Asset supervisor Hashdex has amended its S-1 regulatory submitting to increase its crypto index exchange-traded fund (ETF), proposing the addition of seven altcoins alongside Bitcoin (BTC) and Ethereum (ETH), in response to a March 14 submitting submitted to the Securities and Alternate Fee (SEC).
The revised submitting seeks to incorporate Solana (SOL), XRP, Cardano (ADA), Chainlink (LINK), Avalanche (AVAX), Litecoin (LTC), and Uniswap (UNI) within the Hashdex Nasdaq Crypto Index US ETF.
The fund, launched in February 2024, presently holds solely Bitcoin and Ethereum and follows the Nasdaq Crypto US Index, which completely tracks the 2 largest cryptocurrencies by market capitalization.
The submitting outlines a deliberate shift to the broader Nasdaq Crypto Index (NCI), which features a wider number of digital property past BTC and ETH.
Hashdex has not supplied a selected timeline for the transition, and the SEC should approve the proposed adjustments earlier than they take impact.
Rising altcoin curiosity
Earlier iterations of Hashdex’s S-1 hinted at the opportunity of increasing the ETF’s asset combine, however this marks the primary time particular altcoins have been named.
The submitting describes the chosen property as decentralized networks that depend on public key cryptography for safety, with values primarily influenced by market provide and demand situations.
Whereas these ETFs noticed modest inflows initially, they symbolize the primary US funds designed to offer diversified crypto publicity. Trade analysts have pointed to crypto index ETFs as the subsequent step in increasing funding entry following the approval of spot Bitcoin ETFs in January 2024.
Different asset managers, together with Grayscale, have additionally moved to broaden their ETF choices. Grayscale has utilized to transform its Digital Massive Cap Fund, which holds BTC, ETH, SOL, and XRP, into an ETF, a transfer that may introduce one other multi-asset fund to the market.
Regulatory outlook
The SEC has acknowledged greater than a dozen ETF filings associated to cryptocurrencies this 12 months, together with proposals for staking options, in-kind redemptions, and expanded altcoin-based funds.
Nonetheless, the timeline for approvals stays unsure as regulators proceed evaluating potential dangers related to broader crypto market publicity.
Hashdex’s proposed enlargement displays the rising demand for extra complete crypto funding merchandise, however remaining approval will rely on regulatory assessments.
If cleared, the fund may supply US buyers an alternative choice to single-asset crypto ETFs, diversifying publicity inside a regulated framework.
Talked about on this article
