Nasdaq has broadened its crypto index by including XRP, Solana (SOL), Cardano (ADA), and Stellar Lumens (XLM), enhancing market representation for the Hashdex Nasdaq Crypto Index US ETF. This strategic update reflects the evolving digital asset landscape and aims to provide investors with a more diversified benchmark.
Key Takeaways
- Four altcoins added: XRP, SOL, ADA, and XLM join Bitcoin (BTC) and Ethereum (ETH) in the Nasdaq Crypto Index (NCI).
- ETF flexibility: Pending SEC approval, the Hashdex ETF could expand beyond BTC/ETH holdings.
- Regulatory milestone: Approval would mark progress toward altcoin inclusion in regulated U.S. crypto products.
Nasdaq’s Crypto Index Expansion: Details & Implications
Strategic Index Update
On June 2, 2024, Nasdaq filed a proposed rule change with the SEC to transition from the NCIUS (limited to BTC/ETH) to the NCI, which now includes nine cryptocurrencies:
- Bitcoin (BTC)
- Ethereum (ETH)
- XRP
- Solana (SOL)
- Cardano (ADA)
- Stellar Lumens (XLM)
- (Three others undisclosed).
This shift aims to better capture market diversity and support ETF benchmarking.
Impact on the Hashdex ETF
- Current limitations: The ETF tracks only BTC/ETH due to SEC rules, creating tracking error risks.
- Future potential: Approval would allow direct investment in all nine index assets, improving portfolio diversification and reducing mismatches.
👉 Why ETF diversification matters
Regulatory Outlook & Market Impact
SEC Approval Timeline
- Deadline: November 2, 2025.
- Significance: Approval could set a precedent for altcoin-backed ETFs, fostering institutional crypto adoption.
Industry Reactions
- Positive sentiment: Experts highlight growing mainstream acceptance of altcoins.
- Challenges: Regulatory clarity remains critical for full implementation.
FAQs
Q: Why did Nasdaq add these altcoins?
A: To reflect market growth and offer a more comprehensive benchmark for ETFs.
Q: What’s the SEC’s role?
A: The SEC must approve Nasdaq’s rule change before the ETF can hold additional assets.
Q: How might this affect crypto prices?
A: Inclusion could boost liquidity and demand for XRP, SOL, ADA, and XLM.
Conclusion
Nasdaq’s crypto index expansion signals progress toward regulated altcoin investment in the U.S. While hurdles remain, potential SEC approval could redefine ETF diversification and investor access to emerging crypto assets.