CoinShares and Nasdaq File for XRP and Litecoin ETFs

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The cryptocurrency landscape is evolving rapidly, with traditional financial institutions increasingly embracing digital assets. In a significant development, CoinShares, in partnership with Nasdaq, has officially filed for two new exchange-traded funds (ETFs)—one focused on XRP and the other on Litecoin (LTC). These filings mark a pivotal step toward broader institutional adoption of altcoins, building on the momentum created by Bitcoin and Ethereum spot ETFs.

This article explores the details behind the filings, the regulatory outlook, potential market implications, and what investors can expect moving forward.

The Road to Regulatory Approval

In January 2025, CoinShares submitted preliminary S-1 registration forms to the U.S. Securities and Exchange Commission (SEC), signaling its intent to launch spot ETFs for both XRP and Litecoin. These documents laid the groundwork for public trading of shares tied directly to the underlying cryptocurrencies.

Just weeks later, on February 10, 2025, Nasdaq followed up by filing 19b-4 applications—a critical step required for listing and trading any new ETF on a national securities exchange. The dual filings represent a coordinated strategy between CoinShares and one of the world’s most respected financial market infrastructures.

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With these submissions now under review, all eyes are on the SEC’s response. The timing could not be more strategic. The agency’s interim leadership has signaled a more open stance toward digital assets, including the formation of a dedicated "Crypto 2.0 Task Force" aimed at modernizing regulatory frameworks.

This shift increases optimism around approval—particularly for Litecoin, which many analysts believe has strong chances due to its clear classification as a commodity and lack of regulatory entanglements.

Why Litecoin Stands a Strong Chance

Among the two proposed ETFs, Litecoin (LTC) appears to have the clearest path to approval. Industry experts estimate an approval probability exceeding 80%, largely because:

Moreover, Litecoin’s long-standing presence in the market—launched in 2011—lends it credibility and stability that newer tokens often lack. While its price performance has been relatively flat in recent years compared to high-growth altcoins, this consistency may actually work in its favor from a regulatory standpoint.

However, sustained low volatility and limited innovation could dampen investor enthusiasm unless accompanied by real-world utility upgrades or ecosystem expansion.

XRP’s Regulatory Hurdles

In contrast, XRP’s journey to ETF approval faces greater uncertainty. The token has been embroiled in a prolonged legal battle with the SEC since 2020, centering on whether XRP qualifies as an unregistered security.

Although recent court rulings have favored Ripple (XRP’s parent company) in certain aspects—particularly regarding sales to retail investors—the broader classification issue remains unresolved. This ambiguity presents a significant challenge for any XRP-based financial product seeking SEC clearance.

Still, the growing acceptance of crypto ETFs and shifting regulatory tone suggest that even contentious assets like XRP may eventually gain traction—if structured appropriately and backed by robust compliance measures.

Institutional Adoption: Bridging TradFi and Crypto

One of the most compelling benefits of these proposed ETFs is their potential to bridge traditional finance (TradFi) and decentralized digital assets. By offering exposure through regulated, exchange-listed products, investors—including institutional players—can access XRP and LTC without managing private keys, wallets, or custody solutions.

This ease of access lowers entry barriers significantly. Pension funds, asset managers, and retail investors alike can integrate these assets into portfolios using familiar brokerage accounts.

Nasdaq’s involvement further enhances credibility. As one of the largest stock exchanges globally, its infrastructure ensures transparency, liquidity, and investor protection—key factors in building trust within conservative financial circles.

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If approved, these ETFs would join a growing list of crypto-backed financial instruments that include:

Their success could pave the way for future listings involving Solana, Cardano, or other top-tier altcoins.

Market Reactions and Investor Sentiment

Even before official approvals, market sentiment has begun shifting.

Following news of the filings, Litecoin’s price surged by 7%, despite broader market turbulence. This rally reflects renewed confidence in LTC’s long-term viability and growing demand for regulated investment vehicles.

Meanwhile, XRP has seen mixed reactions. While some traders anticipate a bullish breakout if the ETF is approved, others remain cautious due to lingering legal risks.

Overall, anticipation around altcoin ETFs is reigniting interest across the crypto ecosystem. Investors are watching closely not only for financial returns but also for signals about how open regulators will be to expanding crypto access beyond Bitcoin and Ethereum.

Frequently Asked Questions (FAQ)

Q: What are spot ETFs, and how do they differ from futures-based ETFs?
A: Spot ETFs hold the actual underlying asset—in this case, XRP or Litecoin—providing direct exposure. Futures-based ETFs track derivative contracts rather than owning the asset directly, introducing additional layers of complexity and risk.

Q: When might these ETFs be approved?
A: Final decisions typically take several months after filing. Based on current timelines, approvals could come in late 2025 or early 2026, depending on SEC review progress and market conditions.

Q: Can I invest in these ETFs now?
A: Not yet. The ETFs are still in the filing and review stage. Once approved and listed on Nasdaq, they will be available through standard brokerage platforms.

Q: Why does Nasdaq’s involvement matter?
A: Nasdaq brings regulatory compliance, advanced trading systems, and global reach. Listing there enhances legitimacy and attracts institutional capital.

Q: Will these ETFs increase cryptocurrency adoption?
A: Yes. They simplify access for non-technical investors and encourage integration into mainstream portfolios, accelerating broader adoption.

Q: Are there risks involved in investing via ETFs?
A: While ETFs reduce custody risks, they still carry market volatility and regulatory uncertainty—especially for assets like XRP with ongoing legal issues.

Looking Ahead: A New Era for Altcoins?

The CoinShares-Nasdaq filings represent more than just two new investment products—they symbolize a broader shift toward recognizing digital assets as legitimate components of modern finance.

With Bitcoin and Ethereum already validated through spot ETFs, attention is now turning to established altcoins that offer unique value propositions. If XRP and Litecoin gain approval, it could trigger a wave of similar applications across the crypto space.

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For investors, staying informed is crucial. As regulatory clarity improves and infrastructure matures, opportunities will expand—but so will competition and complexity.

By aligning with trusted partners like Nasdaq and adhering to evolving compliance standards, firms like CoinShares are helping build a safer, more accessible future for crypto investing.

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