Nasdaq has filed a proposed rule change with the U.S. Securities and Exchange Commission (SEC), aiming to significantly expand the scope of its digital asset benchmark index.
The proposal, filed on June 2, 2024, seeks to include four additional cryptocurrencies—XRP, Solana (SOL), Stellar (XLM), and Cardano (ADA)—in the Nasdaq Crypto Index (NCI).
These assets are currently excluded from the narrower NCIUS index, which the Hashdex Nasdaq Crypto Index ETF (NCIQ) currently tracks.
SEC Approval Could Let NCIQ ETF Expand Holdings to Nine Cryptocurrencies
If the SEC approves the rule change, NCIQ would be allowed to shift from tracking the NCIUS index to the broader NCI, enabling it to invest in a total of nine cryptocurrencies instead of the limited subset it currently holds.
This shift would enhance diversification and provide investors with broader exposure to the digital asset market, particularly to high-profile tokens like XRP and Solana, which have significant market capitalizations and attract institutional interest.
The move reflects Nasdaq’s growing commitment to legitimizing and expanding access to digital assets through regulated financial products.
It also signals increased confidence in the regulatory environment surrounding these altcoins, especially XRP, which has faced ongoing scrutiny from the SEC in recent years.
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SEC Decision on Nasdaq Crypto ETF Proposal Due by November 2, 2025
The SEC has until November 2, 2025, to issue a final decision on the proposal.
If approved, the change could mark a major milestone for the integration of cryptocurrencies into mainstream investment vehicles, potentially increasing institutional adoption and further blurring the lines between traditional finance and the digital asset ecosystem.
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NCIQ ETF Currently Limited to BTC and ETH Under Existing SEC Rules
Currently, the Hashdex Nasdaq Crypto Index ETF (NCIQ) holds only Bitcoin (BTC) and Ethereum (ETH), due to existing SEC regulations that limit U.S.-listed ETFs to investing in these two digital assets.
However, the ETF tracks the broader Nasdaq Crypto Index (NCI), which includes six cryptocurrencies.
This mismatch creates what is known as a “tracking error”—a risk that the ETF’s performance may not accurately reflect the index it is designed to follow.
To minimize this discrepancy, Hashdex employs a sampling methodology, aiming to approximate the index’s performance without directly holding all of its components.
While this helps reduce the tracking error, it doesn’t fully eliminate the risk, and complete alignment with the index remains unattainable under current rules.
The NCI currently consists of nine cryptocurrencies: BTC, ETH, XRP, Solana (SOL), Cardano (ADA), Stellar Lumens (XLM), Chainlink (LINK), Litecoin (LTC), and Uniswap (UNI).
If the SEC approves Nasdaq’s proposed rule change, the Hashdex ETF would be able to invest directly in all nine assets, significantly reducing tracking error and improving portfolio diversification.
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