Nasdaq Crypto Index Gains SEC Approval: Stellar ($XLM) Joins the Institutional Fold
A Regulatory Green Light for Crypto Diversification
The U.S. Securities and Exchange Commission (SEC) has approved the Nasdaq Crypto Index, marking a pivotal moment for institutional cryptocurrency exposure. Finalized on September 24, 2025, this approval clears the path for the Hashdex Nasdaq Crypto Index US ETF (NCIQ) to expand beyond Bitcoin (BTC) and Ethereum (ETH). The ETF now includes XRP, Solana (SOL), and Stellar Lumens ($XLM), alongside the core duo. This diversified basket, BTC at 72.5%, ETH at 14.8%, XRP at 7.1%, SOL at 4.2%, and XLM at 0.3%, offers regulated access to utility-driven assets. For crypto newcomers, ETFs like this let investors buy a bundle of coins through traditional brokers, without managing wallets or keys. As ETF analyst Nate Geraci noted on X, “Hashdex Nasdaq Crypto Index US ETF approved under SEC’s new generic listing standards.”
How the Approval Unlocks Broader Institutional Access
Moreover, this green light stems from the SEC’s adoption of streamlined “generic listing standards,” slashing ETF review times from 270 to 75 days. Hashdex, managing $1.56 billion across global products, seized the opportunity. The ETF, listed on Nasdaq, now tracks the Nasdaq Crypto Index (NCI), incorporating assets with proven liquidity and futures trading. Specifically, XLM’s inclusion validates its role in cross-border payments, joining XRP (banking corridors) and SOL (DeFi scalability). As Hashdex CIO Samir Kerbage explained, “This expansion adapts to new assets meeting index and listing requirements.” The temporary 0.25% management fee (rising to 0.50% post-2025) makes it investor-friendly. Thus, institutions gain diversified exposure without direct custody risks.
Stellar’s Strengthened Position: From Payments to Portfolio Staple
Furthermore, XLM’s spot in the ETF cements Stellar’s rise as a digital economy contender. With $639 million in RWA TVL (94.8% in tokenized Treasuries) and $4.2 billion quarterly volumes, Stellar excels in efficient, compliant finance. This approval follows WisdomTree’s physically-backed XLM ETP in Europe and SG-FORGE’s EURCV launch. For example, Franklin Templeton’s BENJI fund ($849M AUM) showcases Stellar’s RWA prowess. As XLM traded at $0.34 (up 6% post-approval), analysts predict $0.50 by year-end amid ETF inflows. Community buzz on X echoes: “XLM in a regulated ETF? Institutional validation.” Hence, Stellar shifts from niche payments to mainstream contender, rivaling SOL and XRP in utility.
Implications for Investors: Liquidity, Stability, and Growth
In addition, this ETF could catalyze XLM liquidity and price stability. Institutions allocate via familiar vehicles, potentially injecting billions. The $15 billion Hashdex ETF (pre-approval estimate) diversifies beyond BTC/ETH dominance. For retail, it’s hassle-free exposure: Buy NCIQ shares, hold XLM indirectly. As Bloomberg ETF analyst James Seyffart observed, “Generic standards unlock altcoin ETFs, reducing isolation.” Drawbacks? XLM’s 0.3% weighting limits impact short-term. But as inflows grow, it scales. Platforms like Lumexo offer low-fee XLM trades for direct plays.
Stellar’s Horizon: Institutional Bridges to a Tokenized Economy
In short, Nasdaq’s approval isn’t just for Hashdex, it’s Stellar’s ticket to broader adoption. XLM joins the regulated elite, strengthening its digital economy role. As Q4 2025 ETF launches ramp, watch volumes soar. Blockchain isn’t fringe. It’s institutional.