The current NCI index includes nine cryptocurrencies: Bitcoin (BTC), Ethereum (ETH), XRP, SOL, ADA, XLM, Chainlink (LINK), Litecoin (LTC), and Uniswap (UNI).

Although the NCIUS index has been updated to include six assets, the actual holdings of the NCIQ ETF remain highly concentrated in Bitcoin and Ethereum (together accounting for over 87%). This allocation ratio exposes the ETF to tracking error risk, meaning there may be a divergence between the ETF's performance and that of its benchmark index.

Nasdaq hopes that by incorporating a broader range of crypto assets, the NCIQ ETF can more accurately reflect the NCI index, providing investors with a more authentic representation of the crypto market.

Awaiting SEC Approval

The key to whether this proposal can be approved lies in the review by the U.S. Securities and Exchange Commission (SEC). By filing a 19b-4 document to apply for a new product or rule change, the SEC's final decision on this proposal is due by November 2, 2025. However, the market generally believes that approval is not difficult.