Cardano’s ADA Joins Nasdaq Crypto Index, Diversifying Portfolio

Cardano’s ADA has been added to the Nasdaq Crypto Index, marking a significant milestone for the cryptocurrency. This inclusion places ADA alongside Bitcoin and Ethereum, two of the most prominent cryptocurrencies in the industry. The move signifies that regulators and asset managers are recognizing Cardano as a legitimate and valuable blockchain token, rather than just another speculative asset.

The Nasdaq Crypto Index has expanded from five to nine assets, now including Bitcoin, Ethereum, Litecoin, Chainlink, Uniswap, Cardano (ADA), Solana (SOL), Ripple (XRP), and Stellar (XLM). This broadening of the index provides more options for funds that track this benchmark, allowing portfolio managers to spread risk across a wider set of tokens and reduce concentration in the two largest cryptocurrencies, Bitcoin and Ethereum.

Previously, Bitcoin constituted 85% of the index, while Ethereum held 10%. With the addition of ADA and the other three cryptocurrencies, Bitcoin’s share has decreased to 75%, and Ethereum’s to 11%. This shift allows for a more diversified portfolio, which can help mitigate risks associated with the volatility of individual cryptocurrencies.

Despite the inclusion of ADA in the index, the US-listed Hashdex Nasdaq Crypto Index ETF currently holds only Bitcoin and Ethereum. This will remain the case until the Securities and Exchange Commission (SEC) approves updates to the ETF’s rulebook, which is expected in early 2026. Until then, US investors can track the broader index, but their ETF shares will continue to be limited to the original two coins.

For Cardano, this inclusion in the Nasdaq Crypto Index is more than just a recognition; it brings added liquidity, better price support, and a clearer path into institutional portfolios. Increased trading activity in ADA markets could lead to narrower trading spreads and smoother price movements. This development is likely to attract more institutional investors, who will demand higher standards from trading platforms, custody services, and exchanges. These entities will need to meet the index’s criteria, including steady volume, regulated venues, and institutional-grade storage, to ensure the comfort and confidence of major players in the market.

Overall, the addition of ADA to the Nasdaq Crypto Index indicates that the cryptocurrency is gaining more attention from the institutional investment community. However, the final step of actual ETF inclusion in the US still depends on regulatory approval, which remains a critical hurdle for Cardano to overcome.