Hashdex Expands Crypto ETF with XRP and ADA Amid Growing Market Interest

Brazil-based asset manager Hashdex is expanding its cryptocurrency index ETF, adding altcoins like XRP and Cardano (ADA). The firm recently filed an amendment with the U.S. Securities and Exchange Commission (SEC) to adjust its portfolio, which currently holds Bitcoin (88.3%) and Ethereum (11.7%).

To qualify for inclusion, cryptocurrencies must have tradable markets on key exchanges like Coinbase, Bitstamp, and Gemini. They must also maintain free-floating pricing, meaning their value isn't pegged to another asset. Hashdex will evaluate potential additions based on factors like security, reputation, and crypto-economic innovation. Meme coins and tokens without unique use cases are unlikely to be included.

The ETF, which holds $70.43 million in net assets, will weigh new tokens based on their free float market capitalizations. A broader version of this fund is already available on the Bermuda Stock Exchange.

Hashdex recently gained approval to launch the world's first spot XRP ETF, following a similar approval for a Solana (SOL) ETF. As the demand for regulated crypto investment products rises, several spot altcoin ETF proposals are awaiting SEC approval. Market speculation suggests that the SEC may greenlight both XRP and Solana ETFs later this year.

This development highlights the increasing adoption of cryptocurrency ETFs, providing investors with more diversified exposure to the digital asset market.