In a move that could significantly reshape the crypto ETF landscape, Nasdaq has proposed an expansion to its crypto benchmark index, now set to include major altcoins such as XRP, Solana (SOL), Cardano (ADA), and Stellar (XLM).
The proposal, filed with the U.S. Securities and Exchange Commission (SEC), comes as part of a broader push to provide institutional investors with diversified exposure beyond Bitcoin and Ethereum. The new benchmark is being introduced in collaboration with Hashdex, the Brazilian asset manager behind multiple crypto ETFs.
Let’s break down what’s changing, why it matters, and which assets are gaining mainstream ETF exposure.
The Filing That Changes the Game
According to the official SEC filing, the Hashdex Nasdaq Crypto Index US ETF will revise its benchmark methodology to reflect a broader set of digital assets. The updated methodology now includes a revised weight allocation model and clearer eligibility rules.
The document outlines:
- Inclusion of new assets like XRP, SOL, ADA, and XLM
- A rebalanced composition to better reflect market capitalization and liquidity
- Updated guardrails to manage volatility and risk
This update signals that Nasdaq is ready to accommodate a more nuanced crypto investment strategy for traditional finance players.
Who’s In the New Crypto ETF Benchmark?
The most notable additions to the updated index include:
- XRP – Back in the spotlight after Ripple’s partial win against the SEC.
- Solana (SOL) – Gaining ground due to high DeFi and NFT activity.
- Cardano (ADA) – Known for its academic rigor and growing L2 presence.
- Stellar (XLM) – Focused on cross-border payments and real-world asset tokenization.
These coins join existing constituents like Bitcoin and Ethereum to create a multi-asset ETF benchmark aimed at capturing broader market sentiment and adoption.
Why This Benchmark Expansion Matters
ETF benchmarks are critical for fund managers, traders, and institutions seeking regulated exposure to the crypto market. Until now, most ETFs have heavily favored BTC and ETH. The inclusion of altcoins marks a turning point in institutional appetite.
Here’s why it matters:
- Legitimacy boost: XRP and XLM gain credibility via ETF representation.
- Diversification: Investors get access to assets with different use cases (payments, smart contracts, NFTs).
- Liquidity drivers: Listing in major ETFs typically leads to higher trading volumes and reduced volatility.
This expanded index could also set the stage for future product launches, including multi-asset crypto funds targeting retail and institutional segments alike.
Final Thoughts: The Institutional Era of Altcoins?
Nasdaq’s move to update its crypto ETF benchmark is more than just an index tweak — it’s a clear sign that the narrative is shifting beyond Bitcoin. With altcoins like XRP, SOL, ADA, and XLM stepping into the spotlight, traditional finance is preparing for a broader crypto future.As the ETF race intensifies, projects with strong fundamentals and legal clarity could soon become cornerstones of institutional portfolios.
