Nasdaq Proposes Rule Change to Boost Digital Asset Trading

Nasdaq, a leading U.S.-based stock exchange, has proposed a new rule change that could significantly impact the digital asset investment landscape. The proposed rule, Nasdaq Rule 5712, aims to allow the listing and trading of digital asset-based investment interests, including securities issued by entities holding digital assets and investment products derived from commodities, cash, derivatives, or other sources.

The proposed rule change is particularly notable for its potential impact on the Hashdex Nasdaq Crypto Index US ETF (NCIQ). Currently listed under a different rule, the proposal envisions reclassifying the NCIQ under Rule 5712. The filing states that the proposal aims to amend representations regarding the investment objective and strategy of the NCIQ made in the rule change previously filed with and approved by the Securities and Exchange Commission (SEC) relating to the Trust.

On February 14, 2025, Nasdaq and Hashdex jointly launched the Hashdex Nasdaq Crypto Index US ETF. The NCIQ is the first multi-asset spot crypto exchange-traded product (ETP) available to U.S. investors, providing exposure to both spot Bitcoin and Ethereum. Marcelo Sampaio, Co-Founder and CEO of Hashdex, expressed enthusiasm for the NCIQ launch, stating that the firm is thrilled to bring its expertise in crypto index and crypto index-based products to U.S. investors.

The stock market's recent move to recategorize the NCIQ coincides with the Brazilian regulators' approval of Hashdex's XRP ETF application, signaling the launch of Brazil's first spot XRP ETF. Amid increasing institutional interest in altcoin ETFs, Nasdaq has filed 19b-4 forms with the SEC to introduce CoinShares' XRP and Litecoin ETFs. The stock market intends to list and trade the altcoin ETFs of asset manager CoinShares. The US SEC has acknowledged CoinShares' XRP ETF application, marking its fourth recognition of an XRP ETF proposal.