The cryptocurrency market is witnessing a pivotal development as Nasdaq has formally proposed an expansion of the Hashdex Nasdaq Crypto Index US ETF (NCIQ) benchmark. In a recent 8-K filing submitted to the U.S. Securities and Exchange Commission (SEC) on June 2, Nasdaq recommended broadening the index’s coverage from five to nine digital assets. The proposed additions include XRP, Solana (SOL), Cardano (ADA), and Stellar Lumens (XLM)—marking a significant step toward greater diversification in regulated crypto investment products.
If approved, this change could shift the ETF’s underlying benchmark from the current Nasdaq Crypto Index US Dollar Settlement Price (NCIUS) to the more comprehensive Nasdaq Crypto Index (NCI). The SEC is expected to issue a final decision by November 2, 2025, giving investors and market participants time to assess the implications of a wider, more inclusive crypto index.
Why This Expansion Matters for the Crypto Market
The move reflects growing institutional confidence in digital assets beyond Bitcoin and Ethereum. While the Hashdex ETF currently only holds Bitcoin and Ethereum due to regulatory constraints, its tracked index has already included six cryptocurrencies prior to this proposal. To minimize tracking error, Hashdex employs a sampling methodology—but full alignment with the index remains limited by unclear regulatory guidance.
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With approval, the updated NCI would encompass the following nine assets:
- Bitcoin (BTC)
- Ethereum (ETH)
- XRP
- Solana (SOL)
- Cardano (ADA)
- Stellar Lumens (XLM)
- Chainlink (LINK)
- Litecoin (LTC)
- Uniswap (UNI)
This expanded composition aims to better reflect the evolving crypto economy, capturing high-cap, high-utility blockchains that power decentralized finance, smart contracts, and cross-border payments.
Market Reaction: Winners and Laggards
News of the Nasdaq filing triggered immediate price movements across the proposed additions.
XRP saw a modest rally, climbing above $2.23 during early Monday trading—an increase of 3.1% from its weekly low. The surge suggests positive market sentiment around potential inclusion in a major regulated financial product.
Solana (SOL) demonstrated resilience after a sharp drop to near $140 the previous Friday. It rebounded strongly, stabilizing around $155 with a 0.2% gain and a notable 36% increase in trading volume—indicating renewed investor interest.
In contrast, Cardano (ADA) continued its downward trend, trading around $0.67 with no significant reversal. Similarly, Stellar Lumens (XLM) declined by over 1% in the week following the announcement, possibly due to broader market dynamics or lower short-term speculative activity.
These divergent reactions highlight how regulatory developments can influence investor behavior—even when inclusion isn’t guaranteed.
Leadership Transition at Hashdex Asset Management
Alongside the index proposal, Nasdaq’s filing revealed key leadership changes at Hashdex Asset Management Ltd., the sponsor of the ETF.
On June 2, 2025, Bruno Leonardo Kmita de Oliveira Passos stepped down from his roles as board member, Chief Financial Officer, and Chief Accounting Officer. According to regulatory disclosures, his resignation was not due to any disagreement with the company’s operations, policies, or practices.
He was succeeded by Samir Elias Hachem Kerbage, who has been appointed to both the board and executive positions. Kerbage currently serves as Hashdex’s Chief Investment Officer and has led the firm’s investment strategy since 2018. His appointment signals continuity and deep expertise in digital asset portfolio management.
Industry Push for Fairer ETF Approval Processes
Beyond this specific proposal, broader concerns are emerging about the fairness and transparency of the SEC’s ETF approval framework.
On June 6, 2025, major asset managers VanEck, 21Shares, and Canary Capital jointly submitted a letter to the SEC calling for a return to a “first-in, first-reviewed” policy for exchange-traded product (ETP) applications.
“When the Commission favors one party, ETP sponsors lose out—and the ETP market becomes less fair.”
The letter criticizes the SEC’s practice of approving multiple crypto ETFs simultaneously—such as the January 10, 2024, approval of 11 Bitcoin spot ETFs and later Ethereum ETFs—arguing that it undermines early applicants who invested significant resources in pioneering these products.
For example, ProShares’ Bitcoin futures ETF, approved in 2021, captured 90% of market share within days of launch—demonstrating how timing can determine long-term dominance. VanEck and 21Shares, both early filers for Bitcoin and Ethereum spot ETFs, believe they were disadvantaged by delayed reviews despite their pioneering efforts.
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This growing call for reform underscores the need for a level playing field—one that rewards innovation rather than favoring well-resourced incumbents.
FAQ: Understanding the Nasdaq Crypto Index Expansion
Q: What is the Hashdex Nasdaq Crypto Index US ETF (NCIQ)?
A: It’s an exchange-traded fund sponsored by Hashdex that tracks a Nasdaq-developed cryptocurrency index. Currently focused on Bitcoin and Ethereum due to regulations, it aims to offer diversified exposure to digital assets.
Q: Why is adding XRP, SOL, ADA, and XLM significant?
A: These assets represent major blockchain ecosystems with real-world use cases in payments (XRP, XLM), smart contracts (SOL, ADA), and decentralized finance. Their inclusion would make the index more representative of the broader crypto market.
Q: Will this ETF definitely add these four coins?
A: Not yet. The proposal must be approved by the SEC by November 2025. While Nasdaq has made the recommendation, final authority rests with the regulator.
Q: How does this affect retail investors?
A: If approved, investors gain indirect exposure to top altcoins through a regulated U.S.-listed ETF—reducing custody risks and increasing accessibility compared to direct ownership.
Q: What are tracking error and sampling in ETFs?
A: Tracking error measures how closely an ETF follows its benchmark. Sampling is a strategy where an ETF holds only a subset of index assets (e.g., BTC and ETH) to approximate performance when full replication isn’t feasible.
Q: Could other altcoins be added in the future?
A: Yes. As regulatory clarity improves and markets mature, indices like NCI may continue evolving to include emerging leaders in areas like AI-blockchain integration, Layer-2 scaling, or privacy tech.
The Road Ahead: Toward a More Inclusive Digital Asset Future
The proposed expansion of the Hashdex ETF’s benchmark signals a shift toward broader acceptance of digital assets within traditional finance. By incorporating established altcoins like Solana, Cardano, XRP, and Stellar, Nasdaq is helping lay the groundwork for next-generation investment vehicles that reflect actual market dynamics—not just regulatory caution.
Moreover, the industry’s push for fairer approval processes highlights an urgent need for modernized regulatory frameworks that encourage innovation without compromising investor protection.
As we approach the SEC’s decision deadline in late 2025, all eyes will be on whether this expansion becomes a blueprint for future crypto ETF developments.
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With increasing institutional participation, clearer governance, and stronger market infrastructure, the vision of a truly integrated digital asset economy is moving closer to reality.