The Nasdaq exchange has applied to expand its Nasdaq Crypto Index (NCI), planning to include four prominent altcoins—Ripple (XRP), Solana (SOL), Stellar Lumens (XLM), and Cardano (ADA)—in its digital asset benchmark index, NCI.

The application was submitted to the U.S. Securities and Exchange Commission (SEC) on June 2. This move could broaden the investment spectrum for instruments like the Hashdex Nasdaq Crypto Index U.S. ETF (NCIQ) and is seen by the market as a step toward greater regulatory visibility for digital assets within traditional financial frameworks.

Why is Nasdaq doing this?

According to Nasdaq’s 19b-4 rule change filing, the core objective is to shift the tracking benchmark of the Hashdex Nasdaq Crypto Index U.S. ETF (NCIQ) from the current Nasdaq Crypto U.S. Settlement Price Index (NCIUS) to the broader Nasdaq Crypto Index (NCI).

The current NCI index already includes nine cryptocurrencies: Bitcoin (BTC), Ethereum (ETH), XRP, SOL, ADA, XLM, Chainlink (LINK), Litecoin (LTC), and Uniswap (UNI).

Although the NCIUS index has been updated to include six assets, the NCIQ ETF’s holdings remain heavily concentrated in Bitcoin and Ethereum (together accounting for over 87%). This allocation creates a risk of tracking error, where the ETF’s performance deviates from its benchmark index.

By including a broader range of crypto assets, Nasdaq aims to enable the NCIQ ETF to more accurately reflect the NCI index, providing investors with a truer representation of the crypto market.

Awaiting SEC Approval

The proposal’s approval hinges on SEC review. Through the 19b-4 filing, Nasdaq has requested changes to introduce new products or rules. The SEC has until November 2, 2025, to make a final decision. However, market sentiment suggests approval is likely.

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