The Nasdaq has recently made updates to its crypto index, expanding it to include XRP, Stellar (XLM), Solana (SOL), and Cardano (ADA). This move reflects the growing importance of these digital assets in the overall market.
The Nasdaq Crypto US Index (NCIUS) now aims to provide a comprehensive measurement of the performance of a significant portion of the digital asset market. Initially, the index only tracked Bitcoin (BTC) and Ethereum (ETH), but the addition of these four new crypto assets demonstrates a wider scope in tracking the market trends.
Hashdex, a financial firm, highlighted this change in a recent filing with the Securities and Exchange Commission (SEC). The firm offers an exchange-traded fund (ETF) that follows the NCIUS, but due to SEC restrictions, it can only hold BTC and ETH. As a result, Hashdex has implemented a “sampling strategy” to balance these holdings accurately, but there is a risk of potential tracking error due to the inability to track the other assets in the index.
In a separate development, Nasdaq filed a rule change with the SEC in March to allow Hashdex’s ETF to switch its benchmark index from NCIUS to the Nasdaq Crypto Index (NCI). The NCI includes all six aforementioned crypto assets, along with Litecoin (LTC), Uniswap (UNI), and Chainlink (LINK). The SEC is currently reviewing this proposed rule change and is expected to make a decision by November.
As the crypto market continues to evolve and expand, these updates to the Nasdaq crypto index reflect a broader focus on capturing the performance of a diverse range of digital assets. Investors can stay informed about these developments by following updates on platforms like X, Facebook, and Telegram.
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