Key Takeaways
Nasdaq, a major stock exchange, has announced its plans to list and trade CoinShares XRP and Litecoin exchange-traded funds (ETFs). The listing of Litecoin ETFs is highly likely due to fewer regulatory obstacles. Nasdaq has formally submitted 19b-4 forms to the US Securities and Exchange Commission (SEC) in order to seek approval for these two exchange-traded products offered by CoinShares, namely the CoinShares XRP ETF and the Litecoin ETF. These proposed funds would allow investors to gain exposure to XRP and Litecoin (LTC), two well-established cryptocurrencies.
CoinShares, a leading European digital asset investment firm, aims to expand its presence in the US market by introducing new offerings, taking advantage of favorable regulatory changes anticipated under the new administration.
These developments follow CoinShares’ submission of the S-1 filing last month. The ticker symbols for the proposed funds have not been made available yet.
Not only CoinShares, but also other prominent US asset managers are positioning themselves to obtain approval for their own crypto ETFs. Just last week, Cboe, another major exchange, submitted four 19b-4 filings to the SEC, seeking a rule change that would permit the listing and trading of spot XRP ETFs managed by WisdomTree, Bitwise, 21Shares, and Canary.
According to Bloomberg ETF analyst Eric Balchunas, the Litecoin ETF is likely to be the first spot crypto ETF approved during the Trump era. Compared to other cryptocurrencies in the lineup, Litecoin may have a regulatory advantage, as it has not faced any legal disputes with the SEC. Additionally, the Commodities Futures Trading Commission (CFTC) has classified Litecoin as a commodity in its lawsuit against crypto exchange KuCoin, which exempts it from the SEC’s securities regulations.
At present, the odds on Polymarket indicate a likelihood of over 80% for the approval of the Litecoin ETF this year, reflecting traders’ expectations of its launch.