Nasdaq has formally submitted a rule-change proposal to the U.S. Securities and Exchange Commission (SEC) to add four new cryptocurrencies to its flagship Nasdaq Crypto Index (NCI), including XRP, Solana (SOL), Cardano (ADA), and Stellar (XLM). If approved, this would mark a significant expansion beyond the current Bitcoin and Ethereum coverage, bringing the total index constituents to six. The move reflects growing institutional interest in diversifying crypto exposure beyond just the two leading digital assets.
Filed on June 2, 2025, the proposal seeks to align the holdings of the Hashdex Nasdaq Crypto Index US ETF (ticker: NCIQ) with the broader index. This expanded version of the NCI already includes the four altcoins in question but is not yet reflected in the ETF’s underlying assets. Currently, regulatory restrictions have limited the ETF to holding only Bitcoin and Ethereum, despite market demand for broader access. The proposed change is aimed at reducing tracking error between the ETF and the full index, allowing for more accurate performance mirroring and increased investor confidence.
SEC Decision Expected by November
The SEC is reviewing the proposal under Rule 19b-4 and is expected to deliver a decision by November 2, 2025. The filing comes amid improving regulatory clarity for some of the proposed additions—particularly XRP. In April 2025, a federal court reaffirmed that XRP does not qualify as a security, removing one of the key legal obstacles that had previously hindered its institutional adoption.
Should the SEC approve the rule change, the Hashdex ETF would be permitted to include all six assets in its holdings. This could be a watershed moment for altcoin legitimacy, signaling a shift in how traditional finance perceives non-Bitcoin and non-Ethereum assets. Analysts suggest that such a decision could lead to significant inflows into the ETF, improving liquidity for the newly added tokens and encouraging further product development around diversified crypto investment vehicles.
A Turning Point for Altcoins?
Market analysts view the proposal as a pivotal step in mainstreaming select altcoins, following in the footsteps of earlier ETF approvals for Bitcoin and Ethereum. A positive outcome from the SEC would further validate these tokens and could significantly influence ETF flows and investor sentiment heading into the final quarter of 2025. The inclusion of XRP, SOL, ADA, and XLM in a Nasdaq-linked financial product would provide these assets with unprecedented exposure to institutional investors.
The proposed expansion of the index also reflects broader industry trends. Traditional financial institutions are increasingly integrating digital assets into their portfolios—not just as speculative plays, but as strategic components of diversified asset management. Nasdaq’s move could inspire similar initiatives from other index providers and fund managers, further accelerating the integration of crypto assets into traditional finance.
With the SEC’s decision looming, all eyes will be on how this development unfolds. Whether it results in a broader wave of altcoin adoption or marks a more measured evolution of crypto investment vehicles, the outcome will likely have lasting implications for the market structure and investor landscape.
