Hashdex Seeks SEC Approval to Add Litecoin to Crypto Index ETF

2025年03月18日

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)

How does Litecoin’s classification as a commodity impact its chances of ETF approval?

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.

What are the risks of a Litecoin ETF?

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.

Could a Litecoin ETF lead to more altcoin ETFs?

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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North Korea Surpasses El Salvador in Bitcoin Holdings, Fueled by Bybit Hack

2025年03月18日

Key Takeaways:

  • North Korea’s Bitcoin holdings now surpass those of El Salvador and Bhutan.
  • The Lazarus Group, linked to North Korea, converted assets from the Bybit hack into Bitcoin.
  • These cyber activities contribute to North Korea’s funding of its weapons programs.

North Korea surpassed El Salvador and Bhutan in Bitcoin (BTC) holdings after the Lazarus hacker group converted stolen assets from the Bybit hack into Bitcoin, according to Arkham data as of March 17.

Arkham data shows that Lazarus, responsible for the record $1.5 billion Bybit hack, converted the stolen Ether to 13,518 Bitcoin (worth $1.14 billion).

The group also holds nearly 13,791 Ether and 5,022 Binance Coin (BNB), valued at $26.68 million and $3.16 million, respectively.

Lazarus Group’s crypto holdings. Source: Arkham

These holdings position North Korea ahead of Bhutan’s 10,635 mined Bitcoin and El Salvador’s 6,118 Bitcoin.

Bitcoin Treasuries data places the US, China, the UK, and Ukraine ahead, with reserves of 198,109, 190,000, 61,245, and 46,351 BTC.

In terms of Bitcoin holdings, North Korea is the fifth largest country in the world. / Source: Bitcoin Treasuries

The Scale of North Korean Cybercrime

North Korea’s vast wealth in cryptocurrencies stems from years of cyberattacks and crypto heists, including the 2024 DMM Bitcoin exploit in Japan and the 2022 Ronin Network breach, where Lazarus stole $308 million and over $600 million, respectively.

The Lazarus Group refers to a large subset of state-sponsored cyber activities of the Democratic People’s Republic of Korea (DPRK), operating as an integral wing of North Korea’s central foreign intelligence agency, the Reconnaissance General Bureau (RGB).

Chainalysis’ Crypto Crime 2025 Report shows North Korean hackers stole $660.5 million in 2023 and $1.34 billion in 2024, marking a 102.88% year-over-year increase.

One of the most recent examples of North Korea’s expanding cyber operations is the Bybit hack.

Bybit Attack: North Korea’s Massive Crypto Theft

The dramatic increase in North Korea’s Bitcoin holdings is directly linked to the February 2025 attack on the Dubai-based cryptocurrency exchange Bybit.

The Lazarus Group organized the theft of over 400,000 Ether from Bybit’s secure multi-signature cold wallet.

Following the theft, Lazarus employed sophisticated techniques to launder the stolen Ether and convert it into Bitcoin.

The group exploited decentralized finance (DeFi) protocols like THORChain, which faced criticism for lacking strong anti-crime protections.

This allowed Lazarus to obscure the origins of the stolen funds and facilitate their conversion into Bitcoin.

This attack has consequences beyond Bybit’s financial losses.

According to the Center for Strategic & International Studies (CSIS), proceeds from cyberattacks, along with other illicit wealth generated by North Korean-funded syndicates, fund North Korea’s nuclear missile program and pose a major threat to international security.

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