2025 after getting SEC approval on December 19, 2024. Sources report that it’s the first in the U.S. ‘to track both Bitcoin (BTC) and Ethereum (ETH) under a regulated framework.
At launch, NCIQ allocated 88% of its assets to Bitcoin ‘and 12% to Ethereum, matching institutional demand for those assets. Coinbase Custody Trust Company, LLC and BitGo Trust Company are the custodians of the ETF’s assets, so they are stored securely under regulatory oversight.
ETF Fee Structure
Hashdex’s fund has a 0.25% management fee which will’ increase to 0.50% after December 31, 2025. That’s one of the lower fee crypto ETFs out there.
| Feature | Details |
|---|---|
| Launch Date | February 14, 2025 |
| SEC Approval Date | December 19, 2024 |
| Primary Assets | Bitcoin (88%), Ethereum (12%) |
| Custodians | Coinbase Custody, BitGo Trust |
| Management Fee | 0.25% (until Dec. 31, 2025), then 0.50% |
Hashdex’s New SEC Filing: Adding New Assets to the ETF
Hashdex’s latest SEC filing is to add 7 new cryptocurrencies to ‘the ETF, provided they meet strict eligibility criteria. These assets are: XRP (XRP); Solana (SOL), Cardano (ADA), Chainlink (LINK), Avalanche (AVAX)’ Litecoin (LTC), Uniswap (UNI).
To be included, a crypto asset must meet 5 criteria, ‘known as the Nasdaq Crypto Index (NCI) Criteria:
- Be actively traded on at least 2 core crypto platforms.
- Have regulated custodial support.
- Have minimum trading volume.
- Be listed on a U.S.-regulated crypto exchange or derivatives platform.
- Pass regular liquidity assessments.
According to Hashdex’s amendment, the top 15 crypto ‘assets by market capitalization as of October 23, 2024, were assessed, but only BTC, ETH, AVAX, LINK, and LTC met all criteria at that time.
However, Hashdex’s new filing is to ‘expand its crypto asset exposure and add XRP, Solana, Cardano, and Uniswap, assets with significant market presence and liquidity.
Why XRP, Solana and Cardano?
Hashdex’s move is in line with the growing demand ‘for more diversified and regulated crypto investment products. The addition of XRP, SOL and ADA is particularly interesting, given their market size and unique use cases:
– XRP: A leading payment-focused cryptocurrency with ‘significant institutional adoption, especially for cross-border transactions.
– Solana (SOL): High-speed, low-cost blockchain, popular in DeFi and NFT applications.
– Cardano (ADA): Academic-driven blockchain ‘development and scalable smart contracts.
Each of these assets has been in the top 15 cryptocurrencies ‘by market cap, making them natural additions to a broad-based crypto ETF.
Regulatory Landscape: Will the SEC Approve?
The SEC has been cautious yet evolving on ‘crypto ETFs. While spot Bitcoin ETFs were approved, altcoin-based ETFs are under scrutiny.
Hashdex’s expansion comes after its success in Brazil, where the Brazilian Securities and Exchange Commission (CVM) approved the first spot XRP ETF, the Hashdex NASDAQ XRP’ Index Fund. This sets a precedent that regulators outside the US are becoming more open to diversified crypto ETFs.
But in the US, approval is not ‘guaranteed. The SEC has raised concerns over:
– Market manipulation in’ altcoin trading
– Regulatory clarity on certain crypto assets
– Custodial security and ‘compliance with federal securities laws
If approved, it would be a big deal for the crypto ETF space, potentially opening the door for other funds that include a mix of altcoins with Bitcoin and Ethereum.
Market Reactions and Institutional Interest
Hashdex’s filing has divided the crypto community. ‘Some see it as a step towards the mainstream, while others worry about regulatory hurdles and delays.
Institutional interest in altcoins is growing, with big financial firms exploring multi-asset crypto exposure. BlackRock and Fidelity’s Bitcoin ETFs have already seen billions in ‘inflows, proving there’s demand for regulated crypto products.
Impact on Crypto Markets
Typically, assets that get added to an ETF see an increase in demand due to:
– Institutional buying pressure
– Access for traditional investors
– Liquidity and market stability
But if the SEC rejects the application or ‘delays its decision, altcoins like XRP, SOL, and ADA may see temporary sell-offs from speculators who are expecting approval.
Conclusion
Regulatory hurdles remain. The SEC’s decision will ‘impact not just Hashdex’s fund but the future of altcoin ETFs in the US. Investors and market participants will be watching closely for updates, as the outcome will be the next big step for crypto within traditional finance.
Regardless of the SEC’s decision, Hashdex is ‘showing the growing demand for diversified crypto investments and bridging the gap between crypto and institutional finance.
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FAQs
1. What is Hashdex’s Nasdaq Crypto Index ETF?
Hashdex’s Nasdaq Crypto Index ETF (NCIQ) is a ‘regulated fund that gives you exposure to Bitcoin and Ethereum. The fund will expand to include other altcoins like XRP, SOL and ADA.
2. What are the criteria for crypto assets to be included in Hashdex’s ETF?
To be eligible, a crypto asset must ‘trade on at least 2 major exchanges, have enough liquidity, custodial support and be listed on a US regulated trading or derivatives platform.
3. Why is the SEC approval important for Hashdex’s expansion?
SEC approval will legitimize altcoins in ‘regulated ETFs and make them accessible to institutional investors and traditional markets.
4. What will be the impact of an SEC approval on XRP, SOL and ADA?
Approval will lead to increased demand,’ institutional investment and price increase. Rejection or delay will trigger short term sell off.
5. How is this ETF different from BlackRock and Fidelity’s Bitcoin ETFs?
Unlike BlackRock and Fidelity’s ETFs which only have Bitcoin, Hashdex’s ETF will offer diverse crypto exposure with multiple altcoins.
Glossary
ETF (Exchange-Traded Fund): A ‘financial product that tracks an asset or basket of assets, so you can gain exposure without actually owning them.
SEC (Securities and Exchange Commission): The ‘US regulatory body that oversees securities markets, including ETFs.
Altcoins: Cryptocurrencies other than’ Bitcoin, such as Ethereum, Solana and Cardano.
Liquidity: How easily an asset can be ‘bought or sold without affecting its price.
Custodian: A financial ‘entity that holds crypto assets on behalf of ETF investors.
References
The price predictions and financial analysis presented on this website are for informational purposes only and do not constitute financial, investment, or trading advice. While we strive to provide accurate and up-to-date information, the volatile nature of cryptocurrency markets means that prices can fluctuate significantly and unpredictably.
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