Nasdaq’s Crypto Index: A New Era or Just Another Coin Toss? 💰🤔

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On the fateful day of June 2, 2024, Nasdaq, that venerable institution of finance, decided to shake things up a bit. With a flourish befitting a magician pulling rabbits from hats, they filed a proposed rule change with the U.S. Securities and Exchange Commission (SEC) under Rule 19b-4. What was the grand plan, you ask? Why, to broaden the benchmark for digital assets, of course! And what better way to do that than by adding the illustrious altcoins: XRP, Solana (SOL), Stellar Lumens (XLM), and Cardano (ADA)? 🎩✨

Ah, but this is not merely a whimsical addition; it is a strategic maneuver to allow the Hashdex Nasdaq Crypto Index US ETF (NCIQ) to abandon its old, dusty benchmark—the Nasdaq Crypto US Settlement Price Index (NCIUS)—in favor of a more expansive and, dare I say, glamorous benchmark known as the Nasdaq Crypto Index (NCI). Because who wouldn’t want to be part of a broader family of cryptocurrencies? It’s like inviting the cool kids to your birthday party! 🎉

In a recent act of benevolence, Nasdaq has refreshed the NCIUS by adding these four shiny new coins to its collection. Now, alongside the ever-popular Bitcoin (BTC) and Ethereum (ETH), we have a veritable cornucopia of digital assets. It’s like a buffet where you can finally have more than just breadsticks! 🍞

However, let us not forget the ever-watchful SEC, which, like a strict parent, has imposed laws that currently restrict the Hashdex ETF to holding only BTC and ETH. This creates a delightful little conundrum known as tracking error risk. Imagine trying to follow a recipe that only allows you to use half the ingredients! Hashdex, in its infinite wisdom, employs a sampling mechanism to mitigate this mismatch, though complete alignment with the index remains as elusive as a cat in a room full of rocking chairs. 🐱

The NCI now boasts a lineup of nine cryptocurrencies: Bitcoin (BTC), Ethereum (ETH), XRP, Solana (SOL), Cardano (ADA), Stellar Lumens (XLM), Chainlink (LINK), Litecoin (LTC), and Uniswap (UNI). Quite the party, wouldn’t you say? If the SEC decides to play nice and grants its approval, the ETF will be free to invest in all these coins. The final verdict from the SEC is expected by November 2, 2025. Will they bless this endeavor, or will it be another case of “not today, my friend”? Only time will tell! ⏳

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2025-06-07 18:12