Nasdaq Expands Crypto Index: Adds XRP, SOL, ADA, and XLM

What’s New in the Nasdaq Crypto Index?

The updated index, now called the Nasdaq Crypto Index (NCI), replaces the old Nasdaq Crypto US Settlement Price Index (NCIUS). It now tracks nine cryptocurrencies:

Bitcoin (BTC)
Ethereum (ETH)
XRP
Solana (SOL)
Cardano (ADA)
Stellar Lumens (XLM)
Chainlink (LINK)
Litecoin (LTC)
Uniswap (UNI)

This expansion reflects the growing importance of altcoins in the crypto market.

Impact on the Hashdex Nasdaq Crypto Index US ETF (NCIQ)

The Hashdex Nasdaq Crypto Index US ETF tracks this index but currently holds only Bitcoin and Ethereum. This limitation is due to SEC regulations, which restrict the ETF from investing directly in the newer altcoins.

To manage this, the ETF uses a sampling strategy to mimic the index’s performance. Still, this causes a tracking error because the ETF doesn’t hold all nine cryptocurrencies.

The SEC is expected to give final approval by November 2, 2025, which could allow the ETF to invest directly in all the index’s coins, reducing the tracking error and improving diversification.

Why Does This Matter?

Regulatory Progress: XRP’s inclusion is significant because of its past legal battles with the SEC. Adding XRP signals a shift toward regulatory acceptance of altcoins.
Institutional Access: The expanded index opens doors for more diversified crypto ETFs, attracting institutional investors who want exposure beyond Bitcoin and Ethereum.
Market Reaction: After the announcement, XRP and other added altcoins saw price increases, showing optimism about future ETF approvals and clearer regulations.

Aspect	Details
Index Expanded To	9 cryptocurrencies including XRP, SOL, ADA, XLM, BTC, ETH, LINK, LTC, UNI
ETF Affected	Hashdex Nasdaq Crypto Index US ETF (NCIQ)
Current ETF Holdings	Only BTC and ETH due to SEC regulations
SEC Final Approval Deadline	November 2, 2025
Potential Benefits	Greater ETF diversification, reduced tracking error, institutional adoption
Regulatory Impact	Signals SEC’s evolving stance on altcoins, legitimizes XRP and others

What’s Next?

The SEC’s final decision will shape how ETFs can hold altcoins in the U.S. market. If approved, investors could see more products that offer broad crypto exposure. This could lead to increased institutional participation and more stability in the crypto space.

Key Takeaways

Nasdaq’s crypto index now includes XRP, SOL, ADA, and XLM alongside BTC and ETH.
The SEC’s approval marks progress toward broader acceptance of altcoins in regulated U.S. financial products.
The Hashdex ETF currently cannot hold all index coins but may do so after SEC’s final approval.
This development could boost institutional investment and crypto ETF innovation.
XRP’s inclusion is a significant regulatory milestone given its previous legal challenges.

FAQs

Q: Why were XRP, SOL, ADA, and XLM added to the Nasdaq crypto index?

To better reflect the diversity of the crypto market beyond Bitcoin and Ethereum.

Q: Can the Hashdex ETF currently invest in these new coins?

No, it currently holds only BTC and ETH due to SEC rules but uses sampling to track the broader index.

Q: When will the ETF be allowed to invest in all index coins?

The SEC’s final decision is expected by November 2, 2025.

Q: What does XRP’s inclusion mean?

It signals regulatory acceptance and could help XRP gain legitimacy and institutional use despite past legal issues.

Q: How has the market reacted?

XRP and other altcoins saw price gains after the announcement, driven by optimism about ETF approvals.

This update from Nasdaq marks a key moment for crypto investors. It shows growing acceptance of altcoins in mainstream finance and sets the stage for more diverse and regulated crypto investment products. Will this push the crypto market into a new era of institutional adoption? Time will tell.