Nasdaq Files to List CoinShares XRP Exchange-Traded Fund (ETF), Underscoring Confidence in Market Structure

In a significant development for the cryptocurrency industry, Nasdaq has submitted a request to the U.S. Securities and Exchange Commission (SEC) seeking approval to list and trade shares of the CoinShares XRP Exchange-Traded Fund (ETF).

Nasdaq has filed an application with the U.S. Securities and Exchange Commission (SEC) to list and trade shares of the CoinShares XRP Exchange-Traded Fund (ETF). The move, if approved, would provide investors with an opportunity to gain exposure to XRP without directly holding the cryptocurrency.

Nasdaq’s filing highlights several advantages of the XRP ETF, including increased investor protection, ease of access, and enhanced market integrity. Unlike direct cryptocurrency ownership, which requires investors to manage private keys and navigate exchanges, an ETF allows for simplified exposure through traditional brokerage accounts. Moreover, ETFs provide a regulated framework with transparent pricing and institutional oversight, mitigating some of the risks associated with direct crypto investments.

One of the primary concerns surrounding cryptocurrency ETFs is the potential for market manipulation. The SEC has historically cited this issue as a major reason for rejecting various crypto ETF applications. However, Nasdaq argues that XRP’s market characteristics make it significantly less susceptible to manipulation compared to other digital assets.

XRP has long been one of the most actively traded cryptocurrencies, boasting a large daily trading volume across multiple global exchanges. According to Nasdaq’s filing, this high level of liquidity ensures that no single entity can easily influence XRP’s price movements. The presence of numerous market participants reduces the likelihood of pump-and-dump schemes or other forms of price manipulation.

Nasdaq also points to the increasing regulatory clarity surrounding XRP as a key factor supporting the ETF application. In 2023, a landmark ruling by a U.S. district court determined that XRP is not a security when sold on secondary markets, providing much-needed legal certainty. This decision has paved the way for greater institutional adoption, making XRP a more attractive asset for ETFs and other regulated investment products.

Nasdaq’s initiative, therefore, not only opens up new investment opportunities but also plays a role in improving the overall market structure for XRP.