Summary Hashdex Nasdaq Crypto Index US ETF offers diversified crypto exposure but is heavily weighted toward bitcoin, closely tracking its performance. I assign NCIQ a Hold rating due to flat bitcoin outlook through 2026, low liquidity, and minimal diversification benefits. NCIQ's low trading volume and wide bid/ask spreads increase transaction costs, making it less suitable for active traders compared to more liquid bitcoin ETFs. With bitcoin institutionalization, I expect subdued demand and rangebound performance for NCIQ in the near term. The Hashdex Nasdaq Crypto Index US ETF ( NCIQ ) is a passively managed exchange-traded fund designed to provide investors with diversified exposure to the cryptocurrency market. NCIQ can be best utilized by investors seeking to invest in a diversified cryptocurrency portfolio through a standard brokerage account. Despite providing broad exposure to various cryptocurrencies, the ETF largely trades in line with Bitcoin, potentially negating the potential benefits of diversification. Looking ahead through 2026, I am expecting Bitcoin’s performance to be relatively flat as investors seek safer assets to preserve capital. As a result of the flat market expectations and the low liquidity of NCIQ, I am recommending this ETF with a Hold rating. TradingView About Hashdex Nasdaq Crypto Index US ETF NCIQ was launched on February 13, 2025 by Hashdex Asset Management on the Nasdaq Exchange. According to NCIQ’s November 11, 2025 prospectus update, a portion of the sponsor’s management fee will be waived through December 31, 2026, reducing the management fee from 50bps to 25bps. In terms of the management fee, the waiver places NCIQ on par with major Bitcoin ETFs like the iShares Bitcoin Trust ETF ( IBIT ), which has an expense ratio of 25bps. One of the most critical factors to consider when trading high-risk strategies is liquidity. NCIQ currently has roughly $126 million in net assets, with an average of $820 thousand in share value changing hands on a daily basis. By comparison, IBIT has $70 billion in net assets and an average trading volume of $3.21 billion share value. As a result of the low liquidity, NCIQ has an average bid/ask spread of 64bps, adding substantial costs to active traders. Seeking Alpha Looking at fund flows, NCIQ experienced -$2.23mm in net outflows at the end of December 2025, likely as a result of the price decline across the cryptocurrency market. ETF Database A major challenge the cryptocurrency market faces is the general correlation to the price of Bitcoin. Though other coins may appreciate/depreciate at different rates, the general, historical trend has been directional correlation to the price of Bitcoin, potentially negating the benefits of holding a diversified portfolio of crypto assets. TradingView For example, comparing NCIQ to IBIT, we can see that the two price charts are nearly identical with the exception of a few months. This is primarily attributed to the nearly 75% exposure to Bitcoin in NCIQ. Corporate Filings Given these factors, investors and traders must weigh whether investing in a diversified portfolio is more impactful than liquidity. For active traders, it may be worth considering trading IBIT or other liquid ETFs. For long-term investors, it may be worth weighing the economic value of diversifying across other cryptocurrencies and whether it will positively impact one’s portfolio strategy. In most cases, I believe holding a pure Bitcoin ETF should suffice. TradingView Overall, I’m somewhat neutral in terms of performance for Bitcoin for 2026 . I believe the cryptocurrency may face additional selling pressure in the near-term; however, I’m expecting prices to stabilize well below prior peaks. My rationale behind this statement comes from two factors: Institutionalization of Bitcoin. Liquidation of leveraged Bitcoin investors. Through the emergence of Bitcoin ETFs in January 2024, Bitcoin has largely become an institutional asset and is treated as such. This means that Bitcoin ETFs are subject to standard advisory practices such as rebalances, cash raises, and asset rotation. If the general consensus for 2026 is to rotate into less risky, value and income stocks, Bitcoin ETFs may see additional outflows in the near-term. Roughly $19 billion in leveraged Bitcoin strategies were wiped out in October 2025 as a result of the price correction. This may mean that fewer dollars are chasing Bitcoin, potentially alleviating demand. This may result in softness in the Bitcoin market and result in additional price weakness. Risks Related To NCIQ NCIQ provides investors with diversified exposure in the cryptocurrency market, exposing investors to certain risks that should be considered prior to making a final investment decision. NCIQ is indexed to the Nasdaq Crypto US Settlement Price Index, a rules-based Index designed to track the performance of the cryptocurrency market. The Index is heavily weighted in Bitcoin, potentially offering little differentiation to a pure investment in Bitcoin. The price of Bitcoin has faced significant headwinds in recent months, declining from a peak of $125k/Bitcoin to roughly $81k/Bitcoin before normalizing at roughly $90k/Bitcoin. If the price of Bitcoin were to lose momentum and remain relatively rangebound, NCIQ may return minimal growth as a result of the direct exposure to Bitcoin and other cryptocurrencies. NCIQ has limited trading volumes, potentially creating a challenging market for those seeking to actively trade the ETF. Low liquidity may add additional costs to a trader’s overall transaction costs on top of management fees. Final Thoughts NCIQ is a relatively risky investment strategy that provides investors with diversified exposure in the cryptocurrency market. Despite providing exposure across multiple tokens, NCIQ is heavily weighted in Bitcoin and has historically performed closely to the performance of Bitcoin. Given the low liquidity and potential normalization across the cryptocurrency market, I am recommending NCIQ with a Hold rating.
