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

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The world of digital assets took a significant step forward as Nasdaq filed a pivotal application with the U.S. Securities and Exchange Commission (SEC) to expand its crypto exposure. The move could reshape the landscape of cryptocurrency exchange-traded funds (ETFs) in the United States and signal growing institutional acceptance of a broader range of digital tokens.

👉 Discover how major financial institutions are integrating digital assets into mainstream investing.

Expanding the Nasdaq Crypto Index

On June 7, 2025, Nasdaq submitted a rule change proposal to the SEC aiming to enhance the Nasdaq Crypto Index (NCI) by including four prominent cryptocurrencies: XRP, Solana (SOL), Cardano (ADA), and Stellar Lumens (XLM). This expansion would increase the index’s coverage to nine qualifying digital assets, marking a notable evolution from its current structure.

This adjustment directly impacts the Hashdex Nasdaq Crypto Index ETF (NCIQ), which currently tracks the Nasdaq Crypto US Settlement Price Index (NCIUS)—a benchmark limited primarily to Bitcoin (BTC) and Ethereum (ETH). Despite the NCI including nine cryptos, regulatory constraints have prevented the ETF from fully mirroring the index due to restrictions on holding non-BTC and non-ETH assets.

If approved, the ETF would be allowed to invest in all constituents of the NCI, significantly reducing tracking error and improving portfolio accuracy. The SEC is expected to issue a final decision by November 2, 2025.

Why This Matters for Investors

The proposed inclusion reflects growing confidence in the maturity and stability of select altcoins. XRP, SOL, ADA, and XLM each represent distinct blockchain ecosystems with real-world applications in payments, smart contracts, decentralized finance (DeFi), and cross-border transactions.

By broadening the index, Nasdaq acknowledges these projects’ significance in the evolving digital economy. For investors, this means potential access to diversified crypto exposure through a regulated, transparent ETF product—without needing to directly purchase or store individual tokens.

👉 Learn how next-generation ETFs are transforming crypto investment strategies.

Regulatory Hurdles and Market Implications

Despite the technical readiness of such an ETF, regulatory approval remains the key bottleneck. The SEC has historically maintained a cautious stance toward cryptocurrencies beyond Bitcoin and Ethereum, citing concerns over market manipulation, liquidity, and investor protection.

However, recent developments—including the approval of spot Bitcoin and Ethereum ETFs—suggest a gradual shift in regulatory sentiment. Nasdaq’s application may test whether the commission is ready to embrace a more inclusive approach to digital asset regulation.

Approval would mark a watershed moment: it would be one of the first times a U.S.-listed ETF could legally hold multiple altcoins, setting a precedent for future financial products. It could also boost liquidity and price stability for XRP, SOL, ADA, and XLM while encouraging other asset managers to launch similar diversified crypto funds.

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Frequently Asked Questions (FAQ)

Q: What is the Hashdex Nasdaq Crypto Index ETF (NCIQ)?
A: NCIQ is an exchange-traded fund managed by Hashdex that seeks to track the performance of the Nasdaq Crypto Index. Currently restricted by regulation, it only invests in Bitcoin and Ethereum despite the index covering nine cryptocurrencies.

Q: Why can’t the ETF currently hold all index components?
A: U.S. securities laws and SEC guidelines limit what assets ETFs can hold. Until formal approval is granted, NCIQ cannot legally invest in altcoins like XRP, SOL, ADA, or XLM—even if they’re part of the underlying index.

Q: Which cryptocurrencies are in the Nasdaq Crypto Index (NCI)?
A: The NCI includes nine major cryptocurrencies: Bitcoin (BTC), Ethereum (ETH), XRP, Solana (SOL), Cardano (ADA), Stellar Lumens (XLM), along with others meeting strict liquidity, trading volume, and security standards.

Q: When will the SEC decide on Nasdaq’s proposal?
A: The SEC is scheduled to make a final determination by November 2, 2025. Delays are possible depending on regulatory review timelines.

Q: How would this affect crypto markets?
A: Approval could increase institutional demand for altcoins, improve market legitimacy, reduce volatility through enhanced liquidity, and pave the way for more diversified crypto investment vehicles in traditional finance.

Q: Is this ETF already available to investors?
A: Yes, but in a limited form. Investors can buy shares of NCIQ today; however, full alignment with the expanded NCI index depends on SEC approval for broader asset inclusion.

👉 See how global investors are preparing for the next wave of crypto ETF innovations.

A Step Toward Mainstream Adoption

Nasdaq’s initiative underscores a broader trend: traditional financial infrastructure is increasingly recognizing digital assets as legitimate investment vehicles. By integrating well-established altcoins into regulated indices and funds, Wall Street is slowly building bridges between legacy finance and blockchain innovation.

This shift doesn’t just benefit institutional players—it opens doors for retail investors seeking secure, compliant ways to diversify into crypto beyond just Bitcoin and Ethereum. As regulatory clarity improves, products like the enhanced NCIQ ETF could become cornerstones of modern investment portfolios.

While challenges remain—particularly around compliance and oversight—the momentum is undeniable. The journey toward a fully inclusive digital asset market continues, one regulatory filing at a time.