Hashdex Seeks to Add XRP and ADA to Crypto ETF

Story Highlights

• Hashdex applies to add XRP and ADA to ETF.

• Hashdex excludes meme coins from ETF.

• Trump’s crypto policies boost ETF optimism.

Hashdex, a Brazil-based asset manager specializing in digital assets, has applied to the U.S. Securities and Exchange Commission (SEC) to expand its cryptocurrency index ETF. The company seeks to increase its portfolio assets with two additional altcoins, namely XRP and Cardano (ADA). The expanding market need for numerous crypto investment choices drives this new corporate direction.

ETFs accept new cryptocurrencies after they fulfill specific qualifications. The cryptocurrencies need to be accessible on Bitstamp and Coinbase as well as Gemini for trading on major exchanges. The selected cryptocurrencies need independent pricing, which means their market value should not derive from other assets. The set requirements enhance both liquidity and transparency during investments.

The Brazilian Securities and Exchange Commission (CVM) provided approval in February 2024 to Hashdex for creating the world’s initial XRP spot exchange-traded fund (ETF). The approval empowered Hashdex to expand its reach as a global leader in crypto investment markets.

Hashdex Joins ETF Rush Amid Changing Crypto Regulations

Security along with reputation factors serve as additional criteria for Hashdex when choosing investment assets. Economic fundamentals and innovative use cases act as essential criteria for crypto tokens to gain inclusion because weak fundamentals and lack of unique use cases result in exclusion. The firm has explicitly mentioned that meme cryptocurrencies will face exclusion from their ETF offerings.

The funds managed by Hashdex’s Nasdaq Crypto Index Fund (NCIQ) currently hold assets worth $66 million but have objectives to grow. The fund evaluation team intends to add XRP, Solana, Cardano, Chainlink, Uniswap, Litecoin, and Avalanche to its portfolio. The increased digital assets included in the expansion would likely draw more institutional investors who want diversified crypto investments.

The revised filing presents itself as regulatory attitudes toward cryptocurrency change. The crypto industry gained optimism when U.S. President Donald Trump announced his decision to relax existing crypto regulations. Hashdex joins many other asset management companies that expedite their crypto ETF application submissions to earn regulatory approval.

The expanded Hashdex ETF would provide investors with new opportunities and enhance crypto market credibility if it receives approval. Investors and industry leaders are watching closely to see how regulators respond to these developments.