Regulatory-Backed Crypto Adoption Gains Momentum: Hybrid ETFs Connect Conventional Finance with Digital Assets

Cyber Hornet has submitted applications to the U.S. Securities and Exchange Commission (SEC) for three new hybrid exchange-traded funds (ETFs) that combine investments in the S&P 500 Index with

, (ETH), and (SOL). Each ETF will dedicate 75% of its assets to major U.S. stocks, while the remaining 25% will be invested in the corresponding cryptocurrency or related futures contracts. Filed on September 26, 2025, these funds are designed to offer investors a balanced exposure to digital assets while grounding returns in established equity markets. The proposed trading symbols are EEE for Ethereum, SSS for Solana, and XXX for XRP, each with an annual management fee of 0.95% title1 [ 1 ].

The design of these ETFs follows the model of

Hornet’s previous 75/25 Bitcoin ETF, which achieved a 39% gain in 2024. By extending this approach to ETH, , and XRP, the company is responding to increasing interest in crypto investment products that aim to limit risk while still offering growth opportunities. The funds will be rebalanced every month, with the option to adjust more frequently during periods of market instability. Exposure to XRP will involve both direct holdings and futures, while Ethereum and Solana allocations will be managed through futures and index-based strategies title2 [ 2 ]. This strategy reflects a broader movement in the industry to incorporate cryptocurrencies into conventional investment portfolios, as demonstrated by recent approvals of XRP and Solana ETFs from other providers.

The SEC’s Generic ETF Listing Standard, introduced earlier in 2025, has made it easier for innovative products like these hybrid ETFs to gain regulatory approval. This regulatory update has lowered entry barriers for issuers, speeding up the approval process and encouraging new developments at the intersection of traditional finance and blockchain. Cyber Hornet is among the first to take advantage of this new framework, which could help the funds reach the market more quickly. The company’s earlier success with its Bitcoin ETF highlights the effectiveness of these strategies, as both institutional and retail investors increasingly look for regulated ways to access crypto markets title4 [ 3 ].

Industry experts believe these ETFs could appeal to a broader range of investors. By combining the stability of the S&P 500 with the potential of cryptocurrencies, the funds are designed for those who are cautious about fully committing to digital assets but still want to benefit from their growth. For instance, investing $10,000 in the XXX ETF would result in $100 in annual fees, with no extra transaction charges for shareholders title2 [ 4 ]. If approved, the ETFs will be listed on Nasdaq, making it possible for retail investors to gain crypto exposure through standard brokerage accounts. This increased accessibility could also boost institutional involvement, especially in regions where XRP and Solana face regulatory challenges, by providing a compliant entry point title5 [ 5 ].

Analysts point out that this hybrid approach helps address common obstacles to crypto adoption, such as price swings and regulatory ambiguity. By limiting crypto investments to 25% of the portfolio, these ETFs help reduce potential losses compared to direct crypto ownership. However, the ultimate success of these funds will depend on broader market factors, including the SEC’s upcoming decision on other XRP ETFs in October 2025. Approval could trigger a surge of similar offerings, while setbacks might slow progress. For now, Cyber Hornet’s filings represent a strategic move toward regulated crypto products, reflecting growing confidence in the sector’s evolution title6 [ 6 ].