tl;dr
The SEC's approval of Hashdex's ETF expansion marks a turning point for crypto investments, adding XRP, SOL, and XLM to Bitcoin and Ethereum. With streamlined rules, a crypto ETF boom is imminent, but challenges like investor education loom.
**SEC Approves Crypto ETF Expansion: Hashdex Adds XRP, SOL, and XLM as Market Prepares for a Boom**
The U.S. Securities and Exchange Commission (SEC) has taken a pivotal step in reshaping the crypto investment landscape. Hashdex Asset Management Ltd. has secured approval for its Nasdaq-listed ETF, **NASDAQ:NCIQ**, to expand its portfolio to include **XRP, SOL, and XLM**, alongside Bitcoin (BTC) and Ethereum (ETH). This move marks a significant shift, as the ETF updated its trust structure to meet Nasdaq’s new generic listing standards—a streamlined process that could herald a wave of crypto ETFs hitting the market.
The approval comes after Hashdex filed a revised “Third Amended and Restated Trust Agreement” with the SEC, replacing its previous framework. While the filing didn’t alter the ETF’s fiscal year or include new financial statements, the updated trust agreement confirmed compliance with Nasdaq’s revised rules. The ETF, based in Delaware, is classified as an “emerging growth company,” signaling its position in a rapidly evolving sector.
**A Faster Path to Market**
The SEC’s recent rule changes have accelerated the approval process for crypto ETFs, slashing the timeline from up to 270 days to as little as 75 days. This overhaul, which came after months of lobbying by industry players, has sparked a frenzy among asset managers. “We’ve got about a dozen filings with the SEC now, and more coming,” said Steven McClurg of Canary Capital Group. Analysts like Jonathan Groth of DGIM Law predict a “boom time” for crypto ETFs in Q4 2025, with launches expected to surge as early as October.
The momentum began in July, when the SEC first proposed the updated standards. Firms scrambled to revise filings, address regulatory feedback, and align with the new criteria. By the end of the week, many were poised to submit final applications. “These are the rules we had been anticipating,” said Teddy Fusaro of Bitwise, adding that most filings are nearing completion. Early October could see ETFs tracking **Solana (SOL)** and **XRP** hit the market, according to analysts.
**The Three Criteria for Approval**
To qualify for the expedited process, ETFs must meet one of three key requirements:
1. The underlying asset must trade on a regulated exchange or have CFTC-regulated futures contracts active for at least six months.
2. Another ETF must hold the asset with 40% of its assets directly invested in it (not via swaps or options).
Not all firms are ready to leap. Kyle DaCruz of VanEck admitted, “Not all of our existing filings qualify,” and emphasized the need to consult legal teams to determine which products can move forward. Meanwhile, **Grayscale Investments** acted swiftly, converting its private fund into a public ETF, **GDLC.P**, just 48 hours after the SEC’s announcement. The new fund holds BTC, ETH, XRP, SOL, and Cardano, with CEO Peter Mintzberg touting it as a “push for public market access and product innovation.”
**The Challenge of the “Unknowns”**
While the rush to launch is exciting, experts caution that not all crypto assets will resonate with investors. “There will be a flood of tokens that many folks have never heard of,” DaCruz warned. Unlike Bitcoin, which built trust over years, newer coins like XRP and SOL may face a steep uphill battle. “Investor education will be critical,” he added, highlighting the risk of short-lived interest for assets lacking established narratives.
As the crypto ETF market braces for a surge, the next few months will test whether these new products can bridge the gap between innovation and adoption. For now, the SEC’s rules have opened a door—and the industry is charging through it.