Hashdex, a Brazil-based digital asset manager, has filed an amendment with the U.S. Securities and Exchange Commission (SEC) to add seven altcoins to its Nasdaq Crypto Index US ETF (NCIQ). The ETF currently holds only Bitcoin and Ethereum. The proposed amendment aims to diversify the fund by including Solana, XRP, Cardano, Litecoin, Chainlink, Avalanche, and Uniswap.
This move reflects a broader trend among issuers to cover a variety of cryptocurrencies in their crypto-tracking exchange-traded funds. The submission follows three months after the fund first received SEC approval. NCIQ, which debuted on February 14, manages approximately $66 million in assets.
In recent months, fund managers have increasingly proposed new investment offerings to track the prices of a wider range of cryptocurrencies directly. This trend points to a growing demand for diversified crypto funds among investors. Hashdex’s initiative to expand the index follows the successful launch of ETFs tracking Bitcoin, which have collectively drawn significant investor interest.
Hashdex’s ETF diversification initiative
Currently, 11 Bitcoin funds manage roughly $100 billion in assets. While Ethereum-focused funds attract less attention, they have still generated about $2.5 billion in net inflows.
The Hashdex Nasdaq Crypto Index US ETF is expected to benefit from this diversification, appealing to investors seeking broader exposure to the cryptocurrency market beyond just Bitcoin and Ethereum. As part of this transition, the ETF plans to switch its reference index from the Nasdaq Crypto US Index, which only tracks Bitcoin and Ether, to the more comprehensive Nasdaq Crypto Index. The asset manager has not specified when this change will take effect.
The proposed changes must be approved by the US Securities and Exchange Commission (SEC) before they can be implemented. In December, the SEC approved Bitcoin and Ether index ETFs by both asset managers. Industry analysts consider crypto index ETFs to be the next major focus for issuers following the listing of ETFs holding Bitcoin and Ether earlier this year.
“The next logical step is index ETFs because indices are efficient for investors — just like how people buy the S&P 500 in an ETF. This will be the same in crypto,” said Katalin Tischhauser, head of investment research at crypto bank Sygnum.
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