Based on lated reports, XRP has been formally added to the Nasdaq Crypto US Settlement Price Index (NCIUS), joining Bitcoin (BTC), Ethereum (ETH), Cardano (ADA), Solana (SOL), and Stellar Lumens (XLM). While this latest XRP Nasdaq Index amplifies XRP’s visibility among regulated financial instruments, experts have aired that actual fund exposure remains limited due to existing ETF constraint.
A New Chapter for XRP: From Lawsuits to Benchmarks
XRP’s formal addition to a Nasdaq index is a statement that the asset might no longer be on the regulatory fringe. From battling the SEC in a years-long lawsuit to now being priced into a Nasdaq-tracked benchmark, XRP’s evolution shows the maturing lens through which institutions are starting to view utility-based crypto assets.
The update came via a June 6 filing by the Hashdex Nasdaq Crypto Index US ETF (ticker: NCIQ), which confirmed the revised index composition. While BTC and ETH were already foundational components, Nasdaq’s broader reconfiguration added XRP, ADA, SOL, and XLM to the mix, effective June 2. This follows XRP’s earlier inclusion in the Nasdaq Crypto Index (NCI) on June 3, 2024.
Institutional Promise, Regulatory Limits
Despite XRP’s Nasdaq Index debut, reports say the NCIQ ETF cannot yet hold XRP due to current U.S. regulatory restrictions. The fund is limited to BTC and ETH, a fact that raises concerns about tracking error, a disconnect between the fund’s holdings and the benchmark’s composition. In its filing, Hashdex clearly acknowledged this risk:
“Under current regulatory restrictions, the Trust is only permitted to hold Bitcoin and Ether, and is not permitted to hold the new index constituents, and as such, the risk of potential tracking error is increased.”
What this means is that although XRP is now part of the pricing benchmark, investors in the ETF won’t gain direct XRP exposure unless regulations change. This tension between benchmark recognition and fund structure encapsulates the transitional moment crypto is currently experiencing.
What Nasdaq’s Broader Crypto Strategy Tells Us
The addition of XRP and other assets to the Nasdaq Index also reflects Nasdaq’s larger ambitions. In a separate March 7, 2025, filing, Nasdaq reportedly proposed transitioning the NCIQ ETF’s benchmark from NCIUS to the more expansive Nasdaq Crypto Index (NCI).
The index features nine assets: BTC, ETH, XRP, ADA, SOL, XLM, Chainlink (LINK), Litecoin (LTC), and Uniswap (UNI). If approved by the SEC, this change would allow ETFs like NCIQ to directly hold XRP and its peer tokens.
A decision is expected by November 2, 2025. If favorable, it could transform institutional access to altcoins, introducing new flows of capital and potentially lowering volatility through ETF-stabilized markets.
XRP Market Reaction: Muted but Meaningful
Despite the headline inclusion in the XRP Nasdaq index, the market response was measured. XRP has still traded around $2.22–$2.24, showing restrained momentum. Technical indicators suggest resistance near $2.30 and support around $2.14. While the price hasn’t surged, the narrative value of this milestone is substantial.
By joining a regulated pricing index, XRP gains entry into risk models, custody frameworks, and portfolio construction tools used by asset managers. It becomes easier to justify its inclusion in forward-looking crypto baskets or multi-asset funds operating under strict compliance filters.
The XRP Nasdaq index expansion also exposes a paradox: regulatory clarity boosts trust, but regulatory delay blocks execution. Until ETFs can hold assets like XRP, they remain theoretical exposure vehicles for many institutions, capable of pricing XRP, but not investing in it.
Nonetheless, XRP’s position in the Nasdaq index elevates its profile. It sets the groundwork for institutional engagement, provided regulators close the gap between index recognition and asset eligibility.
Should the SEC approve the NCI benchmark proposal later this year, XRP could transition from being a “named” component to a “held” one.
Conclusion: Benchmarked, But Not Yet Embraced
Including XRP in the Nasdaq Crypto US Settlement Price Index is a turning point. It symbolizes trust, even as regulatory limitations continue to restrain ETF adoption. Investors watching XRP should recognize the significance of this development, but also understand its limitations.
For XRP to benefit fully from its institutional repositioning, regulatory bodies like the SEC must endorse its inclusion in actual fund holdings. Until then, XRP’s index presence stands as a formal acknowledgment of its legitimacy, one that’s waiting to be matched with capital.
FAQs
What is the XRP Nasdaq index inclusion?
It refers to XRP being added to the Nasdaq Crypto US Settlement Price Index, a regulated benchmark that tracks the performance of select digital assets.
Can ETFs now invest in XRP directly?
Not yet. Regulatory rules currently restrict ETFs like Hashdex’s NCIQ to Bitcoin and Ethereum only.
What is tracking error and why does it matter?
Tracking error is the difference between an ETF’s returns and its benchmark index. Since NCIQ can’t hold XRP, its performance may diverge from the expanded index.
When might XRP become ETF-eligible?
The SEC is reviewing a Nasdaq proposal to adopt a broader index. A decision is expected by November 2, 2025.
How does index inclusion affect XRP’s price?
While price action has been modest, index inclusion improves XRP’s credibility and lays the foundation for future institutional investment.
Glossary
XRP Nasdaq Index: Short-hand for XRP’s inclusion in the Nasdaq Crypto US Settlement Price Index, signaling its recognition in institutional benchmarks.
Nasdaq Crypto US Settlement Price Index (NCIUS): A price reference benchmark initially limited to BTC and ETH, now expanded to include XRP and others.
Nasdaq Crypto Index (NCI): A broader index comprising nine top crypto assets used for benchmarking ETF performance, pending SEC approval.
Tracking Error: The variance between an ETF’s return and its benchmark index, usually due to asset holding mismatches.
Regulatory Filing (SEC Rule 19b-4): A formal proposal to amend exchange rules, here used by Nasdaq to request broader ETF asset inclusion.
Sources
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