Key Expansion of Nasdaq Crypto Index
Nasdaq has submitted a rule change application to the U.S. Securities and Exchange Commission (SEC) to include XRP, Solana (SOL), Cardano (ADA), and Stellar Lumens (XLM) in its Nasdaq Crypto Index (NCI). This pivotal move aims to expand the tracking benchmark for the Hashdex Nasdaq Crypto Index ETF (NCIQ) from the current Nasdaq Crypto US Settlement Price Index (NCIUS) to a broader index covering nine cryptocurrencies.
Current Index Composition and Limitations
The existing NCI index includes:
- Bitcoin (BTC)
- Ethereum (ETH)
- And seven other cryptocurrencies
However, due to SEC regulations, the ETF is currently restricted to holding only BTC and ETH, creating potential tracking errors. The proposed expansion would allow the ETF to invest in all index components, aligning its holdings with the benchmark.
👉 Explore how crypto indices are reshaping ETF investments
Implications of the Proposed Change
- Reduced Tracking Error: Full alignment between the ETF and its benchmark.
- Regulatory Progress: Signals potential SEC openness to diversified crypto ETFs.
- Market Impact: Could catalyze broader adoption of altcoin-based financial products.
Timeline for Decision
The SEC is expected to rule on the application by November 2, 2025. Approval would mark a milestone in the evolution of U.S. cryptocurrency ETFs.
FAQs
Why is Nasdaq expanding its crypto index?
To provide a more comprehensive market representation and enable ETFs like NCIQ to mirror a diversified basket of cryptocurrencies accurately.
Which new cryptocurrencies are being added?
XRP, SOL, ADA, and XLM—four major altcoins with substantial market capitalization.
How will this affect existing ETF investors?
Reduced tracking error and exposure to a wider range of crypto assets may enhance long-term performance.
👉 Discover the future of crypto index investing
Conclusion
This proposal underscores Nasdaq’s commitment to advancing crypto market infrastructure. If approved, it could set a precedent for future multi-asset crypto ETFs, fostering greater institutional participation.
Keywords: Nasdaq Crypto Index, XRP, SOL, ADA, XLM, SEC approval, cryptocurrency ETF, Hashdex, tracking error
Note: This article does not constitute investment advice.
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