The world of digital assets took a significant step toward institutional integration as Nasdaq filed a request with the U.S. Securities and Exchange Commission (SEC) to expand its cryptocurrency index. On June 7, 2025, the global financial exchange giant submitted a rule change proposal aiming to include four major cryptocurrencies—XRP, Solana (SOL), Cardano (ADA), and Stellar Lumens (XLM)—into its Nasdaq Crypto Index (NCI). This move could reshape how investors gain exposure to the evolving crypto market through regulated financial products.
Expanding the Nasdaq Crypto Index
Currently, the Hashdex Nasdaq Crypto US Settlement Price Index ETF (NCIQ) tracks the Nasdaq Crypto US Settlement Price Index (NCIUS), which includes a limited number of digital assets. The proposed update would broaden the scope to encompass nine qualifying cryptocurrencies, integrating XRP, SOL, ADA, and XLM into the benchmark.
This expansion reflects growing recognition of these assets’ market maturity, liquidity, and compliance posture. By incorporating more diverse tokens beyond Bitcoin and Ethereum, Nasdaq is signaling confidence in the long-term viability of select altcoins within a regulated investment framework.
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Why These Four Cryptocurrencies?
Each of the four newly proposed additions brings unique technological strengths and real-world use cases to the table:
- XRP – Developed by Ripple Labs, XRP is designed for fast, low-cost international payments. It has been widely adopted by financial institutions for cross-border settlements, making it one of the most enterprise-integrated blockchains.
- Solana (SOL) – Known for its high throughput and low transaction fees, Solana supports a vibrant ecosystem of decentralized applications (dApps), NFTs, and DeFi protocols. Its performance-driven architecture positions it as a strong competitor to Ethereum.
- Cardano (ADA) – Built on peer-reviewed research and a methodical development approach, Cardano emphasizes scalability, sustainability, and security. Its layered blockchain design allows for smart contracts and decentralized applications while maintaining energy efficiency.
- Stellar Lumens (XLM) – Similar to XRP, Stellar focuses on connecting financial institutions and enabling low-cost global transactions. It also supports token issuance and aims to promote financial inclusion, particularly in underserved markets.
These projects have demonstrated resilience, active development, and increasing adoption—key factors that likely influenced Nasdaq’s selection criteria.
Implications for Institutional Investors
The inclusion of these assets in a Nasdaq-managed index could significantly boost institutional participation in the crypto space. ETFs tracking regulated indices provide a compliant, transparent, and auditable way for traditional investors to access digital assets without directly holding them.
For asset managers, pension funds, and insurance companies, this development lowers the barrier to entry by offering a familiar investment vehicle backed by a trusted financial infrastructure. It also enhances price discovery, reduces volatility over time, and promotes market stability.
Moreover, SEC review of such filings adds an additional layer of scrutiny, potentially reinforcing investor confidence in the legitimacy and compliance readiness of the included cryptocurrencies.
Market Reaction and Investor Sentiment
Following news of the filing, markets responded positively. ADA saw a 1.18% uptick, while XLM gained 0.75% within 24 hours—a modest but meaningful reaction given broader market conditions. While price movements may be temporary, the long-term implications are profound.
Analysts suggest that even if full approval takes time, the mere act of Nasdaq proposing these additions validates the underlying projects. It may also encourage other exchanges and index providers to follow suit, further legitimizing the altcoin sector.
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Regulatory Landscape and SEC Considerations
The SEC’s response will be closely watched. Historically, the regulator has maintained a cautious stance on cryptocurrencies, particularly those it may view as unregistered securities. However, recent developments—including approvals of spot Bitcoin and Ethereum ETFs—suggest a gradual shift toward structured oversight rather than outright resistance.
Nasdaq’s application is likely designed with regulatory compliance in mind. The exchange may leverage its reputation for stringent listing standards to argue that only vetted, liquid, and transparent assets are included. This careful approach could increase the chances of SEC approval.
Still, challenges remain. The classification of XRP and ADA remains sensitive due to past regulatory actions. In 2023, a U.S. court ruled that XRP is not inherently a security when sold to retail investors—a precedent that may support its inclusion here.
Frequently Asked Questions
Q: What is the Nasdaq Crypto Index (NCI)?
A: The NCI is a benchmark index designed to track the performance of major cryptocurrencies. It serves as the foundation for financial products like ETFs, offering investors diversified exposure to the digital asset market.
Q: Will adding these coins guarantee higher prices?
A: Not necessarily. While inclusion can boost visibility and institutional demand, prices depend on broader market dynamics, macroeconomic factors, and investor sentiment.
Q: Is this the same as approving a new ETF?
A: No. This is a rule change request to expand an existing index. However, it could lead to new or updated ETFs that track the expanded index.
Q: How does this affect retail investors?
A: Retail investors benefit from greater access to diversified crypto investments through regulated funds. It also increases transparency and reduces counterparty risk compared to direct holdings.
Q: When will the decision be made?
A: The SEC typically takes several weeks to months to review such filings. Public comments may also influence the timeline and outcome.
Q: Could other coins be added in the future?
A: Yes. The framework appears scalable. Assets like Polkadot (DOT), Avalanche (AVAX), or Chainlink (LINK) could be considered in future updates based on liquidity, security, and compliance metrics.
The Road Ahead for Crypto Legitimization
Nasdaq’s move underscores a broader trend: the convergence of traditional finance and decentralized technologies. As more financial institutions embrace blockchain-based assets through regulated channels, the line between legacy markets and crypto blurs.
This filing isn’t just about four coins—it’s about setting a precedent for how digital assets are evaluated, integrated, and governed within mainstream finance. If approved, it could pave the way for more sophisticated crypto derivatives, structured products, and global index funds.
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Final Thoughts
The proposed inclusion of XRP, SOL, ADA, and XLM in the Nasdaq Crypto Index marks a pivotal moment in crypto’s journey toward maturity. It reflects growing acceptance among financial gatekeepers and highlights the importance of innovation grounded in compliance and scalability.
For investors, developers, and enthusiasts alike, this development offers both opportunity and validation. As regulatory clarity improves and infrastructure strengthens, the next era of digital finance looks increasingly inclusive—and institutionally supported.
Whether you're tracking market trends or planning long-term investments, staying informed about structural changes like this one is essential in navigating the dynamic world of cryptocurrency.