SEC Seeks Public Input on CoinShares' XRP and Litecoin ETFs
1min read The U.S. Securities and Exchange Commission (SEC) has acknowledged filings from European asset manager CoinShares for the world's first U.S.-based spot XRP and Litecoin exchange-traded funds (ETFs). The regulator is now seeking public comments on the applications within 21 days of the filings' publication.
The proposed ETFs would track the performance of XRP, the third-largest cryptocurrency by market capitalization, and Litecoin, which ranks 15th. Both assets are among the oldest altcoins, having entered the market shortly after Bitcoin's launch in 2009.
CoinShares' applications come amidst a surge in demand for crypto ETFs, following the SEC's approval of 11 spot Bitcoin ETFs last year. These funds have attracted significant capital, with BlackRock's iShares Bitcoin Trust (IBIT) now managing about $55 billion in assets. Additionally, the SEC has approved eight Ethereum ETFs, signaling a shift in the regulator's stance towards crypto products.
The SEC's decision on CoinShares' XRP and Litecoin ETF filings will depend on the feedback received from the public and the regulator's internal review process. Last week, the Nasdaq filed 19b-4 forms with the SEC, requesting a rules change that would permit the two potential ETFs to list on the stock exchange. An S-1 registration statement must still receive the agency's greenlight, but such approvals are generally a formality.
CoinShares is not the only asset manager seeking the SEC's approval for new crypto ETFs. The growing demand for these investment products underscores issuers' efforts to cater to the voracious appetite for crypto-focused investment options among traditional investors.
