Nikolas Sargeant
XRP has secured a position in the Nasdaq Crypto US Settlement Price Index, marking a pivotal development that could enhance institutional adoption and market liquidity dynamics. This expansion represents a strategic shift in how traditional financial infrastructure acknowledges digital assets beyond Bitcoin and Ethereum.
Asset manager Hashdex filed an updated disclosure with the Securities and Exchange Commission on June 6, detailing modifications to its benchmark tracking methodology. The filing revealed that Nasdaq broadened its settlement index on June 2 to incorporate XRP alongside Cardano (ADA), Solana (SOL), and Stellar Lumens (XLM). This expansion breaks the previous limitation that restricted the index to only Bitcoin and Ethereum holdings.
ETF Tracking Challenges Create Institutional Opportunity
Hashdex operates the NCIQ ETF, which provides market-capitalization weighted exposure to cryptocurrency markets through regulated investment vehicles. However, existing regulatory frameworks impose significant constraints on the fund's asset composition, limiting holdings exclusively to Bitcoin and Ethereum despite the expanded benchmark.
Current SEC regulations prevent the ETF from incorporating newly added index constituents, creating potential tracking discrepancies. The filing explicitly acknowledges this limitation: "Under current regulatory restrictions, the Trust is only permitted to hold bitcoin and ether, and is not permitted to hold the new index constituents. As such, the risk of potential tracking error is increased."
Nasdaq submitted a comprehensive rule change proposal in March seeking approval to track the broader Nasdaq Crypto Index (NCI). This expanded framework already encompasses XRP, SOL, ADA, XLM, Chainlink (LINK), Litecoin (LTC), and Uniswap (UNI). XRP achieved official NCI inclusion on June 3, 2024.
SEC approval of Nasdaq's proposed modifications would enable Hashdex's ETF to hold all NCI constituents, potentially transforming XRP's institutional accessibility. The regulatory decision deadline is scheduled for November 2.
Technical Analysis Reveals Bearish Momentum
XRP currently trades around $2.22 following weekend volatility, with technical indicators suggesting near-term downward pressure. The asset encountered substantial resistance at $2.30 levels, failing to maintain upward trajectory and retreating toward lower Bollinger Band support at $2.14.
Relative Strength Index readings at 51.52 indicate neutral momentum with slight overbought tendencies following recent price rallies. MACD indicators remain relatively flat, reflecting trader indecision and conflicting market sentiment.
Shorter timeframe analysis reveals more pronounced bearish signals. Thirty-minute chart patterns show RSI approaching oversold territory at 34.32, while MACD maintains negative positioning. The price struggles to sustain levels above $2.25 support, indicating continued seller dominance.
One-minute chart data confirms immediate-term weakness with RSI declining to 32.74 and negative MACD readings. Recent price bounces lack sustained volume support, with buying attempts quickly neutralized by selling pressure.
Despite Nasdaq index inclusion representing significant institutional progress, immediate price action hasn't reflected meaningful institutional capital flows. XRP requires reclaiming $2.30 resistance with substantial volume to reverse current downward momentum. Without this technical breakthrough, further decline toward $2.14 support levels appears probable.
Market participants should monitor broader cryptocurrency sentiment and pending SEC regulatory decisions that could significantly impact institutional access to XRP-based investment products.
