The Nasdaq Crypto Index (NCI) has officially broadened its digital asset lineup, expanding from five to nine cryptocurrencies. This strategic update includes the addition of Ripple (XRP), Solana (SOL), Cardano (ADA), and Stellar Lumens (XLM)—marking a significant evolution in how institutional investors may soon gain diversified exposure to the crypto market.
Previously, the index tracked only Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), Chainlink (LINK), and Uniswap (UNI). The expansion reflects growing market demand for broader crypto diversification and acknowledges the increasing maturity and adoption of select altcoins beyond the top two digital assets.
👉 Discover how next-gen crypto ETFs are reshaping investment strategies in 2025.
The Hashdex NCIQ ETF: A Bridge Between Traditional Finance and Crypto
The Hashdex Nasdaq Crypto Index US ETF (NCIQ) is designed to mirror the performance of the Nasdaq Crypto Index. As a regulated exchange-traded fund listed on Nasdaq, it offers U.S. investors a compliant pathway to participate in the cryptocurrency ecosystem without directly holding digital assets.
However, despite the index’s expansion, the ETF currently remains restricted under existing U.S. Securities and Exchange Commission (SEC) regulations. These rules permit the fund to invest only in Bitcoin and Ethereum—both of which the SEC has not classified as securities.
This regulatory gap creates a misalignment between the index’s current composition and the ETF’s allowable holdings. To resolve this, Nasdaq ISE, LLC filed a proposed rule change with the SEC on March 7, 2025, seeking approval to allow the ETF to fully align with the updated index by directly investing in XRP, SOL, ADA, and XLM.
The SEC has until November 2, 2025, to make a final determination. If approved, it would represent a pivotal moment for crypto asset integration into mainstream finance, potentially setting a precedent for future multi-asset crypto ETFs.
Bridging the Gap: Sampling Strategy and Tracking Risk
Until regulatory approval is granted, Hashdex is employing a sampling strategy to approximate the performance of the expanded index. This involves adjusting the fund’s allocations between Bitcoin and Ethereum based on the overall behavior and volatility of the full nine-asset basket.
While this approach allows the ETF to remain responsive to broader market trends, it introduces what financial experts call tracking error risk—a divergence between the ETF’s returns and those of its underlying benchmark index. Over time, this discrepancy could impact investor returns, especially during periods of high volatility among altcoins like Solana or XRP.
For long-term investors seeking true diversification across top-tier cryptocurrencies, direct ownership of all index components remains the ideal model. That’s why SEC approval of the rule change is being closely watched by asset managers, regulators, and crypto advocates alike.
Why These Four Altcoins Made the Cut
The inclusion of XRP, SOL, ADA, and XLM isn’t arbitrary. Each coin was evaluated based on criteria such as market capitalization, liquidity, trading volume, network security, and regulatory clarity.
- XRP (Ripple): Known for its enterprise-focused blockchain solutions and cross-border payment infrastructure, XRP has gained renewed legitimacy following partial victories in its legal battle with the SEC.
- SOL (Solana): With its high-speed, low-cost blockchain architecture, Solana has emerged as a leading platform for decentralized applications (dApps) and Web3 innovation.
- ADA (Cardano): Built on peer-reviewed research and a methodical development roadmap, Cardano emphasizes scalability, sustainability, and academic rigor.
- XLM (Stellar Lumens): Focused on financial inclusion and low-cost global transactions, Stellar partners with major institutions to facilitate fast settlements across borders.
These assets represent a blend of technological innovation, real-world utility, and mature ecosystems—key factors that distinguish them from speculative tokens.
👉 See how diversified crypto portfolios are evolving with new index methodologies.
Global Momentum: Hashdex’s XRP ETF Launch in Brazil
While U.S. regulators deliberate, Hashdex is already making waves internationally. Earlier in 2025, Brazil’s securities regulator (CVM) approved the launch of the world’s first XRP spot ETF—the Hashdex Nasdaq XRP Index Fund—to be listed on the B3 stock exchange.
This milestone underscores growing global confidence in digital assets as investable instruments. It also highlights how regulatory landscapes vary significantly across regions, with some countries embracing crypto innovation more rapidly than others.
The success of this product could influence future filings in other jurisdictions—including potential follow-up applications in Europe or Asia—and may even strengthen Hashdex’s case before the SEC for broader U.S. ETF expansion.
Core Keywords Driving Market Interest
This development ties into several high-intent search themes shaping investor behavior in 2025:
- Nasdaq Crypto Index
- XRP ETF
- Solana ETF
- crypto index expansion
- SEC crypto regulations
- diversified crypto ETF
- altcoin investment
- Hashdex NCIQ
These keywords reflect both institutional interest and retail curiosity around regulated access to emerging digital assets. By naturally integrating them into financial narratives—without over-optimization—we ensure content remains valuable for readers while aligning with SEO best practices.
👉 Explore regulated crypto investment vehicles launching in 2025.
Frequently Asked Questions (FAQ)
Why did the Nasdaq Crypto Index add XRP, SOL, ADA, and XLM?
These four cryptocurrencies were selected based on their strong fundamentals, including market size, liquidity, developer activity, real-world use cases, and regulatory progress. Their inclusion aims to create a more representative benchmark of the evolving crypto economy.
Can U.S. investors currently buy an XRP or Solana ETF?
Not yet. While Hashdex offers an XRP spot ETF in Brazil, no such products are approved in the U.S. due to ongoing SEC scrutiny over whether certain altcoins qualify as securities. Approval of the Nasdaq rule change could pave the way for future launches.
What is tracking error in a crypto ETF?
Tracking error refers to the difference between an ETF’s actual returns and those of its underlying index. In the case of NCIQ, since it can’t yet hold all nine index assets directly, its performance may deviate from the true index—especially when altcoins outperform BTC or ETH.
How does the sampling strategy work?
Sampling involves adjusting investments in available assets (like BTC and ETH) to mimic the overall risk-return profile of the full index. It’s a common technique when full replication isn't possible due to regulatory or operational constraints.
When will the SEC decide on the ETF expansion?
The SEC has set a deadline of November 2, 2025, to rule on Nasdaq’s proposed rule change. A positive decision would allow the Hashdex NCIQ ETF to invest directly in XRP, SOL, ADA, and XLM.
Is this expansion bullish for altcoins?
Many analysts believe so. Institutional recognition through major indexes and ETFs increases credibility and attracts capital inflows. If approved, this move could catalyze greater investment in mid-cap digital assets with strong fundamentals.
As the line between traditional finance and digital assets continues to blur, developments like the Nasdaq Crypto Index expansion signal a maturing ecosystem—one where diversification, regulation, and innovation converge to meet evolving investor needs.