Nasdaq has filed a proposal with the U.S. Securities and Trade Fee (SEC) to increase its crypto index by including XRP, Solana (SOL), Cardano (ADA), and Stellar Lumens (XLM). This transfer would enable the Hashdex Nasdaq Crypto Index US ETF (NCIQ) to trace a broader market benchmark, pending regulatory approval by the November 2, 2025 deadline. The choice might reshape institutional crypto publicity within the U.S., at present restricted to Bitcoin and Ethereum ETFs.
The up to date Nasdaq Crypto Index (NCI) now consists of 9 digital property, introducing potential monitoring challenges for the ETF that at present solely holds BTC and ETH. Hashdex employs sampling methods to mitigate this mismatch, however full alignment stays unimaginable underneath current SEC guidelines. Approval would allow direct funding in all index parts, lowering monitoring error dangers.
XRP’s Regulatory Crossroads
The inclusion of XRP marks a big growth following Ripple’s partial authorized victory in opposition to the SEC in 2023. Regardless of ongoing appeals, Nasdaq’s endorsement alerts rising institutional confidence within the asset. XRP’s worth remained steady at press time, with liquidity patterns suggesting cautious optimism amongst merchants.
Ripple CEO Brad Garlinghouse lately emphasised XRP’s utility in cross-border settlements throughout a Tokyo FinTech convention. The asset’s regulatory readability in comparison with different altcoins makes it a strategic addition to the index, although the SEC continues to dispute its non-security standing in ongoing litigation.
Solana’s Institutional Validation
Solana emerges because the standout Layer 1 competitor within the proposal, with its inclusion reflecting renewed market confidence after the FTX collapse. Community upgrades have diminished downtime incidents to 0.1% in 2024, whereas developer exercise surged 40% year-to-date in response to Electrical Capital’s blockchain report.
The blockchain’s efficiency metrics now rival Ethereum’s, processing 2,458 transactions per second with common charges under $0.01. Institutional curiosity has grown notably, with CoinGecko data exhibiting a 65% improve in SOL futures open curiosity since Could 2025.
Index Growth and Market Implications
Nasdaq’s revised benchmark introduces 4 new property alongside BTC and ETH:
| Asset | Market Cap | Index Weight |
|---|---|---|
| XRP | $34B | 12% |
| SOL | $68B | 18% |
| ADA | $22B | 7% |
| XLM | $9B | 3% |
This diversification goals to seize 78% of the entire crypto market capitalization, up from 64% underneath the earlier index. Cardano’s inclusion follows its latest Voltaire governance improve, whereas Stellar advantages from rising CBDC partnership bulletins.
SEC’s Pivotal Choice Timeline
The SEC faces mounting stress to approve the rule change following its 2024 greenlight for spot Bitcoin ETFs. Chair Gary Gensler maintains warning about non-Bitcoin crypto securities, however trade analysts recommend the fee could compartmentalize its XRP issues given Ripple’s ongoing case.
Bloomberg ETF analyst James Seyffart notes: “This proposal assessments the SEC’s capability to deal with complicated crypto merchandise. Their determination might set up precedent for multi-asset ETFs in 2026.” Approval would probably set off comparable filings from BlackRock and Constancy inside weeks.
Market makers have already begun adjusting derivatives positions, with CME Group reporting a 300% improve in SOL futures contracts final quarter. The potential ETF enlargement coincides with renewed legislative efforts to make clear crypto commodity definitions within the U.S. Home Monetary Providers Committee.
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The proposed index enlargement represents a watershed second for crypto adoption, bridging decentralized networks with conventional market infrastructure. Success might unlock $7-9 billion in new institutional inflows in response to Galaxy Digital estimates, whereas rejection would possibly lengthen the sector’s regulatory limbo.
- ETF
- Trade-Traded Fund – A regulated funding car monitoring property or indexes, traded on conventional inventory exchanges.
- Monitoring Error
- The divergence between an ETF’s efficiency and its underlying index, typically attributable to regulatory constraints or liquidity points.
- SEC
- U.S. Securities and Trade Fee – Federal company regulating securities markets and funding merchandise.
- Howey Take a look at
- Authorized framework figuring out if an asset qualifies as a safety underneath U.S. legislation, primarily based on funding contracts.
- Spot ETF
- ETF holding bodily property moderately than derivatives, offering direct publicity to market costs.
This text is for informational functions solely and doesn’t represent monetary recommendation. Please conduct your individual analysis earlier than making any funding choices.
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Editor-in-Chief / Coin Push Dean is a crypto fanatic primarily based in Amsterdam, the place he follows each twist and switch on the planet of cryptocurrencies and Web3.