TLDR
- Cyber Hornet’s ETF combines 75% S&P 500 stocks and 25% XRP futures.
- Three ETFs proposed, including XRP, Ethereum, and Solana with S&P 500.
- Each ETF has a 0.95% annual fee, with no transaction costs for shareholders.
- Cyber Hornet aims to integrate major cryptocurrencies with traditional equities.
Cyber Hornet, a financial services firm, has submitted a filing to the U.S. Securities and Exchange Commission (SEC) seeking approval for a new exchange-traded fund (ETF). This fund will combine traditional S&P 500 stocks with exposure to digital assets like XRP, Ethereum, and Solana. The filing marks a step towards merging traditional financial markets with cryptocurrency assets in a structured investment product.
Cyber Hornet’s New ETF Structure
Cyber Hornet has proposed three separate ETFs, each blending S&P 500 stocks with different cryptocurrencies. The first product, named the Cyber Hornet S&P 500 and XRP 75/25 Strategy ETF, will allocate 75% of its assets to S&P 500 stocks and 25% to XRP futures traded on the Chicago Mercantile Exchange. The ETF will also hold direct XRP investments and other products tied to the asset.
In addition to XRP, Cyber Hornet plans to offer two other ETFs: the Cyber Hornet S&P 500 and Ethereum 75/25 Strategy ETF, and the Cyber Hornet S&P 500 and Solana 75/25 Strategy ETF. The Ethereum-focused ETF will gain exposure to the digital asset through Ether futures contracts on the CME, as well as direct holdings of Ethereum. For Solana, the fund will track the S&P Solana Futures Index.
Details on ETF Structure and Fees
Each of the three proposed ETFs will have an annual management fee of 0.95%. These funds will also feature no shareholder transaction fees, making them potentially more attractive for long-term investors. According to estimates from the SEC, a $10,000 investment would incur approximately $100 in fees after one year, and $312 in fees after three years.
The ETFs will rebalance monthly to maintain the 75/25 asset allocation, though Cyber Hornet has stated it reserves the right to adjust the portfolio more frequently during periods of heightened market volatility.
Market and Regulatory Context
The filing is part of a broader trend that seeks to integrate cryptocurrencies with traditional financial markets. With the SEC’s recent approval of Hashdex’s index ETF to include XRP and Solana, there is growing interest in how cryptocurrencies can be incorporated into regulated investment vehicles. The launch of these ETFs would represent the first products of their kind to combine major cryptocurrencies like XRP, Ethereum, and Solana with the S&P 500, a key benchmark for traditional equities.
If approved by the SEC, the Cyber Hornet ETFs will trade on the Nasdaq, where they can be bought and sold just like other listed stocks. The shares will be available for retail investors to trade in the open market. However, only authorized participants can directly create or redeem shares in 25,000-share blocks.
Broader Industry Movement
These proposed ETFs highlight an increasing effort to bridge the gap between traditional stock market investments and the cryptocurrency market. The combination of established financial instruments like the S&P 500 with digital assets such as XRP, Ethereum, and Solana reflects a growing acceptance of cryptocurrencies as part of the mainstream financial landscape.
This move also aligns with the ongoing trend of increasing interest in digital assets beyond Bitcoin. As more investment products targeting cryptocurrencies gain traction, firms like Cyber Hornet continue to explore innovative ways to offer exposure to both established financial markets and emerging digital assets.
With the SEC’s approval still pending, the launch of these ETFs could mark a notable development in the ongoing evolution of cryptocurrency-based investment products. Should the SEC approve the filing, it could further encourage other financial institutions to explore similar strategies combining digital currencies and traditional assets.
