Nasdaq has filed a proposal with the U.S. Securities and Exchange Commission (SEC) to expand its crypto index by adding XRP, Solana (SOL), Cardano (ADA), and Stellar Lumens (XLM). This move would allow the Hashdex Nasdaq Crypto Index US ETF (NCIQ) to track a broader market benchmark, pending regulatory approval by the November 2, 2025 deadline. The decision could reshape institutional crypto exposure in the U.S., currently limited to Bitcoin and Ethereum ETFs.
The updated Nasdaq Crypto Index (NCI) now includes nine digital assets, introducing potential tracking challenges for the ETF that currently only holds BTC and ETH. Hashdex employs sampling strategies to mitigate this mismatch, but full alignment remains impossible under existing SEC rules. Approval would enable direct investment in all index components, reducing tracking error risks.
Get breakout alerts
Install Coin Push to get profitable crypto trading notifications.
XRP’s Regulatory Crossroads
The inclusion of XRP marks a significant development following Ripple’s partial legal victory against the SEC in 2023. Despite ongoing appeals, Nasdaq’s endorsement signals growing institutional confidence in the asset. XRP’s price remained stable at press time, with liquidity patterns suggesting cautious optimism among traders.
Ripple CEO Brad Garlinghouse recently emphasized XRP’s utility in cross-border settlements during a Tokyo FinTech conference. The asset’s regulatory clarity compared to other altcoins makes it a strategic addition to the index, though the SEC continues to dispute its non-security status in ongoing litigation.
Solana’s Institutional Validation
Solana emerges as the standout Layer 1 competitor in the proposal, with its inclusion reflecting renewed market confidence after the FTX collapse. Network upgrades have reduced downtime incidents to 0.1% in 2024, while developer activity surged 40% year-to-date according to Electric Capital’s blockchain report.
The blockchain’s performance metrics now rival Ethereum’s, processing 2,458 transactions per second with average fees below $0.01. Institutional interest has grown notably, with CoinGecko data showing a 65% increase in SOL futures open interest since May 2025.
Index Expansion and Market Implications
Nasdaq’s revised benchmark introduces four new assets alongside BTC and ETH:
| Asset | Market Cap | Index Weight |
|---|---|---|
| XRP | $34B | 12% |
| SOL | $68B | 18% |
| ADA | $22B | 7% |
| XLM | $9B | 3% |
This diversification aims to capture 78% of the total crypto market capitalization, up from 64% under the previous index. Cardano’s inclusion follows its recent Voltaire governance upgrade, while Stellar benefits from growing CBDC partnership announcements.
SEC’s Pivotal Decision Timeline
The SEC faces mounting pressure to approve the rule change following its 2024 greenlight for spot Bitcoin ETFs. Chair Gary Gensler maintains caution about non-Bitcoin crypto securities, but industry analysts suggest the commission may compartmentalize its XRP concerns given Ripple’s ongoing case.
Bloomberg ETF analyst James Seyffart notes: “This proposal tests the SEC’s capacity to handle complex crypto products. Their decision could establish precedent for multi-asset ETFs in 2026.” Approval would likely trigger similar filings from BlackRock and Fidelity within weeks.
Market makers have already begun adjusting derivatives positions, with CME Group reporting a 300% increase in SOL futures contracts last quarter. The potential ETF expansion coincides with renewed legislative efforts to clarify crypto commodity definitions in the U.S. House Financial Services Committee.
Install Coin Push mobile app to get profitable crypto alerts. Coin Push sends timely notifications – so you don’t miss any major market movements.
The proposed index expansion represents a watershed moment for crypto adoption, bridging decentralized networks with traditional market infrastructure. Success could unlock $7-9 billion in new institutional inflows according to Galaxy Digital estimates, while rejection might prolong the sector’s regulatory limbo.
- ETF
- Exchange-Traded Fund – A regulated investment vehicle tracking assets or indexes, traded on traditional stock exchanges.
- Tracking Error
- The divergence between an ETF’s performance and its underlying index, often caused by regulatory constraints or liquidity issues.
- SEC
- U.S. Securities and Exchange Commission – Federal agency regulating securities markets and investment products.
- Howey Test
- Legal framework determining if an asset qualifies as a security under U.S. law, based on investment contracts.
- Spot ETF
- ETF holding physical assets rather than derivatives, providing direct exposure to market prices.
