The asset management firm Hashdex has submitted an amendment to the U.S. Securities and Exchange Commission to incorporate Litecoin into its Nasdaq Crypto Index US ETF.
The aim of the Nasdaq Crypto Index US ETF is to reflect the prevailing trends in the cryptocurrency market by offering a diversified investment in various digital assets.
By including Litecoin (LTC), Hashdex intends to broaden the ETF’s asset portfolio, which could enhance its diversification and appeal to investors interested in the crypto landscape.
An exchange-traded fund (ETF) is an investment vehicle that holds a variety of assets, including stocks, bonds, or cryptocurrencies. These funds are traded on stock exchanges, allowing investors to buy and sell shares throughout the trading day, much like individual stocks.
This format offers diversification, as it enables investors to gain exposure to multiple assets through a single investment.
Hashdex has recently obtained approval from Brazil’s Securities and Exchange Commission to introduce the world’s first XRP (XRP) spot ETF on the B3 stock exchange.
This move comes at a time when several U.S. firms, including Grayscale and WisdomTree, are seeking SEC approval for comparable products.
Launched in 2011, Litecoin is a peer-to-peer cryptocurrency that facilitates instant, low-cost transactions globally. It functions on an open-source, decentralized payment network devoid of any central governing authority.