Hashdex ETF Cryptos: Firm Adds XRP, ADA and Other Cryptocurrencies

• Hashdex proposes adding XRP, ADA, SOL to ETF.
• NCIQ focuses on diversification with new cryptos.
• ETF follows strict criteria for asset inclusion.

Hashdex, a renowned asset manager in the cryptocurrency ETF segment, is in the process of expanding its portfolio with a recent filing with the SEC. The goal is to incorporate new cryptocurrencies into the Nasdaq Crypto Index US ETF, including XRP, Solana (SOL), Cardano (ADA), Chainlink (LINK), Avalanche (AVAX), Litecoin (LTC) and Uniswap (UNI). This change seeks to reflect greater diversification within the fund, which is already a pioneer in combining Bitcoin and Ethereum in its structure.

Launched on February 13, the ETF, known by the ticker NCIQ, quickly established itself after receiving the SEC’s approval. The innovative fund, which charges an annual administrative fee of 0,25% until December 2025 (rising to 0,5% after that), has Coinbase Custody and BitGo Trust as custodians for the crypto assets.

With approximately $70 million in total net assets, the ETF has an allocation of about 88% to Bitcoin and 12% to Ethereum. According to a statement from Hashdex, for a cryptocurrency to be eligible for the index, it must be traded on at least two major platforms, have custody support, maintain minimum trading volumes, and be listed on a regulated platform in the U.S.

The selection criteria are rigorous and were applied to the top 15 crypto assets by market capitalization as of October 23, 2024, analyzing them under five “NCI Criteria”. From this analysis, BTC, ETH, AVA, LINK, and LTC were the cryptocurrencies that satisfied all the requirements.

Furthermore, less than a month after the Securities and Exchange Commission (CVM) approved the launch of the world’s first spot XRP ETF, the Hashdex NASDAQ XRP Index Fund, Hashdex reiterated that new assets will be considered for inclusion only if they meet pre-defined eligibility criteria.