- If approved, the Hashdex Crypto ETF would gain flexibility to invest in all nine assets, apart from just Bitcoin or Ethereum, on the Nasdaq Crypto Index, including Cardano.
- Market optimism for Cardano’s ETF approval has surged, with the probability rising to 56%, fueled by regulatory changes.
Cardano’s native cryptocurrency ADA is now heading to Wall Street following Nasdaq’s proposed rule change to the U.S. Securities and Exchange Commission (SEC) under Rule 19b-4. Nasdaq is now expanding its benchmark for digital assets with the latest inclusion of altcoins such as Cardano (ADA), Solana (SOL), Ripple’s XRP, and Stellar Lumens (XLM).
Nasdaq has announced the reconstitution of its Crypto US Settlement Price Index (NCIUS) to now include Cardano (ADA), as per the SEC filing. The NCIUS serves as the benchmark for the Hashdex Crypto ETF, marking a significant milestone for Cardano’s integration into traditional financial markets.
Will Nasdaq Clear Cardano’s Road to Wall Street?
This development will further bridge the gap between Cardano and Wall Street, while enhancing the altcoin’s visibility and accessibility to institutional investors. Due to the existing SEC regulation, the Hashdex Crypto ETF can only hold Bitcoin (BTC) and Ethereum (ETH).
This restriction creates a tracking error risk, as the ETF aims to mirror an index comprising six assets but invests in just two. To address this mismatch, Hashdex employs a sampling mechanism, though full alignment with the index remains unattainable.
The Nasdaq Crypto Index (NCI), which the ETF seeks to replicate, currently includes nine cryptocurrencies: Bitcoin (BTC), Ethereum (ETH), Solana (SOL), XRP, Cardano (ADA), Chainlink (LINK), Stellar Lumens (XLM), Litecoin (LTC), and Uniswap (UNI).
If the US SEC approves the proposal, the ETF would gain the flexibility to invest in all these assets. A final decision is expected by November 2, 2025. Approval would mark a significant milestone, enabling greater diversification and flexibility in U.S.-listed crypto ETFs.
As reported by CNF in the previous article, big market players have started exploring the Cardano ecosystem, with asset manager Franklin Templeton recently boosting ties with the platform.
Cardano ETF Bets on the Rise
According to recent data from Polymarket, the likelihood of Cardano’s exchange-traded fund (ETF) receiving regulatory approval before 2025 has risen to 56%, as highlighted in our previous report. This marks a significant 45% increase from previous estimates, reflecting a notable shift in market sentiment regarding ADA-based ETF filings.
Although not as popular as Bitcoin or Ethereum, Cardano comes with its own unique strengths, such as its efficient consensus mechanism and research-driven development. Moreover, the recent changes in U.S. regulatory policies for crypto ETFs have fueled optimism that Cardano-based investment products could soon be accessible to a wider investor base.
Furthermore, as mentioned in our previous story, Cardano (ADA) has achieved a major milestone, with total transactions on its network surpassing 110 million. This surge is attributed to the growing adoption of decentralized finance (DeFi) applications and the increasing utilization of smart contracts on the platform.
