Introduction
In what reflects a steady shift towards the acceptance of alternative Coins like XRP, Solana (SOL), Cardano (ADA), and Stellar Lumens (XLM), Nasdaq modified its cryptocurrency benchmark adding XRP, Solana (SOL), Cardano (ADA), and Stellar Lumens (XLM). The changes were noticed and filed under SEC Rule 19b-4 on June 2, 2025, designed to enhance the coverage of this product Hashdex Nasdaq Crypto Index US ETF (NCIQ), by offering investors more diversified access to all digital assets. Sources confirm that Nasdaq’s new benchmark includes nine cryptocurrencies and that the SEC is expected to make a final ruling by November 2, 2025.
Why Nasdaq Is Expanding Its Benchmark
The initiative provided by Nasdaq emulates a reaction to a changing market. The point of origin—through the Nasdaq Crypto US Settlement Price Index (NCIUS)—was originally based on the top two digital currencies (Bitcoin (BTC) and Ethereum (ETH)) and did not consider the entirety of the digital asset ecosystem. The NCIUS would seem more dated and utilitarian. Accordingly, Nasdaq has subsequently refreshed the NCIUS as of June 2, 2025, also based on trades and denominated in U.S. dollars, but added XRP, SOL, ADA and XLM.
The expanded Oracle is called the Nasdaq Crypto Index (NCI) and the newly listed assets tracked include BTC, ETH, XRP, Solana, Cardano, stellar (XLM), Chainlink (LINK), Litecoin (LTC), and Uniswap (UNI). This wider range increases the ability for Nasdaq to more accurately reflect broader investor interests and trends.
The ETF Tracking Challenge: Holding vs. Tracking
Though the NCI now encompasses six altcoins plus BTC and ETH, current U.S. regulations only permit the NCIQ ETF to invest in Bitcoin and Ethereum. This discrepancy forces ETF managers to use a sampling technique to mimic index performance, which introduces tracking errors since the actual holdings don’t fully match the benchmark.
Nasdaq’s proposed rule change—filed under SR-NASDAQ-2025-009—would formally allow the ETF to shift to the full NCI benchmark and legally hold all nine assets, reducing tracking error and aligning the fund’s structure with its aim.
What’s at Stake for Altcoins
Securing a place in a Nasdaq benchmark and subsequent ETF approval carries significant benefits for newer digital currencies. Institutional investment in Bitcoin ETFs since late 2023 reached around $138 billion, illustrating investor appetite for accessible, regulated crypto exposure.
Highlights:
- XRP: With a recent court ruling stating XRP is not a security, its inclusion marks growing institutional confidence.
- Solana and Cardano: Known for smart contract efficiency and research-driven development, respectively.
- Stellar: A popular network for low-cost global payments.
Analysts expect that ETF listing could improve trading liquidity, lower volatility, and enhance visibility for these coins, especially among institutional investors.
SEC Review and Timeline
The SEC has until November 2, 2025, to come to a decision on Nasdaq’s proposed change. Investors and industry experts anticipate this period will involve public feedback, regulatory assessment, and possible adjustments. If approved, it would mark a milestone in U.S. crypto regulation by allowing diversified altcoin ETF holdings.
Some heavyweight voices in asset management—such as VanEck, 21Shares, and Canary Capital—are already advocating for faster ETF approvals and less regulatory bias. The success of Bitcoin and Ether ETFs provides a compelling precedent for expanding options.
Implications for Investors
- Reduced Tracking Error: Allowing the ETF to invest directly in all nine assets improves alignment with its benchmark.
- Greater Altcoin Access: Institutional and retail investors gain regulated exposure to XRP, SOL, ADA, XLM, LINK, LTC, and UNI.
- Potential for Growth: Increased institutional interest can translate to greater liquidity, better market structure, and more competitive pricing.
Conclusion
Nasdaq’s June 2, 2025 filing represents a forward-looking step toward a more inclusive crypto benchmark and ETF ecosystem. By proposing to open the NCIQ to a wider asset base, Nasdaq is embracing the broadening interest in altcoins. The next key milestone is the SEC’s final decision by November 2, 2025. If approved, it would not only reduce tracking errors but also signal greater institutional legitimacy for altcoins beyond BTC and ETH—ushering in a new era of regulated, diversified crypto investment.
