Key Takeaways:
- Litecoin’s inclusion challenges the Bitcoin-Ethereum dominance, pushing investors to reconsider diversification strategies.
- Hashdex’s move could open the door for major investors to explore altcoins, reshaping crypto investment priorities.
- Litecoin’s inclusion challenges the Bitcoin-Ethereum dominance, pushing investors to reconsider diversification strategies
Crypto asset management firm Hashdex submitted an amendment proposal to the U.S. Securities and Exchange Commission (SEC) last Friday to add Litecoin (LTC) to its Hashdex Nasdaq Crypto Index US ETF.
If approved, Litecoin will join the ETF’s other proposed digital assets, broadening its exposure to the traditional financial market and institutional investors within a regulated environment.
Litecoin Gains ETF Exposure as Hashdex Seeks Broader Crypto Holdings
The March 14 filing, filed under file number 333-280990, outlined Hashdex’s plans to expand its Crypto Index ETF portfolio beyond Bitcoin and Ethereum.
The revised index is expected to include additional cryptocurrencies such as Solana (SOL), Ripple (XRP), Cardano (ADA), Chainlink (LINK), Avalanche (AVAX), Litecoin (LTC), and Uniswap (UNI), with each operating on its respective blockchain network.
Particularly, the addition of Litecoin would further diversify the fund’s holdings and attract investors interested in a wider array of cryptocurrencies.
An exchange-traded fund (ETF) is a basket of assets—such as stocks, bonds, or cryptocurrencies—traded on stock exchanges.
It allows investors to buy and sell shares throughout the day, offering diversification by spreading risk across multiple assets.
Hashdex’s proposal to add Litecoin isn’t random. Litecoin has been around for over a decade, often seen as Bitcoin’s lighter, faster counterpart.
Its features, such as its popularity, strong liquidity, and lower transaction fees, make it an interesting addition to an ETF.
If this gets the green light, it would be another step towards integrating crypto with traditional finance, which would give both big institutions and everyday investors more options to diversify their portfolios.
Brazil ETF Approval Highlights Hashdex Expansion Strategy
Recently, Hashdex secured approval from Brazil’s Securities and Exchange Commission to launch the world’s first XRP spot ETF on the B3 stock exchange.
This approval allows Brazilian investors to gain exposure to XRP through a regulated investment vehicle.
Hashdex continues to provide more crypto investment options while signaling increasing institutional acceptance of digital assets.
The Hashdex Nasdaq XRP Index Fund was officially established on February 18, 2025, and Genial Investimentos was appointed its administrator.
While a U.S. launch date for the expanded ETF remains undisclosed, the broader crypto ETF market is becoming increasingly competitive.
Since Bitcoin and Ethereum spot ETFs received approval in 2024, fund issuers have accelerated efforts to broaden their offerings.
SEC Decision on Litecoin Could Boost Hashdex Crypto Index ETF Expansion
Bloomberg analysts James Seyffart and Eric Balchunas estimate a 90% likelihood of Litecoin ETF approval before the end of 2025.
Their prediction places Litecoin ahead of Solana (70%), Dogecoin (75%), and XRP (65%).
They argue that Litecoin’s proof-of-work mechanism, similar to Bitcoin’s, and its existing regulatory filings could streamline the approval process.
Demand for crypto ETFs has surged, with spot Bitcoin and Ether ETFs attracting $40.7 billion and $3.18 billion in net inflows since their launches.
While a Litecoin ETF may not see the same demand, Seyffart notes that even modest inflows could make it viable for fund issuers.
The SEC’s final decision on Litecoin, Solana, XRP, and Dogecoin ETFs is expected between October 2 and 18, a timeline closely watched by investors and fund issuers looking to expand the reach of crypto index ETFs.
Frequently Asked Questions (FAQs)
Since Litecoin is considered a commodity rather than a security, it avoids the tougher regulations and doubts that securities may face in the same situation. This makes it easier to get approval since it sidesteps the SEC’s stricter oversight on securities branded cryptocurrencies.
Among the risks known primarily to ETFs is their reliance on third parties to store assets safely. These parties are often centralized and leave space for potential price manipulation due to crypto’s volatility and liquidity issues.
Yes, if Litecoin’s ETF gets approved, it could pave the way for others like Solana and XRP. A green light from regulators would show they’re open to approving beyond Bitcoin and Ethereum, which would mean they are now open to altcoins, too.
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