The SEC Reconstitutes the NCIUS, May Soon Approve ETFs

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The SEC Reconstitutes the NCIUS, May Soon Approve ETFs

• The SEC may soon approve spot ETFs for ADA, SOL, XLM, and XRP.
• A recent NCIUS reconstitution could trigger the expected ETF approvals.
• Spot ETFs could trigger an increased demand for affected cryptocurrencies.

A famous crypto commentator on X believes the US Securities and Exchange Commission (SEC) will soon approve several ETFs. According to the crypto personality, the SECs latest action, reconstituting the Nasdaq Crypto US Settlement Price Index, signals that the agency is close to multiple ETF approvals.

Breaking: #SEC approves @Nasdaq Crypto US Settlement Price Index (the “NCIUS”) to include $SOL $ADA $XLM and $XRP as of June 2nd.

Expect many crypto ETFs to get approved in the coming weeks on this alpha.

Index Reconstitution

Effective June 2, 2025, Nasdaq, Inc. (“Nasdaq”)…

— MartyParty (@martypartymusic) June 6, 2025

The SEC has published that, effective June 2, 2025, Nasdaq, Inc. (Nasdaq) reconstituted the Nasdaq Crypto US Settlement Price Index (the NCIUS), which currently serves as the benchmark index for the Trust. Following the reconstitution, the NCIUS now includes four additional digital assets: Cardano (ADA), Solana (SOL), Stellar Lumens (XLM), and XRP Ledger (XRP). Before the latest approvals, the NCIUS included only Bitcoin and Ethereum, the top two cryptocurrencies by market capitalization.

A Positive Signal For Crypto ETF Approvals

This move could trigger a series of events including the approval of more crypto-related spot ETFs in the market. It is worth noting that the SEC previously approved ETFs for the two entities, significantly affecting their adoption and price developments. For instance, Bitcoin resumed its upward movement after the SEC approved the spot BTC ETF in 2024 and has maintained a bullish sentiment since then.

Ethereums spot ETF got its approval during July 2024 and has resulted in a notable demand for the cryptocurrency, although not to the same extent as Bitcoin. However, most crypto users consider ETF approvals positive for the affected crypto assets because they provide opportunities for institutional investors to participate in the crypto market, leading to an increased demand for the crypto assets.

The Impact on Market

From a trader‘s perspective this event could drive institutional interest and volatility in the short term. ADA, SOL, XLM, and XRP have traded on the edge of a potential bull run amid heightened expectations of an altcoin season. The altcoins’ technical setup reflects a momentum buildup across the mentioned cryptocurrencies.

After the news came to light, the major cryptocurrencies: ADA, SOL, XLM, and XRP have witnessed modest gains. As per the data fetched from CoinMarketCap during writing, ADA surged by 4.50%, SOL spiked by 3.46%, XRP gained 2.46% and XLM raised by 1.96%.

The reconstitution of the NCIUS has positively impacted the market and is expected to result in increased interest on the institutional front. This could open up numerous opportunities and risks in the trading market. However, the market viewer considers it as a hopeful way for the approval of more crypto spot ETFs.