Cyber Hornet, a relatively new asset manager focused on digital-native investment products, has filed with the SEC to launch three exchange-traded funds that blend traditional equities with crypto exposure. 

This new product presents an innovative idea to investors. Cyber Hornet aims to combine the relative stability of the S&P 500 with the growth potential of one of the three leading altcoins in the market: ETH, XRP, and SOL. 

Each ETF follows a 75/25 allocation model. That means 75% of the fund is invested in S&P 500 stocks, while the remaining 25% goes into crypto futures. The three products are split by crypto type: XRP (ticker: XXX), Ethereum (EEE), and Solana (SSS). 

The XRP and Ethereum ETFs include direct asset holding. Meanwhile, the Solana fund will track a benchmark called the S&P Solana Futures Index, which is designed to reflect Solana’s price movements daily. 

While crypto-based ETFs are seen as an indirect venue for providing traditional investors with digital asset exposure, Cyber Hornet’s approach of mixing the S&P 500 into the product provides an even more conservative approach. 

This isn’t the first time crypto has crept into ETF territory. Hashdex recently got SEC approval for an index ETF that includes XRP and Solana. A couple of days ago, Cantor Fitzgerald backed a similar idea: a new bitcoin fund that is backed by gold, allowing it to leverage Bitcoin’s movements with the price stability of the precious metal. 

But Cyber Hornet’s approach is more direct, pairing blue-chip equities with specific crypto assets in a single wrapper. It’s a bet that investors want exposure to both sides of the market without managing separate portfolios.

Whether the SEC will approve the proposal or not remains to be seen. The Commission will have its hands full with pending applications in October, which could mean several altcoin-based ETFs entering the market over the next few weeks.

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