Nasdaq Proposes New Rules for Digital Asset-Based Investment Products

KeyTakeaways:

Nasdaq proposes Rule 5712 to listing digital asset-backed funding merchandise.The rule consists of reclassifying the Hashdex Nasdaq Crypto Index US ETF.Nasdaq expands its choices with new altcoin ETFs, together with XRP and Litecoin.

Nasdaq has proposed introducing a brand new rule to permit the itemizing and buying and selling of digital asset-based funding merchandise. The rule, often known as Nasdaq Rule 5712, goals to streamline the method of itemizing securities backed by digital belongings and funding merchandise derived from commodities, money, derivatives, or different sources. This transfer follows the rising demand for cryptocurrency-related exchange-traded merchandise (ETPs) and can doubtless affect institutional and retail traders.

One of many key components of the proposed rule is the reclassification of the Hashdex Nasdaq Crypto Index US ETF (NCIQ). Presently listed underneath a unique rule, the NCIQ could be moved to Nasdaq Rule 5712, making it eligible for extra streamlined buying and selling and itemizing underneath the brand new framework. That is a part of Nasdaq’s effort to make sure that digital asset-based investments are aligned with evolving regulatory and market requirements.

Nasdaq and Hashdex Collaboration

On February 14, 2025, Nasdaq and Hashdex formally launched the NCIQ, marking the introduction of the primary multi-asset spot crypto ETP accessible to U.S. traders. The NCIQ exposes Bitcoin and Ethereum, two of essentially the most extensively traded cryptocurrencies. 

Marcelo Sampaio, CEO of Hashdex, expressed confidence within the collaboration, emphasizing the significance of bringing progressive crypto index merchandise to the U.S. market.

Nasdaq’s proposal additionally displays a broader pattern within the monetary trade, the place institutional curiosity in altcoin ETFs has elevated. Along with the NCIQ, Nasdaq has filed paperwork with the SEC to introduce CoinShares’ XRP and Litecoin ETFs. This transfer follows the SEC’s earlier acknowledgment of XRP ETF proposals, highlighting the rising recognition of digital asset-backed funding merchandise.