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Nasdaq has filed with the U.S. SEC to expand its cryptocurrency index by including XRP, Solana (SOL), Cardano (ADA), and Stellar Lumens (XLM), marking a significant move toward broader ETF diversification in the U.S. market.
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This proposal aims to enhance investment options beyond Bitcoin and Ethereum, potentially reshaping the crypto ETF landscape and encouraging greater institutional participation.
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“The inclusion of these cryptocurrencies in the NCIUS index symbolizes regulatory acceptance, indicating that these tokens meet the SEC’s rigorous standards for inclusion in a financial product governed by U.S. securities laws.” — AInvest Analyst, Cryptocurrency Analyst, AInvest, source
Nasdaq seeks SEC approval to add XRP, SOL, ADA, and XLM to its crypto index, potentially broadening ETF diversification and impacting U.S. crypto markets by 2025.
Nasdaq’s Strategic Move to Broaden Crypto ETF Diversification with XRP, SOL, ADA, and XLM
On June 7, 2025, Nasdaq submitted a formal application to the U.S. Securities and Exchange Commission (SEC) to expand its cryptocurrency index by incorporating four prominent altcoins: XRP, Solana (SOL), Cardano (ADA), and Stellar Lumens (XLM). This initiative represents a pivotal step toward diversifying the crypto assets available within U.S.-regulated exchange-traded funds (ETFs). Currently, due to regulatory restrictions, the Hashdex Nasdaq Crypto Index ETF (NCIQ) is limited to investing solely in Bitcoin and Ethereum. Approval of Nasdaq’s proposal would enable the ETF to track a broader index, the Nasdaq Crypto Index (NCI), which includes these additional tokens, thereby enhancing portfolio diversification and offering investors exposure to a wider range of blockchain technologies and use cases.
Implications for the U.S. Crypto ETF Market and Regulatory Landscape
The potential inclusion of XRP, SOL, ADA, and XLM in Nasdaq’s index signals a gradual shift in regulatory attitudes toward altcoins beyond the dominant Bitcoin and Ethereum. This move could set a precedent for future ETF products that embrace a more diversified basket of digital assets, aligning U.S. offerings with trends observed in crypto-friendly jurisdictions globally. Analysts anticipate that regulatory approval might stimulate increased on-chain activity, including staking and decentralized finance (DeFi) participation, as investors gain easier access to these tokens through regulated financial products. Market participants are closely monitoring the SEC’s decision, expected by November 2, 2025, which will likely influence the trajectory of crypto asset integration within traditional financial markets.
Market Dynamics and Investor Sentiment Surrounding Nasdaq’s Proposal
The announcement has been met with cautious optimism among investors and industry experts. XRP, for instance, currently holds a market capitalization exceeding $130 billion and has demonstrated notable price resilience and growth over recent months. The inclusion of such altcoins could attract institutional capital seeking diversified exposure to blockchain ecosystems with distinct technological foundations and use cases. Moreover, Nasdaq’s initiative reflects a broader institutional acceptance of these tokens, reminiscent of the earlier integration of Bitcoin and Ethereum into major financial indices. This evolution may encourage further innovation in ETF structures and product offerings, fostering a more mature and accessible crypto investment environment.
Technological and Regulatory Considerations Impacting Future Crypto Index Expansion
While Nasdaq’s filing marks a significant milestone, the path to approval involves rigorous scrutiny of each token’s compliance with U.S. securities laws and market integrity standards. The SEC’s evaluation will consider factors such as market liquidity, transparency, and potential risks associated with each asset. Additionally, ongoing advancements in blockchain technology and regulatory frameworks will influence how these assets are integrated into financial products. Industry analysts emphasize the importance of maintaining robust governance and investor protections to sustain confidence and support sustainable growth in the crypto ETF sector.
Conclusion
Nasdaq’s proposal to include XRP, SOL, ADA, and XLM in its cryptocurrency index represents a strategic effort to diversify U.S. crypto ETF offerings and broaden institutional access to altcoins. Pending SEC approval, this development could reshape the investment landscape by enabling more comprehensive exposure to emerging blockchain technologies within regulated financial products. As the market awaits the SEC’s decision, the move underscores the evolving regulatory environment and growing acceptance of digital assets beyond Bitcoin and Ethereum, signaling a potential new chapter for crypto investment in traditional markets.
