Nasdaq Seeks to Include Major Altcoins like XRP and SOL in Crypto Benchmark Index, Potentially Influencing Related ETFs and Expanding Regulatory Attitudes Towards More Cryptocurrencies
(Background: Nasdaq Approved by the U.S. SEC for “New AI Order Type”! Transaction Rates Significantly Increase)
(Context: Galaxy Digital Officially Listed on Nasdaq! Founder Declares: The Era of Tokenization is Coming)
The renowned Nasdaq exchange is seeking to expand its cryptocurrency index (Nasdaq Crypto Index, NCI), planning to include four highly regarded altcoins: Ripple (XRP), Solana (SOL), Stellar Lumens (XLM), and Cardano (ADA) into its digital asset benchmark index NCI. The application was submitted to the U.S. Securities and Exchange Commission (SEC) on June 2. This move not only has the potential to open a broader investment spectrum for investment tools such as the Hashdex Nasdaq Crypto Index U.S. ETF (NCIQ), but is also interpreted by the market as a pursuit for greater regulatory visibility for more digital assets within the traditional financial framework.
Why is Nasdaq Doing This?
According to the 19b-4 rule change application submitted by Nasdaq, the core goal is to transition the tracking benchmark of the Hashdex Nasdaq Crypto Index U.S. ETF (NCIQ) from the existing Nasdaq Crypto U.S. Settlement Price Index (NCIUS) to the broader Nasdaq Crypto Index (NCI). The current NCI index includes nine cryptocurrencies: Bitcoin (BTC), Ethereum (ETH), as well as XRP, SOL, ADA, XLM, Chainlink (LINK), Litecoin (LTC), and Uniswap (UNI).
Although the NCIUS index has been updated to include six assets, the actual holdings of the NCIQ ETF remain highly concentrated in Bitcoin and Ethereum (which together account for over 87%). This allocation ratio exposes the ETF to tracking error risks, meaning that the ETF’s performance may deviate from that of its tracking index.
Nasdaq hopes that by incorporating a wider variety of crypto assets, the NCIQ ETF can more accurately reflect the NCI index, providing investors with a more authentic representation of the cryptocurrency market.
Awaiting SEC Approval
The approval of this proposal hinges on the review by the U.S. Securities and Exchange Commission (SEC). By submitting the 19b-4 document to apply for new products or rule changes, the SEC’s deadline for making a final decision on this proposal will be on November 2, 2025. However, the market generally believes that passage is not difficult.
