Nasdaq teams up with CME to merge crypto indices, Nasdaq-CME Crypto Index officially launched

Nasdaq (Nasdaq) and the CME Group (CME Group) announced recently that the original “Nasdaq Crypto Index, NCI” has been restructured and renamed as the “Nasdaq-CME Crypto Index.”

Nasdaq joins forces with CME to officially merge crypto indices

Currently, Nasdaq and CME Group have officially integrated their crypto index structures, and the original NCI has been merged and renamed as the “Nasdaq-CME Crypto Index.” According to a Nasdaq spokesperson, the crypto assets included in this index are:

Bitcoin (BTC)

Ethereum (ETH)

XRP (XRP)

Solana (SOL)

Chainlink (LINK)

Cardano (ADA)

Avalanche (AVAX)

Sean Wasserman, Head of Index Product Management at Nasdaq, stated in an official announcement that investors are shifting from a “Bitcoin-only” mindset to using indices to represent the entire crypto market, similar to how traditional assets like stocks and bonds use indices as market thermometers.

Launched in 2021, product scale exceeds one billion USD

The NCI was first launched in 2021 and subsequently licensed to crypto asset management firm Hashdex, which issued related products in the US, Europe, and Latin America. The total assets under management have now exceeded 1 billion USD, including the US’s first multi-crypto asset index ETF, “Hashdex Nasdaq Crypto Index US ETF” (ticker NCIQ).

Both parties stated that as investor demand for regulated crypto investment products continues to grow, financial products based on the Nasdaq-CME Crypto Index are expected to further expand.

Meanwhile, Wasserman mentioned that the goal of this index is not just to monitor market trends but to serve as the foundation for ETFs, structured products, active funds, and other financial instruments. In the future, investors can use this index for risk management, capital allocation, and diversification, similar to managing a stock portfolio.

Joint governance by two institutions to mainstream crypto system design

For institutional investors, governance mechanisms are a key factor in evaluating crypto investments. The new Nasdaq CME Crypto Index is governed by a committee jointly established by Nasdaq and CME Group, responsible for overseeing index operations, including only approved exchanges and custodians, and making adjustments based on market and regulatory changes. Index calculation is handled by CF Benchmarks, a long-term partner and provider of crypto asset benchmark indices.

Wasserman stated that the crypto market is still in growth stages and requires governance by two experienced, risk-averse international institutions to build trust. Nasdaq has also publicly disclosed the index methodology, including eligibility criteria, liquidity thresholds, weighting, and quarterly adjustment mechanisms, emphasizing transparency at the core of the system.

Giovanni Vicioso, Director of Equities and Alternative Products at CME Group, pointed out that this design aims to make investors feel that the standards for crypto assets are gradually approaching those of traditional financial markets.

(Note: CF Benchmarks is a UK-based company that specializes in providing crypto asset price indicators and benchmark indices.)

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