Nasdaq Crypto Index Expansion: XRP, Solana, Cardano, and Stellar Join the Ranks

Nasdaq Proposes Expansion of Crypto Index to Include Leading Altcoins

Nasdaq has taken a bold step toward diversifying its cryptocurrency offerings by submitting a proposed rule change to the U.S. Securities and Exchange Commission (SEC) on June 2, 2025. The proposal aims to expand the Nasdaq Crypto Index (NCI) by including four prominent altcoins—XRP, Solana (SOL), Cardano (ADA), and Stellar Lumens (XLM)—alongside the existing Bitcoin (BTC) and Ethereum (ETH). This move signals growing confidence in the maturity of the digital asset market and could reshape institutional investment strategies.

Why the Inclusion of XRP, Solana, Cardano, and Stellar Matters

The addition of these altcoins to the Nasdaq Crypto Index is significant for several reasons:

• Diversification Benefits: By broadening the index, Nasdaq aims to reduce risk for investors through exposure to multiple assets. Each altcoin brings unique use cases to the table, such as XRP’s cross-border payment capabilities, Solana’s scalable smart contracts, Cardano’s research-driven blockchain development, and Stellar’s low-cost transaction system.

• Institutional Visibility: Inclusion in a Nasdaq-backed index often boosts visibility and liquidity for cryptocurrencies. Institutional recognition can drive increased trading volumes and price stability, as seen with Bitcoin and Ethereum following their ETF approvals.

• Regulatory Clarity: XRP’s inclusion is particularly noteworthy given its legal history. A court ruling in April 2025 clarified that XRP is not a security, reducing regulatory hurdles and bolstering investor confidence.

Timeline and Regulatory Review

The SEC is expected to deliver a decision on Nasdaq’s proposal by November 2, 2025, following a period for public comments and regulatory review. Between June and November, investors should monitor key developments, including feedback from regulators and market reactions to the proposal. Early optimism has already been reflected in the market, with XRP trading at $2.226 and Solana at $150 as of June 9, 2025.

Implications for the Hashdex Nasdaq Crypto Index US ETF

Currently, the Hashdex Nasdaq Crypto Index US ETF (NCIQ) tracks the Nasdaq Crypto US Settlement Price Index (NCIUS), which is limited to Bitcoin and Ethereum due to regulatory constraints. This creates a tracking error, as NCIQ aims to replicate the broader NCI but is restricted to the narrower NCIUS. Approval of the rule change would allow NCIQ to invest directly in all nine cryptocurrencies in the NCI, including XRP, Solana, Cardano, Stellar, Chainlink (LINK), Litecoin (LTC), and Uniswap (UNI). This would reduce discrepancies and offer investors broader exposure to the crypto market.

Market Impact and Institutional Adoption

The inclusion of XRP, Solana, Cardano, and Stellar in the Nasdaq Crypto Index could significantly boost their market presence. Institutional interest in these altcoins is expected to rise, driven by their unique strengths:

• XRP: Positioned as a frontrunner for cross-border payment systems, XRP’s market cap reached $130.93 billion as of June 9, 2025, with a 7% price increase over the last six months.

• Solana: Known for its scalability, Solana has attracted attention for its ability to handle high transaction volumes efficiently.

• Cardano: With a focus on sustainability and research-driven development, Cardano continues to appeal to long-term investors.

• Stellar: Stellar’s low-cost transaction system makes it a strong contender for global payment solutions.

The Road Ahead for Crypto ETFs

If the SEC approves Nasdaq’s proposal, it could pave the way for fully diversified U.S.-listed crypto index ETFs, marking a significant shift toward mainstream financial integration of altcoins. This development aligns with growing institutional demand for diversified crypto investment vehicles, as evidenced by the $138 billion in assets under management for Bitcoin and Ethereum ETFs by late 2024.

Conclusion

Nasdaq’s proposed expansion of the Nasdaq Crypto Index represents a pivotal moment for altcoin adoption. By including XRP, Solana, Cardano, and Stellar, Nasdaq is signaling confidence in the evolving digital asset market. Approval of this proposal could enhance the Hashdex Nasdaq Crypto Index US ETF, reduce tracking errors, and provide investors with diversified exposure to leading cryptocurrencies. As institutional interest in digital assets continues to grow, this move underscores the increasing alignment between traditional finance and the crypto ecosystem.