Nasdaq has submitted a Rule 19b-4 filing to the U.S. Securities and Exchange Commission (SEC) to extend the benchmark of its Hashdex Nasdaq Crypto Index US ETF (NCIQ). Currently, the ETF tracks only Bitcoin
$ 109,761 and Ethereum
$ 2,789. However, Nasdaq aims to transform this into the Nasdaq Crypto Index (NCI), which covers nine major cryptocurrencies. Should the SEC approve the proposal, XRP, Solana
$ 165, Cardano
$ 0.713869, Stellar Lumens, Chainlink
$ 15, Litecoin, and Uniswap will also be included. Presently, SEC regulations restrict the ETF to holding only BTC and ETH, leading to tracking errors. The SEC’s decision deadline is set for November 2, 2025.
The Foundation of the Proposed Change
The application aims to transition NCIQ from a two-asset structure to a multi-asset view. By incorporating seven significant altcoins along with BTC and ETH, the new index presents a broader snapshot of the cryptocurrency market. This allows investors to track major trends within the sector using a single benchmark.
Due to current regulations, Hashdex cannot invest directly in all cryptocurrencies within the index. To mitigate performance differences, the company employs a “sampling” model to create a representative portfolio. This method attempts to bridge the gap between tracking objectives and actual asset constraints.
SEC Approval Process and Timeline Details
The SEC has the authority to approve or reject Nasdaq’s proposal by November 2, 2025. If the SEC grants approval, the ETF can invest in all nine cryptocurrencies in the index. This would enable altcoin exposure within a regulatory framework, potentially increasing institutional demand.
The regulatory body’s cautious stance in recent times casts uncertainty over all multi-ETF applications. Nevertheless, the application hints at a potential extension of the regulatory approval mechanism towards diversified cryptocurrency investments. Market observers are closely watching the decision’s potential impact on both the ETF ecosystem in the USA and altcoin liquidity.
Potential Impacts of the Expanded Index
Adding altcoins to the benchmark might alter NCIQ’s risk-return profile. More assets could balance the index’s volatility structure and provide investors with access to a diversified cryptocurrency basket via a single product.
This amendment could be a significant milestone for altcoin representation in regulated products. As the market grows, the cryptocurrencies included in the index are expected to reach a broader investor base, potentially boosting liquidity and strengthening price discovery processes in the sector.
