CoinShares, in collaboration with Nasdaq, has filed for two exchange-traded funds (ETFs) focused on XRP and Litecoin (LTC). The ETFs aim to provide investors with direct exposure to these established cryptocurrencies.
CoinShares-ETF Journey with the SEC
In January 2025, CoinShares submitted S-1 registration forms showing its intent to launch these spot ETFs.
Not too long after, on February 10, 2025, Nasdaq formally filed 19b-4 forms with the U.S. Securities and Exchange Commission (SEC) to list and trade CoinShares’ XRP and Litecoin ETFs.
The filings could not have come at a better time in the U.S., considering the expectation that the new SEC leadership will be more crypto-friendly.
This new leadership boosts the chances of the ETFs being approved. For example, Litecoin’s ETF has over an 80% chance of approval due to its clean regulatory record and commodity classification.
Furthermore, the successful introduction of Bitcoin and Ethereum spot ETFs in 2024 has set a precedent for other crypto assets. The approvals indicated that regulatory bodies are willing to consider well-structured proposals, paving the way for altcoin-focused ETFs.
Implications for Institutional Adoption
Approving these ETFs would eliminate the complex requirement to manage private keys or wallets. This would allow investors to easily gain exposure to XRP and Litecoin, which could increase institutional investment.
Listing ETFs on Nasdaq, one of the world’s leading stock exchanges, enables CoinShares to bridge the gap between traditional finance and digital assets. With more mainstream acceptance, it further legitimizes cryptocurrencies as an asset class.
Anticipation of the ETFs is already influencing market activity. For example, the Litecoin price climbed by 7% despite the market shake-up. However, XRP’s history of legal battles with the SEC may hinder its path to approval.
Additionally, Litecoin’s price performance has remained relatively stagnant over the years. This stagnancy could disadvantage it because other investment options might offer better returns or utility.
By leveraging Nasdaq’s platform and navigating a more favorable regulatory environment, these ETFs can potentially reshape investors’ interactions with digital assets.
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