- Hashdex moves to add Litecoin and top altcoins to its crypto ETF, pending SEC approval, boosting investor diversification.
- Trump’s push for lenient crypto regulation fuels ETF expansion as asset managers seek broader exposure to digital assets.
- SEC delays altcoin ETF decisions, with final rulings expected by October, while crypto index ETFs gain momentum.
According to the Litecoin Foundation, Hashdex has submitted an amendment to the SEC to incorporate Litecoin into its Nasdaq Crypto Index US ETF. Only Ethereum and Bitcoin are currently held by the fund. Hashdex plans to include Litecoin along with Solana, XRP, Cardano, Chainlink, Avalanche, and Uniswap.
Hashdex’s Strategic Index Shift
Hashdex plans to transition its ETF’s reference index from the Nasdaq Crypto US Index to the broader Nasdaq Crypto Index. This shift will allow the fund to track multiple altcoins, increasing diversification for investors.
U.S. President Donald Trump has instructed federal regulators to adopt a more lenient approach toward digital asset regulation. Consequently, asset managers like Hashdex are pushing forward with crypto product expansion. However, before the proposed changes take effect, the SEC must approve them.
Crypto Index ETFs: The Next Big Trend
The SEC’s recent filings suggest that index ETFs are becoming a primary focus for issuers. In December, the agency approved Hashdex and Franklin Templeton’s Bitcoin and Ethereum index ETFs. Both funds were listed in February, initially attracting modest inflows.
Besides Hashdex, Grayscale has applied to convert its Digital Large Cap Fund into an ETF. Created in 2018, the fund includes BTC, ETH, SOL, and XRP. Industry experts believe crypto index ETFs will follow the traditional stock market trend. Consequently, these funds could gain popularity, much like S&P 500 ETFs in traditional finance.
SEC’s Stance on Altcoin ETFs
Despite the progress, the SEC has postponed decisions on several altcoin ETF applications, including XRP and Solana funds. The regulator extended its review period until May, citing procedural requirements. However, Bloomberg ETF analyst James Seyffart noted that these delays are routine. He emphasized that the final approval deadlines remain in October.
