Financial advisors looking to diversify client portfolios with cryptocurrencies—while remaining connected to traditional equities—might soon have a new option to consider.
On September 26, asset manager Cyber Hornet filed applications with the US Securities and Exchange Commission (SEC) for three crypto-linked exchange-traded funds (ETFs). Each fund aims to combine exposure to the S&P 500 Index with Ethereum (ETH), Solana (SOL), and XRP.
How The Funds Fuse S&P 500 With Ethereum, Solana, XRP
According to the filing, each fund will allocate 75% of its portfolio to companies in the S&P 500, with the remaining 25% directed towards its respective digital asset or its associated futures market.
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Cyber Hornet has proposed ticker symbols EEE for Ethereum, SSS for Solana, and XXX for XRP, with each fund imposing a 0.95% management fee.
Market analysts suggest that the Cyber Hornet funds are designed to provide investors with a balance between the stability of large-cap US equities and the growth potential of digital assets.
They believe this structure allows investors to benefit from crypto’s upside while still being grounded in traditional markets. This approach signifies a growing acknowledgment of digital currencies as legitimate components of investment portfolios, rather than mere speculative ventures.
Cyber Hornet’s initiative builds on a previous triumph with a Bitcoin 75/25 fund, which yielded a 39% return in 2024, ranking among Morningstar’s top performers in the Large-Blend category.
This success may support the case for extending the strategy to include other tokens like ETH, SOL, and XRP. Importantly, interest in diversified crypto exposure has significantly increased over the past year, bolstering the argument for broader adoption.
These filings come at a time when the regulatory environment is becoming more favorable. The SEC’s Generic ETF Listing Standard, approved earlier this year, has streamlined the process for issuers aiming to introduce innovative products.
This shift in policy has triggered a surge of experimentation, motivating firms like Cyber Hornet to merge Wall Street with Web3. Consequently, they are creating portfolios that integrate digital assets and equities within a unified investment model.
