Cyber Hornet seeks SEC nod for S&P 500 ETFs tied to XRP, Ethereum, Solana

Cyber Hornet has filed with the SEC to launch a unique ETF that combines exposure to the S&P 500 with XRP. If approved, the fund will be known under the ticker “XXX”. It is meant to provide investors returns that closely correspond to an index of the S&P 500 and another tracking futures contracts for XRP – called the S&P XRP Futures 75/25 Blend Index.

In its structure, 75% of the Cyber Hornet ETF portfolio will be allocated to S&P 500 stocks, while the remaining 25% goes into XRP futures on the Chicago Mercantile Exchange. The fund can also hold XRP directly or use ETPs to balance its exposure.

Cyber Hornet listed two other similar offerings in its SEC filing

Cyber Hornet also has two more ETFs in the works for Ethereum and Solana. The Ethereum version will be listed as “EEE,” and the Solana one as “SSS.” All of the funds have similar 75/25 models, mixing shares with futures contracts. Ethereum exposure comes from CME Ether futures and direct purchases. Meanwhile, the fund’s Solana share will track the S&P Solana Futures Index. This move coincides with growing investor interest — REX-Osprey’s Solana staking ETF just set a new asset record. 

Investors will pay a 0.95% management fee annually for the Cyber Hornet ETFs, but there are no shareholder trading fees. The SEC calculates that $10,000 invested would result in about $100 in fees after one year and $312 after three.

The ETFs will also rebalance every month to keep the 75/25 split intact, though Cyber Hornet may adjust more frequently if markets get volatile.

Moreover, the funds may trade slightly higher or lower than their underlying value, just like most ETFs. The ETFs are also set to trade on Nasdaq if approved. Individual investors will trade shares on the open market, while authorized participants manage 25,000-share creation and redemption units.

The filings show Cyber Hornet’s push to link stock market benchmarks with crypto diversity. If launched, they’d be the first funds to unite XRP, ETH, and SOL with S&P 500 performance.

The US SEC is investigating trading activity before companies announced ETF strategies

The US SEC is still working with the Financial Industry Regulatory Authority (FINRA) to look into potentially abnormal trades made right before companies unveiled treasury management and ETF strategies. 

Investigators are probing whether trades were made using privileged information, a potential case of insider trading or manipulation. Significant price jumps in the hours triggered the inquiry before companies revealed treasury and ETF strategies.

Analysts say the SEC is paying closer attention to strange trading patterns than ever. As firms adopt ETFs and digital assets for treasury use, oversight is tightening to safeguard market order. The probe remains in its early phase and hasn’t resulted in enforcement yet, but it signals a tougher stance on potential abuse.

The inquiry builds on the SEC’s ongoing look at ETF structures and the quality of corporate transparency. Regulators have long been wary of sudden ETF volume jumps that don’t align with available information.

Still, the SEC recently cleared the path for a wave of new crypto-related exchange-traded funds. The agency approved generic listing standards for commodity-based exchange-traded products, allowing crypto funds to move through the approval process much faster.

With these standards now applied across Nasdaq, Cboe BZX, and NYSE Arca, issuers no longer need individual approvals under Section 19(b) of the Securities Exchange Act 1934.

Previously, launching a spot crypto fund required a lengthy application, public comment, and SEC review. This is why nearly all existing crypto ETFs have focused on Bitcoin and Ether—the largest digital assets by market capitalization.

The new approach is intended to speed up launch timelines, slash administrative costs, and make more digital assets available to investors in an ETF structure.

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