New York-based stock exchange Nasdaq has submitted two 19b-4 forms with the U.S. Securities and Exchange Commission (SEC) to list and trade shares of CoinShares’ proposed XRP and Litecoin exchange-traded funds (ETFs).
The applications, filed today, outline Nasdaq’s intent to list shares of CoinShares’ XRP ETF and Litecoin ETF. This follows CoinShares’ initial filings with the SEC two weeks ago, seeking approval for separate spot-based ETFs tied to XRP and Litecoin.
Nasdaq’s 19b-4 Filings: Key Details
The filings indicate that Nasdaq aims to list the ETFs under Nasdaq Rule 5711 (d), which governs Commodity-based Trust Shares. Both ETFs will be structured as Delaware Statutory Trusts, established on December 10, 2024.
Key Features of the Proposed ETFs:
- Trustee: CSC Delaware Trust Company.
- Sponsor: CoinShares.
- Custody: An undisclosed third party will hold the underlying XRP and Litecoin assets.
- Creation/Redemption: Limited to authorized investors in blocks of 5,000 shares.
- Structure: Passive trusts tracking the performance of XRP and Litecoin via their respective Compass Crypto Reference Indexes.
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Competing XRP and Litecoin ETF Filings
CoinShares isn’t the only firm vying for XRP and Litecoin ETF approval:
- Cboe BZX Exchange recently submitted four 19b-4 applications for XRP ETFs by Bitwise, 21Shares, WisdomTree, and Canary Capital.
- Canary Capital has also filed for a Litecoin ETF, which would trade on Nasdaq.
Why Litecoin Could Be Next for ETF Approval
Bloomberg analyst Eric Balchunas speculates that Litecoin is a strong candidate for the next spot ETF approval. Reasons include:
- The SEC has never classified Litecoin as a security.
- Its technical similarities to Bitcoin (e.g., proof-of-work consensus) could ease regulatory scrutiny.
FAQs About XRP and Litecoin ETFs
Q: What is a 19b-4 form?
A: It’s a regulatory filing submitted by exchanges to the SEC, seeking permission to list new securities like ETFs.
Q: How do these ETFs differ from Bitcoin ETFs?
A: Structurally similar, but they track XRP and Litecoin instead of Bitcoin.
Q: When might approval occur?
A: The SEC typically takes months to review applications; timelines vary based on regulatory priorities.
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Disclaimer: This content is for informational purposes only and does not constitute financial advice. Always conduct independent research before investing.