Nasdaq has submitted a formal proposal to the U.S. Securities and Exchange Commission (SEC) to expand its flagship Nasdaq Crypto Index (NCI) by including four additional cryptocurrencies: XRP, Solana (SOL), Cardano (ADA), and Stellar (XLM). Currently, the index covers only Bitcoin and Ethereum, but the proposed rule change aims to broaden the scope to six assets, aligning the holdings of the Hashdex Nasdaq Crypto Index US ETF (ticker: NCIQ) with the full index.
This move reflects increasing institutional interest in diversifying crypto exposure beyond the two largest digital assets, Bitcoin and Ethereum. The ETF currently can only hold Bitcoin and Ethereum due to regulatory restrictions, but approval of this proposal would permit it to include the four altcoins, potentially resulting in significant new capital inflows.
The SEC is expected to deliver its decision by November 2, 2025. The timing coincides with improved regulatory clarity, especially regarding XRP, which in April 2025 was ruled by a federal court not to be a security, removing a major legal barrier to its broader adoption.
Experts view Nasdaq's proposal as a pivotal step in mainstreaming select altcoins within traditional finance. Inclusion in such a Nasdaq-linked financial product would deliver these tokens unprecedented exposure to institutional investors, encouraging further crypto product development focused on diversified digital asset holdings.
Historically, ETF approvals for Bitcoin and Ethereum led to increased liquidity and institutional participation; analysts suggest a similar impact could occur for XRP, SOL, ADA, and XLM. The proposal also aligns with broader industry trends where financial institutions increasingly integrate digital assets as strategic portfolio components rather than purely speculative instruments.
Should the SEC approve the rule change, the ETF could attract billions in new institutional funds towards these altcoins, enhancing their market legitimacy and liquidity. The decision is considered significant for the evolution of crypto investment vehicles and may accelerate altcoin adoption in regulated markets.