SEC's Broad ETF Regulations Spark Crypto Surge, Easing Entry for Alternative Coins

The U.S. Securities and Exchange Commission (SEC) has granted approval for the Hashdex Nasdaq Crypto Index ETF (NASDAQ: NCIQ) to broaden its holdings, now including

, (SOL), and (XLM) in addition to (BTC) and (ETH). This move is in line with the SEC’s recently introduced generic listing rules for crypto-based exchange-traded products (ETPs), which are designed to simplify the approval process and lower regulatory barriers for fund managers. The ETF, registered as an “emerging growth company” in Delaware, now allocates 72.5% to , 14.8% to , 6.9% to XRP, 4.3% to , and 1.2% to (ADA), offering investors a broad exposure to leading digital assets.

The SEC’s revised guidelines, revealed in July 2025, remove the requirement for individual reviews of eligible crypto ETFs, cutting the approval period from as long as 270 days down to just 75 days. This regulatory change comes after extensive industry lobbying and represents a significant milestone in mainstreaming crypto investment vehicles. Steven McClurg from Canary Capital Group highlighted the increase in applications, saying, “We currently have about a dozen filings with the SEC, with more on the way,” and expects a surge of new products in the fourth quarter of 2025. Bitwise’s Teddy Fusaro shared similar optimism, noting that most applications are nearly finalized and could launch soon.

Adding XRP and SOL to the Hashdex ETF demonstrates growing institutional confidence in these cryptocurrencies. With XRP making up 6.9% and SOL 4.3% of the fund, their inclusion is notable given their previous regulatory challenges and limited direct access for investors. Experts believe this could spark additional interest in spot ETFs linked to these tokens. Kyle DaCruz from VanEck pointed out the difficulty in educating investors about lesser-known digital assets, remarking, “There will be a wave of tokens unfamiliar to many,” and that the market will have only a short time to adapt.

The SEC’s generic listing standards apply to ETFs that satisfy one of three conditions: (1) the asset has traded on a regulated exchange or has CFTC-regulated futures for at least six months, (2) another ETF holds at least 40% direct exposure to the asset, or (3) the asset has a six-month track record of trading on a regulated platform. This increased flexibility has already prompted action, with Grayscale converting its private fund into the Grayscale CoinDesk Crypto 5 ETF (GDLC.P) within two days of the SEC’s announcement. Bloomberg’s James Seyffart forecasts that over 100 crypto ETFs could debut within six to twelve months, thanks to the faster approval process.

Industry participants remain cautiously hopeful about the broader impact. The new rules lower entry barriers for firms such as Amplify ETFs, which recently submitted an application for a SOL and XRP Monthly Income ETF. Nonetheless, challenges like liquidity issues and custody risks for alternative coins persist. SEC Chair Paul Atkins stressed the agency’s commitment to encouraging innovation while safeguarding market stability, aiming to establish the U.S. as a frontrunner in digital finance.

The green light for Hashdex’s ETF is part of a wider trend toward regulatory harmonization, with the SEC also approving in-kind creation and redemption processes for crypto ETFs in August 2025. This step supports global initiatives to bring digital assets into regulated financial markets, in contrast to the slower pace seen during the Biden administration. Jonathan Groth of DGIM Law described the last quarter of 2025 as a “boom time” for crypto ETFs, with asset managers gearing up for a wave of new launches.