Asset manager Hashdex has modified its S-1 regulatory submission to enhance its cryptocurrency index exchange-traded fund (ETF), proposing the incorporation of seven alternative cryptocurrencies alongside Bitcoin (BTC) and Ethereum (ETH), according to a March 14 submission presented to the Securities and Exchange Commission (SEC).
The updated submission aims to include Solana (SOL), XRP, Cardano (ADA), Chainlink (LINK), Avalanche (AVAX), Litecoin (LTC), and Uniswap (UNI) within the Hashdex Nasdaq Crypto Index US ETF.
The fund, introduced in February 2024, currently holds solely Bitcoin and Ethereum and adheres to the Nasdaq Crypto US Index, which exclusively tracks the two foremost cryptocurrencies by market capitalization.
The submission outlines a proposed transition to the broader Nasdaq Crypto Index (NCI), encompassing a wider array of digital assets beyond BTC and ETH.
Hashdex has not specified a concrete timeline for the transition, and the SEC must sanction the proposed modifications prior to their implementation.
Increasing interest in alternative cryptocurrencies
Prior versions of Hashdex’s S-1 suggested the potential for expanding the ETF’s asset composition, but this represents the first occasion specific alternative cryptocurrencies have been identified.
The submission characterizes the chosen assets as decentralized networks that utilize public key cryptography for security, with values chiefly affected by market supply and demand dynamics.
While these ETFs experienced modest inflows initially, they signify the first US funds designed to offer diversified cryptocurrency exposure. Industry analysts have indicated that cryptocurrency index ETFs represent the subsequent advancement in broadening investment access following the approval of spot Bitcoin ETFs in January 2024.
Other asset managers, including Grayscale, have also sought to expand their ETF offerings. Grayscale has applied to convert its Digital Large Cap Fund, which includes BTC, ETH, SOL, and XRP, into an ETF, a move that would introduce another multi-asset fund to the market.