XRP ETF Filed with Nasdaq as Ripple-CFTC Ties Strengthen

Nasdaq has applied with the SEC to obtain registration to exchange XRP and Litecoin using exchange-traded funds (ETFs).  The filing, submitted on January 20, must fulfill the requirements under 19b-4 for exchanges wanting SEC approval to launch new financial products.

XRP ETF Expectations

Nasdaq documentation explains that proposed ETFs would fall under the Nasdaq Rule 5711(d) category. The rule controls commodity-based trust shares. This latest filing by CoinShares strengthens expectations about the pending approval of these ETFs after the company had filed S-1 previously.

As Bloomberg ETF analyst Eric Balchunas stated, a pro-crypto U.S. administration may approve Litecoin’s ETF as the first among altcoin ETFs.

Ripple Engages with the CFTC Amid Regulatory Shifts

This development comes as the crypto market shows a changing pattern of regulatory control that specifically affects XRP. Ripple is up with the U.S. Commodity Futures Trading Commission (CFTC) about the regulatory status of XRP. The U.S. Commodity Futures Trading Commission differs from the SEC because it is willing to register selected digital assets as commodities.

Recently, word came out about a U.S. Commodity Futures Trading Commission (CFTC) pilot program that investigates the usage of digital assets with stablecoins as financial market collateral. Acting Chairman Caroline Pham made public a new U.S. CFTC initiative that combines a CEO Forum meeting between Ripple and Circle and Coinbase and Crypto.com.

The program intends to evaluate the suitability of tokenized non-cash collateral in trading and clearing operations as it suggests a significant change in digital asset regulatory practices. On the other hand, the SEC viewsXRP as an unregistered security.

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Recent legal developments in the lawsuit against Ripple indicate they might have prevented XRP from being classified as a security. A crucial court decision during this period favored Ripple by establishing that particular XRP sales transactions did not meet the criteria for securities definitions.

However, the legal situation remains unclear because the SEC demands enhanced enforcement practices. Professional industry analysts predict this court decision will establish new rules regarding US cryptocurrency regulation. Despite ongoing legal challenges, XRP continues to find support from large institutions.

U.S. Strategy for Bitcoin and Crypto Adoption

The American government shows signs of evolving its position regarding Bitcoin and cryptocurrency rules. Adopting pro-crypto regulations creates rising optimism that different cryptocurrency financial instruments will gain faster regulatory approval.

Grayscale has already submitted the listing applications for Solana and Litecoin ETFs, while BlackRock is working to improve its iShares Bitcoin Trust ETF. The Cboe BZX Exchange commenced its push for XRP ETFs by presenting 19b-4 applications combining Bitwise, 21Shares, WisdomTree, and Canary Capital capabilities.

The future direction of United States crypto investment products depends heavily on XRP’s cooperation with the CFTC and its SEC legal dispute. XRP’s ETF approval status remains uncertain. During this period of evolving public opinion and intense demand for institutional crypto investment vehicles, approving an XRP or Litecoin exchange-traded fund could change how crypto fits into financial markets.