Surging demand for crypto ETFs pushes XRP and Litecoin into the limelight.
SEC Considers First-Ever U.S. XRP and Litecoin ETFs
The U.S. Securities and Exchange Commission (SEC) is reviewing CoinShares’ applications to list spot XRP and Litecoin ETFs. If approved, these would be the first U.S.-based ETFs for the two altcoins. XRP currently ranks as the third-largest cryptocurrency by market cap, while Litecoin holds the 15th spot.
What’s Next for the Applications?
The SEC has opened a 21-day comment period for the filings. Investors and stakeholders can now voice their opinions. Afterward, the regulator will decide how to proceed. Nasdaq has already submitted 19b-4 forms to enable the potential ETFs to trade on its exchange. The next step involves an S-1 registration, typically a formality but still essential.
Growing Appetite for Crypto Investment Products
Demand for crypto ETFs has skyrocketed. This surge follows the SEC’s approval of 11 spot Bitcoin ETFs last year, which ended a decade of denials. Those Bitcoin funds broke records, with BlackRock’s iShares Bitcoin Trust now managing around $55 billion. CoinShares aims to tap into this booming interest with its XRP and Litecoin offerings.
Market Reactions and Broader Context
The SEC’s openness marks a shift under new leadership. With Paul Atkins at the helm, the watchdog appears more crypto-friendly. This contrasts with the slower pace under former Chair Gary Gensler. Meanwhile, crypto markets responded positively, with Bitcoin trading above $96,000, gaining over 2% in 24 hours.
Why This Matters
Approval of the XRP and Litecoin ETFs could legitimize both assets as mainstream investments. It would also provide traditional investors with regulated exposure to two of the oldest altcoins. As the crypto ETF race heats up, all eyes remain on the SEC’s next move.
