Hashdex Seeks SEC Approval to Add Litecoin to Crypto Index ETF

Key Takeaways:

• Litecoin’s inclusion challenges the Bitcoin-Ethereum dominance, pushing buyers to rethink diversification methods.
• Hashdex’s transfer might open the door for main buyers to discover altcoins, reshaping crypto funding priorities.
• Litecoin’s inclusion challenges the Bitcoin-Ethereum dominance, pushing buyers to rethink diversification methods

Crypto asset administration agency Hashdex submitted an modification proposal to the U.S. Securities and Change Fee (SEC) final Friday so as to add Litecoin (LTC) to its Hashdex Nasdaq Crypto Index US ETF.

If accepted, Litecoin will be part of the ETF’s different proposed digital belongings, broadening its publicity to the standard monetary market and institutional buyers inside a regulated atmosphere.

Litecoin Features ETF Publicity as Hashdex Seeks Broader Crypto Holdings

The March 14 submitting, filed underneath file quantity 333-280990, outlined Hashdex’s plans to increase its Crypto Index ETF portfolio past Bitcoin and Ethereum.

The revised index is predicted to incorporate extra cryptocurrencies resembling Solana (SOL), Ripple (XRP), Cardano (ADA), Chainlink (LINK), Avalanche (AVAX), Litecoin (LTC), and Uniswap (UNI), with every working on its respective blockchain community.

Significantly, the addition of Litecoin would additional diversify the fund’s holdings and entice buyers eager about a wider array of cryptocurrencies.

An exchange-traded fund (ETF) is a basket of belongings—resembling shares, bonds, or cryptocurrencies—traded on inventory exchanges.

It permits buyers to purchase and promote shares all through the day, providing diversification by spreading danger throughout a number of belongings.

Hashdex’s proposal so as to add Litecoin isn’t random. Litecoin has been round for over a decade, typically seen as Bitcoin’s lighter, quicker counterpart.

Its options, resembling its reputation, sturdy liquidity, and decrease transaction charges, make it an attention-grabbing addition to an ETF.

If this will get the inexperienced gentle, it will be one other step in direction of integrating crypto with conventional finance, which might give each huge establishments and on a regular basis buyers extra choices to diversify their portfolios.

Brazil ETF Approval Highlights Hashdex Enlargement Technique

Not too long ago, Hashdex secured approval from Brazil’s Securities and Change Fee to launch the world’s first XRP spot ETF on the B3 inventory alternate.

This approval permits Brazilian buyers to achieve publicity to XRP by means of a regulated funding car.

Hashdex continues to supply extra crypto funding choices whereas signaling growing institutional acceptance of digital belongings.

The Hashdex Nasdaq XRP Index Fund was formally established on February 18, 2025, and Genial Investimentos was appointed its administrator.

Whereas a U.S. launch date for the expanded ETF stays undisclosed, the broader crypto ETF market is changing into more and more aggressive.

Since Bitcoin and Ethereum spot ETFs acquired approval in 2024, fund issuers have accelerated efforts to broaden their choices.

SEC Determination on Litecoin Might Enhance Hashdex Crypto Index ETF Enlargement

Bloomberg analysts James Seyffart and Eric Balchunas estimate a 90% chance of Litecoin ETF approval earlier than the top of 2025.

Their prediction locations Litecoin forward of Solana (70%), Dogecoin (75%), and XRP (65%).

They argue that Litecoin’s proof-of-work mechanism, much like Bitcoin’s, and its present regulatory filings might streamline the approval course of.

Demand for crypto ETFs has surged, with spot Bitcoin and Ether ETFs attracting $40.7 billion and $3.18 billion in internet inflows since their launches.

Whereas a Litecoin ETF might not see the identical demand, Seyffart notes that even modest inflows might make it viable for fund issuers.

The SEC’s closing resolution on Litecoin, Solana, XRP, and Dogecoin ETFs is predicted between October 2 and 18, a timeline carefully watched by buyers and fund issuers seeking to increase the attain of crypto index ETFs.

Ceaselessly Requested Questions (FAQs)

How does Litecoin’s classification as a commodity influence its probabilities of ETF approval?

Since Litecoin is taken into account a commodity quite than a safety, it avoids the more durable rules and doubts that securities might face in the identical state of affairs. This makes it simpler to get approval because it sidesteps the SEC’s stricter oversight on securities branded cryptocurrencies.

What are the dangers of a Litecoin ETF?

Among the many dangers identified primarily to ETFs is their reliance on third events to retailer belongings safely. These events are sometimes centralized and go away area for potential worth manipulation on account of crypto’s volatility and liquidity points.

Might a Litecoin ETF result in extra altcoin ETFs?

Sure, if Litecoin’s ETF will get accepted, it might pave the way in which for others like Solana and XRP. A inexperienced gentle from regulators would present they’re open to approving past Bitcoin and Ethereum, which might imply they’re now open to altcoins, too.

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