What Is the Nasdaq Crypto Index and Why Does It Matter?

On June 2, 2025, the Nasdaq Crypto Index (NCI) and its U.S. sub-index (NCIUS) underwent a key restructuring: Stellar Lumens (XLM) entered the NCI, replacing Avalanche (AVAX), while the NCIUS index simultaneously incorporated Cardano (ADA), Solana (SOL), XLM and XRP The four major tokens have broken through the binary framework of Bitcoin and Ethereum for the first time.
This adjustment is not only a change in components but also a recalibration of the traditional financial system’s structural value of encryption assets.

Index Reconfiguration: Dynamically Reflecting the Evolution of the Encryption Market

The Nasdaq Crypto Index is not a static product, but rather undergoes regular adjustments to its components every six months to ensure its representativeness and alignment with market influence. The reconfiguration for the first half of 2025 was executed on June 2, based on strict standards of liquidity, compliance, and market capitalization.

Changes in NCI Index Components: New Addition Stellar Lumens (XLM) and removed Avalanche (AVAX). The adjusted NCI includes nine types of encryption assets, covering multiple tracks such as payments, smart contracts, and decentralized trading.

NCIUS Index Expansion: As the benchmark index for compliant financial products in the United States, NCIUS previously only included BTC and ETH. This time, it has added four types of assets in one go: Cardano (ADA), Solana (SOL), Stellar Lumens (XLM), and XRP (XRP).
This change directly lowers the threshold for U.S. investors to access diversified encryption assets.

SEC Proposal: Opening the Door to Institutional Diversification

On June 2, Nasdaq submitted a rule change proposal (SR-NASDAQ-2025-016) to the SEC, planning to officially include the aforementioned four types of tokens into the broader Nasdaq Crypto Index (NCI) and allow ETF products linked to these assets.

The core of this proposal is to address the “tracking error” dilemma of current ETF products. Taking the Hashdex Nasdaq Crypto Index US ETF (NCIQ) as an example, its goal is to track the NCI Index (which includes nine tokens), but due to U.S. regulations, it can only hold BTC and ETH, leading to significant deviation.

The SEC has extended the review period to November 2, 2025. The market expects that if approved, NCIQ will become the first multi-asset encryption index ETF in the United States, with assets covering BTC, ETH, XRP, SOL, ADA, XLM, LINK, LTC, and UNI.

Institutional Entry: Lowering Barriers and Increasing Liquidity

The inclusion of indices creates a positive cycle for the tokens themselves. The anticipated influx of institutional funds is expected to significantly enhance liquidity and price discovery efficiency. Historical data shows that after Bitcoin was included in indices and ETF approvals, its 30-day volatility decreased by 18%.

The case of XRP is particularly typical: in April 2025, the court’s final ruling recognized its non-security nature, eliminating key compliance obstacles. Over six months, its price rose by 7%, with a market capitalization reaching $130.93 billion. Its selection for the index further strengthens its positioning as a payment currency.

Traditional capital has long been ready to go. By the end of 2024, the assets under management of Bitcoin and Ethereum ETFs in the United States will reach $138 billion, and the new index will open the door to hundreds of billions in incremental funds.

Encryption Market’s New Watershed

The reconstruction of the Nasdaq index is not only a component adjustment but also marks the acceleration of the standardization process for the classification of encryption assets. From trading platforms to index providers, and then to ETF issuers, traditional financial infrastructure has fully penetrated the encryption field.

The NCIUS index serves as a compliance benchmark, and its constituent tokens must meet strict criteria: they must be listed on regulated trading platforms in the United States or serve as compliant underlying assets for derivatives. This definition will compel global trading platforms to strengthen their compliance operations.

As the SEC approval window approaches in November, the market is focusing on the trends of products like NCIQ. The trading volume of this ETF has significantly increased recently, with a single-day trading volume reaching 243,500 shares on June 16, indicating an intention for early fund allocation.

The gears of the encryption world and Wall Street are accelerating their engagement. After the restructuring of the Nasdaq index, Solana has firmly established itself in the top five by market capitalization at a price point of $150, while XRP’s daily trading volume has increased by 40%, with institutional orders surpassing retail for the first time.

Encryption assets are no longer wandering on the fringes of finance; they have etched their coordinates in the index system of the world’s largest exchanges.