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- Nasdaq aims to expand its digital asset index to include more cryptocurrencies.
- The Hashdex ETF may gain access to invest in nine different crypto assets.
- The SEC’s decision on the proposal is expected by November 2, 2025.
On June 2, 2024, Nasdaq submitted a proposal to the U.S. Securities and Exchange Commission. It requested a change that would allow the inclusion of four more crypto assets in its benchmark index. These are XRP, Solana (SOL), Cardano (ADA), and Stellar Lumens (XLM).
If this amendment is approved, it would pertain to the Nasdaq Crypto Index (NCI), which presently holds Bitcoin (BTC), Ethereum (ETH), Chainlink (LINK), Litecoin (LTC), and Uniswap (UNI). This basically reflects Nasdaq’s intention to develop an expanded perspective on the cryptocurrency market.
Inclusion of these trending altcoins makes the index more accurate in reflecting the dynamics of today’s investor interest. The suggested change is in line with emerging market trends, as investors are looking for exposure beyond just Bitcoin and Ethereum.
Rule Change Could Reduce ETF Mismatch
The proposal also includes the Hashdex Nasdaq Crypto Index US ETF, which goes by the acronym NCIQ. At present, this ETF tracks a narrower benchmark, the Nasdaq Crypto US Settlement Price Index, or NCIUS. That index now comprises six assets; however, the ETF holds only Bitcoin and Ethereum because of regulatory restrictions.
This creates a gap. The ETF does not fully replicate its index. Hashdex manages this with a sampling strategy, but tracking error is always a risk. Therefore, investors may not receive the full performance payoff from the benchmark. With the switch to the broader NCI, the ETF would have a chance to realign.
If the SEC were to approve the rule change, the ETF could directly invest in all nine cryptocurrencies that are listed in the NCI. This would give investors better exposure and recline tracking mismatch.
SEC Decision on Crypto ETFs Nears
The SEC will rule on the proposal by November 2, 2025. If approved, it could change the crypto-based ETFs market in America. It would permit more flexibility and also allow diversified digital asset collections within regulated products.
Market participants watch this closely. A positive outcome could inspire other ETF marketers to explore marketing similar products. It would also reflect further regulatory comfort with a broader spectrum of cryptocurrency assets.
The inclusion of altcoins like XRP and SOL in a major Nasdaq-backed index reflects increased confidence in their long-term sustainability. If passed, the rule would likely attract more institutional investors to the crypto market and further make digital assets appealing to mainstream finance. The proposed rule would change the terrain and the regulatory framework around cryptocurrency-based ETFs in the United States.
Related Reading: Bitcoin Gains Appeal as Investors Move Away from U.S. Markets
