Cyber Hornet Files for Hybrid S&P 500 and Crypto Futures ETFs for Ether, Solana, and XRP

Executive Summary

Cyber Hornet Trust has submitted applications to the U.S. Securities and Exchange Commission (SEC) for three new Exchange Traded Funds (ETFs). These proposed ETFs are designed as hybrid products, allocating 75% of their portfolios to the S&P 500 Index and 25% to futures contracts for Ether, XRP, and Solana, or spot holdings where applicable. The applications follow the firm's successful Bitcoin 75/25 fund and leverage recent regulatory frameworks to integrate digital assets into traditional investment vehicles.

The Event in Detail

On September 26, Cyber Hornet Trust filed with the SEC for the Cyber Hornet S&P 500 and Ethereum 75/25 Strategy ETF (EEE), Cyber Hornet S&P 500 and Solana 75/25 Strategy ETF (SSS), and Cyber Hornet S&P 500 and XRP 75/25 Strategy ETF (XXX). Each fund proposes a 75/25 allocation, with 75% dedicated to companies within the S&P 500 and the remaining 25% to its respective digital asset, primarily through futures markets. For XRP, both spot holdings and futures contracts will be utilized, while Ethereum and Solana exposure will be managed via futures and index tracking. The annual management fee for each ETF is set at 0.95%. Monthly rebalancing is planned, with provisions for more frequent adjustments during periods of heightened market volatility.

Financial Mechanics and Product Structure

The proposed ETFs represent structured financial products designed to blend traditional equity market stability with cryptocurrency growth potential. The 75% allocation to the S&P 500 Index provides exposure to large-cap U.S. equities, aiming to anchor returns in conventional markets. The 25% allocation to digital assets (Ether, Solana, XRP) via futures contracts offers exposure to the cryptocurrency derivatives market. This structure is intended to mitigate volatility compared to direct cryptocurrency holdings, a key hurdle for broader adoption. The 0.95% management fee aligns with similar hybrid or specialized ETF products. The monthly rebalancing mechanism is a critical component for maintaining the target asset allocation and managing market fluctuations. The use of futures for Ether and Solana, and both spot and futures for XRP, indicates a tailored approach to gain exposure within regulatory confines.

Business Strategy and Market Positioning

Cyber Hornet's strategy with these new filings builds upon its prior success with a Bitcoin 75/25 fund, which reportedly delivered a 39% return in 2024. This expansion signals a firm belief in the viability of combining traditional equity exposure with diversified digital asset allocations. The company positions these ETFs to appeal to investors seeking a middle ground between the resilience of large-cap U.S. equities and the growth potential of digital assets, without full direct exposure to cryptocurrency volatility. This approach mirrors a broader industry trend of integrating cryptocurrencies into traditional portfolios and leverages the SEC's Generic ETF Listing Standard, introduced earlier in 2025, which has streamlined the regulatory process for innovative products. This policy shift encourages firms like Cyber Hornet to bridge Wall Street and Web3, expanding their product offerings to meet evolving investor demand.

Broader Market Implications

The introduction of these hybrid ETFs could have several implications for the broader Web3 ecosystem and investor sentiment. If approved, these products could facilitate significant capital flow from traditional finance into the cryptocurrency derivatives market, potentially increasing market liquidity and mainstream acceptance for Ether, XRP, and Solana. This move further validates digital assets as viable portfolio components rather than merely speculative instruments. It also underscores the accelerating trend of institutional integration into the crypto space, where institutional investors now account for over 60% of crypto market activity. The success of these ETFs, however, depends on SEC approval, which could spur a wave of similar products or slow momentum if approvals are delayed or rejected. The structure aims to provide a diversified approach to digital assets, potentially attracting a new demographic of investors hesitant to engage with direct crypto holdings due to volatility or regulatory uncertainty. This development could reshape liquidity and market structure, mirroring traditional finance with volatility-hedging instruments and in-kind ETF mechanisms.