Understanding the Nasdaq Crypto Index (NCI)
The Nasdaq Crypto Index™ (NCI) is a pioneering benchmark developed through a strategic partnership between Nasdaq and Hashdex. Designed to reflect the broader cryptocurrency market, the NCI provides investors with a transparent, rules-based framework to track crypto asset performance.
Key Features of the NCI:
- Market-Cap Weighted: Components are weighted by their market capitalization, ensuring larger assets influence the index proportionally.
- Quarterly Rebalancing: Reviewed and adjusted every quarter to maintain relevance.
- Strict Eligibility Criteria: Curates only top-tier cryptocurrencies meeting rigorous standards.
NCI Eligibility Requirements
To ensure quality and investability, cryptocurrencies must pass these filters to join the NCI:
- Multi-Exchange Trading
Assets must be actively traded on at least two exchanges since the last index reconstitution. - Institutional-Grade Custody
Requires custody support from at least one licensed provider to safeguard digital assets for institutional investors. - Minimum Liquidity Threshold
Daily trading volume must exceed 0.5% of the highest-volume asset in the index. - Non-Pegged Assets
Stablecoins or assets pegged to fiat/crypto values are excluded to maintain free-floating pricing. - ETP Listing Eligibility
Must qualify for Exchange-Traded Product (ETP) listings on major exchanges like SIX Swiss Exchange and Xetra.
Investment Products Tracking the NCI
| Product Name | Description | AUM (As of 07/02/2025) |
|---|---|---|
| Hashdex Nasdaq Crypto Index ETF | Offers broad crypto exposure for institutional investors in the Cayman Islands. | $742M |
| Hashdex Nasdaq Crypto Index Fund | U.S.-based fund replicating the NCI’s composition for qualified investors. | $742M |
👉 Explore crypto investment opportunities to diversify your portfolio with trusted benchmarks like the NCI.
Why the NCI Matters for Investors
- Reliability: Backed by Nasdaq’s indexing expertise and Hashdex’s crypto market knowledge.
- Transparency: Clear, objective rules eliminate subjective biases in asset selection.
- Institutional Adoption: Facilitates crypto exposure for funds and ETFs requiring regulated benchmarks.
FAQs About the Nasdaq Crypto Index
Q: How often is the NCI rebalanced?
A: The index undergoes quarterly reviews to adjust weights and components based on latest market data.
Q: Can stablecoins be included in the NCI?
A: No. The index excludes pegged assets to ensure price volatility reflects organic market movements.
Q: Who can invest in NCI-linked products?
A: Primarily institutional investors; availability varies by region (e.g., Cayman Islands ETF, U.S. Fund).
Q: What’s the advantage of a market-cap-weighted crypto index?
A: It mirrors the market’s natural structure, favoring larger, more established assets.
👉 Stay updated on crypto indices to make informed investment decisions in this dynamic asset class.