The Nasdaq has recently made updates to its crypto index by adding XRP, Stellar (XLM), Solana (SOL), and Cardano (ADA).
The Nasdaq Crypto US Index (NCIUS) is designed to gauge the performance of a significant portion of the overall digital asset market, as stated on the Nasdaq Global Indexes website.
Initially, the index only included Bitcoin (BTC) and Ethereum (ETH), but it has expanded to include the four additional crypto assets earlier this month.
Hashdex, a financial firm, has highlighted this change in a recent filing with the Securities and Exchange Commission (SEC).
While Hashdex offers an exchange-traded fund (ETF) that tracks the NCIUS, it is limited to holding BTC and ETH due to SEC regulations on the product.
Hashdex has implemented a “sampling strategy” to balance the BTC and ETH holdings for accurate exposure to the NCIUS. However, the firm acknowledges the additional risk of potential tracking errors since it cannot track the other assets in the index.
In March, Nasdaq submitted a rule change to the SEC to allow Hashdex’s ETF to switch its benchmark index from NCIUS to the Nasdaq Crypto Index, which includes all six of the mentioned crypto assets along with Litecoin (LTC), Uniswap (UNI), and Chainlink (LINK).
The SEC is currently reviewing the proposed rule change and is expected to make a decision by November.
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