Karla Barker 
ETF Expansion Under New SEC Framework
Hashdex has officially filed with the U.S. Securities and Exchange Commission to broaden its Nasdaq Crypto Index US ETF beyond just Bitcoin and Ethereum. The filing, submitted on September 23, seeks regulatory permission to include Solana, Cardano, and XRP in the fund’s holdings. This move represents a significant shift from the fund’s original structure, which was limited to the two largest cryptocurrencies.
The timing of this expansion attempt is noteworthy. It comes just days after the SEC adopted new generic listing standards for commodity-based trust shares on major exchanges like Nasdaq, Cboe, and the New York Stock Exchange. These standards, approved on September 17, aim to create a more streamlined approval process for exchange-traded products tied to digital assets.
Index Composition and Weighting
According to the filing details shared by Bloomberg ETF analyst James Seyffart, the expanded fund would track the complete composition of the Nasdaq crypto index rather than being restricted to Bitcoin and Ethereum. The index weighting shows Bitcoin maintaining the dominant position at 72.5%, followed by Ethereum at 14.8%. The proposed additions would see Solana comprising 4.3% of the index, XRP at 6.9%, and Cardano at 1.2%.
This weighting structure reflects the current market capitalization hierarchy while providing exposure to additional major digital assets. The inclusion of these three cryptocurrencies would give investors access to a more diversified crypto portfolio through a single regulated investment vehicle.
Regulatory Context and Implications
The new SEC standards represent a shift away from the previous case-by-case review process that often resulted in lengthy approval timelines. However, it’s important to note that these generic standards don’t automatically open the door for every type of crypto ETP. Regulatory limitations still apply selectively, and the SEC maintains discretion over which assets qualify.
Hashdex’s original filing in June 2024 specified that the fund would hold only Bitcoin, Ethereum, and cash. At the time, Seyffart commented that the combination of Bitcoin and Ethereum “makes a lot of sense” given their market positions. The current expansion attempt suggests growing confidence in the regulatory environment and investor demand for broader crypto exposure.
Potential Market Impact
If approved, Hashdex’s expanded ETF could set an important precedent for the industry. Other crypto fund managers might follow with similar expansion attempts, potentially leading to a new wave of diversified crypto investment products. The outcome could significantly influence how traditional investors access the cryptocurrency market through regulated channels.
The filing represents a careful balancing act between regulatory compliance and market demand. While the new standards aim to streamline approvals, each asset still needs to meet specific SEC requirements. The inclusion of XRP is particularly interesting given its ongoing regulatory history, suggesting that Hashdex believes these assets now meet the necessary criteria under the updated framework.
This development comes at a time when institutional interest in cryptocurrencies continues to grow, but regulatory clarity remains a key concern for many potential investors. A successful expansion could provide a template for how crypto ETPs might evolve to include a broader range of digital assets while maintaining regulatory compliance.