Nasdaq Seeks to Add XRP, SOL, XLM, and ADA to Crypto Index

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The Nasdaq exchange has taken a significant step toward broadening its digital asset offerings by submitting a proposal to the U.S. Securities and Exchange Commission (SEC) to expand its Nasdaq Crypto Index (NCI). The filing, submitted on June 2, 2025, aims to include four major altcoins — XRP, Solana (SOL), Stellar Lumens (XLM), and Cardano (ADA) — into its benchmark crypto index.

This move could reshape the landscape for crypto-based financial products, particularly exchange-traded funds (ETFs), and signal growing regulatory acceptance of a wider range of digital assets within traditional finance.

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Why Is Nasdaq Expanding Its Crypto Index?

According to the 19b-4 rule change application filed with the SEC, Nasdaq intends to shift the tracking benchmark of the Hashdex Nasdaq Crypto Index US ETF (NCIQ) from the current Nasdaq Crypto US Settlement Price Index (NCIUS) to the broader Nasdaq Crypto Index (NCI).

Currently, the NCI tracks nine cryptocurrencies:

While the NCIUS index has also been updated to include six assets, the NCIQ ETF’s holdings remain heavily concentrated in just two — Bitcoin and Ethereum, which together make up over 87% of its portfolio. This concentration introduces tracking error risk, where the ETF's performance may deviate significantly from its underlying index.

By incorporating a more diverse set of digital assets, Nasdaq aims to improve the accuracy of index replication and offer investors a more representative snapshot of the broader cryptocurrency market.

What Are the Implications for Investors?

The expansion could lead to several key outcomes:

Market analysts view this development as a sign that digital assets beyond BTC and ETH are gaining legitimacy in mainstream finance.

SEC Approval: The Final Hurdle

The fate of this proposal hinges on SEC review. Under standard procedures for 19b-4 filings, the commission has until November 2, 2025, to issue a final decision. However, industry experts believe approval is likely, given Nasdaq’s established reputation and the non-controversial nature of the requested change.

If approved, the NCIQ ETF will be able to more closely mirror the full NCI index, potentially increasing demand for the newly included assets — especially XRP, SOL, ADA, and XLM, which have strong developer communities and real-world use cases.

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Core Keywords Driving This Trend

This development highlights growing interest in:

These keywords reflect both investor demand and institutional evolution in the digital asset space. As traditional markets integrate more blockchain-based assets, clarity in regulation and product structure becomes essential.

Frequently Asked Questions (FAQ)

Q: What is the Nasdaq Crypto Index (NCI)?
A: The NCI is a benchmark index designed to track the performance of major cryptocurrencies traded in the U.S. It currently includes nine digital assets, such as Bitcoin, Ethereum, and several top altcoins.

Q: How does adding XRP, SOL, ADA, and XLM benefit investors?
A: Including these altcoins allows for better portfolio diversification and reduces reliance on just BTC and ETH. It also gives investors indirect access to innovative blockchain platforms through regulated financial products.

Q: Will this lead to ETFs for individual altcoins like SOL or XRP?
A: While not guaranteed, broader index inclusion often paves the way for dedicated spot ETFs. Regulatory acceptance of these coins in a major index strengthens their case for future standalone products.

Q: What happens if the SEC rejects the proposal?
A: A rejection would delay diversification efforts and could slow institutional adoption of altcoins. However, Nasdaq may revise and resubmit the application based on feedback.

Q: How does tracking error affect ETF investors?
A: Tracking error means the ETF doesn’t perfectly follow its index, leading to potential underperformance. Diversifying holdings helps minimize this gap and improves investment accuracy.

Q: Are XRP, SOL, ADA, and XLM considered securities?
A: This remains a complex legal question. While the SEC has classified some tokens as securities in enforcement actions, inclusion in a regulated index like NCI suggests they’re being treated as commodities or permissible assets in this context.

What’s Next for Crypto in Traditional Finance?

Nasdaq’s push to expand its crypto index underscores a broader trend: digital assets are becoming an integral part of modern investment portfolios. As infrastructure improves and regulatory clarity grows, we’re likely to see more sophisticated products that go beyond Bitcoin and Ethereum.

For retail and institutional investors alike, this means:

The inclusion of XRP, SOL, ADA, and XLM isn't just about price movements — it's about recognition, legitimacy, and long-term integration into global financial systems.

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Final Thoughts

Nasdaq’s proposal marks a pivotal moment in the evolution of crypto investing. By seeking to incorporate major altcoins into its official index, it signals growing confidence in their value, utility, and regulatory viability.

While SEC approval is still pending, the direction is clear: the future of digital asset investing is diversified, regulated, and increasingly accessible. Whether you're focused on short-term opportunities or long-term portfolio growth, keeping an eye on developments like this can help you make smarter, more informed decisions.

As the line between traditional finance and blockchain technology continues to blur, platforms that support seamless access to emerging assets will play a crucial role — making it easier than ever to participate in the next phase of financial innovation.