Hashdex, a Brazil-based asset manager specializing in digital assets, has filed an amendment with the U.S. Securities and Exchange Commission in order to expand its cryptocurrency index ETF with a slew of additional altcoins, including XRP and Cardano (ADA).
In order to be eligible for inclusion in the index, cryptocurrency tokens must meet several criteria such as having tradable markets listed on core exchanges (Bitstamp, Coinbase, Gemini, and so on) and having free-floating pricing (meaning that its value is not supposed to be pegged to any other asset).
Hashdex can take into consideration several other factors such as reputational and security concerns. Cryptocurrencies that do not facilitate novel use cases and lack crypto-economic innovation will not be part of the index ETF. The firm has clarified that meme cryptocurrencies may be excluded from the index.
As of March 17, Bitcoin has an 88.3% weighting in the ETF. Ethereum (ETH) accounts for the remaining 11.7%.
Tomiwabold OlajideThe new tokens will be weighed based on their free float market capitalizations.
The ETF currently has a total of $70.43 million in net assets.
An expanded version of the ETF that offers more cryptocurrencies is already available on the Bermuda Stock Exchange.
Last month, Hashdex secured approval to launch the very first spot XRP ETF in the world. This came after the firm also obtained approval to launch an ETF that offers exposure to Solana (SOL).
Meanwhile, there are countless pending proposals to launch various spot altcoin ETFs in the U.S. The SEC is widely expected to approve XRP and Solana ETF this year, according to betting markets.
Vladislav Sopov
Dan Burgin