XRP is set to gain broader exposure in traditional finance through a new move by investment firm Hashdex, which has officially filed to expand its Nasdaq Crypto Index ETF to include XRP, along with Cardano (ADA) and Solana (SOL). This strategic step comes as the U.S. Securities and Exchange Commission (SEC) adopts more streamlined standards for listing crypto-related exchange-traded products (ETPs).
Hashdex’s ETF Expansion and the Nasdaq Crypto Index
Hashdex’s latest filing aims to go beyond its current ETF holdings, which previously focused on just Bitcoin, Ethereum, and cash reserves. With regulatory approval, the ETF will begin tracking the full composition of the Nasdaq Crypto Index, which includes a broader range of major altcoins approved under the SEC’s newly adopted generic listing standards.
This move comes after the SEC introduced new generic listing standards on September 17 that simplify the process for crypto-based commodity trust shares to gain approval and listing on major exchanges like Nasdaq, Cboe, and NYSE. The changes aim to eliminate case-by-case approvals for every digital asset-based ETP, though some regulatory restrictions still remain.
Illustration of SOL, ADA, and XRP integration into a Nasdaq crypto ETF under new SEC standards.
How XRP and Other Altcoins Fit Into the Portfolio
James Seyffart, a Bloomberg ETF analyst, highlighted the importance of Hashdex’s filing in a recent post shared on X (formerly Twitter). According to the current index breakdown, Bitcoin maintains dominance with a 72.5% allocation, while Ethereum makes up 14.8%. XRP holds a 6.9% share, followed by Solana at 4.3% and Cardano at 1.2%.
These figures represent a well-diversified index that reflects growing institutional interest in altcoins beyond just Bitcoin and Ethereum. Including XRP in the ETF allows investors to gain regulated exposure to XRP without directly holding the asset, aligning with the preferences of traditional investors seeking secure and compliant ways to enter crypto markets.
Regulatory Context and Implications
The SEC’s approval of generic listing standards is seen as a turning point for crypto investing in the United States. These new standards are designed to streamline the launch of crypto ETPs tied to digital assets with proper infrastructure and market integrity.
However, this doesn’t automatically open the floodgates for all types of crypto funds. The streamlined standards specifically apply to commodity-based trust shares and are limited to trusted exchange operators. Still, this development is encouraging for firms like Hashdex looking to offer exposure to multiple digital assets through a single, regulated vehicle.
In a prior filing from June 2024, Hashdex became one of the pioneers to combine Bitcoin and Ethereum in a dual-asset ETF proposal. Seyffart endorsed that move then, emphasizing how it offered a practical approach for investors wanting simple, compliant access to the top two cryptocurrencies. This newest expansion filing builds on that by targeting a wider slice of the crypto asset class, now including XRP.
Potential Market Impact of XRP’s Inclusion
Bringing XRP into a Nasdaq-listed ETF marks a significant moment for mainstream adoption. As XRP continues to navigate regulatory clarity in the U.S., its presence in an SEC-compliant ETF could bolster confidence among institutional and retail investors alike.
Investor appetite for diversified crypto investments is growing. If Hashdex’s updated ETF gains approval, it could set a precedent for other fund managers aiming to bundle various compliant digital assets—such as XRP—into market-traded products, promoting increased liquidity and broader adoption.
The outcome of this filing may also serve as an indicator of how far the SEC is willing to go in supporting altcoin inclusion, potentially reshaping access to the crypto economy through traditional finance channels.
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