The benchmark exchange index, Nasdaq Crypto Index (NCI), would add Ripple [XRP], Solana [SOL], Stellar Lumens [XLM], and Cardano [ADA].
In addition to these assets, the index tracks others such as Bitcoin [BTC] and Ethereum [ETH], bringing the total number of cryptocurrencies to nine. Notably, the Hashdex Nasdaq crypto index leveraged this benchmark but was approved to hold only BTC and $ETH due to regulatory limitations.
The issuer has sought the regulator's permission to expand into other assets. The SEC's decision deadline for this is scheduled for November 2, 2025.
The fate of a Bitwise similar crypto index ETF application will be known on July 31. But how has the individual ETF performed compared to individual assets like XRP or BTC? Year-to-date (YTD), XRP was down about 3%, while BTC was up 14%. However, for select crypto index ETFs, performance averaged 5% or less during the same period. Notably, the Coinbase 50 index (Coin50) was down 4%, while the Bitwise crypto index ETF lost 3.5%. However, the NASDAQ CRYPTO index and the Hashdex Nasdaq crypto index increased by 4% and 5%, respectively.
Overall, ETFs could offer the best low-risk exposure across various cryptocurrencies, but overall returns were lower compared to some selected underlying assets. That said, the update also followed another positive announcement from Ripple's partnership with a web salon to support the digital asset ecosystem in Japan.
Collectively, the development played into the speculative interest in XRP as open interest (OI) rose to $4.1B for the first time in June. This underscored a short-term bullish sentiment. On price charts, XRP bounced 4% from $2.1 to $2.3, but appeared to be consolidating above key moving averages and the short-term supply zone at $2.3. If $2.3 becomes support, XRP could trend higher to $2.4 or $2.5, which could offer a 6% - 10% gain. Conversely, a price rejection at $2.3 could embolden short sellers to drag XRP back to $2.0.
