CoinShares Seeks Approval For Spot Litecoin And XRP ETF In Latest Market Move

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In a notable change in the crypto regulatory environment, asset managers are regaining confidence in their pursuit of ETFs. Significantly, CoinShares submitted applications for a spot XRP ETF and a Litecoin (LTC) fund, indicating an increasing enthusiasm for altcoin investment offerings. CoinShares Targets Litecoin And XRP ETF

CoinShares’ submissionarises as the US ETF market is progressively concentrating on cryptocurrency investments, after the approval and resulting success of funds investing in Bitcoin (BTC) and Ethereum (ETH) in 2024.

The firm has submitted an S-1 registration statement to the Securities and Exchange Commission (SEC) to launch the XRP ETF, aimed at providing investors with direct exposure to the market’s second largest altcoin.  Related Reading SAB 122 Is A Bigger Bitcoin Price Catalyst Than The US BTC Reserve 5 hours ago

Additionally, CoinShares is expanding its offerings by applyingfor a spot Litecoin ETF, positioning itself as one of the few companies actively exploring altcoin-based ETFs in the US market.

On the same day, Grayscale Investments also filed applications with the New York Stock Exchange (NYSE) for both a Solana ETF and a Litecoin ETF, alingning with other firms, including Canary Capital and CoinShares, all seeking regulatory approval for similar products. Skepticism Surrounds Proposed Litecoin ETF

Despite the enthusiasm surrounding the XRP ETF filing, the altcoin has shown a mixed response in the market. XRP recently emerged from a nearly three-year consolidation period below the $0.50 mark, boosted by excitement surrounding pro-crypto regulatory shifts under President Donald Trump. 

Currently, XRP is experiencing remarkable momentum, boasting a staggering 500% year-to-date gain, trading at approximately $3.10.

However, the announcement of CoinShares’ XRP ETF did not significantly impact the token’s price, which remains down 0.4% within a 24-hour period.  Related Reading XRP Long Term Potential Remains Extremely Bullish Possibility Of Price At $20 7 hours ago

On a more critical note, the proposed Litecoin ETF has sparked skepticism among some market experts. Analyst Ali Martinez expressedconcerns regarding the viability of a Litecoin ETF, pointing out that the coin has remained stuck in the same price range since 2017, a span of eight years. 

The analyst continued to probe the reasoning for initiating a Litecoin ETF when ironic options, like a “USDT ETF,” he claims, might provide more instant advantages such as staking rewards. The 1D chart shows XRP’s price consolidating above the $3 mark. Source: XRPUSDT on TradingView.com

Featured image from DALL-E, chart from TradingView.com