Track Crypto Market Performance with Nasdaq Crypto Index

The Nasdaq Crypto Index (NSI) is a benchmark designed to measure the performance of a significant portion of the digital asset market. Developed by Nasdaq in collaboration with Hashdex, the NSI aims to provide a reliable and dynamic representation of the cryptocurrency landscape for institutional investors.

The NSI employs a transparent and systematic approach to ensure it accurately reflects the evolving cryptocurrency market. Key aspects of its methodology include:

• Eligibility Criteria:

  • Liquidity and Trading: Assets must be traded on at least two vetted core exchanges and supported by at least one core custodian.
  • Custody Standards: Inclusion is limited to assets supported by at least two core exchanges, ensuring that only assets with sufficient institutional infrastructure are considered.

• Weighting: The index is free-float market capitalization-weighted, meaning each asset’s weight corresponds to its market value, adjusted for the available supply in the market.

• Rebalancing and Reconstitution: The NSI is rebalanced and reconstituted quarterly to account for market developments, ensuring it remains an accurate representation of the cryptocurrency market.

As of January 29, 2025, the NSI comprises the following cryptocurrencies:

• Bitcoin (BTC): 73.21%
• Ethereum (ETH): 16.53%
• Solana (SOL): 5.32%
• Ripple (XRP): 2.18%
• Cardano (ADA): 1.04%
• Chainlink (LINK): 0.44%
• Avalanche (AVAX): 0.44%
• Litecoin (LTC): 0.35%
• Polygon (MATIC): 0.26%
• Uniswap (UNI): 0.22%

These weightings reflect each asset’s relative market capitalization within the index.

To maintain high standards of security and reliability, the NSI includes assets that are traded on vetted core exchanges and supported by core custodians. The recognized core exchanges and custodians are:

Core Exchanges:

• BitStamp
• Coinbase
• Gemini
• itBit
• Kraken
• LMAX Digital

Core Custodians:

• BitGo
• Coinbase
• Fidelity
• Gemini
• Zodia (effective December 2, 2024)
• Komainu (effective December 2, 2024)

These institutions are selected based on rigorous standards to ensure the integrity and security of the assets included in the index.

In 2024, the NSI underwent significant updates to enhance its representation of the cryptocurrency market:

• Expansion of Core Custodians: The inclusion of Zodia and Komainu as core custodians, effective December 2, 2024, broadened the custodial support for assets within the index.

• Methodology Enhancements: Adjustments were made to the index’s methodology to improve accuracy and resilience, including refined eligibility criteria and more frequent rebalancing schedules.

The Nasdaq Crypto Index serves as a pivotal tool for investors seeking to navigate the evolving cryptocurrency landscape. By offering a transparent and systematic approach to tracking digital asset performance, the NSI facilitates informed decision-making in the realm of cryptocurrency investments.