In a significant development for the digital asset market, Nasdaq has formally applied to expand its cryptocurrency index to include four major digital tokens: XRP, SOL, ADA, and XLM. This move signals growing institutional recognition of the broader crypto ecosystem and could pave the way for wider investment access through regulated financial products.
On June 2, 2024, Nasdaq filed a rule change proposal under Rule 19b-4 with the U.S. Securities and Exchange Commission (SEC), seeking to amend its current digital asset benchmark index. The proposed update would allow the Hashdex Nasdaq Crypto Index US ETF (NCIQ) to transition from tracking the existing Nasdaq Crypto Index US Settlement Price (NCIUS) to the more comprehensive Nasdaq Crypto Index (NCI)—a broader benchmark that already includes nine leading cryptocurrencies.
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If approved, this change will empower the ETF to invest directly in XRP (Ripple), SOL (Solana), ADA (Cardano), and XLM (Stellar)—four assets that have demonstrated strong network activity, developer engagement, and market resilience over recent years. Currently, NCIUS is limited in scope, but the shift to NCI would align the ETF with a more diversified and representative index, reflecting real-time market dynamics across multiple blockchain platforms.
The SEC has set a final decision deadline of November 2, 2025, giving regulators nearly 17 months to evaluate the implications of this expansion. The approval process will likely focus on market fairness, investor protection, and whether these tokens meet regulatory standards as non-security digital assets.
Why This Matters for Investors
The potential inclusion of XRP, SOL, ADA, and XLM into a Nasdaq-backed index is more than just a technical update—it’s a vote of confidence in their long-term viability. For retail and institutional investors alike, such developments reduce entry barriers by offering exposure through regulated exchange-traded funds rather than direct crypto trading.
ETFs like NCIQ provide several advantages:
- Regulatory oversight enhances transparency and trust.
- Simplified tax reporting compared to direct crypto holdings.
- Access via traditional brokerage accounts without needing wallets or exchanges.
Moreover, being part of a recognized index often leads to increased liquidity and price stability due to passive fund inflows. Historically, assets added to major indices—such as Bitcoin’s inclusion in various ETFs in 2024—have seen measurable boosts in trading volume and market capitalization.
Understanding the Nasdaq Crypto Index (NCI)
The Nasdaq Crypto Index (NCI) is designed to track the performance of a diversified basket of large-cap digital assets traded globally. It uses a modified market-cap weighting methodology with safeguards against excessive concentration in any single asset. The index rebalances quarterly and applies strict eligibility criteria, including minimum trading volume, exchange availability, and security audits.
Currently, NCI tracks nine cryptocurrencies. While the exact composition isn’t fully disclosed in public filings, it is known to include Bitcoin (BTC) and Ethereum (ETH), along with other top-tier assets based on objective metrics.
By shifting from NCIUS to NCI, the Hashdex ETF would gain flexibility to follow a more dynamic and globally representative benchmark—one that reflects innovation beyond just the top two digital currencies.
Key Cryptocurrencies in Focus
Let’s take a closer look at the four tokens proposed for inclusion:
XRP (Ripple)
XRP has long been at the center of regulatory scrutiny due to an ongoing legal battle with the SEC. However, recent court rulings have clarified that XRP can be sold legally in certain contexts, particularly when not involving direct sales by Ripple Labs. Its use case in cross-border payments remains compelling for financial institutions seeking faster settlement times.
SOL (Solana)
Solana has emerged as one of the most performant Layer-1 blockchains, supporting high-throughput decentralized applications (dApps), NFTs, and DeFi protocols. Despite past network outages, ongoing upgrades have improved reliability. SOL’s ecosystem continues to grow rapidly, attracting developers and investors alike.
ADA (Cardano)
Cardano distinguishes itself with a research-driven approach to blockchain development. Its peer-reviewed protocols aim to deliver scalability, sustainability, and interoperability. While adoption has been slower compared to competitors, recent smart contract integrations are unlocking new utility.
XLM (Stellar)
Stellar focuses on financial inclusion, enabling low-cost international transfers and tokenized asset issuance. Backed by real-world partnerships with payment providers and central banks exploring CBDCs, XLM offers tangible use cases in remittances and banking infrastructure.
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Frequently Asked Questions (FAQ)
Q: What does Nasdaq’s application mean for the price of XRP, SOL, ADA, and XLM?
A: While no immediate price impact is guaranteed, inclusion in a regulated index often leads to sustained demand from institutional investors. Historical precedents suggest moderate to strong post-listing performance due to ETF-driven buying pressure.
Q: Is this the same as approving a spot ETF for these coins?
A: No. This filing relates to an ETF tracking an index that may include these assets—not a dedicated spot ETF for each coin. However, it's a positive step toward future spot product approvals.
Q: Will all four tokens definitely be added?
A: Final inclusion depends on both SEC approval of the rule change and whether each token meets NCI’s eligibility requirements at rebalance time. Approval isn’t automatic.
Q: How does this affect U.S. investors?
A: U.S.-based investors would gain regulated exposure to these assets through a familiar investment vehicle—an ETF—without holding crypto directly. This lowers complexity and compliance risks.
Q: Could regulatory concerns block XRP or others from inclusion?
A: Yes. Regulatory status plays a key role. For example, if the SEC still classifies any of these tokens as securities during review, it could delay or prevent inclusion.
The Bigger Picture: Institutional Adoption Accelerates
Nasdaq’s move reflects a broader trend: traditional finance is increasingly integrating digital assets into mainstream investment frameworks. From custody solutions to regulated trading venues and now expanded indices, infrastructure is maturing rapidly.
This shift benefits not only investors but also innovators building on these blockchains. Greater visibility often translates into more developer interest, enterprise partnerships, and ecosystem funding.
As the November 2025 decision date approaches, market participants will be watching closely—not just for regulatory signals but for what this means for the future of crypto as an asset class.
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Final Thoughts
The proposed addition of XRP, SOL, ADA, and XLM to the Nasdaq Crypto Index marks a pivotal moment in crypto’s journey toward legitimacy. While regulatory hurdles remain, the fact that a major exchange like Nasdaq is actively working to broaden its digital asset offerings underscores growing confidence in the sector’s long-term potential.
For investors, this development highlights the importance of staying informed about structural changes that could influence portfolio allocations in the years ahead. Whether through ETFs or direct investment, understanding which assets are gaining institutional traction can offer valuable strategic insights.
As always, due diligence is essential—especially in a landscape where innovation moves faster than regulation. But one thing is clear: the line between traditional finance and decentralized technologies is blurring faster than ever before.