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Nasdaq has proposed a significant expansion of its crypto index to include XRP, Solana, Cardano, and Stellar Lumens, signaling a strategic move to diversify beyond Bitcoin and Ethereum.
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This proposal, currently under SEC review, aims to broaden institutional and retail investor access to a wider range of cryptocurrencies through ETF products by November 2025.
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According to a regulatory analyst cited by COINOTAG, “The proposed change marks a notable shift from earlier restrictions toward a more open posture by U.S. regulators regarding large-cap altcoins inclusion in mainstream financial indices.”
Nasdaq’s ETF rule change proposal to include XRP, Solana, Cardano, and Stellar Lumens could diversify crypto investment options, pending SEC approval by late 2025.
Nasdaq’s Strategic Diversification: Expanding Crypto ETF Holdings Beyond Bitcoin and Ethereum
On June 7, 2025, Nasdaq submitted a formal rule change request to the U.S. Securities and Exchange Commission (SEC) proposing the inclusion of four major altcoins—XRP, Solana (SOL), Cardano (ADA), and Stellar Lumens (XLM)—into its existing crypto index. This move represents a deliberate effort to diversify its cryptocurrency exchange-traded fund (ETF) offerings, which have historically concentrated on Bitcoin and Ethereum. By integrating these additional digital assets, Nasdaq aims to provide investors with broader exposure to the evolving crypto market landscape, enhancing portfolio diversification and potentially increasing liquidity across these tokens.
Regulatory Implications and Market Reception of Nasdaq’s Proposed ETF Expansion
The proposal is currently under regulatory review, with a decision expected by November 2025. Market participants are cautiously optimistic, recognizing that SEC approval would mark a pivotal moment in U.S. crypto regulation by formally endorsing large-cap altcoins within mainstream financial products. This regulatory clarity could pave the way for enhanced institutional participation and greater retail investor confidence. However, the absence of official statements from Nasdaq executives or representatives of the included cryptocurrencies leaves some uncertainty regarding the timeline and broader market impact.
Market Data and Historical Context Supporting Altcoin Inclusion
The inclusion of Ethereum in ETFs earlier this year set a precedent for altcoin integration, reflecting a gradual shift in SEC attitudes toward cryptocurrency products. XRP, currently trading at $2.25 with a market capitalization exceeding $132 billion, has demonstrated robust performance with a 16.36% price increase over the past 90 days and a 130.96% surge in daily trading volume, according to CoinMarketCap data as of June 9, 2025. These metrics underscore the growing investor interest and market maturity of altcoins, supporting Nasdaq’s rationale for their inclusion.
Expert Analysis: Potential Impact on Liquidity and Investor Engagement
Industry experts highlight that Nasdaq’s proposal could significantly enhance liquidity for the included altcoins by attracting institutional capital through regulated ETF vehicles. This development may also increase investor engagement by offering diversified exposure within a single product, reducing barriers to entry for those seeking alternatives to Bitcoin and Ethereum. Historically, such inclusions have acted as catalysts for price appreciation and broader industry recognition, suggesting positive long-term implications for the altcoin market segment.
Conclusion
Nasdaq’s proposed ETF rule change to incorporate XRP, Solana, Cardano, and Stellar Lumens represents a strategic evolution in the U.S. crypto investment landscape. Pending SEC approval, this diversification could expand institutional and retail access to a wider array of digital assets, fostering greater market participation and liquidity. While regulatory outcomes remain pending, this initiative signals a progressive shift toward mainstream acceptance of altcoins within regulated financial products, potentially shaping the future trajectory of crypto ETFs in the United States.
