“Hashdex’s ETF Expansion & the US SEC’s New Crypto Listing Regime: A Turning Point for Multi-Asset Crypto ETFs”

Main Points :

• The U.S. SEC recently adopted generic listing standards for commodity-based ETFs, dramatically shortening approval timelines and enabling broader crypto asset inclusion.
• In response, Hashdex’s Nasdaq Crypto Index US ETF (ticker NCIQ) was approved to expand beyond BTC/ETH to include XRP, SOL, and XLM.
• The SEC Chair Paul Atkins is now promoting an “innovation exemption” to further ease entry of novel crypto products.
• Other issuers and asset managers are filing new multi-crypto ETFs, anticipating a wave of launches in late 2025.
• For crypto investors or blockchain project teams, this shift may open institutional routes for new tokens to be packaged into ETFs, lowering barriers to adoption.

The SEC’s New Generic Listing Standards for Crypto ETFs

In September 2025, the U.S. Securities and Exchange Commission (SEC) approved a new generic listing framework for commodity-based exchange traded products (ETPs), which fundamentally transforms how crypto ETFs can be listed. Under this framework, issuers no longer need to file individualized rule changes under Section 19(b) of the Securities Exchange Act for each ETF. This means that products meeting certain criteria may be listed more rapidly.

Previously, crypto ETF applicants faced months—or even up to 270 days—of review, public comment, and negotiation.  Under the new rules, qualifying ETFs can be approved in as little as 75 days.

To enjoy this expedited path, a proposed crypto ETF must satisfy at least one of three principal conditions:

1. The underlying cryptocurrency already trades on a regulated market (or exchange) and/or has futures contracts regulated by the U.S. Commodity Futures Trading Commission (CFTC) that have been active for at least six months.
2. Another ETF tied to that coin exists, and that ETF has at least 40 % of its assets directly invested in the cryptocurrency itself (rather than via derivatives).
3. The proposed structure meets the SEC’s updated listing criteria under Nasdaq Rule 5711(d) (and analogous rules on other exchanges).

In effect, these generic standards create a kind of “pre-cleared path” for crypto ETFs rather than requiring bespoke negotiation for every listing. Many analysts expect this will dramatically accelerate the number of crypto ETFs on U.S. exchanges.

One further change: the SEC has also allowed in-kind creations and redemptions for crypto exchange-traded products. Historically, crypto ETFs had only been allowed to redeem in cash, which was a constraint. The new allowance aligns crypto ETFs more closely with traditional commodity ETPs.

Hashdex Expands Its ETF to Include Altcoins

In direct response to the SEC’s listing rule changes, Hashdex announced its Nasdaq-listed Crypto Index US ETF (ticker: NCIQ) will expand its holdings beyond Bitcoin (BTC) and Ethereum (ETH) to incorporate XRP, Solana (SOL), and Stellar (XLM).

The fund is now permitted, under the generic listing standards, to hold additional crypto assets that are constituents of the Nasdaq Crypto US Settlement Price™ Index (NCIUSS). Previously, its trust agreement limited it to BTC and ETH, but a new restated trust agreement was filed to comply with the updated rules.

According to reports, the weight breakdown will still favor BTC and ETH—the dominant holdings—while XRP, SOL, and XLM will get smaller allocations. For instance, XRP may represent ~6–7 %, SOL ~4 %, and XLM ~0.3 %.

This move effectively gives regulated U.S. investors access to a basket of major altcoins (beyond just BTC/ETH) via a single ETF product. It also serves as a test case for how altcoins may enter mainstream financial flows.

The Innovation Exemption & Regulatory Tailwinds

SEC Chair Paul Atkins is pushing further reforms beyond just listing rules. He has publicly proposed an “innovation exemption” to fast-track new digital asset products, allowing crypto firms to launch novel assets under lighter regulatory constraints while full rules are developed.

This exemption would act like a regulatory “sandbox,” permitting new tokens or structures to get to market more quickly without suffering from immediate enforcement under old rules. Atkins aims to roll this out by the end of 2025.

This direction is consistent with broader shifts:

• The SEC has signaled a desire to reduce regulatory burdens for crypto firms.
• The legislature is also pushing clarity: the FIT21 Act (Financial Innovation and Technology for the 21st Century Act), passed by the U.S. House, aims to delineate regulatory responsibilities for digital assets between the SEC and CFTC.
• With both regulatory and legislative momentum, the crypto sector views the U.S. policy environment as more favorable for experimentation and growth.

Surge of ETF Filings & Competition

The Hashdex expansion is happening against a backdrop of many asset managers racing to file new crypto ETFs under the new regime.

For example:

• Grayscale Investments has already launched (or converted into) a multi-asset crypto ETF (Grayscale Digital Large Cap Fund) that holds BTC, ETH, XRP, SOL, and ADA.
• Firms like Canary Capital and VanEck have reported “a dozen filings” or more waiting with the SEC for new crypto ETF approval.
• Analysts expect that the fourth quarter of 2025 will see the first new altcoin ETFs launching under the new rules.

Still, not all tokens will qualify. Some smaller or newer crypto projects may not yet have regulated futures trading or prior ETF backing, making them ineligible for the fast-track route.

Thus, there is likely to be a filtering effect: only projects with sufficient maturity, liquidity, market infrastructure, and adoption will be able to enter via the ETF gateway.

Implications for Crypto Investors and Project Teams

Lower Barrier to Institutional Entry

For token projects that can meet the listing criteria, inclusion in an ETF means gaining access to institutional capital flows. Many institutional investors prefer exposure via regulated vehicles rather than spot exchanges. This may elevate demand, liquidity, and legitimacy for qualifying assets.

Token Design That Meets Regulatory Tests

Projects aiming for ETF inclusion will need to think about structural prerequisites:

• Ensure their token is listed on a regulated exchange or has derivatives (futures) in a regulated market
• Build governance, disclosure, and audit practices to satisfy regulatory expectations
• Possibly partner with existing ETFs or funds to build up “ETF history” or backing

Increased Competition & Product Differentiation

With many issuers entering the field, competition will intensify. We may see thematic ETFs (e.g. Web3 infrastructure, gaming tokens, layer-2 protocols) or even “meme coin” baskets if the tokens meet criteria.

Product innovation may also flourish: think derivatives overlays, “buffered crypto ETFs,” or yield-enabled baskets incorporating staking revenue.

Regulatory Risks Remain

• Despite the easing, the SEC and other regulators may still act via enforcement in ambiguous areas.
• The “innovation exemption” is not yet codified; the details, scope, and limitations are uncertain.
• Market volatility or token misconduct may provoke regulatory pushback.

Summary & Outlook

The SEC’s recent adoption of generic listing standards for commodity-based ETFs marks a watershed moment in crypto regulation. By lowering the barrier to ETF creation and clarifying the pathway for altcoins, it potentially ushers in a new era of retail and institutional access to a wider spectrum of crypto assets. Hashdex’s decision to expand its ETF to include XRP, SOL, and XLM is one signal among many that the product landscape is shifting rapidly.

But the journey is just beginning. The success of this transformation depends on how many crypto projects can structurally and regulatorily align themselves for ETF inclusion, the speed of SEC’s innovation‐exemption rulemaking, and investor uptake of diversified crypto products. For those hunting new opportunities—whether as token creators, fund managers, or advanced investors—this moment offers both a rare opening and a practical challenge.

If you like, I can send you a PDF version with charts, or generate charts for the key token weights, filing counts, or projected flows. Let me know your preference.