New York-headquartered Nasdaq stock exchange files 19b-4 forms to list Coinshares’ Litecoin and XRP ETFs.
The exchange confirmed submitting the applications for the US Securities and Exchange Commission (SEC) to approve its 19b-4. Securing this approval forms part of Nasdaq's plans to list and trade the CoinShares’ XRP and Litecoin (LTC) ETFs.
The fling by Nasdaq is fresh off CoinShares filing with the securities watchdog to unveil separate spot-based exchange-traded funds (ETFs) for LTC and XRP.
A recent report hinted at CoinShares' intention to have Litecoin and XRP ETFs trade on Nasdaq. Nasdaq failed to back the filings by CoinShares’ filing with corresponding 19b-4 applications. However, Nasdaq has officially filed its applications to list CoinShares’ XRP and LTC ETFs.
Nasdaq 19b-4 Filings Explained
The formal filings by the US-based exchange aim to list the CoinShares ETFs guided by the Nasdaq Rule 5711 (d) applied in governing Commodity-based Trust Shares.The filings confirm that CoinShares’ XRP and LTC ETFs are adopting the Delaware Statutory Trusts structure formulated on December 10 last year.
CoinShares is the sponsor, while the CSC Delaware Trust company is identified as the trustee of both XRP and LTC ETFs. Additionally, the third-party expected to hold the Litecoin and XRP assets remain undisclosed.
The filing restricts the creation and redemption of shares to authorized investors once the SEC approves the Coinshares XRP and LTC ETFs. Nevertheless, such will involve a 5,000-share block.
The submissions identify both ETFs as passive trusts that will hold underlying assets, including cash, Litecoin and XRP. The trusts will prioritize tracking LTC and XRP performance guided by the Compass Crypto Reference Indexes.
More Altcoin-based ETFs
Nasdaq stock exchange will likely expand the listing for ETFs, particularly with Canary Capital, among applicants seeking to utilize the platform for their Litecoin ETFs. The financial services provider joined Cboe BZX Exchange, which filed four 19b-4 applications last week. The latter is awaiting SEC approval to list and trade XRP ETF shares issued by Canary Capital, WisdomTree, Bitwise, and 21Shares.
The ETFs listing on Nasdaq and Cboe BZX could increase as more prospective issuers file to unveil funds exchange-traded products linked to altcoins, including Solana (SOL) and Dogecoin (DOGE).
Bloomberg senior analyst Eric Balchunas issued a bold outlook of Litecoin securing SEC approval for spot ETF.
The analyst premised his argument on the fact that the SEC has yet to label Litecoin (LTC) as an unregistered security, as the case for Solana (SOL). Additionally, Litecoin emerged as a Bitcoin fork. It is similar to the pioneer crypto, which was also the first to secure the spot ETF approval in the US early last year.
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