The Nasdaq has significantly expanded its digital asset footprint by updating its flagship crypto index to include four major cryptocurrencies: XRP, Stellar (XLM), Solana (SOL), and Cardano (ADA). This strategic enhancement to the Nasdaq Crypto US Index (NCIUS) reflects a growing institutional recognition of the broader cryptocurrency market beyond just Bitcoin and Ethereum.
The NCIUS is designed to track the performance of a substantial segment of the digital asset economy. According to the Nasdaq Global Indexes, the index aims to provide a reliable benchmark for investors seeking exposure to the evolving crypto landscape. Initially limited to Bitcoin (BTC) and Ethereum (ETH), the index now includes six assets—marking a pivotal shift toward diversification in regulated financial products.
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Expanding Institutional Access to Digital Assets
The inclusion of XRP, XLM, SOL, and ADA underscores Nasdaq’s commitment to reflecting real market dynamics. These assets represent key players across various blockchain use cases—ranging from cross-border payments (XRP, XLM) to high-performance smart contract platforms (SOL, ADA). Their addition signals growing confidence in their long-term viability and regulatory clarity.
This expansion didn’t occur in isolation. The asset management firm Hashdex recently highlighted the index change in a filing with the U.S. Securities and Exchange Commission (SEC). Hashdex offers an exchange-traded fund (ETF) that tracks the NCIUS, but due to current SEC regulations, it can only hold BTC and ETH—despite the index now covering six assets.
To bridge this gap, Hashdex has adopted a sampling strategy, adjusting its BTC and ETH allocations to mimic the overall index performance as closely as possible. While this approach allows for partial alignment with the NCIUS, the firm acknowledges a heightened risk of tracking error—the divergence between the ETF’s performance and that of the full index.
This limitation highlights a broader challenge in the U.S. regulatory environment: even as indexes evolve to reflect market reality, product offerings often lag due to compliance constraints.
A Broader Vision: The Nasdaq Crypto Index (NCI)
Looking ahead, there’s a clear pathway toward full alignment between indexes and investment products. In March, Nasdaq submitted a rule change proposal to the SEC that would allow Hashdex’s ETF to switch its benchmark from the NCIUS to the more comprehensive Nasdaq Crypto Index (NCI).
The NCI includes not only BTC, ETH, XRP, XLM, SOL, and ADA but also three additional assets:
- Litecoin (LTC)
- Uniswap (UNI)
- Chainlink (LINK)
These nine assets collectively represent a diversified cross-section of the crypto ecosystem—from foundational layer-one blockchains to decentralized finance (DeFi) leaders. The NCI’s methodology weights components based on market capitalization, liquidity, and trading activity, ensuring robustness and transparency.
The SEC is currently reviewing the proposed rule change, with a decision expected by November 2025. If approved, it would mark a major milestone in bringing diversified crypto ETFs to U.S. investors—offering exposure to multiple blue-chip digital assets under a single, regulated product.
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Why This Matters for Investors
For retail and institutional investors alike, Nasdaq’s move represents more than just a technical update—it’s a signal of maturation in the digital asset space.
Key Benefits of a Diversified Crypto Index:
- Reduced Concentration Risk: Relying solely on BTC and ETH exposes portfolios to sector-specific volatility. Adding established altcoins improves risk distribution.
- Broader Market Exposure: Assets like Solana and Cardano have demonstrated strong developer activity and real-world adoption, offering growth potential beyond the top two.
- Institutional Validation: Nasdaq’s involvement lends credibility and encourages further financial product innovation.
Moreover, the integration of these assets into a regulated index framework may help accelerate regulatory clarity for each token—particularly for XRP and XLM, which have faced legal scrutiny in the past.
Frequently Asked Questions
Q: What is the Nasdaq Crypto US Index (NCIUS)?
A: The NCIUS is a benchmark index designed to measure the performance of major cryptocurrencies traded in the U.S., currently including Bitcoin, Ethereum, XRP, XLM, SOL, and ADA.
Q: Can U.S. investors buy an ETF that tracks all six assets in the NCIUS?
A: Not yet. Current regulatory restrictions limit ETFs like Hashdex’s to holding only BTC and ETH, even if they track a broader index.
Q: What is tracking error, and why does it matter?
A: Tracking error refers to how closely an investment product follows its benchmark index. When an ETF can’t hold all index components, its performance may diverge—increasing risk for investors.
Q: What’s the difference between NCIUS and NCI?
A: The NCIUS focuses on U.S.-eligible assets and currently includes six cryptos. The NCI is broader, including nine assets such as LTC, UNI, and LINK, and serves as a global benchmark.
Q: When will the SEC decide on Nasdaq’s proposed rule change?
A: The SEC is expected to make a decision by November 2025 regarding whether to allow ETFs to use the more comprehensive NCI as their benchmark.
Q: Does adding these coins guarantee price increases?
A: No. Index inclusion reflects recognition and demand from financial institutions but doesn’t directly cause price movements. Long-term value depends on adoption, technology, and market conditions.
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The Road Ahead
Nasdaq’s decision to broaden its crypto index lineup is more than symbolic—it’s a strategic step toward integrating digital assets into mainstream finance. As regulatory frameworks evolve and investor demand grows, we’re likely to see more diversified crypto products enter the market.
For now, the focus remains on the SEC’s upcoming decision. Approval could unlock a new wave of innovation, enabling ETFs that truly reflect the breadth of today’s crypto economy.
In the meantime, investors should stay informed, assess risks carefully, and consider how exposure to major altcoins might fit within their overall strategy—all within compliant and transparent financial vehicles.
As one of the most trusted names in financial markets, Nasdaq’s endorsement adds weight to the argument that digital assets are not a fringe trend but a core component of 21st-century finance.