The cryptocurrency industry is entering a dynamic period where asset managers are competing with each other to get ETF approvals. Hashdex has become one of the prominent names in this race with its latest application.
At a time when competition in the crypto ETF market is rapidly increasing, the applications are considered an important indicator that digital assets are becoming more widely accepted. “This application is an important step towards providing diversified crypto investments to retail and institutional investors,” said Hashdex CEO.
The increase in XRP ETF applications as Hashdex advances its Nasdaq Crypto Index ETF reveals the strong trend in digital asset investments.
Hashdex has made headlines with its update following its previous S-1 filing. The filing was updated in October after the SEC requested further review. The ETF initially plans to launch with two main assets tracked by the Nasdaq Crypto US Index: Bitcoin (BTC) and Ethereum (ETH). However, the filing expects the portfolio to expand to include additional digital currencies over time.
Hashdex’s ambitions are parallel to the efforts of major players like Franklin Templeton and Grayscale, who are trying to gain a share in the ETF market. While Franklin Templeton’s proposed ETF focuses on BTC and ETH, Grayscale’s Digital Large Cap Fund aims to offer a more diversified investment experience by including alternative cryptocurrencies like Solana (SOL), Avalanche (AVAX), and Ripple (XRP).
The crypto ETF market continues to break new records. Spot Bitcoin ETFs, in particular, recorded a net inflow of $3.38 billion in the week of November 18-22, a remarkable 102% increase compared to the previous week. This was also recorded as the largest weekly inflow on record. However, it is stated that there was an outflow of $438.38 million in ETFs on November 25.
On the other hand, Ethereum ETFs experienced six consecutive days of outflows after providing a net inflow of $2.83 million on Nov. 22. However, the total net assets of Ethereum ETFs exceeded $10 billion for the first time since their launch, reaching $10.28 billion on Nov. 25.
The excitement over crypto ETFs is not limited to Bitcoin and Ethereum. Another major player known for its global ETF offerings, WisdomTree, has filed in Delaware to create an ETF focused on XRP. This filing marks a strategic move for the firm, which manages over $100 billion in assets. WisdomTree is trying to establish a place for itself in the growing ETF market alongside firms like Bitwise and 21Shares.
Recent reports have highlighted the increasing interest and activity in crypto ETF applications. It has been noted that SEC Chairman Gary Gensler, who has taken a hardline stance on crypto regulation, will step down in early 2025, and this change coincides with the goal of making the United States a leader in the global crypto market. This political shift could create a more positive environment for crypto ETFs and related innovations.
Industry stakeholders are watching closely to see how the SEC’s stance on ETF approvals will shape itself and whether it will take a more progressive approach amid this growing interest. The evolution of the cryptocurrency market marks a critical turning point for investors and asset managers.
