Nasdaq Moves to Add XRP and Solana to Crypto Index Amid Regulatory Changes

• Nasdaq’s June 2, proposal to the SEC seeks to expand the Nasdaq Crypto Index (NCI) by adding XRP, Solana, Cardano, and Stellar, increasing the index to six cryptocurrencies to better align the Hashdex Nasdaq Crypto Index US ETF (NCIQ) with the broader index.
• Approval by the SEC, expected by November 2, 2025, could enhance altcoin legitimacy, reduce ETF tracking error, and drive significant inflows, boosting liquidity for the included tokens.
• The move reflects growing institutional interest in diversified crypto exposure, potentially setting a precedent for further integration of alternative cryptocurrencies into mainstream financial products.

The Nasdaq Crypto Index (NCI) is poised for a potential transformation as Nasdaq (NDAQ) has submitted a rule-change proposal to the U.S. Securities and Exchange Commission (SEC) on June 2, to include four additional cryptocurrencies — Ripple (XRP), Solana (SOL), Cardano (ADA), and Stellar (XLM) – in its flagship index. This move would expand the index from its current focus on Bitcoin (BTC) and Ethereum (ETH) to a total of six constituents, reflecting the growing appetite among institutional investors for diversified exposure to digital assets. The proposal, filed under Rule 19b-4, aims to align the holdings of the Hashdex Nasdaq Crypto Index US ETF (NCIQ) with the broader NCI, which already includes these altcoins but is restricted by regulatory limitations to holding only Bitcoin and Ethereum in the ETF itself. A decision from the SEC is expected by November 2, 2025, and approval could mark a pivotal moment for the integration of alternative cryptocurrencies into mainstream financial products.

The inclusion of XRP, Solana, Cardano, and Stellar in the NCI would address a critical gap between the ETF’s current portfolio and the broader index it seeks to track. By incorporating these assets, the Hashdex ETF would reduce tracking error, ensuring its performance more accurately reflects the NCI’s composition. This alignment is essential for maintaining investor confidence, as discrepancies between an ETF and its underlying index can erode trust and limit its appeal. The proposal comes at a time when regulatory clarity is improving, particularly for XRP, which a federal court reaffirmed in April 2025 does not qualify as a security. This ruling has removed a significant barrier to XRP’s institutional adoption, paving the way for its inclusion in regulated investment vehicles like the NCIQ ETF.

The potential approval of this rule change carries broader implications for the cryptocurrency market. Expanding the NCI to include XRP, Solana, Cardano, and Stellar would signal a growing acceptance of altcoins within traditional finance, challenging the long-standing dominance of Bitcoin and Ethereum. These four cryptocurrencies represent diverse use cases, from Solana’s high-throughput blockchain designed for decentralized applications to Cardano’s focus on scalability and sustainability through its proof-of-stake protocol. Stellar’s emphasis on cross-border payments and XRP’s role in facilitating efficient international transactions further diversify the index’s exposure, offering investors access to a wider range of blockchain innovations. This shift could enhance the legitimacy of altcoins, encouraging the development of additional crypto-focused financial products.

Analysts anticipate that SEC approval could drive significant inflows into the Hashdex ETF, boosting liquidity for the newly added tokens. Increased institutional participation through regulated vehicles like NCIQ could stabilize price volatility for these altcoins, as larger capital pools often dampen speculative swings. Moreover, the inclusion of these assets in a prominent index could spur further innovation in the crypto investment space, potentially leading to new ETFs, index funds, or other vehicles that provide exposure to a broader spectrum of digital assets. The growing institutional interest in cryptocurrencies, evidenced by Nasdaq’s proactive proposal, underscores the maturation of the asset class, which has evolved from a niche technology to a recognized component of diversified portfolios.

The SEC’s decision will hinge on its assessment of investor protection, market stability, and compliance with existing regulations. While the April 2025 XRP ruling provides a favorable precedent, Solana, Cardano, and Stellar face their own regulatory considerations, including concerns about market manipulation and custodial standards. However, the structured framework of the NCI and the Hashdex ETF, backed by Nasdaq’s rigorous oversight, may mitigate these concerns. If approved, this rule change could set a precedent for other exchanges and asset managers to pursue similar expansions, further bridging the gap between traditional finance and the rapidly evolving cryptocurrency ecosystem. As the November 2, 2025, deadline approaches, the industry awaits a decision that could redefine the role of altcoins in institutional investment strategies.

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