The manager of Hashdex assets modified his S-1 regulatory file to extend his stock market fund (ETF) of the Crypto index, offering the addition of seven altcoins alongside Bitcoin (BTC) and Ethereum (ETH), according to a March 14 deposit Subject to Securities and Exchange Commission (SEC).
The revised file aims to include Solana (ground), XRP, Cardano (ADA), ChainLink (Link), Avalanche (Avx), Litecoin (LTC) and UNISWAP (UNI) in the hashdex nasda crypto index and US.
The fund, launched in February 2024, currently holds only Bitcoin and Ethereum and follows the Nasdaq Crypto US index, which follows exclusively the two largest cryptocurrencies by market capitalization.
The deposit describes a change provided to the wider crypto Nasdaq (NCI) index, which includes a wider selection of digital assets beyond the BTC and the ETH.
Hashdex has not provided a specific calendar for the transition, and the dry must approve the proposed modifications before taking effect.
Growing interest of Altcoin
The previous iterations of Hashdex’s S-1 suggested the possibility of expanding the mixture of assets of the ETF, but this marks the first time that specific altcoins have been named.
The deposit describes the assets selected as decentralized networks which are based on public key cryptography for security, with values mainly influenced by market supply and demand conditions.
Although these ETFs have seen modest entries initially, they represent the first American funds designed to provide exposure to diversified cryptography. Industry analysts indicated that the ETF of the Crypto index as the next step in expanding access to investments following the approval of Bitcoin Spot ETF in January 2024.
Other asset managers, including Grayscale, also moved to expand their ETF offers. Grayscale applied to convert its digital fund of large capitalization, which contains BTC, ETH, Sol and XRP, in ETF, a decision that would introduce another multi-active fund on the market.
Regulatory prospects
The SEC has recognized more than a dozen ETF deposits linked to cryptocurrencies this year, including proposals for implementation characteristics, buyouts in kind and widened funds based on Altcoin.
However, the approvation calendar remains uncertain as regulators continue to assess the potential risks associated with broader exposure on the cryptography market.
The expansion proposed by Hashdex reflects the growing demand for investment products in more complete cryptography, but the final approval will depend on regulatory assessments.
If it is deleted, the fund could offer American investors an alternative to cryptographic ETF with a single asset, diversifying exposure in a regulated framework.
