Nasdaq Backs CoinShares’ XRP & Litecoin ETFs

The race for crypto exchange-traded funds (ETFs) in the U.S. is heating up, with Nasdaq officially filing two 19b-4 applications

Nasdaq Backs CoinShares’ XRP & Litecoin ETFs

Nasdaq filed two 19b-4 applications with the SEC to list and trade shares of CoinShares’ XRP and Litecoin ETFs.

Nasdaq took a step further in the crypto ETF race by officially filing two 19b-4 applications with the Securities and Exchange Commission (SEC) to list and trade shares of CoinShares’ XRP and Litecoin ETFs.

The applications were submitted on Monday, March 13, following CoinShares’ filing for regulatory approval with the SEC two weeks ago.

Both ETFs will be structured under Nasdaq Rule 5711 (d), which governs commodity-based trust shares. This structure allows investors to gain exposure to XRP and Litecoin without directly owning the assets.

The CSC Delaware Trust Company will serve as the trustee, while CoinShares will act as the sponsor. A third-party custodian, which is yet to be disclosed, will hold the XRP and Litecoin reserves for the ETFs.

As per the applications, only authorized participants will be permitted to create and redeem shares in blocks of 5,000, ensuring that the ETFs maintain their intended market structure.

XRP and Litecoin ETFs: The Next Big Crypto Investment?

Spot crypto ETFs are gaining steam in the U.S., following the approval of Bitcoin (BTC) spot ETFs. Now, asset managers are pivoting to launch XRP, Litecoin, and other crypto ETFs to meet the growing demand for regulated crypto investment products.

Both ETFs will passively track the Compass Crypto Reference Indexes, which are designed to reflect the performance of XRP and Litecoin against the broader crypto market.

In addition to Nasdaq's applications, the Cboe BZX Exchange also filed four 19b-4 applications to list XRP ETFs from various issuers, including Bitwise, 21Shares, WisdomTree, and Canary Capital.

Why Litecoin Could Be the Next Spot ETF Approval

The SEC has never classified Litecoin (LTC) as an unregistered security, which could bode well for its approval as a spot ETF.

Moreover, Litecoin was created as a Bitcoin fork and shares key characteristics, such as a decentralized network and proof-of-work consensus, which could strengthen its regulatory standing.

Bloomberg ETF analyst Eric Balchunas also highlighted Litecoin's strong candidacy, owing to its regulatory clarity and deep market liquidity, which could lead to swift approval.

Top Bloomberg ETF analyst predicts Litecoin could be next in line for SEC approval for a crypto spot ETF. Several applications, including those for XRP ETFs, are still pending.

With Nasdaq, Cboe, and multiple issuers in the race, the approval of XRP and Litecoin ETFs would be a significant development in crypto's integration with traditional finance.

As the SEC continues to review these applications, investors, asset managers, and crypto enthusiasts are keeping a close eye on the regulatory decisions, which could pave the way for broader crypto ETF adoption in the U.S.