CoinShares Files To Launch Spot XRP And Litecoin Exchange-Traded Funds

The Nasdaq stock exchange, looking to capitalize on investor appetite for crypto, has applied to launch exchange-traded funds (ETFs) tied to XRP and Litecoin. This filing joins various others seeking to launch these funds.

The exchange has filed a 19b-4 form with the U.S. Securities and Exchange Commission after Cboe submitted proposals for XRP-based exchange-traded funds from various other providers, including Bitwise, WisdomTree, Canary Capital, and 21Shares.

The proposed CoinShares XRP ETF would track the Compass Crypto Reference Index XRP, while the Litecoin ETF would follow a distinct Litecoin index from the same provider. Both funds, if approved, would offer investors exposure to these cryptocurrencies through conventional brokerage accounts.

The filings specify that the ETFs would hold only the respective cryptocurrencies and cash, avoiding yield-generating activities such as lending.

Could Litecoin and XRP Get An ETF?

The push for new offerings comes amid an evolving regulatory landscape at the SEC. Under acting Chair Mark Uyeda, the agency appears to be ending a crackdown on the cryptocurrency industry launched by his predecessor, Gary Gensler.

A friendlier regulatory environment as is being perceived emboldened asset managers to file for spot XRP ETFs – as well as for ETFs focused on various other cryptocurrencies, including memecoins.

However, the path to approval for an XRP fund may be particularly fraught. A major player in the token’s ecosystem, Ripple, has been entangled in a legal battle with the regulator, which had alleged the firm sold XRP as an unregistered security.

While Ripple secured a partial victory in court last year, with a judge ruling that programmatic sales of XRP to exchanges were not securities transactions, the battle isn’t over. The SEC has filed to overturn key aspects of the prior ruling.