The Nasdaq Crypto Index™ (NCI) is a market-cap-weighted benchmark designed to represent the broader cryptocurrency market. Developed through a strategic partnership between Nasdaq and Hashdex, the NCI offers institutional and global investors a transparent, rules-based, and dynamically updated index that reflects the performance of leading digital assets.
Rebalanced quarterly, the index combines rigorous eligibility criteria with real-world investment applicability, making it a trusted reference point in the rapidly evolving crypto landscape.
How the NCI Works
The NCI is not just another crypto index—it's engineered for reliability, consistency, and investability. By leveraging Nasdaq’s financial market expertise and Hashdex’s deep understanding of blockchain ecosystems, the index ensures that only the most robust and widely adopted cryptocurrencies are included.
Each component of the index is weighted by market capitalization, meaning larger, more established assets have a proportionate influence on performance. This approach mirrors traditional financial indices like the S&P 500, bringing familiar logic to the digital asset world.
👉 Discover how top-tier investors are using crypto benchmarks to shape their portfolios.
Quarterly reconstitution allows the index to adapt to market changes while avoiding excessive turnover. This balance between stability and responsiveness makes the NCI particularly valuable for long-term investment strategies.
Strict Eligibility Criteria for Inclusion
To maintain integrity and ensure suitability for institutional adoption, crypto assets must meet a comprehensive set of requirements before being considered for inclusion in the NCI.
Tradable on Two Exchanges
Any digital asset in the index must be actively traded on at least two recognized cryptocurrency exchanges. This criterion ensures sufficient liquidity and market depth, reducing the risk of price manipulation and enhancing transparency.
Exchange diversity also supports global accessibility, enabling investors from different regions to engage with the underlying assets efficiently.
Supported by Institutional Custodians
Security is paramount in digital asset investing. Therefore, all eligible assets must be supported by at least one licensed and reputable custodian service.
Custodians provide secure storage solutions using advanced encryption, multi-signature wallets, and insurance mechanisms—critical protections that most investment funds cannot replicate in-house. This requirement enables seamless integration into regulated financial products such as ETFs and mutual funds.
👉 Learn how secure custody solutions are transforming institutional crypto adoption.
Minimum Market Representation
To qualify, a cryptocurrency must demonstrate meaningful market presence. Specifically, its median daily trading volume (in USD pairs) across core exchanges must be no less than 0.5% of the asset with the highest median volume.
This threshold ensures that only assets with substantial trading activity and investor interest are included—filtering out speculative or illiquid tokens that could distort index performance.
Free-Floating Pricing Mechanism
The NCI excludes any digital assets pegged to external values—whether through fiat collateral (like stablecoins), algorithmic mechanisms, or crypto-backed models.
By focusing solely on non-pegged, freely floating cryptocurrencies, the index captures true market-driven price discovery. This exclusion helps preserve the index’s role as a performance benchmark rather than a reflection of synthetic or engineered valuations.
Exchange Eligibility for ETP Listing
Perhaps one of the most stringent criteria is ETP (Exchange-Traded Product) eligibility on major regulated exchanges, including the SIX Swiss Exchange and Xetra (Deutsche Börse).
This means that every asset in the NCI must meet high regulatory, disclosure, and operational standards required for listing financial products in Europe’s most respected markets. It reinforces investor protection and underscores the index’s alignment with global compliance norms.
Core Keywords Driving Relevance
To align with search intent and improve visibility, key terms naturally integrated throughout this article include:
- Nasdaq Crypto Index
- NCI
- cryptocurrency benchmark
- market-cap-weighted crypto index
- institutional crypto investing
- digital asset ETF
- quarterly reconstitution
- crypto eligibility criteria
These keywords reflect both informational queries ("What is the Nasiadq Crypto Index?") and commercial intent ("How can I invest in a crypto index fund?"), positioning this content to serve a broad audience—from curious beginners to experienced investors.
Frequently Asked Questions (FAQ)
What is the Nasdaq Crypto Index (NCI)?
The Nasdaq Crypto Index™ (NCI) is a rules-based, market-cap-weighted index developed by Nasdaq and Hashdex to track the performance of eligible cryptocurrencies. It serves as a benchmark for investment products like ETFs and mutual funds.
How often is the NCI rebalanced?
The index undergoes quarterly reconstitution, typically reviewing and adjusting its components every three months to reflect current market conditions and maintain eligibility standards.
Which cryptocurrencies are included in the NCI?
The specific constituents vary after each rebalance based on eligibility criteria. However, only major, liquid, non-pegged digital assets supported by institutional custody and listed on multiple exchanges qualify for inclusion.
Can retail investors access the NCI?
While direct investment in the index isn't possible, retail investors can gain exposure through financial products like the Hashdex Nasdaq Crypto Index Fund, where available. These funds replicate the index’s composition.
Why does custody matter for index inclusion?
Institutional-grade custody ensures secure storage, regulatory compliance, and operational reliability—key factors for fund managers who lack technical infrastructure to self-custody digital assets safely.
Is the NCI similar to a crypto ETF?
No. The NCI itself is an index—a benchmark. However, it underlies actual investment products such as ETFs and funds offered by Hashdex, which track its performance.
Investment Products Linked to the NCI
While this article does not promote specific financial offerings or include promotional links, it's important to note that several regulated investment vehicles are designed to mirror the NCI’s performance.
These include exchange-traded funds (ETFs) and institutional funds that allocate assets according to the index’s weightings. They offer diversified exposure to top-tier cryptocurrencies without requiring individual asset selection.
Such products cater primarily to institutional clients but may become increasingly accessible to retail investors as regulatory frameworks evolve globally.
👉 Explore how diversified crypto index funds can reduce portfolio risk.
Final Thoughts: Why the NCI Matters
As digital assets mature into mainstream finance, reliable benchmarks like the Nasdaq Crypto Index play a crucial role in bridging innovation with trust. With clear rules, strict inclusion standards, and support from major financial institutions, the NCI sets a new standard for transparency in crypto investing.
Whether you're an investor evaluating exposure options or simply seeking to understand how crypto markets are being standardized, the NCI represents a significant step forward—one grounded in data, discipline, and long-term vision.