Nasdaq has proposed a significant rule change to facilitate the listing and trading of digital asset-based investment products. This proposal, known as Nasdaq Rule 5712, aims to streamline the process of listing and trading securities related to digital assets, marking a crucial step in the growing adoption of cryptocurrencies in traditional financial markets.
Nasdaq Rule 5712: What It Means
The proposal focuses on reclassifying the listing and trading of the Hashdex Nasdaq Crypto Index US ETF (NCIQ), a crypto-based exchange-traded product (ETP). Currently, the NCIQ is listed under a different rule, but under Rule 5712, Nasdaq seeks to provide a broader framework for the listing and trading of investment products derived from digital assets. These can include securities linked to digital assets, as well as products based on commodities, cash, derivatives, and more.
The filing highlights that this rule change will adjust the investment objectives and strategies related to the NCIQ, ensuring it aligns with new industry standards for digital asset-backed investments.
Hashdex Nasdaq Crypto Index US ETF (NCIQ)
The NCIQ ETF was launched on February 14, 2025, by Nasdaq in collaboration with Hashdex. It is the first multi-asset spot crypto exchange-traded product available to U.S. investors, offering exposure to spot Bitcoin and Ethereum. Marcelo Sampaio, CEO of Hashdex, expressed excitement about the launch, emphasizing the firm’s commitment to providing innovative crypto index products as the industry evolves.
Regulatory Movements and Future ETF Expansions
This Nasdaq proposal coincides with the approval of Hashdex’s XRP ETF by Brazilian regulators, marking a significant milestone as Brazil’s first spot XRP ETF. Additionally, Nasdaq has been working on expanding its ETF offerings, filing 19b-4 forms with the SEC to introduce CoinShares’ XRP and Litecoin ETFs. This demonstrates growing institutional interest in altcoin ETFs and signals the potential for more regulatory clarity around digital asset-based investments.
The U.S. SEC recently recognized CoinShares’ XRP ETF application, following similar recognitions for other XRP ETF proposals from companies like Grayscale, 21Shares, and Bitwise. This trend suggests that the digital asset market is steadily gaining acceptance among institutional investors, with Nasdaq playing a central role in bridging traditional finance with blockchain-based assets.
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