Nasdaq Adds XRP, SOL, ADA, and XLM to Expanded Crypto Index

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The world of digital assets took a significant leap forward as Nasdaq filed a proposed rule change with the U.S. Securities and Exchange Commission (SEC) on June 2, 2024. Under Rule 19b-4, the move aims to expand the benchmark index for crypto-related financial products by incorporating four major altcoins: XRP, Solana (SOL), Cardano (ADA), and Stellar Lumens (XLM). This development signals a growing institutional embrace of cryptocurrencies beyond Bitcoin and Ethereum.

A Broader Benchmark for Crypto Exposure

The proposal targets the Hashdex Nasdaq Crypto Index US ETF (ticker: NCIQ), which currently tracks the Nasdaq Crypto US Settlement Price Index (NCIUS). Under the new plan, the ETF would transition to using the Nasdaq Crypto Index (NCI)—a more comprehensive benchmark that better reflects the evolving digital asset landscape.

This shift isn’t just symbolic. The NCI now includes nine leading cryptocurrencies:

By expanding the index, Nasdaq is acknowledging the maturation and market significance of these digital assets. The inclusion of high-performance blockchains like Solana and widely adopted networks like Cardano and Ripple’s XRP highlights a broader market recognition of utility-driven crypto projects.

👉 Discover how next-generation crypto indices are reshaping investment strategies.

Why This Expansion Matters

While Bitcoin and Ethereum dominate the crypto ETF space in the U.S., limiting exposure to just two assets creates a narrow view of the overall market. The current structure of the Hashdex ETF only allows holdings in BTC and ETH due to regulatory constraints—even though its underlying index tracks six coins. This discrepancy leads to what’s known as tracking error, where the fund’s performance diverges from its benchmark.

To mitigate this, Hashdex employs a sampling strategy—selecting a subset of assets to approximate the index’s behavior. However, this method can’t fully eliminate performance gaps. The proposed rule change could resolve this issue by allowing direct investment in all index constituents, improving accuracy and investor confidence.

Regulatory Hurdles and Timeline

Despite the momentum, approval from the SEC remains uncertain. The commission has set a final determination deadline of November 2, 2025, giving regulators ample time to assess potential risks related to market manipulation, custody, and investor protection.

If approved, this would mark a pivotal moment for U.S. crypto regulation—potentially opening the door for diversified, multi-asset crypto ETFs. Such a green light could encourage other asset managers to launch similar products, increasing competition and choice in the market.

Moreover, it may accelerate the adoption of altcoins within traditional finance circles, where institutional investors demand regulated, transparent, and liquid investment vehicles.

Core Keywords Driving Market Interest

The key terms shaping this development include:

These keywords reflect both investor curiosity and search intent around regulatory progress and portfolio expansion in crypto.

What’s Next for Multi-Asset Crypto ETFs?

The expansion of Nasdaq’s index underscores a growing trend: the demand for diversified exposure to digital assets. As blockchain technology matures and regulatory clarity improves, financial institutions are increasingly treating crypto as a legitimate asset class.

Should the SEC approve the rule change, we could see:

This evolution aligns with global trends where markets outside the U.S. have already embraced multi-asset crypto funds. The U.S., historically cautious, may finally be catching up.

👉 Explore how regulated crypto indices are paving the way for mainstream adoption.

Frequently Asked Questions (FAQ)

What is the Nasdaq Crypto Index (NCI)?

The NCI is a rules-based index designed to measure the performance of major cryptocurrencies traded in the U.S. It includes nine digital assets: BTC, ETH, XRP, SOL, ADA, XLM, LINK, LTC, and UNI. It serves as a benchmark for investment products like ETFs.

Why are XRP, SOL, ADA, and XLM being added?

These altcoins were selected based on criteria such as market capitalization, liquidity, trading volume, and security standards. Their inclusion reflects their established presence and growing adoption in the blockchain ecosystem.

Can investors currently buy an ETF that holds all these coins?

Not yet. While the index includes nine assets, current U.S. regulations restrict most crypto ETFs to holding only Bitcoin and Ethereum. The proposed rule change seeks to expand permissible holdings if approved by the SEC.

What is tracking error in crypto ETFs?

Tracking error occurs when an ETF’s performance deviates from its benchmark index. In this case, since the Hashdex ETF only invests in BTC and ETH but tracks an index with six coins, there’s a mismatch that affects returns.

When will the SEC make a decision?

The SEC has set a final determination date of November 2, 2025. This timeline allows for public comment, internal review, and assessment of market impact.

How could this affect cryptocurrency prices?

Approval could boost investor confidence in altcoins like XRP, SOL, ADA, and XLM, potentially increasing demand. Broader ETF inclusion often leads to higher liquidity and price stability over time.

👉 Stay ahead of regulatory shifts shaping the future of crypto investing.

Final Thoughts

Nasdaq’s move to include XRP, Solana, Cardano, and Stellar Lumens in its expanded crypto index represents more than just a technical update—it’s a signal of deeper integration between traditional finance and the digital asset economy. With institutional interest rising and regulatory scrutiny ongoing, every step toward broader crypto accessibility matters.

As investors await the SEC’s final decision in late 2025, one thing is clear: the future of crypto investing is becoming more diverse, transparent, and accessible than ever before. Whether you're a retail trader or an institutional player, staying informed about these developments is key to navigating what’s next in digital finance.