Nasdaq has taken a significant step toward diversifying its cryptocurrency offerings by filing a proposed rule change with the U.S. Securities and Exchange Commission (SEC) on June 2, 2024. The move aims to broaden the benchmark for digital assets, integrating major altcoins like XRP, Solana (SOL), Cardano (ADA), and Stellar Lumens (XLM) into the Nasdaq Crypto Index (NCI).
Key Changes to the Nasdaq Crypto Index
- ETF Benchmark Shift: The proposal allows the Hashdex Nasdaq Crypto Index US ETF (NCIQ) to transition from the Nasdaq Crypto US Settlement Price Index (NCIUS) to the more comprehensive NCI.
- New Altcoin Additions: The updated NCIUS now includes XRP, SOL, ADA, and XLM, alongside Bitcoin (BTC) and Ethereum (ETH), better reflecting the broader crypto market.
- Current Limitations: Due to SEC regulations, the Hashdex ETF currently holds only BTC and ETH, creating a potential tracking error risk since the index tracks six assets.
Implications of SEC Approval
Expanded Investment Options: If approved, the ETF could invest in all nine NCI constituents:
- BTC, ETH, XRP, SOL, ADA, XLM, Chainlink (LINK), Litecoin (LTC), and Uniswap (UNI).
- Diversification Benefits: Approval would enable greater flexibility for U.S.-listed crypto ETFs, aligning them with global market trends.
- Deadline: The SEC’s final decision is expected by November 2, 2025.
👉 Stay updated on crypto ETF developments
FAQs
Why did Nasdaq add XRP, SOL, ADA, and XLM to its index?
Nasdaq aims to provide a more representative benchmark of the crypto market by including high-liquidity altcoins alongside BTC and ETH.
What is the tracking error risk in the Hashdex ETF?
Since the ETF currently holds only BTC and ETH (due to SEC rules) but tracks an index of six assets, its performance may deviate slightly from the benchmark.
When will the SEC decide on the proposed changes?
A final ruling is expected by November 2, 2025. Approval could pave the way for more diversified crypto ETFs in the U.S.
Final Thoughts
This expansion signals growing institutional recognition of altcoins and could accelerate mainstream adoption. Investors should monitor SEC updates and consider the long-term implications of a diversified crypto index.