Hashdex Seeks SEC Approval to Add SOL, ADA, XRP to Crypto ETF

The filing, which was shared by Bloomberg ETF analyst James Seyffart on September 23, represents a strategic pivot for Hashdex. The firm was among the first issuers to pursue a dual-asset crypto ETF in June 2024, with an initial proposal specifying holdings of only Bitcoin, Ethereum, and cash. At the time, Seyffart commented that the combination of the two largest digital assets ‘makes a lot of sense.’ The new proposal, however, aims to track the complete composition of the Nasdaq Crypto Index, moving beyond a limited two-asset strategy.

This expansion attempt is made possible by the generic listing standards approved by the SEC on September 17 for commodity-based trust shares on major exchanges like Nasdaq, Cboe, and the New York Stock Exchange. These standards are designed to streamline the approval process for exchange-traded products (ETPs) tied to digital assets, shifting away from the historically lengthy, case-by-case reviews. While these new rules aim to create a more efficient pathway, they do not guarantee approval for every type of crypto ETP, as regulatory limitations still apply selectively.

The heart of Hashdex’s proposal lies in its intention to mirror the Nasdaq Crypto Index. According to the filing, the index’s weighting is heavily concentrated in Bitcoin and Ethereum, which together account for 87.3% of the fund. Bitcoin would dominate with a 72.5% allocation, followed by Ethereum at 14.8%. The proposed new additions would fill out the remaining allocation: XRP at 6.9%, Solana at 4.3%, and Cardano at 1.2%.

This specific weighting reflects a calculated approach to diversification. By including these additional assets, the ETF would offer exposure to a broader segment of the crypto market, capturing the potential of major altcoins alongside the established giants. The inclusion of Solana, Cardano, and XRP signals a growing institutional acknowledgment of their market significance and a desire to provide a product that more accurately represents the evolving digital asset landscape.

The outcome of Hashdex’s filing is being closely watched, as it could set a critical precedent for the entire industry. A successful approval would likely encourage other crypto fund managers to file similar proposals, seeking to offer investors diversified exposure beyond the confines of Bitcoin and Ethereum. This could accelerate the maturation of the crypto ETP market, providing a regulated on-ramp for traditional finance participants to gain access to a multi-asset basket of digital currencies.

However, the path forward is not without its hurdles. The SEC’s new generic standards, while a step towards clarity, do not eliminate regulatory scrutiny. The commission’s view on whether assets like Solana, Cardano, and XRP qualify as commodities—a key requirement under the new framework—remains a central question. The decision on Hashdex’s filing will therefore serve as a crucial indicator of the SEC’s current stance on the classification of these specific digital assets and its willingness to permit a more expansive crypto ETF product in the United States.